The consolidated financial statements were prepared on the basis of the historical cost concept, except for investment properties and derivative financial instruments which were measured at fair value, and equity revalued with regard to the periods subject to hyperinflation in accordance with IAS 29. The consolidated financial statements were prepared assuming that the Group will continue as a going concern in the foreseeable future for the period of at least 12 months from the balance-sheet date. Statement of compliance. As at the date of approval of these consolidated financial statements for publication, there were no circumstances implying that the Group would not continue as a going concern.
The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (‘IFRS’) adopted by the EU.
The assessment of the impact of the COVID-19 pandemic on the operations of the Group has been made on a current basis in reference to the analysis of many factors which may change in the future. Based on the analysis, as at the date of preparing these statements, the Management Board believes that there is no hazard to the continuation of the Group operations in foreseeable future covering the period of at least 12 months of the balance-sheet date. According to the Group estimations, the war in Ukraine shall not affect the Group operations within the coming 12 moths, either. The detailed description of the impact of the military actions in Ukraine on the operations of the Group has been provided in note 43 ‘Post-balance-sheet events’.
Grupa Kęty S.A. and the Group companies have implemented a series of actions in reference to the necessity of adjusting to the changing conditions of operation and prevention of COVID-19 infections spreading. Action plans have been developed in order to ensure the continuity of critical infrastructure operation and provision of key services in the event of a crisis situation. The actions are being adjusted on a current basis to the prevailing conditions and changes in the binding regulations.
The Group has implemented a series of preventive actions in order to limit the possibility of the virus spreading, which include:
Changes in the basic prices of raw materials utilised by the Group in production, combined with effective trade activities and hedging of the margins applied by the Group, contributed to the lack of necessity of recognising major write-downs of inventories to net realisable value.
The Group has implemented a series of actions related to monitoring the financial standing of its contractors in order to secure the proper collectability of the amounts receivable. The main element of the Group policy in that regard is the insurance of receivables at specialised companies, obtaining insurance ratings for the particular customers and application of other forms of receivables security. In effect of the analyses carried out, which included the analysis of the current term structure of receivables, as well as the examination of contractors carried out by the insurance companies, the expected credit loss ratio applicable to receivables has not significantly changed compared to the end of 2020. In 2022, the Group did not experience any major problems in collecting receivables.
The Group has been analysing on a current basis the market situation, the information on contractors and the data provided by the companies insuring receivables which could indicate a deterioration of situation in the respective area, and in case of the actual deterioration the Group is going to update the estimations used in the ECL calculation in the future.
In 2021 the Group did not carry out impairment tests for non-current assets with definite useful life, as there were no indicators of impairment. The Group carried out impairment tests for trademarks with indefinite useful life and goodwill. The test did not reflect any impairment.
In 2000, due to the outbreak of COVID-19 epidemic, there were significant changes in the conditions of operation and economic situation, which the Group considered to be a reason to carry out impairment tests for non-current assets. The tests carried out in 2020 based on the then current projections did not reflect any necessity for recognising impairment allowances.
The financial standing of the Company is stable. So far, the Group has not identified liquidity problems or any risk of servicing loan agreements or other financing agreements. At the present moment, the Group assesses that it has sufficient sources of finance to carry out the current operating activities and investment projects, and to pay out dividend. Information about the available credit limits is presented in note 28.
The Management Board of Grupa Kęty S.A. hereby declares that, according to their best knowledge, these consolidated financial statements and comparative data were prepared in accordance with the accounting principles applicable at Grupa Kęty S.A. (presented in these financial statements) and they present a true and fair view of the assets, the financial standing and the financial result of Grupa Kęty S.A., whereas the Management Board report presents a true view of the standing of Grupa Kęty S.A., including the description of basic risks and threats.
The Polish zloty (PLN) is the functional currency of the parent as well as other companies based in Poland included in these consolidated financial statements. It is at the same time the presentation currency for these consolidated financial statements.
The subsidiaries based outside the Polish territory use functional currencies other than the Polish zloty. Depending on the country of their respective registered offices, these are: EUR – euro, GBP – British pound, CZK – Czech koruna, HUF – Hungarian forint, UHR – Ukrainian hryvnia, RON – Romanian leu, DKK – Danish krone, USD – US dollar.
