TRANSPARENCY REPORT

2023

Ajour TDM Ltd.

Audit Company pursuant to the requirements of Article 62 of

the Independent Financial Audit Act

 

Ajour TDM Ltd. Specialized Auditor Company is registered by Sofia City Court under Corporate Case No. 2918/1989 as a limited liability company. In compliance with the requirements of the Commercial Register Act in force from 1^st January 2008, the company has been re-registered and entered with the Commercial Register at the Registry Agency under UIC 121270288. The Audit Company is registered under No. 004 on the List of Audit Companies approved by the Institute of Certified Public Accountants and complies with the requirements of § 1, paragraph 36 of the Additional Provisions of the Independent Financial Audit Act.

As of 31^st December 2023 Ajour TDM Ltd. is managed from the General Shareholders Meeting by the Director. The General Shareholders Meeting includes:

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 375 shares;

- Kristian Daniel Rahnev - 110 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The Company is managed by Daniel Trifonov Rahnev. The remuneration of both shareholders Daniel Trifonov Rahnev and Kristian Daniel Rahnev is based on the employment contracts entered into in respect of the occupied positions. The shareholder Margarita Lazarova Slavova have no employment or contractual relations with the Company.

The business of the Company runs in two lines: Auditing Line and General Line. Auditing Line consists of three teams conducting audits under the direction of Daniel Rahnev. The work done by the teams, the inspection procedures, the completion of the reports developed by the Audit Company are subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the collected materials, reports and data. Each team produces a Report on the subjects of the inspection for each company. The control is exercised by Daniel Rahnev, CCA (until 30^th November 2023 when he was appointed as Director) and Margarita Slavova, CCA.

The internal quality control system of Ajour TDM Ltd includes the following items:

- Procedures for general monitoring and management of the rules and procedures of the internal quality control system of the company. The control functions are performed by Margarita Slavova, CCA. She have the power to make suggestions for changes to the policy itself, the rules and procedures, to organize inspections on certain engagements, and she is currently monitoring the compliance with system components. With this report, we declare that the required efforts to improve the quality control of the audit practice are made in order to increase the effectiveness of the efficient operation of the rules and procedures of the internal quality control system of the company (according to Article 62, paragraph 1, Paragraph 4 of the IFAA).

- Procedures and measures for the enforcement of and compliance with the ethical rules of the Institute of Certified Public Accountants in the execution of each engagement. The company has established a procedure for introductory and annually updating staff training on the content of and compliance with the ethical rules. Particular attention is paid to the principle of independence. The behavior of the audit team is controlled in each audit undertaking by applying the style and personal example of the Shareholders;

- Procedures for acceptance and continuance of customer relationships. The company has developed practice, documents and procedures of many years for pre-collection of information upon acceptance and/or continuance of the cooperation with each client. The collected information is summarized and subjected to analysis and evaluation. The procedures for acceptance and continuance of customer relationships are compulsory for implementation prior to each engagement and each year for recurring engagements. These procedures are controlled by Margarita Slavova, CCA;

- Policy and rules for recruitment and professional development of staff. The internal policy of the company includes rules and requirements for recruitment of employees, monthly assessment of the performance of each team member, development of skills and competences and specific system for the formation of remuneration. Attention is drawn to the continuing vocational training, mentoring by the CCA and the more experienced employees;

- Quality control procedures upon performance of the work at the engagement level. The procedures cover all phases of the audit - engagements, namely: planning, risk assessment, control procedures over the compliance with applicable standards for the particular engagement, procedures for mentoring and supervision over the work of the team, a review of the work performed and the final assessments and conclusions based on the collected documentation and evidence. These procedures are designed to give reasonable assurance that a report which is adequate to the specific circumstances is being issued. The review of the quality control over the fulfilment of the engagements is a mandatory requirement for the engagements completion and the issuance of the report.

The main activities related to the internal quality control system as to 26^st June 2023 for the audit engagements for 2023 relating to procedures for undertaking the audit engagements for 2023, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from September 2023 to December 2023 for the past 2023 in accordance with approved schedule. Discussions with the teams were made during the period from undertaking to performing the engagements, based on the internal reports, focusing on improving the competence of the applicable International Accounting Standards and International Financial Reporting Standards and those International Auditing Standards that are directly related to the quality of audit practice and audit engagements. An internal seminar was conducted on 18^th and 19^th September 2023 in connection with changes in IFRS and implementation of the IAS for 2023. Procedures for reviewing the quality of audit engagements and a review of the audit documentation as well as of the observations expressed were carried out as of the date of publication of this report in accordance with the approved schedule of the audit engagements, as these procedures have been completed for the public interest entities. As scheduled, the procedures for all audit engagements will be completed by 30^th June 2024.

A practical training was conducted in the period between 24-28 July on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2023. A training course was conducted for the audit companys staff between September 11 and 15, 2023. The lecturers were: Daniel Rahnev, CCA on the organization of the inspection, customers location, auditing engagement and on the IAS and IFRS as well as on emphasis on the changes in the national accounting framework; Daniel Rahnev, CCA conducted training in relation to the requirements of the IFRS and the changes in tax legislation in 2023.

Detailed texts were developed on the applicable national framework and IFRS in connection with the changes in tax legislation for 2023. For the purposes of the training, the texts for "Disclosure" and "Activity Report" have been developed and updated in the various aspects of the activity.

In summary, the activities related to the internal quality control system are grouped in the following manner:

- The staff training program was conducted in four stages with internal training, and preparation and conducting training with company clients;

- Improvements in the organization and procedures for inspection of individual accounting entities for the 2023/2024 audit season have been made;

- An ongoing monitoring with observation of compliance with the company independence policy have been performed. The affiliates and members of the audit teams shall sign Annual Independence Statement prior to the beginning of the audit season.

- The practice for reviewing the audit documentation for each public interest entity by a second independent certified chartered accountant continues.

