Årsrapport26052394Ernst & Young Godkendt RevisionspartnerselskabGyngemose Parkvej 502860 Søborg2013-01-012013-12-312014-07-0227560873Veldhoven Denmark A/SAP Møllers Alle 9C2791 DragørDragør33170560Vestjysk BankErnst & Young Godkendt Revisionspartnerselskab26052394Henrik ReedtzGyngemose Parkvej 502860 SøborgDanmark+45 70 10 80 502014-07-02Ulrik DammRegnskabsklasse B2014-07-022014-07-02Copenhagen, Søren Mejer JohansenMartijn R. A. VeldhovenSøren Mejer JohansenUlrik DammCopenhagen, Ernst & Young Godkendt RevisionspartnerselskabHenrik Reedtzstate authorised public accountant4632739-3650317433895960000544736054044246420-97044151323092832196366250826916-94576400026916-945764026916-94576406708096095407635910810784315520365698260435965698260435976482575956289015488330689015488330642953023019550139991691274451018431026243020760371180603205548181720709331823678610421763208188765032252803319636065500000500000-40990528-41017444-40490528-40517444493946288740614829785864172410416371223045630185616015350963018561601535092252803319636065500000-4101744426916500000-40990528328040542853504493604941388533393955523861112661143389596000054843761115722384376111572237583351087446183462901477668111164606708040763500500000500000The main objective of the company is to carry on wholesaling of women's fashion and related activities, including retail shops. Going concern The company has lost its equity, and its operations are financed fully through intra-group loans from the parent company, Veldhoven B.V. Veldhoven B.V. has issued a letter of comfort undertaking to provide the company with financial support enabling it to meet its obligations in the period to 1 March 2015. Against this background, management has presented the financial statements on a going concern assumption. The company has lost more than 50% of its share capital. It is expected that the capital will be restored through a debt conversion. Reference is made to note 2. The company's income statement for the year ended 31 December 2013 shows a profit of DKK 26,916, and the balance sheet at 31 December 2013 shows a deficit on equity of DKK 40,490,528. No events have occurred after the financial year-end which could significantly affect the company's financial position. Today, management has discussed and approved the annual report of Veldhoven Denmark A/S for the financial year 1 January - 31 December 2013. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the company's financial position at 31 December 2013 and of the results of the company's operations for the financial year 1 January - 31 December 2013. In our opinion, the management's review includes a fair review of the matters dealt with in the management's review. We recommend the adoption of the annual report at the annual general meeting. To the shareholders of Veldhoven Denmark A/S We have audited the financial statements of Veldhoven Denmark A/S for the financial year 1 January - 31 December 2013, which comprise an income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act. Further, management is responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with international standards on auditing and additional requirements according to Danish audit regulations. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including an assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of financial statements that give a true and fair view. The purpose is to design audit procedures that are appropriate in the circumstances, but not to express an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used, the reasonableness of accounting estimates made by management as well as the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. The company's accounts receivables are recognized in the balance sheet at DKK 4.403 thousand. Management has measured accounts receivables at amortized cost less provisions for impairment losses. The accounting records of the company indicate that it is necessary to account for impairment losses of up to DKK 1.500 thousand, if managements had measured accounts receivable at net realisable value. The tax effect of this amounts to DKK 0. Accordingly shareholder’s equity and profit/ loss for the year are overstated by up to DKK 1.500 thousand. Qualified opinion In our opinion, except for the effect of the matter referred to in the paragraph 'Basis for qualified opinion', the financial statements give a true and fair view of the company's financial position at 31 December 2013 and of the results of its operations for the financial year 1 January - 31 December 2013 in accordance with the Danish Financial Statements Act. Contrary to the provisions of the Danish Bookkeeping Act, the company stores part of its accounting records abroad without having obtained the necessary permission from the Danish Business Authority. As a result, management may be held liable. The company has not filed a correct basis for withholding taxes and VAT returns with the relevant authorities in due time. As a result, management may be held liable for either or both. In accordance with the Danish Financial Statements Act, we have read the management's review. We have not performed any further procedures in addition to the audit of the financial statements. On this basis, it is our opinion that the information provided in the management's review is consistent with the financial statements. The annual report of Veldhoven Denmark A/S has been presented in accordance with the provisions of the Danish Financial Statements Act as regards reporting class B enterprises. The accounting policies applied by the company are consistent with those of last year. The comparative figures regarding intra-group balances have been reclassified to reflect a split between intra-group payables and receivables in 2013 and 2012. The reclassifications have led to an increase in the balance sheet total for 2012 of DKK 12,744,509 to DKK 19,636,064 at 31 December 2012. Reporting currency The financial statements are presented in Danish kroner. Transactions denominated in foreign currencies are translated into Danish kroner at the exchange rate at the date of the transaction. Monetary items denominated in foreign currencies are translated into Danish kroner at the exchange rates at the balance sheet date. Realised and unrealised exchange gains and losses are recognised in the income statement as financial income/expenses. Income from the sale of goods held for sale and finished goods is recognised in revenue once the risk passes to the buyer. VAT, indirect taxes and discounts are excluded from the revenue. Gross margin With reference to section 32 of the Danish Financial Statements Act, the items 'Revenue', 'Cost of sale', 'Other external expenses' and 'Other operating income' are consolidated into one item designated 'Gross margin'. Other operating income and operating expenses comprise items of a secondary nature relative to the entity's core activities, including gains or losses on the sale of fixed assets. Other external expenses include expenses related to distribution, sale, advertising, administration, premises, bad debts, lease payments under operating leases, etc. Amortisation/depreciation and impairment includes amortisation/depreciation and impairment of intangible assets and property, plant and equipment. Fixed assets are amortised/depreciated using the straight-line method, based on the cost. Gains or losses on the sale of fixed assets are recognised in the income statement under 'Amortisation/ depreciation'. The expected useful lives of the assets are as follows: Useful life (year) Leasehold improvements 5 år/years Other fixtures and fittings, tools and equipment 4-5 år/years Financial income and expenses are recognised in the income statement at the amounts that relate to the reporting period. Net financials include interest income and expenses, realised and unrealised capital and exchange gains and losses on foreign currency transactions. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments less the share of the tax for the year that concerns changes in equity. Current and deferred taxes related to items recognised directly in equity are taken directly to equity. Property, plant and equipment Property, plant and equipment comprise leasehold improvements and other fixtures, fittings, tools and equipment. Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Items of property, plant and equipment are tested for impairment whenever there is an indication that an asset might be impaired. The impairment test is performed for each individual asset or group of assets, respectively. The carrying amount of impaired assets is reduced to the higher of the value in use and the net selling price (recoverable amount) of the asset or group of assets. Inventories are measured at the lower of cost, measured by reference to the FIFO method, and net realisable value. Receivables are measured at amortised cost, which usually corresponds to the nominal value, less provisions for impairment losses. Prepayments comprise prepaid expenses regarding subsequent financial reporting years. Cash comprises cash balances and bank balances. Current tax payables and receivables are recognised in the balance sheet as the estimated tax charge in respect of the taxable income for the year, adjusted for tax on prior years' taxable income and tax paid on account. Provisions for deferred tax are calculated at 25% of all temporary differences between carrying amounts and tax values, with the exception of temporary differences occurring at the time of acquisition of assets and liabilities neither affecting the results of operations nor the taxable income, and temporary differences on non-amortisable goodwill. Deferred tax assets are recognised at the value at which they are expected to be utilised, either through elimination against tax on future earnings or a set-off against deferred tax liabilities. Financial liabilities are recognised on the raising of the loan at the proceeds received net of transaction costs incurred. Interest-bearing debt is subsequently measured at amortised cost, using the effective interest rate method. Borrowing costs, including capital losses, are recognised as financing costs in the income statement over the term of the loan. Other liabilities are measured at net realisable value. The company has lost its equity, and its operations are financed fully through intra-group loans from the parent company, Veldhoven B.V. Veldhoven B.V. has issued a letter of comfort undertaking to provide the company with financial support enabling it to meet its obligations in the period to 1 March 2015. Against this background, management has presented the financial statements on a going concern assumption. The company's share capital has remained DKK 500,000 over the past 5 years. The company has provided BRF Kredit with a guarantee totalling DKK 45,000. Other rent and lease liabilities: Rent and lease liabilities 706.280 1.031.554 Information about consolidated financial statements: Parent Domicile Requisitioning of the parent's consolidated financial statements Veldhoven International B. V. Zoeterwoude-Rijndijk, The Netherlands Gyroscoopweg 86-88, 1042 AX Amsterdam. Information about shareholders holding 5% or more of the share capital or the voting rights Name Domicile Veldhoven International B. V. Zoeterwoude-Rijndijk, the Netherlands 275608732013-01-012013-12-31275608732012-01-012012-12-31275608732012-12-31275608732013-12-31275608732013-01-012013-12-311275608732013-01-012013-12-312275608732013-01-012013-12-313275608732013-12-311275608732013-01-012013-12-311275608732013-01-012013-12-311275608732013-01-012013-12-31d:RetainedEarningsMember275608732012-01-012012-12-31d:RetainedEarningsMember275608732013-01-01d:FixturesFittingsToolsAndEquipmentMember275608732013-01-012013-12-31d:FixturesFittingsToolsAndEquipmentMember275608732013-12-31d:FixturesFittingsToolsAndEquipmentMember275608732013-01-01d:LeaseholdImprovementsMember275608732013-01-012013-12-31d:LeaseholdImprovementsMember275608732013-12-31d:LeaseholdImprovementsMember275608732013-01-01d:ContributedCapitalMember275608732013-12-31d:ContributedCapitalMember275608732013-01-01d:RetainedEarningsMember275608732013-01-012013-12-31d:RetainedEarningsMember275608732013-12-31d:RetainedEarningsMember275608732012-12-311xbrli:sharesiso4217:DKK