CONSOLIDATED FINANCIAL STATEMENTS / MANAGEMENT'S DISCUSSION AND ANALYSIS
Fourth quarter ended March 31, 2023
CONSOLIDATED FINANCIAL STATEMENTS
For the fiscal years ended March 31, 2023 and 2022
TABLE OF CONTENTS | ||
Management's report | ||
Independent Auditor's report | ||
Consolidated financial statements | 8 | |
Notes to the consolidated financial statements | 13 | |
Note 1 | Nature of activities and corporate information | 13 |
Note 2 | Basis of preparation | 13 |
Note 3 | Significant accounting policies | 14 |
Note 4 | Significant accounting estimates and assumptions | 21 |
Note 5 | Divestiture and purchase of minority interest | 23 |
Note 6 | Sales | 23 |
Note 7 | Government assistance | 23 |
Note 8 | Cost of sales, selling and administrative expenses | 24 |
Note 9 | Other expenses (gains) | 24 |
Note 10 | Net financial expenses | 24 |
Note 11 | Earnings per share | 25 |
Note 12 | Inventories | 25 |
Note 13 | Derivative financial instruments | 26 |
Note 14 | Other assets | 26 |
Note 15 | Property, plant and equipment | 27 |
Note 16 | Finite-lifeintangible assets | 29 |
Note 17 | Goodwill | 30 |
Note 18 | Accounts payable and accrued liabilities | 31 |
Note 19 | Provisions | 31 |
Note 20 | Long-termdebt | 31 |
Note 21 | Other liabilities | 33 |
Note 22 | Issued capital | 33 |
Note 23 | Accumulated other comprehensive income | 35 |
Note 24 | Income taxes | 36 |
Note 25 | Pension and other retirement benefit plans | 37 |
Note 26 | Commitments and contingencies | 40 |
Note 27 | Net change in non-cashitems | 41 |
Note 28 | Geographic information | 41 |
Note 29 | Executive compensation | 41 |
Note 30 | Financial instruments | 42 |
Note 31 | Financial risk management | 42 |
Note 32 | Capital risk management | 45 |
HÉROUX-DEVTEKINC. - Fiscal 2023 Consolidated Financial Statements - 3
MANAGEMENT'S REPORT
The accompanying consolidated financial statements and Management's Discussion and Analysis ("MD&A") of Héroux-Devtek Inc. (the "Corporation") are the responsibility of management and have been reviewed and approved by its Board of Directors. The accompanying consolidated financial statements have been prepared by management in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The MD&A has been prepared in accordance with the requirements of Canadian securities regulators. The consolidated financial statements and MD&A include items that are based on best estimates and judgments of the expected effects of current events and transactions. Management has determined such items on a reasonable basis in order to ensure that the consolidated financial statements and MD&A are presented fairly in all material respects. All figures presented in these consolidated financial statements are expressed in thousands of Canadian dollars unless otherwise indicated.
Héroux-Devtek Inc.'s Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") have designed disclosure controls and procedures ("DC&P"), or have caused them to be designed under their supervision, to provide reasonable assurance that material information related to the Corporation has been made known to them and has been properly disclosed or submitted by it under applicable securities legislation has been recorded, processed, summarized and reported within the time periods specified in securities legislation. The Corporation's CEO and CFO have also designed internal controls over financial reporting ("ICFR"), or caused them to be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with IFRS.
Héroux-Devtek Inc.'s CEO and CFO have also evaluated the effectiveness of such ICFR and DC&P as at the end of fiscal year 2023, or caused them to be evaluated under their supervision. As at March 31, 2023, management has concluded that the ICFR and DC&P were effective based on this evaluation, and had no material weaknesses. However, due to their inherent limitation, certain misstatements may not be prevented or detected by ICFR.
Héroux-Devtek Inc.'s CEO and CFO have provided a certification related to Héroux-Devtek Inc.'s annual disclosure documents to the Canadian Securities Administrators in accordance with Regulation 52-109, including the consolidated financial statements and MD&A.
The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the consolidated financial statements and MD&A. The Board of Directors carries out this responsibility principally through its Audit Committee. The Audit Committee is appointed by the Board of Directors and consists entirely of independent and financially literate directors.
The Audit Committee meets periodically with management, as well as with the external auditors, to review the consolidated financial statements, the external auditors' report, MD&A, auditing matters and financial reporting issues, to discuss ICFR and DC&P, and to satisfy itself that each party is properly discharging its responsibilities. In addition, the Audit Committee has the duty to review the appropriateness of the accounting policies and significant estimates and judgments underlying the consolidated financial statements as presented by management, and to review and make recommendations to the Board of Directors with respect to the fees of the external auditors. The Audit Committee reports its findings to the Board of Directors for its consideration when it approves the consolidated financial statements and MD&A for issuance to Shareholders.
The consolidated financial statements have been audited by Ernst & Young LLP, the external auditors, in accordance with Canadian generally accepted auditing standards on behalf of the Shareholders. The external auditors have full and free access to the Audit Committee to discuss their audit and related matters.
Martin Brassard | Stéphane Arsenault, CPA |
President and Chief Executive Officer | Vice-President and Chief Financial Officer |
May 17, 2023 |
4 - HÉROUX-DEVTEKINC. - Fiscal 2023 Consolidated Financial Statements
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS OF HÉROUX-DEVTEK INC.
Opinion
We have audited the consolidated financial statements of Héroux-Devtek Inc. and its subsidiaries (the Group), which comprise the consolidated balance sheets as at March 31, 2023 and 2022, and the consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of changes in shareholders' equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For the matter below, our description of how our audit addresses the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying consolidated financial statements.
HÉROUX-DEVTEKINC. - Fiscal 2023 Consolidated Financial Statements - 5
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Heroux-Devtek Inc. published this content on 18 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 May 2023 11:08:04 UTC.