FINANCIAL
STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
80
Consolidated Income Statement 82
Consolidated Statement of Comprehensive Income 83
Consolidated Balance Sheet 84
Consolidated Statement of Changes in Equity 85
Consolidated Cash Flow Statement 86
Notes to the Consolidated Financial Statements 87
1. General 87
2. Going Concern 87
3. Key Accounting Principles 87
4. Financial Risk Management 95
5. Cash Flow Statement 96
6. Segment Information 96
7. Revenue 98
8. Personnel Expenses 98
9. Other Operating Expenses 99
10. Income Tax 99
11. Intangible Assets 101
12. Property, Plant and Equipment 102
13. Right-of-Use Assets 103
14. Deferred Tax Assets and Liabilities 104
15. Inventories 104
16. Trade and Other Receivables 105
17. Cash and Cash Equivalents 106
18. Share Capital 106
19. Reserves 106
20. Earnings per Share 107
21. Dividend 107
22. Non-Controlling Interest 107
23. Credit Facilities 107
24. Lease Liabilities 107
25. Employee Benefits 108
26. Other Provisions 109
27. Trade and Other Liabilities 109
Other Disclosures 110
28. Contingent Assets and Liabilities 110
29. Related Parties 110
30. Other Disclosures 112
Company Income Statement 113
Company Balance Sheet 114
Notes to the Company Financial Statements 115
31. General 115
32. Key Accounting Principles 115
33. Revenue 115
34. Personnel Expenses 116
35. Other Operating Expenses 116
36. Income Tax 116
37. Intangible Assets 117
38. Property, Plant and Equipment 118
39. Right-of-Use Assets 119
40. Financial Assets 119
41. Equity 120
42. Credit Facilities 120
43. Lease Liabilities 121
44. Employee Benefits 121
45. Auditor’s Remuneration 122
46. Contingent Assets and Liabilities 122
47. Other Disclosures 122
Other Information 123
Statutory Provisions regarding the Appropriation of Profits 123
Independent Auditor’s Report 124
CONTENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
81
In thousands of euros Note 2023/2024 2022/2023
Revenue 7 103,285 111,438
Cost of Materials (54,539) (62,938)
Contribution Margin 48,746 48,500
Personnel Expenses *8 (22,253) (21,872)
Amortization and Impairments 11 (5) (64)
Depreciation and Impairments 12/13 (3,222) (3,189)
Other Operating Expenses 9 (16,255) (16,082)
Total Operating Expenses (41,735) (41,207)
Operating Result 7,011 7,293
Finance Income 141 58
Finance Expenses (135) (137)
Finance Income and Expenses 6 (79)
Result Before Income Tax 7,017 7,214
Income Tax 10 (1,835) (1,345)
Net Result for the Year 5,182 5,869
Attributable to:
Shareholders of the Company 5,182 5,869
Net Result for the Year 5,182 5,869
Earnings per Share Attributable to Shareholders
of the Company in Euros 20
Basic Earnings per Share 6.02 6.82
Diluted Earning per Share 6.02 6.82
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH
*
Comparative numbers have been adjusted. Please refer to Note 8.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
82
In thousands of euros Note 2023/2024 2022/2023
Net Result for the Year 5,182 5,869
Items that will not be reclassified to profit or loss:
Actuarial Gains/(Losses) on Employee Benefits – 27
Items that may be reclassified subsequently
to profit or loss:
Exchange Differences on Translation of Foreign Operations 407 715
Other Comprehensive Income for the year, net of tax 407 742
Total Comprehensive Income for the year 5,589 6,611
Attributable to:
Shareholders of the Company 5,589 6,611
Total Comprehensive Income for the Year 5,589 6,611
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
83
In thousands of euros Note 2024 2023
Non-Current Assets
Intangible Assets 11 1 5
Property, Plant and Equipment 12 24,278 22,327
Right-of-Use Assets 13 1,250 974
Deferred Tax Assets 14 1,108 1,047
26,637 24,353
Current Assets
Inventories 15 15,189 15,565
Trade and Other Receivables 16 16,851 16,588
Current Income Tax Receivables 1,198 1,492
Cash and Cash Equivalents 17 18,523 15,757
51,761 49,402
Total Assets 78,398 73,755
In thousands of euros Note 2024 2023
Equity
Share Capital 18 1,953 1,953
Share Premium Reserve 19 1,219 1,219
Translation Reserve 19 721 506
Other Reserves 19 57,562 55,135
61,455 58,813
Non-Current Liabilities
Lease Liabilities 24 672 441
Employee Benefits 25 458 739
Deferred Tax Liabilities 14 81 106
Other Provisions 26 42 115
1,253 1,401
Current Liabilities
Trade and Other Payables 27 14,892 12,786
Lease Liabilities 24 432 439
Current Income Tax Liabilities 143 124
Employee Benefits 25 223 192
15,690 13,541
Total Equity and Liabilities 78,398 73,755
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
84
In thousands of euros
Share
Capital
Share
Premium
Reserve
Translation
Reserve
Reserve for
Intangible
Assets
Retained
Earnings
Share-
holders’
Equity
Non-
Controlling
Interests
Total
Equity
As at 31 March 2022 1,953 1,219 (209) 191 54,176 57,330 420 57,750
Net Result for the Year – – – – 5,869 5,869 – 5,869
Other Comprehensive Income – – 715 – 27 742 – 742
Total Comprehensive Income – – 715 – 5,896 6,611 – 6,611
Transfer of Reserve for Intangible Assets – – – (191) 191 – – –
Buyout of Minority Shareholder – – – – – – (420) (420)
Dividends Paid – – – – (5,128) (5,128) – (5,128)
As at 31 March 2023 1,953 1,219 506 – 55,135 58,813 – 58,813
Net Result for the Year – – – – 5,182 5,182 – 5,182
Other Comprehensive Income – – 407 – – 407 – 407
Total Comprehensive Income – – 407 – 5,182 5,589 – 5,589
Transfer Translation Reserve – – (192) – 179 (13) – (13)
Dividends Paid – – – – (2,934) (2,934) – (2,934)
As at 31 March 2024 1,953 1,219 721 – 57,562 61,455 – 61,455
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
85
In thousands of euros Note
2023/
2024
2022/
2023
Cash Flow from Investing Activities
Purchases Intangible Assets 11
(1) –
Proceeds Sale Property, Plant and Equipment 16 3
Purchases Property, Plant and Equipment 12 (4,469) (3,879)
Net Cash from Investing Activities (4,454) (3,876)
Cash Flow from Financing Activities
Purchases Financial Fixed Assets – (420)
Dividends Paid 21 (2,934) (5,128)
Lease Liabilities Repayments 24 (665) (597)
Net Cash from Financing Activities (3,599) (6,145)
Cash and Cash Equivalents as at 1 April 15,757 16,959
Exchange Rate and Translation Differences
on Cash and Cash Equivalents 89 303
Cash and Cash Equivalents as at 31 March 17 18,523 15,757
In thousands of euros Note
2023/
2024
2022/
2023
Operating Result 7,011 7,293
Adjustments for:
•
Amortization/Impairmenst Intangible Assets 11 5 64
•
Depreciation/Impairments Property, Plant and
Equipment 12 2,558 2,574
•
Depreciation Right-of-Use Assets 13 664 616
•
Changes in Provisions 25/26 (323) (147)
•
Changes in Working Capital 2,439 2,154
•
Exchange Rate Differences (36) (41)
Cash Flow from Operating Activities 12,318 12,513
Income Tax Paid (1,594) (3,918)
Interest Received 141 58
Interest Paid (135) (137)
Net Cash from Operating Activities 10,730 8,516
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
86
1. General
Holland Colours NV (‘Company’), founded 9 July 1980, is a
public limited liability company (‘Naamloze Vennootschap’)
under Dutch law. The Company has its registered office in
Apeldoorn, the Netherlands, and is registered at the Dutch
Chamber of Commerce under number 08036180.
The shares of Holland Colours NV are traded on the
Amsterdam stock exchange. Holland Colours NV and its
subsidiaries are together known as ‘Holland Colours’ or
‘Group’.
The Group manufactures, distributes and sells color
concentrates. At balance sheet date the Group operates
through eight facilities and a network of agents and
distributors.
Since 2012, just over 50% of the Company’s shares have
been held by Holland Pigments BV (‘Pigments’). Pigments
is the ultimate parent company of the Company, in which,
along with others, all employees of the Group participate.
Employees of the Group collectively hold approximately
25% of the shares in Pigments. Participations in Pigments
held by former directors, who also are major shareholders
in Pigments, are excluded from above mentioned %.
On 29 May 2024 the Board of Management authorized
the financial statements for issue. The financial statements
are subject to adoption by the Annual General Meeting of
Shareholders on 11 July 2024.
2. Going Concern
The Board of Management of Holland Colours, having
made appropriate enquiries, consider that adequate
resources exist for the Group to continue in operational
existence for the foreseeable future and that, therefore,
it is appropriate to adopt the going concern basis in
preparing the consolidated financial statements for the
year ended 31 March 2024. As part of the going concern
assessment the Board of Management considered the
sufficiency of the Group’s liquidity resources, including
committed credit facilities, over a 12 month period to 31
March 2025.
3. Key Accounting Principles
GENERAL
The Group’s consolidated financial statements are
prepared in accordance with both IFRS Accounting
Standards, as endorsed by the European Union (EU-IFRS)
and with Part 9 of Book 2 of the Dutch Civil Code. The
accounting policies under EU-IFRS are included in Note 3
to the consolidated financial statements.
The accounting policies under EU-IFRS below are applied
throughout the financial statements and are unchanged
from those applied in preparing the consolidated financial
statements for the financial year ended 31 March 2023.
Comparison numbers may have been reclassified or
adjusted for comparability purposes. If considered
material, the relevant disclosures are stated in applicable
Notes.
The Company’s financial year commences on 1 April and
ends on 31 March of the following calendar year.
These consolidated financial statements are presented in
thousands of euros, which is the Company’s functional
currency. All amounts have been rounded to the nearest
thousand, unless stated otherwise.
In the financial year there were no changes to any of the
key accounting principles.
OPERATING SEGMENTS
The Group’s reported segments are based on internal
reporting structure and financial information provided to
the Board of Management. The segmentation is divisional
based on the regions in which the Group’s operates.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
IN THOUSANDS OF EUROS
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IFRS STANDARDS
The following accounting standards and amendments
were adopted during the year and had no material impact
on the Group’s accounting policies or reporting:
•
IFRS 17 Insurance Contracts;
•
Amendment to IAS 8 Accounting policies, Changes in
Accounting Estimates and Errors - Definition of
Accounting Estimates;
•
Amendment to IAS 1 Presentation of Financial
Statements - Disclosure of Accounting Policies;
•
Amendment to IAS 12 Income Taxes - Deferred Tax
related to Assets and Liabilities arising from a single
transaction; and
•
Amendment to IAS 12 Income Taxes - International
Tax Reform - Pillar Two Model Rules.
The following amendments and interpretations will
become effective for the 2024/2025 financial year. These
are not expected to have a significant impact on the
accounting policies and reporting.
•
Amendment to IAS 1 Presentation of Financial
Statements - Non-current Liabilities with Covenants;
•
Amendment to IFRS 16 Leases - Lease Liability in a Sale
and Leaseback;
•
Amendment to IAS 1 Presentation of Financial
Statements - Classification of Liabilities as Current
or Non-current; and
•
Amendment to IAS 7 Statement of Cash Flows and IFRS
7 Financial Instruments - Disclosures - Supplier Finance
Arrangements.
USE OF JUDGEMENTS AND ESTIMATES
In preparing these consolidated financial statements, the
Board of Management has made judgements and
estimates about the future, including climate-related risks
and opportunities, that affect the application of the
Group’s accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an
ongoing basis and are consistent with the Group’s risk
management and climate-related commitments where
appropriate. Revisions to estimates are recognized
prospectively.
Judgements
Information about judgements made in applying
accounting policies that have the most significant effect
on the amounts recognized in the consolidated financial
statements is included in Note 7: Revenue Recognition:
when revenue from goods is recognized.
Assumptions and estimation uncertainties
Information about assumptions and estimation
uncertainties that have a significant risk of resulting in a
material adjustment to the carrying amounts of assets and
liabilities within the year ending 31 March 2024 is, if
applicable, included in Note 12 Property, Plant and
Equipment.
CLIMATE CHANGE
In preparing the Group’s financial statements the Board of
Management has considered the impact of climate change
on the judgements and estimates used in the preparation
of the financial statements. Recognizing that the Group’s
operations have a relatively low environmental impact,
no issues were identified that would impact the carrying
values of such assets, also no issues were identified
related to the sites where the Groups production facilities
are located.
CONSOLIDATION
The consolidated financial statements include the
Company and its subsidiaries. Subsidiaries are companies
over which the Company has control, because it is
exposed to, or has rights to variable return from its
involvement with the subsidiary and has the ability to
affect returns through its power over the subsidiary.
