TŽ Annual Report 2008 in pdf, 7.5 MB - Třinecké železárny

whereby the performance fee exclusive of VAT agreed upon in the contract amounted to no less than 1 percent of the Companys share capital withinthe day-to-day course of business relations, and 0.5 percent of the Companys share capital outside of day-to-day business relations; andbb) a collective reference to other contracts, mainly contracts whereby the performance fee is below the amount set out under section ba).B.1 Sales and Other Performances Provided by the Company in Favour of the Controlling Entity, MORAVIA STEEL a.s.B.1.1. Master ContractThe contract between the Company and the controlling entity was entered into on 30 December 2002. Under the contract, as amended by AmendmentNo. 1 of 31 December 2004 and Amendment No. 2 of 30 June 2005, the Company agrees to sell its metallurgical products to the controlling entity. Partialsale contracts are prepared for individual performances. The prices for goods are arms length prices derived from market prices.During the accounting period ended 31 December 2008, the performance under the above contract and the underlying partial sale contracts withsettlement in the form of invoices and credit notes for the sale of products, or expenses associated with complaints was provided for consideration ofCZK 28,657,459 thousand.B.1.2. Licence Contract for the Use of the “Three Hammers in a Circle” TrademarkThe contract between the Company and the controlling entity was entered into on 30 June 2002. Under the contract, as worded in the subsequent amendmentsand appendices, the Company provided a non-exclusive right to the controlling entity to use the Companys trademark as part of the logo of MO-RAVIA STEEL a.s. The right was provided for consideration.During the accounting period, the consideration for the right provided under the above contract amounted to CZK 123,000 thousand.B.1.3. Contract on the Provision of ServicesThe contract between the Company and the controlling entity was entered into on 1 January 2003. Under the contract, the Company provided the controllingentity with services involving building guards, fire protection, postal services, archiving and documentation services, dispatch services, transport andcustoms clearance, information technology, selected technical services, pricing services, selected accounting services and complaint resolution services.During the accounting period, the performance under the above contract was provided for consideration of CZK 30,681 thousand.B.1.4. Lease ContractThe contract between the Company and the controlling entity was entered into on 9 March 2000. Under the contract, as amended by Amendment No. 1of 10 November 2005, Amendment No. 2 of 19 January 2006, Amendment No. 3 of 7 September 2006 and Amendment No. 4 of 24 October 2007, the leaseright to real estate and non-residential premises and movable assets owned by the Company was agreed upon for the location of the controlling entitysregistered office and business activities.The rent and other payments arising from the above contract during the accounting period amounted to CZK 7,024 thousand.B.1.5. Contract for the Provision of Telecommunications ServicesThe contract between the Company and the controlling entity was entered into on 31 December 1998 and was amended by Amendment No. 1 of 1 July 2002.Under the contract, the Company rendered telecommunications services to the controlling entity.During the accounting period, the performance under the above contract was provided for consideration of CZK 4,514 thousand.B.1.6. Other Performances ProvidedDuring the accounting period, the Company provided the controlling entity with other performances under special contracts involving, for example, thesale of goods and other assets, provision of internet services or other services for a total consideration of CZK 5,922 thousand.B.2. Purchases and Other Performances Provided by the Controlling Entity, MORAVIA STEEL a.s., in Favourof the CompanyB.2.1. Purchase Contract for the Supply of Materials and Raw MaterialsThe contract between the Company and the controlling entity was entered into on 12 January 1999 and amended by Amendment No. 1 of 30 December2002. Under the contract, the Company agrees to purchase basic metallurgical raw materials, mainly ores, coal, fuels and metallurgical semi-finished products,from the controlling entity. The volume of the supplies and fees are specified on a quarterly basis in the form of partial sale contracts. The contractwas entered into for an indefinite period of time.During the accounting period, the performance under the above contract was provided for consideration of CZK 21,650,283 thousand.B.2.2. Master Forwarding ContractThe contract between the Company and the controlling entity was entered into on 30 December 2002. Under the contract, as worded in the subsequentamendments and appendices, the controlling entity agrees to provide transport for goods and to perform activities associated with such transport and toarrange for any other action necessary for the operation of national railway freight transport for the Company. The performance was provided on the basisof contractual prices agreed for one year with respect to a specific shipment and volume.During the accounting period, the performance under the above contract was provided for consideration of CZK 194,946 thousand.A N N U A L R E P O R T T Ř I N E C K É Ž E L E Z Á R N Y , a . s . 2 0 0 8117