Rokiskio Suris

Board/Management Information • Apr 8, 2024

Audit Committee report for 2023

The Audit Committee of Rokiškio sūris AB was elected at the Ordinary General Meeting of Shareholders of Rokiškio sūris AB held on 30 April 2021. The Audit Committee is composed of 3 members, two of whom are independent. The term of office of the Audit Committee is four years.

The Audit Committee is guided in its activities by the Law on Audit of Financial Statements, the Resolution of the Board of the Bank of Lithuania of 24 January 2017 No.03-14 "On the Approval of the Schedule of Requirements for the Audit Committees", the Resolution of the Securities Commission of the Republic of Lithuania "On the Requirements for the Audit Committees", as well as the Articles of Association of AB Rokiškio sūris, and the approved Regulations on the Establishment and Activities of the Audit Committee.

In 2023, the Audit Committee held 3 meetings, during which the principles for the preparation of the 2022 consolidated financial statements were discussed and conclusions were drawn, the process for the preparation of the 2023 half-yearly consolidated financial statements, the main risks, the impact of the war in Ukraine, the measures taken to minimise risks, the application of the accounting principles, and the conclusions drawn.

The Audit Committee organises its work taking into account the specific nature of the Company's activities. external factors and changes in the legal environment. The Committee monitored the Company's financial reporting process and was informed of any potential inconsistencies with accounting policies or disclosure issues. There was regular communication between the members of the Audit Committee and the persons responsible for the preparation of the financial statements, and information relating to the work of the independent auditor was obtained.

The Company's management cooperated closely with the members of the Audit Committee and provided timely and appropriate detailed information relating to the specific accounting, financial and operational features of the Company. The audit findings were communicated to the Company's management and a plan of action was developed to address the identified weaknesses.

The Group maintains its accounting records and prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union. Sufficient attention is paid to the timely implementation of all legislative changes governing the preparation of financial statements.

The consolidated Rokiškio sūris Group consists of the parent company Rokiškio sūris and five subsidiaries -Rokiškio pienas UAB, Rokiškio pieno gamyba UAB, Jekabpils piena kombinats SIA, DairyHub.lt UAB, Kaunata SIA.

The Company operates in accordance with an operational strategy prepared and approved by the Board of Directors, with key objectives covering the most important areas of management. The Company operates a system of internal control to achieve these objectives. Their main functions are to analyse, evaluate and make recommendations for improving the efficiency of the Company's business processes. The Company's business processes are managed and controlled through information systems. The Company's information systems are continuously updated and improved by introducing new modules in line with the changing needs of the Company and its business processes.

The audit of the 2023 financial statements of AB Rokiškio sūris Group was performed by the newly appointed independent international audit firm BDO Auditas ir apskaita, UAB. During a meeting with BDO Auditas ir apskaita, UAB on 16 January 2024, the audit team discussed a summarised audit plan setting out the

stakeholders' and BDO Auditas ir apskaita, UAB's overall understanding of the current situation, a description of the main risk factors, the ESEF reporting, the audit plan of the external auditors, and other issues. The Audit Committee approved the draft audit engagement and had no comments. In accordance with the requirements of the Law on Audit of the Republic of Lithuania, the audit firm has provided the Audit Committee with a written confirmation of the audit firm's independence. The Audit Committee has not identified any instances of the provision of services that are contrary to the laws on auditing of the Republic of Lithuania and the principles of professional ethics of auditing and that may affect the independence of the audit firm.

In the opinion of the Audit Committee, the Company's internal control system operates effectively, objectively and independently to provide management with the necessary information at the required intervals. The financial statements are prepared on a timely basis in accordance with International Financial Reporting Standards as adopted by the EU and present fairly the financial information. The members of the Committee, having read the consolidated audited annual financial statements and the consolidated annual report, proposed to the Board of Directors of the Company to submit the consolidated audited annual financial statements for the year 2023 to the shareholders of the Company for approval.

Kęstutis Gataveckas, Chairman of the Audit Committee