Annual Report 2010

2010 ANNUAL REPORT INDEPENDENT AUDITOR'S REPORT Deloitte. Deloitte Audit s.r.o. Digital Park II, Einsteinova 23 851 01 Bratislava Slovak Republic Tel: +421 2 582 49 111 Fax: +421 2 582 49 222 deloitteSK@deloitteCE.com www.deloitte.sk Registered al the Municipal Court in Bratislava 1 Section Sro, File 4444/B ld. Nr.: 31 343 414 VAT ld. Nr.: SK2020325516 Železiarne Podbrezová a.s. INDEPENDENT AUDITOR'S REPORT To the Shareholders and Board of Directors of Železiarne Podbrezová a.s.: We have audited the accompanying consolidated financial statements of Železiarne Podbrezová a.s. and subsidiaries (the "Company"), which comprise the consolidated statement of financial position as at 31 December 2010, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Statutory Body's Responsibility far the Consolidated Financial Statements The Company's statutory body is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with lnternational Financial Reporting Standards as adopted by the EU, and for such interna! control as the statutory body determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated 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 about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers interna! control relevant to the Company's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's interna! control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the statutory body, as well as evaluating the overall presentation of the consolidated 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 financial position of Železiarne Podbrezová a.s. and subsidiaries as of 31 December 2010, and their financial performance and their cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU. Bratislava, 29 April 2011 ~~~~ /O Deloitte Audit s.r.o. Licence SKAu No. 014 Deloitte refers to one or more ot Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/sk/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Member of Deloitte Touche Tohmatsu Ing. Wolda K. Grant, FCCA Responsible auditor Licence SKAu No. 921 1 1