In preparation of the consolidated financial statements,
subsidiaries are accounted at net asset value. All intra-
group transactions and balances are eliminated, as are
the related not realized gains and losses. Non-controlling
interests in equity and in results are separately presented.
Pigments, the ultimate parent company, based on local
legislation, holds 1% of the legal ownership of PT Holland
Colours Asia. Full control though resides with Holland
Colours NV, therefore PT Holland Colours Asia is 100%
consolidated.
In this financial year there were no changes to the
consolidation group compared to the 2022/2023 financial
year. In the previous year Gaypa Sri has sold its shares
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
88
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
(12.1%) in PT Holco lndo Jaya to the Company. The
purchase price (consideration) of € 420 was based on the
net equity value of PT Holco lndo Jaya per 1 April 2022.
The consolidated financial statements include following
companies.
Legal structure including capital interest and
division structure
Division Subsidiaries Interest
Consolidated
EMEIA Holland Colours Europe BV,
the Netherlands, Apeldoorn
100% 100%
EMEIA Holland Colours UK Ltd,
United Kingdom,
Gillingham
100% 100%
EMEIA Holland Colours Hungária
Kft, Hungary, Szolnok
100% 100%
Americas Holland Colours Canada
Inc., Canada, Toronto
100% 100%
Americas Holland Colours Americas
Inc., United States,
Richmond Indiana
100% 100%
Americas Holland Colours Mexicana
SA de CV, Mexico, Tultitlán
100% 100%
Asia PT Holland Colours Asia,
Indonesia, Surabaya
99% 100%
FOREIGN CURRENCIES
Transactions in foreign currencies are recorded at the
rate of exchange prevailing on the date of the transaction.
Non-monetary assets and liabilities in foreign currency
that are measured at historical cost are translated using
the exchange rate at the date of the transaction. At each
balance sheet date, monetary assets and liabilities that
are denominated in foreign currencies are retranslated
at the rate prevailing on balance sheet statement date.
Exchange differences arising are recorded in the income
statement as other operating expenses. Hedge accounting
does not apply.
Assets and liabilities of foreign operations are recorded
at the rate of exchange prevailing on the balance sheet
statement date. Income and expense items and cash
flows of foreign operations are translated at the average
exchange rate for the period. Exchange differences arising
are classified as equity and transferred to the translation
reserve. When foreign operations are disposed of, the
related cumulative translation differences are recognized
in the income statement under other operating expenses.
Transactions of subsidiaries are measured using the
currency of the primary economic environment in which
the subsidiary operates and are translated in the
subsidiaries functional currency as set out above.
Key exchange rates against the euro used in preparing the
financial statements are:
Exchange Rates Used
in euros Balance Sheet
Income
Statement
2024 2023
2023/
2024
2022/
2023
US Dollar 1.08 1.09 1.08 1.04
British Pound 0.85 0.88 0.86 0.86
Canadian Dollar 1.46 1.47 1.46 1.38
Mexican Peso 17.86 19.65 18.77 20.45
REVENUE
Revenue arises from the provision of goods under
contract with customers and are recognized by identifying
the contract and its performance obligations as well as
determination and allocation of the transaction price to
these performance obligations. A contract with a customer
generally has one performance obligation, which is
satisfied at a certain point of time. Revenue is recognized
when the customer obtains the control of the goods
based on the delivery conditions of the sales contract.
The main incoterm used is Delivered Duty Paid (DDP) .
Revenue is stated at the fair value of the transaction price.
This means the revenue is recognized net of (volume
based) rebates, discounts and, if applicable, taking returns
into consideration.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
OPERATING EXPENSES
Government Grants (Personnel Expenses)
Government grants are recognized when there is
a reasonable assurance that the grant will be received
and all conditions are met. Government grants are
recognized in the income statement in the same
period as the expenses, to which these relate to,
mainly personnel expenses.
Finance Income and Expenses
Finance income and expenses comprise the interest
received from or paid to third parties relating to the
financial year and is expensed as incurred.
Earnings per Share
Earnings per ordinary share are calculated as the net
result attributable to shareholders of ordinary shares,
divided by the total weighted average number of
outstanding shares in the financial year.
PRINCIPLES FOR THE VALUATION OF ASSETS
AND LIABILITIES
General
The valuation principles are primarily based on valuation
of the assets and liabilities at historical cost.
Intangible Assets
Costs on research activities are recognized in the income
statement as incurred.
Development costs are capitalized only if the expenditure
can be measured reliably, the product or process is
technically and commercially feasible, future economic
benefits are probable and the Group intends to and has
sufficient resources to complete development and to use
the asset. Otherwise, costs are recognized in the income
statement as incurred. Subsequent to initial recognition,
development costs are measured at cost less accumulated
amortization and any accumulated impairment losses.
Amortization methods, useful lives and residual values
are reviewed at each reporting date and adjusted if
appropriate.
Other intangible assets consist of the costs of software
and licenses. If the Group receives a software asset, that is
if the Group obtains control over a software intangible
asset that it can obtain the future economic benefits from
and restricts other’s access to. The asset is measured at
cost and includes the directly attributable costs of
preparing the software for its intended use such as costs
related to implementation and commissioning. Otherwise,
costs are recognized in the income statement as incurred.
Subsequent to initial recognition, software costs are
measured at cost less accumulated amortization and
accumulated impairment losses. Amortization methods,
useful lives and residual values are reviewed at each
reporting date and adjusted if appropriate.
Amortization of Intangible Assets is on a straight-line base
over the useful life. The estimated useful lives are:
Development Costs 5 years
Software 3 to 5 years
Property, Plant and Equipment
Property, plant and equipment are measured at cost less
accumulated depreciation and, if applicable, impairments.
Costs of self-constructed assets comprise direct cost,
direct labour costs and appropriate allocation of overhead
costs and capitalized borrowing costs. Subsequent
expenditure is capitalized only when it is probable that the
future economic benefits associated with the expenditure
will flow to the Group. Depreciation is calculated to write
off the cost of items of property, plant and equipment, if
applicable less their estimated residual values, using the
straight-line method over their estimated useful lives, and
is generally recognized in the income statement.
Depreciation starts from the date the items is ready for
intended use. Land is not depreciated. If significant parts
of an item of property, plant and equipment have different
useful lives, then they are accounted for as separate items
(components) of property, plant and equipment. Any gain
or loss on disposal of an item of property, plant and
equipment is recognized in the income statement. Costs
for maintenance and repair as part of normal business
operations are recognized as an expense. Low-value
assets are fully expensed in the year of acquisition.
Depreciation methods, useful lives and residual values
are reviewed at each reporting date and adjusted if
appropriate. Property, plant and equipment are assessed
for impairment if there are events or indications that an
item may have lost value.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
90
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
Right-of-Use Assets
At inception a contract is assessed whether the contract is
a lease. A lease is defined if the contract conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration and following criteria
are met: lease is identifiable; the Group has the right to
obtain substantially alle economic benefits from the use of
the identified asset during the period of use; the Group
has the right to use the identified asset throughout the
periode of use.
At the commencement date of the contract the Group
recognizes an asset and a lease liability under non-current
assets and non-current liabilities. Lease liabilities due
within one year are presented under current liabilities.
The right-of-use assets is valued at cost which is the initial
valuation of the lease obligation and all lease payments
made before commencement date, incentives are
deducted. Lease payments that are included in the
measurement consist of fixed and variable payments, the
latter including changes in an index or price and payments
that arise from extension options that are reasonably
certain to be exercised.
The right-of-use assets is measured at cost less
accumulated depreciation, based on the duration of the
contract and, if applicable impairments. Depreciation is
calculated to write off the right-of-use asset, using the
straight-line method over the duration of the lease
contract, and is generally recognized in the income
statement.
At the commencement date the Group values the
right-of-use assets and the lease liability at the present
value of the lease payments discounted using the interest
rate implicit of the lease, if available, or the incremental
borrowing rate. The lease liability is valued at the present
value as described above for unpaid lease payments at
the commencement date. Payments to the lessor are
considered repayments of the obligation.
After initial valuation the lease liability is lowered for
repayments and increased for interest which are
recognized in the income statement.
The lease liability is remeasured when there is a change in
future lease payments arising from a change in an index
or rate, if the Group changes its assessment of whether it
will exercise a purchase, an extension or a termination
option or if there is a revised in-substance fixed lease
payment. When the lease liability is remeasured in this
way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in the
income statement if the carrying amount of the right-of-
use asset has been reduced to zero.
The Group applies a single Incremental Borrowing Rate
per category of leases and is determined per Division.
The Group determines the Incremental Borrowing Rate by
obtaining interest rates from various external financing
sources and makes certain adjustments to reflect the
terms of the lease and type of the asset leased.
For this financial year the weighted average of the
Incremental Borrowing Rate is 4.56% (2022/2023: 4.56%).
The Group applies the exemptions for short term lease
less than a year and low value assets, these are not
recognized on the balance sheet. Payments related to
these are instead of including a right-of-use asset and
lease liability recognized in the income statement over the
duration of the lease period.
Depreciation
Depreciation is calculated to write off the cost of items of
property, plant and equipment and right-of-use assets if
applicable less their estimated residual values, using the
straight-line method over their estimated useful lives, and
is generally recognized in the income statement.
The estimated useful lives are:
Land not depreciated
Buildings 20 to 40 years
Machinery and Equipment 10 years
Other 3 to 5 years
Right-of-Use Assets 1 to 10 years
Impairment of Non-Current Assets
At least annually the Group reviews the carrying amounts
of its tangible and intangible non-current assets to
determine whether there is any indication of impairment.
If any such indication exists, then the asset’s recoverable
amount is estimated. The recoverable amount of an asset
is the greater of its value in use and its fair value less costs
of disposal. The value in use is based on the estimated
future cash flows, discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset or a cash generating unit.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
91
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
An impairment loss is recognized if the carrying amount of
an asset exceeds its recoverable amount. Impairment
losses are recognized in the income statement.
An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of
depreciation or amortization, if no impairment loss had
been recognized.
In the financial year there were no indications that
triggered an impairment.
Change in expected useful life of Non-Current Assets
The depreciation period for Non-Current Assets is
assessed, at the very least, at the end of each financial year.
Changes in expected useful life of an asset are accounted
for by adjusting either the depreciation period or method.
These are treated as changes in accounting estimate.
In this financial year no changes in expected useful lives
incurred.
Taxation
Tax expenses comprises current and deferred tax
including the effects of changes in tax rate and
adjustments to tax assessments related to prior years.
Tax is calculated on the result before tax, taking into
account the prevailing tax rate and tax legislation in the
countries in which the Group operates. Tax is accounted
for in the income statement, unless it relates to items
recognized in the other comprehensive income, in which
case tax is also accounted for in other comprehensive
income.
Current tax is the amount of corporate income taxes
expected to be payable or recoverable based on the result
for the financial year as adjusted for items that are not
taxable or not deductible, and is calculated using tax rate
and laws that were enacted or substantively enacted at
the date of the balance sheet. The Board of Management
periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is
subject to interpretation. Provisions are established where
appropriate on the basis of amounts expected to be paid
to the tax authorities.
Current tax includes amounts provided in respect of
uncertain tax positions when management expects that,
upon examination of the uncertainty by a tax authority in
possession of all relevant knowledge, it is more likely than
not that an economic outflow will occur. Changes in facts
and circumstances underlying these provisions are
reassessed at the date of each balance sheet, and the
provisions are remeasured as required to reflect current
information.
Deferred tax is recognized on temporary differences
arising between the tax bases of assets and liabilities and
their carrying amounts in the balance sheet. Deferred tax
is calculated using tax rates and laws that have been
enacted or substantively enacted at the end of the
financial year, and which are expected to apply when
the related deferred tax asset is realized or the deferred
tax liability is settled.
Deferred tax liabilities are generally recognized for all
temporary differences. Deferred tax assets are recognized
to the extent it is probable that taxable profits will be
available against which the deductible temporary
differences can be utilized, and are reviewed at the end
of each financial year and reduced to the extent that it
is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.
The availability of suitable taxable profit is considered
probable when an entity has taxable temporary differences
relating to the same tax authority and the same tax entity,
that are expected to reverse in the same period as the
deductible temporary difference or unused tax losses or
credit.
Deferred tax is presented at nominal value, hence no
discount rate is applicable.
The Group is subject to tax in numerous jurisdictions, giving
rise to complex tax issues. As a multinational enterprise, tax
returns in the countries operated in are subject to tax
authority audits as a matter of routine. While the Group is
confident that tax returns are appropriately prepared and
filed, amounts are provided in respect of uncertain tax
positions that reflect the risks with respect to tax matters
under active discussion with tax authorities, or which
otherwise are considered to involve uncertainty.
