The rules determine the approval procedure for the list (hereinafter referred to as the List) of grain receiving enterprises (hereinafter referred to as the GRE) for storing grain held by the Corporation, the procedure for selecting storage facilities for storing agricultural products (hereinafter referred to as agricultural products), the procedure for concluding agreements for the storage of agricultural products, accounting and control over quantitatively - by the qualitative state of agricultural products of the Corporation.

The rules are developed in accordance with the Law of the Republic of Kazakhstan «On Grain», an order of the acting Of the Minister of Agriculture of the Republic of Kazakhstan dated May 29, 2015 No. 4-1 / 487 «On approval of the standard form of a public contract for the storage of grain between the grain receiving enterprise and the owner of the grain» (hereinafter referred to as the «Public Contract Standard Form»), the Rules for the quantitative and qualitative accounting of grain, approved by the order of the Minister of Agriculture of the Republic of Kazakhstan dated June 19, 2015 No. 4-1 / 546, the Rules for grain storage, approved by order of the Minister of Agriculture of the Republic of Kazakhstan dated June 26, 2015 No. 4-1 / 573, internal documents of the Corporation.

The contract with the GRE is concluded in the form established by the legislation of the Republic of Kazakhstan (standard form of public contract).

The NK Food Corporation JSC has contractual relations with more than 70 grain receiving enterprises, including 4 grain receiving enterprises of its subsidiary «Astyk Koymalary» LLP, with a total grain storage capacity of over 490 thousand tons. A grain receiving enterprise is a legal entity having on the basis of ownership, a granary (elevator, grain collection point) at which grain is stored;

Grain storage - a technological complex of services carried out at the granary (elevator, grain collection point), including the acceptance, weighing, drying, cleaning, storage and shipment of grain;

Services in warehousing activities with the issuance of grain receipts are provided by grain receiving enterprises on the basis of a license issued by the local executive body of the region in accordance with the qualification requirements for activities related to the provision of services for warehousing with the issuance of grain receipts.

Procedure for approval of the List of GRE for storage of grain of the Corporation

Approval of the GRE List is within the competence of the Committee for Agricultural Product Management (hereinafter - the Committee)

The Corporation carries out grain storage with the issue of grain receipts at the GRE, which have a license to carry out activities related to the provision of warehouse services with the issue of grain receipts.

When deciding on the approval of the GRE List for storing the Corporation’s grain and the inclusion of GRE on the List, the Committee shall take into account:

1. GRE has a license to carry out storage services with the issue of grain receipts;
2. registration of GRE in the State electronic register of holders of grain receipts;
3. the presence of a railway access road adjacent to the GRE for the passage of rolling stock and unhindered supply - cleaning of rolling stock (wagons, platforms) to the GRE territory;
4. the presence of a production and technological laboratory (hereinafter - PTL) with a certificate of assessment of the state of measurements in the laboratory;
5. lack of contentious legal relations with the Corporation;
6. the absence of facts of introduction (consideration of the issue of introduction) in relation to theGRE’s temporary control (as of the date of approval of the List);
7. the absence of bankruptcy with respect to GRE / rehabilitation procedures (as of the date the List was approved);
8. the absence of enforcement proceedings in respect of GRE by third parties.