The Company is subject to the control of the Institute of Certified Public Accountants - Committee for Oversight of the Quality of Audit Services and the Commission for Public Oversight of Statutory Auditors. By Ordinance No. RD-15-004-51-49 of 05^th September 2023, certain companies were inspected for the period from 1^st January 2022 to 31^th December 2022 ending with Resolution 224 from 14^th December 2023, “A” grade has been assigned.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2023. According to § 1, item 26 of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

- Public companies: None;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2023 the provisions of Article 65, paragraph 4 for the rotation of responsible auditors in public interest entities have been fulfilled.

For the entire 2023 the Company chartered auditors took part in ICPA-organized training courses and activities for maintaining the qualification for more than 40 hours for each auditor, according to Article 30 of the Independent Financial Audit Act.

By Resolution of the General Meeting of the Shareholders of 18^th November 2016, pursuant to Article 34, paragraph 2 of the Accountancy Act and paragraph 8 of the Preliminary and Concluding Provisions of the Accountancy Act as from 2016, the auditing company is applying the National Accounting Standards.

The total revenue of the company from its activity in 2023 is BGN 421 thousand.

By types of services they are as follows:

- audit - BGN 348 thousand, including:

- revenue from statutory audit of annual financial statements - individual and consolidated in public interest entities (BGN 0 thousand) and enterprises belonging to a group whose parent is a public interest entity (BGN 109 thousand) - BGN 109 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 239 thousand

- consultancy services of companies with which we have no audit engagement - BGN 7 thousand;

- other income - BGN 66 thousand.

This Report is adopted by all Shareholders.

 

 

 

Sofia, 10th January 2024

Director: Daniel Rahnev

 

 

TRANSPARENCY REPORT

2022

Ajour TDM Ltd.

Audit Company pursuant to the requirements of Article 62 of

the Independent Financial Audit Act

 

Ajour TDM Ltd. Specialized Auditor Company is registered by Sofia City Court under Corporate Case No. 2918/1989 as a limited liability company. In compliance with the requirements of the Commercial Register Act in force from 1^st January 2008, the company has been re-registered and entered with the Commercial Register at the Registry Agency under UIC 121270288. The Audit Company is registered under No. 004 on the List of Audit Companies approved by the Institute of Certified Public Accountants and complies with the requirements of § 1, paragraph 36 of the Additional Provisions of the Independent Financial Audit Act.

As of 31^st December 2022 Ajour TDM Ltd. is managed from the General Shareholders Meeting by the Director. The General Shareholders Meeting includes:

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 375 shares;

- Kristian Daniel Rahnev - 110 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The Company is managed by Daniel Trifonov Rahnev. The remuneration of both shareholders Daniel Trifonov Rahnev and Kristian Daniel Rahnev is based on the employment contracts entered into in respect of the occupied positions. The shareholder Margarita Lazarova Slavova have no employment or contractual relations with the Company.

The business of the Company runs in two lines: Auditing Line and General Line. Auditing Line consists of three teams conducting audits under the direction of Daniel Rahnev. The work done by the teams, the inspection procedures, the completion of the reports developed by the Audit Company are subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the collected materials, reports and data. Each team produces a Report on the subjects of the inspection for each company. The control is exercised by Daniel Rahnev, CCA (until 30^th November 2022 when he was appointed as Director) and Margarita Slavova, CCA.

The internal quality control system of Ajour TDM Ltd includes the following items:

- Procedures for general monitoring and management of the rules and procedures of the internal quality control system of the company. The control functions are performed by Margarita Slavova, CCA. She have the power to make suggestions for changes to the policy itself, the rules and procedures, to organize inspections on certain engagements, and she is currently monitoring the compliance with system components. With this report, we declare that the required efforts to improve the quality control of the audit practice are made in order to increase the effectiveness of the efficient operation of the rules and procedures of the internal quality control system of the company (according to Article 62, paragraph 1, Paragraph 4 of the IFAA).

- Procedures and measures for the enforcement of and compliance with the ethical rules of the Institute of Certified Public Accountants in the execution of each engagement. The company has established a procedure for introductory and annually updating staff training on the content of and compliance with the ethical rules. Particular attention is paid to the principle of independence. The behavior of the audit team is controlled in each audit undertaking by applying the style and personal example of the Shareholders;

- Procedures for acceptance and continuance of customer relationships. The company has developed practice, documents and procedures of many years for pre-collection of information upon acceptance and/or continuance of the cooperation with each client. The collected information is summarized and subjected to analysis and evaluation. The procedures for acceptance and continuance of customer relationships are compulsory for implementation prior to each engagement and each year for recurring engagements. These procedures are controlled by Margarita Slavova, CCA;

- Policy and rules for recruitment and professional development of staff. The internal policy of the company includes rules and requirements for recruitment of employees, monthly assessment of the performance of each team member, development of skills and competences and specific system for the formation of remuneration. Attention is drawn to the continuing vocational training, mentoring by the CCA and the more experienced employees;

- Quality control procedures upon performance of the work at the engagement level. The procedures cover all phases of the audit - engagements, namely: planning, risk assessment, control procedures over the compliance with applicable standards for the particular engagement, procedures for mentoring and supervision over the work of the team, a review of the work performed and the final assessments and conclusions based on the collected documentation and evidence. These procedures are designed to give reasonable assurance that a report which is adequate to the specific circumstances is being issued. The review of the quality control over the fulfilment of the engagements is a mandatory requirement for the engagements completion and the issuance of the report.

The main activities related to the internal quality control system as to 27^st June 2022 for the audit engagements for 2022 relating to procedures for undertaking the audit engagements for 2022, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2022 to December 2022 for the past 2022 in accordance with approved schedule. Discussions with the teams were made during the period from undertaking to performing the engagements, based on the internal reports, focusing on improving the competence of the applicable International Accounting Standards and International Financial Reporting Standards and those International Auditing Standards that are directly related to the quality of audit practice and audit engagements. An internal seminar was conducted on 19^th and 20^th September 2022 in connection with changes in IFRS and implementation of the IAS for 2022. Procedures for reviewing the quality of audit engagements and a review of the audit documentation as well as of the observations expressed were carried out as of the date of publication of this report in accordance with the approved schedule of the audit engagements, as these procedures have been completed for the public interest entities. As scheduled, the procedures for all audit engagements will be completed by 30^th June 2022.

