RADPOL joint-stock company. Człuchów, Poland

Transcription

1 Poznań, RADPOL joint-stock company Człuchów, Poland Opinion of independent auditor with supplementary report on the financial statements for the financial year ended 31 December RADPOL joint-stock company Opinion of independent auditor on the consolidated financial statements.

2 Opinion of independent auditor on the consolidated financial statement. To the General Assembly of shareholders and the Supervisory Board We have audited the accompanying financial statements of RADPOL SA, based in Człuchów, ul.batorego 14, including: - statement of financial position as at 31 December 2011, total assets and liabilities in the amount of thousand PLN - profit and loss account for the financial year from 1 January 2011 to 31 December 2011 showing a net profit of thousand PLN - statement of comprehensive income for the period from 1 January 2011 to 31 December 2011 showing a total income of thousand PLN - statement of changes in equity for the financial year from 1 January 2011 to December showing an increase in equity by the amount of thousand PLN - statement of cash flows for the financial year from 1 January 2011 to 31 December 2011 showing a increase in cash during the financial year by an amount of thousand PLN - explanatory notes to financial statements drawn up on 31 December 2011 For preparation in accordance with applicable regulations of the financial statements and reports on the activities of the unit its manager is responsible. Unit manager and members of Supervisory Board or other supervisory unit are obliged to ensure that the financial statements and report on the activities meet the requirements under the Act of September 29, 1994 on accounting (Journal of Laws of 2009, No. 152, item. 1223, as amended), hereinafter referred to as the Act on Accounting. Our task was to examine and express an opinion on compliance with the required applicable principles (policy) of accounting, this financial statement and whether fairly and clearly, in all material respects, it presents financial position, financial performance and accuracy of the accounts form the basis for this statement. Study of the financial statements was conducted pursuant to the following provisions: 1. Chapter 7 of the Accounting Act 2. National auditing standards, issued by the National Council of Statutory Auditors in Poland 3. Provisions of International Standards on Auditing This study was planned and conducted in such a way as to obtain reasonable assurance allows to express an opinion about statement. In particular, the study included validation used by entities related to the rules (policy) of accounting, significant estimates and verification - largely at random - evidence and accounting records of the amounts and disclosures in the financial statement and the overall evaluation of this report. We believe that our audit provided a reasonable basis to express an opinion. Not qualifying the accuracy and reliability of audited financial statements, we note that the Company received in 2008, technological credit for purchase of fixed assets, which under certain conditions in the contract was discontinued.

3 Terms of redemption of the loan are set out in the explanatory notes to the financial statements in note No. 43 Other Operating Income. Based on the provisions of MSR 20 Government Grants and Disclosure of Government Assistance, Board of the Company qualified redeemed loan instalments as contribution to revenue and were recognized in the income statement at the time of obtaining the decision to discontinue. In our opinion, the financial statements, in all material respects: - present truly and fairly all information material to the assessment of financial position of the audited entity at 31 December 2011, as well as its financial results for the year from 1 January 2011 to 31 December was prepared in accordance with International Accounting Standards, International Financial Reporting Standards and related interpretations published in the form of regulations of the European Commission, and in the absence of the Standards - in accordance with the requirements of the Act of Accounting, under its implementing rules and based on properly maintained accounting - is consistent to the law and the provisions of the Statute of Company Report on activities of the Company is complete within the meaning of Article 49. Paragraph. 2 of the Law on Accounting and the information contained therein, derived from the audited financial statements are consistent with them. Poznań, 5 March 2012 ECA Seredyński i Partnerzy Sp. z o. o. Piotr Woźniak Certified auditor Registration number Carrying out the audit on behalf of ECA Seredyński i Partnerzy Sp. z o. o. No. 3115

4 RADPOL joint-stock company COMPLEMENTARY REPORT TO AN AUDIT OPINION OF FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2011

