TRANSLATORS’ EXPLANATORY NOTE
The
English
content
of
this
report
is
a
free
translation
of
the
registered
auditor’s
report
of
the
below-
mentioned
Polish
Company.
In
Poland
statutory
accounts
as
well
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report
should
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and
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in
Polish
and
in
accordance
with
Polish
legislation
and
the
accounting
principles
and
practices generally adopted in Poland.
The
accompanying
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reclassified
or
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countries
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adopted
to
the
extent
practicable.
In
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interpreting
the
terminology, the Polish language version is binding.
PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k., Andersia Business Center, Plac Andersa 7,
61-894 Poznań, Polska, T: +48 (61) 851 1500, F: +48 (61) 851 1501, www.pwc.com
PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k., entered in the National Court Register maintained by the District Court for the
Capital City of Warsaw under entry number KRS 0000750050, Tax Identification Number 526-021-02-28. The company’s registered office is at ul.Polna 11, Warsaw,
Poland.
Independent Registered Auditor’s Report
To the General Shareholders’ Meeting and the Supervisory Board of ENEA S.A.
Report on the audit of consolidated financial statements
Our opinion
In our opinion, the accompanying annual consolidated financial statements:
•
give a true and fair view of the consolidated financial position of the group ENEA S.A (the
“Group”), in which ENEA S.A is the parent entity (the “Parent Company”) as at 31 December 2021
and the Group’s consolidated financial performance and the consolidated cash flows for the year
then ended in accordance with the applicable International Financial Reporting Standards as
adopted by the European Union and the adopted accounting policies;
•
comply in terms of form and content with the laws applicable to the Group and the Parent
Company’s Articles of Association.
Our opinion is consistent with our additional report to the Audit Committee issued on the date of this
report.
What we have audited
We have audited the annual consolidated financial statements of the Group ENEA S.A. which
comprise:
•
the consolidated statement of financial position as at 31 December 2021;
and the following prepared for the financial year from 1 January to 31 December 2021:
•
the consolidated statement of comprehensive income;
•
the consolidated statement of changes in equity;
•
the consolidated statement of cash flows, and
•
the additional information and explanations, including a description of the adopted accounting
policies and other explanatory notes.
Basis for opinion
Basis for opinion
We conducted our audit in accordance with the National Standards on Auditing in the wording of the
International Standards on Auditing as adopted by the resolution of the National Council of Statutory
Auditors (“NSA”) and pursuant to the Law of 11 May 2017 on Registered Auditors, Registered Audit
Companies and Public Oversight (the “Law on Registered Auditors”) and the Regulation (EU) No.
537/2014 of 16 April 2014 on specific requirements regarding the statutory audit of public-interest
entities (the “EU Regulation”). Our responsibilities under NSA are further described in the Auditor’s
responsibilities 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.
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Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code) as adopted by resolution of the National Council of
Statutory Auditors and other ethical requirements that are relevant to our audit of the financial
statements in Poland. We have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. During the audit, the key registered auditor and the registered
audit firm remained independent of the Group in accordance with the independence requirements set
out in the Act on Registered Auditors and in the EU Regulation.
Our audit approach
•
The overall materiality threshold for the audit
was set at PLN 85 million which represents
2.5% of EBITDA (determined at the audit
planning stage), as defined in the ‘Operating
segments’ note
•
We have audited the Parent Company and
22 subsidiaries in Poland.
•
Our audit covered 94% of the Group’s
revenue and 96% of the value of total assets
of all consolidated Group companies before
consolidation eliminations.
•
Impairment of non-current assets
•
Claims for non-contractual use of land
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where the Parent
Company’s Management Board made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and considering future events that are
inherently uncertain. As in all of our audits we also addressed the risk of management override of
internal controls, including among other matters, consideration of whether there was evidence of bias
that represented a risk of material misstatement due to fraud.
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We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operated.
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall materiality for the consolidated financial statements as a whole, as set out in the
table below. These, together with qualitative considerations, helped us to determine the scope of our
audit and the nature, timing and extent of our audit procedures and to evaluate the effect of
misstatements, if any, both individually and in aggregate on the consolidated financial statements as a
whole.
