Deloitte & Touche Conducts Operational Audit of NDC

26 June 2007
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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 CJSC has completed an independent operational audit of NDC systems and procedures. The objective of the audit was to provide NDC 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.

Nikolai Egorov, NDC, Director, said: “The expanded internal audit was recommended by Thomas Murray consultants. According to the contract the auditors evaluated basic risks and fields of risks’ control. On the one hand, the audit supplies further evidence of the efficiency of operational processes for NDC managing committees, our partners and clients. On the other hand, such audits allow the achievement of optimal, high-quality and technically advanced operational processes and also help to improve corporate governance in the field of transparency and control for internal audit. We have not received significant critical remarks from the auditor and consider audit’s results as positive.”

Vasily Nevyadomsky, Chief Manager, Deloitte & Touche CIS, said: “In the course of the project we evaluated whether control procedures related to the NDC information system and business processes correspond with the tasks of internal control. The results of the project, in the form of recommendations on the improvement of existing control procedures, have been passed to the client. Russian companies frequently engage independent auditors to conduct operational audits on compliance with internal corporate standards and also to audit compliance with the SAS70 standard. We are happy to see that NDC management understands the importance of optimization of internal control during operational processes.”

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 market of the Bank of Russia, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using a direct account at Clearstream Banking S.A.

Among NDC’s founders are Bank of Russia and MICEX CJSC. Members include Bank of Russia, MICEX CJSC, OJSC Bank of Moscow, Sberbank, International Moscow Bank, JP Morgan Bank International LLC, Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC, Rosbank, Gazprombank CJSC, ING Bank Eurasia CJSC and Deutsche Bank LLC. Recently Vneshekonombank was approved as a new member. The Partnership also has a stake in CJSC Depositary Clearing Company (36.96 %) and in CJSC Settlement Depository Company (29%).

About Deloitte & Touche CIS:

Deloitte & Touche CIS CJSC 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 3,000 employees in 13 branches in nine CIS countries.

Deloitte & Touche CIS is a part of the Deloitte Touche Tohmatsu global network. 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. With access to the deep intellectual capital of approximately 150,000 people worldwide, Deloitte delivers services in four professional areas — audit, tax, consulting, and financial advisory services — and serves more than 80 percent of the world's largest companies, as well as large national enterprises, public institutions, locally important clients and successful, fast-growing global growth companies.

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


For further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910,

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