AB Agrowill Group did not comply with international accounting standards and potentially violated the rights of other shareholders
OREANDA-NEWS. February 22, 2016. Having performed an inspection, the Supervision Service of the Bank of Lithuania established that AB Agrowill Group was not in compliance with international accounting standards, while a part of the shares issued by AB Agrowill Group in 2014 may possibly be only partly paid, this way having a negative impact on the company and violating the rights of the shareholders.
During the investigation, it is was established that AB Agrowill Group, in forming the 2014 annual consolidated and company’s financial statements, was not in line with the international accounting standards and, therefore, was in violation of the Law on Securities. The violations were established in the way the company was rendering in its statement its liabilities with the bank, assessing the impairment in the investment in subsidiaries, and revealing information on the valuation of crops.
It was also established that the true value of the block of shares of UAB eTime invest, with which new shares issued by AB Agrowill Group in 2014 were paid for, is unfounded. The company did not assess all significant circumstances that took place prior to the signing of the shares and had an impact on the value of the UAB eTime invest block of shares. As a result, AB Agrowill Group’s newly-issued shares may be only partly paid, thus negatively affecting the company and violating the rights of the shareholders.
Owing to the fact that the financial statements of AB Agrowill Group were not in accordance with the international accounting standards, the Supervision Service of the Bank of Lithuania issued a warning and ordered the company, in preparing the financial statements for 2015, to correct them retrospectively and re-establish the true value of the UAB eTime invest 100 per cent block of shares, with which part of the AB Agrowill Group’s authorised capital was paid for. Having established that the shares of AB Agrowill Group are not fully paid, the company is required to correct the current situation in accordance with the requirements of legal acts no later than by 1 May 2016. Currently, small shareholders are not required to take any further action.