Overall Group materiality
2.5% of EBITDA (determined at the planning stage)
Rationale for the
materiality benchmark
applied
We used EBITDA as the basis for determining materiality, because we
believe that this measure is commonly used to assess the Group’s
performance by users of the financial statements and is a generally
accepted benchmark. The use of EBITDA to determine materiality does
not imply our confirmation that this measure is appropriate for making
economic decisions or confirmation that it has been determined in a
correct manner. We adopted a 2,5% materiality threshold, because,
based on our professional judgement, it lies within the range of
acceptable quantitative materiality thresholds.
We agreed with the Audit Committee that we would report to them misstatements identified during our
audit above PLN 8.5 million, as well as misstatements below that amount that, in our view, warranted
reporting for qualitative reasons.
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. They include the most
significant identified risks of material misstatements, including the identified risks of material
misstatement resulting from fraud. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon,. We do not provide
a separate opinion on these matters.
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Responsibility of the Management and Supervisory Board for the consolidated
financial statements
The Management Board of the Parent Company is responsible for the preparation of the annual
consolidated financial statements that give a true and fair view of the Group’s financial position and
results of operations, in accordance with International Financial Reporting Standards as adopted by
the European Union, the adopted accounting policies, the applicable laws and the Parent Company’s
Articles of Association, and for such internal control as the Management Board 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 Parent Company’s Management Board 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 either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
The Parent Company’s Management Board and members of the Supervisory Board are obliged to
ensure that the consolidated financial statements comply with the requirements specified in the
Accounting Act of 29 September 1994 (“the Accounting Act”).
Members of the Supervisory Board are responsible for overseeing the 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 auditor’s 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 the NSA will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in aggregate, they could reasonably be expected to influence economic decisions of
users taken on the basis of these consolidated financial statements.
The scope of the audit does not include an assurance on the Group’s future profitability nor the
efficiency and effectiveness of the Parent Company’s Management Board conducting its affairs, now
or in future.
As part of an audit in accordance with NSA, we exercise professional judgement 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 Parent Company’s Management Board.
•
Conclude on the appropriateness of the Parent Company’s Management Board’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 auditor’s report to the related disclosures in the consolidated
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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 auditor’s report. 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 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 also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to 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 to the Audit Committee, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report 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, including the report on the operations
Other information
Other information comprises a Report on the Parent Company’s and Group’s operations for the
financial year ended 31 December 2021 (“the Report on the operations”) and the corporate
governance statement and the statement on non-financial information referred to in Article 55(2b) of
the Accounting Act which are separate parts of the Report on the operations, and the Annual Report
for the financial year ended 31 December 2021 (“the Annual Report”) (together “Other Information”).
Other information does not include the financial statements and our auditor’s report thereon.
Responsibility of the Management and Supervisory Board
The Management Board of the Parent Company is responsible for the preparation of the Other
Information in accordance with the law.
The Parent Company’s Management Board and the members of the Supervisory Board are obliged to
ensure that the Report on the operations of the Group including its separate parts complies with the
requirements of the Accounting Act.
Registered 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 is to read the
Other Information and, in doing so, consider whether the Other Information is materially inconsistent
with the information in the consolidated financial statements, our knowledge obtained in our audit, or
otherwise appears to be materially misstated. If, based on the work performed, we identified a material
misstatement in the Other Information, we are obliged to inform about it in our audit report.
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Description of a subject matter and applicable criteria
The consolidated financial statements were prepared in the ESEF format by the Parent Company’s
Management Board to comply with the technical requirements regarding the specification of a single
electronic reporting format and marking up, which are set out in the ESEF Regulation.
The subject matter of our assurance engagement is the compliance of the consolidated financial
statements in the ESEF format with the requirements of the ESEF Regulation and the requirements of
this regulation, in our view, constitute appropriate criteria to form a reasonable assurance conclusion.
Responsibility of the Management Board of the Parent Company and the Supervisory Board
The Parent Company’s Management Board is responsible for the preparation of the consolidated
financial statements in the ESEF format in accordance with the technical requirements regarding the
specification of a single electronic reporting format which are set out in the ESEF Regulation. This
responsibility includes the selection and application of appropriate markups in iXBRL using taxonomy
specified in the ESEF Regulation. The responsibility of the Management Board includes also
designing, implementing and maintaining internal controls relevant for the preparation of the
consolidated financial statements in the ESEF format which are free from material non-compliance
with the requirements of the ESEF Regulation and their marking-up in compliance with these
requirements
.
Members of the Parent Company’s Supervisory Board are responsible for overseeing the financial
reporting process, which includes also the preparation of the consolidated financial statements in
accordance with the format compliant with legal requirements.
