Annual Report 2008

NOTES TO THE SEPARATE FINANCIAL STATEMENTS For the year ended 31 December 2008 (in thousands of SKK) ŽP has opted to record emission rights received al a nominal amount and does not record any asset or liability for actual emissions on the basis that ŽP has received adequate emission rights to cover its actual emissions. ŽP has an obligation to deliver emission rights for actual emissions. This obligation will be fulfilled by delivery of emission rights for the period under review in 2008 by 30 April 2009. The Company acquired the 2008 emission rights (period under review) in April 2008. 32. POST BALANCE SHEET EVENTS 32.1. Euro Conversion As at 1 January 2009, the Slovak Republic entered the eurozone and the Slovak crown (SKK) was replaced by the euro (EUR). As a result, the Company converted its bookkeeping to EUR as at this date, and the financial statements in 2009 and subsequent years will be prepared in EUR. Comparable data will be translated using the exchange rate of EUR/SKK 30.1260. 32.2. Change of Legal Form and Decrease of Registered Capital in the Subsidiary ŽP-lnvest (subsidiary) changed its legal form from a limited liability company to a joint stock company with effect from 12 March 2009. As at 12 March 2009, Železiarne Podbrezová a.s. (parent company) decreased the registered capital of ŽP-lnvest a.s. from SKK 65 200 thousand to SKK 37 055 thousand. 32.3. Change of Repayment Schedule The Company reached an agreement with CPA s.r.o. on the modification of the repayment schedule in respect of the non– current liability arising from the acquisition of the subsidiary 2P EKO QELET a.s. in 2007. Some instalments were rescheduled to 2010. 32.4. Re-assessment of the Subsld lary's Productlon Actlvltles In connection with the current economic conditions. the Company decided to reassess and curtail for a limited period of time the production activities of its subsidiary 2P Tažirny trub Svinov spol. s r.o. The decision was adopted in March 2009 and ii will come into force in the following months. As at 31 December 2008, the registered capila! of ŽP Tažirny trub Svinov spol. s r.o. amounted to SKK 102 171 thousand, the investment was recognised in the Company's Balance Sheet in the amount of SKK 51 989 thousand. 32.5. Staff Reductions The Company adopted a decision on the gradual partia! reduction of its headcount in 2009. 33. APPROVAL OF SEPARATE FINANCIAL STATEMENTS The separate financial statements were prepared and approved for release on 25 March 2009.