Annual_report_2006

A N N U A L R E P O R T 42 REPORT ON THE ACTIVITY OF THE SUPERVISORY BOARD The Members of the Supervisory Board have full confidence that the information which they received during 2006 and in the subse- quent period in connection with the review of annual results is sufficient for the Super- visory Board to reach the conclusion that the activity of the Board of Directors and the business activities of the Company were in compliance with law, bylaws, and the General Meeting resolutions. Each month, the members of the Super- visory Board received from the Board of Directors a regular monthly written report on the status of the Company’s business activi- ties and on assets compared to the anticipat- ed development. Over the reviewed period, the members of the Supervisory Board received sufficient current information about the principal intentions of the commercial management of the Company for the future period, and about the expected development of the Company’s assets, finances and rev- enues in order to satisfy themselves that the Board of Directors pays necessary attention to the growth of the Company’s profitability and development. Based on the results of supervisory activities, the Supervisory Board has stated that no material misconduct of duties was identified and business acti- vities were perfor- med in line with the interests of the Company and all its shareholders. The Board of Directors fulfilled the resolutions of the General Meeting without any unnecessary delay; its function within the Company was conducted with due professional care. The Supervisory Board appointed an auditor, Deloitte Audit s.r.o., to audit both separate and consolidated financial statements. After the review of the separate and consolidated financial statements for the year ended 31 December 2006 prepared in accordance with International Financial Reporting Standards as adopted by the European Union, and following the comprehension of the Deloitte Audit s.r.o. reports on these finan- cial statements, the Board came to the con- clusion that no significant facts are known which would prevent the approval of the annual financial statements. The Supervisory Board reviewed the pro- posed distribution of profit as presented by the Board of Directors. The proposed distri- bution assumes dividends and royalties payouts. In Podbrezová, 28 May 2007 Ing. Ján Banas Chairman of the Supervisory Board Dear Shareholders, The Supervisory Board recommended that the General Meeting approves the separate and consolidated financial statements, and the proposed distribution of profit as presented by the Board of Directors.