The valuation of provisions required in relation to uncertain
tax positions involves estimation. Provisions against
uncertain tax positions are measured using one of the
following methods, depending on which of the methods the
Board of Management expects will better predict the
amount it will pay over to the tax authority:
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
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FINANCIAL STATEMENTSESG
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92
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
Environmental obligation
The provision for environmental cost relates to the
Groups production location in Hungary and is valued at
the nominal value of the estimated expenditure, with a
remaining duration of five years.
Employee Benefits
Obligations for contributions to defined contribution plans
as operated by the Group are expensed as the related
service is provided.
Short-term employee benefits are expensed, and
presented under current liabilities, as the related service is
provided. A liability is recognized for the amount expected
to be paid within one year if the Group has a present legal
or constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation
can be reliably estimated.
The Group’s net obligation in respect of long-term
employee benefits is the amount of future benefit that
employees have earned in return for their service in the
current and prior periods. That benefit is discounted to
determine its present value. Remeasurements are
recognized in the income statement in the period in which
they arise.
Pre-pension plan
The pre-pension plan operated in the Netherlands was
terminated and converted from a conditional obligation
for past service years into an conditional payment for an
equal amount payable to the employee on an annual
assessment is carried out annually. Raw materials are
measured at historical cost based on first-in-first-out
method (FIFO). Finished goods comprise of cost of direct
materials and a surcharge for direct and indirect production
cost. A provision for obsolete inventories is stated based on
aging of the inventories and management’s assessment on
the risk for obsolescence.
Trade and Other Receivables
Trade and other receivables are stated at the lower of
initial fair value, and amortized cost. The Group measures
an allowance for expected credit losses for its trade
receivables which is based on aging of trade receivables.
Cash and Cash Equivalents
Cash and Cash Equivalents comprise cash balances, call
deposits and other short-term highly liquid investments
and are held in the balance sheet at fair value.
Provisions
Provisions are recognized when there is a present
obligation as a result of a past event and when there is a
probable outflow of economic benefits which can be
reliably estimated. Provisions are recognized based on the
expected expenditure required to settle the obligation.
Long-term provisions are discounted, with the exception
of deferred tax. Provisions are determined by discounting
the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of
money and the risks specific to the liability. The unwinding
of the discount is recognized as operating expenses.
Remeasurements are recognized in profit or loss in the
period in which they arise.
•
The single best estimate – where there is a single
outcome that is more likely than not to occur. This will
happen, for example, where the tax outcome is binary
or the range of possible outcomes is narrow or
concentrated on a single value or
•
A probability-weighted expected value – where, on the
balance of probabilities something will be paid to the
tax authority but the possible outcomes are widely
dispersed with low individual probabilities (i.e. there is
no single outcome more likely to occur). In this case,
the provision is the sum of the probability-weighted
amounts in the range.
In assessing provisions against uncertain tax positions, the
Board of Management uses professional firms and
previous experience to inform the evaluation of risk.
However, it remains possible that uncertainties will
ultimately be resolved at amounts greater or smaller than
the liabilities recorded.
The Group maintained no provision for any uncertain tax
positions in the financial year (2023: nil).
The amendment to IAS 12 Income Taxes – International
Tax Reform - Pillar Two Model Rules is not applicable to
the Group with the Group’s global revenue not exceeding
€ 750 million.
Inventories
Inventories are stated at the lower of cost and net
realizable value. The net realizable value is the estimated
sales price in normal course of business less estimated cost
for completion and less estimated selling expenses, which
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
basis, which will end in September 2037. Following are the
conditions: the employee must be in service at the time of
the annual payment, the Board of Management annually
assesses that the Groups financial results are sufficient to
cover the annual payment.
These expenses were recognized immediately upon
agreement and are measured at net present value at a
disount rate of 2.62% (2023: 2.41%) based on Iboxx Index
Government Bonds. When changes occur any gain or loss
on that change is recognized immediately in the income
statement.
Plan termination of employment
The plan for termination of employment is operated in
Indonesia, based on the legal obligation to make a payout
should the employment of the employee be terminated.
The obligation is measured at the net present value based
on estimation of mortality rates and future salary
increases at a discount rate of 7.0% (2023: 7.0%). When
changes occur a gain or a loss on that change is
recognized immediately in the income statement.
Jubilee bonuses
The liability for jubilee bonuses is the amount for future
benefits that relate to the individual employees service in
the current and previous financial years. This obligation is
measured at the net present value based on estimation of
future dismissal and future salary increases at a discount
rate of 3.57% (2023: 3.66%). When changes occur a gain
or a loss on that change is recognized immediately in the
income statement.
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FINANCIAL STATEMENTSESG
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94
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
4. Financial Risk Management
As part of the normal conduct of its business, the Group is
exposed to a variety of financial risks, such as currency
risk, credit risk, liquidity risk, interest risk and capital risk.
In terms of risk management policy, it is recognized that
the financial markets are volatile and that the aim should
be to limit the potential negative effects of this on the
Group’s financial results as much as possible. The Board
of Management is responsible for managing the risks
associated with its activities and the establishment and
adequate functioning of appropriate risk management
and control systems.
CURRENCY RISK
The reporting currency of the Group is the euro. Being
a global operation, the Group is exposed to a variety of
foreign currencies. Currency risk arises from engaging in
commercial transactions in non-functional currencies,
mainly US Dollar. Holland Colours aims to limit the effect
of transaction-related exchange-rate exposure on the
Group by preferring to invoice in the functional currency
of the supplying entity, which in most cases is regional.
Currency hedging on monetary currency positions or
projected sales is not in place. The Group participates in
several foreign subsidiaries of which the net equity is
mainly US Dollar nominated. This is subject to currency
translation risk in the consolidation process. The impact
varies over the years and is complicate to mitigate due to
the long-term fluctuations in the EUR-US Dollar rate. This
risk is monitored but not hedged. There are no balance
sheet items susceptible to currency risk.
The table below shows the sensitivity of the net result
after tax and the equity (including translation effects) to
the US Dollar with all other variables kept constant:
CREDIT RISK
Credit risk is the risk of financial loss by the Group in the
event a customer fails to meet contractual obligations.
Credit risk mainly arises from receivables from customers.
The Group follows an active policy to minimize credit risk.
This policy includes strict internal guidelines regarding
client- and order acceptance, overdue payments, the use of
sales information systems, the consultation of external
sources and, where necessary, requesting security for
payment. Due to its distribution over a large number of
customers and geographical areas, there is no significant
concentration of credit risk. There is no insurance for credit
risk in place. The cash transactions are executed with
creditworthy financial institutions. The Company’s credit risk
management framework includes a thorough screening of
banking partners based on their creditworthiness and high
credit ratings from reputable credit rating agencies such as
Moody’s.
LIQUIDITY RISK
Liquidity risk is the risk that the Group is unable to meet
its obligations when they are due. The Group’s policy with
regard to liquidity risk is to ensure to the best of its ability
that sufficient committed credit facilities are available to
meet its payment obligations on time, in both normal and
exceptional situations. The Trade and Other Liabilities all
fall due within one year.
The Group maintains flexibility in funding by keeping
credit lines available for an amount of € 7 million at the
ABN AMRO Bank NV. On the basis of cash flow forecasting
models, the Group tests whether the available credit
2023/2024
2022/2023
Increase EUR-USD 10% Decrease EUR-USD 10% Increase EUR-USD 10% Decrease EUR-USD 10%
Net Result (311) 375 (454) 608
Equity (2,852) 3,486 (3,003) 3,671
In relative terms, the various currencies affected the Group’s net sales and expenses as follows:
Revenue
Expenses
2023/2024 2022/2023 2023/2024 2022/2023
Euro 48% 44% 43% 41%
US Dollar 36% 39% 34% 35%
Other 16% 17% 23% 24%
Total 100% 100% 100% 100%
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
facilities will cover the expected credit need. Based on the
analysis, the Group believes that the current expected
credit need is covered sufficiently.
The maturity of the Company’s non-current and current
financial liabilities as per 31 March 2024 is as follows
(amounts in thousands of euros; maturity in years):
< 1 15,690
1 - 5 969
> 5 284
Total 16,943
INTEREST RATE RISK
At the end of the financial year, there were no current or
non-current borrowings. As the Group has no significant
interest-bearing assets and liabilities, the direct impact of
changes in the market rates to the Group’s income and
operating cash flow is limited.
CAPITAL RISK
The policy of the Group regarding the capital structure of
the Company is based on the solvency ratio. The solvency
ratio remains above 60% and is defined as equity/total
assets. In addition, the Group aims to finance its activities
with equity.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The Group applies the following hierarchy for determining
and disclosing the fair value of financial instruments by
valuation technique:
•
Level 1: Quoted (unadjusted) prices in active markets
for identical assets or liabilities;
•
Level 2: Valuation techniques whereby the lowest-level
input as significant for valuation at fair value is directly
or indirectly observable;
•
Level 3: Valuation techniques whereby the lowest level
input as significant for valuation at fair value is not
observable.
Changes in the fair value of the above-mentioned Financial
Instruments, if accounted for at fair value, are recognized
in the Income Statement unless hedge accounting is
applied.
5. Cash Flow Statement
The cash flow statement is prepared using the indirect
method. Cash flows in foreign currencies are translated to
euros against the exchange rate at transaction date.
Exchange rate diferences for cash and cash equivalents
are shown separately in the cash flow statement. Interest
paid and received and payments for income taxes are
presented under net cash from operating activities.
Dividends paid are included under cash flow from
financing activities.Transactions not involving an exchange
of cash are not included in the cash flow statement. The
payment of lease instalments under the financial lease
contract are shown as a cash out under financing activities
as far as the repayment is concerned and a cash out
under operating activities as far as the interest is
concerned.
6. Segment Information
The Group is divided into geographical segments for
management as well as for business purposes. The
segment information contained in the financial statements
is therefore presented based on the organizational and
the reporting structure of the Group. In this, the three
operating units each represent a region and the NV, which
represents General Management, Innovation and
Technology and other central functions.
The Board of Management monitors the operating result
of the geographic segments to facilitate the decision-
making process in relation to the allocation of resources
and the performance evaluation. The operating result of
the segments is determined and based on the same
accounting principles as the operating result shown in the
consolidated financial statements.
Transfer prices for transactions and services between the
operating segments are set on an arm’s-length basis.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
96
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
Segments 2023/2024 EMEIA Americas Asia NV
Eliminations
Total
Revenue 54,564 38,065 10,656 – – 103,285
Intersegmental Transactions 1,240 44 6 – (1,290) –
Revenue including Intersegmental Transactions 55,804 38,109 10,662 – (1,290) 103,285
Depreciation, Amortization and Impairments (1,764) (908) (395) (167) 7 (3,227)
Operating Result 2,620 2,251 1,028 5,269 (4,157) 7,011
Financial Income 1 24 109 298 (291) 141
Financial Expenses (305) (7) (8) (108) 293 (135)
Income Tax (603) (638) (312) (286) 4 (1,835)
Net Result 1,713 1,631 817 5,182 (4,161) 5,182
Non-Current Assets 16,091 5,861 2,609 62,448 (60,372) 26,637
Current Assets 23,536 19,326 9,222 1,394 (1,717) 51,761
Liabilities 17,048 4,125 1,638 2,387 (8,255) 16,943
Total Investments 3,935 437 98 – – 4,470
Average Number of Employees (in FTEs) 196 91 102 21 – 410
Segments 2022/2023 EMEIA Americas Asia NV
Elimi nations
Total
Revenue 54,544 42,437 14,457 – – 111,438
Intersegmental Transactions 1,281 52 – – (1,333) –
Revenue including Intersegmental Transactions 55,825 42,489 14,457 – (1,333) 111,438
Depreciation, Amortization and Impairments (1,656) (960) (445) (258) 66 (3,253)
Operating Result 862 3,389 1,797 5,797 (4,552) 7,293
Financial Income 3 20 36 170 (171) 58
Financial Expenses (200) (7) (1) (100) 171 (137)
Income Tax (193) (788) (354) 2 (12) (1,345)
Net Result 472 2,613 1,479 5,869 (4,564) 5,869
Non-Current Assets 13,409 6,028 2,717 62,215 (60,016) 24,353
Current Assets 22,182 16,694 10,591 839 (904) 49,402
Liabilities 14,755 1,290 1,795 4,244 (7,142) 14,942
Total Investments 3,264 377 210 28 – 3,879
Average Number of Employees (in FTEs) 204 101 113 20 – 438
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FINANCIAL STATEMENTSESG
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97
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
7. Revenue
The tables below show the breakdown of revenue by market segment and by geographical
market.
