Annual Report 2004

Ž E L E Z I A R N E P O D B R E Z O V Á ANNUAL REPORT 2004 36 REPORT OF THE SUPERVISORY BOARD Dear shareholders. In 2004, the Supervisory Board was focused on control in favor of all shareholders with a main interest in Company's value and development. The Supervisory Board proudly states that the Board of Directors, as in previous years, deliberately and responsibly solved all important issues to achieve Company's liquidity, favorable development, profitability and potential devel- opment for business facilities in the future. The Supervisory Board did not identify any material misconduct in terms of due behavior or economic management and the business issues were managed in compliance with the instructions of the general meeting, with the bylaws of the Company and with the law. The Supervisory Board considers the results achieved in 2004 and the increase in the Company's prosperity as successful. After reviewing the individual financial statements and the consolidated financial statements prepared as of 31 December 2004, the Supervisory Board concluded that the accounting of the Company was carried out in line with the respective laws. Audit of the individual financial statement was conducted by BDR, spol. s r. o., Banská Bystrica, and an audit of the consolidated financial statement was conducted by KPMG Slovensko spol. s r. o. No misstatements of material nature were identified that would prevent from the annual financial statements to be approved. After reviewing the Report of the Board of Directors on principal business plans in the future, the Supervisory Board discussed the respective proposal on the distribution of available profit. The Supervisory Board recommended the general meeting to approve the individual financial statement, the consolidated financial statement and the proposed distribution of retained profit. One change was made to the structure of the Supervisory Board in 2004. Ing. Vladimír Soták jr. was elected as a member of the Supervisory Board by the general meeting held on 25 June 2004. He has replaced Ing. Pavol Šimo. Members of the Supervisory Board were elected by employees actively participated in the Supervisory Board's work. In Podbrezova, 10 May 2005 Ing. Ján Banas Chairman of the Supervisory Board