Page 33 - Hoftex Annual Report 2018 EN

(2) Consolidated companies
Letter to Shareholders Supervisory Board Report Group Management Report Consolidated Financial Statements Annexes
In addition to HOFTEX GROUP AG, the consolidated annual financial statements for the year ending 31/12/2018 include 15 (prior year: 16) domestic and 4 (prior year: 3) foreign companies, in which HOFTEX GROUP AG directly or indirectly holds a majority of voting rights and therefore exercises control over these companies. The Hoftex Group relief fund, the Wohlfahrtseinrichtung der Vogt- ländischen Baumwollspinnerei AG e.V., is also subject to consolidation as stipulated in Section 290(2) no. 4 HGB in conjunction with Standard 19 of the German Accounting Standards (Deutsche Rech- nungslegungsstandard or DRS). Pursuant to Section 296(2) HGB, one domestic subsidiary (prior year: 1) was not included in consolidation due to its insignificance for the Group’s net assets, finan- cial position and results of operations.
The change in the consolidated companies was the result of the acquisition of a 100 % stake in Re- sintex Industriale S.r.l. The company produces nonwovens for apparel and medical applications and is located in Milan, Italy. There was also an asset deal merging Hoftex Max Süss GmbH with Hoftex GmbH effective 30 September 2018.
With an acquisition agreement dated 20 April 2018, Tenowo GmbH also sold all of its shares in Supreme Nonwoven Industries Private Limited to the Indian principal shareholders. The associated company was deconsolidated on 30 September 2018.
The subsidiaries Hoftex GmbH, Hoftex CoreTech GmbH, Hoftex Färberei GmbH, Hoftex Färberei Betriebs GmbH, Neutex Home Deco GmbH, Neutex Betriebs GmbH, Tenowo GmbH, Tenowo Hof GmbH, Tenowo Reichenbach GmbH, Tenowo Mittweida GmbH and Hoftex Immobilien I GmbH are all bound to HOFTEX GROUP AG as their parent company on the basis of control and profit transfer agree- ments. Each of these companies is also included in the HOFTEX GROUP AG consolidated annual financial statements. Of these 11 companies (prior year: 12), 5 companies (prior year: 6) make full use of the relief provisions in Section 264(3) HGB and 6 companies (prior year: 6) make partial use of the same relief provisions.
Hoftex Immobilien II GmbH & Co. is included in the HOFTEX GROUP AG consolidated annual financial statements and therefore makes full use of the relief provisions in Section 264b HGB.
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