Revenue by market segment 2023/2024 2022/2023
Building & Construction 47,819 51,695
Packaging 32,731 35,061
Coatings & Sealants 13,880 13,604
Other 8,855 11,078
Total Revenue 103,285 111,438
Revenue by geographical market 2023/2024 2022/2023
Europe 39,480 40,571
North America 36,958 40,584
Asia 15,218 21,180
Rest of world 11,629 9,103
Total Revenue 103,285 111,438
The Group generates revenue primarily from the sale of its self-produced tailored
colorants to its B2B customers across the world in following key markets: Building &
Construction; Packaging and Coatings & Sealants. In Building & Construction various
markets are served, these include profiles, pipes, tubing and fittings, siding and cladding,
decking, fencing, window blinds and insulation. The Group offers solutions for a wide range
of polymers. The Group’s Packaging products combine any color with multiple
functionalities offering a customized packaging solution around properties, specifications
and performance. Coatings & Sealants offers a wide range of industrial colorant solutions.
Revenue by geographical market from the Netherlands in 2023/2024 was € 9,512 or 9%
(2022/2023: € 9,262 or 8%); from United States of Americas in 2023/2024 was € 23,418
or 23% (2022/2023: € 26,626 or 24%) and from Indonesia € 5,369 or 5% in 2023/2024
(2022/2023: € 7,044 or 6%).
8. Personnel Expenses
The table below shows the breakdown for Personnel Expenses.
2023/2024 2022/2023
Wages and Salaries (18,828) (18,762)
Social Security Costs (2,211) (2,035)
Pension Costs (1,214) (1,075)
Total Personnel Expenses (22,253) (21,872)
In the financial year the Group changed the presentation of costs related to external
resources from Wages and Salaries to Other Personnel Expenses in order to increase
insights and better align with international reporting standards. For comparison reasons
the 2022/2023 numbers have been adjusted (€ 1,502) resulting in an increase of Other
Personnel Expenses and a decrease of Wages and Salaries. Please refer to Note 9.
Under wages and salaries an accrual for profit sharing € 942 is included (2022/2023:
€ 968). All employees in the Group are eligible for the profit sharing plan. Payments
depend on the actual Group’s ROI and the actual operating result of the division in
which the individual employee works, please see Note 30: Profit-sharing plan.
Above personnel costs include restructuring costs (2023/2024: € 648; 2022/2023: € nil).
Government grants included are € 25 included (2022/2023: € 55).
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
The remuneration of the Board of Management and the Supervisory Board is shown in
Note 29: Related Parties.
In this financial year, the average number of employees was 410 FTEs (2022/2023:
438 FTEs), see Note 6 for average number of FTEs per segment.
9. Other Operating Expenses
The table below shows the main components of the Other Operating Expenses.
2023/2024 2022/2023
Other Personnel Expenses (4,570) (4,262)
Travel and Accommodation (916) (821)
Maintenance (1,603) (1,667)
Energy (1,753) (1,957)
Consulting (2,647) (2,801)
Materials (1,510) (1,714)
Insurance (783) (732)
Other Expenses (2,473) (2,128)
Total Other Operating Expenses (16,255) (16,082)
In the financial year Other Expenses include exchange rate differences for the amount of
(€ 383) (2022/2023: (€ 261)).
Please refer to Note 8 for disclosure on a change of presentation of costs compared to
previous year.
10. Income Tax
The main components of the Tax charge in this financial year are shown in the table below.
2023/2024 2022/2023
Corporate Income Tax due this year:
•
Current Income Tax (1,769) (1,725)
•
Tax Incentive Programs, including Innovation Box 164 114
•
Adjustments of tax recorded in previous years (17) 334
•
Other Taxes (212) (67)
Deferred Tax:
•
In relation to the existence and reversal of
temporary differences (1) (1)
Total Tax Expense (1,835) (1,345)
The Corporate Income Tax as recognized in the consolidated income statement amounts
to € 1,835 (2022/2023: € 1,345). The effective tax rate is 26.2% (2022/2023: 18.5%) the
latter is mainly explained by previous years adjustments.
The Other Taxes mainly relate to local applied Withholding Taxes on royalties charged by
and paid to the Company by the operating entity in Indonesia, which will be gradually
applied against the Dutch corporate income tax.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
99
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
Calculation of the effective tax rate at statutory tax rates in the Netherlands.
2023/2024 2022/2023
Result before Income Tax 7,017 7,214
Tax at the rate applicable in the Netherlands (25.8%) (1,810) (25.8%) (1,868)
Effect of different tax rates in countries in
which the Group operates 0.6% 42 2.0% 143
Adjustments of taxes previous years (0.2%) (17) 4.6% 334
Expenses not deductible 0.2% 17 (1.5%) (110)
Tax incentive programs 2.3% 164 1.6% 114
Other differences (3.3%) (231) 0.6% 42
Total Tax Expense (26.2%) (1,835) (18.5%) (1,345)
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
11. Intangible Assets
Development
Costs Software Total
As at 31 March 2022
Cost 1,922 532 2,454
Accumulated Amortization (1,874) (511) (2,385)
Carrying Amount 48 21 69
Change in Asset Value
Capital Expenditures
– – –
Amortization
(48) (16) (64)
Changes
(48) (16) (64)
As at 31 March 2023
Cost 1,922 532 2,454
Accumulated Amortization (1,922) (527) (2,449)
Carrying Amount – 5 5
Change in Asset Value
Capital Expenditures – 1 1
Amortization – (5) (5)
Changes – (4) (4)
As at 31 March 2024
Cost 1,922 533 2,455
Accumulated Amortization (1,922) (532) (2,454)
Carrying Amount – 1 1
The Group’s total expenses for research and development were € 1,392 in the financial
year (2022/2023: € 1,605). The expenses are included under Personnel Expenses,
Depreciation, Amortization and Other Operating Expenses. Due to the development
structure of the research and technology department, the Group does not comply with all
the criteria for capitalizing development costs in line with IAS 38,57. The amortization
amounting to € 5 (2022/2023: € 64) is recognized under Amortization and Impairments in
the consolidated Income Statement.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
101
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
12. Property, Plant and Equipment
Land and
Buildings
Machinery and
Equipment Equipment
Assets under
Construction Total
As at 31 March 2022
Cost
26,016 31,720 4,930 670 63,336
Accumulated Depreciation
(15,736) (22,522) (4,261) – (42,519)
Carrying Amount
10,280 9,198 669 670 20,817
Change in Asset Value
Capital Expenditures
184 149 73 3,473 3,879
Transfer Assets under Construction
282 1,215 278 (1,775) –
Disposals
(1) (1) (1) – (3)
Depreciation
(688) (1,623) (262) – (2,573)
Exchange Rate Differences
101 104 10 (8) 207
Changes
(122) (156) 98 1,690 1,510
As at 31 March 2023
Cost
26,481 33,083 5,280 2,360 67,204
Accumulated Depreciation
(16,323) (24,041) (4,513) – (44,877)
Carrying Amount
10,158 9,042 767 2,360 22,327
Change in Asset Value
Capital Expenditures
225 663 97 3,484 4,469
Transfer Assets under Construction
166 1,218 23 (1,407) –
Disposals
(45) (5) 1 – (49)
Depreciation
(662) (1,670) (225) – (2,557)
Exchange Rate Differences
42 35 6 5 88
Changes
(274) 241 (98) 2,082 1,951
As at 31 March 2024
Cost
26,827 34,959 5,401 4,442 71,629
Accumulated Depreciation
(16,943) (25,676) (4,732) – (47,351)
Carrying Amount
9,884 9,283 669 4,442 24,278
No Personnel Expenses were capitalized in this
financial year (2022/2023; nil).
No impairments incurred this financial year.
Included in land and buildings is land for the of
amount € 2,133 (2022/2023: € 2,025).
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
102
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
13. Right-of-Use Assets
The table below shows the movement of Right-of-Use Assets. These assets consist
of capitalized lease agreements.
Land and
Buildings
Machinery
and
Equipment Vehicles Total
As at 31 March 2022
Carrying Amount 374 98 775 1,247
Additions – 98 233 331
Remeasurements – – 3 3
Depreciation (190) (66) (360) (616)
Transfer (17) 44 (27) –
Exchange Rate Differences 7 1 1 9
Changes (200) 77 (150) (273)
As at 31 March 2023
Carrying Amount 174 175 625 974
Additions 236 – 134 370
Remeasurements 431 – 134 565
Depreciation (196) (70) (399) (665)
Transfer – – – –
Exchange Rate Differences 4 1 1 6
Changes 475 (69) (130) 276
As at 31 March 2024
Carrying Amount 649 106 495 1,250
Interest expenses on the lease liabilities recognized within finance expenses was € 44
(2022/2023: € 44). There were no leases with a low value not recorded, while short term
leases not recorded amounted to € 8.
As at 31 March 2024, the Group was not committed to leases with future cash outflows
which had not yet commenced and as such were not accounted for as a liability as at
31 March 2024. The total cash outflow from leases in this financial year was € 550.
Please refer to Note 24: Lease Liabilities.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
103
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
14. Deferred Tax Assets and Liabilities
Deferred Tax resulting from temporary differences between the fiscal and commercial
value of assets and liabilities is accounted for at the nominal tax rate applicable in the
country concerned, but only if it is likely to be realized from future taxable profits.
This likelihood assessment is based on projections of the future taxable results of the
relevant entities in the Group. These projections are partly based on approved budgets.
The Deferred Tax Assets and Liabilities stated in the balance sheet can be attributed to the
following items:
2024 2023
Assets Liabilities Assets Liabilities
Property, Plant and Equipment 382 236 314 275
Financial Non-Current Assets 2 48 185 –
Inventories 193 20 207 –
Other Receivables 413 29 222 –
Employee Benefit Obligations 183 16 298 –
Other Assets and Liabilities 231 28 15 25
1,404 377 1,241 300
Offset within same tax
jurisdiction (296) (296) (194) (194)
At the end of the year 1,108 81 1,047 106
2024 2023
Current 29 29
Non-Current 998 912
Total Deferred Income Tax Assets and Liabilities 1,027 941
Change in Net Deferred Tax 2024 2023
At the start of the year 941 1,142
Recognized in Income Statement (1) (1)
Transferred to current tax liabilities 87 (200)
At the end of the year 1,027 941
The deferred tax asset position increased in the financial year by € 86 compared to
a decrease previous year (€ 201) of which € 87 (2022/2023: € 200) due to transfer to
current tax liabilities.
15. Inventories
2024 2023
Raw Materials 8,429 8,764
Finished Goods 6,760 6,801
Total Inventories 15,189 15,565
In 2023/2024, inventories of € 51,377 (2022/2023: € 59,016) were recognized as an
expense during the year and included in cost of materials.
The provision for obsolete inventories amounts to € 1,375 (2023: € 1,220), and is based on
aging of the inventories and assessment by the Board of Management on the risk for
obsolescence. Neither in the financial year, nor in previous year, inventories have been
written off to net realizable value.
2024 2023
At the start of the year (1,220) (1,016)
Additions for the year (212) (224)
Releases for the year 67 34
Exchange Rate Differences for the year (10) (14)
At the end of the year (1,375) (1,220)
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
104
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
16. Trade and Other Receivables
2024 2023
Trade Receivables 15,704 14,935
Loss Allowance (135) (146)
Other Tax Receivables 513 1,019
Prepaid costs 769 780
Total Trade and Other Receivables 16,851 16,588
The Tax Receivables relate to a VAT receivable in Indonesia. The Group expects to receive
this in full in the following financial year. The aging of Trade Debtors is as follows:
Trade Receivables: Aging in Days 2024 2023
Not due 14,249 13,366
1 – 30 1,213 1,227
31 – 60 57 102
61 – 365 20 50
> 366 30 44
Total 15,569 14,789
Trade and Other Receivables with less than one year to maturity are recognized initially at
fair value and subsequently at amortized cost. Additions to the Allowance for Expected
Credit Losses are included in the Income Statement under Other Operating Expenses.
The table below shows movements in the Allowance for Expected Credit Losses.
2024 2023
At the start of year (146) (156)
Additions for the year (13) (12)
Releases for the year 27 22
Written off for the year – 2
Exchange Rate Differences (3) (2)
At the end of year (135) (146)
The table below shows the percentages used for expected credit losses on trade
receivables.
Overdue in days 2024 2023
Not due 0.24% 0.24%
1 – 30 1.00% 1.00%
31 – 60 2.50% 2.50%
61 – 365 5.00% 5.00%
> 365 100.00% 100.00%
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
105
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
17. Cash and Cash Equivalents
2024 2023
Cash in banks 18,516 15,750
Cash in hand 7 7
Total Cash and Cash Equivalents 18,523 15,757
Cash and Cash Equivalents are freely available to the Group, except for a limited amount of
funds in deposits, which have a maturity within one year. The Company has a credit facility
in place with ABN AMRO Bank NV for the amount of € 7,000 (2023: € 7,000).
18. Share Capital
ISSUED SHARE CAPITAL
The registered capital of Holland Colours NV is € 6,810 divided into 3,000,000 ordinary
shares with a face value of € 2.27 per share. Of this registered total, an amount of 860,351
shares are issued and fully paid up. The total issued share capital is € 1,953. There were no
changes to the issued capital either in the 2023/2024 or in the 2022/2023 financial year.
