Audit and internal control system

SIBUR engages an external auditor to review its RAS and IFRS financial statements on an annual basis. Tender-based selection of an auditing firm ensures transparency, objectivity and independence of the procedure.

The annual general meetings of shareholders held on 2 April 2020 and 7 April 2021 re-approved JSC PricewaterhouseCoopers Audit as the Company’s auditor.

Risk management is a tool to strike a balance between seizing new opportunities and minimising potential losses.

SIBUR’s risk management system includes risk identification, analysis, assessment, selection, response measures, as well as monitoring and control of all focus areas.

Risk management principles:

• Comprehensive approach
• Shared responsibilities
• Goal setting
• Risk-based decision making
• Open communication
• Flexibility and openness to change
• Continuity of processes
• Retrospective risk analysis

The purpose of internal audit is to assist the Board of Directors and executive bodies of the Group in improving management efficiency of the Company and its subsidiaries, streamlining their business operations through a systemic and consistent approach to the analysis, assessment and enhancement of risk management, internal control, and corporate governance systems as mechanisms to provide reasonable assurance in delivering the Group’s goals.

Internal audit in the Company is based on the following principles:

• Integrity
• Objectivity
• Confidentiality
• Expertise
• Independence