Linas Agro Group: On the decision of the Supervision Service of the Bank of Lithuania

Panevežys, 2018-03-29 15:00 CEST (GLOBE NEWSWIRE) --

On 28 March 2018 AB Linas Agro Group received decision No 241-50 of the
Supervision Service of the Bank of Lithuania (hereinafter in the text - the
decision), by which it is bound to publish such a notification: 

"3. To require AB Linas Agro Group to immediately publish the notification
about the material event, i.e. about this decision of the director of the
Supervision Service of the Bank of Lithuania indicating: 

3.1. That by the decision of the director of the Supervision Service of the
Bank of Lithuania AB Linas Agro Group was warned about the infringement of
Article 22 of the Law on Securities of the Republic of Lithuania; 

3.2. That the consolidated annual financial statements of AB Linas Agro Group
for financial year 2016-2017 ending on 30 June 2017 do not comply with the
requirements of IAS 16 Property, Plant and Equipment; 

3.3. The impact of the infringements on financial statements: the application
of useful life of the non-current tangible assets shorter than required by IAS
16 has reduced the value of the tangible non-current assets and increased
costs; therefore, the annual consolidated financial statements of AB Linas Agro
Group failed to reflect a true and fair view: if longer periods of depreciation
of the tangible non-current assets were applied, the tangible non-current
assets and non-allocated result of 30 June 2017 would increase." 

 Based on the foregoing, the Company publishes this notification about the
material event. 

Comments of Finance Director of AB "Linas Agro Group":

Bank of Lithuania survey has took place for three months and included the
Group's accounting policies and principles of consolidation of financial
statements, valuation of biological assets, accounting of inventories, accounts
receivable, loans granted to subsidiaries and accounting of property, plant and
equipment. The Bank of Lithuania expressed the opinion that the Group did not
review the useful lives and residual values of non-current tangible assets when
compiling consolidated annual financial statements for the financial year
2016/2017. In principle, this relates to long-term tangible assets of
agricultural companies that have been purchased long time ago. During the
investigation, the deliberate activities of AB Linas Agro Group were not
identified, for which the financial information does not meet the requirements
of the IAS. Taking into account the decision of the Bank of Lithuania, we
initiate the review of the useful lives and residual values of the Group's
property, plant and equipment from July 1st 2018 onwards. - Tomas Tumenas,
Financial Director of AB Linas Agro Group, commented on the conclusions of the
study of the Bank of Lithuania. 

In accordance with the criteria of transparency and availability of
information, the Company, if needed, will in future inform about its further
actions regarding the decision of the Supervision Service of the Bank of
Lithuania. 

Investor relations specialist

Greta Vaitkeviciene

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