Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 7 7 Notes to the Separate Financial Statements For the year ended 31 December 2015 (in euros) 1 GENERAL INFORMATION 1.1 Description of the Company Železiarne Podbrezová a.s. (hereinafter the “Company” or “ŽP”) is a joint stock company that was incorporated on 21 April 1992 and established on 1 May 1992. The Company’s registered seat is at Kolkáreň 35, 976 81 Podbrezová, Slovak Republic and its identification numbers are as follows: IČO:31 562 141; DIČ: 2020458704. The Company produces steel pipes for industrial purposes, which are mainly sold to customers in Europe. 1.2 Structure of shareholders and their shares in the share capital As at 31 December 2016, the Company’s shares were held by CPA s.r.o. (78.31%), HOLD s.r.o. (2.1%), and other minority shareholders (19.59%). The shareholders’ voting rights equal their ownership interest in the share capital. The Company’s shares are certified registered shares and have not been publicly tradable since 2007. 1.3 Members of Company's bodies Supervisory Board Board of Directors Ing. Ján Banas - Chairman Ing. Jozef Marčok - Deputy Chairman Luigi Cuzzolin - Member Ing. Milan Mutiš - Member Pavol Koštial - Member Ing. Ľudovít Ihring - Member Ing. Tomáš Ihring - Member Ing. Vladimír Zvarík - Member Soňa Lopušná - Member Ing. Vladimír Soták - Chairman Ing. Marian Kurčík - Deputy Chairman Ing. Július Kriváň - Member Ing. Mária Niklová - Member Ing. Ľubor Schwarzbacher - Member Ing. Miloš Dekrét - Member Ing. Vladimír Soták Jr - Member 1.4 Unlimited guarantee The Company is not a partner in any unlimited liability company. 1.5 Legal basis for preparing the financial statements These financial statements are the annual separate financial statements of Železiarne Podbrezová a.s. as prepared under Act No. 431/2002 Coll. on Accounting, as amended. The separate financial statements were prepared for the reporting period from 1 January 2016 to 31 December 2016 in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). These financial statements also represent the statutory financial statements of the Company. The financial statements have been presented for general use. 1.6 Approval of the 2015 financial statements The Company’s 2015 financial statements for the year ended 31 December 2015 were approved by the ordinary General Meeting held on 27 June 2016. 1.7 Consolidated financial statements The Company also prepares consolidated financial statements, which are available at the Company’s registered seat and at the Registry Court in Banská Bystrica (Section Sa, File 69/S). The Company’s consolidated financial statements are included in the consolidated financial statements of the parent company, i.e. CPA s.r.o. The parent company’s consolidated financial statements are available at the Company’s registered seat and at the Registry Court in Banská Bystrica (Skuteckého 28, 975 59). The consolidated financial statements provide a comprehensive view on the operation of the Company and its subsidiaries. The business names of subsidiaries and joint ventures are specified in Note 7 1.8 Comparatives As comparatives for the previous reporting period relating to assets, liabilities, and equity items, the financial statements present data reflecting balances as at 31 December 2015. For expenses and revenues, comparatives for the previous reporting period, ie year ended 31 December 2015, were used. The Company decided to restate the statement of cash flows in the interests of more accurate presentation. 2 ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS 2.1. Adoption of new and revised International Financial Reporting Standards The Company has adopted all the new standards and interpretations issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of the IASB as adopted by the European Union that are relevant to its operations and are effective for the reporting periods beginning on 1 January 2016. These are the following standards and interpretations: - Amendments to IFRS 10 “Consolidated Financial Statements”, IFRS 12 “Disclosure of Interests in Other Entities” and IAS 28 “Investments inAssociatesandJointVentures” – InvestmentEntities:ApplyingtheConsolidationException – adoptedbytheEUon22September2016(effective for annual periods beginning on or after 1 January 2016), - Amendments to IFRS 11“JointArrangements” – Accounting for Acquisitionsof Interests inJointOperations – adopted by the EU on 24November 2015 (effective for annual periods beginning on or after 1 January 2016), - Amendments to IAS 1 “Presentation of Financial Statements” – Disclosure Initiative – adopted by the EU on 18 December 2015 (effective for annual periods beginning on or after 1 January 2016), NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 (IN EUROS)