QUARTERLY REPORT Quarter 2 of 2012 - Холдинг МРСК

Value of accounts payable: 143,662 thousand rubles
Value of and terms applicable to overdue accounts payable (interest rate, fines, penalties): no overdue
accounts payable
Whether or not the creditor is an affiliate of the issuer: No
2.3.2. Credit History of the Issuer
Description of the fulfillment by the issuer of its obligations under any loan agreements and/or credit facility
agreements, including agreements involving the issue and sale of bonds, in force within the most recently
closed financial year and the current financial year if their principal amount accounted for 5 percent or more
of the book value of the issuer’s assets as of the final date of the most recently closed reporting period
(quarter, year) preceding the time of entering into the relevant agreements with respect to which the period
prescribed for submitting accounting (financial) statements expired, and under any other loan agreements
and/or credit facility agreements considered by the issuer to be material for itself.
The issuer did not assume any of the above-mentioned liabilities.
2.3.3. Liabilities of the Issuer with Regard to Collateral Furnished to Third Parties
Not applicable.
2.3.4. Other Liabilities of the Issuer
Other liabilities not recorded in the accounting (financial) statements which can materially affect the
issuer’s financial standing, liquidity, sources of funding and terms of its use, performance and expenses:
none
2.4. Risks Associated with the Acquisition of Issue-Grade Securities (Being) Placed
Risk management policy of the issuer:
The issuer’s performance is affected by a number of factors which the issuer is unable to control fully.
Although these are mostly macroeconomic factors impacting all enterprises, certain business aspects can be
especially “sensitive” to certain risk factors. The list provided below is incomplete since there are other factors
which are currently negligible, but later can have an adverse impact on the issuer’s activities, thus affecting
its profit, assets, capital, liquidity and solvency.
The Company’s risk management is in accordance with the Risk Management Policy approved by the
Board of Directors and specifying the fundamental principles of the organization, implementation and control
of the risk management processes used by JSC IDGC Holding (Minutes of the Meeting of the Board of
Directors of JSC IDGC Holding No. 30 of March 29, 2010).
2.4.1. Industry-Specific Risks
The Company carries out corporate management of its subsidiaries and dependent companies, i.e.
Interregional Distribution Grid Companies (hereinafter “IDGCs” or “SDCs”). As a result, the Company’s risks
derive from the risks (including industry-specific risks) incurred by the IDGCs it manages.
In recent years, the electric power industry has undergone a drastic change. The industry reform launched in
the 2000s brought about some uncertainties affecting the operation of the Russian distribution grid sector.
The principal risk factor is insufficiently elaborate operation mechanisms for the retail electricity market,
which entails risks associated with disagreement between electricity grid companies and retail companies over the
volume of consumed electricity and capacity used for tariff calculations and, consequently, with an increase in
disputed receivables for electricity distribution services. In order to minimize these risks, JSC IDGC Holding’s
SDCs take measures to eliminate the causes of potential conflicts with customers and reduce disputed receivables,
additionally forming judicial practice and setting positive precedents.
In May 2011, the Government of the Russian Federation adopted a resolution pertaining to last mile
agreements and specifying the right of JSC IDGC Holding’s SDCs to enter into lease agreements in relation to
electric grid facilities of JSC FGC UES (hereinafter, “FGC”). These agreements and the sections of the Unified
National Electric Grid (hereinafter, “UNEG”) that FGC may lease out are subject to the approval of federal and
regional authorities. With this resolution, the Ministry of Energy approved the list of separate sections of UNEG
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