Annual report 2010

JSC IDGC Holding. Annual Report 20109.2.3. Committeesof the Board of DirectorsAudit CommitteeThe goal of the Audit Committee is to develop andsubmit recommendations concerning the issues ofensuring efficient participation of the Board ofDirectors in exercising control of the Company’sfinancial and economic activities.The principal objective of the Audit Committee isto render advisory assistance to the Board ofDirectors of the Company for developing the strategyon the following issues:— preparation of recommendations for theselection of the Company’s auditor: qualifications,the quality of rendered services andcompliance with the auditor’s independencerequirements;— monitoring of the preparation of theCompany’s accounting (financial) statementsby the Company’s executive bodies,the objectivity of the statements, the processof disclosure of reliable financial informationabout the Company, its size and degree oftransparency;— assessment of the efficiency of internal controlprocedures and the preparation of proposalsfor their improvement;— interaction with the Company’s executivebodies and other individuals.In the fiscal year, the Audit Committee functionedin two compositions. The Resolution of the Boardof Directors of JSC IDGC Holding, dated October16, 2009, approved the following composition ofthe Committee 5 :The Chairman of the Committee is Seppo JuhaRemes (Director General, OOO Kiuru).Members of the Committee:— Oleg Vyacheslavovich Surikov (member of theCommittee, Director of the CorporateDepartment, MMC Norilsk Nickel);— Denis Vladimirovich Fedorov (member of theCommittee, Director General, OOO Gas EnergyCompany).This composition of the Audit Committee functioneduntil the meeting of the Board of Directorsheld on August 18, 2010, re-elected upon theAnnual General Meeting of the Company, at whichthe Committee was elected from among the followingindependent members of the Board ofDirectors of the Company:The Chairman of the Committee is Seppo JuhaRemes (Director General, OOO Kiuru).Members of the Committee:— Sergei Renatovich Borisov (Chief ExecutiveOfficer, OPORA RUSSIA, Russian Non-Governmental Organization for Small andMedium Entrepreneurship);— Valery Alexeyevich Gulyayev (Deputy DirectorGeneral for Resource Supplies, member of theManagement Board, JSC OGK-6 and OGK-2)The fiscal period saw 8 meetings of the AuditCommittee, including 6 in-person meeting, whichconsidered more than 30 issues. Major issues areas follows:— Assessment by the Audit Committee of theAuditors’ Report on the accounting statementsof JSC IDGC Holding for the periodfrom January 1, 2009, up to and includingDecember 31, 2009.— Draft consolidated financial statements ofIDGC Holding prepared in accordance withIFRS for 2009.— Financial terms and conditions of the agreementwith ZAO KPMG for the provision ofservices as an independent auditor of thefinancial statements of IDGC Holding, preparedin accordance with IFRS for 2010.5Hereinafter job titles at the moment of election.54