Kazakhstan Electricity Grid Operating Company KEGOC

Consolidated Balance

English

From 1997 to 2012 KEGOC engaged the following audit firms to conduct the external audit of the financial statements:

1997 - 1998, Arthur Andersen & Co

1999 - 2000, KPMG Audit LLP (Kazakhstan)

2001, Ernst & Young LLP (Kazakhstan)

2002-2011, Deloitte LLP (Kazakhstan)

2012 - present, Ernst & Young LLP (Kazakhstan) 

Ernst & Young LLP is an independent auditor, a member of the professional organization of the Chamber of Auditors of the Republic of Kazakhstan since 11 January 2006. The current engagement contract covers the period from 2016 to 2018. The audit services were purchased through a single source procurment procedure in accordance with paragraph 139 of the Rules for Procurement of goods, works and services by Samruk-Kazyna Sovereign Wealth Fund JSC and by organisations in which Samruk-Kazyna holds fifty per cent or more of voting shares (participation interest) either directly in ownership or indirectly under trust management (approved by Samruk-Kazyna Board of Directors, minutes No.80 26 May 2012). The total amount of the audit service fee is KZT 138,880,000 for 3 years including VAT.

The Audit Committee of KEGOC at the internal meeting No.1 held on 12 February 2015 considered the issue of "Assessment of the auditor independence in provision of services associated with validation of KEGOC’s sustainable development information as request by Ernst & Young LLP.

The Audit Committee, upon review of the submissions, decided to:

Confirm independence of Ernst & Young in provision of services associated with validation of KEGOC’s sustainable development information.

The Audit Committee of KEGOC at the physical meeting No.6 held on 15 October 2015 considered the issue of “Assessment of the auditor independence in provision of services associated with validation of KEGOC’s sustainable development information” as requested by Ernst & Young LLP.

The Audit Committee, upon review of the submissions, decided to:

Confirm independence of Ernst & Young in provision of services associated with validation of KEGOC’s sustainable development information. 

The Audit Committee of KEGOC at the meeting in praesentia on 10 December 2015 considered the issue "On estimation of auditor independence in provision of consultancy services to business transformation programme" according to the request of Ernst & Young LLP.

Having considered the presented materials the Audit Committee decided:

That since the provision of consulting services unrelated to the audit of financial statements and the level of remuneration for non-audit services could lead to a conflict of interest, real or perceived loss of objectivity, therefore the provision of consulting services for business transformation programme by Ernst & Young  shall not be approved.

       KEGOC Policy on External Audit