To ensure independence and impartiality of the external auditor, Rosseti (PAO), acting as a tender organizer, arranged an open tender to select the Company’s auditor with the aid of the B2B-energo electronic trading platform located at http://www.b2b-mrsk.ru. Information on the tender for the right to conclude contracts on auditor services for FY2015-2017 was posted under No.31502075235 on 27.02.2015 at the B2B-energo electronic trading platform in the information system located at www.zakupki.gov.ru. RSM RUS (ООО) was recognized as the winner of the tender after re-biddings conducted with the aid of services of the electronic trading system (81). Bidders were estimated by the criteria, set and disclosed in the tender documentation.
The Company’s charter states that the Board of Directors recommends a nominee to conduct independent audit of the annual financial statements to the General Meeting after tender procedures. The General Meeting approves the Company’s auditor. The Company’s annual general meeting, conducted on Jun. 06, 2016 (Minutes No.9 dated as of 06.06.2016), decided to approve RSM RUS (ООО) as the Company’s auditor. The charter states that the Board of Directors decides on the amount of the auditor fee. The fee and payment procedure are stipulated by the contract between the Company and the audit firm (contract dated as of 06.09.2016 No.161а061). The auditor remuneration for the audit of FY2016 financial statements, prepared under RAS and IFRS , is decided by the Board of Directors on 15.08.2016 (82) at RUB 2,611,251.52, plus VAT. There were no other remunerations for non-auditing services due to the auditor.