Yearly report 2011

Русская версия

Auditing commission

The Auditing Commission is a permanent organ of internal control in Kubanenergo, carrying out regular supervision of the financial and operation activities of the Company to ensure compliance with legislation in the Russian Federation, the Charter and internal Company documents.

The Auditing Commission acts in the interests of Company shareholders and is accountable to the general shareholders meeting in its work. When carrying out its functions it is independent of postholders, management bodies and managers of structural subdivisions of the executive apparatus of the Company.

In its work the Auditing Commission is governed by legislation in the Russian Federation, the Charter of Kubanenergo and the Statement on the Auditing Commission*.

  1. *

    The Statement on the Auditing Commission of Kubanenergo can be found at www.kubanenergo.ru — in About the company/Constituent and in house documents

Results of the work of the Auditing Commission

In 2011 the Auditing Commission of Kubanenergo carried out supervision by holding planned and unplanned checks on financial and operating activities.

In 2011 four meetings of the Auditing Commission were held, at which the following questions were considered*:

An act (conclusions) was drawn up regarding the results of each of the monitoring works containing recommendations on improving the control environment and eliminating infringements. The acts and instructions of the Auditing Commission were sent to the Society for Development of Work on Eliminating Infringements and Execution of Instructions and Recommendations.

  1. *

    Protocols of meetings of the Auditing Commission can be found at www.kubanenergo.ru — in About the company/Activities control system/Auditing Commission

Membership of the Auditing Commission

Current membership of the Auditing Commission elected at the annual general shareholders meeting of Kubanenergo held on 14 June 2011.

Membership of the Auditing Commission

elected at the annual general shareholders meeting of 30 June 2010, authority terminated 14 June 2011.

  1. Izumrud Aligadzhiyevna Alimuradova, Chair of the Auditing Commission, Head of the Department for Internal Auditing and Risk Management at MRSK Holding
  2. Vladimir Nikolayevich Arkhipov, Head of the Department for Safety at MRSK Holding
  3. Evgenii Sergeevich, Senior Specialist Expert of the Analysis and Activity Indicator Monitoring Section of the Administration of the Federal Property Management Agency
  4. Lyudmila Dmitriyevna Kormushkina, Head of Department for Internal Auditing, Revision Inspections and Appraisals of the Department for Internal Auditing and Risk Management at MRSK Holding
  5. Aleksandr Valentinovich Krotov, Deputy Head of the Audit Department at Rosneft

Information about positions held by members of the Auditing Commission: current membership of the Auditing Commission — at 21 December 2011; previous members of the Auditing Commission — at the time of election.

Remuneration of members of the Auditing Commission

In accordance with the Statement at Kubanenergo on remuneration and compensation payments to the Auditing Commission remuneration to members of the Auditing Commission at the current time are set at twenty times the amount of the minimum monthly tariff rate for a first class worker set by the sectoral tariff agreement in the electrical energy sector of the Russian Federation. In addition remuneration is made for expenses related to taking part in meetings of the the Auditing Commission and carrying out inspections, in accordance with the Company’s norms for reimbursing business trip expenses in force at the time of the meeting or inspection.

The total remuneration paid to members of the Auditing Commission for 2011 was 393 000 rubles. The Company owes no money with regard to remuneration of members of the Auditing Commission.