SECURITIES PROSPECTUS

duly authorized executive bodies. Documents to which standard forms are not applicableshall be developed by the Company internally and approved by the Order of theCompany's chief executive.2.6. The principal rules of maintaining accounting records and documentingbusiness operations shall comply with the Regulations for Accounting and Reporting inthe Russian Federation adjusted for certain industry characteristics adopted and reflectedin this document and other directive documents of the Company.2.7. The annual financial statements of the Company shall be considered andapproved by the General Meeting of Shareholders and submitted within the time limitsand at the addresses specified in Article 15 of Federal Law No. 129-FZ "OnAccounting" dated November 21, 1996.2.8. The annual financial statements of the Company shall be published not laterthan June 1 of the year following the reporting year.2.9. The content of accounting and tax ledgers, internal financial accountingforms shall be secrecy in business. The individuals granted access to the informationcontained in these documents shall be obliged to preserve the confidentiality ofcommercial transactions. They shall be liable for the disclosure thereof as specified inthe internal orders of the Company and the laws of the Russian Federation.2.10. The right to sign source accounting documents shall be held by theManagement of the Company in accordance with the directive documents of theCompany (orders and powers of attorney), which shall be agreed with Chief Accountant,heading the Department for Business and Tax Accounting.2.11. Documents on business transactions involving cash flow (through bankaccounts or pay office of the entity) shall be signed by the Director General of theCompany and Chief Accountant, heading the Department for Business and TaxAccounting, as well as the individuals duly authorized by them under powers ofattorney.2.12. The accounting records for property, liabilities and business transactionsshall be maintained in rubles and kopecks.2.13. Initial financial statements of the Company shall be prepared based on theSeparation Balance Sheet of RAO UES of Russia as of March 31, 2007, approved at theExtraordinary General Meeting of RAO UES of Russia on October 26, 2007 (includingthe Rules for the Allocation of Property, Rights and Obligations During theReorganization of RAO UES of Russia Through a Spin-off and a Spin-off Accompaniedby Takeover).3. Procedure for Taking Inventory of Property and Liabilities3.1. An inventory of property and liabilities shall be taken in accordance withArticle 12 of amended Federal Law No. 129-FZ "On Accounting" dated November 21,1996, and the Guidelines for Taking Inventory of Property and Financial Liabilities223