External Audit

External auditor of financial statements of JSC "NMH "Baiterek"

The choice of an audit organization for JSC "NMH "Baiterek" and organizations, fifty or more percent of voting shares (participatory interest) of which directly or indirectly belong to JSC "NMH "Baiterek" on the basis of ownership or trust management is carried out in accordance with the Rules for the procurement of goods, works , services by national management holdings, national holdings, national companies and organizations, fifty or more percent of voting shares (participatory interests in the authorized capital) of which directly or indirectly belong to the national management holding, national holding, national company.

Since 2014, KPMG Audit LLP has been providing audit services for Baiterek Holding:

– by the resolution of the Board of Directors of Baiterek Holding dated July 24, 2014 #06/14 for 2014; the remuneration is 24,640.00 thousand tenge (including VAT);

– by the resolution the Board of Directors of Baiterek Holding dated February 12, 2015 #02/15 for 2015-2018; the remuneration is 26,600.00 thousand tenge (including VAT) annually;

– by the resolution of the Board of Directors of Baiterek Holding dated May 15, 2019 #04/19 for 2019-2021, the remuneration is 42,560.00 thousand tenge, 45,584.00 thousand tenge, and 48,720.00 thousand tenge respectively, by year (including VAT).

– in accordance with the Decision of the meeting of the Board of Directors of JSC «NMH «Baiterek» dated May 28, 2024 № 05/24 for 2024-2026.

In 2019-2023, KPMG Audit LLP did not provide any consulting services for Baiterek Holding that were not related to the audit of financial statements amounting to more than 50% of the total remuneration paid to the audit organization.

Internal Audit

The Internal Audit Service (hereinafter – IAS) has been established and is operational at Baiterek NIH JSC. Its mandate is prescribed in the Law of the Republic of Kazakhstan "On Joint Stock Companies", the Charter of the Baiterek NIH JSC, the Corporate Governance Code of Baiterek NIH JSC and the Regulation on the IAS, approved by the resolution of the Board of Directors of the Baiterek NIH JSC.

The purpose of the IAS is to strengthen the Baiterek NIH JSC’s ability to create, protect, and sustain value by providing the board and management with independent, risk-based, and objective assurance, advice, insight, and foresight.

IAS enhances the Baiterek NIH JSC’s:

- Successful achievement of its objectives.

- Governance, risk management, and control processes.

- Decision-making and oversight.

- Reputation and credibility with its stakeholders.

- Ability to serve the public interest.

IAS is most effective when:

- It is performed by competent professionals in conformance with the Global Internal Audit Standards, which are set in the public interest.

- The internal audit function is independently positioned with direct accountability to the board.

- Internal auditors are free from undue influence and committed to making objective assessments.

The main objective of the IAS is to carry out internal audit – independent and objective assurance and consulting services aimed at improving the Baiterek NIH JSC 's performance and assisting in the achievement of the Baiterek NIH JSC 's objectives, by applying a systematic, consistent approach to assessing and improving the effectiveness of internal control, risk management and corporate governance.

The independence of the IAS is ensured by its organizational position, which provides for organizational subordination and functional accountability of the IAS to the Board of Directors of the Baiterek NIH JSC. The IAS is directly subordinate to the Board of Directors and reports to it on its work. The IAS activities are supervised by the Audit Committee of the Board of Directors of the Baiterek NIH JSC.

The IAS is committed to adhere to the mandatory elements of The Institute of Internal Auditors' International Professional Practices Framework, which are the Global Internal Audit Standards and Topical Requirements