Annual report - HSE
Annual report - HSE
Annual report - HSE
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Committee work overview<br />
Besides discussing and assessing the adequacy of credit limits, which is its main and<br />
regular task, in 2012 the Committee dedicated a lot of its attention to formal arrangement<br />
of monitoring and recording of business events. In this view, the body discussed the <strong>HSE</strong><br />
Group’s Accounting manual, the basic part of which are the Group’s accounting policies,<br />
chart of accounts, as well as the Accounting rules of the Group and the company. The<br />
Committee approved the final version of the discussed documents, which were prepared<br />
by the accounting departments within the <strong>HSE</strong> Group, and submitted them to the Managing<br />
director to sign them.<br />
The Committee also monitored the preparation of the Controlling Manual of the company<br />
and the Group, which should be finished and signed in 2013, according to the adopted<br />
decisions. The main purpose of the Controlling Manual, which is a follow-up of the<br />
Accounting Manual, will be more current preparation of monthly and periodic <strong>report</strong>s, as<br />
well as clearer instructions regarding identification of deviations from business plans and<br />
proposing of correctional measures.<br />
Due to inconsistencies during the preparation of bases for investments and their realisation<br />
by the Group companies, the R&D Sector drafted Rules on Deciding, Valuation, Monitoring<br />
and Performing of Projects. The document was submitted also for the Committee’s review<br />
of amendments and is still in the proposing phase.<br />
Within the scope of discussing credit limits, the Committee prepared specific<br />
recommendations to colleagues and the Managing Director of the company with the<br />
purpose of managing the risks arising for the primary activity, i.e. trading with electricity<br />
and relative products (ex. emission coupons within the framework of ETS).<br />
Due to volatile market conditions and the need of fact reactions in determining limits,<br />
the Committee adopted a decision in line with its Rules of Procedure and advised the<br />
company’s Managing Director to appoint a sub-committee for credit risks. The Subcommittee<br />
already set its Rules of Procedure, which were confirmed by the Committee, so<br />
the sub-committee could start with its activities by the end of the year. The Committee was<br />
acquainted also with the <strong>HSE</strong>’s intention to enter retail energy market and adopted certain<br />
recommendations in relation to this.<br />
In 2012, the Committee implemented the practice of continuous monitoring of the<br />
investment project Unit 6 at TEŠ and relating liquidity conditions within the company and<br />
the Group. In terms of financial position analysis, the Committee was acquainted with the<br />
<strong>report</strong> ‘<strong>HSE</strong> company financial ratios from the perspective of Article 14 of ZFPPIPP’.<br />
Its other regular tasks include review of annual <strong>report</strong>s, monitoring of business plan<br />
implementation, analysis of business procedures and preparation of work programme for<br />
the next business periods.<br />
Conclusion<br />
The <strong>Annual</strong> Report summary shows that, in spite of complex circumstances in 2012,<br />
the Committee monitored and discussed all key risks of the company, prepared its<br />
recommendations and submitted its decisions for signature of the Managing Director, the<br />
subsidiaries’ managing directors and other people in charge.<br />
It should be taken into account, that the Committee is an advisory body; therefore, its<br />
decisions do not have executive power, which is the right way as it could shake the question<br />
of responsibility.<br />
Ljubljana, 4 March 2013<br />
Borut Meh<br />
President of the RMC<br />
<strong>Annual</strong> Report <strong>HSE</strong> 2012<br />
2 Business Report<br />
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