Annual Report 2010

r 2010 ANNUAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORTHE YEARENDED 31 DECEMBER2010 (in euros) 31 . COMMITMENTS AND CONTINGENCIES 31.1 . Environmental matters The Company's management believes that the Group complies with relevant existing legislation in all material respects. II is not expected that the Group may become liable to make significant payments relating to the environment in the future. 31.2. Capital expenditure The Group prepared a capital expenditure pian amounting to EUR 25 865 thousand for 2011, EUR 2 945 thousand of which is covered by contracts as al 31 December 2010. 31.3. Litigation and potential losses At present, the Group is involved in a number of legal cases and other disputes that arise as a result of ordinary business activities. In the accompanying consolidated financial statements, the Company recorded no provisions for litigation as the Company's management, based on the advice of its legal counsel, believes that the final outcome of the litigations is uncertain, and no material negative impact, individually or in aggregate, is anticipated on the Company's consolidated financial statements. 31.4. Emission rights During 2005, the EU-wide greenhouse gas emission rights trading scheme came into effect together with the Act on Emission Rights Trading passed by the Slovak Parliament in order to implement the related EU Directive in Slovakia. Under this legislation, the Company is required to deliver emission rights to the Slovak Environmental Office to offset actual greenhouse gas emissions. A similar obligation applies to the subsidiary ŽĎAS, a.s. in the Czech Republic. The Group 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 the Group has received adequate emission rights to cover its actual emissions. The Group 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 201 O by 30 April 2011. 32. EVENTS AFTER THE REPORTING PERIOD In February 2011 , the Company sold non-current assets of ZP Tažirny trub Svinov, spol. s r.o. , v likvidácii (subsidiary in liquidation) at an amount exceeding their net book value. In 2011 , the Company continues to redeem treasury shares; as at the preparation date of the financial statements the Company held 56 368 treasury shares. 33. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements were prepared and approved for release on 22 April 2011. 1