Partial termination of the agreement with an entity authorized to audit financial statements

Legal basic: Art. 56 item 1 point 2 of the Public Offering Act – current and periodic information

The Management Board of "Polimex-Mostostal" SA with its registered office in Warsaw (the “Company”) announces that today, by mutual agreement [of the Parties], it has partially terminated an agreement on the audit of financial statements with an entity authorized to audit financial statements, i.e. with Deloitte Polska Sp. z o.o. sp.k. with its registered office in Warsaw (the “Agreement”).

The agreement was modified on the initiative of both parties following the entry into force of the Act of 11 May 2017 on statutory auditors, audit firms and public oversight, which sets a maximum 5-year period to carry out audit of financial statements of the companies that are subject to public interest; hence, the execution of the Agreement cannot be continued in the scope of the audit/review of the interim financial statements for the period ending on 30 June 2018 and of the financial statements for the period ending on 31 December 2018. Therefore, a partial termination of the Agreement was necessary, in the scope concerning the aforementioned services. The agreement remains in force in the scope of financial statements’ audit for the period ending on 31 December 2017.

During the term of the Agreement, there were no cases of resignation from expressing opinions, issuing negative opinions or issuing opinions with expression of reservations about the correctness and/or accuracy of the Issuer’s financial statements and/or consolidated financial statements.
During the term of the Agreement there were no cases of discrepancies relating to the interpretation and application of the law or the provisions of the articles of association/statute relating to the audit’s object and scope, audit/review or other services between the management and the auditor performing the audit/review and/or other services related to the Issuer’s financial statements or consolidated financial statements.

The statutory auditor’s letter, drawn up at the Issuer’s request and addressed to the Financial Supervision Commission (KNF), in which the entity will refer to the information provided in this current report will be made public immediately after its receipt by the Company.

Legal basis: Article 5 item 1 point 20 of the Minister of Finance Regulation of 19 February 2009 on current and periodic information published by issuers of securities and the conditions for recognizing as equivalent the information required by the law of a non-member state