Dear shareholders, please allow us to acquaint you with the following commentary on the differences between the audited and non-audited version of the annual report for 2005. The Czech National Bank notified us of the differing data listed below in its letter of 23.10.2006, in which it called on our company to explain these findings. This is what we are now doing by releasing this explanatory commentary.Commentary on differences between the UNIPETROL, a.s. audited and unaudited consolidated annual report for 2005
1. Ownership interests
The difference between the audited and unaudited annual report lies in the fact that in the table of UNIPETROL a.s. ownership interests in the unaudited annual report (page 16), the companies are divided into the categories Subsidiary, Affiliated and Other, while in the audited annual report, these companies are only divided into the categories Subsidiary and Other, where Other companies includes companies that were included in the Affiliated category in the unaudited annual report (i.e. AGROBOHEMIE a.s. and ALIACHEM a.s.).
This is why there is also a difference in the value of total ownership interests in Other companies, expressed in CZK, between both annual reports. In the unaudited annual report, the total ownership interest in Other companies is CZK 289,100,500 and in the audited annual report the total ownership interest in Other companies is CZK 2,466,439,740 (which includes ownership interests that were listed separately as Affiliated companies in the unaudited annual report, with a value of CZK 2,177,339,240).
The appearance of differing tables was probably due to the incorrect synchronisation of both documents.
2. Remuneration for the auditor of the financial statement for the year 2005, KPMG Česká republika, s.r.o.
The change in data regarding remuneration for the auditor, KPMG Česká republika, s.r.o., was not an error, but a more precise specification of data in the audited annual report.
3. Overview of changes in equity
The audited annual report was to have presented an overview for the last two accounting periods only, however due to an oversight, the heading indicating the last three accounting periods was not changed.
4. Change in data concerning Supervisory Board powers
The changes in data concerning Supervisory Board powers in the audited annual report, in the sense of a more precise definition of Supervisory Board powers, particularly in relation to the Supervisory Board's prior approval of the acquisition, transfer or pledge of the company's ownership interests in another legal entity, or the acquisition, transfer, pledge or lease of company assets, as well as investment projects whose value, in individual cases, exceeds the value specified in the company's articles of association, correspond to the company's valid articles of association. The changes, or rather more precise definition of Supervisory Board powers, and resulting difference in text between both annual reports, was not sufficiently commented due to an oversight.
5. Change of data in the Board of Directors' report on company activities and the status of company assets in 2005
The change in data contained in this chapter of the audited annual report compared to the unaudited annual report took place due to a more precise specification of data.