our management Report

INDEPENDENT AUDITORS' REPORT

To the GFT Gemeinschaft Fernmelde-Technik eG, Hilden

Report on the audit of the annual financial statements and the management report

Audit Opinions

We have audited the annual financial statements of GFT Gemeinschaft Fernmelde-Technik eG, Hilden, comprising the balance sheet as at 31st of December 2022 and the income statement for the financial year from 1st January of 2022 to 31st December of 2022, and the notes to the financial statements, including a description of the accounting and valuation methods.

We have also audited the management report of the cooperative for the financial year from 1st January of 2022 to 31st December of 2022.

In our opinion based on the findings of our audit

  • the attached annual financial statements comply in all material respects with the German commercial law provisions applicable to cooperatives and give a true and fair view of the net assets and financial position of the cooperative in accordance with German principles of proper accounting.
  • the attached management report as a whole provides a suitable view of the cooperative's position; and
  • the management report is consistent with the annual financial statements, complies with German legal requirements and
  • accurately presents the opportunities and risks of future development.

In accordance with § 322 para. 3 sentence 1 of the German Commercial Code (HGB), we declare that our audit has not led to any reservations concerning the correctness of the annual financial statements and the management report.

 

Basis for the audit judgments

We conducted our audit of the annual financial statements and the management report in accordance with § 53 Para. 2 GenG in conjunction with § 317 HGB. § 317 HGB and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Our responsibility according to these regulations and principles is further described in the section "Auditor's responsibility for the audit of the annual financial statements and the management report" of our auditor's report. We are independent of the Company in accordance with German commercial law and professional regulations and have fulfilled our other German professional obligations in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the annual financial statements and the management report.

 

Other Information

The legal representatives are responsible for the other information.

The other information relates to the annual report and the statements made therein.

Our opinions on the financial statements and the management report do not cover the other information and, accordingly, we do not express an opinion or any other form of conclusion on it.

In connection with our audit, we have a responsibility to read the other information and, in doing so, assess whether the other information is

  • are materially inconsistent with the annual financial statements, the management report or our knowledge obtained in the audit, or
  • otherwise appear to be materially misstated.

 

Responsibility of the Legal Representatives and the Supervisory Board for the Annual Financial Statements and the Management Report

Management is responsible for the preparation and fair presentation of these financial statements in accordance with German principles of proper accounting and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the legal representatives are responsible for assessing the cooperative's ability to continue as a going concern. They are also responsible for disclosing, as applicable, matters related to going concern. Furthermore, they are responsible for preparing the accounts on the basis of the going concern principle, unless factual or legal circumstances prevent this.

Furthermore, the legal representatives are responsible for the preparation of the management report, which as a whole provides a suitable view of the cooperative's position and is consistent in all material respects with the annual financial statements, complies with German legal requirements and suitably presents the opportunities and risks of future development. Furthermore, the legal representatives are responsible for the arrangements and measures (systems) they have deemed necessary to enable the preparation of a management report in accordance with the applicable German legal requirements and to provide sufficient appropriate evidence for the statements made in the management report.

The Supervisory Board is responsible for overseeing the cooperative's financial reporting process for the preparation of the annual financial statements and the management report.

 

Auditor's Responsibility for the Audit of the Annual Financial Statements and the Management Report

Our objective is to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the management report as a whole provides a suitable view of the Company's position and is consistent, in all material respects, with the annual financial statements and the audit findings, complies with German legal requirements and suitably presents the opportunities and risks of future development, and to issue an auditor's report that includes our audit opinion on the annual financial statements and the management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with§ 53 Para. 2 GenG in conjunction with. § 317 HGB in accordance with German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements and management report.

During the audit, we exercise professional judgement and maintain a critical attitude.

Furthermore

  • identify and assess the risks of material misstatement of the annual financial statements and management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinion. The risk of not detecting a material misstatement is higher in the case of non-compliance than in the case of misstatement, as non-compliance may involve fraud, forgery, intentional omissions, misleading representations or the override of internal controls.
  • obtain an understanding of internal control relevant to the audit of the financial statements and of the arrangements and actions relevant to the audit of the management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the cooperative's systems.
  • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
  • conclude on the appropriateness of the going concern basis of accounting used by management and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the cooperative's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements and management report or, if such disclosures are inadequate, to modify our respective audit opinion. We draw our conclusions on the basis of the audit evidence obtained up to the date of our audit opinion. However, future events or circumstances may result in the Cooperative being unable to continue as a going concern.
  • we assess the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a manner that the annual financial statements give a true and fair view of the net assets, financial position and results of operations of the cooperative in accordance with German principles of proper accounting.
  • we assess the consistency of the management report with the annual financial statements, its compliance with the law and the view of the company's position conveyed by it.
  • perform audit procedures on the forward-looking statements in the management report presented by the legal representatives. On the basis of sufficient appropriate audit evidence, we in particular verify the significant assumptions underlying the forward-looking statements made by the legal representatives and assess the appropriate derivation of the forward-looking statements from these assumptions. We do not express an independent opinion on the forward-looking statements or the underlying assumptions. There is a significant unavoidable risk that future events may differ materially from the forward-looking statements.

We discuss with those charged with governance, among other matters, the planned scope and timing of the audit and significant audit findings, including any deficiencies in internal control that we identify during our audit.

Munich, 8th of March 2023

Genossenschaftsverband Bayern e.V.

Drexl
Auditor

Löw
Auditor