5 1.GENERAL PART 1.1 Basic information about the activities of the Company Firm, legal form, the National Court Register the company is registered under the firm RADPOL joint-stock company in the Register of the National Court Register kept by Regional Court in Gdańsk-North, VIII Division of the National Court Register, under KRS (National Court Register) number Registration has been made on 26 October We submitted an extract from the register on 21 November 2011 with the last entry of 26 September According to the information of the Board held the following significant events after the balance date: 1. Acquisition of shares, as described in explanatory note 55.1 to the financial statements 2. Incentive program described in note Early repayment date technology, as described in Note Conclusion of loan agreement to finance the acquisition of shares as provided in Note Office of the company The Company is located in Człuchów, , ul. Batorego The statute The basis of the company is an agreement of the Company on 4 September 2007,signed before a notary Anna Ewa Dańko- Roesler in a notary's office in Warsaw, ul.ordynacka 9, under the signature of the act Repertory A 11266/2007, as amended. The period of the company has been established for an unlimited period Statistical registration number Statistical Office in Gdańsk, issued Statistical Registration Number: Tax Identification Number Tax Office in Gdańsk, issued Tax Identification Number: The Company The main subject of Company s activity is: - production of tubes, pipes, hollow profiles and fittings of steel - Manufacture of insulated wire and cable and wiring devices - production of plastics and other rubber products - Manufacture of ceramic insulators and insulating fittings Factual subject of Company s activity is compatible with the registered activity Fiscal year

6 The financial year is the calendar year Share Capital Share Capital of RADPOL SA capital has not changed during the period and amounted ,56 PLN (previous year ,56 PLN ).It was divided into shares with a nominal value of 0.03 PLN each. shares in the company possessed by number of nominal value of shares % shares THC Fund Management LTD ,70 11,90 Marcin Wysocki ,16 11,79 BZ WBK AM S.A ,34 9,12 Aviva Investors Poland S.A ,95 8,88 Aviva Otwarty Fundusz Emerytalny Aviva ,00 9,33 PKO Towarzystwo Funduszy ,16 7,31 ING Nationale Nederlanden OFE ,62 7,06 Andrzej Pożarowszczyk ,17 3,38 Andrzej Sielski ,91 1,74 TRIGON Dom Maklerski ,31 0,01 Tomasz Firczyk ,00 0,00 Radpol (own shares) ,66 00,10 Other shareholders ,18 29, , After the balance sheet date the Company conducted the purchase of own shares. In connection with the transaction described in detail in the notes to the financial statements, the Company acquired on January 31, shares. Furthermore the Company was informed by the National Securities Depository that, in accordance with the list of shareholders entitled to attend the Extraordinary General Meeting convened on January 31, 2012, Aviva OFE Aviva, WZ WBK has shares of Company. On 17 February 2012, the Company received a notice, which was informed that from 13 February expired verbal communication between the minority shareholder and Chairman of the Supervisory Board, pursuant to which Chairman of the Supervisory Board RADPOL S.A. had the right to exercise their voting rights from shares of a minority shareholder with the shares of THC Fund Management Ltd. Subject dependent on the Chairman of the Supervisory Board List of related entities RURGAZ Sp. z o.o. unit dependent. 1.2 Bodies and the resolution of the company Management and Representation The Board of the Company at the date of the examination consists of: Andrzej Sielski - Chairman of the Board Grzegorz Mirosław Malczyk - Vice Chairman of the Board to 26 April, 2011 Andrzej Pożarowszczyk - Vice Chairman of the Board from 27 April 2011 Adam Dombrowski - member of the Board - from 1 September 2011 To make declarations on behalf of the Company, interaction is required by two members of the Board or one member of the Board and a proxy. After the balance sheet date until the date of opinion, there were no changes in the Board.

7 1.2.2 The Supervisory Board The Supervisory Board at the date of the examination consists of: Grzegorz Jan Bielowicki Zbigniew Piotr Janas Tomasz Krzysztof Firczyk Tomasz Józef Kapliński Krzysztof Stanisław Kurowski Leszek Grzegorz Iwaniec Jacek Jakub Tomasik Proxy Proxy at the date of the examination was granted: Dorota Anna Kania - joint proxy Assembly Shareholders Shareholders have undertaken, inter alia, the following resolutions: on April 27, distribution of profit for the year the acceptance of financial statements for the year 2010 and reports of the Company and the Group in Relevant checks during the fiscal year Control of the compliance and administrative decisions relating to environmental protection, conducted between February 16 - March 21, There were no significant abnormalities. 1.4 Employment Company employed in 2011, an average of 366 employees (previous year: 365 employees). 1.5 The financial statements for the previous year The financial statements for the year 2010 were audited by HLB Sarnowski &Wiśniewski Sp. z o. o. The audited consolidated opinion was qualified. Wording of the reservation of the opinion of the auditor for 2010 relates to the treatment of technological credit. In 2008, the Company received a loan for the purchase of technological equipment. After fulfilling the conditions stipulated in the credit is remitted regularly. In turn redeemed mortgage once the Company recognizes as revenue at the time of redemption. In our opinion, the cancellation of the loan should be accounted for similarly to grant the fixed assets. In the event of a settlement of this debt in accordance with MSR 20 net profit disclosed in the Company's financial statements would be lower by thousand PLN. Until 31 December 2010 the total value of the redeemed loan instalments amounted to thousand PLN.

8 Taking into account depreciation and deferred taxes, equity capital shown in the accompanying statement of financial position should be lower by thousand. The financial statements were approved by resolution of the Assembly Shareholders of 27 April The revised financial statements filed with the Tax Office on 29 April 2011 and District Court May 11, The financial statements were published in the Polish Monitor B No of 23 September Object of examination - statement of financial position as at 31 December 2011, total assets and liabilities in the amount of thousand PLN - profit and loss account for the financial year from 1 January 2011 to 31 December 2011 showing a net profit of thousand PLN - statement of comprehensive income for the period from 1 January 2011 to 31 December 2011 showing a total income of thousand PLN - statement of changes in equity for the financial year from 1 January 2011 to December showing an increase in equity by the amount of thousand PLN - statement of cash flows for the financial year from 1 January 2011 to 31 December 2011 showing a increase in cash during the financial year by an amount of thousand PLN - explanatory notes to financial statements drawn up on 31 December The identity of the entity authorized to audit financial statements The survey was conducted by ECA Seredyński i Partnerzy Sp. z o. o. based in Krakow, ul. Supniewskiego 11, entered the list of entities authorized to audit financial statements under the number The basis of a study is the agreement signed on 20 June 2011 with the Board RADPOL joint - stock company. The auditor was elected as the auditor of RADPOL joint -stock company Supervisory Board resolution of 17 June Auditor, representing an entity authorized and directing the auditor testing is Piotr Woźniak, the registration number We declare that both the entity authorized ECA Seredyński i Partnerzy Sp. z o.o, as well as comply with the auditor to express an unbiased and independent opinion on that report. The fact of impartiality has been confirmed in writing. The study was conducted in the month of November 2011 and February and March 2012 and ended on 5 March Availability of data and statements of the Company. There were no restrictions on the testing process. The investigator obtained all the necessary information and clarification. On 5 March the Board of Company confirmed the completeness of the Company in writing in the financial statements and a list of any contingent liabilities and informed about important events that occurred after 31 December 2011 to the date of the declaration.

9 FINANCIAL ANALYSIS 2. FINANCIAL ANALYSIS 2.1 General analysis of of the financial statement thousand PLN % thousand PLN % thousand PLN % assets Tangible fixed assets , , ,3 Intangible assets , , ,46 Goodwill 59 0,1 59 0,1 59 0,07 Stocks and shares , , ,34 Assets due to deferred income tax 739 0, , ,72 Other non-current asset 36 0,0 34 0,0 61 0,07 Fixed assets , , ,0 Supplies , , ,2 Receivables for goods and services , , ,0 Claims arising from the current income tax 161 0,1 16 0,01 0 0,0 Other receivables 400 0, , ,4 Other financial assets 0 0,0 2 0,0 0 0,0 Cash and cash equivalents , , ,8 Accruals 57 0,0 32 0,0 85 0,1 Assets held for sale 0 0,0 0 0, ,4 Current assets , , ,9 Assets , , , thousand PLN % thousand PLN % thousand PLN % Liabilities Base capital 772 0, , ,9 Called-up equity capital and assets of their own ,1 0 0, ,4 Reserve capital issue of shares , , ,9 Reserve capital from retained earnings 458 0, , ,8 The reserves , , ,6 Capital from revaluation , ,9 0 0,0 Undistributed profit from previous years

10 -697-0, , ,6 Net profit , , ,6 Equity capital , , Provisions for liabilities , , ,0 Long-term liabilities , , ,9 Short-term liabilities , , ,6 Accrued income , , ,5 Liabilities and provisions for liabilities , , ,0 Liabilities , , ,0 Percentage changes position profit and loss account 2011 thousand PLN 2011/2010 % 2010 thousand PLN 2010/2009 % 2009 thousand PLN Net revenues from sales of products, goods and materials Costs of products, goods and materials , , , , Gross profit from sales Cost of sales General and administrative expenses Acquisition costs Result from the sale Other operating income Other operating expenses Result from operating activities Financial income Financial costs Result from economic activity Extraordinary gains Extraordinary losses , , , , , , , , , , , , , , , , , , , , , ,0 0 0, ,0 0 0,0 0

11 Gross profit Income tax Other obligations to reduce profit Net results , , , , ,0 0 0, , , Selected financial ratios The balance sheet total thousand PLN Net profit thousand PLN PROFITABILITY RATIOS Net profit Total assets (state average) Profitability of assets ROA % 11,04 7,41 Net sales profitability net profit Income from sales % 19,34 12,06 Gross sales profitability result from the sale Income from sales % 25,31 17,46 Profitability of equity capital ROE net profit Equity capital (state average) % 15,67 10,84 LIQUIDITY RATIOS Liquidity I degree current assets short term liabilities ,18 1,88 Liquidity II degree current assets - stocks short term liabilities 1,25 1,20 Liquidity III degree

12 short-term investments short term liabilities 0,32 0,22 ACTIVITY INDICATORS Rapid turnover of receivables Receivables from deliveries and services (state average) Incomes from sales days Inventory turnover rate DEBS RATION The general level of debt Stocks (state average) Operating costs Liabilities and reserves for liabilities Total liabilities days % 19,57 23,85 Rotation speed of the obligations Commitment of supplies and services (state average) Operating costs days Sustainability of financing Equity capital + reserves and long-term liabilities Total liabilities % 85,92 84,80 OTHER INDICATORS Effective rate of income tax Income tax Gross profit % 19,07 20,53 (EBIT) Profit from operating activities (EBITDA) Operating profit before depreciation (EAT) Financial result Interpretation of selected financial indicators. The analysis was carried out at current prices, with details of the next two financial years, because since 2010, the Company, as an entity listed on the Stock Exchange, draw up financial statements in accordance with International Accounting Standards / International Financial Reporting Standards. In 2011, as in previous years, the main item of the assets of the Company are tangible assets, representing 43.3% of total assets, down by 2.8 p.p. compared to last year. However, the value of this item declined by PLN thousand in comparison to the previous reporting period. The main source of financing for the Company is equity. Their share in total liabilities increased by 5.4 percentage points from 67.7% in 2010 to 73.2% in The most important items are equity capital from the share issue of TPLN and capital reserves of TPLN

13 In the year studied, the growth rate of the basic costs of operating activities was lower than the growth in net sales, resulting in a profit on their core business of TPLN This result has been increased by other operating income in the amount of TPLN 2560 and financial income of 288 TPLN and adjusted for other operating expenses in the amount of TPLN 886 and the financial costs (TPLN 1.228), and also by the amount of income tax - at TPLN The results of each activity shown in the profit and loss for the period considered: PLN result from operating activities result of the business remaining operational result from financial activities -940 income tax - current part Income tax - deferred part 496 affected the financial result in the amount of Because of the increase due to sales and net earnings, improved return on assets ratios, sales, and equity. ROA Assets profitability ratio increased from 7.41% in 2010 (taking into account the corrected data) to 11.04% in financial year 2011, while the profitability rate of net sales of 12.06% in 2010 to 19.34% in The profitability ratio equity ROE has also improved : from 10.84% in 2010 to 15.67% in 2011, thus increasing the capacity of capital to generate profit. Liquidity ratios I, II and III degree adopted at the end of the year, respectively the following values: 2.18, 1.25 and The increase in liquidity ratios I and II degree means that the company faster than the previous year is unable to pay its current obligations. Analysis of the activity indices indicates extension of the collection of receivables for goods and services. In 2011, the accounts receivable turnover cycle was 73 days and was extended by 7 days compared to The average time settlement of liabilities has slightly changed from 33 to 37 days. Stock rotation period in the fiscal year 2011 was 98 days and is longer in comparison to 2010 by 18 days. The formation of the rate of stock rotation at current levels is due to increase in inventory levels by 3.5% over the prior year in total asset structure. The overall level of indebtedness of the Company decreased from 23.85% in 2010 to in 2011 due to repayment of bank loans.

