Colt CZ : Report on Activities of Audit Committee for 2023

COLT

CZGROUP

inventory, the status of receivables and liabilities, the creation of reserves, accruals, and derivatives operations.

To verify the quality of the audit, two members of the Audit Committee visited Colťs Manufacturing Company LLC in West Hartford. During the meeting, they familiarized themselves with the American auditors and their activities, thereby verifying the quality of information provided to the statutory auditor. They also participated in the finished goods inventory process and were informed by senior management about the interna! control system within the company.

The Audit Committee further investigated how the findings and recommendations from the previous annual financial statement audit were applied and assessed the independence of the statutory auditor and the audit firm.

The Chairman of the Audit Committee is invited to Supervisory Board meetings and informs the supervisory body about the outcome of the mandatory audit, the insights gained from monitoring the mandatory audit process, and how the mandatory audit contributed to ensuring the integrity of the accounting and financial reporting system.

ln Prague on May 31, 2024

/�PhD Chairman of the Audit Committee

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