Casa de Bucovina Club de Munte S A : Independent auditor report 2022 - EN

Independent Auditor report

To the shareholders of CASA DE BUCOVINA - CLUB DE MUNTE SA

Report on the audit of financial statements

Opinion

We have audited the Financial Statements of CASA DE BUCOVINA - CLUB DE MUNTE SA (hereinafter referred to as "the Company"), headquartered in Gura Humorului, 18 Piata Republicii street, registered with the National Trade Register under no. J33/718/1998 and fiscal registration code RO 10376500, which include the statement of financial position as of December 31st, 2022, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flow for the financial year ended on this date, as well as a summary of significant accounting policies and explanatory notes.

In our opinion, the financial statements give a true and fair view of the Company's financial position as of December 31st, 2022, as well as of the financial performance and cash flows for the year ended at that date, in accordance with the Order of the Minister of Public Finance no. 2.844/12.12.2016 for the approval of the accounting Regulations compliant with the International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market, with subsequent amendments and completions.

Basis for the opinion

We conducted our audit in accordance with International Standards on Auditing ("ISA"), EU Regulation no. 537/2014 of the Parliament and of the European Council (hereinafter "the Regulation") and Law no. 162/2017 ("the Law"). Our responsibilities under these standards are described in detail in the "Auditor's Responsibilities in an Audit of Financial Statements" section of our report. We are independent from the Company, according to the Ethical Code of Professionals issued by the International Ethics Standards Board for Accountants ("IESBA Code"), according to the ethical requirements that are relevant for the audit of the Romanian financial statements, including the Regulation and the Law, and we have fulfilled the ethical responsibilities, according to these requirements and according to the IESBA Code. We believe that the audit samples we have obtained are sufficient and adequate to provide a basis for our opinion.

Audit key aspects

Key audit aspects are those aspects that, based on our professional judgment, have been of the greatest importance for the audit of the current period's financial statements. These issues have been addressed in the context of the audit of the financial statements as a whole and in the formation of our opinion on them and we do not provide a separate opinion on these key aspects.

Valuation financial assets valued at fair value through profit or loss

As of 31st December, 2022, the Company owns financial assets at fair value through profit or loss amounting to 5,103,480 lei, representing fund units. The net loss from the revaluation of financial assets at fair value through profit or loss recognized in the financial year 2022 is of 174,646 lei.

We refer to the following notes:

Note 3 d) "Significant accounting policies. Financial assets and liabilities"

Note 17 a) "Financial assets at fair value through profit or loss"

Other information - Administrators' report and Remuneration report

Administrators are responsible for preparing and presenting other information. That other information include the Administrators' Report but does not include the financial statements and the auditor's report.

Our opinion on the financial statements does not cover this other information, and unless otherwise stated in our report, we do not express any assurance conclusion about it.

Regarding the audit of the financial statements for the year ended as of 31st December, 2022, it is our responsibility to read that other information and, in this regard, to assess whether that other information is materially inconsistent with the financial statements or with the knowledge we have acquired during the audit, or if they appear to be materially distorted.

Regarding the Remuneration Report, we have read and we report whether it has been prepared, in all material respects, in accordance with the provisions of Law 24/2017 on issuers of financial instruments and market operations ("Law 24/2017"), para. no. 106 and 107.

On the sole basis of the activities that must be performed during the audit of the financial statements, in our opinion:

1. The information presented in the Administrators' Report for the financial year for which the financial statements were prepared is consistent, in all material respects, with the financial statements;
2. The Administrators' Report was prepared, in all the significant aspects, according with the Order of the Minister of Public Finance no. 2.844/12.12.2016 for the approval of Accounting Regulations in accordance with International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market, as subsequently amended and supplemented, Annex 1, Chapter 3, paragraphs 15-20.
3. The Remuneration Report was prepared, in all the significant aspects, in accordance with the provisions of Law 24/2017, para. no. 106 and 107.

In addition, based on our knowledge and understanding of the Company and its environment, acquired in the course of our audit of the financial statements for the year ended as of 31st December, 2022, we are required to report whether we have identified significant misstatements in the Administrators' Report and in the Remuneration Report. We have nothing to report on this aspect.

The responsibility of the management and the persons responsible with the governance for the financial statements

The management of the Company is responsible for the preparation of financial statements that provide a true and fair view in accordance with the Order of the Minister of Public Finance no. 2,844/12.12.2016 for the approval of accounting Regulations in accordance with International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market, with subsequent amendments and completions, and for the internal compliance that management deems necessary to enable the preparation of the financial statements, free of material misstatement, whether due to fraud or error.

In preparing the financial statements, the management is responsible for assessing the Company's ability to continue its business, for presenting, where appropriate, business continuity related aspects and for using of business continuity accounting, unless the management intends to liquidate the Company or to stop its operations, or has no realistic alternative besides these.

The persons responsible for the governance are responsible for supervising the financial reporting process of the Company.

