Page 32 - Hoftex Annual Report 2018 EN

Letter to Shareholders
Supervisory Board Report
Group Management Report Consolidated Financial Statements Annexes
NOTES TO THE 2018 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS (1) Presentation of the Consolidated Financial Statements
HOFTEX GROUP AG is registered as a public limited company in the Federal Republic of Germany with an entry in the commercial register of the Hof district court under the code HRB 50. Its business address is Fabrikzeile 21, 95028 Hof, Germany. It serves the holding company of the Hoftex Group.
The purpose of the Company corresponds to the entry in the commercial register. The Hoftex Group’s main activities are the production of nonwoven fabrics for technical applications and apparel, the production of raw and coloured textiles including decorative fabrics and the production of raw and coloured yarns including speciality and ply yarns.
As of 29 June 2009, the Company’s shares have been traded on the m:access open market of the Munich Stock exchange. Since this time HOFTEX GROUP AG is no longer considered as a “publicly listed” or “capital market-oriented” company as defined in the HGB and the AktG.
The consolidated financial statements of the HOFTEX GROUP AG for the year ending 31 December 2018 are prepared pursuant to the provisions of the HGB and the AktG prevailing on the balance sheet date.
Section 290 HGB governs the obligation to prepare consolidated annual financial statements. The consolidated financial statements for the preceding fiscal year are to be prepared within five months of the new fiscal year. The consolidated financial statements have been prepared in euros (EUR). All figures are shown in thousands of euros (EUR thousand), unless expressly stated otherwise.
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Certain items in the balance sheet and the income statement have been aggregated to improve clarity of presentation. These items are reported separately and clarified in the notes to the financial statements. The income statement is prepared using the total cost method.
The single-entity annual financial statements of the Group companies and the consolidated annual fi- nancial statements are prepared as of the balance sheet date of the parent company. The HOFTEX GROUP AG annual financial statements and the annual financial statements of all domestic sub- sidiaries included in consolidation for the 2018 fiscal year were prepared on the basis of the pro- visions of the HGB, the AktG and/or the German Limited Liability Companies Act (Gesetz betreffend die Gesellschaften mit beschränkter Haftung, or GmbHG). For the purpose of preparing the consolidated annual financial statements, we have adapted the annual financial statements of foreign subsidiaries to comply with HGB where necessary.