This document is a free translation
of the Polish original. Terminology current
in Anglo-Saxon countries has been used where practicable for the purposes
of this translation in order to aid understanding. The binding Polish original
should be referred to in matters of interpretation.
Independent Auditor's Report
To the General
Shareholders’ Meeting and Supervisory Board
of ING Bank Śląski S.A.
Report on the Audit of the Annual Consolidated Financial Statements
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Opinion
We have audited the accompanying annual consolidated financial statements of ING Bank Śląski S.A. Group (the “Group”), whose parent entity is ING Bank Śląski S.A. (the „Parent Entity”), which comprise:
— the consolidated statement of financial position as at 31 December 2020;
and, for the period from 1 January to 31 December 2020:
— the consolidated statement of profit or loss;
— the consolidated statement of comprehensive income;
— the statement of changes in consolidated equity;
— the consolidated statement of cash flows;
and
— accounting policy and additional explanatory notes;
(the “consolidated financial statements”).
In our opinion, the accompanying consolidated financial statements of the Group:
— give a true and fair view of the consolidated financial position of the Group as at 31 December 2020 and of its consolidated financial performance and its consolidated cash flows for the financial year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union (“IFRS EU”) and the adopted accounting policy;
— comply, in all material respects, with regard to form and content, with applicable laws and the provisions of the Parent Entity's articles of association.
Our audit opinion on the consolidated financial statements is consistent with our report to the Audit Committee dated 12 March 2021.
Basis for Opinion
We conducted our audit in accordance with:
— International Standards on Auditing as adopted by the National Council of Statutory Auditors as National Standards on Auditing (the “NSA”) by the resolution no. 3430/52a/2019 dated 21 March 2019 and the resolution no. 1107/15a/2020 dated 8 September 2020; and
— the act on statutory auditors, audit firms and public oversight dated 11 May 2017 (the “Act on statutory auditors”); and
— regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC (the “EU Regulation”); and
— other applicable laws.
Our responsibilities under those regulations are further described in the Auditor’s Responsibility for the audit of the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Ethics
We are independent of the Group in accordance with International Ethics Standards Board for Accountants International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”) as adopted by the resolution of the National Council of Statutory Auditors, together with the ethical requirements that are relevant to our audit of the consolidated financial statements in Poland and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. During our audit the key statutory auditor and the audit firm remained independent of the Group in accordance with requirements of the Act on statutory auditors and the EU Regulation.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. They are the most significant assessed risks of material misstatements, including those due to fraud, described below and we performed appropriate audit procedures to address these matters. Key audit matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon we have summarised our response to those risks. We do not provide a separate opinion on these matters. We have determined the following key audit matters:
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Expected credit losses on loans and other receivables from customer |
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The carrying
amount of loans and other receivables from customers (excluding those
measured at fair value through profit or loss) amounted to PLN 125,992.4 million as at
31 December 2020. The charge for expected credit losses relating to the
aforementioned loan portfolio amounted to minus |
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Key audit matter |
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Our response |
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The procedures to estimate credit losses in respect to loans and other receivables from customers at amortized cost comprise two major phases – identification of the impairment triggers or significant increase of credit risk and measurement of expected credit losses.
