Termination of contracts with entity authorized to audit financial statements

The Board of STALPROFIL S.A. (Company) informs that on 29 January 2018, with agreement by the parties, were terminated contracts concluded on 15 April 2016 between the Company and Kancelaria Porad Finansowo-Księgowych dr Piotr Rojek Sp. z o.o. with its registered office in Katowice, in the field of:
1. Auditing of the annual unconsolidated and consolidated financial statements as at 30.06.2018, in accordance with accepted accounting principles under International Financial Reporting Standards.
2. Auditing of the annual unconsolidated and consolidated financial statements as at 31.12.2018, in accordance with accepted accounting principles under International Financial Reporting Standards.
The need to take a decision on the termination of the contracts contained in the three-year period (including audit and review of unconsolidated and consolidated financial statements of the Company for the years 2016-2018) in the parts referred to in paragraphs 1 and 2 is dictated by the entry into force of the Act of 11 May 2017 on statutory auditors, audit firms and public supervision (hereinafter the Act) introducing arrangements provided for in the Regulation of the European Parliament and of the Council (EU) No. 537/2014 of 16 April 2014 on specific requirements regarding statutory audit of public interest entities.
Due to entry into force of the Act and in accordance with the position received by the Company from the Ministry of Finance, Department of Accounting and Auditing, performing audits of financial statements for 2018 requires appointing an auditor in accordance with the procedure referred to in Article 16 paragraph. 3 of the EU Regulation 537/2014, art. 130 paragraph and article 2-7 of the Act and art. 283 of the Act.
For these reasons, carrying out statutory audits for 2018 by an entity authorized to audit financial statements - Kancelaria Porad Finansowo-Księgowych dr Piotr Rojek Sp. z o.o. - on the basis of existing contracts is not possible, which constituted a reasonable basis for termination of the contracts to the extent that they go beyond the audit for 2017.
The termination of contracts was approved by the Supervisory Board.
During the term of the contracts there was no case of disagreement on the interpretation and application of the law or the Articles of Association concerning the subject of research, review or other services between the management and the auditor, who performed the study, review or other services related to unconsolidated financial statements or consolidated financial statements of the Company.
During the term of the contracts with the entity authorized to audit financial statements there were no cases of resignation from expressing an opinion, a negative opinion or an opinion with reservations about correctness and accuracy of unconsolidated financial statements or consolidated financial statements of the Company.
The Board of STALPROFIL S.A. encloses a letter prepared at the request of the Company and adressed to the Commission, in which the auditor confirms the information given in this report.