hse group

5.6 IMPORTANT EVENTS AFTER THE END OF FINANCIAL YEAR
74 HSE Italia S.r.l.
In April 2003 HSE as the only founder established
a new company named HSE
Italia S.r.l.
Decree on the Concession for the
Generation of Power on the Drava River
The Decree on the Concession for the
Generation of Power on the Drava River,
which was passed by the Government
of the Republic of Slovenia on 27 February
2003, will have important effects
on the future performance of DEM.
According to the first estimates the
decree is going to substantially reduce
operating costs - the cost of building land
compensation in 2003 and the following
years.
No Reduction of the
SEL Subscribed Capital
At the first level the registration court
denied the motion for the suspension
of the procedure for the reduction of
SEL subscribed capital and issued a
decree on the reduction of subscribed
capital. The decree did not become
legally binding though as minority shareholders
filed a complaint, which prevents
the company (until the decree
becomes legally binding) to cover the
losses from previous periods by reducing
the company’s subscribed capital.
Decree on the Specification
of the Concessionaire for
Economic Exploitation of Water
for the Production of Electricity for
Upper Sava River Hydropower Plants
On 18 March 2003 SEL received the
Decree on the Specification of the
Concessionaire for Economic Exploitation
of Water for the Production of Electricity
for Moste HPP (hydropower
plant), MavËiËe HPP and Medvode
HPP. Based on this decree the company
will become concessionaire for the
above-listed power plants, providing
that it signs a concession contract with
the Government of the Republic of
Slovenia within three months from the
date of issuing the decree.
Reduction of
Subscribed Capital at SENG
A reduction of the SENG subscribed
capital was entered in the register of
companies on March 12th, 2003, following
an accelerated procedure, which
was impossible to realize in 2002 as
there was a complaint filed against it.
Based on new legal acts the loss generated
in 2001 was covered with the
positive operating financial result of
2002. This meant that with the registration
of the reduced subscribed capital in
March 2003 there was a double coverage
of the loss generated in 2001,
which will be amended in 2003 with the
transfer of 2002 generated profit to the
undistributed net profit of the financial
year 2003.
Severe Accident at PV
Unfortunately, among the important
events we need to mention a severe
industrial accident that happened at PV
at the beginning of 2003 and claimed
the lives of two miners and caused a
loss of lignite production.
Start of Re-structuring
at TDR - Metalurgija
In February 2003 the TDR - Metalurgija
Supervisory Board adopted the Modernization
of Complex Composites Production
investment program, which denotes
the start of re-structuring in the
sense of increasing the production of
less power-intensive products.
ISO 9001/2000
Granted to TDR - Metalurgija
In March 2003 TDR Metalurgija attained
the ISO 9001/2000 certification.