WindarPhotonics AnnualReport 2018 All - Flipbook - Page 74
Notes to the Financial Statements
continued
28. Warranty provision
20182017
€€
Provision at the beginning of reporting period
Provision charged to the profit and loss account
Utilised in year
Foreign exchange rate movements
72,205
39,643
9,439
(2,991)
(231)
49,068
(16,181)
(325)
78,422
72,205
The Group typically provides a two-year warranty period to customers on products sold. Warranty expenses
charged to the Statement of Profit or Loss and Other Comprehensive Income amounted to €9,439 (2017: €49,068)
corresponding to a warranty cost percentage of 0.2% (2017: 0.6%) relative to the prior two years revenue. However,
due to the early business stage of the Group and the uncertainty following this the Group has adopted a policy to
accrue a 4% provision based on the prior two years deliveries calculated with the cost of goods sold at the end of
the period.
29. Related Party Transactions
Jørgen Korsgaard Jensen and Johan Blach Petersen are directors and shareholders of Wavetouch Denmark A/S
(Wavetouch) and OPDI Technologies A/S (OPDI). Wavetouch has during the year rented office space from Windar
Photonics A/S, the amount payable during the year to Windar was €32,196 (2017: €36,512). There were amounts
outstanding at the year end to Wavetouch €72,853 (2017: €107,379). At the end of the year there were amounts
outstanding to OPDI of €31,426 (2017: € Nil).
Intercompany transactions
At 31 December 2018 there exist an intercompany loan between Windar Photonics PLC and its subsidiary
Windar Photonics A/S.
Windar Photonics PLC has a receivable at €974,624 (2017: €276,299). Interest added during 2018 amounts to
€28,512 (2017: €33,553).
The interest rate for 2018 is Libor 0.5% + 2.5% - equal to 3% p.a. (2017: Libor 0.5% + 2.5% - equal to 3% p.a.).
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Windar Photonics - Annual Report and Accounts 2018