Annual report 2019

Železiarne Podbrezová a.s.: ROČNÁ SPRÁVA 2019 7 7 Notes to the Separate Financial Statements For the year ended 31 December 2019 (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 on1May 1992. TheCompany’s registeredseat is at Kolkáreň35, 976 81 Podbrezová, SlovakRepublic and its identificationnumbers areas 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 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 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 2019 to 31 December 2019 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 2018 financial statements The Company’s 2018 financial statements for the year ended 31 December 2018 were approved by the Annual General Meeting held on 24 June 2019. 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 (SectionSa, FileNo. 69/S). TheCompany’s consolidatedfinancialstatements are included intheconsolidatedfinancialstatements 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 2018. For expenses and revenues, comparatives for the previous reporting period, ie year ended 31 December 2018, 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 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), - 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 SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (IN EUROS)