Audit Committee

Committee establishment date 16 October 2009
Date and number of the minutes of the Board meeting, at which the Regulations on the Committee (as amended) were approved No. 233/2016 dated 18 March 2016, as amended by No. 253/2016 dated 28 October 2016 and No. 494/2022 dated 26 October 2022
Key tasks of the Committee
  • To review the Company’s financial statements and supervision of their preparation
  • To monitor the reliability and efficiency of the internal control system, risk management system and corporate governance practices
  • To control over external audits and selection of the auditor
  • To ensure independence and objectivity of the internal audit function
  • To control over the efficiency of the system for countering unfair practices of the Company’s employees or third parties
Members of the Board of Directors in office in the reporting year

Committee composition from 1 August 2023 to 23 July 2024, current Committee composition elected on 23 July 2024

  1. Anton Ulyanov (Committee Chairman), Internal Audit Director — Head of the Internal Audit Department of Rosseti PJSC, Chairman of the Internal Audit Commission of Rosseti Kuban JSC
  2. Alexander Kazakov, member of the Board of Directors of Rosseti Kuban JSC
  3. Mikhail Medvedev, adviser to General Director of Avangard JSC, member of the Board of Directors of Rosseti Kuban JSC
Performance results of the Committee in the reporting year Indicator 2022 2023 2024
Number of Committee meetings held 15 14 18
  • Including in person (in mixed format)
3 3 4
Number of issues discussed 43 44 41
Share of issues preliminarily considered by the Committee with preparation of recommendations to the Board of Directors in the total number of issues considered (%) 44.2 45.5 46.3
Average attendance of the Committee meetings by the Committee members (%) 100 100 100

In the reporting year, the Committee provided the Board of Directors with conclusions (recommendations) on the following critical issues:

  • On approval of the following:
    • Report on the implementation of the action plan and the results of the internal audit activity, including the results of the self‑assessment, as well as measures to develop and improve the internal audit activity
    • Format of the external independent assessment of internal audit activities
    • Antitrust compliance policy
    • Work plan and budget of the Internal Audit Directorate
  • On consideration of the candidate of the Company’s audit organisation for auditing of the Company’s statements for 2024 and on determination of the compensation paid for these services
  • On approval of the new version of the Regulations on the Internal Audit Directorate
  • On consideration of the following reports (information):
    • On the organisation, functioning and effectiveness of the Company’s risk management and internal control system
    • Internal audit report on the evaluation of measures to identify and dispose of non‑core assets
    • Anti‑corruption monitoring report
    • Internal audit on the assessment of reliability and efficiency of the Company’s risk management and internal control system
    • Company’s accounting (financial) statements prepared under RAS
    • Report of the Audit Committee of the Board of Directors on its work for the 2023–2024 corporate year

In the reporting year, the Audit Committee of the Board of Directors also considered the following:

  • Reviewed the information provided by the audit organisation on the main issues of the Company’s accounting (financial) statements and the consolidated financial statements prepared under IFRS
  • Approved the opinion on the quality of the audit, the auditor’s reports and the effectiveness and quality of the external audit of the Company’s accounting (financial) statements
  • Reviewed reports (information) of the Company’s management:
    • On implementation of the corrective measures to eliminate gaps identified by the Company’s Auditing Commission, Company’s internal audit, third‑party control and supervision bodies on measures taken to address the information about potential cases of unfair practices of employees, and following the results of investigations made
    • On non‑standard operations and events of the Company, as well as regarding the formation of a reserve on doubtful debts and estimated liabilities