CzeCh airlines - České aerolinie

REPORT OF THE SUPERVISORY BOARD OF CZECH AIRLINES
FOR THE YEAR 2010
annual report 2010 | 38
Meetings of the
Supervisory Board in 2010
During 2010, the Supervisory Board
of Czech Airlines met 14 times at the
Company headquarters; two of the meetings
were convened on an extraordinary
basis.
In the year 2011, up to the date when the
Annual Report of Czech Airlines for the
year 2010 went to press, the Supervisory
Board convened three regular meetings.
Activities of the
Supervisory Board in the
given period
During the period in question, the
Supervisory Board was involved in supervisory
activities and performed tasks
stemming from the enhanced powers
granted to it by the Company’s Articles
of Association.
There was regular scrutiny of reports
on the Company’s financial results for a
given month and of the performance of
tasks stemming from the Czech Airlines
Restructuring Plan approved by the
General Meeting. Remuneration provided
to the members of the statutory bodies
of the Czech Airlines Group was also
followed closely. The Supervisory Board
was kept informed about the audit conducted
by the European Commission.
At its meetings, the Supervisory Board
was always updated by the Board of
Directors on the main events that had
transpired in the Company, about the
intentions of the Board of Directors and
the results of its actions. The Chairman
of the Supervisory Board regularly
attended the meetings of the Board of
Directors. The Chairman of the Board
of Directors was a regular guest at the
meetings of the Supervisory Board.
Supervisory Board’s
statement on the
financial results for
2010
The Supervisory Board, in accordance
with the Company’s Articles of
Association, reviewed the results of the
implementation of the Czech Airlines
business plan on a regular basis, as
those results were submitted in the form
of reports by the Board of Directors. The
Supervisory Board consequently became
acquainted with the report of the independent
auditor for the shareholders of
Czech Airlines from 13 May 2011.
Auditing is done by KPMG Česká republika
Audit, s.r.o. (licence No. 71), represented
by Ing. Monika Vítová (licence
No. 2079), approved by the extraordinary
Czech Airlines General Meeting on 30
September 2010 as an independent
auditor of Czech Airlines. The auditor’s
opinion on the unconsolidated financial
statements of Czech Airlines (issued on
15 April 2011) and consolidated financial
statements of Czech Airlines and its
subsidiary companies – the “Group”
– (issued on 6 May 2011), compiled in
accordance with the accounting regulations
of the Czech Republic, was issued
after the following financial statements
had been verified, i.e. (unconsolidated
and consolidated) balance sheet as of
31 December 2010, profit and loss statement,
overview of changes of equity,
and cash flow statement for the year
2010 and the annexes to those financial
statements, including a description of
significant accounting methods used
and other additional details.
The audit was carried out in accordance
with the act on auditors, the
International Auditing Standards and
the related application clauses of the
Chamber of Auditors of the Czech
Republic. The Company’s statutory
body is responsible for the compilation
and a fair and true view of the financial
statements and for ensuring an
internal supervisory system it considers
necessary for the compilation of the
financial statements so that they do not
contain significant inaccuracies. The
independent auditor in this regard also
declares that the evidence acquired gives
a sufficient and suitable base for the
Auditor’s Opinion.
The Auditor’s Opinion includes the
following statement: In our opinion, the
consolidated financial statements give
a true and fair view of the assets and liabilities
of the Group as of 31 December
2010, and of its expenses, revenues and
net result and its cash flows for the year
then ended in accordance with Czech
accounting legislation.
At its meeting of 30 March 2011, the
Supervisory Board adopted a resolution
(No. DR03-11/6.7) whereby, in accordance
with §66a (10) of the Commercial
Code, it reviewed the submitted report
of the statutory body of the Company
on relations among interconnected
entities for the year 2010, drafted and
consequently approved by the Board
of Directors on 25 March 2011. The
Supervisory Board expressed its agreement
with the report’s conclusions.
The report on relations among interconnected
entities of Czech Airlines
as of 31 December 2010 forms part of
the Annual Report. The independent auditor
found no significant inaccuracies.