výroční zpráva 2010 annual report

Transcription

1 výroční zpráva 2010 annual report

2

3 annual report IMOS Brno, a.s english version

4 Contents Chairman s introduction, company bodies and profile Human resources, turnover and organisational structure Balance sheet Profit and loss statement Cash flow statement Appendix to the financial statement (economic year 2010) Auditor s report annual report 2010

5 Introduction made by the Chairman of the Board of Directors and Managing Director Dear business partners, dear colleagues, ladies and gentlemen, It is my pleasure to take this opportunity to inform you, through this annual report, about the results of the Company IMOS Brno, a.s. achieved over the past financial year. I am pleased to say that the overall results presented in this annual report imply that the Company IMOS Brno, a.s. has remained, in the eyes of investors, a landmark of quality and well completed work. Owing to the achieved results, it may also be said that the Company has remained on the top of the Czech building market. I am fully aware of the fact that the good results of financial year 2010 are largely due to everyday hard work of the staff of the Company IMOS Brno, a.s. Therefore, I would like to make use of the introduction and thank all of them for well-performed work. I would also like to thank to all our customers and business partners for truly correct business relations. Dear business partners, ladies and gentlemen, I am very pleased with your interest in our annual report and I wish all of us excellent cooperation in the future. I wish all of us the very success in financial year Ing. Oldřich Štercl Chairmain of the Board of Directors and Managing Director Basic data concerning the company and company bodies Name: IMOS Brno, a.s. Head Office: Olomoucká 174, Brno Registered at: Commercial Register at the Regional Court in Brno, section B, insert 2211 Registration date: Company Registration No.: VAT No.: CZ Phone: , Fax: , Legal form: Joint-stock company Statutory body: Board of Directors Registered capital: 205,000,000 CZK Shareholder with over 20% share: IMOS holding, a.s. Shares: 204 registered shares at a nominal value of 1,000,000 CZK 2 registered shares at a nominal value of 500,000 CZK BOARD OF DIRCTORS Ing. Oldřich Štercl Chairman of the Board of Directors and Managing Director Ing. Jan Sniegon Vice Chairman of the Board of Directors and Ostrava Branch Director Ing. Milan Karásek Member of the Board of Directors and Civil Engineering Brno Branch Director Ing. Robert Suchánek Member of the Board of Directors and Water Management Structures and Road Constructions Brno Branch Director SUPERVISORY BOARD Ing. Jiří Rulíšek Chairman of the Supervisory Board Ing. Radomír Ivan Sigmund Vostal Member of the Supervisory Board Ing. Ivan Radomír Sigmund Vostal Member of the Supervisory Board Company profile A) Civil engineering Industrial plants, Shopping shopping centres, civil Civil facilities B) Water management structures Sewerage systems, waste water treatment plants, water ducts, and water course management structures Complete complete networks of technical infrastructure, extensive earthwork C) Road construction Expressways, roads, bridges, and engineering structures D) Design E) Road development and accredited testing laboratory annual report

6 Human resources and turnover The Company has always paid extensive care and attention to appointing its staff. It focuses on hiring top professionals, while aiming at supporting them in broadening their specialist skills and in their professional growth, so that they are able to satisfy the investor s needs and requests. This is also demonstrated in the ever-growing number of authorised engineers or technicians employed at our Company (47 staff at present). The following chart shows the average number of employees over the past years. The second table represents the development of company s turnover within a last decade. Summary of average annual number of employees (total) rok Turnover (in bilion CZK) rok Organisational structure IMOS Brno, a.s. Board of Directors Managing Director Slovakia Branch Legal Services (external) Brno Branch Civil Engineering Business Department Brno Branch Water Management and Road Structures Road Development Division Department of Purchases and Services Brno Technical Department Brno Ostrava Branch Finance and Administration Department 4 annual report 2010

