AUDIT AND ANNUAL ACCOUNTING BALANCE
The annual financial statements are audited by a registered auditor or a specialised audit company appointed by the General Meeting, who are responsible for the bona fide and unbiased audit of the Company. The annual financial statements cannot be approved by the General Meeting without audit.
The purpose of the audit is to establish whether the requirements for the annual closing of accounts have been met, in accordance with the effective legislation.
When the General Meeting has not elected a registered auditor by the end of the calendar year, at the request of the Management Board, the Supervisory Board or an individual shareholder, a registered auditor is appointed by the court.
After receiving the Report of the registered auditor or the specialised audit company, the Management Board submits to the Supervisory Board the annual financial statements of the Company, the Management report on the activities of the Management Board and the Report of the registered auditor or the specialised audit company. The Management Board also presents the proposal for the distribution of the profit, which it will make before the General Meeting.
At its meeting, the Supervisory Board examines the annual financial statements of the Company, the Report on the activities of the Management Board, the Report of the registered auditor or the specialised audit company and the Proposal for profit distribution and, after their approval, decides to call a regular General Meeting of the Company.
The audited and approved by the General Meeting annual financial statements are submitted to the Commercial Register.
In May 2009, the GMS elected an Audit Committee to the Supervisory Board for the first time. The Audit Committee consists of an independent member of the Supervisory Board who has financial background and administrative management experience, and two external experts with appropriate background and experience. Its activity is regulated in the Statute (Regulations), adopted by the General Shareholders' Meeting.
The internal control system in the group is subject to constant monitoring, both by each company and by IHB. At holding level, there is a separate Internal Audit Unit, which performs audits of the activities and finances in the IHB Group, as well as current and periodic audits of the system and processes in IHB and in each company, part of the Group.