Annual Report 2010

r 2010 ANNUAL REPORT NOTES TO THE SEPARATE FINANCIAL STATEMENTS FORTHE YEARENDED 31 DECEMBER2010 (in euros) 30. RELATED PARTY TRANSACTIONS 30.1. Members of statutory and supervisory bodies Remuneration paid to the members ot the Company's Board ot Directors and Supervisory Board tor the year ended 31 December 2010 amounted to EUR 287 thousand (year ended 31 December 2009: EUR 277 thousand). Remuneration is included in personnel expenses. 30.2. Other related parties CPA s.r.o. is the parent ot ŽP. During 201 O, the Company entered into the following transactions with related parties: CPA s.r.o. - parent company Subsidiaries and joint ventures Fellow subsidiaries Associates Other related parties Receivables as at Payables as at Sales ot goods and 31 December 2010 31 December 2010 services in 2010 22 397 290 217 162 8 788 257 8 875 017 95 508 611 2 531 088 314 634 43 473 157 12 816 876 49 571 25 11 341 754 10006817 139 248 526 During 2009, the Company entered into the following transactions with related parties: CPA s.r.o. - parent company Subsidiaries and joint ventures Fellow subsidiaries Associates Other related parties Receivables as at Payables as at Sa les ot goods and 31 December 2009 31 December 2009 services in 2009 22 435 6 314 649 217 312 15 724 545 4 468 533 78 461 416 1 791 269 491 689 18 077 124 370 1 052 592 55 572 988 47911 ~~~~~~~- 17 539 607 12 327 463 96 859 335 Purchases ot goods and services in 201 O 147 613 54916850 106 892 19123137 5 503 74 299 995 Purchases ot goods and services in 2009 156 396 29 896 454 115 624 9795319 9 275 39 973 068 Transactions with the parent company represent advisory services, rental ot premises, and acquisition ot financial investments. Transactions with subsidiaries represent sales of ŽP products, finance leases, catering services, IT services, accommodation, leisure-time services and purchase of metal scrap. Transactions with associates mainly represent the purchase ot scrap. Transactions with joint ventures mainly represent transportation services. 31. COMMITMENTS AND CONTINGENCIES 31 .1. Environmental matters Management believes that the Company complies with the relevant existing legislation in all material respects. lt is not expected that the Company will become liable to make significant payments relating to the environment in the tuture. 31.2. Capital expenditure The Company prepared a capital expenditure pian for 2011 amounting to EUR 11 553 thousand, of which EUR 2 945 thousand is covered by contracts at 31December2010. 31 .3. Litigation and potential losses At present, the Company is involved in a number ot legal cases and other disputes that have arisen as a result ot ordinary business activities. lt is not expected that the disputes will have a significant negative impact, individually or jointly, on the accompanying separate financial statements. In the accompanying separate financial statements, the Company recorded no provisions tor litigation as the Company's management, based on the advice ot its legal counsel, believes that the final outcome ot the litigation is uncertain. 31.4. Emission rights During 2005, the European Union-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 9reenhouse gas emissions. ZP has opted to record emission rights received at 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 delivering emission rights for the period under review in 201 O by 30 April 2011. 32. POST BALANCE SHEET EVENTS In February 2011 , the Company sold non-current assets in the subsidiary (ZP Tažírny trub Svinov, spol. s r.o„ v likvidácii) for an amount exceeding their net book value. The Company continues to purchase treasury shares in 2011 , and as at the reporting date the Company held 56 368 treasury shares. 33. APPROVAL OF SEPARATE FINANCIAL STATEMENTS The separate financial statements were prepared and approved for release on 17 March 2011 . 1