Annual Report 2003

REPORT BY THE BOARD OF DIRECTORS ANNUAL REPORT Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 3 21 ASSETS AND FINANCIAL MANAGEMENT Assets and funds While in 2002 assets increased significantly by 464 721 thousand SKK funded, mainly by extending debt of the company, in 2003 these dropped by a total of 368 307 thousand SKK, i.e., their value was cut by 6 %. Such change was reflected positively on the company and payables were reduced. The ratio of external funds to total liabilities and equity was expressed by 48,10 %, i.e. it decreased by 1,77 % compared with 2002. Non-current assets dropped by 45 465 thousand SKK and current assets by 245 819 thousand SKK. Of this, most dramatic in trade receivables – by 211 942 thousand SKK. Accrued costs dropped significantly by 74 051 thousand SKK, as a result of reduced leasing payables. Unlike in 2002, a sound restructure of non-current financial assets has been made, mainly due to the sale of part of the share capital held in Tále a.s. On the other hand, other long-term shares have been extended as a result of share purchase from SLAVIA CAPITAL Group, a.s. The purpose of the purchase of a strong financial group is to share a common interest of intensifying the influence in the Czech Republic. Accrued liabilities decreased by 86 300 thousand SKK due to reserves released for exchange rate losses and doubtful accounts. All this resulted from modified accounting methods applied. Provisions +7 929 thous. SKK +9,65 % Non-current liabilities –79 692 thous. SKK –9,93 % Current liabilities –134 756 thous. SKK –17,40 % thereof: trade liabilities –145 795 thous. SKK –22,66 % Bank loans and financial assistance –72 235 thous. SKK –6,00 % Liabilities and equity have decreased in 2003, notably in payables by 278 754 thousand SKK. The equity has not significantly changed. 100 33,08 % 61,60 % 35,24 % 58,44 % 80 60 40 20 0 2003 % 2002 Year 100 48,10 % 51,71 % 49,87 % 48,45 % 80 60 40 20 0 2003 % 2002 Year Current assets Non-current assets Liabilities Equity Asset structure Equity and liabilities Dynamics of liabilities over the two-year period: