In its capacity as the control body, the Supervisory Board reviewed documents and written materials which included information about strategic and operational management of the Company.
The Supervisory Board performed its control function by discussing in detail the individual issues at the Supervisory Board meetings, based on supporting materials prepared by the Board of Directors. The members of the Board of Directors as well as other invited members of the Company‘s management participated in meetings of the Supervisory Board and its Committees.
In 2009, within the framework of its control activities, the Supervisory Board focused also on reviewing effectiveness and efficiency of the management and control system of the Company, including efficiency of the internal audit. The Supervisory Board states that the management and control system is functioning and resistant.
The Supervisory Board reviewed the ordinary financial statements for year 2009, submitted by the Board of Directors, and found them to be prepared based on properly conducted accounting procedures and to be in compliance with the regular reports on the bank‘s financial position. Furthermore, the Supervisory Board reviewed the proposal of the Board of Directors to allocate the Company‘s profit after tax as at 31 December 2009 in the amount of CZK 739,667,774.82 and stated that this proposal was in compliance with legal regulations and the Articles of Association of the Company. The Supervisory Board will inform the sole shareholder of the Company on the results of its review performed.
The Supervisory Board noted the report for 2009 of 25.2.2010 prepared by an independent auditor, the company Deloitte Audit s.r.o. with its registered office 186 00 Prague 8, Karlín, Karolinská 654/2, Corporate ID 49620592. The Supervisory Board understood from this report that the independent audit of the ordinary financial statements for 2009 had been performed in accordance with the relevant legal regulations and with valid auditing standards. The independent auditor expressed an opinion without reservations on the ordinary financial statements as at 31 December 2009 concluding that the financial statements give a true and fair view of the financial position of the Company and of the results of its financial performance in accordance with the accounting regulations applicable in the Czech Republic.
The Supervisory Board recommends the sole shareholder to approve the ordinary financial statements for year 2009. The Supervisory Board also recommends the sole shareholder to approve the proposal of the Board of Directors to allocate the Company‘s profit after tax as at 31 December 2009 in the amount of CZK 739,667,774.82 as follows: undivided profit CZK 739,667,774.82.
The Supervisory Board, in compliance with legal regulations, reviewed the Report on Relations between related parties as at 31 December 2009, prepared by the Board of Directors of the Company in accordance with Section 66a, subsection 9 of the Commercial Code. The Supervisory Board states that the Company did not suffer any loss resulting from the relations between the related parties in the accounting period from 1 January 2009 to 31 December 2009.
Prague, 1 April 2010
The Supervisory Board of Modrá pyramida stavební spořitelna, a.s.