19. Reserves
SHARE PREMIUM RESERVE
The Share Premium Reserve of € 1,219 is available for distribution to shareholders with
no changes compared to prior year.
TRANSLATION RESERVE
The legal Translation Reserve relates to all exchange-rate differences that originate from
the translation of the financial statements of the subsidiaries with a functional currency
other than the euro. These translation results are directly allocated to Equity via Other
Comprehensive Income.
OTHER RESERVES
The Other Reserves comprise of the Reserve Intangible Assets as well as Retained
Earnings:
RESERVE INTANGIBLE ASSETS
A legal reserve for development costs is accounted for in the Company’s financial
statements, although not specifically required under EU-IFRS. This legal reserve is
accounted for within Equity to maintain alignment with Equity in the company financial
statements.
RETAINED EARNINGS
Retained earnings comprise the balance of accrued net results not distributed to the
Company’s shareholders.
In compliance with Article 21 of the Articles of Association and the Dividend Policy of the
Company the Board of Management have proposed following: to appropriate 50% of the
net result for the financial year 2023/2024 in line with previous year to the retained
earnings and a final dividend of 50% of the net result for 2023/2024 in line with
2022/2023.
These have been presented under retained earnings, hence no liability has been
recognized at balance sheet date.
Please refer to Note 21: Dividend and the Statutory Provisions regarding the Appropriation
of Profits (Other Information).
Legal reserves are not freely distributable to shareholders. Please refer to the
Consolidated Statement of Changes in Equity for the movements on equity.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
106
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
20. Earnings per Share
Earnings per share allocated to shareholders (ordinary and diluted) in this financial year
amounted to € 6.02 (2022/2023: € 6.82). The calculation of the earnings per share
at 31 March 2024 is based on the net result for the year attributable to shareholders of
€ 5,182 (2022/2023: € 5,869) and the average number of shares issued in this financial
year of 860,351. The total number of issued shares are unchanged compared to
31 March 2023.
21. Dividend
Ordinary dividends declared and paid in the financial year ended 31 March 2024,
in amounts per ordinary share, comprise a final dividend for 2022/2023 of € 3.41
(2021/2022: € 5.91).
The Board of Management have proposed a final dividend for 2023/2024 of € 3.01 per
ordinary share (2022/2023: € 3.41, for which no liability has been recognized at the
balance sheet date.
22. Non-Controlling Interest
Per 1 April 2022, Gaypa Srl sold its shares (12.1%) in PT Holco Indo Jaya to Holland
Colours NV. The purchase price (consideration) of € 420 was based on the net equity
value of PT Holco Indo Jaya per 1 April 2022.
2024 2023
At the start of the year – 420
Purchase of Minority Share PT HIJ – (420)
At the end of the year – –
23. Credit Facilities
The Group does not have any long-term debt positions outstanding (2023: nil). Short-
term funding needs are covered with access to current account credit facilities of € 7,000
as per year end (2023: € 7,000). These facilities are provided by ABN AMRO Bank NV and
have no expiration date. The amount drawn was nil at the end of the year, as it was at the
end of prior year.
24. Lease Liabilities
The Group recognized Lease Liabilities on the balance sheet. Please refer to Note 13
for disclosure on the Right-of-Use Assets.
2024 2023
At the start of year 880 1,279
Repayments for the year (665) (597)
Additions for the year 370 332
Remeasurements for the year 512 2
Other Adjustments for the year – (143)
Exchange Rate Differences 7 7
At the end of year 1,104 880
2024 2023
Non-Current 672 441
Current 432 439
Total Lease Liabilities 1,104 880
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
107
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
Maturity analysis – contractual undiscounted cashflows:
In years 2024 2023
< 1 595 466
1 – 5 716 504
> 5 65 –
Total 1,376 970
25. Employee Benefits
PRE-PENSION PLAN – THE NETHERLANDS
The pre-pension plan in the Netherlands relates to the obligation to issue a conditional
annual payment, as per Note 3, the originally agreed conditional financing of past service
years in the pre-pension plan has been converted into an equivalent conditional annual
payment. At 31 March 2024 the liability amounted to € 139 (2023: € 174).
TERMINATION OF EMPLOYMENT - INDONESIA
This relates to the legal liability to make a payout should the employment of Indonesian
employees be terminated. Primary assumptions are following:
31 March 2024 31 March 2023
Discount Rate 6.8% 7.0%
Expected Return Fund Capital Expenditures 6.0% 7.0%
Future Salary Increases 6.0% 6.0%
Weighted Average Duration 11.06 10.10
Assumptions relating to future mortality rates are based on published statistical data
and mortality tables. The mortality table used is the TMI IV 2019 (2023: TMI IV 2019)
table with a correction factor varying for age and gender. The total expected long-term
Return on Investment amounts to 6.8% (2023: 7.0%).
JUBILEE OBLIGATION
Movements in the Employee Benefits are shown in the table below.
Pre-
pension
Plan
Termination
Employment
Plan
Jubilee
Obligation Total
As at 31 March 2022 236 569 280 1,085
Additions for the year – – 77 77
Withdrawals for the year (44) (150) (33) (227)
Releases for the year (18) – (21) (21)
Other Adjustments for the year – 14 3 17
As at 31 March 2023 174 433 324 931
Additions for the year – 44 – 44
Withdrawals for the year (27) (155) (39) (221)
Releases for the year (8) – (72) (80)
Other Adjustments for the year – 2 5 7
As at 31 March 2024 139 324 218 681
Of this total, the following amounts have been accounted for under current liabilities:
Pre-
pension
Plan
Termination
Employment
Plan
Jubilee
Obligation Total
As at 31 March 2024 43 169 11 223
As at 31 March 2023 42 138 12 192
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
108
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
26. Other Provisions
Movements in this other provision is shown in table below.
Environmental
Provision
As at 31 March 2022 109
Additions for the year 6
As at 31 March 2023 115
Releases for the year (73)
As at 31 March 2024 42
This provision relates to an obligation for environmental costs in Hungary and is valued
at the nominal value of the estimated expenditure with a duration of five years.
27. Trade and Other Liabilities
2024 2023
Trade Payables 9,350 7,751
Other Tax payables 668 629
Other Liabilities and Accruals 4,874 4,406
Total Trade and Other Liabilities 14,892 12,786
The Other Tax Payables relate mainly to property tax and social security costs.
The Other Liabilities and Accruals also includes a profit share to be paid to employees
of € 942 (2023: € 968). See Notes 29 and 30 for details regarding the profit sharing plan.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
109
28. Contingent Assets and Liabilities
CAPITAL COMMITMENTS
The Group had entered into capital commitments regarding Property, Plant and
Equipment as at 31 March 2024 for the amount of € 680 (2023: € 5,556).
PURCHASE CONTRACTS
The total commitment related to raw material purchase contracts was € 10,451
(2023: € 8,458).
COLLATERALS
Collaterals given by Holland Colours NV to ABN AMRO Bank NV are following: pledging of
equipment, inventories and receivables in the Netherlands.
29. Related Parties
IDENTITY OF RELATED PARTIES
Related parties can be divided into the relations between the Group and its subsidiary
companies, the members of the Board of Management, Supervisory Board and Pigments.
REMUNERATION OF KEY OFFICERS OF THE GROUP
The key officers are the members of the Board of Management.
OTHER DISCLOSURES
IN THOUSANDS OF EUROS
REMUNERATION POLICY
The remuneration policy for the Board of Management, which consists of the Chief
Executive Officer, Chief Financial Officer and Chief Technology Officer, is set by the
Remuneration Committee part of the Supervisory Board. The Group strives to pay
remuneration in line with the market for a company of its size, and in proportion to its
overall salary structure. The remuneration package consists of a fixed and a variable
element. Fixed salaries are adjusted annually in line with inflation.
The variable payment for the Board of Management consists of a bonus plan based on
achieving financial and non-financial targets. The bonus is up to three times the monthly
salary in the event that 100% of the targets are achieved. Based on the results for this
financial year the Board of Management partly achieved bonus targets, accordingly the
bonus was expensed and recorded under current liabilities. The Board of Management
also participates in the profit-sharing plan. The cash-settled share-based payment for the
Board of Management is 75% of the total eligible profit-sharing. Please refer to Note 30
for further disclosure.
The company does not offer an option plan.
The Group does not provide any personal loans, guarantees or advance payments to
the members of the Board of Management or the Supervisory Board.
The contracts with the Chief Executive Officer, the Chief Financial Officer and the Chief
Technology Officer specify a term of appointment of four years and a severance payment
which is in accordance with the recommendations of the Dutch Corporate Governance
Code. The Chief Financial Officer is appointed ad interim.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
110
The breakdown of the remuneration for the Board of Management and Supervisory Board
is listed in the table below.
Board of Management Coen Vinke Eelco van Hamersveld Total
2023/2024 2022/2023 2023/2024 2022/2023 2023/2024 2022/2023
Fixed Salary 371 338 229 210 600 548
Pension Expenses 28 30 19 23 47 53
Variable Salary - Share-based Payment 20 19 11 11 31 30
Variable Salary - Cash 19 36 12 21 31 57
438 423 271 265 709 688
Above table includes the remuneration of CEO and CTO, and not the remuneration of CFO,
who is appointed ad interim, which costs are included in Other Personnel Expenses under
Other Operating Expenses.
Transactions with Key Officers
The total remuneration of Key Officers, which includes the CFO ad interim, is € 1,036
(2022/2023: € 981). Other than the regular remuneration, no transactions with key officers
took place during the financial year.
Other Interests of Members of the Board of Management
No transactions were effectuated during the financial year with parties in which any of the
Supervisory Board Members, Members of the Board of Management or their partners
have an interest.
Supervisory Board 2023/2024 2022/2023
J.W. van der Vlist – Verdel 32 –
R. Zoomers 13 45
A.R. Doornbos 32 32
J. Klaus 32 32
G.H. de Heer 32 32
Total 141 141
J.W. van der Vlist - Verdel was appointed July 2024 replacing R. Zoomers, who resigned
in that month. Their remuneraton for the financial year prorated is for 9 respectively
3 months.
The Annual General Meeting of Shareholders determines the remuneration of the
Supervisory Board Members. The remuneration is aligned with market standards.
Holland Pigments BV
At 31 March 2024 the Dutch based investment company Holland Pigments BV (‘Pigments’)
held 434,664 (2023: 434,652) shares in Holland Colours NV. Within Pigments employees
collectively held approximately 25% (2023: 25%) of the shares of Holland Pigments BV.
The costs incurred by Pigments in connection to activities relating to the employee
participation are reimbursed by Holland Colours NV. Please refer to page 74 for a further
description of the activities of Pigments. An amount of € 101 was accordingly paid to
Holland Pigments BV in the 2023/2024 financial year (2022/2023: € 99).
At the balance sheet date, there was no outstanding material position with Pigments.
Receivables from and payables to Pigments are not covered by commercial collateral, are
non-interest-bearing and are settled in cash.
OTHER DISCLOSURES
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
111
30. Other Disclosures
PROFIT-SHARING PLAN
The Group operates a profit-sharing plan for all employees including Board of
Management and management. The gross eligible amount under the plan, up to
1.5 months’ salary, depends on the Group’s actual ROI and the actual operating result
per division for the financial year. The profit-sharing is partly paid in shares in Holland
Pigments BV (Pigments). This part of the profit-sharing is accounted for as a cash-settled
share-based payment since the Group has an obligation to settle in shares of the ultimate
parent company, which are not equity instruments of a Group company. Therefore, the
eligible payable net amount, derived from the gross taxable amount, comprises of two
components: a net payment in cash to the employee, by the entity the employee works for,
and a cash payment to Holland Pigments to finance the settlement in Pigments shares.
The latter amount is depending on the position of the individual employee, and is 25%
to 75% of the total eligible profit-sharing. Each group entity pays this amount for its
employees to Pigments. Upon receipt of this net payment, Pigments purchases shares in
Pigment with equivalent value for the employees, at the latest calculated share price of
Pigments. There are no vesting conditions related to these shares. Payment of the total
net amount takes place after the financial statements have been adopted by the Annual
General Meeting of Shareholders of the Company. The total liability for profit-sharing plan
is accounted for under Other Liabilities and Accruals and expensed under Personnel
Expenses.
Based on the net result for the year 2023/2024 employees are eligible to a profit-sharing.
As disclosed in Note 8 Personnel Expenses, an expense for profit sharing of € 942
is included under Wages and Salaries (2022/2023: € 968), which is accrued for as
at 31 March 2024 (Note 26 Other Liabilities and Accruals), and thereof € 349/37%
(2023: € 358/37%) relates to conversion of profit-sharing into shares in Pigments
accounted for as a cash-settled share-based payment.
The shares held by Holland Pigments BV in Holland Colours NV are specified below.
