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 2019-2021, 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.
Mission of the internal audit is to maintain and increase the value of the organization by the objective internal audits based on a risk-oriented approach, recommendations providing and knowledge sharing.
In order to ensure the independence and objectivity of the internal audit, the Internal Audit Service of “NMH “Baiterek” JSC (IAS) is a body directly subordinated to the Board of Directors of “NMH “Baiterek” JSC and reports to it on the works performed.
In accordance with the requirements of the legislation of the Republic of Kazakhstan, the Charter and the Code of Corporate Governance of “NMH “Baiterek” JSC, the norms of the Regulation on IAS and the Rules of the internal audit organization of “NMH “Baiterek” JSC - IAS in its activity is guided by the International Professional Practices Framework for Internal Audit, the elements of which are the Mission and Definition of the internal audit, the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics and the International Standards for the Professional Practice of Internal Auditing (Standards), as well as the Code of Ethics and the Standards Implementation Guidance and Supplemental Guidance of The Institute of Internal Auditors on conducting internal audit.
Following the results of the first five years of the IAS activity from 2013 to 2017, an independent external assessment of its activity was conducted and the conformance to the Code of Ethics and the Standards was confirmed (79%). IAS maturity level, in accordance with the Public Sector Internal Audit Capability Maturity Model, in 2018 – Managed.
Based on the results of the external assessment in 2022, “KPMG Tax and Advisory” LLP confirmed the conformance of the IAS activities to the Code of Ethics and the Standards (99%). Maturity of the IAS in 2022, assessed in accordance with the Public Sector Internal Audit Capability Maturity Model, at the highest Optimizing level.
In addition to the audits of risk-significant areas in the activity of “NMH “Baiterek” JSC and consulting services, IAS periodically conducts comprehensive assessments of the effectiveness of the internal control systems, information security, fraud and corruption control, risk management and corporate governance of the Holding in accordance with the statutory provisions, internal methods and taking into account applicable international corporate standards.