Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 66 24 28 RELATED PARTY TRANSACTIONS 28.1 Members of statutory, supervisory and other bodies Remuneration paid to the members of the Group’s statutory, supervisory and other bodies for the year ended 31 December 2016 amounted to EUR 5 095 thousand (year ended 31 December 2015: EUR 3 675 thousand). Remuneration is included in personnel expenses. 28.2 Other related parties CPA s.r.o., Slovak Republic is the parent company of Železiarne Podbrezová a.s. During the year, the Group entered into the following transactions with related parties that did not represent consolidated entities in these consolidated financial statements: Purchases of goods and services in 2016 Payables as at 31 Dec 2016 Sales of goods and services in 2016 Receivables as at 31 Dec 2016 Parent company and ultimate owners 741 965 24 973 063 141 167 3 068 Fellow subsidiaries - - - - Other related parties 535 230 31 508 1 447 997 353 952 Total 1 277 195 25 004 571 1 589 164 357 020 Purchases of goods and services in 2015 Payables as at 31 Dec 2015 Sales of goods and services in 2015 Receivables as at 31 Dec 2015 Parent company and ultimate owners 1 107 374 25 431 565 228 494 26 171 Fellow subsidiaries 9 470 330 1 278 504 43 631 973 640 607 Other related parties 1 723 104 113 144 1 703 076 268 827 Total 12 300 808 26 823 213 45 563 543 935 605 Transactions with the parent company and ultimate owners mainly represent received borrowings, advisory services, and lease of premises. Transactions with fellow subsidiaries and other related parties mainly represent the sale of products of the Group, and transport services. 29 COMMITMENTS AND CONTINGENCIES 29.1 Environmental matters The Company’s management believes that the Group complies with the relevant existing legislation in all material respects. It is not expected that the Group may become liable to make significant payments relating to the environment in the future. 29.2 Capital expenditure The Group prepared a capital expenditure plan for 2017 amounting to EUR 11 622 thousand, of which EUR 2 255 thousand is contracted as at 31 December 2016. 29.3 Litigation and potential losses Atpresent, the Group is involved in anumber of legal cases and other disputes that arise as aresultofordinary business activities. The Group created aprovision for litigation against Pipex ItaliaS.p.A in the amountofEUR796thousand. The Groupdid not createaprovision forother Group litigations intheaccompanying consolidated financial statements, andbasedontheadviceof its legalcounsels,believesthatthe finaloutcomeofthe litigations is uncertain, and no material negative impact, individually or in aggregate, is anticipated on the Company’s consolidated financial statements. 29.4 Emission rights During 2005, the EU - wide greenhouse gas emission rights trading scheme came into effect together with the Act on Emission Rights Trading passed bytheSlovakParliament inorderto implementtherelatedEUDirective inSlovakia.Underthis legislation,theCompany isrequiredtodeliveremission rights to the Slovak Environmental Office to offset actual greenhouse gas emissions. The Group has opted to record emission rights received at a nominal amount, and does not record any asset or liability for actual emissions on the basis that the Group has received adequate emission rights to cover its actual emissions. The Group has an obligation to deliver emission rights for actual emissions. This obligation was fulfilled by the delivery of emission rights for the 2016 monitored period inMarch 2017. 29.6 Guarantee for loans provided to other entities TheGroupprovides itsassets as collateral for the liabilitiesof jointdebtorsŽP Informatikas.r.o.andŽIAROMAT a.s.under a loan agreement withSLSP up to EUR 5 million. The outstanding principal as at 31 December 2016 amounts to EUR 3 million. TheCompany’smanagementbelievesgiventhefinancialpositionsofŽPInformatikas.r.o.andŽIAROMATa.s.thatthesubsidiarieswillrepaythe loans, therefore the Group recorded no provision in the accompanying consolidated financial statements. 30 EVENTS AFTER THE REPORTING PERIOD From 31 December 2016 up to the issue date of the financial statements, there were no such events that would have a significant impact on the Group’s assets and liabilities, except for those resulting from the ordinary course of business operations. 31 APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements were prepared and approved for issue on 20 April 2017. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 (IN EUROS)