Raport

INDEPENDENT AUDITOR’S REPORT

To the Shareholders of FON SE

Opinion

We have audited the financial statements of FON SE (the Company), which comprise the

statement of financial position as at June 30, 2022, and the statement of profit or loss,

statement of comprehensive income, statement of cash flows and statement of changes in

equity for the year then ended, and notes to the financial statements, including a summary of

significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects,

the financial position of the Company as at June 30, 2022, and its financial performance and

its cash flows for the year then ended in accordance with International Financial Reporting

Standards (IFRS) as adopted by the European Union.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (Estonia)

(ISA (EE)s). Our responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the 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

We are independent of the Company 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). We have fulfilled our

other ethical responsibilities in accordance with the IESBA Code.

To the best of our knowledge and belief, we declare that non-audit services that we have

provided to the Company are in accordance with the applicable law and regulations in the

Republic of Estonia and that we have not provided non-audit services that are prohibited

under § 59

of the Auditors Activities Act of the Republic of Estonia.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the financial statements of the current period. These matters were

addressed in the context of our audit of the financial statements as a whole, and in forming

our opinion thereon, and we do not provide a separate opinion on these matters. For each

matter below, our description of how our audit addressed the matter is provided in that

context.

Key audit matter

How our audit addressed the key audit

matter

Valuation of loan receivables

As disclosed in the Note 4 “Financial

assets” to the financial statements,

financial investments consist of loans and

interests in the amount of 8879 thousand

euros which corresponds to 99% of the

Company’s assets. 99% of these loans

are loans to the related parties.

The value of these loans is assessed

using the amortized cost method as

described in the Note 1.

Valuation of receivables is a subjective

area due to the level of judgement applied

by the management, based on

management’s past experience and

assumptions.

Our audit procedures included, amongst

others:



We examined the terms of the loan

agreements and checked the

accounting data compliance with

the agreements.



We checked the balances with the

balance confirmations.

 We examined and analyzed the

financial data of the borrowers; we

reviewed whether management’s

judgements are in accordance with

our understanding.

 We checked the received

payments of the loans after the

post balance sheet date.

 We assessed the adequacy of the

disclosed information and

compliance with IFRS

requirements.

Other Information, including the Management Report

Management is responsible for the other information. The other information comprises the

Selected Financial Data, the Management Report, the Corporate Governance Report and the

Remuneration Report (but does not include the financial statements and our auditor’s report

thereon). Our opinion on the financial statements does not cover the other information,

including the Management report.

In connection with our audit of the financial statements, our responsibility is to read the other

information identified above and, in doing so, consider whether the other information is

materially inconsistent with the financial statements or our knowledge obtained in the audit,

or otherwise appears to be materially misstated. With respect to the Management report, we

also performed the procedures required by the Auditors Activities Act. Those procedures

include considering whether the Management report is consistent, in all material respects,

with the financial statements and is prepared in accordance with the requirements of the

Accounting Act.

In accordance with the Securities Market Act with respect to the Remuneration Report, our

responsibility is to consider whether the Remuneration Report includes the information in

accordance with the requirements of Article 135

of the Securities Market Act.

Based on the work undertaken in the course of our audit, in our opinion:

● the information given in the Management report for the financial year for which the financial

statements are prepared is consistent, in all material respects, with the financial statements;

and

● the Management report has been prepared in accordance with the requirements of the

Accounting Act; ● the Remuneration Report has been prepared in accordance with Article

135

of the Securities Market Act.

In addition, in light of the knowledge and understanding of the Company and its environment

obtained in the course of the audit, we are required to report if we have identified material

misstatements in the Management report and other information that we obtained prior to the

date of this auditor’s report. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial

Statements

Management is responsible for the preparation and fair presentation of the financial

statements in accordance with International Financial Reporting Standards (IFRS) as

adopted by the European Union and for such internal control as management determines is

necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the

Company’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 management either

intends to liquidate the Company or to cease operations, or has no realistic alternative but to

do so.

Those charged with governance are responsible for overseeing the Company’s financial

reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 ISAs (EE) 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 financial

statements.

As part of an audit in accordance with ISAs (EE), we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the 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 Company’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’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 Company’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

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 Company to cease to

continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial statements,

including the disclosures, and whether the financial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance 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 those charged with governance 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 with those charged with governance, we determine those

matters that were of most significance in the audit of the 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.

Appointment and period of our audit engagement

We were first appointed as auditors of FON SE for the financial year ended 30 June 2020.

Our appointment has been renewed by shareholder resolutions, representing the total period

of our uninterrupted engagement appointment for FON SE of 4 years.

/digitally signed/

Eve Leppik

License No 230

Company: Number RT OÜ

License: 263

Linnu tee 21a, Tallinn 11317

28. September 2022