2024 2023
Number of Shares in Holland Colours NV held
by Holland Pigments BV
At the start of the year 434,652 434,644
Purchased 12 8
At the end of the year 434,664 434,652
In euros
Share Price of Holland Colours NV at the end
of the year 94
118
Value 40,858,416 51,288,936
EMPLOYEE NUMBERS
During the 2023/2024 financial year, the company employed an average of 410 FTEs
(2022/2023: 438 FTEs), thereof 131 FTEs (2022/2023: 133 FTEs) were employed in the
Netherlands.
SUBSEQUENT EVENTS
No events took place after the reporting period that could materially affect the financial
statements.
OTHER DISCLOSURES
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
112
COMPANY INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH
In thousands of euros Note 2024 2023
Revenue
9,582
9,532
Personnel Expenses *34 (3,587) (3,339)
Amortization and Impairments 37 (4) (64)
Depreciation and Impairments 38/39 (163) (194)
Other Operating Expenses 35 (4,711) (4,732)
Total Operating Expenses (8,465) 8,329
Operating Result 1,117 1,203
Finance Income 298 170
Finance Expenses (108) (100)
Finance Income and Expenses 190 70
Result before Income Tax 1,307 1,273
Income Tax 36 (286) 2
Share in Result of Participations 40 4,161 4,594
3,875 4,596
Net Result 5,182 5,869
*
Comparative numbers have been adjusted. Please refer to Note 34.
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
113
In thousands of euros Note 2024 2023
Non-Current Assets
Intangible Assets 37 – 4
Property, Plant and Equipment 38 1,105 1,158
Right-of-Use Assets 39 129 170
Financial Assets 40 60,852 60,884
62,086 62,216
Current Assets
Receivables from Group Companies 498 141
Current Income Tax Receivables 683 521
Other Receivables and Prepayments 414 117
Cash and Cash Equivalents 161 60
1,756 839
Total Assets 63,842 63,055
In thousands of euros Note 2024 2023
Equity
Share Capital 41 1,953 1,953
Share Premium Reserve 41 1,219 1,219
Translation Reserve 41 721 506
Other Reserves 41 57,562 55,135
61,455 58,813
Non-Current Liabilities
Lease Liabilities 43 54 90
Employee Benefits 44 10 20
64 110
Current Liabilities
Payables to Group Companies 1,061 2,711
Lease Liabilities 43 81 83
Employee Benefits 44 8 8
Other Liabilities 1,173 1,330
2,323 4,132
Total Equity and Liabilities 63,842 63,055
COMPANY BALANCE SHEET
AS OF 31 MARCH
BEFORE PROPOSED PROFIT APPROPRIATION
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FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2023/2024
114
31. General
The company financial statements are part of the consolidated financial statements of
Holland Colours NV (the ‘Company’).
The company financial statements are prepared in accordance with Part 9 of Book 2 of
the Dutch Civil Code. The Company applies the same accounting policies to the company
financial statements as to those of the consolidated financial statements, and are
described in Note 3. The Company makes use of the option provided in Article 2:362,
paragraph 8 of the Dutch Civil Code. The only exception relates to participations in Group
companies, which investments in subsidiaries are measured at net asset value.
On 29 May the 2023/2024 company financial statements were presented to the
Supervisory Board and were authorized for issue. The company financial statements will
be presented to the Annual General Meeting of Shareholders for adoption on 11 July 2024.
32. Key Accounting Principles
The Company applies the same accounting policies to the company financial statements as
to those of the consolidated financial statements. Exceptions to this relate to participations
in Group companies and Loans to Group Companies.
The share in the result of participating interests consists of the share of the Company in
the result of those participating interests.
Results on transactions involving the transfer of assets and liabilities between the
Company and its participating interests and mutually between participating interests
themselves, are eliminated to the extent that they can be considered as not realized.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
IN THOUSANDS OF EUROS
The Company makes use of the option to eliminate intragroup expected credit losses
against the book value of loans and receivables from the Company to participating
interests, instead of eliminiation against the equity value of the participating interests.
Loans to Group Companies are measured at fair value.
The Company is the head of the fiscal unity for its Group entities based in the Netherlands.
The Company recognizes the portion of corporate income tax that it would owe as an
independent tax payer, taking into account the allocation of the advantages of the fiscal
unity. Settlement within the fiscal unity between the Company and its subsidairies takes
place through current account positions.
33. Revenue
Revenue relates to the charge for the financial year and the previous year of head office
costs for services provided and a research & technology fee to subsidiaries of the
Company.
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
34. Personnel Expenses
2023/2024 2022/2023
Wages and Salaries (2,967) (2,896)
Social Security (369) (234)
Pension Costs (251) (209)
Total Personnel Expenses (3,587) (3,339)
In the financial year the Company changed the presentation of costs related to external
resources from Wages and Salaries to Other Personnel Expenses in order to increase
insights and better align with international reporting standards. For comparison reasons
the 2022/2023 numbers have been adjusted (€ 509) resulting in an increase of Other
Personnel Expenses and a decrease of Wages and Salaries. Please refer to Note 35.
Under wages and salaries an accrual for profit sharing € 161 is included (2022/2023:
€ 150). Please refer to Note 30: Profit-sharing Plan.
Above personnel costs include restructuring costs (2023/2024: € 73; 2022/2023: € nil).
The remuneration of the Board of Management and the Supervisory Board is shown in
Note 29: Related Parties.
In this financial year, the average number of employees was 21 FTEs (2022/2023: 20 FTEs),
all FTEs worked in the Netherlands.
35. Other Operating Expenses
The table below shows the main components of the Other Operating Expenses.
2023/2024 2022/2023
Other Personnel Expenses (699) (921)
Travel and Accommodation (100) (95)
Consulting (1,774) (1,981)
Materials (899) (1,098)
Insurance (274) (274)
Other Expenses (965) (363)
Total Other Operating Expenses (4,711) (4,732)
Please refer to Note 34 for disclosure on a change of presentation of costs compared to
previous year.
36. Income Tax
2023/2024 2022/2023
Current Tax
Current Year (318) (216)
Prior Years 32 218
Total Income Tax (286) 2
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
37. Intangible Assets
Development
Costs Software Total
As at 31 March 2022
Cost 1,922 121 2,043
Accumulated Amortization (1,874) (101) (1,975)
Carrying Amount 48 20 68
Change in Asset Value
Capital Expenditures – – –
Amortization (48) (16) (64)
Changes (48) (16) (64)
As at 31 March 2023
Cost 1,922 121 2,043
Accumulated Amortization (1,922) (117) (2,039)
Carrying Amount – 4 4
Change in Asset Value
Amortization – (4) (4)
Changes – (4) (4)
As at 31 March 2024
Cost 1,922 121 2,043
Accumulated Amortization (1,922) (121) (2,043)
Carrying Amount – – –
The Company’s total expenses for research and development were € 1,392 in the financial
year (2022/2023: € 1,605). Of this amount nil (2022/2023: nil) is capitalized, whereas the
remainder is reported under Other Income and Expenses after Tax in the company
financial statements.
The costs of Amortization and Impairments of € 4 (2022/2023: € 64) are included in the
Amortization item in the company financial statements.
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
38. Property, Plant and Equipment
Land and
Buildings Equipment
Assets under
Construction Total
As at 31 March 2022
Cost
3,414 269 1 3,684
Accumulated Depreciation
(2,240) (259) – (2,499)
Carrying Amount
1,174 10 1 1,185
Change in Asset Value
Capital Expenditures
1 – 29 30
Transfer Assets under Construction
– 29 (29) –
Depreciation
(51) (6) – (57)
Changes
(50) 23 – (27)
As at 31 March 2023
Cost
3,415 298 1 3,714
Accumulated Depreciation
(2,291) (265) – (2,556)
Carrying Amount
1,124 33 1 1,158
Change in Asset Value
Capital Expenditures
– – – –
Transfer Assets under Construction
– – – –
Depreciation
(43) (9) (1) (53)
Changes
(43) (9) (1) (53)
As at 31 March 2024
Cost
3,415 298 1 3,714
Accumulated Depreciation
(2,334) (274) (1) (2,609)
Carrying Amount
1,081 24 – 1,105
No Personnel Expenses were capitalized in this financial
year (2022/202: nil).
No impairments incurred this financial year.
Included in land and buildings is land for the of amount
€ 940 (2022/2023: € 940).
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
39. Right-of-Use Assets
The table below shows the movement of Right-of-Use Assets. These assets consist of
capitalized lease contracts for vehicles.
Total
As at 31 March 2022
Carrying Amount 223
Change in Asset Value
Additions 84
Depreciation (137)
Changes (53)
As at 31 March 2023
Carrying Amount 170
Change in Asset Value
Remeasurement 69
Depreciation (110)
Changes (41)
As at 31 March 2024
Carrying Amount 129
Interest expenses on the lease liabilities recognized within finance expenses was € 7
(2022/2023: € 6). There were no leases with a low value not recorded, as there were no
short term leases not recorded. As at 31 March 2024, the Company was not committed to
leases with future cash outflows which had not yet commenced and as such were not
accounted for as a liability as at 31 March 2024. The total cash outflow from leases in this
financial year was € 120.
Please refer to Note 43: Lease Liabilities.
40. Financial Assets
The Financial Assets can be specified as follows:
2024 2023
Investments in Subsidiaries 53,540 53,499
Loans Group Companies 6,562 6,694
Deferred Tax Assets 750 691
Total Financial Assets 60,852 60,884
Please refer to Note 3 for a list of the Group companies.
The table below shows movements in the investments in subsidiaries.
2024 2023
At the start of the year 53,499 50,280
Share in Result of Participations for the year 4,161 4,594
Purchase Minority Share PT HIJ for the year 27 420
Dividend Declared for the year (4,522) (2,481)
Currency Translation for the year 407 715
Other Changes for the year (32) (29)
At the end of the year 53,540 53,499
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
Movements in the Loans Group Companies and in the Deferred Tax Assets are shown
below.
Loans Group
Companies
Deferred
Tax
Assets Total
As at 31 March 2022 6,694 718 7,412
Additions – 26 26
Credit/(Charge) to the result
for the year – (53) (53)
As at 31 March 2023 6,694 691 7,385
Additions – 59 59
Repayments for the year (132) – (132)
As at 31 March 2024 6,562 750 7,312
Loans to Group Companies are due within one year, with no repayment schedule agreed,
this term will automatically be extended for further periods of one year until the loan is
fully repaid. Interest on the loans is variable and at arm’s length.
41. Equity
Please refer to the Consolidated Statement of Changes in Equity and Notes 18 and 19
for disclosure on Equity.
42. Credit Facilities
At the end of the financial year the Company does not have any long-term debt positions
outstanding (2023: nil). Short-term funding needs are covered with access to current
account credit facilities of € 7,000 as per year end (2023: € 7,000). These facilities are
provided by ABN AMRO Bank NV and have no expiration date. The amount drawn was nil at
the end of the year, as it was at the end of prior year.
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
43. Lease Liabilities
The company recognized Lease Liabilities on the balance sheet. The table below shows
the movement and breakdown of Non-Current and Current Lease Liabilities.
Please refer to Note 39 Right-of-Use Assets.
2024 2023
At the start of the year 173 252
Repayments for the year (112) (85)
Additions for the year – 84
Remeasurements for the year 74 –
Other Adjustments for the year – (78)
At the end of the year 135 173
2024 2023
Non-Current Lease Liabilities 54 90
Current Lease Liabilities 81 83
Total 135 173
Maturity analysis – contractual undiscounted cashflows:
In years 2024 2023
< 1 84 89
1 – 5 60 100
> 5 – –
Total 144 189
44. Employee Benefits
Please refer to Note 25 for disclosure on the Employee Benefits.
Movements in the Employee Benefits were as follows:
Pre-pension
Plan
Other
Employee
Benefits Total
As at 31 March 2022 33 11 44
Releases for the year (2) (3) (5)
Withdrawals for the year (11) – (11)
As at 31 March 2023 20 8 28
Additions for the year 4 – 4
Releases for the year – (4) (4)
Withdrawals for the year (8) (2) (10)
As at 31 March 2024 16 2 18
The following amounts have been accounted for as current under Other Liabilities and
Accrued Income:
Pre-pension
Plan the
Netherlands
Other
Employee
Benefits Total
As at 31 March 2024 6 2 8
As at 31 March 2023 8 – 8
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
45. Auditor’s Remuneration
The audit fees listed below relate to the procedures applied to the Companies and its
Group financial statements by external independent auditors, by Dutch and foreign based
accounting firms as referred to in Section 1, subsection 1 of the Audit Firms Supervision
Act (‘Wet toezicht accountantsorganisaties - Wta’) including their tax services and advisory
groups.
KPMG Accountants N.V. was appointed as auditor starting book year 2023-2024 taking
over from PricewaterhouseCoopers Accountants NV.