7 Balance sheet Reference Assets Row Current accounting period Previous period a b c Gross 1 Adjustment 2 Net 3 Net 4 TOTAL ASSETS (r ) A. Receivables from capital subscriptions B. Long-term fixed assets (r ) B. I. Long-term intangible assets (r. 05 to 12) B. I. 1. Incorporation expenses B. I. 2. Research and development B. I. 3. Software B. I. 4. Valuable rights B. I. 5. Goodwill B. I. 6. Other intangible fixed assets B. I. 7. Intangible fixed assets under construction B. I. 8. Advance payments for intangible fixed assets B. II. Tangible fixed assets (r. 14 to 22) B. II. 1. Lands B. II. 2. Constructions B. II. 3. Equipment B. II. 4. Perennial crops B. II. 5. Breeding and draught animals B. II. 6. Other tangible fixed assets B. II. 7. Tangible fixed assets under construction B. II. 8. Advance payments for tangible fixed assets B. II. 9. Adjustment to acquired assets B. III. Long-term financial assets (r. 24 to 30) B. III. 1. Shares in controlled and managed organizations B. III. 2. Shares in accounting units with substantial influence B. III. 3. Other securities and shares B. III. 4. Loans to controlled and managed organizations and to accounting unit with substantial influence B. III. 5. Other financial investments B. III. 6. Financial investments acquired B. III. 7. Advance payments for long-term financial assets C. Current assets (r ) C. I. Inventory (r. 33 to 38) C. I. 1. Material C. I. 2. Work in progress and semi-products C. I. 3. Finished products C. I. 4. Animals C. I. 5. Merchandise C. I. 6. Advance payments for inventory C. II. Long-term receivables (r. 40 to 47) C. II. 1. Trade receivables C. II. 2. Receivables from controlled and managed organizations C. II. 3. Receivables from accounting units with substantial influence C. II. 4. Receivables from partners, cooperative members and association members C. II. 5. Long-term deposits given C. II. 6. Estimated receivables C. II. 7. Other receivables C. II. 8. Deferred tax receivable C. III. Short-term receivables (r. 49 to 57) C. III. 1. Trade receivables C. III. 2. Receivables from controlled and managed organizations C. III. 3. Receivables from accounting units with substantial influence C. III. 4. Receivables from partners, cooperative members and association members C. III. 5. Receivables from social security and health insurance C. III. 6. Due from state tax receivable C. III. 7. Short-term deposits given C. III. 8. Estimated receivables C. III. 9. Other receivables C. IV. Short-term financial assets (r. 59 to 62) C. IV. 1. Cash C. IV. 2. Bank accounts C. IV. 3. Short-term securities and ownership interests C. IV. 4. Short-term financial assets acquired D. I. Accruals (r. 64 to 66) D. I. 1. Deferred expenses D. I. 2. Complex deferred costs D. I. 3. Deferred income annual report

8 Balance sheet Reference Liabilites Row Current accounting period Previous accounting period a b c 5 6 TOTAL LIABILITIES (r ) A. Equity (r ) A. I. Registered capital (r. 70 to 72) A. I. 1. Registered capital A. I. 2. Company s own shares and ownership interests (-) A. I. 3. Changes of registered capital (+/-) A. II. Capital funds (r. 74 to 78) A. II. 1. Share premium A. II. 2. Other capital funds A. II. 3. Differences from revaluation of assets and liabilities (+/-) A. II. 4. Differences from revaluation in transformation (+/-) A. II. 5. Differences from company transformations A. III. Reserve funds, statutory reserve account for cooperatives, and other retained earnings (r ) A. III. 1. Legal reserve fund / indivisible fund A. III. 2. Statutory and other funds A. IV. Profit / loss previous year (r ) A. IV. 1. Retained earnings from previous years A. IV. 2. Accumulated losses from previous years A. V. Profit / loss current year (+/-) B. Other sources (r ) B. I. Reserves (r. 88 to 91) B. I. 1. Reserves under special statutory regulations B. I. 2. Reserves for pension and similar payables B. I. 3. Income tax reserves B. I. 4. Other reserves B. II. Long-term payables (r. 93 to 102) B. II. 1. Trade payables B. II. 2. Payables to controlled and managed organizations B. II. 3. Payables to accounting units with substantial influence B. II. 4. Payables from partners, cooperative members and association members B. II. 5. Long-term advances received B. II. 6. Issued bonds B. II. 7. Long-term notes payables B. II. 8. Estimated payables B. II. 9. Other payables B. II. 10. Deferred tax liability B. III. Short-term payables (r. 104 to 114) B. III. 1. Trade payables B. III. 2. Payables to controlled and managed organizations B. III. 3. Payables to accounting units with substantial influence B. III. 4. Payables from partners, cooperative members and association members B. III. 5. Payroll B. III. 6. Payables to social securities and health insurance B. III. 7. Due from state tax liabilities and subsidies B. III. 8. Short-term deposits received B. III. 9. Issued bonds B. III. 10. Estimated payables B. III. 11. Other payables B. IV. Bank loans and financial accommodations (r. 116 to 118) B. IV. 1. Long-term bank loans B. IV. 2. Short-term bank loans B. IV. 3. Short-term accommodations C. I. Accruals (r ) C. I. 1. Accrued expenses C. I. 2. Deferred revenues annual report 2010

