Page 68 - Annual Report 2023

BANKA KOMBËTARE TREGTARE

Emin Duraku Str. Binjaket Build.
No.5, 1009, Tirana
Albania
Tel: +355 4 2222 889
www.mazars.al

INDEPENDENT AUDITOR’S REPORT
To management and Shareholders of Banka Kombëtare Tregtare sh.a

Qualified Opinion
We have audited the consolidated financial statements of Banka Kombëtare Tregtare sh.a (the Bank), which comprise the
consolidated statement of financial position as at December 31, 2023, the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, except for the effects of the matter described in the “Basis for the Qualified Opinion” section of our report,
the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position
of the Bank as at 31 December 2023, its consolidated financial performance and its consolidated cash flows for the year
ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Qualified Conclusion
The Bank has treated its share capital issues in United States Dollar (USD) as a monetary item in the consolidated financial
information and recognized the revaluation differences for the year ended December 31, 2023 within net profits in the
consolidated statement of profit or loss and other comprehensive income. This treatment is not in accordance with
International Accounting Standard (IAS) 21 “The effects of Changes in Foreign Exchange Rates” which requires share
capital to be treated as a non-monetary item and carried at the exchange rate of the date of the transaction. Had the Bank
treated its share capital in accordance with IAS 21 requirements, the share capital as of 31 December 2023 would have
been increased by USD 56,257,369, retained earnings would have been decreased by USD 17,169,712 and the net profit
would have been decreased by USD 39,087,657 for the year period ended 31 December 2023. Nevertheless, this would
not have affected the total shareholder’s equity.
Other matters
Consolidated financial statements for the year ended December 31, 2022 have been audited by another auditor who issued
a modified audit opinion regarding the accounting treatment of share capital on March 30, 2023.
Other information
Management is responsible for the other information. The other information comprises the information included in the
Annual Report of the Bank prepared by Management in accordance with Article 53 of Law no. 9662, dated 18 December
2006 “On Banks in the Republic of Albania”, amended and with article no. 18 of the law no. 25/2018 “On Accounting and
financial statements”. The Annual Report of the Bank is expected to be made available to us after the date of our audit report.
Our opinion on the consolidated financial statements does not cover the other information and we will not express any form
of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility
is to read the other information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or knowledge obtained in the audit, or appears to be
materially misstated.
When reading the Annual Report of the Bank, if we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with IFRS and for such internal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Bank’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of