Annual report 2019

51 Železiarne Podbrezová a.s.: ANNUAL REPORT 2019 7 Notes to the Consolidated Financial Statements For the year ended 31 December 2019 (in euros) 1 GENERAL INFORMATION 1.1 Description of the Company ŽeleziarnePodbrezováa.s.(hereinafteralsothe“Company”or“ŽP”) isa jointstockcompanythatwas incorporatedon21April1992andestablished on 1 May 1992. The Company’s registered seat is at Kolkáreň 35, 976 81 Podbrezová, Slovakia (Company ID: 31 562 141, Tax ID: 2020458704). The Company produces steel pipes for industrial purposes, which are mainly sold to customers in Europe. The Company’s consolidated financial statementsfortheyear ended31December 2019comprisetheCompanyand itssubsidiaries(togetherreferredtoasthe“Group”),andtheGroup’s share in a joint venture. The Group is active in the production and sale of steel pipes, machine - industry production, and tourism (see Note 3c). 1.2 Structure of shareholders and their shares in registered capital As at 31 December 2019, the Company’s shares were held by CPA s.r.o. (79.42%) and other minority shareholders (20.58%). The shareholders’ voting rights equal their ownership interest in the registered capital. The Company’s shares are certified registered shares and have been publicly non - 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. Ľudovít Ihring – Member Ing. Tomáš Ihring – Member Pavol Koštial – Member Soňa Lopušná – Member Ing. Jaroslav Romančík – Member Ing. Vladimír Zvarík – Member Ing. Vladimír Soták – Chairman Ing. Marian Kurčík – Deputy Chairman Ing. Miloš Dekrét – Member Ing. Július Kriváň – Member Ing. Mária Niklová – Member Ing. Vladimír Soták, Jr. – Member Ing. Milan Srnka, PhD. – Member 1.4 Unlimited guarantee The Company is not a partner to any unlimited liability company. 1.5 Legal basis for preparing the financial statements These financial statements are the annual consolidated financial statements of ŽP and its subsidiaries as prepared under Act No. 431/2002 Coll. on Accounting, as amended. The consolidated financialstatements were prepared for the reporting period from 1 January 2019 to 31 December 2019 in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). The financial statements are intended for general use. 1.6 Approval of the 2017 Financial Statements On 24 June 2019, the General Meeting approved the consolidated financial statements of Železiarne Podbrezová a.s. for the year ended 31 December 2018. 1.7 Consolidated financial statements of the parent company The Company’s consolidated financial statements are included in the consolidated financial statements of the parent company, CPA s.r.o. The consolidated financial statements of CPA s.r.o. are available at the Company’s registered seat (Kolkáreň 35, Nový závod, 976 81 Podbrezová) and at the Registry Court in Banská Bystrica (Skuteckého 28, 975 59). 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 of 31 December 2018. For expenses and revenues, comparatives for the previous reporting period, ie year ended 31 December 2018, were used. 2 ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Group adopted all new and revised standards and interpretations issued by the International Accounting Standards Board (“IASB”) andthe InternationalFinancialReporting Interpretations Committee(“IFRIC”) of IASBas endorsedby theEuropeanUnionthat arerelevant to its operations and are effective for the reporting periods beginning on 1 January 2019. Initial application of new and amended IFRS standards effective for the current reporting period The following new standards, amendments to the existing standards and new interpretation issued by the International Accounting Standards Board (IASB) and adopted by the EU are effective for the current reporting period: - IFRS 16 “Leases” – adopted by the EU on 31 October 2017 (effective for annual periods beginning on or after 1 January 2019), Whenapplying IFRS 16,theGroupusedamodifiedapproach.TheGroupdidnot restatecomparabledata anddiscloseddata for theprevious period which is in compliance with IAS 17. The Group applied a single discount rate to a portfolio of leases with reasonably similar characteristics. By applying a prudence principle, the Group assessed leases whose conditions comprise an option to extend or terminate a lease. For contracts concluded for an indefinite period, the Group assessed the probable duration of such contracts. As aresult of theapplicationof IFRS16 “Leases”,theamountsrecognised inthebalancesheet inrespect of non - currenttangibleassetsandfinancial liabilities increased by EUR 5 254 thousand as at 1 January 2019. - Amendments to IFRS 9 “Financial Instruments” – Prepayment Features with Negative Compensation – adopted by the EU on 22 March 2018 (effective for annual periods beginning on or after 1 January 2019), - Amendments to IAS 19 “Employee Benefits” – Plan Amendment, Curtailment or Settlement – adopted by the EU on 13 March 2019 (effective for annual periods beginning on or after 1 January 2019), NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (IN EUROS)