20. OTHER ASSETS
Other assets primarily include deferred expenses.
21. CASH AND CASH EQUIVALENTS
The largest item of cash and cash equivalents is bank balances. It also includes checks and cash in hand. The cash flow statement provides a detailed analysis of the change.
Issued capital totaled 117,600,696.00 EUR on the balance sheet date and is made up of 39,200,232 no-par value shares. The shares have a theoretical par value of 3.00 EUR each. The no-par value bearer shares carry full voting and dividend rights for fiscal year 2006/07, and are admitted to trading on the official markets of four German stock exchanges. Capital stock is entirely paid in.
Issued capital changed as follows during the year under review:
|in EUR mill.||Issued capital|
|As of October 1, 2006||in EUR mill.||117.5|
|Issue of employee shares||in EUR mill.||0.1|
|As of September 30, 2007||in EUR mill.||117.6|
The Shareholders´ Meeting on March 14, 2007 authorized the Executive Board pursuant to Section 71 (1) No. 8 of the German AktG (Stock Corporation Act), with the approval of the Supervisory Board, to acquire shares of up to 10 percent of the share capital up to September 13, 2008. This authorization has not been acted on.
Earnings per share are calculated by dividing net income by the average number of
shares outstanding in the year under review. These increased in fiscal year 2006/07 through the issue of 39,195,384 employee shares (previous year: 38,980,523).
AUTHORIZED CAPITAL I
By way of a resolution dated June 25, 2003, the Executive Board was authorized, with the approval of the Supervisory Board, to increase the company's share capital by up to 25.0 million EUR in the period up to June 24, 2008 by issuing new, no-par value bearer shares against cash or non-cash contributions on one or more occasions.
In so doing, the shareholders are to be granted subscription rights for cash capital increases. However, the Executive Board is authorized, with the approval of the Supervisory Board, to exclude fractions from the shareholders’ subscription rights. In the case of noncash capital increases, the Executive Board is authorized, with the approval of the Supervisory Board, to exclude shareholders' subscription amounts up to a nominal amount of 12.5 million EUR in total for the purpose of acquiring companies or participating interests
in companies. The Executive Board is also authorized, with the approval of the
Supervisory Board, to define the conditions for issuing shares and the further details for implementing capital increases from authorized capital. Authorized capital I has not been utilized to date.
AUTHORIZED CAPITAL II
By way of a resolution of the Shareholders´ Meeting dated June 25, 2003, the Executive Board was authorized, with the approval of the Supervisory Board, to increase the company's share capital by up to 1.5 million EUR in the period up to June 24, 2008 by issuing new, no-par value bearer shares against cash contributions on one or several occasions.
In doing so, the Executive Board can, with the approval of the Supervisory Board, exclude shareholders' subscription rights in order to issue the new no-par value shares to employees of the company or of an associated company. The Executive Board, with the approval of the Supervisory Board, decides on the issue of new no-par value shares and the conditions of the issue. Including the 40,215 shares issued to employees during the year under review (is equivalent to capital stock of 120,645.00 EUR), authorized capital II has to date been utilized in the amount of 0.6 million EUR. A further 36,080 employee shares were issued in November 2007 at a price of 25.00 EUR. These carry dividend rights for the year under review.
ADDITIONAL PAID-IN CAPITAL
Additional paid-in capital comprise of the excess paid by shareholders over the par
value price of capital stock. Premiums from the capital increase for employee shares in the amount of 0.7 million EUR were added to the additional paid-in capital.
The revenue reserves reflect the valuation effects taken directly to equity and the resulting deferred taxes from the valuation of derivative financial instruments that are used for hedging and that qualify as hedging instruments within the meaning of IAS 39. In the past fiscal year, revenue reserves were increased by 3.6 million EUR due to the valuation of cash flow hedges (previous year: 1.6 million EUR). Correspondingly, deferred taxes in the amount of 1.1 million EUR (previous year: 0.6 million EUR) were also taken directly to equity. As a result of the sale of a hedging instrument, an amount of 0.5 million EUR was taken out of equity and transferred to the income statement for the current fiscal year. Fluctuations in the fair value of derivative financial instruments that are not qualified hedging instruments are recognized in income in the income statement. In the past fiscal
year, this totaled 1.2 million EUR (previous year: 2.6 million EUR).
The shares in consolidated companies allotted to other shareholders are carried under this item. As a result of the provisions of IAS 32, interests of shareholders, who have an option to sell or an opportunity for termination with compensation at present values, that were included in the opening financial statements had to be reclassified as financial liabilities and carried at fair value. The remaining amounts are therefore attributable to the Douglas Expansion, Clermont-Ferrand/France.
In one Group company, subsequent modification to carrying amounts of balance
sheet items as of October 1, 2005 had to be carried out as reported in the annual financial statements for the previous year. Accordingly, prior years´ figures in the balance sheet as of September 30, 2006 have been adjusted. The effects of the error correction are shown below:
The error correction for fixed assets amounted to -0,6 million EUR, for inventories to 0,1 million EUR, for tax receivables to -0,5 million EUR and for financial assets to 5,3 million EUR. The error correction for the equity amounted to 3,2 million EUR, for other provisions to 1,3 million EUR, for trade payables to 0,1 million EUR and for tax payables to -0,3 million EUR.
APPROPRIATION OF PROFITS
The disbursement of dividends by DOUGLAS HOLDING AG is determined by the
company's HGB financial statements.
Pursuant to a resolution of the Shareholders´ Meeting on March 14, 2007, a dividend of 1.10 EUR per share, or a total amount of 43.1 million EUR, was disbursed to shareholders from the net retained profits of 44.0 million EUR reported in these HGB financial statements for fiscal year 2005/06. The remaining amount of 0.9 million EUR was carried forward to new account.
The Executive Board will propose to the Shareholders´ Meeting to pay from thereported net income of fiscal year 2006/07 of 44,0 million EUR a dividend of 1.10 EUR per no-par value share with dividend rights, that is, a total of 43.2 million EUR. The remaining amount of 0.8 million EUR is to be carried forward to new account.