Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Norgesvej 24 B 6100 Haderslev 2021-01-01 2021-12-31 2020-01-01 2020-12-31 25214404 Danitech Production A/S Melskov Alle 10 6100 Haderslev 2000-02-18 Haderslev 76342305 EY Godkendt Revisionspartnerselskab 30700228 Norgesvej 24 B 6100 Haderslev 2022-04-05 Arne Iversen Regnskabsklasse B Revisionspåtegning Grundlag for konklusion Konklusion true true 2022-04-05 2022-04-05 CaseWare Working Papers Haderslev Jens Kahr Andresen Arne Iversen Chair Jens Kahr Andresen Lars Brinch Knudsen Haderslev Lars Mortensen State Authorised Public Accountant mne32743 11903765 10160173 9348381 8671198 1995402 1877366 559982 -388391 4370 83089 203293 238513 361059 -543815 186650 1662 174409 -545477 174409 -545477 3202973 3523271 3202973 3523271 8278856 6673619 198200 284330 8477056 6957949 11680029 10481220 8541646 6888052 8541646 6888052 4706273 2829852 0 600 45010 3000 167668 239769 4918951 3073221 63874 106812 13524471 10068085 25204500 20549305 2250000 2250000 5728480 5554071 7978480 7804071 144000 0 144000 0 3226516 4287272 769937 988116 3996453 5275388 1065240 1220579 2149271 1476508 3822488 1581692 4563076 1273753 1426905 1912075 58587 5239 13085567 7469846 17082020 12745234 25204500 20549305 2250000 5554071 174409 2250000 5728480 8291732 7691764 609328 573248 179463 179224 267858 226962 9348381 8671198 20 20 61791 33416 141502 205097 4804463 4804463 1281192 320298 1601490 3202973 31453505 447799 3595861 0 2725150 0 32324216 447799 24779886 163469 1589374 86130 2323900 0 24045360 249599 8278856 198200 4480280 2250000 Ordinary 2250000 2250000 769937 0 769937 0 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Danitech Production A/S for the financial year 1 January - 31 December 2021. 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 financial position of the Company at 31 December 2021 and of the results of the Company's operations for the financial year 1 January - 31 December 2021. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholders of Danitech Production A/S We have audited the financial statements of Danitech Production A/S for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2021 and of the results of the Company's operations for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. The Company's business activity consists in engineering works. The income statement for 2021 shows a profit of DKK 174,409 against a loss of DKK 545,477 last year, and the balance sheet at 31 December 2021 shows equity of DKK 7,978,480. The result is not satisfactory. However, for the first time since 2017, it is a profit and the development since 2018 has been an improvement in EBIT year after year. No events materially affecting the Company's financial position have occurred subsequent to the financial year-end. The expectation for 2022 is another improvement. Revenue growth of 12% and an EBIT of DKK 2.5 million are expected. The annual report of Danitech Production A/S for 2021 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to reporting class B entities and elective choice of certain provisions applying to reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. In accordance with the Danish Business Authority’s clarification in May 2021, financial statement items regarding equity investments in associates have been renamed to equity investments in participating interests as the financial statement items must be designated as such when the entity only holds equity investments in associates. Reporting currency The financial statements are presented in Danish kroner (DKK). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. Income from the sale of goods for resale and finished goods, comprising sale is recognised in revenue when transfer of the most significant rewards and risks to the buyer has taken place and provided that the income can be reliably measured and payment is expected to be received. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. The items revenue, cost of sales, other operating income and external expenses have been aggregated into one item in the income statement called gross profit in accordance with section 32 of the Danish Financial Statements Act. Other operating income comprise items of a secondary nature relative to the Company's core activities, including gains on the sale of fixed assets. Cost of sales includes the cost of goods used in generating the year's revenue. Other external expenses include the year's expenses relating to the entity's core activities, including expenses relating to sale, advertising, administration, premises, bad debts, etc. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. The item comprises amortisation/depreciation of intangible assets and property, plant and equipment. The basis of amortisation/depreciation, which is calculated as cost less any residual value, is amortised/depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Goodwill 15 years Other fixtures and fittings, tools and equipment 5 - 10 years Leasehold improvements 5 years Depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The depreciation period and the residual value are determined at the acquisition date and are reassessed annually. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognised. In the case of changes in the depreciation period or the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates. Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. Goodwill is measured at cost less accumulated amortisation. Goodwill is amortised over the expected economic life of the asset, measured by reference to Management's experience in the individual business segments. Goodwill is amortised on a straight-line basis over the amortisation period, which is 15 years. The amortisation period is higher than 10 years, which is explained by strategically acquired activities with a long-term earnings profile. Gains and losses on the sale of intangible assets are recognised in the income statement under "Other operating income" or "Other operating expenses", respectively. Gains and losses are calculated as the difference between the selling price less selling expenses and the carrying amount at the time of sale. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. On initial recognition, leases for assets that transfer substantially all the risks and rewards incident to the ownership to the Company (finance leases) are measured in the balance sheet at the lower of fair value and the present value of the future lease payments. In calculating the net present value, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently accounted for in the same way as the Company's other assets. The capitalised residual lease liability is recognised in the balance sheet as a liability, and the interest element of the lease payment is recognised in the income statement over the term of the lease. The carrying amount of intangible assets and property, plant and equipment is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. The cost of raw materials and consumables comprises the cost of acquisition plus delivery costs. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash comprise bank balances. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Lease liabilities Lease liabilities are measured at the net present value of the remaining lease payments including any guaranteed residual value based on the interest rate implicit in the lease. Deferred income Deferred income recognised as a liability comprises payments received concerning income in subsequent financial reporting years. Other contingent liabilities The Company is jointly taxed with its parent, Danitech A/S, which acts as management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes for the income year 2021 onwards as well as withholding taxes on interest, royalties and dividends. Other rent and lease liabilities: DKK 2021 2020 Rent and lease liabilities 277,618 319,342 The Company has not provided any security or other collateral in assets at 31 December 2021. Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements Danitech A/S Bredholm 4, 6100 Haderslev www.cvr.dk 25214404 2021-01-01 2021-12-31 25214404 2020-01-01 2020-12-31 25214404 2020-12-31 25214404 2021-12-31 25214404 2021-01-01 2021-12-31 1 25214404 2021-01-01 2021-12-31 2 25214404 2021-01-01 2021-12-31 3 25214404 2021-12-31 1 25214404 2021-01-01 2021-12-31 1 25214404 2021-01-01 2021-12-31 1 25214404 2021-01-01 e:GoodwillMember 25214404 2021-01-01 2021-12-31 e:GoodwillMember 25214404 2021-12-31 e:GoodwillMember 25214404 2021-01-01 2021-12-31 e:RetainedEarningsMember 25214404 2020-01-01 2020-12-31 e:RetainedEarningsMember 25214404 2021-01-01 e:FixturesFittingsToolsAndEquipmentMember 25214404 2021-01-01 2021-12-31 e:FixturesFittingsToolsAndEquipmentMember 25214404 2021-12-31 e:FixturesFittingsToolsAndEquipmentMember 25214404 2021-01-01 e:LeaseholdImprovementsMember 25214404 2021-01-01 2021-12-31 e:LeaseholdImprovementsMember 25214404 2021-12-31 e:LeaseholdImprovementsMember 25214404 2021-01-01 e:ContributedCapitalMember 25214404 2021-12-31 e:ContributedCapitalMember 25214404 2021-01-01 e:RetainedEarningsMember 25214404 2021-01-01 2021-12-31 e:RetainedEarningsMember 25214404 2021-12-31 e:RetainedEarningsMember 25214404 2021-12-31 e:OtherLongtermPayablesMember 25214404 2020-12-31 1 xbrli:shares iso4217:DKK xbrli:pure