LEKKERLAND CORPORATE GOVERNANCE CODEX

7 Accounting and auditing

7.1 Accounting

7.1.1 Shareholders and third parties are mainly informed by the consolidated financial statements and the Group management report. They are also provided with information in the half-year report during the course of the business year. The consolidated financial statements are drawn up on the basis of the relevant internationally recognised accounting principles.

7.1.2 The consolidated financial statements are prepared by the Board of Management. They are audited by the auditor and by the Supervisory Board.

7.1.3 not relevant

7.1.4 The Company should publish a list of third-party companies in which it has a shareholding that is not of minor importance for the enterprise.

7.1.5 The consolidated financial statements should also include explanations of any relationships with shareholders who qualify as related parties in accordance with the applicable accounting regulations.

7.2 Auditing

7.2.1 Before putting forward any proposals to a vote, the Supervisory Board and/or the Audit Committee should obtain a declaration by the designated auditor stating whether, and where applicable, which business, financial, personal, or other relationships exist between the auditor and its executive officers and audit managers on the one hand and the enterprise and its executive officers on the other hand, that could cast doubt on the auditor’s independence. The declaration should also define the extent to which other services were provided in the previous business year for the enterprise, in particular in the field of consultation, and/or have been agreed contractually for the following year.

The Supervisory Board should agree with the auditor that the Chairman of the Supervisory Board and/or the Audit Committee should be immediately informed about any grounds relating to the exclusion or bias that emerge during the course of the audit, if these are not immediately eliminated.

7.2.2 The Supervisory Board commissions the auditor to carry out the audit and concludes the agreement on fees with the auditor.

7.2.3 The Supervisory Board should further agree that the auditor must immediately report important assessments and events which emerge from performance of the audit of the financial statements and which affect the functions of the Supervisory Board.

The Supervisory Board should further agree that the auditor must inform the Supervisory Board and/or make reference in the audit opinion if the auditor uncovers facts in the course of performing the audit of the financial statements which indicate that the declaration provided by the Board of Management and the Supervisory Board in relation to the Corporate Governance Code is incorrect.

7.2.4 The auditor participates in the deliberations of the Audit Committee of the Supervisory Board relating to the annual financial statements and consolidated financial statements and reports on the main results of the audit.

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