A practical training was conducted in the period between 25-29 July on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2022. A training course was conducted for the audit companys staff between September 05 and 09, 2022. The lecturers were: Daniel Rahnev, CCA on the organization of the inspection, customers location, auditing engagement and on the IAS and IFRS as well as on emphasis on the changes in the national accounting framework; Daniel Rahnev, CCA conducted training in relation to the requirements of the IFRS and the changes in tax legislation in 2022.

Detailed texts were developed on the applicable national framework and IFRS in connection with the changes in tax legislation for 2022. For the purposes of the training, the texts for "Disclosure" and "Activity Report" have been developed and updated in the various aspects of the activity.

In summary, the activities related to the internal quality control system are grouped in the following manner:

- The staff training program was conducted in four stages with internal training, and preparation and conducting training with company clients;

- Improvements in the organization and procedures for inspection of individual accounting entities for the 2022/2022 audit season have been made;

- An ongoing monitoring with observation of compliance with the company independence policy have been performed. The affiliates and members of the audit teams shall sign Annual Independence Statement prior to the beginning of the audit season.

- The practice for reviewing the audit documentation for each public interest entity by a second independent certified chartered accountant continues.

The Company is subject to the control of the Institute of Certified Public Accountants - Committee for Oversight of the Quality of Audit Services and the Commission for Public Oversight of Statutory Auditors. By Ordinance No. 04-0004-19-61 of 28^th September 2020, certain companies were inspected for the period from 1^st July 2018 to 31^th December 2019 ending with Resolution 224 from 17^th December 2020.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2022. According to § 1, item 26 of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

- Public companies: Maritsatex PLC until 5^th May 2022;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2022 the provisions of Article 65, paragraph 4 for the rotation of responsible auditors in public interest entities have been fulfilled.

For the entire 2022 the Company chartered auditors took part in ICPA-organized training courses and activities for maintaining the qualification for more than 40 hours for each auditor, according to Article 30 of the Independent Financial Audit Act.

By Resolution of the General Meeting of the Shareholders of 18^th November 2016, pursuant to Article 34, paragraph 2 of the Accountancy Act and paragraph 8 of the Preliminary and Concluding Provisions of the Accountancy Act as from 2016, the auditing company is applying the National Accounting Standards.

The total revenue of the company from its activity in 2022 is BGN 372 thousand.

By types of services they are as follows:

- audit - BGN 316 thousand, including:

- revenue from statutory audit of annual financial statements - individual and consolidated in public interest entities (BGN 6 thousand) and enterprises belonging to a group whose parent is a public interest entity (BGN 103 thousand) - BGN 109 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 207 thousand

- consultancy services of companies with which we have no audit engagement - BGN 3 thousand;

- other income - BGN 53 thousand.

This Report is adopted by all Shareholders.

 

 

Sofia, 16th January 2023

Director: Daniel Rahnev

 

 

 

 

TRANSPARENCY REPORT

2021

Ajour TDM Ltd.

Audit Company pursuant to the requirements of Article 62 of

the Independent Financial Audit Act

 

Ajour TDM Ltd. Specialized Auditor Company is registered by Sofia City Court under Corporate Case No. 2918/1989 as a limited liability company. In compliance with the requirements of the Commercial Register Act in force from 1^st January 2008, the company has been re-registered and entered with the Commercial Register at the Registry Agency under UIC 121270288. The Audit Company is registered under No. 004 on the List of Audit Companies approved by the Institute of Certified Public Accountants and complies with the requirements of § 1, paragraph 36 of the Additional Provisions of the Independent Financial Audit Act.

As of 31^st December 2021 Ajour TDM Ltd. is managed from the General Shareholders Meeting by the Director. The General Shareholders Meeting includes:

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 375 shares;

- Kristian Daniel Rahnev - 110 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The Company is managed by Daniel Trifonov Rahnev. The remuneration of both shareholders Daniel Trifonov Rahnev and Kristian Daniel Rahnev is based on the employment contracts entered into in respect of the occupied positions. The shareholder Margarita Lazarova Slavova have no employment or contractual relations with the Company.

Before that, from 1^st January until 30^th November, Ajour TDM Ltd. is managed from the General Shareholders Meeting by Director Trifon Dimitrov Rahnev. The General Shareholders Meeting includes:

- Trifon Dimitrov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0047 – 245  shares;

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 120 shares;

- Maria Ivanova Rahneva - 120 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The business of the Company runs in two lines: Auditing Line and General Line. Auditing Line consists of three teams conducting audits under the direction of Daniel Rahnev. The work done by the teams, the inspection procedures, the completion of the reports developed by the Audit Company are subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the collected materials, reports and data. Each team produces a Report on the subjects of the inspection for each company. The control is exercised by Daniel Rahnev, CCA (until 30^th November 2021 when he was appointed as Director) and Margarita Slavova, CCA.

The internal quality control system of Ajour TDM Ltd includes the following items:

- Procedures for general monitoring and management of the rules and procedures of the internal quality control system of the company. The control functions are performed by Daniel Rahnev, CCA (until 30^th November 2021 when he was appointed as Director) and Margarita Slavova, CCA. They both have the power to make suggestions for changes to the policy itself, the rules and procedures, to organize inspections on certain engagements, and they are currently monitoring the compliance with system components. With this report, we declare that the required efforts to improve the quality control of the audit practice are made in order to increase the effectiveness of the efficient operation of the rules and procedures of the internal quality control system of the company (according to Article 62, paragraph 1, Paragraph 4 of the IFAA).