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Our audit procedures conducted with the support of our internal financial risk and IT system risk specialists included among others: · assessment of the Group’s methodology used for estimating expected credit losses in terms of their compliance with |
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The impairment triggers and triggers indicating significant increase of credit risk are identified mainly on the basis of payment delinquencies, economic and financial standing of the debtor and current probability of default level as compared to the date of initial recognition of the exposure, while allowances for expected credit losses are estimated on an individual basis and collectively for homogenous loan portfolios collectively using statistical methods on the basis of risk parameters. The significant assumptions for the portfolio approach are risk parameters such as probability of default (PD), loss given default (LGD) or exposure at default (EAD), which are determined for homogenous groups of loan exposures based on historical data taking into account forward looking information on expected macroeconomic conditions. Allowances for credit losses are an estimate of expected credit losses on loans and other receivables from customers as at the balance sheet date to be incurred within the next 12 month period or within the lifetime of the exposure. As required by the relevant accounting standard, the measurement of expected credit losses takes into account forecasts of future macroeconomic conditions. The adoption of assumptions regarding the expected macroeconomic scenarios and the probability of their occurrence requires the Management of the Parent Entity to use substantial judgement. Furthermore, estimating allowances for credit losses involves certain uncertainty and requires from the Management of the Parent Entity to use substantial judgement. The main risk area comprises the failure to identify existing impairment triggers and significant increase of credit risk as well as the application of inappropriate data to calculate the parameters of statistical model, including use of inappropriate macroeconomic assumptions, which may not adequately reflect the expected credit losses existing as at a given balance sheet date and for loans that are assessed on an individual basis there is a risk of applying inappropriate assumptions regarding recovery scenarios, valuation of collateral or assumed timing of |
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the requirements of applicable financial reporting standards and market practice; · assessment of the design and implementation and operating effectiveness of relevant internal controls, including general IT system controls, applied in the process of identification of impairment or significant increase in credit risk triggers and estimation of expected credit losses. · analysis of the structure and dynamics of the loan portfolio including quality ratios and provision coverage (i.e. share of overdue loans, coverage ratio) in order to identify groups of loans with underestimated expected credit losses. · analysis of appropriateness of Bank’s identification of impairment and significant increase in credit risk triggers for the entire population of loans (overdue status, significant increase in PD, forbearance) · independent recalculation of expected credit losses for a sample of individually assessed impaired loans; · critical assessment of assumptions and input data used for key credit risk parameters, PD, LGD and EAD including analysis of results of tests performed by the Bank regarding appropriateness of models used for estimating of expected losses; · recalculation of selected risk parameters and expected credit losses for a selected sample of exposures assessed collectively; · an independent assessment of adequacy of provisions for expected credit losses through comparison with loss incurred historically on a given portfolio; · for loans and other receivables from customers assessed individually on the basis of a selected sample, including borrower’s exposure to impact of COVID-19 – assessment of the appropriateness of identification of significant increase in credit risk and impairment triggers and for impaired assets – critical assessment of |
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expected cash flows. Moreover, there is a risk of errors and risk of frauds occurring during the impairment allowances calculation process. A relatively small change in significant assumptions and model parameters, such as data and methods, may have a significant impact on the estimated credit losses of the Group. Due to COVID-19 pandemic and its impact on macroeconomic environment, estimation uncertainty of expected credit losses increased as compared to previous years. We have considered this area as a key audit matter because of the size of the loan portfolio and the significant impact that estimation of expected credit losses may have on the consolidated financial statements |
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relevant assumptions adopted by the Group and independent recalculation of impairment allowances. · evaluation of completeness and accuracy of disclosures in the consolidated financial statements in respect to key estimates in respect to expected credit losses, including uncertainty resulting from possible impact of COVID-19 pandemic on relevant model parameters |
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Conduct risk, legal claims and customer complaints |
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Due to the risk related to the current and potential legal claims with borrowers who have obtained mortgage loans indexed to CHF in the past, as at 31 December 2020 the Group recognized decrease in expected contractual cash flows as reduction in gross amounts of loans in the amount of PLN 300.0 million and the provisions of PLN 11.8 million. Provisions for other legal claims and conduct risk amounted to PLN 21.4 million. These matters were presented in Note 33 to the consolidated financial statements |
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Key audit matter |
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Our response |
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Group operating on regulated markets is exposed to the risk of changes in law rulings and events (other than those arising from credit risk) that may result in lower than contractual cash flows from financial contracts with customers or in an obligation or liability arising from past events, the settlement of which will require outflow of resources embodying economic benefits ("risk amount"). We consider identification of such events by the Group, providing a reliable estimate of the risk amount and disclosures in this respect to be the key audit matter. As at 31 December 2020, in particular, it refers to the impact of the decision of the Court of Justice of the European Union ("CJEU") of 3 October 2019 (Case C-260/18). Although this decision did not refer directly to Bank, it has resulted in consequences we refer to below.
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Our audit procedures included among others: · assessment of the accounting policy and methodology for calculating the Group's estimates in relation to the recognition in the consolidated financial statements of the financial effects of CJEU judgment and other conduct risks, litigation and customer complaints; · assessment of the design and effectiveness of internal controls in the scope of identification, monitoring and estimation of conduct risk and risk arising from complaints and disputes with clients; · analysis of correspondence, reports and post-audit recommendations received by the Group from regulatory authorities; · assessment of the Group's internal analyzes and reports in the area of compliance risk and conduct risk;
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As a result of the decision, the number of court claims against the Group filed by the borrowers who were granted mortgage loans indexed to CHF ("CHF loans") in the past years increased. The Group assessed that this growth may continue for some time in the future, which in the absence of a single court ruling in this respect may result in lower expected cash flows from CHF loans than those resulting from the contractual agreements. In order to determine an estimate expected loss from the CHF loan portfolio, the Group assessed, among other things, the probability of various scenarios with respect to future possible court judgments with respect to claims concerning CHF loans granted by the Group, estimated the most probable number of new court claims and the time horizon in which they may occur. Estimates regarding the risk of mortgage loans indexed to CHF are subject to uncertainty in respect to assumptions. Relatively insignificant change in assumptions may have a significant impact on Group’s losses. Due to abovementioned reasons preparing a reasonable risk estimate and disclosure in this regard in the financial statements are considered key audit matter.