2023/2024 2022/2023
Audit Fees 403 436
Total 403 436
These audit fees relate to the audit of the Group financial statements, for the work
performed during the financial year. For procedures in the Netherlands the remuneration
amounts to € 297 (2022/2023: € 253). The remaining fees € 106 (previous year: € 183)
were charged to the Group’s subsidiaries.
46. Contingent Assets and Liabilities
COLLATERALS
Collaterals given by the Company to ABN AMRO Bank NV are following: pledging of
equipment, inventories and receivables in the Netherlands.
47. Other Disclosures
WRITTEN GUARANTEE
The Company has given a guarantee for its subsidiary Holland Colours Europe BV
in accordance with Section 403, Title 9, Book 2 of the Dutch Civil Code.
The Company has not given any written guarantees for its Group companies not based in
the Netherlands.
FISCAL UNITY
The Company is the head of the fiscal unity for its Group entities based in the Netherlands
with regard to value added tax and income tax.
SUBSEQUENT EVENTS
No events took place after the reporting period that could materially affect the financial
statements.
Apeldoorn, 29 May 2024
Board of Management Supervisory Board
Coen Vinke Jeanine van der Vlist
Eelco van Hamersveld Gert-Hein de Heer
Aukje Doornbos
Jorrit Klaus
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Statutory Provisions regarding the Appropriation
of Profits
REGARDING THE APPROPRIATION OF PROFITS, THE ARTICLES OF ASSOCIATION
STATE THE FOLLOWING:
Article 21
From the profit established in the approved financial statements, reserves are formed as
determined by the Board of Management with the approval of the Supervisory Board.
The profit remaining after the transfer to the reserves and distribution as stated in
paragraph 1 is at the disposal of the Annual General Meeting of Shareholders, with due
regard to the provisions of Section 105, Book 2 of the Dutch Civil Code.
The Board of Management, with the approval of the Supervisory Board, is authorized to
decide on the distribution of an interim dividend with due regard to the provisions of
Article 105 Book 2 of the Dutch Civil Code. The dividend will be made payable within one
month after it has been set, in the manner and at the place determined by the Board
of Management. Claims for profit distribution expire after a period of five years from the
date on which the dividends were made payable.
A resolution regarding the disposal of any reserve may be adopted by the Annual General
Meeting of Shareholders with due regard to the legal and statutory provisions.
OTHER INFORMATION
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123123
Independent Auditor’s Report
To: the General Meeting of Shareholders and the
Supervisory Board of Holland Colours N.V.
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS 2023-2024 INCLUDED IN THE
ANNUAL REPORT
Our opinion
In our opinion:
•
the accompanying consolidated nancial statements
give a true and fair view of the nancial position of
Holland Colours N.V. as at 31 March 2024 and of its
result and its cash ows for the year then ended, in
accordance with IFRS Accounting Standards as
endorsed by the European Union (EU-IFRS) and with
Part 9 of Book 2 of the Dutch Civil Code.
•
the accompanying company nancial statements give
a true and fair view of the nancial position of Holland
Colours N.V. as at 31 March 2024 and of its result for
the year then ended in accordance with Part 9 of
Book 2 of the Dutch Civil Code.
What we have audited
We have audited the financial statements 2023-2024 of
Holland Colours N.V. (the Company) based in Apeldoorn.
The financial statements include the consolidated financial
statements and the company financial statements.
The consolidated nancial statements comprise:
1 the consolidated balance sheet as at 31 March 2024;
2 the following consolidated statements for 2023-2024:
the income statement, the statement of comprehensive
income, the statement of changes in equity and cash
flow statement; and
3 the notes comprising material accounting policy
information and other explanatory information.
The company financial statements comprise:
1 the company balance sheet as 31 March 2024;
2 the company income statement for 2023-2024; and
3 the notes comprising a summary of the accounting
policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law,
including the Dutch Standards on Auditing. Our
responsibilities under those standards are further
described in the ‘Our responsibilities for the audit of the
financial statements’ section of our report.
We are independent of Holland Colours N.V. in
accordance with the ‘Verordening inzake de
onafhankelijkheid van accountants bij assurance-
opdrachten’ (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to independence)
and other relevant independence regulations in the
Netherlands. Furthermore, we have complied with the
‘Verordening gedrags- en beroepsregels accountants’
(VGBA, Dutch Code of Ethics).
We designed our audit procedures in the context of our
audit of the financial statements as a whole and in forming
our opinion thereon. The information in respect of going
concern, fraud and non-compliance with laws and
regulations, climate and the key audit matters was
addressed in this context, and we do not provide a
separate opinion or conclusion on these matters.
We believe the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
OTHER INFORMATION
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OTHER INFORMATION
Information in support of our opinion
Summary
Materiality
•
Materiality of EUR 1 million
•
1% of revenue
Group audit
•
Audit coverage of 90% of total assets
•
Audit coverage of 97% of revenue
Risk of material misstatements related to Fraud, NOCLAR, Going concern and Climate risks
•
Fraud risks: presumed risk of management override of controls and presumed risk of revenue recognition are identified.
•
Non-compliance with laws and regulations (NOCLAR) risks: risk of material misstatement related to the bribery and
corruption risk due to business with sales agents in countries with low CPI scores identified.
•
Going concern risks: no going concern risks identified by management.
•
Climate risks: we have considered the impact of climate-related risks on the financial statements and described our
approach and observations in the section ‘Audit response to climate-related risks’.
Key audit matters
•
Revenue recognition
Materiality
Based on our professional judgement we determined
the materiality for the financial statements as a whole at
EUR 1 million. The materiality is determined with reference
to revenue as we consider revenue the most appropriate
benchmark, because revenues is an important metric for
users of the financial statements. We have also taken into
account misstatements and/or possible misstatements
that in our opinion are material for the users of the
financial statements for qualitative reasons.
We agreed with the Supervisory board that misstatements
identified during our audit in excess of EUR 50,000 would
be reported to them, as well as smaller misstatements
that in our view must be reported on qualitative grounds.
Scope of the group audit
Holland Colours N.V. is at the head of a group of
components. The financial information of this group
is included in the financial statements of Holland
Colours N.V.
Our group audit mainly focused on significant
components. These are components that are (i) of
individual financial significance to the group, or (ii) that,
due to their specific nature or circumstances, are likely to
include significant risks of material misstatement for the
group financial statements.
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We have:
•
performed audit procedures ourselves at group level in
respect of the parent entity, the group consolidation,
the financial statement disclosures and complex
accounting items. This included procedures performed
regarding, amongst others, the Dutch tax position and
board remuneration; and
•
made use of the audit procedures performed by other
KPMG component auditors for the operations in the
Netherlands, United States, Canada and Indonesia. We
have provided detailed instructions to all component
auditors part of the group audit, covering the significant
audit areas and set out information required to be
reported back to the group audit team. Meetings were
held with all component auditors that participated in
the group audit to discuss the audit approach and
the audit findings and observations reported to the
group audit team, also we have reviewed the audit
documentation of the component auditors.
The audit coverage obtained through the audit of the
complete reporting packages amounts 90% of Total
assets and 97% of Revenue.
For the residual population not in scope we performed
analytical procedures in order to corroborate that our
scoping remained appropriate throughout the audit.
By performing the procedures mentioned above at group
components, together with additional procedures at
group level, we have been able to obtain sufficient and
OTHER INFORMATION
appropriate audit evidence about the group’s financial
information to provide an opinion about the financial
statements.
Audit response to the risk of fraud and non-compliance with
laws and regulations
In chapter ‘Risk Management’ of the Report of the Board
of Management, the Board of Management describes its
procedures in respect of the risk of fraud and non-
compliance with laws and regulations and the supervisory
board reflects on this.
As part of our audit, we have gained insights into the
Company and its business environment and the
Company’s risk management in relation to fraud and
non-compliance.
Our procedures included, among other things, assessing
the Company’s governance, risk management and
compliance framework, consisting of the Company’s Code
of conduct, Whistleblowing hotline, Anti-bribery and
corruption and Group compliance policies and agent
contracts.
Furthermore, we performed inquiries with the Board of
Management, Supervisory Board and other relevant
functions, such as group finance and the internal legal
counsel and included correspondence with relevant
authorities and regulators in our evaluation.
We have considered our initial audit as our element of
unpredictability, and involved forensic specialists in our
audit procedures.
As a result of our risk assessment, we identified the
following laws and regulations as those which could
potentially have a material effect on the financial
statements in case of non-compliance:
•
trade laws (reflecting the Company’s international
operating character);
•
health and safety law (reflecting the nature of the
Company’s production and distribution processes);
•
consumer product law, including product safety and
product liability claims (reflecting the nature of the
Company’s diverse product base); and
•
environmental law (reflecting environmental impact
restrictions, waste and contamination related to the
Company’s production and distribution processes).
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Based on the above and on the auditing standards, we
identified the following fraud risks that are relevant to our
audit, including the relevant presumed risks laid down in
the auditing standards, and responded as follows:
MANAGEMENT OVERRIDE OF CONTROLS
(A PRESUMED FRAUD RISK)
Risk:
•
Management is in a unique position to manipulate
accounting records and prepare fraudulent financial
statements by overriding controls that otherwise
appear to be operating effectively.
•
The key opportunities for management manipulation
are within the manual elements of the control
environment, such as journal entries.
Responses:
•
We evaluated the design and the implementation of
internal controls that mitigate fraud risks, such as those
related to journal entries;
•
We tested journal entries, including consolidation and
elimination entries, based on high risk criteria, amongst
others in relation to revenues, including inspection of
the source documentation to assess the validity of the
business rationale and substantiation of corroborating
evidence;
•
We assessed the appropriateness of changes
compared to prior year in the methods and underlying
assumptions used to prepare accounting estimates.
OTHER INFORMATION
Revenue recognition (a presumed fraud risk)
Our risk description and procedures performed to
address the fraud risk related to revenue recognition are
described in the key audit matter section.
NON-COMPLIANCE WITH LAWS AND
REGULATIONS
Risk:
•
As disclosed in chapters ‘Laws and regulations’ and
‘Fraud’, the Company is required to comply with
multiple laws and regulations. In case of non-
compliance with these regulations, the Company could
be subjected to fines and penalties. As result of the
Company engaging with sales agents in high risk
countries, we have identified a risk of material
misstatement associated with non-compliance with
laws and regulation.
Responses:
•
We evaluated the design and the implementation of
internal controls related to compliance with laws and
regulations.
•
We designed and performed substantive procedures
that specifically respond to the identified risk. Amongst
others:
•
We assessed and inspected the relevant applicable
regulations as well as the internal Code of Conduct;
•
We evaluated relevant written correspondence from
relevant authorities and regulators;
•
We obtained relevant documentation for a selection
of related transactions and checked underlying
supporting documentation, such as sales agent
contracts, to determine compliance with the
applicable regulations.
Our evaluation of procedures performed related to fraud
and non-compliance with laws and regulations did not
result in an additional key audit matter, next to Revenue
recognition. We communicated our risk assessment, audit
responses and results to the Board of Management and
the Supervisory Board.
Our audit procedures did not reveal indications and/or
reasonable suspicion of fraud and non-compliance that
are considered material for our audit.
Audit response to going concern
The Board of Management has performed its going
concern assessment and has not identified any going
concern risks. Our main procedures to assess the Board
of Management’s assessment were:
•
we considered whether the Board of Management’s
assessment of the going concern risks includes all
relevant information of which we are aware as a result
of our audit;
•
we analysed the company’s financial position as at year-
end and compared it to the previous financial year in
terms of indicators that could identify going concern
risks;
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•
we inquired with the Board of Management on the key
assumptions and principles underlying the
management board’s assessment of the going concern
risks.
The outcome of our risk assessment procedures did not
give reason to perform additional audit procedures on the
Board of Management’s going concern assessment.
Audit response to climate-related risks
The Company has set out its ambitions relating to climate
change in chapter ‘Environmental Social and Governance’
and in the section ‘Sustainability’ in chapter ‘Risk
Management’ of the Report of the Board of Management.
Among others, the Company has set key ambitions, such
as a reduction of CO
2
emission of the operational activities
by 50% in 2030 and an investment in innovation in order
to have 90% of the revenues in 2030 generated by
products that contribute to sustainability as defined by
management in these paragraphs.
Management has assessed, against the background of the
Company’s business and operations at a high level how
climate-related risks and opportunities and the Company’s
own ambitions could have a significant impact on its
business or could impose the need to adapt its strategy
and operations. Management has considered the impact
of transition risks, such as the transition towards applying
more sustainable materials and gaining deeper insights
into the sustainability needs of the Company’s clients, on
the financial statements in accordance with the applicable
financial reporting framework.
The Board of Management prepared the financial
statements, including considering whether the
implications from climate-related risks and ambitions have
been appropriately accounted for and disclosed. As part
of our audit we performed a risk assessment of the impact
of climate-related risks and the commitments/ambitions
made by the company in respect of climate change on the
financial statements and our audit approach. In doing this
we performed the following:
•
Understanding management’s processes:
•
we made inquiries to understand management’s
assessment against the background of the
Company’s business and operations of the potential
impact of climate-related risks and opportunities on
the Company’s financial statements and the
Company’s preparedness for this;
•
we have inspected minutes and documents relevant
for assessing the climate-related risks in the audit;
•
we obtained an understanding of relevant
sustainability themes and issues, considering the
operations and characteristics of the Company.
•
We have evaluated climate related fraud risk factors,
such as the fact that management’s remuneration is
dependent on both financial and non-financial
sustainability targets, such as CO
2
reductions and
compliance with laws and regulations, such as the
Regulation on the registration, evaluation, authorisation
and restriction of chemicals (REACH).
•
We have made use of KPMG’s climate change subject
matter experts to:
•
Support in obtaining an understanding of
management’s assessment processes;
•
Inspect the Company’s climate-related risk
disclosures in the Annual Report;
•
Obtain insights into potential business implications
of the climate-related risks identified by the
Company and its accounting in the financial
statements.
Based on our risk assessment procedures, we did not
identify a risk of material misstatement specific to
climate-related risk, including on the valuation of non-
current assets, and thus no further audit response was
considered necessary.
Based on the procedures performed above we found
climate related risks have no material impact on the
current financial statements and no material impact on
our key audit matters.
Furthermore we have read the ‘Other information’ with
respect to climate-related risks as included in the Annual
Report and considered whether such information contains
material inconsistencies with the financial statements or
our knowledge obtained through the audit, in particular as
described above and our knowledge obtained otherwise.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
128
Our key audit matter
Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the financial statements. We have communicated
the key audit matter to the Supervisory Board. The key
audit matter is not a comprehensive reflection of all
matters discussed.
Compared to last year the key audit matter with respect to
the assumptions in the valuation of inventory is not
included, as the Company’s provision for obsolete
inventory is limited and we agree with the Board of
Management that the risk of a material error in the
valuation of the inventory to be limited.
OTHER INFORMATION
Revenue recognition
Description
We identified a fraud risk in relation to the recognition of revenue. The presumed risk inherently includes the fraud risk
that management deliberately overstates revenue as management may feel pressure to achieve planned results for the
current year. We focused our presumed fraud risk on non-routine entries that increase revenue. As this is a significant
risk for which special attention from the auditor is needed we considered this as a key audit matter.
Our response
Our procedures primarily consisted of:
•
We evaluated the design and the implementation of relevant internal controls that mitigate fraud risks, such as
controls related to revenue recognition through journal entries;
•
We performed a data analysis matching the recorded revenue to the delivery notes and the order confirmations. For
entries increasing revenue outside the routine operational flow, we performed additional procedures including
vouching to source documentation;
•
We performed procedures to determine that no material credit notes have been issued subsequent to balance sheet
date;
•
We tested journal entries posted in revenue accounts based on high risk criteria, such as journal entries that increase
revenue without an expected counter-entry, including inspection of the source documentation to assess the validity of
the business rationale and substantiation of corroborating evidence; and
•
We tested the accuracy of the revenue related disclosures in the financial statements.
Our observation
Our audit procedures did not reveal indications and/or reasonable suspicion of fraudulent revenue recognition. The
results of our procedures performed regarding fraudulent revenue recognition due to fictitious revenue are satisfactory
and the related disclosures (note 7) are adequate.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
129
REPORT ON THE OTHER INFORMATION INCLUDED
IN THE ANNUAL REPORT
In addition to the financial statements and our auditor’s
report thereon, the annual report contains other
information.
Based on the following procedures performed, we
conclude that the other information:
•
is consistent with the financial statements and does not
contain material misstatements; and
•
contains the information as required by Part 9 of
Book 2 of the Dutch Civil Code for the management
report and other information.
We have read the other information. Based on our
knowledge and understanding obtained through our audit
of the financial statements or otherwise, we have
considered whether the other information contains
material misstatements.
By performing these procedures, we comply with the
requirements of Part 9 of Book 2 of the Dutch Civil Code
and the Dutch Standard 720. The scope of the procedures
performed is less than the scope of those performed in
our audit of the financial statements.
The Board of Management is responsible for the
preparation of the other information, including the
information as required by Part 9 of Book 2 of the Dutch
Civil Code.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS AND ESEF
Engagement
We were initially appointed by the General Meeting of
Shareholders as auditor of Holland Colours N.V. on 13 July
2023, for the audit of the year ended 31 March 2024.
No prohibited non-audit services
We have not provided prohibited non-audit services as
referred to in Article 5(1) of the EU Regulation on specific
requirements regarding statutory audits of public-interest
entities.
European Single Electronic Format (ESEF)
The Company has prepared its annual report in ESEF. The
requirements for this are set out in the Delegated
Regulation (EU) 2019/815 with regard to regulatory
technical standards on the specification of a single
electronic reporting format (hereinafter: the RTS on ESEF).
In our opinion the annual report prepared in XHTML
format, including the (partly) marked-up consolidated
financial statements as included in the reporting package
by Holland Colours N.V., complies in all material respects
with the RTS on ESEF.
The Board of Management is responsible for preparing
the annual report including the financial statements in
accordance with the RTS on ESEF, whereby the Board of
Management combines the various components into one
single reporting package.
Our responsibility is to obtain reasonable assurance for
our opinion whether the annual report in this reporting
package complies with the RTS on ESEF. We performed
our examination in accordance with Dutch law, including
Dutch Standard 3950N ’Assurance-opdrachten inzake het
voldoen aan de criteria voor het opstellen van een digitaal
verantwoordingsdocument’ (assurance engagements
relating to compliance with criteria for digital reporting).
Our examination included among others:
•
Obtaining an understanding of the entity’s financial
reporting process, including the preparation of the
reporting package;
•
Identifying and assessing the risks that the annual
report does not comply in all material respects with the
RTS on ESEF and designing and performing further
assurance procedures responsive to those risks to
provide a basis for our opinion, including:
•
Obtaining the reporting package and performing
validations to determine whether the reporting
package containing the Inline XBRL instance
document and the XBRL extension taxonomy files
have been prepared in accordance with the
technical specifications as included in the RTS on
ESEF;
•
Examining the information related to the
consolidated financial statements in the reporting
package to determine whether all required mark-
ups have been applied and whether these are in
accordance with the RTS on ESEF.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
130
DESCRIPTION OF RESPONSIBILITIES REGARDING
THE FINANCIAL STATEMENTS
Responsibilities of the Board of Management and the
Supervisory Board for the financial statements
The Board of Management is responsible for the
preparation and fair presentation of the financial
statements in accordance with EU-IFRS and Part 9 of
Book 2 of the Dutch Civil Code. Furthermore, the Board
of Management is responsible for such internal control
as management determines is necessary to enable the
preparation of the financial statements that are free from
material misstatement, whether due to fraud or error. In
that respect the Board of Management, under supervision
of the Supervisory Board, is responsible for the prevention
and detection of fraud and non-compliance with laws and
regulations, including determining measures to resolve
the consequences of it and to prevent recurrence.
As part of the preparation of the financial statements, the
Board of Management is responsible for assessing the
Company’s ability to continue as a going concern. Based
on the financial reporting frameworks mentioned, the
Board of Management should prepare the financial
statements using the going concern basis of accounting
unless the Board of Management either intends to
liquidate the Company or to cease operations, or has
no realistic alternative but to do so. The Board of
Management should disclose events and circumstances
that may cast significant doubt on the company’s ability to
continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the
Company’s financial reporting process.
Our responsibilities for the audit of the financial
statements
Our objective is to plan and perform the audit
engagement in a manner that allows us to obtain sufficient
and appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not
absolute, level of assurance, which means we may not
detect all material errors and fraud during our audit.
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 these
financial statements. The materiality affects the nature,
timing and extent of our audit procedures and the
evaluation of the effect of identified misstatements on our
opinion.
A further description of our responsibilities for the audit of
the financial statements is included in the appendix of this
auditor’s report. This description forms part of our
auditor’s report.
Groningen, 29 May 2024
KPMG Accountants N.V.
R.W. van Dijk RA
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
131
Appendix
DESCRIPTION OF OUR RESPONSIBILITIES FOR THE
AUDIT OF THE FINANCIAL STATEMENTS
We have exercised professional judgement and have
maintained professional scepticism throughout the audit,
in accordance with Dutch Standards on Auditing, ethical
requirements and independence requirements. Our audit
included among others:
•
identifying and assessing the risks of material
misstatement of the financial statements, whether due
to fraud or error, designing and performing audit
procedures responsive to those risks, and obtaining
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 the risk resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;
•
obtaining 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;
•
evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Board of
Management;
•
concluding on the appropriateness of the Board of
Management’s use of the going concern basis of
accounting, and based on the audit evidence obtained,
whether a material uncertainty exists related to events
or conditions that may cast significant doubt on
Holland Colours N.V.’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 a company to cease to continue
as a going concern;
•
evaluating the overall presentation, structure and
content of the financial statements, including the
disclosures; and
•
evaluating whether the financial statements represent
the underlying transactions and events in a manner
that achieves fair presentation.
We are solely responsible for the opinion and therefore
responsible to obtain sufficient appropriate audit evidence
regarding the financial information of the entities or
business activities within the group to express an opinion
on the financial statements. In this respect we are also
responsible for directing, supervising and performing the
group audit.
We communicate with the Supervisory Board regarding,
among other matters, the planned scope and timing of
the audit and significant audit findings, including any
significant findings in internal control that we identify
during our audit. In this respect we also submit an
additional report to the audit committee in accordance
with Article 11 of the EU Regulation on specific
requirements regarding statutory audits of public-interest
entities. The information included in this additional report
is consistent with our audit opinion in this auditor’s report.
We provide the Supervisory Board with a statement that
we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the Supervisory
Board, we determine the key audit matters: those matters
that were of most significance in the audit of the financial
statements. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare
circumstances, not communicating the matter is in the
public interest.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
132
CONTACT
HOLLAND COLOURS NV
Halvemaanweg 1
7323 RW Apeldoorn
P.O. Box 720
7300 AS Apeldoorn
The Netherlands
T (31) 55-368 0700
E info@hollandcolours.com
Chamber of Commerce 08036180
HOLLAND COLOURS EUROPE BV
Halvemaanweg 1
7323 RW Apeldoorn
P.O. Box 720
7300 AS Apeldoorn
The Netherlands
T (31) 55-368 0700
E info@hollandcolours.com
HOLLAND COLOURS UK LTD
Unit 16/17/18, Sabre Court
Valentine Close, Gillingham
Business Park
Gillingham, Kent ME8 0RW
United Kingdom
T (44) 1634-388 727
E uk@hollandcolours.com
HOLLAND COLOURS
HUNGARIA KFT
Déri Miksa körút 2
P.O. Box 8
5000 Szolnok
Hungary
T (36) 56-420 644
E szolnok@hollandcolours.com
HOLLAND COLOURS
AMERICAS INC
1501 Progress Drive
Richmond, Indiana, 47374
USA
T (1) 765-935 0329
Toll-free (1) 800-723-0329
E richmond@hollandcolours.com
HOLLAND COLOURS CANADA INC
200 Consumers Rd, Suite 303
Toronto, Ontario M2J 4R4
Canada
T (1) 416-449 4344
Toll-free (1) 800-361 3967
E canada@hollandcolours.com
HOLLAND COLOURS
MEXICANA SA DE CV
Tezosomoc #4
(Bodega 3)
Col. Recursos Hidráulicos
Tultitlán, Edo de México
México
CP 54913
T 52 (55) 58-94-36-41
E mexico@hollandcolours.com
PT HOLLAND COLOURS
ASIA - SURABAYA
Jl. Berbek Industri II/2
(Surabaya Industrial Estate Rungkut)
Sidoarjo 61256-East Java
Indonesia
T (62) 31-849 3939
E surabaya@hollandcolours.com
Export department Surabaya:
T (62) 31-841 1 801
E exportasia@hollandcolours.com
PT HOLLAND COLOURS
ASIA – JAKARTA
Kawasan Industri dan Pergudangan
TAMAN TEKNO BSD Blok E3 no. 45
Kecamatan SETU, Tangerang Selatan,
Banten 15314-West Java
Indonesia
T (62) 31-849 3939
E surabaya@hollandcolours.com
REPRESENTATIVE OFFICE CHINA
Room 908, Eco City 1788, No. 1788
West Nanjing Road, Jing’an District
Shanghai 20040
China
T (62) 31-849 3939
E surabaya@hollandcolours.com
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
133
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2023/2024
134
FIND OUT MORE
Contact our sales people about purchasing quantities and deliveries or our technical experts for questions
about our technology and its implementation:
AMERICAS: richmond@hollandcolours.com | +1 765-935 0329 / toll-free: +1 800 723 0329
ASIA: surabaya@hollandcolours.com | +62 31 849 3939
EMEIA: info@hollandcolours.com | +31 (0)55 36 80 700
www.hollandcolours.com
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