Audit Commission

To control the Company's financial and economic activity the General Meeting of Shareholders elects the Audit Commission for the period till the next Annual General Meeting of Shareholders. Regulations on Audit Commission of the Company you can see here (interactive link).

Audit Commission terms of reference cover:

1. confirmation of authenticity of data contained in the Company's annual report, balance sheet, profit & loss account of the Company;
2. analysis of the Company's financial position, identification of reserves of improvement of the Company's financial position, and development of recommendations for management bodies of the Company;
3. organizing and implementation of expert check (audit) of the Company's financial and economic activity, in particular:
1. check (audit) of the Company's financial, accounting, payment and settlement and other documentation related to the Company's financial and economic activity, for its conformity with the laws of the Russian Federation, the Articles of Association, internal and other documents of the Company;
2. control over safety and use of fixed assets;
3. control over observance of the established order of writing-off debts of insolvent debtors to the Company's losses;
4. control over the use of Company's funds according to the Company's approved business-plan and budget
5. control over formation and the use of the Reserve Fund and other special funds of the Company;
6. check of correctness and promptness of calculation and payment of dividends upon shares of the Company, interests upon bonds, incomes upon other securities;
7. check of implementing the instructions on removal of infringements and drawbacks as revealed by the previous checks (audit);
4. taking other actions (measures) connected with auditing the Company's financial and economic activity.

All the decisions on the matters within the competence of the Audit Commission shall be approved by simple majority of votes of the total number of its members. Audit Commission may (and if serious violations in the Company's financial and economic activity have been revealed, must) request convocation of an Extraordinary General Meeting of Shareholders of the Company. Audit Commission, according to the decision on a check (audit), has the right to invite experts in corresponding spheres of law, economics, finance, accounting, management, economic safety and others, including specialized organizations, to conduct a check (audit). Check (audit) of the Company's financial and business activities may be carried out at any time on initiative of the Audit Commission of the Company, by decision of the General Meeting of Shareholders, the Board of Directors of the Company, or at request of a Shareholder (Shareholders) of the Company holding in total at least 10 per cents of the voting shares of the Company.

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