PJSC Tatneft. Annual report 2017
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PJSC Tatneft. Annual report 2017

Audit committee

The Committee is a permanent committee of the Board of Directors of TATNEFT since 2004.

The principal task of the Committee is to assist the Board of Directors to conduct analysis and evaluation of the financial statements of TATNEFT, to monitor accuracy and completeness of TATNEFT IFRS and RAS accounting statements, to ensure the independent audit of financial statements, to control the internal audit system, and to ensure compliance of the Company with the requirements of legislation, regulations, regulatory standards, and requirements in the preparation of financial statements, audit, and accounting.

The activities of the Committee conform to the legislation of the Russian Federation, the requirements of exchanges applicable to the Company as an issuer of securities (including outside the Russian Federation), the Company’s Charter, the Regulations on the Board of Directors, decisions of the Board of Directors, the Regulations on the Committee, and other internal documents of the Company approved by the General Shareholders’ Meeting of the Company and the Board of Directors as well as by decisions of the Committee. The Committee acts in the interests of the Company’s shareholders.

MEMBERS OF THE COMMITTEE

Chairman

Yuriy Lvovich Levinmember of the Board of Directors, independent director. Managing Partner of BVM Capital Partners Ltd. Member of the HR and Remuneration Committee of the Board of Directors of TATNEFT.

Committee members:

Radik Raufovich Gayzatullin member of the Board of Directors, Minister of Finance of the Republic of Tatarstan

Laslo Gereche member of the Board of Directors, independent director. Managing Director of G Petroconsulting Ltd, member of the HR and Remuneration Committee of the Board of Directors of TATNEFT

René Frederic Steiner member of the Board of Directors, independent director. The Head of programs on direct private investments of FIDES Business Partner AG. Chairman of the HR and Remuneration Committee of the Board of Directors of TATNEFT.

There were no changes in the membership of the Audit Committee during the corporate year.

PRINCIPAL FUNCTIONS

  • Control over the completeness, accuracy, and reliability of the accounting (financial) statements of TATNEFT, including the preparation of the consolidated financial statements of the TATNEFT Group with the integration of the financial statements of Zenit Banking Group.
  • Coordination of activities of external auditors and the internal audit department and regular review of their reports.
  • Setting up independent assessment of the internal audit function and submission of proposals on improvement of the work of the internal audit division.
  • Verification of the independence of the external auditor.
  • Revision and analysis of quarterly, semiannual, and annual financial statements of TATNEFT, including the results of its inspections by the external auditor.
  • Assessment of candidate auditors and supplying to the Board of Directors recommendations regarding selection of independent auditors for IFRS and RAS financial statements of TATNEFT review.
  • Assistance to the Board of Directors in monitoring the functioning of internal control and risk management systems in TATNEFT.
  • Preliminary consideration of interested-party transactions, and transactions with parties related to TATNEFT that are submitted for approval to the Board of Directors of TATNEFT.

ACTIVITIES OF THE COMMITTEE IN THE REPORTING YEAR

In 2017, there were 7 in-person meetings of the Audit Committee. 41 issues were considered.

Principal issues considered:

Principal issues considered Issues pertaining to review of consolidated financial statements with participation of external auditors: 12 issues
Issues pertaining to selection of external auditors and confirmation of independence of external auditors: 5 issues
Issues pertaining to activities of the Internal Audit Division (IAD): 12 issues
Issues pertaining to preliminary consideration of interested-party transactions and transactions with parties related to TATNEFT that are submitted for approval to the Board of Directors of TATNEFT: 4 issues
Other issues: 8 issues

Audit committee consisting of independent directors was established in the Company to carry out preliminary consideration of issues pertaining to control of financial and economic activities of the Company. The committee promotes efficient exercise of functions of the Board of Directors pertaining to control of financial and economic activities of the Company.

STRUCTURE OF THE SIGNIFICANT ISSUES CONSIDERED BY THE AUDIT COMMITTEE IN 2017
Participation of independent members of the Board of Directors in meetings of the Audit Committee
Independent directors Jan 25 Mar 10 Apr 27 Jun 23 Jul 20 Sep 25 Nov 29 Total
Yu. L. Levin 7
Laslo Gereche 7
R. F. Shtainer 7