14 DETAILED PART OF REPORT 3. DETAILED PART OF REPORT 3.1 Bookkeeping and internal control. The company has developed accounting policies approved by the Board, introduced with effect from Accounting policies take into account the nature of the business and is used in a continuous manner. Accounting policy was updated on 09/03/2011. Entries in the books are made in a sustainable manner. The way the records of economic events in the books allows the identification of the date of the business transaction, the source document and the amount and sign books of accounts, on which the operation was included. Accounting records are complete, correct and appropriate interaction with invoices or other source documents. The accounts are kept in a fair, accurate, and verifiable, using a computerized financial and accounting system, Symphony Finance and Accounting. Methods used by the Company of securing access to data and processing system is sufficient. Verification of assets and liabilities was carried out in accordance with the Accounting Act, and the results of the inventory have been properly accounted for in the books. Statutory frequency of inventory was maintained. Books are kept and stored in the office of the Company subject to the provisions of Chapter 8 of the Act. There is also a separate internal audit function. It was found that internal control ensures the identification and recording of business transactions, their unambiguous classification, proper documentation, to show the correct data in the financial statements and credit operations for the relevant periods. Study the internal control system was conducted to the extent to which it binds with the financial statements and internal controls involved in: - purchase and the settlement and related invoices - sale and settlement and related invoices - revenues and expenditures of funds - billing systems and payment of remuneration for work - stocks valuation and determine their validity and accuracy of estimating the stocks write-downs. It had to disclose all possible irregularities of the system. The study did not reveal significant irregularities in the operation of the internal control system. 3.2 Information on selected items of financial statements Tangible fixed assets Last inventory of fixed assets held Statutory frequency of inventory was maintained. Item right of perpetual usufruct buildings, premises and land and water engineering technical equipment and machines Gross value at 12/31/2011 TPLN % of consumption increase in examined year reduction in examined year , , ,

15 means of transport , other fixed assets , fixed assets in construction In the year examined, the Company incurred significant financial outlay on production line for extrusion and manufacturing facility. The position of the fixed assets under construction, among others have shown expenditures on building and thermal modernization sets to stretch the tube, which is the biggest item increases. Net value of fixed assets used by the Company under finance leases is TPLN 47. Company's right to dispose of fixed assets in property has been limited. In the credit technology in the parcel on which the investment is made, set up a mortgage simple and capped. The protection investment loan to purchase shares of the Company RURGAZ a judicial lien on fixed assets Intangible assets For intangible assets are included in software inventory and license the production of polymeric insulators Goodwill In the position shown goodwill in the amount TPLN 59 formed as a result of taking control of Elektroporcelana S.A.In 2010 the Company merged with Radpol S.A Stocks and shares In the position shown above all interest in the related RURGAZ Sp. z o.o Stocks This consists of the following elements: TPLN Materials Intermediates and products in progress finished products goods supply of advance 19 impairment Quantitative status was confirmed by physical inventory at the balance sheet Representative of the investigator participated in the observation of inventory. Not presented any objections inventory accuracy. Stocks in the warehouses were unnecessary or defective, in which the Company established valuation allowances. Valuation of materials and goods made at cost. Intermediates were valued at the cost of direct material and direct labor costs. Finished goods are valued on the basis of the calculation of production costs. Advances have been valued at nominal value. Advances have been documented bank statements.

16 Company's right to dispose of the stockpile has been reduced. In the credit investment in Deutsche Bank established a registered pledge on stocks Receivable for supplies and services Receivable for goods and services was confirmed on day at 65.53%. On the day of the survey the outstanding balance of supplies and services were billed at 51.64%. Receivables denominated in foreign currencies are converted at average exchange rate of the balance sheet date. For high-risk receivable were created corresponding write-downs, which reduced the amount of claims in the statement of financial position. The age structure of receivables: TPLN unexpired receivable overdue receivables to 90 days from 91 days to 180 days 74 from 181 days to 360 days 0 over 360 days 668 impairment charges Cash and cash equivalent Summary: TPLN cash on bank accounts cash in cash offices Cash in cash offices are confirmed by the memorandum of physical inventory conducted at the reporting date. Cash on bank accounts confirmations are confirmed bank balances at the balance sheet.

17 3.2.8 Equity capital Detailed information on capital is included in the general section of the report in section Equity is TPLN Most significant item in the equity capital of an issue of shares (TPLN ) and reserves (TPLN ) and net profit (TPLN ). Capital from revaluation has not changed over the period and is TPLN Capital reserve in the current year has increased by 4030 TPLN in regard to the announced purchase their own shares. The financial result is TPLN Reserves for liabilities. Summary: TPLN Reserve due to deferred income tax Reserve for pensions and similar benefits According to our discretion and in accordance with given us by the Board explained formed the reserve during the period the Company fully protect against the risk of having their sources in the reporting period Long-term liabilities. Summary: TPLN investment credit for the purchase of shares technology loan 985 commitment due to lease Long-term liabilities are documented contracts and acknowledgments of balances. Loans are recorded at the balance sheet balances acknowledgments. Accrued interest and charges were recorded in the corresponding period Short-term loans and borrowings. Summary: TPLN Short-term loans interest on short-term loans Loans are recorded at the balance sheet balances acknowledgments. Accrued interest and charges were recorded in the corresponding period Liabilities from supplies and services.