- Procedures and measures for the enforcement of and compliance with the ethical rules of the Institute of Certified Public Accountants in the execution of each engagement. The company has established a procedure for introductory and annually updating staff training on the content of and compliance with the ethical rules. Particular attention is paid to the principle of independence. The behavior of the audit team is controlled in each audit undertaking by applying the style and personal example of the Shareholders;

- Procedures for acceptance and continuance of customer relationships. The company has developed practice, documents and procedures of many years for pre-collection of information upon acceptance and/or continuance of the cooperation with each client. The collected information is summarized and subjected to analysis and evaluation. The procedures for acceptance and continuance of customer relationships are compulsory for implementation prior to each engagement and each year for recurring engagements. These procedures are controlled by Margarita Slavova, CCA;

- Policy and rules for recruitment and professional development of staff. The internal policy of the company includes rules and requirements for recruitment of employees, monthly assessment of the performance of each team member, development of skills and competences and specific system for the formation of remuneration. Attention is drawn to the continuing vocational training, mentoring by the CCA and the more experienced employees;

- Quality control procedures upon performance of the work at the engagement level. The procedures cover all phases of the audit - engagements, namely: planning, risk assessment, control procedures over the compliance with applicable standards for the particular engagement, procedures for mentoring and supervision over the work of the team, a review of the work performed and the final assessments and conclusions based on the collected documentation and evidence. These procedures are designed to give reasonable assurance that a report which is adequate to the specific circumstances is being issued. The review of the quality control over the fulfilment of the engagements is a mandatory requirement for the engagements completion and the issuance of the report.

The main activities related to the internal quality control system as to 21^st June 2021 for the audit engagements for 2021 relating to procedures for undertaking the audit engagements for 2021, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2021 to December 2021 for the past 2021 in accordance with approved schedule. Discussions with the teams were made during the period from undertaking to performing the engagements, based on the internal reports, focusing on improving the competence of the applicable International Accounting Standards and International Financial Reporting Standards and those International Auditing Standards that are directly related to the quality of audit practice and audit engagements. An internal seminar was conducted on 27^h and 28^th September 2021 in connection with changes in IFRS and implementation of the IAS for 2021. Procedures for reviewing the quality of audit engagements and a review of the audit documentation as well as of the observations expressed were carried out as of the date of publication of this report in accordance with the approved schedule of the audit engagements, as these procedures have been completed for the public interest entities. As scheduled, the procedures for all audit engagements will be completed by 30^th June 2022.

A practical training was conducted in the period between 26-30 July on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2021. A training course was conducted for the audit companys staff between September 06 and 10, 2021. The lecturers were: Trifon Rahnev, CCA on the organization of the inspection, customers location, auditing engagement and on the IAS and IFRS as well as on emphasis on the changes in the national accounting framework; Daniel Rahnev, CCA conducted training in relation to the requirements of the IFRS and the changes in tax legislation in 2021.

Detailed texts were developed on the applicable national framework and IFRS in connection with the changes in tax legislation for 2021. For the purposes of the training, the texts for "Disclosure" and "Activity Report" have been developed and updated in the various aspects of the activity.

In summary, the activities related to the internal quality control system are grouped in the following manner:

- The staff training program was conducted in four stages with internal training, and preparation and conducting training with company clients;

- Improvements in the organization and procedures for inspection of individual accounting entities for the 2021/2022 audit season have been made;

- An ongoing monitoring with observation of compliance with the company independence policy have been performed. The affiliates and members of the audit teams shall sign Annual Independence Statement prior to the beginning of the audit season.

- The practice for reviewing the audit documentation for each public interest entity by a second independent certified chartered accountant continues.

The Company is subject to the control of the Institute of Certified Public Accountants - Committee for Oversight of the Quality of Audit Services and the Commission for Public Oversight of Statutory Auditors. By Ordinance No. 04-0004-19-61 of 28^th September 2020, certain companies were inspected for the period from 1^st July 2018 to 31^th December 2019 ending with Resolution 224 from 17^th December 2020.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2021. According to § 1, item 26 of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

- Public companies: Maritsatex PLC;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2021 the provisions of Article 65, paragraph 4 for the rotation of responsible auditors in public interest entities have been fulfilled.

For the entire 2021 the Company chartered auditors took part in ICPA-organized training courses and activities for maintaining the qualification for more than 40 hours for each auditor, according to Article 30 of the Independent Financial Audit Act.

By Resolution of the General Meeting of the Shareholders of 18^th November 2016, pursuant to Article 34, paragraph 2 of the Accountancy Act and paragraph 8 of the Preliminary and Concluding Provisions of the Accountancy Act as from 2016, the auditing company is applying the National Accounting Standards.

The total revenue of the company from its activity in 2021 is BGN 403 thousand.

By types of services they are as follows:

- audit - BGN 349 thousand, including:

- revenue from statutory audit of annual financial statements - individual and consolidated in public interest entities (BGN 21 thousand) and enterprises belonging to a group whose parent is a public interest entity (BGN 108 thousand) - BGN 129 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 220 thousand

- consultancy services of companies with which we have no audit engagement - BGN 8 thousand;

- other income - BGN 46 thousand.

This Report is adopted by all Shareholders.

  

 

Sofia, 14th January 2022

Director: Daniel Rahnev

 

 

 

TRANSPARENCY REPORT

2020

Ajour TDM Ltd.

Audit Company pursuant to the requirements of Article 62 of

the Independent Financial Audit Act

 

Ajour TDM Ltd. Specialized Auditor Company is registered by Sofia City Court under Corporate Case No. 2918/1989 as a limited liability company. In compliance with the requirements of the Commercial Register Act in force from 1^st January 2008, the company has been re-registered and entered with the Commercial Register at the Registry Agency under UIC 121270288. The Audit Company is registered under No. 004 on the List of Audit Companies approved by the Institute of Certified Public Accountants and complies with the requirements of § 1, paragraph 36 of the Additional Provisions of the Independent Financial Audit Act.

Ajour TDM Ltd. is managed from the General Shareholders Meeting tby he Director. The General Shareholders Meeting includes:

- Trifon Dimitrov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0047 – 245 shares;

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 120 shares;

- Mariya Ivanova Rahneva - 120 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The Company is managed by Trifon Dimitrov Rahnev. The remuneration of both shareholders Trifon Dimitrov Rahnev and Mariya Ivanova Rahneva is based on the employment contracts entered into in respect of the occupied positions. The shareholders Daniel Trifonov Rahnev and Margarita Lazarova Slavova have no employment or contractual relations with the Company.

The business of the Company runs in two lines: Auditing Line and General Line. Auditing Line consists of three teams conducting audits under the direction of Daniel Rahnev and Trifon Rahnev. The work done by the teams, the inspection procedures, the completion of the reports developed by the Audit Company are subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the collected materials, reports and data. Each team produces a Report on the subjects of the inspection for each company. The control is exercised by Daniel Rahnev, CCA, Margarita Slavova, CCA and Trifon Rahnev, CCA.

