SIF Muntenia : Announcement regarding SIF Muntenia's Financial Auditor selection

The Board of Directors of SAI Muntenia Invest SA, the Asset Management Company of the Financial Investment Company MUNTENIA S.A., a Romanian legal entity headquartered in Bucharest, 16 Splaiul Unirii, district 4, registered with the Bucharest Trade Registry Office under no. J40/27499/1992, SRC 3168735, observing the provisions of the (EU) Regulation No.537/2014 and of the FSA Rule no. 27/2015, with the prior approval of the Shareholders Representatives Council of SIF MUNTENIA SA, decided to initiate the procedure for selecting the financial auditor for the 2017-2019 financial years in order to be appointed by the Shareholders General Ordinary Meeting and to establish the term of the financial audit contract.

The purpose of this Press release is to invite potential candidates to submit offers for the selection of the company which will be recommended for nomination to the Shareholders General Meeting of SIF MUNTENIA SA.

The selection process will be coordinated by the Audit Committee.

Each participating auditor must submit a written offer in which the skills, key elements of the services and team, as well as the proposed fee, will be presented. Each participant will bear the costs associated with the submission of the offer.

The selection process can be attended exclusively by the legal entity financial auditors approved by the Financial Supervisory Authority, according to its Rules.

More details on the information/documents to be included in the written offers of the participating companies are given in the appendix to this press release.

The offers will be submitted from 20.06.2017, 8.00, until 30.06.2017, 12.00, at the headquarters of the company - Bucharest, 16 Splaiul Unirii, sector 4, room 104, or to the e-mail addresses relatii@sifmuntenia.ro,ioana.petrescu@munteniainvest.ro.

The Audit Committee will analyze the offers submitted according to the necessary professional criteria and will select the best offer. The selected offer will be recommended to the Board of Directors of SAI Muntenia Invest SA. After obtaining the approval of SIF MUNTENIA SA Shareholders Council, the material regarding the nomination of the financial auditor to be submitted to the Shareholders Ordinary General Meeting will be published.

All questions and requests for additional information can be addressed to Mrs. Ioana Petrescu, Legal Adviser at SAI Muntenia Invest SA, at the email address: ioana.petrescu@munteniainvest.ro.

Internal Control Claudia Jianu

1. The offer document must include at least the following information: Company Details:

   • Describe the industry experience and present a relevant customer data base;

   • Describe in brief the benefits that SIF Muntenia might have following the selection of the firm;

   • Describe the organization and structure of the firm to the extent that it is relevant to this engagement.

     Resources

   • Provide the name of the key audit partner, location, and relevant experience;

   • Describe detailed engagement planning;

   • Describe succession planning and measures to ensure continuity of staff throughout the engagement (for the 2017-2019 financial years).

     Approach:

   • Provide the understanding of the business needs and risks;

   • Describe the internal processes of the auditor to ensure the provision of customized, receptive and personalized auditing services tailored to the specific needs of SIF Muntenia, performance measurement and continuous improvement;

   • Describe how the auditor cooperates with the Audit Committee and the Internal Auditor;

   • Describe how the auditor will use technology to provide services;

   • Describe the manner and timing of the auditor's reporting on the findings and/or the transmission of the recommendations to the management.

     Transition (if applicable):

     • Describe the process of the audit transition;

     • Describe previous experience in audit transitions of similar company;

     • Describe the transition plan.

       Quality assurance

     • Describe the internal processes used for quality assurance;

     • Describe your business approach to solving accounting and financial reporting problems.

       Independence and Governance

     • Describe internal practices to ensure compliance with independence requirements and lack of conflicts of interest;

     • Describe the services that can reasonably be considered as not violating the principle of independence and the proposed plan in their management (i.e. non-audit services);

     • Present the formal confirmation by the auditor that all necessary measures are in place to ensure its independence.

2. The file for the submission of financial auditors' offers shall contain at least:

3. Document issued by C.F.A.R. attesting the quality of legal entity financial auditor, valid for the current year;

4. Certificate issued by the National Trade Register Office, not prior than 30 days, with the up to date legal status of the legal entity, in its original;

5. Document issued by C.F.A.R. which should include a reference to the rating given at the last evaluation;

6. Civil liability insurance contract, in copy;

7. Judiciary record and fiscal record of the auditor within the legal validity period, in original;

8. Signed and dated Curriculum vitae of the key audit partner, as well as the documents referred to under a), e), h);

9. Statement of the key audit partner, under handwritten signature, stating that he/she has not been sanctioned/has not been banned by Romanian or foreign authorities regarding the financial audit activities performed over the last 3 years;

10. Statement of the auditor and of the key partner, under handwritten signature, stating that he/she is not in any of the incompatibility or conflict of interest situations provided by the legislation in force;

11. Statement of the key audit partner, under handwritten signature, stating that he/she does not hold the status of key audit partner/holds the status of key audit partner for other entities.

12. Financial audit offer:

13. Separate estimates of total fees for:

    • Review of SIF Muntenia's half-year results, prepared in accordance with International Financial Reporting Standards (IFRS, Rule 39/2015), as at 30.06.2018 and 30.06.2019;

    • Audit of SIF Muntenia's Individual Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS, Rule 39/2015) for 2017, 2018 and 2019 financial years;

    • Audit of SIF Muntenia's Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS, Rule 39/2015) for the 2017, 2018 and 2019 financial years. Estimates of fees will include all the audit procedures required to audit the Consolidated Financial Statements, including audit procedures related to consolidation of financial reports prepared by SIF Muntenia's subsidiaries;

    • Overview of the program and billing schedule.

    The offer will contain the value without VAT and will be expressed in lei.

    Details regarding the activity of SIF Muntenia, including its subsidiaries, can be found on the company's website: www.sifmuntenia.ro