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 1st 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 17th 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 27th and 27th 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 30th 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 1st 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 5th to 6th 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 25th April 2018, certain companies were inspected for the period from 1st July 2016 to 30th 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 18th 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 1st 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 18th 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 1st and 2nd 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 30th 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 1st 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 25th April 2018, certain companies were inspected for the period from 1st July 2016 to 30th 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 18th 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

 

 

TRANSPARENCY REPORT

2017

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 1st 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 30th June 2017 for the audit engagements for 2016 relating to procedures for undertaking the audit engagements for 2017, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2017 to December 2017 for the past 2017 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 25th October 2017 in connection with changes in IFAA and implementation of the IAS for 2017. 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 30th June 2018.

A practical training was conducted in the period between 05-09 June on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2017.

A training course was conducted for the audit companys staff between September 11 and 14, 2017. 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 IAS and the internal rules for quality control over the audit inspection. Materials on the changes in the National Accounting and Tax Legislation, in effect from 1st January 2017 and on their impact to the Annual Financial Statements for 2017 were prepared in September 2017 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 2017. 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 2017 Annual Financial Statements and the changes in the national accounting and tax legislation for 2017 was held from 09 to 10 November 2017 in Troyan, as the lecturers were T. Rahnev, CCA and D. Rahnev, CCA. The Report on the Corporate Governance, the Activity Report, and the Annual Report on Payments to the Government were thoroughly reviewed in the materials developed. Emphasis was put on the new and important moments in the IFAA promulgated in issue 95 of the State Gazette and adopted by the National Assembly on 15th November 2016.

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 2017/2018 audit season have been made;

- An ongoing monitoring with observation of compliance with the companys 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. 04-0004-12-93 of 15th December 2014, certain companies were inspected for the period from 1st July 2013 to 30th June 2014.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2017. 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 and Hydroizomat PLC;

- Securities Issuer: Sopharma Imoti REIT;

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2017 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 2017 the Companys 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 18th 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 2017 is BGN 439 thousand.

By types of services they are as follows:

- audit - BGN 383 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 151 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 232 thousand

- organizing specialized training courses - BGN 17 thousand;

- consultancy services of companies with which we have no audit engagement - BGN 9 thousand;

- other income - BGN 30 thousand.

This Report is adopted by all Shareholders.

 

 

Sofia, 31st March 2018

Director: Trifon Rahnev

 

 

TRANSPARENCY REPORT

2016

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 1st 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 30th June 2016 for the audit engagements for 2015 relating to procedures for undertaking the audit engagements for 2016, the independence and control procedures, and the procedures for compliance with the ethical requirements were carried out in the period from October 2016 to December 2016 for the past 2016 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 1st December 2016 in connection with changes in IFAA and implementation of the IAS for 2016. 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 30th June 2017.

A practical training was conducted in the period between 15-17 June on the planning of audit engagements under the direction of Daniel Rahnev, CCA for the improvement of the qualification in 2016.

A training course was conducted for the audit companys staff between September 12 and 15, 2016. 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 IAS and the internal rules for quality control over the audit inspection. Materials on the changes in the National Accounting and Tax Legislation, in effect from 1st January 2016 and on their impact to the Annual Financial Statements for 2016 were prepared in September 2016 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 2016. 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 2016 Annual Financial Statements and the changes in the national accounting and tax legislation for 2016 was held from 8 to 10 December 2016 in Sofia, as the lecturers were T. Rahnev, CCA and D. Rahnev, CCA. The Report on the Corporate Governance, the Activity Report, and the Annual Report on Payments to the Government were thoroughly reviewed in the materials developed. Emphasis was put on the new and important moments in the IFAA promulgated in issue 95 of the State Gazette and adopted by the National Assembly on 15th November 2016.

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 2016/2017 audit season have been made;

- An ongoing monitoring with observation of compliance with the companys 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. 04-0004-12-93 of 15th December 2014, certain companies were inspected for the period from 1st July 2013 to 30th June 2014.

The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2016. 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: DECOTEX JSC, Doverie - United Holding PLC, Maritsatex PLC, Hydroizomat Ltd and Transstroy Automatika I Montazhi AD;

- Securities Issuer: Sopharma Buildings REIT;

- Health insurance companies: United Health Insurance Fund - Doverie PLC and Health Insurance Fund Medico 21 PLC.

According to the requirements of Article 62, paragraph 1, item 10 of the Independent Financial Audit Act, in 2016 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 2016 the Companys 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 18th 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 2016 is BGN 540 thousand.

By types of services they are as follows:

- audit - BGN 483 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 210 thousand;

- revenue from statutory audit of annual and individual consolidated financial statements - BGN 273 thousand

- organizing specialized training courses - BGN 23 thousand;

- consultancy services of companies with which we have no audit engagement - BGN 5 thousand;

- other income - BGN 29 thousand.

This Report is adopted by all Shareholders.

 

 

Sofia, 31st March 2017

Director: Trifon Rahnev

 

 

 

Transparency Report

 2015


   Specialized Auditor Company Ajour TDM Ltd. is registered by Sofia City Court under Corporate Case No 2918/1989 as a limited liability company under the name of Ajour TDM. The auditor company is registered under No 004 on the list of specialized auditor companies approved by ICPA.

  Ajour TDM Ltd. is managed by General Shareholders Meeting and Director. The General Shareholders Meeting includes: Trifon Dimitrov Rahnev, CCA, Chartered Auditor, Daniel Trifonov Rahnev, CCA, Chartered Auditor, Mariya Ivanova Rahnevа and Margarita Lazarova Slavova, CCA, Chartered Auditor. The Company is represented by Trifon Dimitrov Rahnev in their capacity of Director. The remuneration of the shareholders Trifon Dimitrov Rahnev and Mariya Ivanova Rahnevа is based on employment agreements entered into in respect of taking the following positions, respectively: Director, and Deputy Director, Finance. The shareholder Margarita Lazarova Slavova and Daniel Trifonov Rahnev has no employment or contractual relations with the Company. After a resolution on profit distribution is passed all shareholders receive dividends pro rata to their share in the capital of the auditor 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 – Auditing control, and Trifon Rahnev – Director. The work done by the teams is subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the materials and data collected and preparing the Accounts Report. The control is exercised by Daniel Rahnev and Trifon Rahnev.

 

   For the purpose of the preliminary and annual audits conducted by the Company training of the the auditor company staff took place in the period from 14 September to 18 September 2015 and the period from 11 January to 15 January 2016. Lecturer was Trifon Rahnev and the training was for the organization audit requirements and other control proced ures for conducting a preliminary examination and annual financial statements . The emphasis is on changes in International Financial Reporting Standards applicable to 2015. Daniel Rahnev after the inspection by the Commission for Public Oversight of auditors briefed the team with the results by focusing on control procedures during the audit. Briefing was held for relationships in the community, focusing on better communication and mobility of the teams during the inspections. During the preliminary examination,it provided instruction on the procedures on quality control.

 

   The Company is subject to continuous control by ICPA and Commission for Public Oversight of Auditors (CPOSA). The latest inspection of Ajour TDM Ltd. operation quality was carried out in respect of the auditing commitments fulfilled in the period of 2013/2014 . The inspection report is  the conclusion was "in accordance with the substantive aspects of the requirements for the quality of audit services in implementing the procedures set out in professional standards."

 

   The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2015. According to Section 1(11) of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

 

• Public companies: Decotex JSC, Doverie – United Holding PLC, Maritsatex PLC, Hydroizomat Ltd, Sopharma buildings ADSIC and Transstoi AM PLC

 

• Health insurance companies: United Health Insurance Fund – Doverie PLC and Health Insurance Fund Medico 21 PLC

 

• Companies that produce, transmit and sell electricity and heat: Energoinvest PLC

 

 

 

   The last fiscal year an internal inspection was conducted in respect of the auditor company independence of the companies audited by it. Statements were signed by all Company employees confirming absence of any relations with the Company clients other than the merely professional ones as arranged for in the audit, consultancy services and specialized seminars organization agreements signed.

 

   For the period of 2015 the Company chartered auditors took part in ICPA-organized training courses including 60 hours.

 

   The total amount of the Company operating income in 2015 was BGN 500 thousand. It was formed by income on:

 

• Auditing – BGN 456 thousand

 

• Specialized seminars organized within and outside the country – BGN 18 thousand

 

• Consultancy services to various clients – BGN 14 thousand

 

  •          Others – BGN 12 thousand                  

Transparency Report

 2014


 

   Specialized Auditor Company Ajour TDM Ltd. is registered by Sofia City Court under Corporate Case No 2918/1989 as a limited liability company under the name of Ajour TDM. The auditor company is registered under No 004 on the list of specialized auditor companies approved by ICPA.

 

  Ajour TDM Ltd. is managed by General Shareholders Meeting and Director. The General Shareholders Meeting includes: Trifon Dimitrov Rahnev, CCA, Chartered Auditor, Daniel Trifonov Rahnev, CCA, Chartered Auditor, Mariya Ivanova Rahnevа and Margarita Lazarova Slavova, CCA, Chartered Auditor. The Company is represented by Trifon Dimitrov Rahnev in their capacity of Director. The remuneration of the shareholders Trifon Dimitrov Rahnev and Mariya Ivanova Rahnevа is based on employment agreements entered into in respect of taking the following positions, respectively: Director, and Deputy Director, Finance. The shareholder Margarita Lazarova Slavova and Daniel Trifonov Rahnev has no employment or contractual relations with the Company. After a resolution on profit distribution is passed all shareholders receive dividends pro rata to their share in the capital of the auditor 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 – Auditing control, and Trifon Rahnev – Director. The work done by the teams is subject to weekly and continuous control on site at the time of the audits and subsequent control at the time of processing the materials and data collected and preparing the Accounts Report. The control is exercised by Daniel Rahnev and Trifon Rahnev.

   For the purpose of the preliminary and annual audits conducted by the Company training of the the auditor company staff took place in the period from 12 September to 19 September 2014 and the period from 12 January to 16 January 2014. Lecturer was Trifon Rahnev and the training was for the organization audit requirements and other control proced ures for conducting a preliminary examination and annual financial statements . The emphasis is on changes in International Financial Reporting Standards applicable to 2014. Daniel Rahnev after the inspection by the Commission for Public Oversight of auditors briefed the team with the results by focusing on control procedures during the audit. Briefing was held for relationships in the community, focusing on better communication and mobility of the teams during the inspections. During the preliminary examination,it provided instruction on the procedures on quality control.

   The Company is subject to continuous control by ICPA and Commission for Public Oversight of Auditors (CPOSA). The latest inspection of Ajour TDM Ltd. operation quality was carried out in respect of the auditing commitments fulfilled in the period of 27 September 2011 to 14 October 2011. The inspection report is dated 14 October 2011 and the conclusion was "in accordance with the substantive aspects of the requirements for the quality of audit services in implementing the procedures set out in professional standards." Which means status A.

   The last financial year in respect of which an audit was conducted by Ajour TDM Ltd. was 2014. According to Section 1(11) of the Supplementary Provisions of the Independent Financial Audit Act companies conducting business of public interest having the Company as auditor are:

• Public companies: Decotex JSC, Doverie – United Holding PLC, Maritsatex PLC, Hydroizomat Ltd, Sopharma buildings ADSIC and Transstoi AM PLC

• Health insurance companies: United Health Insurance Fund – Doverie PLC and Health Insurance Fund Medico 21 PLC

• Companies that produce, transmit and sell electricity and heat: Energoinvest PLC

 

   The last fiscal year an internal inspection was conducted in respect of the auditor company independence of the companies audited by it. Statements were signed by all Company employees confirming absence of any relations with the Company clients other than the merely professional ones as arranged for in the audit, consultancy services and specialized seminars organization agreements signed.

   For the period of 2014 the Company chartered auditors took part in ICPA-organized training courses including 40 hours.

   The total amount of the Company operating income in 2014 was BGN 510 thousand. It was formed by income on:

• Auditing – BGN 472 thousand

• Specialized seminars organized within and outside the country – BGN 11 thousand

• Consultancy services to various clients – BGN 16 thousand

  •          Others – BGN 11 thousand                  
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