TRANSLATION Independent Auditors` Report TO

ABCD
KPMG d.o.o. Beograd
Kraljice Natalije 11
11000 Belgrade
Serbia
Telephone:
Fax:
E-mail:
Internet:
+381 11 20 50 500
+381 11 20 50 550
[email protected]
www.kpmg.rs
TRANSLATION
Independent Auditors’ Report
TO THE OWNERS OF
ZORKA KERAMIKA D.O.O. ŠABAC
We have audited the accompanying financial statements of Zorka Keramika d.o.o., Šabac (“the
Company”), which comprise the balance sheet as at 31 December 2013, the income statement,
statement of changes in equity and cash flow statement for the year then ended, and notes,
comprising a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and true and fair view of these financial
statements in accordance with the Law on Accounting of the Republic of Serbia, and for such
internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Law on Auditing of the Republic of Serbia and
International Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, we consider internal control
relevant to the preparation and true and fair view of financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.
© 2014 KPMG d.o.o. Beograd, a Serbian limited liability company and a
member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved.
Matični broj:17148656
PIB: 100058593
Račun: 265-1100310000190-61
KPMG d.o.o. Beograd je jednočlano društvo.
ABCD
TRANSLATION
Basis for Qualified Opinion
The net book value of property, plant and equipment and intangible assets as at 31 December
2013 amounts to RSD 176,713 thousand (2012: RSD 180,654 thousand). Due to low level of
exploitation of capacities and recurring yearly losses, the Company should perform impairment
testing of its property, plant and equipment and intangible assets. As at 31 December 2013, the
Company did not perform impairment testing of its property, plant and equipment and
intangible assets in accordance with the requirements of IAS 36 – Impairment of Assets. We
were unable to quantify the effect of potential impairment, if any, of property, plant and
equipment and intangible assets. This is the result of a decision taken by management at the
start of the preceding financial year and caused us to qualify our audit opinion on the financial
statements relating to that year.
Qualified Opinion
In our opinion, except for the effects of the matters described in the Basis for Qualified Opinion
paragraph, the financial statements give a true and fair view of the financial position of the
Company as at 31 December 2013, and of its financial performance and its cash flows for the
year then ended in accordance with the Law on Accounting of the Republic of Serbia.
Emphasis of matter
Without further qualifying our opinion, we draw attention to the Note 3.1. to the financial
statements. The Company incurred a net loss of RSD 220,456 thousand during the year ended
31 December 2013. Accumulated net loss of the Company as at 31 December 2013 amount to
RSD 409,212 thousand of which the whole amount refers to loss over capital. In addition, as of
that date, the Company’s current liabilities exceeded its current assets by RSD 499,970
thousand. These conditions, along with other matters as set forth in Note 3.1., indicate the
existence of a material uncertainty that may cast significant doubt about the Company’s ability
to continue as a going concern.
Belgrade, 30 May 2014
KPMG d.o.o. Beograd
(L.S.)
Branko Vojnović
Certified Auditor
This is a translation of the original Independent Auditors’ Report issued in the Serbian
language. All due care has been taken to produce a translation that is as faithful as possible to
the original. However, if any questions arise related to interpretation of the information
contained in the translation, the Serbian version of the document shall prevail.
Belgrade, 30 May 2014
KPMG d.o.o. Beograd
(L.S.)
Branko Vojnović
Certified Auditor
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