Newsletter-21

239 CAPITAL MARKETS LAW Obligation to Prepare Financial Reports Financial tables are prepared annually. However, real estate mu- tual funds and venture capital mutual funds that disclose participa- tion shares more than once in an accounting year are also obliged to prepare semi-annual interim period financial tables. Financial tables are prepared in accordance with the Turkish Accounting Standards / Turkish Financial Reporting Standards brought into effect by the Pub- lic Oversight Accounting and Auditing Standards Authority. On the other hand, mutual funds are obliged to prepare asset allocation tables monthly, and value reports daily. The preparation principles of asset reports will be explained in detail, below. Liability Arising from Financial Tables Members of the board of directors must resolve to adopt financial reports prepared in accordance with the Communique. Moreover, pur- suant to Article 7 of the Communique, financial tables and portfolio reports that will be disclosed to public, along with financial tables, should include a statement by the board member responsible for inter- nal controls, and the fund manager that specifies i) financial tables and portfolio reports are examined by them, ii) with respect to the informa- tion known to them within their capacity, financial tables and portfolio reports do not include any false disclosures in significant matters, or as of the date of disclosure, do not include any deficiency that may lead to the disclosure being rendered misleading, iii) with respect to the information known to them within their capacity, the financial tables prepared in accordance with this Communique fairly reflect the ac- tives and passives of the fund, along with its financial situation, and profit and loss and portfolio reports are prepared in compliance with the internal regulations and prospectus of the fund and the relevant legislation. Pursuant to Article 7 of the Communique, the incorporator, and the board of directors of the incorporator, mutadis mutandis , are liable for the preparation and submission of financial tables and portfolio reports that will be disclosed to public with such, and the truth and authenticity thereof.