financial reporting process in accordance
with section 315 (2) no. 5 of the German
Commercial Code (HGB)
hansa group aims to ensure the propriety and cor- rectness of its financial reporting, adherence to the relevant legal provisions and international financial reporting standards using appropriate organizational measures and provisions. prompt availability of infor- mation for the purpose of management and steering of the Company is also an important priority.
hansa groUp ag operates an internal control system for the group accounting processes, via which appropriate structures, processes and pro- cedures are specified and implemented. this sys- tem is designed to guarantee timely, uniform and accurate accounting for all business processes and transactions. It ensures compliance with stat- utory regulations and accounting reporting stand- ards. the relevance and consequences for the con- solidated financial statements of any amendments to laws, accounting or financial reporting standards or other pronouncements are continually analyzed, and changes are made accordingly. Uniform accounting procedures and measurement in accordance with Ifrs are assured for all companies included in the scope of consolidation for the group annual financial statements by means of corresponding processes and procedures implemented at the parent com- pany.
the essential features of hansa groUp ag’s inter- nal control system with respect to the financial reporting process can be defined as follows: the Company has a clearly defined organizational, cor-
porate, controlling and monitoring structure.
appropriate financial It systems are used (standard soft- ware modified to meet company-specific needs), aug- mented, inter alia, by the registration of all incoming invoices without exception in an archive system immedi- ately upon receipt.
detailed authorization concepts for assurance of issue of authorizations appropriate to the individual’s func- tions, taking account of the principles of separation of function, are applied.
suitable controls are installed (including the dual control principle and analytical checks) for all procedures and processes relevant to financial reporting.
the departments involved in the financial reporting pro- cess meet the quantitative and qualitative requirements. the position of Cfo that is vacant as of december 31, 2012 is to be filled in 2013.
External experts are consulted where necessary, as in the case, for example, of support in preparing the group’s annual financial statements, of the measure- ment of pension obligations, and of necessary consult- ing in case of new and/or amended legislation and reg- ulations.
financial data is regularly spot-checked for complete- ness and correctness.
the risk-management system is an essential com- ponent in the entire planning, control and reporting process within the relevant central departments. a risk-management team coordinates the various initia- tives (including those that deal with risk management in a wider sense) and checks to see that the imple- mented processes are effective and complete. In this way, it also provides a basis on which participants can share findings that make it possible to identify overarching risks.
the aim of the process is to identify risks and evalu- ate them in terms of their probability and the amount of damage they could cause. Key risk categories include:
macroeconomic risks (for example, risks due to overall economic development in the core markets or the devel- opment feed materials prices)
Industry-specific and Company-specific risks (in the areas of development, purchasing, production and sales; risks affecting product quality, risks resulting from legal requirements and political circumstances such as environmental legislation, risks resulting from unfore- seen events, and environmental risks regarding prod- ucts — such as the integration of environmental pro- tection measures into the development and production processes), and
money market risks (including market risks due to fluctu- ating exchange rates, interest rates, and share prices).
genthin, april 30, 2013
HANSA GROUP AG
the management Board
dr. volker Bauer thomas pfisterer the responsible persons also have the task of devel- oping and initiating measures to avoid, reduce, and hedge risks, and to monitor these measures within the framework of a regular controlling process. the risk management system enables the management Board to identify key risks at an early stage and to initiate suitable countermeasures. the risk-manage- ment team supports the management Board in mon- itoring the Company’s various functions and busi- ness sectors. the risk-management system, its structure and implementation are monitored directly by the management Board.
By means of risk-oriented reviews, the risk-manage- ment team helps to make corporate processes effi- cient and effective and to improve management quality in a sustained manner. as part of its activities, the team informs the management Board about its conclusions, suggestions for improvement and the extent to which the suggestions have been imple- mented
notes 31.12.2012 in EUr 31.12.2011 restated* in EUr 01.01.2011 restated* in EUr non-CUrrEnt assEts I. Intangible assets [1] 39,838,902 43,104,750 45,556,053 II. Investment property [2] 0 652,785 336,256 III. property, plant and equipment [3] 202,823,254 217,324,872 208,208,821 Iv. other non-current financial assets [4] 26,056 198,872 325,171 v. other non-current receivables and other non-current assets [5] 28,291,621 352,788 632,961 vI. actual tax assets [6] 103,937 103,937 0 vII. Deferred tax assets [6] 539,617 2,148,069 869,566
271,623,387 263,886,071 255,928,828
CUrrEnt assEts
I. Inventories [7] 31,679,682 41,395,789 42,115,338 II. trade receivables [8] 44,083,165 36,613,079 23,595,369 III. other current receivables and assets [9] 35,546,459 29,744,402 22,864,008 Iv. Cash and cash equivalents [10] 22,125,617 34,124,629 27,045,367
133,434,923 141,877,900 115,620,082 totaL assEts 405,058,310 405,763,971 405,763,971