9 Profit and loss statement Reference Text Row Accounting period a b c Current 1 Previous 2 I. Revenues from sold goods A. Expenses on sold goods Sale margin (r ) II. Production (r. 05 to 07) II. 1. Revenues from own products and services II. 2. Change in inventory of own products II. 3. Capitalization B. Production consumption (r ) B. 1. Consumption of material and energy B. 2. Services Added value (r ) C. Personnel expenses (r. 13 to 16) C. 1. Wages and salaries C. 2. Remuneration of board members and association members C. 3. Social security expenses and health insurance C. 4. Other social expenses D. Taxes and fees E. Depreciations of intangible and tangible assets III. Revenues from disposals of fixed assets and materials (r ) III. 1. Revenues from disposals of fixed assets III. 2. Revenues from disposals of materials F. Net book value of disposed fixed assets and materials (r ) F. 1. Net book value of sold fixed assets F. 2. Net book value of sold material G. Change in operating reserves and adjustments and complex deferred costs (+/-) IV. Other operating revenues H. Other operating expenses V. Transfer of operating revenues I. Transfer of operating expenses * Operating profit / loss [r (-28) - (-29)] VI. Revenues from sales of securities and ownership interests J. Sold securities and ownership interests VII. Revenues from long-term financial assets (r. 34 to 36) VII. 1. Revenues from shares in controlled and managed organizations and in accounting units with substantial influence VII. 2. Revenues from others securities and ownership interests VII. 3. Revenues from other long-term financial assets VIII. Revenues from short-term financial assets K. Expenses associated with financial assets IX. Revenues from revaluation of securities and derivatives L. Cost of revaluation of securities and derivatives M. Change in financial reserves and adjustments (+/-) X. Interest revenues N. Interest expenses XI. Other financial revenues O. Other financial expenses XII. Transfer of financial revenues P. Transfer of financial expenses * Profit / loss from financial operations (transactions) [(r (-46) - (- 47)] Q. Income tax on ordinary income (r ) Q. 1. Due tax Q. 2. Tax deferred ** Operating profit / loss ordinary activity (r ) XIII. Extraordinary revenues R. Extraordinary expenses S. Income tax on extraordinary income (r ) S. 1. Due tax S. 2. Tax deferred * Operating profit / loss extraordinary activity (r ) T. Transfer of profit (loss) to partners (+/-) *** Profit / loss of current accounting period (+/-) (r ) **** Profit / loss before tax (+/-) (r ) annual report

10 Cash Flow Statement Reference Text Current accounting period P. Balance of cash on hand and financial equivalents as at the beginning of reporting period CASH FLOWS FROM MAIN ACTIVITIES (OPERATING ACTIVITIES) Z. Accounting profit/loss / from running activities before taxation A. 1. Adjustments by non-cash operations A Depreciation of fixed assets and amortization of adjustments to acquired assets A Change in balance of adjustments and reserves A Profit from sales of fixed assets A Revenue from dividends and shares in profit 0 A Accounted for interest expense, exclusive of interest capitalization and accounted for credit interest A Possible adjustments by other non-cash operations 0 A. * Net cash flow from running activities before taxation, changes in working capital and unusual /extraordinary items A. 2. Change in non-cash items of working capital A Change in balance of receivables from running activities, temporary assets accounts A Change in balance of short-term payables from running activities, temporary liability accounts A Change in balance of inventory A Change in balance of current liquid assets not included in cash or equivalents 0 A. ** Net cash flow from running activities before taxation and unusual /extraordinary items A. 3. Interests paid exclusive of interest capitalization A. 4. Interests received A. 5. Income tax for running activities and additional tax assessments for previous periods A. 6. Income and expense on unusual and/or extraordinary items, including income tax 219 A. 7. Received dividends and shares in profit 0 A. *** Net cash flow from running activities CASH FLOWS FROM INVESTING ACTIVITIES B. 1. Expense on fixed assets acquisition B. 2. Income from fixed assets sales B. 3. Loans to related parties 0 B. *** Net cash flow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES C. 1. Change in balance of long-term or short-term payables C. 2. Impact of changes in equity on cash on hand and financial equivalents C Increase in cash on hand as a result of increased registered capital, share premium etc. 0 C Payment of share in equity to partners 0 C Other contributions of cash by partners and shareholders 0 C Loss coverage by partners 0 C Direct debit fund payments 0 C Dividends paid or shares in profit, including taxes paid C. 3. Received dividends and shares in profit 0 C. *** Net cash flow from financing activities F. Net increase / decrease in cash on hand R. Balance of cash on hand and financial equivalents as at the end of reporting period annual report 2010

