In the 2011 financial year, Repower registered two financial offences which were announced in news releases dated 23 June 2011 and 27 October 2011. There is no connection between the two cases.
Between 2003 and 2011, funds totalling MCHF 6.78 (MEUR 5.58) were embezzled. MCHF 1.09 (MEUR 0.9) has been charged to income in prior periods. MCHF 4.58 (MEUR 3.77) relates to prior financial years, so that the effect on income before tax amounts to MCHF 1.11 (MEUR 0.91).
The financial offence in Switzerland concerns two IT consultancy companies with whom Repower collaborated on various IT projects and who billed excessively high fees for their services or charged for fictitious expenses. This resulted in an impairment of MCHF 3.26. MCHF 2.14 relates to prior financial years, so that the effect on income before tax amounts to MCHF 1.12. The restatements of these errors are contained in the individual notes.
Effects on the balance sheet | |||
Balance at | 01.01.2010 | Restatement | 01.01.2010 Restated |
Intangible assets | 11,896 | -284 | 11,612 |
Deferred tax assets | 17,191 | 183 | 17,374 |
Receivables | 471,245 | -2,863 | 468,382 |
Retained earnings (equity) | 841,266 | -3,738 | 837,528 |
Cumulative translation differences (equity) | -5,596 | 143 | -5,453 |
Shareholders' equity excluding minority interests | 854,678 | -3,595 | 851,083 |
Other current liabilities | 339,303 | 633 | 339,936 |
Balance at | 31.12.2010 | Restatement | 31.12.2010 Restated |
Intangible assets | 46,547 | -2,137 | 44,410 |
Deferred tax assets | 14,915 | 540 | 15,455 |
Receivables | 478,724 | -3,536 | 475,188 |
Retained earnings (equity) | 893,937 | -7,156 | 886,781 |
Cumulative translation differences (equity) | -39,988 | 850 | -39,138 |
Shareholders' equity excluding minority interests | 873,275 | -6,306 | 866,969 |
Other current liabilities | 333,411 | 1,173 | 334,584 |
Effects on the income statement | |||
2010 | Restatement | 2010 Restated | |
Other operating expenses | -72,455 | -3,803 | -76,258 |
Income before interest and income taxes | 162,876 | -3,803 | 159,073 |
Income before income taxes | 105,663 | -3,803 | 101,860 |
Income taxes | -25,547 | 385 | -25,162 |
Group profit including minority interest | 80,116 | -3,418 | 76,698 |
Earnings per share was reduced by CHF 1.01 to CHF 22.51 in 2010 as a result of the restatement. (See Note 8)
Criminal charges have been pressed against the two accused former employees. Criminal and civil-law investigations are still in progress.