The internal quality control system of Ajour TDM Ltd includes the following items:

- Procedures for general monitoring and management of the rules and procedures of the internal quality control system of the company. The control functions are performed by Daniel Rahnev, CCA and Margarita Slavova, CCA. They both have the power to make suggestions for changes to the policy itself, the rules and procedures, to organize inspections on certain engagements, and they are currently monitoring the compliance with system components. With this report, we declare that the required efforts to improve the quality control of the audit practice are made in order to increase the effectiveness of the efficient operation of the rules and procedures of the internal quality control system of the company (according to Article 62, paragraph 1, Paragraph 4 of the IFAA).

- Procedures and measures for the enforcement of and compliance with the ethical rules of the Institute of Certified Public Accountants in the execution of each engagement. The company has established a procedure for introductory and annually updating staff training on the content of and compliance with the ethical rules. Particular attention is paid to the principle of independence. The behavior of the audit team is controlled in each audit undertaking by applying the style and personal example of the Shareholders;

- Procedures for acceptance and continuance of customer relationships. The company has developed practice, documents and procedures of many years for pre-collection of information upon acceptance and/or continuance of the cooperation with each client. The collected information is summarized and subjected to analysis and evaluation. The procedures for acceptance and continuance of customer relationships are compulsory for implementation prior to each engagement and each year for recurring engagements. These procedures are controlled by Daniel Rahnev, CCA;

- Policy and rules for recruitment and professional development of staff. The internal policy of the company includes rules and requirements for recruitment of employees, monthly assessment of the performance of each team member, development of skills and competences and specific system for the formation of remuneration. Attention is drawn to the continuing vocational training, mentoring by the CCA and the more experienced employees;

- Quality control procedures upon performance of the work at the engagement level. The procedures cover all phases of the audit - engagements, namely: planning, risk assessment, control procedures over the compliance with applicable standards for the particular engagement, procedures for mentoring and supervision over the work of the team, a review of the work performed and the final assessments and conclusions based on the collected documentation and evidence. These procedures are designed to give reasonable assurance that a report which is adequate to the specific circumstances is being issued. The review of the quality control over the fulfilment of the engagements is a mandatory requirement for the engagements completion and the issuance of the report.

The main activities related to the internal quality control system as to 22^th June 2020 for the audit engagements for 2020 relating to procedures for undertaking the audit engagements for 2020, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2020 to December 2020 for the past 2020 in accordance with approved schedule. Discussions with the teams were made during the period from undertaking to performing the engagements, based on the internal reports, focusing on improving the competence of the applicable International Accounting Standards and International Financial Reporting Standards and those International Auditing Standards that are directly related to the quality of audit practice and audit engagements. An internal seminar was conducted on 28^th and 29^th September 2020 in connection with changes in IFRS and implementation of the IAS for 2020. Procedures for reviewing the quality of audit engagements and a review of the audit documentation as well as of the observations expressed were carried out as of the date of publication of this report in accordance with the approved schedule of the audit engagements, as these procedures have been completed for the public interest entities. As scheduled, the procedures for all audit engagements will be completed by 30^th June 2021.

A practical training was conducted in the period between 20-24 July on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2020. A training course was conducted for the audit companys staff between September 14 and 18, 2020. The lecturers were: Trifon Rahnev, CCA on the organization of the inspection, customers location, auditing engagement and on the IAS and IFRS as well as on emphasis on the changes in the national accounting framework; Daniel Rahnev, CCA conducted training in relation to the requirements of the IFRS.

Detailed texts were developed on the applicable national framework and IFRS in connection with the changes in tax legislation for 2020. For the purposes of the training, the texts for "Disclosure" and "Activity Report" have been developed and updated in the various aspects of the activity.

In summary, the activities related to the internal quality control system are grouped in the following manner:

- The staff training program was conducted in four stages with internal training, and preparation and conducting training with company clients;

- Improvements in the organization and procedures for inspection of individual accounting entities for the 2020/2021 audit season have been made;

- An ongoing monitoring with observation of compliance with the company independence policy have been performed. The affiliates and members of the audit teams shall sign Annual Independence Statement prior to the beginning of the audit season.

- The practice for reviewing the audit documentation for each public interest entity by a second independent certified chartered accountant continues.

The Company is subject to the control of the Institute of Certified Public Accountants - Committee for Oversight of the Quality of Audit Services and the Commission for Public Oversight of Statutory Auditors. By Ordinance No. 04-0004-19-61 of 28^th September 2020, certain companies were inspected for the period from 1^st July 2018 to 31^th December 2019.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2020. According to § 1, item 26 of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

- Public companies: Maritsatex PLC;

- Securities Issuer: Sopharma Imoti REIT;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2020 the provisions of Article 65, paragraph 4 for the rotation of responsible auditors in public interest entities have been fulfilled.

For the entire 2020 the Company chartered auditors took part in ICPA-organized training courses and activities for maintaining the qualification for more than 40 hours for each auditor, according to Article 30 of the Independent Financial Audit Act.

By Resolution of the General Meeting of the Shareholders of 18^th November 2016, pursuant to Article 34, paragraph 2 of the Accountancy Act and paragraph 8 of the Preliminary and Concluding Provisions of the Accountancy Act as from 2016, the auditing company is applying the National Accounting Standards.

The total revenue of the company from its activity in 2020 is BGN 450 thousand.

By types of services they are as follows:

- audit - BGN 408 thousand, including:

- revenue from statutory audit of annual financial statements - individual and consolidated in public interest entities (BGN 21 thousand) and enterprises belonging to a group whose parent is a public interest entity (BGN 110 thousand) - BGN 131 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 277 thousand

- consultancy services of companies with which we have no audit engagement - BGN 4 thousand;

- other income - BGN 38 thousand.

This Report is adopted by all Shareholders.

 

 

Sofia, 15th January 2021

Director: Trifon Rahnev

 

 

 

TRANSPARENCY REPORT

2019

Ajour TDM Ltd.

