INFORMATION ABOUT AN AUDIT ORGANIZATION
PricewaterhouseCoopers (hereinafter – PwC) network of companies has been the Company’s external auditor since 2012. Previously it was KPMG network of companies that provided audit services.
PwC provides “Samruk-Energy” JSC with the following services:
- Audit of consolidated and separate financial statements;
- Consulting services;
- Training.
PwC network of companies provides audit, tax and consulting services, which are aimed at increasing the value of customers’ business. More than 223 468 people in 157 countries worldwide unite their ideas, experiences and solutions to develop new approaches and give customers practical advice. For more information, please visit www.pwc.kz.
PwC is a leading firm which delivers services to transnational power, oil and gas companies. Integration of products and resources into a single, industry-focused practice allows providing high quality services and add value to the customers operations. PwC engages global resources for on-site work so that customers can take advantage of knowledge and practice and introduce all this into daily activities.
At present PricewaterhouseCoopers Kazakhstan staff numbers over 400 persons in Almaty and Astana and provides services to a significant list of national and international clients. In addition, the company actively operates in the Central Asian region: in Baku (Azerbaijan), Yerevan (Armenia), Tbilisi (Georgia), Bishkek (Kyrgyzstan), Tashkent (Uzbekistan), Ashkhabad (Turkmenistan) and Ulan Bator (Mongolia). Along with the company, the number of its customers in all sectors of the economy, including the fuel and energy sector, financial services, consumer and industrial goods, telecommunications and service industry has also increased.
PwC’s world energy group specializes in providing consulting services to customers operating in every sector of energy market through a worldwide network of 4 000 energy professionals. PwC employees in Kazakhstan have experience in working with the most complex and technically difficult projects. These projects continue to work successfully – the obtained knowledge is used in work with customers of energy sector and other customers.
PwC provides services that combine professional knowledge, industry specificity, international best practices and an understanding of cultural differences. Throughout the world, PwC customers in the audit are more than 2500 heat and electricity companies, among them:
PwC Global audit clients in energy sector:
| AGL Resources Inc. | Consolidated Edison Inc. | N.V. Nuon |
| Allegheny Energy, Inc. | Constellation Energy Group Inc. | National Fuel Gas Company |
| Ameren Corporation | DTE Energy Corporation | National Grid plc |
| American Water Works Company | E.ON AG | NSTAR |
| BG Group plc | Edison International | Pepco Holdings, Inc. |
| British Energy Plc | Enbridge Inc | Puget Energy, Inc. |
| Calpine Corporation | Energy Australia | RusHydro |
| Centrica plc | Exelon Corporation | RWE AG |
| China Power International Generation Company Limited | Federal Grid | Southern Union Company |
| CLP Holdings Limited | Huaneng Power International, Inc. | Southwest Gas Corporation |
| CMS Energy Corporation | Koc Holding A.S. | TECO Energy, Inc. |
As a firm with a leading position in the market of large, global corporations, PwC understands the preferences of the most complex and demanding customers in the field of global accounts management, mobilizing resources, and ensuring consistent interaction. Leadership of PwC is confirmed by the market share: PwC conducts an audit of the majority of Fortune Global 500 companies than any other firm of the “Big Four”.
Over the past 19 years, PwC has been a leading provider of audit and advisory services in the Kazakhstan energy sector. PwC works with the largest Kazakhstan mining and power companies which have received over the last few years or currently receive audit services for financial statements prepared in accordance with IFRS. PwC employees in Kazakhstan have experience in working with the most complex and technically difficult projects. These projects continue to work successfully – the obtained knowledge is used in work with customers of the energy industry and other customers.
The following companies are among the largest PwC audit clients in Kazakhstan:
| Company | Activity | Period |
| Samruk-Energy, JSC | Holding company | 2008–2010, 2012–2016 |
| Alatau Zharyk Company, JSC | Services for power distribution, technical distribution of power in Almaty and Almaty region | 2010, 2012–2016 |
| Almaty Power Plants, JSC | Electricity and heat production for Almaty and Almaty region | 2010, 2012–2016 |
| AlmatyEnergoSbyt, LLP | Sale of electricity in Almaty and Almaty region | 2008–2010, 2012–2016 |
| Shardarinsk HPP | Electricity production | 2007 |
| Moynak HPP, JSC | Construction of hydropower plant on Charyn river | 2008, 2012–2016 |
| Mangistau Distribution Power Grid Company, JSC | Services for electricity transportation, technical distribution of electricity for oil and other companies, as well as power sales services to remote rural areas of Mangistau region. | 2008–2010, 2012–2016 |
| Plant Ekibastuz SDPP-2, JSC | Electricity and heat production on the basis of coal extracted from “Bogatyr” and “Severny” open-pit coal mines | 2005–2009 |
| East-Kazakhstan Regional Energy Company, JSC | Electricity transmission and distribution | 2012–2016 |
| Eurasian Energy Corporation, JSC | Open coal mining at Vostochny coal strip mine and power production | 2005–2016 |
| Bogatyr Komir, LLP | Open coal mining at “Bogatyr” and “Severny” coal strip mines | 2008–2010, 2012–2016 |
| MAEK – Kazatomprom, LLP | Electricity production | 2014–2016 |
| Almaty Water Holding company | Extraction, transportation, sale of cold water and waste water disposal in Almaty city | 2010–2012 |
Fees paid to the audit firm for auditing services and separately for services not associated with audit of financial statements for 2016
| Services | 2016 |
| Audit | 25,360,563 tenge |
| Consulting | 86,949,633 tenge |
| Training | 5,684,984 tenge |
Hiring an Audit firm’s employees to the Company
In the event of expected appointment of an audit organization employee who participated in the compulsory audit of the Company as an employee of an audit organization within two years preceding the date of his/her appointment (election) to the Company as a member of the Management Board, managing director and chief auditor, it is required to obtain a preliminary approval of the Audit Committee in order to avoid conflicts of interest.
Opinion of an independent auditor
In the opinion of the external auditor “PricewaterhouseCoopers” LLP, consolidated financial statements fairly present, in all material respects, financial standing of “Samruk-Energy” JSC and its subsidiaries as of December 31, 2016, as well as its financial results and cash flows for the year then ended in compliance with International Financial Reporting Standards.