І. GENERAL PROVISIONS
1. These Measures ensuring the effective obligations fulfillment of the auditors of “CHIMIMPORT” Plc have been adopted by the Management Board of the company in compliance with the requirements, set in the CORPORATE GOVERNANCE CODE, adopted by BSE – Sofia JSC.
2. These Measures aim at guaranteeing a trouble-free fulfillment of the activity of the company’s auditors in the process of implementing all the necessary procedures, set by the International Audit Standards, on the basis of which an independent audit opinion is expressed, concerning the authentic presentation in all aspects of essence in the financial reports of “CHIMIMPORT” Plc:
- the financial standing of the company;
- the reported financial result from the activity of the company;
- the cash flows of the company and their changes;
- the company’s own equity and the changes in it
3. The independent audit opinion, related to the reports of “CHIMIMPORT” Plc liable to auditing, is expressed with regard to the compliance of the financial reports with the applicable accounting standards, as well as any other nationally accepted accounting basis for preparing financial reports as the formation and expression of independent audit opinion is made in compliance with the International Audit Standards.
4. These Measures are obligatory to be observed by company’s employees and all persons, who carry out the current financial-accounting service of “CHIMIMPORT” Plc on the basis of specific contractual relations and the control of their observing is assigned to the Deputy Chairman of the Management Board
ІІ. MEASURES ENSURING THE EFFECTIVE FULFILMENT OF THE OBLIGATIONS OF CHIMIMPORT’S AUDITORS
”CHIMIMPORT” Plc shall be obliged:
1. to conclude an agreement for making an audit of the accounts of “CHIMIMPORT” Plc, according to Art.9, par.1 of the Independent Financial Audit Act (IFAA), where particular obligations of the company shall be specified on the basis of these Measures;
2. to require guarantees on the part of the registered auditor/auditing company, that it does not fall under the limitations for carrying out an independent financial audit, according to Art.28 of IFAA;
3. to require performance of the independent financial audit in the scope, specified by law through examination of:
- the observation of accounting principles;
- the succession in applying the announced accounting policy;
- the methodological rationale of the current reporting for comprehensive and reliable reflection of company’s assets, passives and activity, limited to achieving the aims of the audit;
- the effectiveness of inner control, limited to achieving the aims of the audit;
- the process of closing of accounts;
- the authenticity and the necessary for customers scope of information, presented in the financial report;
- conformity between the information in the financial report, in the management report and any other information given by the management together with the audited report.
4. to require the financial audit to be done according to all legally regulated obligations on the part of the registered auditor/auditing company and in particular:
- observing the principles: independence, professional competence, confidentiality, honesty and objectivity;
- fulfillment of the assumed obligation for audit, unless there are objective circumstances which hinder the fulfillment;
- informing the management of “CHIMIMPORT” Plc of any substantial violence of laws and other enactments, of its constitutive and other inner acts, norms and procedures, as well as of any other information, to the best of his/its knowledge in the process of the independent audit;
- warning “CHIMIMPORT” Plc in the sphere his/its competences about any actions or omissions, which may harm the company, to the best of his knowledge in the process of independent audit;
- explaining to “CHIMIMPORT” Plc the meaning of given information, received during the fulfillment of the auditor’s obligation;
- presentation of documents proving the fulfillment of the auditor’s obligation and the stated opinion;
- сobservation of the International audit standards and the Professional-ethical code, accepted by the Institute of CPA auditors;
5. to give to the registered auditor/auditing company the annual financial report prepared by the Company’s Management Board, ready for issuing an auditing report, the management report and any other information, given by the Management Board together with the auditing report, a signed representative letter by the Management Board according to the International Audit Standards within terms, which make it possible for the report to be audited no later than 15-th of March of the following calendar year;
6. to provide in due time all the required information to the registered auditor/auditing company, which is necessary for the examination and legalization of the report, including all written verifications, signed by the respective persons;
7. if necessary, to ensure associates and experts – employees of the company or persons, who carry out the current financial-accounting service of “CHIMIMPORT” Plc on the basis of specific contractual relations, to provide assistance during the examination.
8. to ensure all the other necessary conditions for completion of the examination and legalization on the part of the registered auditor/auditing company, including the possibility to observe the conduction of inventory of company’s assets and liabilities.
ІІІ. FINAL PROVISIONS
1. These Measures were adopted at a meeting of the Management Board of “CHIMIMPORT” Plc, held on Jan.22nd,2007 and become effective as of the date of their adoption.
2. Any amendments of these Measures can be made only in the order of their adoption.