Annual report 2018

7 Železiarne Podbrezová a.s. ANNUAL REPORT 2018 7 Notes to the Separate Financial Statements For the year ended 31 December 2018 (in euro) 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 1May 1992.The Company’sregistered seat is at Kolkáreň 35, 976 81Podbrezová, Slovak Republic and its identification numbers are asfollows: 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 2018, the Company’s shares were held by CPA s.r.o. (79.34%) and other minority shareholders (20.66%). 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. Vladimír Soták – Chairman Ing. Jozef Marčok – Deputy Chairman Ing. Marian Kurčík – Deputy Chairman Luigi Cuzzolin – Member Ing. Miloš Dekrét – Member Ing. Ľudovít Ihring – Member Ing. Július Kriváň – Member Ing. Tomáš Ihring – Member Ing. Mária Niklová – Member Pavol Koštial – Member Ing. Vladimír Soták, Jr. – Member Soňa Lopušná – Member Ing. Milan Srnka, PhD. – Member Ing. Jaroslav Romančík – Member Ing. Vladimír Zvarík – 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 2018 to 31 December 2018 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 2017 financial statements The Company’s2017 financial statementsfor the year ended 31 December2017 were approved by the ordinary General Meeting held on 25 June 2018. 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, ie 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 2017. For expenses and revenues, comparatives for the previous reporting period, ie year ended 31 December 2017, were used. 2 ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Company adopted all new and revised standards and interpretations issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of IASB as endorsed by the European Union that are relevant to its operations and are effective for the reporting periods beginning on 1 January 2018. Initial application of the new amendments to the existing standards effective for the current reporting period The following new standards, amendments to the existing standards, and the interpretation issued by the International Accounting Standards Board (IASB) are effective for the current reporting period: - IFRS 9 “Financial Instruments” issued on 24 July 2014 is IASB’s replacement of IAS 39 “Financial Instruments: Recognition and Measurement”. IFRS 9 includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting. Classification and Measurement – IFRS 9 introduces a new approach for the classification of financial assets, which is driven by cash flow characteristics and the business model in which an asset is held. This single, principle - based approach replaces the existing rule - based requirements under IAS 39. The newmodel also results in a single impairment model being applied to all financial instruments. NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 (IN EURO)