Audit Company pursuant to the requirements of Article 62 of

the Independent Financial Audit Act

 

Ajour TDM Ltd. Specialized Auditor Company is registered by Sofia City Court under Corporate Case No. 2918/1989 as a limited liability company. In compliance with the requirements of the Commercial Register Act in force from 1^st January 2008, the company has been re-registered and entered with the Commercial Register at the Registry Agency under UIC 121270288. The Audit Company is registered under No. 004 on the List of Audit Companies approved by the Institute of Certified Public Accountants and complies with the requirements of § 1, paragraph 36 of the Additional Provisions of the Independent Financial Audit Act.

Ajour TDM Ltd. is managed from the General Shareholders Meeting tby he Director. The General Shareholders Meeting includes:

- Trifon Dimitrov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0047 – 245 shares;

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 120 shares;

- Mariya Ivanova Rahneva - 120 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The Company is managed by Trifon Dimitrov Rahnev. The remuneration of both shareholders Trifon Dimitrov Rahnev and Mariya Ivanova Rahneva is based on the employment contracts entered into in respect of the occupied positions. The shareholders Daniel Trifonov Rahnev and Margarita Lazarova Slavova have no employment or contractual relations with the Company.

The business of the Company runs in two lines: Auditing Line and General Line. Auditing Line consists of three teams conducting audits under the direction of Daniel Rahnev and Trifon Rahnev. The work done by the teams, the inspection procedures, the completion of the reports developed by the Audit Company are subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the collected materials, reports and data. Each team produces a Report on the subjects of the inspection for each company. The control is exercised by Daniel Rahnev, CCA, Margarita Slavova, CCA and Trifon Rahnev, CCA.

The internal quality control system of Ajour TDM Ltd includes the following items:

- Procedures for general monitoring and management of the rules and procedures of the internal quality control system of the company. The control functions are performed by Daniel Rahnev, CCA and Margarita Slavova, CCA. They both have the power to make suggestions for changes to the policy itself, the rules and procedures, to organize inspections on certain engagements, and they are currently monitoring the compliance with system components. With this report, we declare that the required efforts to improve the quality control of the audit practice are made in order to increase the effectiveness of the efficient operation of the rules and procedures of the internal quality control system of the company (according to Article 62, paragraph 1, Paragraph 4 of the IFAA). A full review of the engagements performed is carried out for each audit year by the Shareholders and control procedures are undertaken to assume the engagements, each being considered independently. A full review of the audit documentation is carried out before each engagement is completed by the persons charged with the quality control and a thorough review and discussion of the results of the audit inspection and the audit opinion prepared by the responsible auditor are carried out for the public interest entities. No deviations in the effectiveness of the control system and the independence of the audit services have been identified over the years.

- Procedures and measures for the enforcement of and compliance with the ethical rules of the Institute of Certified Public Accountants in the execution of each engagement. The company has established a procedure for introductory and annually updating staff training on the content of and compliance with the ethical rules. Particular attention is paid to the principle of independence. The behaviour of the audit team is controled in each audit undertaking by applying the style and personal example of the Shareholders;

- Procedures for acceptance and continuance of customer relationships. The company has developed practice, documents and procedures of many years for pre-collection of information upon acceptance and/or continuance of the cooperation with each client. The collected information is summarized and subjected to analysis and evaluation. The procedures for acceptance and continuance of customer relationships are compulsory for implementation prior to each engagement and each year for recurring engagements. These procedures are controlled by Daniel Rahnev, CCA;

- Policy and rules for recruitment and professional development of staff. The internal policy of the company includes rules and requirements for recruitment of employees, monthly assessment of the performance of each team member, development of skills and competences and specific system for the formation of remuneration. Attention is drawn to the continuing vocational training, mentoring by the CCA and the more experienced employees;

Quality control procedures upon performance of the work at the engagement level. The procedures cover all phases of the audit - engagements, namely: planning, risk assessment, control procedures over the compliance with applicable standards for the particular engagement, procedures for mentoring and supervision over the work of the team, a review of the work performed and the final assessments and conclusions based on the collected documentation and evidence. These procedures are designed to give reasonable assurance that a report which is adequate to the specific circumstances is being issued. The review of the quality control over the fulfilment of the engagements is a mandatory requirement for the engagements completion and the issuance of the report.

The main activities related to the internal quality control system as to 17^th June 2019 for the audit engagements for 2019 relating to procedures for undertaking the audit engagements for 2019, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2019 to December 2019 for the past 2019 in accordance with approved schedule. Discussions with the teams were made during the period from undertaking to performing the engagements, based on the internal reports, focusing on improving the competence of the applicable International Accounting Standards and International Financial Reporting Standards and those International Auditing Standards that are directly related to the quality of audit practice and audit engagements. An internal seminar was conducted on 27^th and 27^th September 2019 in connection with changes in IFRS and implementation of the IAS for 2019. Procedures for reviewing the quality of audit engagements and a review of the audit documentation as well as of the observations expressed were carried out as of the date of publication of this report in accordance with the approved schedule of the audit engagements, as these procedures have been completed for the public interest entities. As scheduled, the procedures for all audit engagements will be completed by 30^th June 2020.

A practical training was conducted in the period between 22-26 June on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2019.

A training course was conducted for the audit companys staff between September 9 and 13, 2019. The lecturers were: Trifon Rahnev, CCA on the organization of the inspection, customers location, auditing engagement and on the IAS and IFRS as well as on emphasis on the changes in the national accounting framework; Daniel Rahnev, CCA conducted training in relation to the requirements of the IFRS 15 ”Revenue from Contracts with Customers”, IFRS 9 “Financial Instruments” and IFRS 16 “Leases”. Materials on the changes in the National Accounting and Tax Legislation, in effect from 1^st January 2019 and on their impact to the Annual Financial Statements for 2019 were prepared in September 2019 by the whole team of the company. Detailed texts were developed on the applicable national framework and IFRS in connection with the changes in tax legislation for 2019. For the purposes of the training, the texts for "Disclosure" and "Activity Report" have been developed and updated in the various aspects of the activity.

