Audit Organisation

To audit and confirm the Company’s annual financial statements for 2024, the General Meeting of Shareholders appointed the Company’s Audit Organisation.

Selection of an audit organisation

The Company’s Board of Directors suggests a candidate for an audit organisation to be appointed on the annual General Meeting of Shareholders in the course of preparation and holding of this Meeting.

The Company’s auditor was selected through an electronic tender held by an organisation authorised by the Company in accordance with the Company’s Unified Procurement Standard (Procurement Regulations).

To ensure the objectivity and independence of the external auditor of the Company, it is selected through electronic competitive tender procedure conducted in the Unified Information System of the Russian Federation in Procurements www.zakupki.gov.ru, using the electronic trading platform of PJSC Rosseti (https://rosseti.roseltorg.ru).

Information about the competition for the right to conclude a contract for audit services for 2024 was posted on the website www.zakupki.gov.ru. Based on the results of the tender, the winner was recognised as a collective participant consisting of LLC TSATR – Audit Services (leader of the collective participant) and LLC Intercom-Audit (member of the collective participant).

Tenderers were evaluated according to criteria previously established and declared in the tender terms.

The external auditor conducts the audit of statements in line with the requirements of the legislation of the Russian Federation based on a concluded agreement.

To carry out the mandatory audit of the financial statements in accordance with Russian Accounting Standards and the consolidated financial statements in accordance with International Financial Reporting Standards for the Group for 2024, on 16 May 2024 (Minutes No. 572/2024 dated 16 May 2024) the Board of Directors of the Company recommended LLC TSATR – Audit Services (leader of the collective participant) and LLC Intercom-Audit (member of the collective participant) as an audit organisation and appointed them by the decision of the Annual General Meeting of Shareholders of the Company on 19 June 2024 (Minutes No. 27 dated 19 June 2024).

The leader of the collective participant, LLC TSATR – Audit Services, is a member of the Self-Regulatory Organisation of Auditors Association Sodruzhestvo, has the necessary work experience, and has a sufficient number of qualified personnel. The second member of the collective participant is LLC Intercom-Audit, which is a member of the Self-Regulatory Organisation of Auditors Association Sodruzhestvo.

The Company’s Board of Directors sets fees for an audit organisation according to item 24.12 of Art. 24 of the Articles of Association of PJSC Rosseti South.

An agreement between the Company and an audit organisation stipulates service fees and terms of payment for the audit organisation. By resolution of the Company’s Board of Directors dated 14 May 2024 (Minutes No. 572/2024 dated 16 May 2024), the amount of remuneration for the Company’s services for auditing the accounting (financial) statements for 2024 prepared in accordance with RAS and for auditing consolidated financial statements for 2024 prepared in accordance with IFRS, was set at RUB 2,888,321.13 (Two million eight hundred and eighty-eight thousand three hundred and twenty-one roubles and 13 kopecks), including VAT (20%) RUB 481,386.85 (Four hundred and eighty-one thousand three hundred and eighty-six roubles and 85 kopecks). The cost of non-audit services, i.e., external independent assessment of the Company’s internal audit activities provided to the Company by LLC B1-Consult, in the reporting year amounted to RUB 1,009,764.82 (One million nine thousand seven hundred and sixty-four roubles and 82 kopecks), including VAT (20%) RUB 168,294.14 (One hundred and sixty-eight thousand two hundred and ninety-four roubles and 14 kopecks). LLC B1-Consult and LLC TSATR – Audit Services are part of B1 Group.

The Auditor is not affiliated with employees or management of the Company. The Company has no business relations (participation in promotion of products (services), participation in joint entrepreneurial activities, etc.), as well as family ties with officials of the leader of the collective participant of LLC TsATR – Audit Services.

Performance evaluation of an external audit

In accordance with the opinion of the Company’s internal audit on the assessment of the audit performance, auditors’ conclusions, and efficiency of the external audit of the accounting (financial) statements of PJSC Rosseti South for 2024:

• Procedures conducted by LLC TsATR – Audit Services in the course of the external audit of the RAS-compliant financial (accounting) statements of the Company for 2024 comply with the terms of the Agreement and the requirement of Federal Law on auditing No. 307-FZ dated 30 December 2008.
• Independent Auditor’s report on the Company’s accounting (financial) statements for 2024 was prepared in accordance with Federal Law No. 307-FZ dated 30 December 2008 ‘On Auditing’, International Standards on Auditing, and contains an opinion expressed in the prescribed form on the reliability of the audited entity’s (PJSC Rosseti South) financial statements.