Annual Report 2008

INDEPENDENT AUDITOR'S REPORT Deloitte. Železiarne Podbrezová a.s. INDEPENDENT AUDITOR'S REPORT To the Shareholders and Board of Directors of Železiarne Podbrezová a.s.: Deloitte Audit s.r.o. Apollo BC, Prievozská 2/B Bratislava 821 09 Slovak Republíc Tel: +421 2 582 49 111 Fax: +421 2 582 49 222 delo ítteSK@deloitteCE.com www.deloitte.sk Registered at the Municipal Court in Bratislava 1 Sectíon Sro, File 4444/B ld. Nr.: 31 343 414 VAT ld. Nr.: SK2020325516 1. We have audited the accompanying consolidated financial statements of Železiarne Podbrezová a.s. and its subsidiaries ("the Company"), which comprise the balance sheet as at 31 December 2008 and the statement of profit and !oss, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes. The Board of Directors' Responsibillty for the Financial Statements 2. The Board of Directors is responsible for the preparation and fair presentation of these consolidated financial statements in compliance with the Slovak Act on Accounting and in accordance with International Financial Reporting Standards as adopted by the European Union. This responsibility includes: designing, implementing and maintaining interna! control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility 3. Our responsibility is to express an opm1on on these financial statements based on our audit. We conducted our audit In accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and pian and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the audltor considers interna! control relevant to the entity's preparation and fair presentation of the financlal statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an oplnion on the effectiveness of the Company's interna! control. An audit also includes evaluating the appropriateness of accountlng policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overal! presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financlal position of Železiarne Podbrezová a.s. and subsidiaries as of 31 December 2008, and its financial performance and cash flows for the year then ended in compliance with the Slovak Act on Accounting and in accordance with Internatlonal Financial Reporting Standards as adopted by the European Union. Bratislava, 25 March 2009 Deloitte Audit s.r.o. Licence SKAu No. 014 Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member f~rms, each of whích is a legally separate and independent entity. Please see www.delo1tte.com/sk/about far a detailed description of the fegal structure of Oeloitte Touche Tohmatsu and its member firms. Member of Deloitte Touche Tohmatsu ar.>-J~~ - t:~ . Zuzana Letková, FCCA esponsible auditor Licence SKAu No. 865