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

B.2.3. Mandate ContractThe contract between the Company and the controlling entity was entered into on 1 July 2005 and amended by Amendment No. 1 of 1 December 2005 andAmendment No. 2 of 27 September 2007. Under the contract, the controlling entity, on behalf and on the account of the Company, agrees to deal with allbusiness matters relating to the purchase of work and services necessary for performing the activity of the Company, primarily providing for the maintenanceand repairing of the production facility, technology, structures, land and other assets owned or used by the Company.During the accounting period, the performance under the above contract was provided for consideration of CZK 215,566 thousand.B.2.4. Mandate ContractThe contract between the Company and the controlling entity was entered into on 29 June 2007. Under the contract, the controlling entity, on behalf andon the account of the Company agrees to deal with business matters relating to the purchase of metal scrap category No. 170405 (Iron and Steel) complyingwith the requirements of ČSN 420030 (Steel and Alloy scrap) – i.e. scrap for the production needs of the Company, as well as to deal with the relatingactivities, in the scope and under the conditions defined in the mandate contract.During the accounting period, the performance under the above contract was provided for consideration of CZK 191,845 thousand.B.2.5. Other Performances Received1. The Company received other performances from the controlling entity under special contracts during the accounting period involving, for example, theprovision of liability insurance, property insurance, insurance for the corporate body members, purchase of goods, lease rights and provision of otherservices totalling CZK 38,177 thousand.2. The controlling entity provided the Company with guarantees for its obligations under:a) The guarantees for investment loan settlement of CZK 630,000 thousand:Creditor: ČSOB, a.s. CZK 180,000 thousand. The contract was effected on 31 March 2004.ČSOB, a.s. CZK 150,000 thousand. The contract was effected on 31 March 2004.Citibank, a.s. CZK 300,000 thousand. The contract was effected on 9 September 2004.The controlling entity provided no performance under the guarantees.B.3. Other Contractual RelationsNo other contractual relationships were established between the Company and the controlling entity under Section 66a (9) of the Commercial Codeduring the accounting period.B.4. Other Legal ActsNo other legal acts were performed within the relationship between the Company and the controlling entity under Section 66a (9) of the CommercialCode during the accounting period.B.5. Other MeasuresNo other measures were taken within the relationship between the Company and the controlling entity under Section 66a (9) of the Commercial Codeduring the accounting period.C. Description of the Companys Relations with the Controlling Entity, FINITRADING a.s.C.1. Sales and Other Performances Provided by the Company in Favour of the Controlling Entity, FINITRADING a.s.C.1.1. Other Performances ProvidedDuring the relevant accounting period, the Company provided performance in favour of the controlling entity, which involved the provision of otherservices in the amount of CZK 397.C.2. Other Contractual RelationsNo other contractual relationships were established between the Company and the controlling entity under Section 66a (9) of the Commercial Codeduring the accounting period.C.3. Other Legal ActsNo other legal acts were performed within the relationship between the Company and the controlling entity under Section 66a (9) of the CommercialCode during the accounting period.C.4. Other MeasuresNo other measures were taken within the relationship between the Company and the controlling entity under Section 66a (9) of the Commercial Codeduring the accounting period.118F I N A N C I A L P A R T