18 Commitment was confirmed at at 36.2%. By testing the balance was accounted for 80.52%. Liabilities denominated in foreign currencies are converted at average NBP exchange rate of n the balance sheet date. The time structure of liabilities: TPLN liabilities unexpired overdue liabilities to 90 days from 91 days to 180 days 36 from 181 days to 360 days 56 over 360 days 87 Total liabilities Other liabilities Summary: TPLN commitment to Social Insurance Institution 700 liability to salaries 672 advance payments for deliveries 376 Company Social Benefits Fund 364 liability to tax on goods and services 261 liability to income tax on individuals 161 other liabilities 72 liability to PFRON 4 other public service obligations Other liabilities have been verified statements, payroll and other documents. Other liabilities have been valued in the amount of the required payment Accrued income Summary: TPLN grants commercial premiums 880 other prepayments Information on selected items unconsolidated profit and loss account. Income and expenses are covered completely and result from properly maintained accounting records.

19 Eligibility of costs to the respective positions of calculation is correct. The main item other operating income is income from the redemption of the loan in the amount of technological TPLN 1147, while other operating expenses - write-downs of receivables and inventories of 604 TPLN and settlement in the amount of inventory shortages TPLN 102. Other financial income relates primarily to currency and interest on the funds in bank accounts, and financial costs of interest on bank loans. Both the calculation of income tax from legal persons as well as reserve and deferred tax liabilities are in the notes. 3.4 Other elements of financial statements and the report activities of the Company. Explanatory notes Explanatory notes to the financial (politics) the accounting and other explanatory notes are an integral component of the financial statements have been prepared in accordance with International Accounting Standards, International Financial Reporting Standards and related interpretations published in the form of European Commission, in the absence of these standards pursuant to the requirements of the Accounting Act and issued on the basis of implementing measures (hereinafter referred to as International Accounting Standards). Statement of comprehensive income Statement of comprehensive income have been prepared properly in accordance with International Accounting Standards. It was his association with a report on the financial situation, the individual profit and loss and accounts. Statement of Changes in Equity Statement of Changes in Equity have been prepared properly in accordance with International Accounting Standards. It was his association with financial statement and accounts. Statement of Cash Flows Statement of Cash Flows have been prepared properly in accordance with International Accounting Standards. It was his association with financial statement and accounts. Report of the Board of the Company s activities Report on the activities in the fiscal year includes data conform to the financial statements and shall include the information in accordance with the requirements of Article 49 of the Accounting Act. 3.5 Post balance sheet events 1. Acquisition of shares: On January 31, 2012 was the conclusion of the preliminary agreement, under which the parties are committed to concluding the sale of shares of the final agreement, under which RADPOL SA acquiring 100% shares in another company. Promised contract should be concluded by the deadline of (the limit is, however, extend this deadline by 7 days). Detailed information about the transaction is presented in Note Motivation program: On February 10, 2012 decision of the AGM implemented motivation program for members of the Board. The information for the incentive program in note 55.2.

20 3. Early repayment term technological: On February 17, 2012 the Company repaid in full its technological credit granted to the Company by the Treasury, acting through the National Bank in Warsaw. Technological loan was granted to finance the investment, "Construction of an industrial accelerator for radiation cross linking of heat shrinkable products. For details on early repayment of the technology loan please refer to note Conclusion of loan agreement to finance the acquisition of shares: 29 February 2012, the Company entered into a contract for the award by ING Bank Slaski SA loan TPLN 25,000 in order to finance investment - purchases 100% shares of another company. The term loan is 31 December Detailed information about the investment credit is given in note Conclusions from the the audit Based on our audit of the accounts of companies RADPOL Joint Stock Company, based in Człuchów states that: 1. financial statements for the year 2011 has been prepared correctly, the data contained in the financial statements comply with the relevant balances and turnover in the accounts, 2. principle of continuity was preserved balance, 3. the financial report was signed by the authorized person, 4. there were no phenomena and events indicating a violation of applicable laws. The test result the company's financial statements RADPOL SA for the year 2011the auditor presented in its opinion. Issued an unqualified opinion with explanatory notes. The report contains 28 pages signed by the auditor. Poznan, ECA Seredyński i Partnerzy Sp. z o. o. Piotr Woźniak Certified auditor Registration number Carrying out the audit on behalf of ECA Seredyński i Partnerzy Sp. z o. o. No. 3115