Annual Report 2003

REPORT OF THE SUPERVISORY BOARD 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 36 Dear Shareholders. The Supervisory Board has throughout the year continuously and thoroughly been informed about the conduct of the Board of Directors, about how the company proceeds, and on other material issues that may have affected significantly the activity of the company, such as the state of assets or the liquidity. A member of Supervisory Board attended every meeting of the board of directors. We focused on the business issues of the company, on whether or not this was being managed in compliance with the instructions of the general assembly, with the bylaws of the company and with law. The Supervisory Board did not disclose any material misconduct in terms of due behaviour or economic management. After reviewing the individual income statement and the consolidated income statement prepared as of 31.12.2003, the Supervisory Board concluded that the accounting of the company was carried out in line with the respective laws. Audits of the individual income statement are conducted by BDR, spol. s r. o., Banská Bystrica, and an audit of the consolidated income statement was conducted by KPMG Slovensko spol. s r. o. No mis-statements of material nature were identified preventing the annual income statements to be approved. After reviewing the Report of the Board of Directors on business and state of assets of the company, the Supervisory Board discussed the respective proposal on the appropriation of available earnings. The Supervisory Board recommended that the General Assembly approve the individual income statement, the consolidated income statement and the proposed appropriation of retained earnings. The Supervisory Board was structured as follows: four members elected by the general assembly, two members elected by the employees. During its meeting held 15. 12. 2003 the Supervisory Board acknowledged the abdication by the vice chairman of the board, his position as a member of the Supervisory Board. Pursuant to bylaws, his membership expires on the date when the general assembly accepts his revocation from the respective position. In Podbrezová 31. 5. 2004 Ing. Ján Banas Chairman of the Supervisory Board