Our objective was to express an opinion, based on the conducted reasonable assurance engagement,
whether the consolidated financial statements prepared in the ESEF format were marked up, in all
material respects, with the requirements of the ESEF Regulation.
We conducted our engagement in accordance with the National Standard on Assurance Engagements
other than Audit and Review 3001 - audit of financial statements prepared in the single electronic
reporting format (“KSUA 3001pl”) and where relevant with the National Standard on Assurance
Engagements 3000 (R) in the wording of the International Standard on Assurance Services 3000
(Revised) - ‘Assurance Engagements other than Audits and Reviews of Historical Financial
Information’ as issued by the National Council of Statutory Auditors (KSUA 3000(R)). These standards
require that we comply with ethical requirements, plan and perform procedures to obtain reasonable
assurance whether the consolidated financial statements in the ESEF format were marked up, in all
material aspects, in compliance with the specified criteria.
Reasonable assurance is a high level of assurance, but it does not guarantee that the service
performed in accordance with KSUA 3001pl and KSUA 3000 (R) will always detect the existing
material misstatement (significant non-compliance with the requirements).
The selection of the procedures depend on the auditor's judgement, including the auditor's
assessment of the risk of material misstatements, whether due to fraud or error. In performing the
assessments of this risk, the auditor shall consider the internal control related to the preparation of the
consolidated financial statements in the ESEF format and its marking-up in order to plan appropriate
procedures to provide the auditor with sufficient evidence appropriate to the circumstances. The
assessment of the functioning of the internal control system was not carried out in order to express an
opinion on the effectiveness of its operation.
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Quality control and ethical
requirements
We apply the provisions of the regulation of the National Council of Statutory Auditors with regard to
internal quality control in the wording of International Standard on Quality Control 1 and accordingly
maintain 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 comply with the independence and other ethical requirements of the International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants
as adopted by resolution of the National Council
of Statutory Auditors, which is founded on fundamental principles of integrity, objectivity, professional
competence and due care, confidentiality and professional behaviour.
Summary of the work performed
Our planned and performed procedures were aimed at obtaining reasonable assurance whether the
consolidated financial statements in the ESEF format were marked-up, in all material aspects, in
compliance with the applicable requirements. Our procedures included in particular:
●
obtaining an understanding of the process of preparation of the consolidated financial statements
in the ESEF format, including the process of selection and application by the Group of the XBRL
tags and ensuring the compliance with the ESEF Regulation, including understanding the
mechanism of the internal control system related to this process;
●
reconciliation, on a selected sample, of the marked-up information contained in the consolidated
financial statements in the ESEF format to the audited consolidated financial statements;
●
evaluating compliance with the technical standards regarding the specification of a single
electronic reporting format, including the use of XHTML;
●
evaluating the completeness of marking up the consolidated financial statements in the ESEF
format using the iXBRL tags;
●
evaluating the appropriateness of the
use of XBRL tags selected from the ESEF taxonomy and
whether the extension markups were used appropriately where no suitable element in the ESEF
taxonomy has been identified;
●
evaluating the appropriateness of anchoring of the extension elements to the ESEF taxonomy
from the ESEF regulation.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
In our opinion, based on the procedures performed, the consolidated financial statements in the ESEF
format were marked-up, in all material respects, in compliance with the requirements of the ESEF
Regulation.
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Statement on the provision of non-audit services
To the best of our knowledge and belief, we declare that the non-audit services we have provided to
the Parent Company and its subsidiaries are in accordance with the applicable laws and regulations in
Poland and that we have not provided any non-audit services prohibited under Article 5(1) of the EU
regulation and Article 136 of the Law on Registered Auditors.
The non-audit services which we have provided to the Parent Company and its subsidiaries during the
audited period are disclosed in the Report on the Parent Company’s and Group’s operations.
Appointment
We were first appointed to audit the annual consolidated financial statements of the Group by
resolution of the Supervisory Board dated 19 December 2017 and re-appointed by resolution dated 28
January 2021. We have been auditing the Group’s financial statements without interruption since the
financial year ended 31 December 2018, i.e. for four consecutive years.
The Key Registered Auditor responsible for the audit on behalf of PricewaterhouseCoopers Polska
spółka z ograniczoną odpowiedzialnością Audyt sp.k., a company entered on the list of Registered
Audit Companies with the number 144., is Borys Malinowski: