External Audit

To ensure an independent and unbiased audit of the Company’s financial statements, the Company has approved the Policy on Interaction with External Auditor of PJSC TransContainersThe Policy is available on the Company’s website (hereinafter — the Policy on Interaction with Auditor).

Candidates to the position of the external auditor for TransContainer’s RAS and IFRS financial statements are approved by the general meeting of shareholders from among the Big Four audit firms based on the recommendation of the Board of Directors and the results of tenders held by the Audit Committee at least once every five years. The Company also deems it reasonable to select a single auditor for TransContainer’s RAS and IFRS financial statements.

In March 2018, the Audit Committee suggested that the Board of Directors submit a recommendation to the general meeting of shareholders encouraging it to approve PricewaterhouseCoopers Audit as TransContainer’s external auditor responsible for the audit of the Company’s RAS and IFRS financial statements for 2018.

In May 2018, TransContainer’s annual general meeting of shareholders, based on the recommendation of the Board of Directors, approved PricewaterhouseCoopers Audit as TransContainer’s external auditor responsible for the audit of RAS and IFRS financial statements for 2018.

In accordance with the audit contract, the auditor provided services as follows:

  • overview of the Company’s interim condensed consolidated IFRS 34 financial statements as at 30 June 2018 and for 6M 2018;
  • overview of the Company’s special financial statements as at 30 June 2018 and for 6M 2018 made in accordance with the instructions and the accounting policy of Russian Railways;
  • overview of the Company’s special financial statements as at 30 June 2018 and for 6M 2018 made in accordance with the accounting policy of PJSC TransContainer;
  • audit of the Company’s and its subsidiaries’ consolidated IFRS financial statements for the reporting year ended 31 December 2018;
  • audit of the Company’s special financial statements for the reporting year ended 31 December 2018 made in accordance with the instructions and the accounting policy of Russian Railways;
  • audit of the Company’s special financial statements for the reporting year ended 31 December 2018 made in accordance with the accounting policy of PJSC TransContainer;
  • audit of the Company’s RAS accounting statements for 2018.

Cost of Auditor Services

The amount payable as a consideration for the auditor services was determined by the Board of Directors in May 2018 and totalled sixteen million and two hundred thousand roubles (RUB 16.2 mln), excluding VAT and overhead costs.

Remuneration Paid to the Company’s Auditor (PricewaterhouseCoopers Audit) in 2018, RUB
Type of audit services Remuneration amount (including VAT)
Audit of consolidated financial statements for 2017 under IFRS (part of remuneration still outstanding) 4,627,960
Audit of RAS accounting statements for 2017 (part of remuneration still outstanding) 3,820,840
Overview of interim financial statements for 6M 2018 under IFRS 1,416,000
Advance payments for the audit of consolidated financial statements for 2018 under IFRS 5,900,000
Advance payments for the audit of RAS accounting statements for 2018 5,310,000
Total 21,074,800
Type of non-audit services Remuneration (including VAT) (RUB)
Non-audit services 0
Total 0

Oversight of Non-audit Services Provided by the Auditor

To ensure the independence of the external auditor, the Company strives to avoid engaging auditors for the provision of non-audit services. In exceptional cases, though, where engagement of an external auditor for the provision of non-audit services is justified, such engagement shall be preliminarily reviewed by the Audit Committee, as prescribed by the Policy on Interaction with Auditor. The Audit Committee preliminarily reviews the feasibility of engaging the audit organisation, the type, and scope of non-audit services, and the auditor’s remuneration for the provision of any such services.

The Auditor provides non-audit services only upon the preliminary approval of the Audit Committee, except for services on staff training, workshops, corporate qualification training programs, accounting and recording, and on other training types for Company’s employees and members of the Board of Directors, and consulting in accounting and reporting. These non-audit services are considered to be preapproved by the Audit Committee providing that the amount for a non-audit service does not exceed RUB 5 mln per each service. If the non-audit service cost exceeds RUB 5 mln, a preapproval of the Audit Committee is required.

In 2018, the Company had no agreements for non-audit services with PricewaterhouseCoopers Audit.