The training course in connection with the annual closure of the 2019 Annual Financial Statements and the changes in the national accounting and tax legislation for 2019 was held from 5^th to 6^th December 2019 in Sofia, as the lecturers were T. Rahnev, CCA and D. Rahnev, CCA. Emphasis was put on the requirements of the IFRS 15 ”Revenue from Contracts with Customers”, NAS 18 “Revenue”, IFRS 9 “Financial Instruments”, NAS 32 “Financial Instruments”, NAS 36 “Impairment of Assets” IFRS 16 “Leases” and NAS 17 “Leases”.

In summary, the activities related to the internal quality control system are grouped in the following manner:

- The staff training program was conducted in four stages with internal training, and preparation and conducting training with company clients;

- Improvements in the organization and procedures for inspection of individual accounting entities for the 2019/2020 audit season have been made;

- An ongoing monitoring with observation of compliance with the company independence policy have been performed. The affiliates and members of the audit teams shall sign Annual Independence Statement prior to the beginning of the audit season.

- The practice for reviewing the audit documentation for each public interest entity by a second independent certified chartered accountant continues.

The Company is subject to the control of the Institute of Certified Public Accountants - Committee for Oversight of the Quality of Audit Services and the Commission for Public Oversight of Statutory Auditors. By Ordinance No. 04-0004-29-48 of 25^th April 2018, certain companies were inspected for the period from 1^st July 2016 to 30^th June 2017.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2019. According to § 1, item 26 of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

- Public companies: Maritsatex PLC;

- Securities Issuer: Sopharma Imoti REIT;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2019 the provisions of Article 65, paragraph 4 for the rotation of responsible auditors in public interest entities have been fulfilled. The requirements of paragraph 6 of the Transitional and Final Provisions of the Independent Financial Audit Act have been complied with, as the Ajour TDM Ltd Audit Company is terminating its audit engagements with five public interest entities.

For the entire 2019 the Company chartered auditors took part in ICPA-organized training courses and activities for maintaining the qualification for more than 40 hours for each auditor, according to Article 30 of the Independent Financial Audit Act.

By Resolution of the General Meeting of the Shareholders of 18^th November 2016, pursuant to Article 34, paragraph 2 of the Accountancy Act and paragraph 8 of the Preliminary and Concluding Provisions of the Accountancy Act as from 2016, the auditing company is applying the National Accounting Standards.

The total revenue of the company from its activity in 2019 is BGN 454 thousand.

By types of services they are as follows:

- audit - BGN 372 thousand, including:

- revenue from statutory audit of annual financial statements - individual and consolidated in public interest entities (BGN 21 thousand) and enterprises belonging to a group whose parent is a public interest entity (BGN 108 thousand) - BGN 129 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 243 thousand

- organizing specialized training courses - BGN 13 thousand;

- consultancy services of companies with which we have no audit engagement - BGN 20 thousand;

- other income - BGN 49 thousand.

This Report is adopted by all Shareholders.

 

 

Sofia, 20th January 2020

Director: Trifon Rahnev

 

 

 

TRANSPARENCY REPORT

2018

Ajour TDM Ltd.

Audit Company pursuant to the requirements of Article 62 of the Independent Financial Audit Act

 

Ajour TDM Ltd. Specialized Auditor Company is registered by Sofia City Court under Corporate Case No. 2918/1989 as a limited liability company. In compliance with the requirements of the Commercial Register Act in force from 1^st January 2008, the company has been re-registered and entered with the Commercial Register at the Registry Agency under UIC 121270288. The Audit Company is registered under No. 004 on the List of Audit Companies approved by the Institute of Certified Public Accountants and complies with the requirements of § 1, paragraph 36 of the Additional Provisions of the Independent Financial Audit Act.

Ajour TDM Ltd. is managed from the General Shareholders Meeting tby he Director. The General Shareholders Meeting includes:

- Trifon Dimitrov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0047 – 245 shares;

- Daniel Trifonov Rahnev, CCA, Chartered Auditor, holder of Diploma No. 0577 – 120 shares;

- Mariya Ivanova Rahneva - 120 shares;

- Margarita Lazarova Slavova, CCA, Chartered Auditor, holder of Diploma No. 0131 - 15 shares.

The Company is managed by Trifon Dimitrov Rahnev. The remuneration of both shareholders Trifon Dimitrov Rahnev and Mariya Ivanova Rahneva is based on the employment contracts entered into in respect of the occupied positions. The shareholders Daniel Trifonov Rahnev and Margarita Lazarova Slavova have no employment or contractual relations with the Company.

The business of the Company runs in two lines: Auditing Line and General Line. Auditing Line consists of three teams conducting audits under the direction of Daniel Rahnev and Trifon Rahnev. The work done by the teams, the inspection procedures, the completion of the reports developed by the Audit Company are subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the colledcted materials, reports and data. Each team produces a Report on the subjects of the inspection for each company. The control is exercised by Daniel Rahnev, CCA, Margarita Slavova, CCA and Trifon Rahnev, CCA.

The internal quality control system of Ajour TDM Ltd includes the following items:

- Procedures for general monitoring and management of the rules and procedures of the internal quality control system of the company. The control functions are performed by Daniel Rahnev, CCA and Margarita Slavova, CCA. They both have the power to make suggestions for changes to the policy itself, the rules and procedures, to organize inspections on certain engagements, and they are currently monitoring the compliance with system components. With this report, we declare that the required efforts to improve the quality control of the audit practice are made in order to increase the effectiveness of the efficient operation of the rules and procedures of the internal quality control system of the company (according to Article 62, paragraph 1, Paragraph 4 of the IFAA). A full review of the engagements performed is carried out for each audit year by the Shareholders and control procedures are undertaken to assume the engagements, each being considered independently. A full review of the audit documentation is carried out before each engagement is completed by the persons charged with the quality control and a thorough review and discussion of the results of the audit inspection and the audit opinion prepared by the responsible auditor are carried out for the public interest entities. No deviations in the effectiveness of the control system and the independence of the audit services have been identified over the years.