11 Appendix to the financial statement (economic year 2010) 1. GENERAL DATA Accounting unit description Registration date in the Trade Register: 1. 01/01/ Business name: IMOS Brno, a.s. Head office: Olomoucká 174, Brno Identification number: Registered at: Regional Commercial Court in Brno, section B, insert 2211 Main business objective: Performing constructions, including their modifications, maintenance work and removal Legal form: Joint stock company Shareholders whose stake exceeds 20%: IMOS holding, a.s., company registration No Olomoucká 174, Brno Registered capital of 30,000,000 CZK Registered capital share 100% More than 20 % share in the registered capital in other companies: IMOS Invest I, spol. s r.o., company registration No Olomoucká 174, Brno Registered capital of 15,000,000 CZK Registered capital share 100% In 2004, the Company IMOS Brno, a.s. established an organizational branch with the head office in Slovakia: IMOS Brno, a.s. Organizational Branch of the Company Bytčická 89, Žilina, SK Company registration No.: , VAT No.: SK Statutory bodies Chairman of the Board of Directors: Ing. Oldřich Štercl Lesní Hájek 10, 882/4, Klobouky Klobouky u Brnau Brna Vice Chairman of the Board of Directors: Ing. Jan Sniegon Lyžbická 1191, Třinec Member of the Board of Directors: Ing. Milan Karásek Ostružinová 498/3, Brno Ing. Robert Suchánek Tvaroženská 109, Jiříkovice Supervisory Board Chairman: Ing. Jiří Rulíšek Velká Morava 45, Dolní Morava Members: Ing. Radomír Ivan Sigmund Vostal Kuršova Pod Skalkou 3, Brno 10, Nový Jičín Ing. Ivan Radomír Sigmund Vostal Pod Kuršova Skalkou 3, Brno 10, Nový Jičín Average number of employees during the accounting period: 685 Management: 14 Labour costs recapitulation (in 000 CZK): Employees Management Out of Members of the Executive Bodies Labour costs 443, ,920 82,216 Health insurance and social security costs 106,949 7,899 2,479 Several of the executives of individual sections, divisions and departments are entitled to use company cars, which is, in compliance with Section 6 of Act No. 586/1992 Coll., as amended, considered as part of employee s income. Until now, the members of the statutory or any other advisory bodies have not been provided with any loans by the Company. annual report

12 2. INFORMATION CONCERNING APPLIED ACCOUNTING METHODS, GENERAL ACCOUNTING PRINCIPLES AND METHOD OF VALUATION 2.1. The mode of inventory valuation corresponds to purchase prices. Additional acquisition costs of merchandise are concentrated in separate analytical accounts. These expenses are discharged in costs on a monthly basis proportionately to the amount of consumed material. It is FIFO that has been applied as a mode of keeping stock records. Activated long-term tangible assets are valued on the level of real costs The mode of replacement purchase price determination of assets is based on the arithmetic mean of prices taken from expert opinions usually carried out with the help of three different methods of replacement price determination. In this accounting period, no such assets have been acquired Other accessory acquisition costs represent customs duties, additional charges, intermediary fees, carriage charges, etc Fiscally effective rectifying items have been set up in accordance with the law, their total sum reaching 29,783,000 CZK. Furthermore, a non-fiscal rectifying item in the amount of 712,000 CZK has been created. See the Balance Sheet for details Accounting depreciations are carried out using a uniform depreciation method. The beginning of accounting depreciation takes place in the month following the filing. Individual accounting groups are depreciated as follows: Tax group 1 3 years Tax group 2 5 years Tax group 3 10 years Tax group 4 20 years Tax group 5 30 years Tax group 6 50 years The second and third tax groups are depreciated in an accelerated or uniform way, if possible, depending on the assets type. The first, fourth, fifth and sixth tax groups are depreciated in a uniform way. As far as the deposited assets are concerned, the original depreciation method has been used further on As far as the conversion of foreign currencies, a valid CNB rate is used on the date of performing the accounting operation. The record-keeping of foreign invoices is performed on the day when the invoice was issued. The payment is considered to be the date when the sum was sent from the account. 3. ADDITIONAL INFORMATION REGARDING THE BALANCE SHEET AND THE PROFIT AND LOSS STATEMENT 3.1. Tangible and intangible assets excluding claims 3.1.a. Account 022 Long-term assets depreciated in accordance 082 Accumulated depreciation to TA with the groups on 31 March 2011 group 3 machinery 3,405, ,639, group 4 appliances 39,179, ,376, group 5 equipment 31,074, ,072, group 6 means of transport 44,986, ,950, group 7 inventory 909, , ,555, ,913, Small long-term assets (acquisition costs less than 40,000 CZK) acquired before ,704, ,704, ,260, ,618, group 6 Leasing IMOS Brno, a.s. Slovakia Branch 632, , ,892, ,251, b. Account 013 Software 073 Software depreciation State as per 1 April ,758, ,522, State as per 31 March ,550, ,495, Small long-term assets (acquisition costs less than 60,000 CZK) acquired before , , ,748, ,693, Tangible long-term assets acquired through financial leasing The total amount of leasing instalments: The amount payable in ,000 The amount payable in ,000 The amount payable in , annual report 2010

13 3.1.c. Increase and decrease of T&ILA according to the accounts in the period of economic year 2010 (except small T&ILA) Account Initial state Increase Decrease Final state 013/10 9,758, ,160 2,314,673 7,550, /10 78,436, ,436, /10 112,985,032 13,558,519 6,987, ,555, /10 57,204, , ,624, /10 396, ,200 Total 258,780,036 14,085,679 9,302, ,563, d. 3.1.e. The sum of assets not included in the Balance Sheet Low-value assets kept in the operational records at the purchase price: Assets specification burdened with lien As per 31 March 2011, the Company does not have any assets burdened with lien. 45,958,000 CZK 3.2. Claims in thousands CZK 3.2.a. The sum of claims after their due date: 58,640,000 CZK up to 30 days: 15,782,000 CZK up to 90 days: 1,338,000 CZK over 90 days: 41,520,000 CZK 3.2.b. 3.2.c. 3.2.d. Long-term claims Long-term trade receivables included in the Balance Sheet are created by retention sums of payments based on contractual stipulations, as well as the amount of 3,300,000 CZK by virtues of credits and loans granted. The sum of claims in the amount of 6,627,000 CZK made upon the association members consists of the claims made upon the association members participating in those associations of which we are members. This means the division of net income, as well as payments of invoices issued by other association members, etc. In its accounting, the Company registers a deposit bill of exchange upon the UNION Bank. This bill of exchange has been claimed in the bankruptcy proceedings. A rectifying item has not bee created regarding this bill of exchange. The received and issued collaterals and bills of exchange are recorded in the corresponding Balance Sheet Equity 3.3.a. Company s equity on 31 March ,131,000 CZK 3.3.b 3.3.c. The division of profit made in the previous accounting period From the profit made in the accounting period 2009 in the amount of 502,222,000 CZK, the Board of Directors has taken the decision to pay out the profit in the form of dividends in the overall amount of 500,000,000 CZK. The remaining profit in the amount of 2,222,000 CZK has been transferred onto the retained earnings account. Registered capital The amount of the registered capital is 205,000,000 CZK. The registered capital consists of 204 shares in the nominal value of 1,000,000 CZK each and 2 shares in the nominal value of 500,000 CZK each Trade liabilities (in thousands CZK) 3.4.a. The sum of liabilities after the due date: 31,107,000 CZK up to 30 days 8,925,000 CZK up to 90 days 11,934,000 CZK over 90 days 10,248,000 CZK Approximately 20% of the total amount of the liabilities after the due date consists of those liabilities proposed to an inclusion but where such inclusion agreement has not been confirmed by the other party yet. The amount of liabilities after the due date exceeding 90 days comprises the sum of invoices conditioned by the final handover of the work without any faults and backlogs, which included the calculation of the contractual date of the liability due date related to the total price for work. 3.4.b. Among them, the liabilities to the companies within the group: 0 CZK 3.4.c. The company does not have any liabilities covered by lien. annual report

14 3.4.d. The Company does not have any liabilities not included in the bookkeeping as per 31 March e. Long-term trade liabilities included in the Balance Sheet consist of retention sums of payments based on contractual stipulations Liabilities to employees Wage liabilities in the month of March Other liabilities to employees Total 3.5. Reserves 3.5.a. A reserve concerning long-term tangible assets repairs has not been made. 16,127,000 CZK 15,921,000 CZK 206,000 CZK 16,127,000 CZK 3.6. Company revenues divided according to main activities: Activity Amounts in thousands CZK Transport 1,582 Locksmith s workshops 2,796 Laboratories, research and development 8,139 Mechanisation 3,974 Repair shops 1,010 Design 9,730 Civil engineering 3,152,639 Auxiliary civil engineering 14,560 Roads and bridges 332,147 Building administration 1,325 Company management 47,598 Water management structures 654,090 Total 4,229,590 The performance includes the revenues from the sales of the Company s products and services, revenues from the sales of its assets and materials, other operating revenues, and the revenues from the Company s financial activities Shares in persons under direction IMOS Invest I, spol. s r.o., company registration No Olomoucká 174, Brno Registered capital of Share in the registered capital: 100 % 15,000,000 CZK 15,000,000 CZK 4. ESTIMATED PRE-PAID ITEMS The sum of the estimated items in the amount of 22,642,000 CZK consists of the estimated items based on so far non-disclosed insurance claims and uninvoiced services. 5. ESTIMATED EXPENSES OR LOSSES The sum of the estimated items in the amount of 1,035,220,000 CZK consists of the estimated items based on uninvoiced supplies and deliveries provided by subcontractors. 6. INCOME TAX State tax obligations and subsidies Property tax 86,000 CZK Dependent activity tax 1,521,000 CZK Total 1,607,000 CZK State tax receivables VAT claim 207,000 CZK Corporation income tax claim 112,383,000 CZK Consumption tax return claim 506,000 CZK Total 113,096,000 CZK Total The calculation of the deferred tax obligation consists of the difference between the balance tax and 113,096,000 the property CZK book The calculation of the deferred tax obligation consists of the difference between the balance tax and the property book value, and it amounts to 3,095,000 CZK. In course of the 2010 accounting period, there were changes in the Company s Board of Directors and the Supervisory Board. The details were recorded in the Trade Register. A report entitled Report on the relations between interconnected persons as per 31 March 2011 has been prepared. The report has been deposited in the Company s head office. No significant or substantial change occurred in the period leading up to processing and preparing the financial statement annual report 2010

15 Auditor s report TOP AUDITING Limited Liability Company Kotlářská 931/53, Brno, Czech Republic Commercial register kept at the Regional Court in Brno C 4855, registration No.: Phone: , Phone: , Fax: audit@topauditing.cz Independent auditor s report on verifying the Financial Statement compiled on 31 March 2011 and relating to the economic year from 1 April 2010 to 31 March 2011 IMOS Brno, a.s, Brno Registration No.: The report has been prepared for the use of the Statutory Body of the Company. We have performed an audit of the enclosed financial statement of the Company, consisting of the Balance Sheet as per 31 March 2011, the Profit and Loss Statement, the Statement of Changes in the Equity, and the Cash Flow Statement, covering the accounting period ending on the date referred to above, as well as the Appendix to this financial statement, including the description of all the important accounting methods applied and other explanatory information. On behalf of the audit company, the audit was performed by Ing. Štěpán Gregor (Chamber of Auditors of the Czech Republic, Licence No. 2136). Liability of the Statutory Body of the accounting unit concerning the Financial Statement. It is the Statutory Body of the Company IMOS Brno, a.s. that holds full liability for compiling the financial statement giving a true and complete picture of the financial situation of the Company, in compliance with the Czech accounting legislation. Furthermore, it is also liable for an internal audit system that it deems necessary for compiling the Financial Statement so that it does not contain any substantial (material) incorrectness incurred as a result of a fault or fraud. Auditor s liability. On the basis of the performed audit, it is our liability to issue a statement to the submitted Financial Statement. The audit was performed in compliance with the Act on Auditors and International Auditing Standards, as well as the related application clauses issued by the Chamber of Auditors of the Czech Republic. In accordance with these regulations, it is our duty to observe the ethical standards and to plan and perform the audit so that the auditor may be reasonably certain that the submitted financial statement is free of any significant (material) incorrectness. The audit comprises performing such auditing procedures aiming at obtaining evidence and information concerning the amounts and facts mentioned in the Financial Statement. The selection of the auditing procedures depends on the auditor s consideration, including the risk assessment that the financial statement may contain substantial (material) incorrectness incurred as a result of a fault or fraud. When assessing such risks, the auditor shall take into account the inside checking and control relevant for compiling the Financial Statement offering a true and complete picture of the financial situation of the Company. The aim of examining the inside checking and control mechanisms is to propose appropriate auditing procedures, not to issue a statement to the efficiency of such internal mechanisms applied in the accounting unit. The audit also includes examining the appropriateness of the applied accounting methods, the adequacy of the accounting estimates performed by the Management, as well as examining the overall presentation of the financial statement. We do believe that the evidence obtained during the audit constitute a sufficient and appropriate basis in order to issue our statement. Auditor s statement. In our opinion, the submitted financial statement gives a true and complete picture of the assets, liabilities and financial situation of the Company as per 31 March 2011, as well as the expenses, income, operating results in the relevant economic year, being in compliance with the valid accounting legislation in the Czech Republic. In Brno, 31 May 2011 Auditor s signature: (illegible signature) TOP AUDITING, s.r.o., Brno Chamber of Auditors of the Czech Republic, Licence No. 047 Office for the Supervision on Performing Audits, Licence No. 007 Expert Institute (Ministry of Justice of the Czech Republic 63/97-OOD) annual report

16 Auditor s report TOP AUDITING Limited Liability Company Kotlářská 931/53, Brno, Czech Republic Commercial register kept at the Regional Court in Brno C 4855, registration No.: Phone: , Phone: , Fax: audit@topauditing.cz Independent auditor s report on verifying the annual report compiled on 31 March 2011, i.e. relating to the economic year from 1 April 2010 to 31 March 2011 IMOS Brno, a.s., Brno Registration No.: The report has been prepared for the use of the Statutory Body of the Company. On behalf of the audit company, the verification was performed by Ing. Štěpán Gregor (Chamber of Auditors of the Czech Republic, Licence No. 2136). Report on the Financial Statement. We have performed an audit of the Financial Statement of the Company relating to the economic year On 31 May 2011, on the basis of the performed audit, we issued the auditor s report with the statement as follows: Auditor s statement. In our opinion, the submitted financial statement gives a true and complete picture of the assets, liabilities and financial situation of the Company as per 31 March 2011, as well as the expenses, income, operating results in the relevant economic year, being in compliance with the valid accounting legislation in the Czech Republic. Report on the annual report. We have also verified the compliance of the annual report of the Company as per 31 March 2011 with the Financial Statement included in this annual report. It is the statutory body of the Company that holds the liability for the correctness of the annual report. On the basis of a performed audit, it is our task to issue a statement concerning the compliance of the annual report with the financial statements. The verification was made in accordance with the International Auditing Standards and related application clauses issued by the Chamber of Auditors of the Czech Republic. These standards require so that an auditor plans and performs the verification so that they obtain sufficient certainty that the information included in the annual report, also describing the facts being the subject of the financial statement, are, in all essential respects, in full compliance with the corresponding financial statement. We are convinced that the performed audit provides a sufficient basis for issuing the auditor s statement. In our opinion, all the information included in the annual report submitted by the Company as per 31 March 2011 is, in all the essential (material) respects, in compliance with the afore mentioned financial statement. In Brno, 28 June 2011 Auditor s signature: (illegible signature) TOP AUDITING, s.r.o., Brno Chamber of Auditors of the Czech Republic, Licence No. 047 Office for the Supervision on Performing Audits, Licence No. 007 Expert Institute (Ministry of Justice of the Czech Republic 63/97-OOD) annual report 2010

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18 IMOS Brno, a.s. Olomoucká Brno tel.: fax: