Time of Success

10. General Information about NCC’s Activity

10.2. Audit

Revision Committee

The Revision Committee is a control body performing the functions of internal financial and economic control over NCC’s activity. Members of the Revision Committee are elected at the annual General Shareholders Meeting of NCC.

The members of NCC’s Revision Committee are:

  1. Olga Melentyeva;
  2. Maxim Nikonov;
  3. Evgeny Zhdanov.

Operation of NCC Revision Committee is regulated by the ‘Regulation on the Audit Committee’ approved by the General Shareholders Meeting.

Audit

On 30 June 2020, the Annual General Shareholders Meeting passed its Resolution on approval of AO Deloitte & Touche CIS as its auditor under the Russian Accounting Standards (RAS) and the International Financial Reporting Standards (IFRS) for a period till the Annual General Shareholders Meeting of NCC in 2021.

Full Trade Name

Joint Stock Company “Deloitte & Touche CIS”

Abbreviated Name

AO Deloitte & Touche CIS

Place of Business

5 Lesnaya st, 125047, Moscow

Phone/Fax Number

Phone: +7 495 787 0600

Fax: +7 495 787 0601

E-mail

moscow@deloitte.ru

Full name and place of business of the self-regulatory organization of auditors, the member of which the auditor is (was)

Self-Regulatory Organization of Auditors “Russian Union of Auditors” (Association) (SRO RUA)
8 Petrovsky Pereulok, bld. 2, 107031, Moscow

Financial year, for which the auditor carried out the independent audit of the financial accounting and the financial statements in compliance with the Russian Laws and the International Financial Reporting Standards (IFRS)

2017, 2018, 2019, 2020

In compliance with the legislation of the Russian Federation, AO Deloitte & Touche CIS is authorized to carry out independent audit of the financial accounting, financial statements and tax statements of NCC and financial performance for the financial year, the internal control framework, preparation and presentation of audit reports on the reliability of NCC’s statements for the financial year generated according to RAS and IFRS, and, in case of detection of any material weaknesses of the accounting system and internal control, drafting of an information letter addressed to the NCC’s Governance describing the detected weaknesses.

The auditing organization has no significant common interests with NCC and Moscow Exchange Group. Interaction with the auditor is based on the Audit and Review Service Agreement. The purpose of audit is to express opinion on the reliability of the financial statements of NCC and the compliance of the accounting methods used with the legislation of the Russian Federation. The reliability implies the degree of accuracy of the information contained in the financial statements, enabling the users of such statements to draw correct conclusions concerning the results of the economic activities and financial and proprietary status of NCC, and to make informed decisions based upon such conclusions. During audit, the auditor audits the tax ledgers and tax statements provided by the Company in the prescribed form of tax statements (tax returns, tax assessment, etc.) and the legitimate use of tax reliefs.

The purpose of the review is to draw a conclusion that during performance of the limited scope of control processes, no facts, which can form the basis to consider that NCC’s interim financial statements for the first half of the year were generated in all material respects according to International Accounting Standard 34 ‘Interim Financial Reporting’, were detected. The audit is a multi-phase process:

Phase 1: analysis of NCC’s information systems;

Phase 2: review of the interim financial statements according to IFRS for the first half of the year;

Phase 3: interim processes; audit of the status of accounting and control, account balances and tax statements for 9 months of the financial year;

Phase 4: final processes — audit of the status of accounting and control, account balances, financial statements according to RAS and IFRS, and tax statements for twelve month the financial year.

According to the Audit and Review Service Agreement, the audit organization assumes the obligations of full compliance with the legal acts of the Russian Federation and other regulations in compliance with Federal Law 307-FZ dated 30.12.2008 ‘On Auditing’, international standards on audit, and federal auditing standards being in effect in the Russian Federation. In addition, the audit organization shall ensure the safety and return of the documents received during the audit, shall not disclose contents thereof  or any other information without NCC’s consent, except as otherwise specified by the legislation of the Russian Federation; shall provide the Company, upon its request, with the necessary information on the provisions of the Russian Federation legislation concerning audit, inter alia, tax audit and the regulations, on which the auditor’s comments and conclusions are based; audits the documentation on the financial and economic activities of NCC and availability of any assets recorded by such documentation. In case of detection of any incompliances with the tax law and misstatements of the financial and tax statements of NCC, which are of the material nature, the audit organization shall inform the Company’s Governance about the liability for such incompliances and the need to amend the financial statements, adjust the tax returns and assessments. The audit organization shall determine the forms and methods of audit independently in compliance with the regulations of the Russian Federation and the specific terms and conditions of the Audit Service Agreement. During audit, the Company shall, on request of the auditor, be committed to providing an environment for and assisting the auditors for carrying out timely and complete audit and tax audit. NCC shall provide the specialists of the audit organization with any and all information requested by them and documentation required for audit, provide full explanations and confirmations on the auditors’ request, and request data necessary for audit from third parties.