Annual report 2018

23 Železiarne Podbrezová a.s. ANNUAL REPORT 2018 23 ŽP has opted to recognise the allocated emission rights at a face value. In 2018, the Company received a pro rata share of emission rights but the Company’s emission production in 2018 exceeded this share. The difference in the amount of EUR 126 thousand is recognised in the income statement. The Company expects such development until the end of the 3rd trading period (2020) and, therefore, decided to purchase emission rights in the amount of EUR 648 600. ŽP has an obligation to deliver emission rights to cover produced emissions. This obligation was fulfilled by delivering emission rights for the monitored 2018 period in March 2019. 32.5 Guarantee for loans provided to other entities The Company provided its assets as collateral for the liabilities of joint debtors ŽP Informatika s.r.o. and ŽIAROMAT a.s. arising from a loan agreement with Slovenská sporiteľňa a.s. up to EUR 6 million. The outstanding principal as at 31 December 2018 amounts to EUR 4 270 154. Since the Company’s management believes based on the financial positions of ŽP Informatika s.r.o. and ŽIAROMAT a.s. that the subsidiaries will repay the loans, ŽP a.s. recorded no provision in the accompanying separate financial statements. 32.6 Bank guarantees The Company’s liabilities to Graftech Switzerland S.A. arising from the Graphite Electrode Supply Agreement dated 30 November 2017 are secured by a bank guarantee up to a total amount of EUR 1 675 850. The Company’s customs debt is secured by a bank guarantee of up to EUR 200 000 and customs debt from representing third parties by a bank guarantee for the approved guarantor of up to EUR 50 000. The Company issued blank promissory notes to secure both guarantees. 33 POST-BALANCE SHEET EVENTS From 31 December 2018 to the preparation date of the financial statements, there were no such events that would have a significant impact on the Company’s assets and liabilities, except for those resulting from the ordinary course of business operations. 34 APPROVAL OF SEPARATE FINANCIAL STATEMENTS The separate financial statements were prepared and approved for release on 8 March 2019. NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 (IN EURO)