Deloitte & Touche Completes Operational Audit of NDC

29 April 2008
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MOSCOW - The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, announced today that Deloitte & Touche CIS CJSC has completed an independent operational audit of NDC systems and procedures.

The objective of the study, the second such audit conducted at NDC, was to provide management with recommendations for further reductions in operational risk. The study examined the current performance of operational control procedures selected by NDC and set out recommendations for the enhancement of procedural efficiency. Implementation of the recommendations made on the basis of the previous audit, conducted a year ago, considerably raised the efficiency of NDC procedures in operating risk management and confirmed the practicality of a regular audit of the company’s control procedures by an independent auditor.

Commenting on the results, Nikolai Egorov, Director, NDC, said: “In 2008 NDC continues to implement the recommendations of Thomas Murray, the rating agency. An independent audit of NDC’s operations by a well-known auditing company allows us to confirm the efficiency of operating processes for NDC’s management bodies, partners and customers. The audit contributes to the further optimization and qualitative improvement in the technological level of operational processes, to successive monitoring of the efficiency of measures taken in order to improve the operating risk management system, and also to improvements in the corporate governance system with regard to transparency and surveillance for the internal control process based on best international practice. We have evaluated the results of the audit positively and consider the implementation of independent operating audit on a regular basis useful.”

Joanna Declercq, Partner, Deloitte & Touche CIS CJSC, added: “This is the second year when Deloitte holds operating audit of NDC. In the course of the program we evaluated whether existing control procedures of information systems and business processes supply well-grounded guarantees of implementation of internal control tasks. Recommendations on improving existing control procedures have been developed on the basis of the audit’s results. We are happy to see that NDC’s management pays serious attention to the internal control function and strives to improve business processes and to raise the reliability of its internal control system.”

About NDC:

Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 95% of transactions conducted in the corporate and regional bond markets, and stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. For 2007 the value of assets in storage was more than RUR4.3 trillion. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numbering agency, the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan.

Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property of NDC are 46.7% and 39.3% respectively, and in the votes 50.2% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit, Deutsche Bank, and Sberbank. The Partnership also has a stake in Depository Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).

For further information about NDC: www.ndc.ru, or NDC Public Affairs Department: +7 495 232 0910, .

About Deloitte & Touche CIS:

Deloitte & Touche CIS CJSC  is a part of the Deloitte Touche Tohmatsu global network. Deloitte CIS is one of the leading audit and consulting firms providing services in the field of audit, taxation, consulting and corporate finance. The company employs the professional experience of more than 3,500 employees in Moscow, St. Petersburg, Yuzhno-Sakhalinsk, Kiev, Minsk, Baku, Tbilisi, Almaty, Astana, Atyrau, Bishkek, Tashkent and Dushanbe.

Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 140 countries. Deloitte's 150,000 professionals are committed to becoming the standard of excellence.

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu," or other related names. Detailed description of Deloitte Touche Tohmatsu’s and its affiliates’ legal structure is available at www.deloitte.com/about.

More information about Deloitte & Touche CIS is available at www.deloitte.ru.

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