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· analysis of operational risk event database in terms of completeness of identified conduct risks; · analysis of complaints submitted by customers and their impact (including potential) on the Group; · analysis of confirmations of court cases received from external legal counsel representing the Group in proceedings and the estimation of financial effects resulting from these cases made by external legal counsel; · assessment of the rationality of assumptions regarding the number of expected claims from customers on the basis of trends in this respect observed in the Group, as well as the scale of complaints reported in other disputes in previous years; · historical analysis of the accuracy of estimates made in past periods from the perspective of losses that occurred in subsequent periods; · analysis of the correctness of significant input data used to prepare risk estimates resulting from judgment of the CJEU by agreeing them to the relevant IT systems of the Group; · analysis of the sensitivity of estimates to changes in relevant assumptions and taking into account the above, assessment whether the adopted level of significant assumptions indicates the bias of the Management Board of the Parent Entity; · our independent determination of the range of reasonable assumptions, including alternative assumptions, making our own estimation on this basis and comparing it with the estimation of the Group; · assessment of the completeness and correctness of disclosures required by International Financial Reporting Standards that are related to the presented estimates. |
Responsibility of the Management Board and Supervisory Board of the Parent Entity for the Consolidated Financial Statements
The Management Board of the Parent Entity is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards, as adopted by the European Union, the adopted accounting policy, the applicable laws and the provisions of the Parent Entity's articles of association and for such internal control as the Management Board of the Parent Entity determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Management Board of the Parent Entity is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management Board of the Parent Entity either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
According to the accounting act dated 29 September 1994 (the “Accounting Act”), the Management Board and members of the Supervisory Board of the Parent Entity are required to ensure that the consolidated financial statements are in compliance with the requirements set forth in the Accounting Act. Members of the Supervisory Board of the Parent Entity are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibility for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with NSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
The scope of audit does not include assurance on the future viability of the Group or on the efficiency or effectiveness with which the Management Board of the Parent Entity has conducted or will conduct the affairs of the Group.
As part of an audit in accordance with NSAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
— identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
— obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control;
— evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management Board of the Parent Entity;
— conclude on the appropriateness of the Management Board of the Parent Entity’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report on the audit of the consolidated
financial statements to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report on the audit of the consolidated financial statements. However, future events or conditions may cause the Group to cease to continue as a going concern;
— evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
— obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee of the Parent Entity regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We provide the Audit Committee of the Parent Entity with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Audit Committee of the Parent Entity, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current reporting period and are therefore the key audit matters. We describe these matters in our auditors’ report on the audit of the consolidated financial statements unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication
Other Information
The other information comprises:
— the selected financial data;
— the Management Board report on activities of ING Bank Śląski Group for the year ended 31 December 2020 (the “Report on activities”), including letter from the Chairman, — the statement of the Management Board regarding the preparation of the separate financial statements, consolidated financial statements and report on activities, the Management Board’s information regarding the appointment of the audit firm and the corporate governance statement, which is a separate part of the Report on activities;
— the separate report on non-financial information referred to in art. 49b paragraph 9 of the Accounting Act;
— Report of the Supervisory Board on the results of assessment of the Annual Financial Statements of ING Bank Śląski S.A. for 2020
— the Supervisory Board’s assessment of the consolidated financial statements and the Report on activities;
— Supervisory Board’s Assessment of ING Bank Śląski S.A. Group Operations in 2020; and
— representation of the Supervisory Board concerning the Audit Committee
(the “Other information”).
Responsibility of the Management Board and Supervisory Board
The Management Board of the Parent Entity is responsible for the Other information in accordance with applicable laws.
The Management Board and members of the Supervisory Board of the Parent Entity are
required to ensure that the report on activities of the Group for the year ended 31 December 2020 (the “Report on activities”), including the corporate governance statement and the report on non-financial information referred to in art.
55 paragraph 2c of the Accounting Act are in compliance with the requirements set forth in the Accounting Act.
Auditor’s Responsibility
Our opinion on the consolidated financial statements does not cover the Other information.
In connection with our audit of the consolidated financial statements, our responsibility was to read the Other information and, in doing so, consider whether the Other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement in the Other information, we are required to report that fact.
In accordance with the Act on statutory auditors our responsibility was to report if the Report on activities was prepared in accordance with applicable laws and the information given in the Report on activities is consistent with the consolidated financial statements.
Moreover, in accordance with the requirements of the Act on statutory auditors our responsibility was to report whether the Group included in the statement on corporate governance information required by the applicable laws and regulations, and in relation to specific information indicated in these laws or regulations, to determine whether it complies with the applicable laws and whether it is consistent with the consolidated financial statements and to inform whether the Group prepared a separate report on non-financial information.
Opinion on the Report on Activities
Based on the work undertaken in the course of our audit of the consolidated financial statements, in our opinion, the accompanying Report on activities, in all material respects:
— has been prepared in accordance with applicable laws, and
— is consistent with the consolidated financial statements.
Opinion on the Statement on Corporate Governance
In our opinion, the corporate governance statement, which is a separate part of the Report on activities, includes the information required by paragraph 70 subparagraph 6 point 5 of the Decree of the Ministry of Finance dated 29 March 2018 on current and periodic information provided by issuers of securities and the conditions for recognition as equivalent of information required by the laws of a non-member state (the “decree”).
Furthermore, in our opinion, the information identified in paragraph 70 subparagraph 6 point 5 letter c-f, h and letter i of the decree, included in the corporate governance statement, in all material respects:
— has been prepared in accordance with applicable laws; and
— is consistent with the consolidated financial statements.
Information about the Statement on Non-financial Information
In accordance with the requirements of the Act on statutory auditors, we report that the Group has prepared a separate report on non-financial information referred to in art. 55 paragraph 2c of the Accounting Act.
We have not performed any assurance procedures in relation to the separate report on non-financial information and, accordingly, we do not express any assurance conclusion thereon.
Statement on Other Information
Furthermore, based on our knowledge about the Group and its environment obtained in the audit of the consolidated financial statements, we have not identified material misstatements in the Report on activities and the Other information.
Report on Other Legal and Regulatory Requirements
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Information on Compliance with Prudential Regulations
The Management Board of the Parent Entity is responsible for the Group’s compliance with the applicable prudential regulations defined in separate laws, in particular for the appropriate determination of the capital ratios.
Our responsibility was to inform in our auditor’s report whether the Group complies with the applicable prudential regulations defined in separate laws, in particular whether the Group appropriately determined the capital ratios presented in note 4” Capital adequacy” in section Risk management and capital.
The audit objective was not to express an opinion on the Group’s compliance with the applicable prudential regulations and therefore we do not express such an opinion.
Based on our audit of the consolidated financial statements of the Group, we inform that we have not identified any instances of non-compliance, in the period from 1 January to 31 December 2020, of the Group with the applicable prudential regulations, defined in separate laws, in particular with respect to the determination of the capital ratios as at 31 December 2020, that could have a material impact on the consolidated financial statements.
Opinion on the compliance of the consolidated financial statements prepared in the single electronic reporting format with the requirements of the regulations on technical standards on the specification of a single electronic reporting format
As part of our audit of the consolidated financial statements we were engaged to perform a reasonable assurance engagement in order to express an opinion on whether the consolidated financial statements of the Group as at 31 December 2020 and for the year then ended prepared in the single electronic reporting format included in the reporting package named ‘EN_Consolidated_Financial_Statements_of_ING Bank Slaski Group_2020.zip’ (the ‘consolidated financial statements in the ESEF format’) were tagged in accordance with the requirements specified in the Commission Delegated Regulation (EU) of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format and other Commission Delegated Regulations (EU) with respect to updates of the taxonomy laid down in the regulatory technical standards for the single electronic reporting format, hereinafter jointly referred to as regulatory technical standards on ESEF (the ‘ESEF RTS’) and meet the technical conditions of a single electronic reporting format which are specified in these regulations.
Responsibility of the Management Board and Supervisory Board of the Parent Entity
The Management Board of the Parent Entity is responsible for the preparation of consolidated financial statements in the ESEF format in accordance with the tagging requirements and technical conditions of a single electronic reporting format which are specified in the ESEF RTS. Such responsibility includes the
selection and application of appropriate XBRL tags using the taxonomy specified in the ESEF RTS.
This responsibility of the Management Board of the Parent Entity includes designing, implementing and maintaining internal control relevant to the preparation of the consolidated
financial statements in the ESEF format that is free from material non-compliance with requirements specified in ESEF RTS, whether due to fraud or error.
The members of the Parent Entity’s Supervisory Board are responsible for overseeing the financial reporting process, including the preparation of financial statements in the format required by applicable law.
Auditor’s Responsibility
Our objective is to issue an opinion about whether the consolidated financial statements in the ESEF format were tagged in accordance with the requirements specified in the ESEF RTS and meet the technical conditions of a single electronic reporting format specified in those regulations.
We conducted our engagement in accordance with International Standard on Assurance Engagements 3000 (revised), 'Assurance Engagements Other Than Audits or Reviews of Historical Financial Information' as adopted by the National Council of Statutory Auditors ('NCSA') by resolution no. 3436/52e/2019 dated 8 April 2019 as National Standard on Assurance Engagement 3000 (revised) ('KSUA 3000 (Z)'). That standard requires that the auditor plan and perform procedures to obtain reasonable assurance about whether the consolidated financial statements in the ESEF format were prepared in accordance with specified criteria.
Reasonable assurance is a high level of assurance, but it is not guaranteed that the assurance engagement conducted in accordance with KSUA 3000 (Z) will always detect material non-compliance with requirements specified in the ESEF RTS.
The procedures selected depend on our judgment, including the assessment of the risks of material non-compliance due to fraud or error.
In making those risk assessments, the auditor has considered internal controls relevant to the preparation of the consolidated financial statements in the ESEF format in accordance with the specified criteria in order to design procedures that are appropriate, which provide the auditor with sufficient and appropriate evidence under the circumstances. The assessment of internal controls was not performed for the purpose of expressing an opinion thereof. The procedures performed by the auditor also included assessing the appropriateness of the subject matter and the suitability of the criteria used under the circumstances.
Our procedures included, in particular:
— obtaining an understanding of the process of selection and application of XBRL tags by the Parent Entity and maintaining compliance with the ESEF RTS, including an understanding of the operation of internal control relevant to this process,
— assessing compliance with the technical conditions on the specification of a single electronic reporting format, including the use of the XHTML format,
— agreeing [on a selected sample] the tagged information included in the reporting package containing the consolidated financial statements in the ESEF format to the consolidated financial statements of the Group presented in human-readable format,
— evaluating the completeness of tagging of information in the consolidated financial statements in the ESEF format using XBRL tags,
— assessing whether the XBRL tags from the taxonomy specified in the ESEF RTS used by the Parent Entity were properly applied and that taxonomy extensions were used where the relevant elements have not been identified in the primary taxonomy specified in the ESEF RTS, including whether the applied taxonomy extensions were correctly anchored in the primary taxonomy specified in the ESEF RTS.
The firm applies International Standard on Quality Control 1 as adopted by National Council of Statutory Auditors by resolution no 2040/37a/2018 dated 3 March 2018 (with subsequent amendments) as national standard on quality control and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
We have complied with the independence and other ethical requirements of the IESBA Code which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior as well as other independence and ethical requirements, applicable to this assurance engagement in Poland.
Defining the criteria
The criteria for assessing compliance of the consolidated financial statements in the ESEF format are defined in the ESEF RTS.
Opinion
Our opinion has been formed on the basis of, and is subject to, the matters outlined above.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on assurance engagement.
In our opinion, the consolidated financial statements in the ESEF format as at 31 December 2020 and for the year then ended was prepared, in all material respects, in accordance with the requirements of the ESEF RTS.
Statement on Services Other than Audit of the Financial Statements
To the best of our knowledge and belief, we did not provide prohibited non-audit services referred to in art. 5 paragraph 1 second subparagraph of the EU Regulation and art. 136 of the act on statutory auditors.
Services other than audit of the financial statements, which were provided to the Group and entities under the control of the Parent Entity in the audited period are listed in “Other information” of the Management’s Board report on activities.
Appointment of the Audit Firm
We have been appointed for the first time to audit the annual consolidated financial statements of the Group by resolution of the Supervisory Board dated 18 January 2013 and reappointed in the following years, including the resolution dated 30 June 2020, to audit the annual consolidated financial statements for the year ended 31 December 2020. Our period of total uninterrupted engagement is 8 years, covering the periods ended 31 December 2013 to 31 December 2020.
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On behalf of audit firm |
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KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k. |
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Registration No. 3546 |
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Signed on the Polish original |
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Marcin Dymek |
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Key Statutory Auditor |
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Registration No. 9899 |
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Limited Partner, Proxy |
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Warsaw, 12 March 2021 |
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