VI. Company Finances

1. Financial year of the Company shall be calendar year subject to section 2 below.
2. The first full financial year of the Company shall begin after the decision to enter the Company into Commercial Register has been issued and ends on 31 December, 1995.

Books of the Company shall be kept as per the Accountancy Law.

1. The Company shall form the following funds and capitals:
   1. the share capital,
   2. the reserve fund capital,
   3. funds of a reserve nature,
   4. other reserve funds,
   5. the Company fund for social benefits.
2. By resolution of the General Meeting the Company may form and dissolve other funds to cover specific losses or expenditures in the beginning or during financial year.

The Management Board of the Company is under obligation to:

1. Prepare financial report along with the Management Board's report for the previous financial year within three months of the accounting reference date.
2. Have the financial report audited,
3. Submit to the Supervisory Board for examination the documents as per point 1 above along with the auditor's opinion.
4. Present to the General Meeting the documents as per point 1 above along with the auditor's opinion and the Supervisory Board's report as per § 33, section 1, point 3 within four months of the accounting reference date.

1. The manner of appropriation of the Company net profits shall be resolved by the General Meeting.
2. The General Meeting shall transfer at least 8% of the net annual profits to form reserve fund capital until such fund attains a level of at least one-third of the share capital.
3. The General Meeting may appropriate part of the net profit for:
   1. Dividend for the shareholders,
   2. Other capitals and funds,
   3. Other purposes.
4. Dividend shall be established on the date of the Ordinary General Meeting for the financial year, but the payment of dividend shall be postponed for two months since that date.