Vilnius, Lithuania
16 January 2019
AB Grigeo (hereinafter referred to as ‘the Company’) has received Decision No 241-13 of the Director of the Supervision Service of the Bank of Lithuania ‘Regarding the imposition of a sanction on AB Grigeo’ dated 14 January 2019 (hereinafter referred to as ‘the Decision’). In executing the obligation specified in the Decision, the Company makes public the information on the Decision, indicating the following:
- That by the decision of the Director of the Supervision Service of the Bank of Lithuania, it was decided to publish the infringements of Article 22(5) of the Law of the Republic of Lithuania on Securities and Paragraphs 17 and 18 of Rules for the Disclosure of Information the committed by AB Grigeo;
- That the financial statements of AB Grigeo for 2017 fail to comply with the requirements of IAS 16 Property, plant and equipment and IAS 38 Intangible assets;
- That the consolidated annual report for 2017 fails to disclose the entire information required under the provisions of the Law of on Corporate Financial Reporting and the Law on Consolidated Accounts of Groups of Undertakings, there is a lack of the accuracy of information, explanations, justification, and the requirements of the Guidelines for Alternative Activity Indicators are not fully taken into account;
- The impact of the infringements on the financial statements – taking into account the fact that the useful lives of non-current tangible and non-current intangible assets, which are fully depreciated and amortised but are still used in the activities, were established shorter than the usefulness of the assets to the entity (the Company or the group), the costs of the Company and the group for the previous year were increased, while the value of the assets was decreased.
Gintautas Pangonis
President of AB Grigeo
(+370-5) 243 58 01