Auditor's responsibility in a financial statements audit

Our objectives are to obtain a reasonable assurance on whether the financial statements, as a whole, are free from material misstatement, whether caused by fraud or by error, as well as to issue an auditor's report which includes our opinion. Reasonable assurance is a high level of assurance, but there is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement, if any. Distortions can be caused either by fraud or error and are considered significant if it can be expected, reasonably, that they, individually or cumulated, will influence the economic decisions of users, taken on the basis of these financial statements.

As part of an ISA-compliant audit, we exert professional reasoning and maintain professional skepticism during the entire process. We also:

• Identify and evaluate risks that could cause significant distortion of financial statements, caused either by fraud or error, prepare and execute audit procedures in response to different risks and we obtain adequate audit evidence in order to provide a basis of our opinion. The risk of not detecting a significant distortion caused by fraud is higher than the risk of not detecting a distortion caused by error because fraud can involve collusion, forgery, intentional omissions, false statements or internal control avoidance.
• Understand relevant internal controls for the audit, used to prepare auditing procedures that are adequate given the circumstances, but without expressing an opinion on the effectiveness of the Company's internal control procedures.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and presentations of information prepared by the management.
• Submit a conclusion regarding the adequacy of management's use of accounting on a going concern basis and determine, based on audit evidence obtained, if there is significant uncertainty regarding the events or conditions that may cast significant doubt on the Company's ability to continue operating on a going concern. If we conclude that there is significant uncertainty, we must report it in the auditor's report on the presentation of financial statements or, in the case these presentations are not adequate, to modify our opinion. Our conclusions rely on the audit evidence obtained before the date of the audit report. However, future events or conditions may cause the Company to not be able to continue operations on a going concern basis.
• Assess the overall presentation, structure and content of financial statements, including disclosures and to the extent that the financial statements reflect the underlying transactions and events in a manner that results in a fair presentation.

We communicate to those responsible for governance, among other things, the planned area and timing of the audit, as well as the main findings of the audit, including any significant deficiencies in internal control, which we identify during the audit.

Furthermore, we provide to the persons responsible with the governance a statement that we met the professional and ethics requirements on independence and that we communicated them all the relationships and other aspects that can be considered, under reasonable assumptions, to impact our independence and, if the case may be, the related protection measures.

Of all issues reported to the persons responsible for corporate governance, we decide on the most important ones for the audit of the current financial statements and, accordingly, represent key aspects of the audit. We describe these issues in the auditor's report, unless law or regulations prohibit public dissemination of the issue, or if, under extremely rare circumstances, we believe that a matter should not be disclosed in our report because the benefits to the public interest are reasonably expected to be outweighed by the negative consequences of such disclosure.

Report on Other Legal and Regulatory Provisions

We have been appointed by the Ordinary General Meeting of the Shareholders on April 28, 2020 to audit the financial statements of CASA DE BUCOVINA - CLUB DE MUNTE SA for the financial years 2020-2023.

We confirm that:

• Our audit opinion is consistent with the additional report submitted to the Audit Committee of the Company, which we issued on the same date that we issued this report. Also, in conducting our audit, we have kept our independence from the audited entity.
• We did not provide for the Company prohibited non-audited services referred to in Article 5 (1) of EU Regulation no. 537/2014.

Report on compliance with Commission Delegated Regulation (EU) 2018/815 ("Technical Regulatory Standard on the European Single Electronic Reporting Format" or "ESEF")

We have performed a reasonable assurance mission on the compliance of the financial statements prepared by the entity of CASA DE BUCOVINA - CLUB DE MUNTE SA included in the annual financial report presented in the digital file "4ul7/snjyZpJ1rI=" with the Delegated Regulation (EU) 2018/815 of the Commission.

Responsibility of the management of CASA DE BUCOVINA - CLUB DE MUNTE SA for the digital files prepared in accordance with ESEF

The Company's management is responsible for preparing the digital file in accordance with ESEF: This responsibility include:

• designing, implementing and maintaining the internal control relevant for the application of ESEF;
• ensuring the consistency between the digital file and the financial statements that will be published in accordance with Order 2844/2016 for the approval of the Accounting Regulations compliant with International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market, with amendments and subsequent additions.

The persons responsible for governance are responsible for overseeing the preparation of the digital file in accordance with ESEF.

Auditor's responsibility for auditing Digital Files

We are responsible for expressing a conclusion regarding the extent to which the financial statements included in the annual financial report are in accordance with ESEF, in all material respects, based on the evidence obtained. Our reasonable assurance assignment was performed in accordance with International Assurance Standards 3000 (revised) "Other assurance assignments than audits or revisions of historical financial information" ("ISAE 3000") issued by the International Auditing and Assurance Standards Board.

A reasonable assurance mission in accordance with ISAE 3000 requires procedures to be performed to obtain evidence of ESEF compliance. The nature, timing, and extent of the selected procedures depend on the auditor's reasoning, including the assessment of the risk of material misstatement of the ESEF provisions, whether due to fraud or error. A reasonable assurance engagement includes:

• obtaining an understanding of the process of preparing digital files in accordance with ESEF, including relevant internal controls;
• reconciliation of digital files that include marked data with the audited financial statements of the Company that will be published in accordance with Order 2844/2016 for the approval of Accounting