Tiscali 2014 Annual Report Download - page 193

Independent auditors’ report
pursuant to Articles 14 and 16 of Italian Legislative Decree No. 39 dated 27 January 2010
To the shareholders of
Tiscali S.p.A.
1. We have carried out an audit on the consolidated financial statements, comprising the income
statement, statement of comprehensive income and statement of financial position, the cash flow
statement, the statement of changes in shareholders’ equity and the related explanatory notes, of
Tiscali S.p.A. and its subsidiaries the Tiscali Group" as of and for the year ended  December .
Tiscali S.p.A.’s directors are responsible for drafting the financial statements in compliance with the
International Financial Reporting Standards adopted by the European Union, as well as the provisions
issued by way of implementation of Article 9 of Italian Legislative Decree No. 38/2005. We are
responsible for the professional opinion expressed on the consolidated financial statements, based on
our audit.
2. Our audit was made in accordance with the audit standards and criteria recommended by Consob. In
accordance with such standards and criteria, we planned and performed our audit to obtain every
element necessary in order to determine whether the consolidated financial statements are materially
misstated and if such financial statements, taken as a whole, may be relied upon. An audit includes
examining, on a test basis, evidence supporting the balances and disclosures in the financial
statements, as well as assessing the appropriateness and suitability of the accounting standards
applied and the reasonableness of the estimates made by the directors. We believe that our audit
provides a reasonable basis for our professional opinion.
For the opinion on the previous year’s consolidated financial statements, whose balances are
presented for comparative purposes, please refer to our report dated 26 June 2014.
3. In our opinion, the consolidated financial statements of the Tiscali Group at 31 December 2014 are
compliant with the International Financial Reporting Standards adopted by the European Union, as
well as the provisions issued by way of implementation of Article 9 of Italian Legislative Decree No.
38/2005; they have therefore been prepared clearly in all the material aspects and provide a true and
fair view of the financial and equity position, the economic result and the cash flows of the Tiscali
Group for the year ended as of that date.
4. By way of disclosure, the following aspects are pointed out, more fully dealt with in the explanatory
notes:
a. as indicated in the section Assessment of the business as a going-concern and business
outlook, the Tiscali Group closed the year with a consolidated loss of EUR . million and a
consolidated equity deficit of EUR 168.8 million; furthermore, as of 31 December 2014, the
Tiscali Group had a gross financial debt of EUR 204.3 million and current liabilities greater
than current assets (non-financial) for EUR 108.9 million. The Directors describe the factors
which indicate the continuation of significant uncertainties linked to a situation of equity,
economic and financial imbalance into which the Group is headed, in the presence of gross
financial debt which is significant, subject to covenants and other contractual obligations.
In this context, the Directors reveal that during 2014, the Tiscali Group: