|Emitents||Rīgas kuģu būvētava, AS (48510000DWP0BMQCTM64)|
|Veids||1.1 Gada finanšu pārskati un revīzijas ziņojumi|
|Versijas komentārs||Correction: in the second paragraph of the published statement incorrectly specified the amount of net losses. Correctly – AS “Rīgas kuģu būvētava” informs that a net loss of AS “Rīgas kuģu būvētava” in the report period was in the amount of EUR 6 644 763.|
An independent auditor has completed the audit of financial report of year 2018 of AS “Rīgas kuģu būvētava”.
Correction: in the second paragraph of the published statement incorrectly specified the amount of net losses. Correctly – AS “Rīgas kuģu būvētava” informs that a net loss of AS “Rīgas kuģu būvētava” in the report period was in the amount of EUR 6 644 763.
In 2018 a total net turnover of AS "Rīgas kuģu būvētava" was EUR 4 027 724, but the gross loss were in the amount of EUR 2 372 118.
AS “Rīgas kuģu būvētava” informs that a net loss of AS “Rīgas kuģu būvētava” in the report period was in the amount of EUR 6 644 763.
In 2018 AS “Rīgas kuģu būvētava” performed the repair of 42 vessels (in comparison with 2017 – the repair of 49 vessel), whereas 2 ship hulls were built and floated out, what is about three ship hulls less than in 2017.
AS “Rīgas kuģu būvētava” products and services, as well as the principal raw material suppliers have not changed. Ship repair customers are mainly from Western ship service agencies and shipping companies. The main materials and spare parts suppliers are the companies registered in Latvia and in the European Union.
In 2018, the Management Board of the Company, based on the accurate analysis of the situation and following consultations with the Supervisory Board of the Company and auditors, resolved to apply to the court with the request to initiate the legal protection proceedings because, in the result of various conditions, including due to reasons not dependent on the Company, the current assets decreased.
The Company considered that, although the legal protection proceedings were a very serious step, still this was the only correct step for dealing with the complicated situation caused by various events. On May 28th, 2018 Riga City Vizdeme Urban District Court adopted a relevant resolution by initiating the legal protection proceedings, and the only goal of this measure was to preserve the Company operations, its profile of operations and to create the situation where it is able to satisfy its liabilities to full extent for securing the Company development in future. Unfortunately, on October 02nd, 2018, the Company’s application of the legal protection proceedings was rejected and the case of the legal protection proceedings was closed.
The Company admits that the above mentioned court resolution had a considerable impact upon the future operations of the Company, however, irrespective of this, the Company was committed to restore its operations, thus securing the stability and competitiveness of the Company and satisfaction of its liabilities towards creditors.
At the end of 2018, the State Revenue Service sent collection orders to credit institutions where the Company had current accounts because of the debt to the state budget, thus preventing the Company to make settlements with other creditors, except the State Revenue Service, and this resulted in a major delay of payments to other creditors.
Moreover, more than 200 litigations, of which most were related to the collection of wages, were started against the Company.
In the result of the evaluation of the current situation and the possibilities of the Company, as well as taking into account that the debt obligations continued increasing in 2019, the Company adopted a repeated decision to apply to the court and to request the initiation of the legal protection proceedings, in the result of which, on March 20th, 2019 Riga City Vidzeme Urban District Court resolved to initiate the legal protection proceedings of the Company.
By the judgement of Riga City Vidzeme Urban District Court dated August 16th, 2019 (a) the application of the legal protection proceedings of the Company was satisfied; (b) the implementation of the legal protection proceedings of the Company was announced; (c) the plan of measures of the legal protection proceedings of the Company was approved, and (d) the term for implementation of the legal protection proceedings of the Company was set to 2 (two) years by starting the counting of the term as from August 16th, 2019.
The Company attests that the plan of measures of the legal protection proceedings as prepared and submitted to the court will allow maintaining of the current profile of operations, in particular, ship repair, at the same time developing also new types of business activity in order to use the infrastructure of the Company as efficiently as possible.
According to the approved plan of measures of the legal protection proceedings, the Company has paid off the debt of wages to its former and current employees and has also fully paid the tax debt to the state budget.
Also starting from the second month of the legal protection proceedings, the Company has gradually started covering its financial liabilities whose terms of repayment or performance have set in prior to the start of the legal protection proceedings or will set in during the legal protection proceedings. The Company points out that its financial liabilities towards secured creditors will be performed during the first six months and towards unsecured creditors will be performed during twenty four months as from the moment of approval of the plan of measures of the legal protection proceedings.
At present the Company has not interrupted its economic operation and plans to continue it, thus implementing the legal protection proceedings and restoring the solvency in the result of which financial liabilities towards creditors will be performed.
The Company is assured that it will be able to restore the Company operations, secure its stability and even improve its competitiveness. However, although the Company has clear perspective of restoring its operations, it is also known that the time will be needed for optimising it’s staffing, because currently the employment is terminated with the biggest part of the Company’s staff, restoring the flow of the current assets, diversifying production and attracting investment.
The Management Board of AS “Rīgas kuģu būvētava” proposes to cover the net loss of 2018 from undistributed profit of the preceding and next years.
Find hereby enclosed the audited Financial Report of year 2018, auditor's report and Corporative Governance Report on 2018.
The Board of Directors of AS "Rīgas kuģu būvētava"