- Procedures and measures for the enforcement of and compliance with the ethical rules of the Institute of Certified Public Accountants in the execution of each engagement. The company has established a procedure for introductory and annually updating staff training on the content of and compliance with the ethical rules. Particular attention is paid to the principle of independence. The behaviour of the audit team is controled in each audit undertaking by applying the style and personal example of the Shareholders;

- Procedures for acceptance and continuance of customer relationships. The company has developed practice, documents and procedures of many years for pre-collection of information upon acceptance and/or continuance of the cooperation with each client. The collected information is summarized and subjected to analysis and evaluation. The procedures for acceptance and continuance of customer relationships are compulsory for implementation prior to each engagement and each year for recurring engagements. These procedures are controlled by Daniel Rahnev, CCA;

- Policy and rules for recruitment and professional development of staff. The internal policy of the company includes rules and requirements for recruitment of employees, monthly assessment of the performance of each team member, development of skills and competences and specific system for the formation of remuneration. Attention is drawn to the continuing vocational training, mentoring by the CCA and the more experienced employees;

Quality control procedures upon performance of the work at the engagement level. The procedures cover all phases of the audit - engagements, namely: planning, risk assessment, control procedures over the compliance with applicable standards for the particular engagement, procedures for mentoring and supervision over the work of the team, a review of the work performed and the final assessments and conclusions based on the collected documentation and evidence. These procedures are designed to give reasonable assurance that a report which is adequate to the specific circumstances is being issued. The review of the quality control over the fulfilment of the engagements is a mandatory requirement for the engagements completion and the issuance of the report.

The main activities related to the internal quality control system as to 18^th June 2018 for the audit engagements for 2018 relating to procedures for undertaking the audit engagements for 2018, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2018 to December 2018 for the past 2018 in accordance with approved schedule. Discussions with the teams were made during the period from undertaking to performing the engagements, based on the internal reports, focusing on improving the competence of the applicable International Accounting Standards and International Financial Reporting Standards and those International Auditing Standards that are directly related to the quality of audit practice and audit engagements. An internal seminar was conducted on 1^st and 2^nd October 2018 in connection with changes in IFRS and implementation of the IAS for 2018. Procedures for reviewing the quality of audit engagements and a review of the audit documentation as well as of the observations expressed were carried out as of the date of publication of this report in accordance with the approved schedule of the audit engagements, as these procedures have been completed for the public interest entities. As scheduled, the procedures for all audit engagements will be completed by 30^th June 2019.

A practical training was conducted in the period between 11-15 June on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2018.

A training course was conducted for the audit companys staff between September 10 and 14, 2018. The lecturers were: Trifon Rahnev, CCA on the organization of the inspection, customers location, auditing engagement and on the IAS and IFRS as well as on emphasis on the changes in the national accounting framework; Daniel Rahnev, CCA conducted training in relation to the requirements of the IFRS 15 ”Revenue from Contracts with Customers”, IFRS 9 “Financial Instruments” and IFRS 16 “Leases”. Materials on the changes in the National Accounting and Tax Legislation, in effect from 1^st January 2018 and on their impact to the Annual Financial Statements for 2018 were prepared in September 2018 by the whole team of the company. Detailed texts were developed on the applicable national framework and IFRS in connection with the changes in tax legislation for 2018. For the purposes of the training, the texts for "Disclosure" and "Activity Report" have been developed and updated in the various aspects of the activity.

The training course in connection with the annual closure of the 2018 Annual Financial Statements and the changes in the national accounting and tax legislation for 2018 was held from 17 to 19 December 2018 in Sofia, as the lecturers were T. Rahnev, CCA and D. Rahnev, CCA. Emphasis was put on the requirements of the IFRS 15 ”Revenue from Contracts with Customers”, IAS 18 “Revenue”, IFRS 9 “Financial Instruments”, IAS 32 “Financial Instruments”, IAS 36 “Impairment of Assets” IFRS 16 “Leases” and IAS 17 “Leases”.

In summary, the activities related to the internal quality control system are grouped in the following manner:

- The staff training program was conducted in four stages with internal training, and preparation and conducting training with company clients;

- Improvements in the organization and procedures for inspection of individual accounting entities for the 2018/2019 audit season have been made;

- An ongoing monitoring with observation of compliance with the company independence policy have been performed. The affiliates and members of the audit teams shall sign Annual Independence Statement prior to the beginning of the audit season.

- The practice for reviewing the audit documentation for each public interest entity by a second independent certified chartered accountant continues.

The Company is subject to the control of the Institute of Certified Public Accountants - Committee for Oversight of the Quality of Audit Services and the Commission for Public Oversight of Statutory Auditors. By Ordinance No. 04-0004-29-48 of 25^th April 2018, certain companies were inspected for the period from 1^st July 2016 to 30^th June 2017.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2018. According to § 1, item 26 of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

- Public companies: Maritsatex PLC;

- Securities Issuer: Sopharma Imoti REIT;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2018 the provisions of Article 65, paragraph 4 for the rotation of responsible auditors in public interest entities have been fulfilled. The requirements of paragraph 6 of the Transitional and Final Provisions of the Independent Financial Audit Act have been complied with, as the Ajour TDM Ltd Audit Company is terminating its audit engagements with five public interest entities.

For the entire 2018 the Company chartered auditors took part in ICPA-organized training courses and activities for maintaining the qualification for more than 40 hours for each auditor, according to Article 30 of the Independent Financial Audit Act.

By Resolution of the General Meeting of the Shareholders of 18^th November 2016, pursuant to Article 34, paragraph 2 of the Accountancy Act and paragraph 8 of the Preliminary and Concluding Provisions of the Accountancy Act as from 2016, the auditing company is applying the National Accounting Standards.

The total revenue of the company from its activity in 2018 is BGN 461 thousand.

By types of services they are as follows:

- audit - BGN 395 thousand, including:

- revenue from statutory audit of annual financial statements - individual and consolidated in public interest entities and enterprises belonging to a group whose parent is a public interest entity - BGN 130 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 265 thousand

- organizing specialized training courses - BGN 19 thousand;

- consultancy services of companies with which we have no audit engagement - BGN 18 thousand;

- other income - BGN 29 thousand.

This Report is adopted by all Shareholders.

 

 

Sofia, 15th March 2019

Director: Trifon Rahnev