Budapest Stock Exchange fined E-Star Alternative HUF 0.3m (€ 1,000) for infringing BSE Rules. The reason for the sanction is that E-Star Alternative has not published yet its FY11 financial report.
E-Star communicated earlier that the reason for the delay is that the firm’s auditor requires some changes to comply with IFRS standards. In case of the ESCO-projects, the built-in assets were presented as “fixed assets” in the Company’s IFRS statements. The concerned assets should have been presented similarly to a closed-end financial leasing, which was provided by the Company to its clients.
According to an earlier announcement, the modifications do not effect the realized profit during the project’s lifecycle, the valuation of the projects, or tax liabilities according to relevant regulations. The fact of the fine is alone a neutral news, however the fact of missing FY11 reports is still negative. Without having audited financial statements, we do not believe the company would be able to get bank financing to refinance maturing bonds. The biggest issues are still liquidity situation and the approaching bond refinancing in October.