“Interregional Distribution Grid Company of the South”, Open Joint Stock Company TIN 616426656111 QUARTERLY REPORT “Interregional Distributive Grid Company of the South”, Joint Stock Company Issuer’s code: 3 4 9 5 6 - Е For quarter II , 2009 Location: 49 Bolshaya Sadovaya Str., Rostov-on-Don, Russian Federation 344002 Information contained in this quarterly report is subject to disclosure in accordance with the legislation of the Russian Federation on securities Acting General Director _____________ V.V. Brizhan Of IDGC of South, JSC signature Date: 13 August 2009 Deputy chief accountant ___________ А.Ye. Karazhova (accounting and reporting) signature of IDGC of South LS. Date: 13 August 2009 Contact person: Principal specialist of Corporate Management and Reforming section Kuznetsova Larisa Nikolaevna Telephone: (861) 279 85 54 Fax: (861) 279 85 54 E-mail: [email protected] Internet website used by the Issuer for the information disclosure: www.mrsk-yuga.ru 1 “Interregional Distribution Grid Company of the South”, Joint Stock Company TIN 616426656111 TABLE OF CONTENTS Introduction I Brief data on the persons forming management authorities of the Issuer, data on bank accounts, auditor, appraiser and financial adviser of the Issuer, as well as on other individuals who signed the quarterly report________________________9 1.1 MEMBERS OF ISSUER’S MANAGEMENT AUTHORITIES ________________________ 9 1.2 DATA ON BANK ACCOUNTS OF THE ISSUER ________________________________ 11 1.3 DATA ON THE AUDITOR (AUDITORS) OF THE ISSUER ________________________ 13 1.4 DATA ON THE APPRAISER OF THE ISSUER _________________________________ 16 1.5 DATA ON THE ADVISERS OF THE ISSUER __________________________________ 17 1.6 DATA ON OTHER INDIVIDUALS WHO SIGNED THE QUARTERLY REPORT________ 17 II Main information on financial and economic condition of the Issuer ________18 2.1 FINANCIAL AND ECONOMIC PERFORMANCE INDICATORS OF THE ISSUER______ 18 2.2 MARKET CAPITALIZATION OF THE ISSUER _________________________________ 21 2.3 ISSUER’S OBLIGATIONS _________________________________________________ 22 2.3.1 Accounts payable________________________________________________________________22 2.3.2 Credit history of the Issuer ________________________________________________________23 2.3.3 Obligations of the Issuer with regard to collaterals furnished to third parties __________________23 2.3.4 Other obligations of the Issuer _____________________________________________________23 2.4 PURPOSES OF ISSUE AND LINES FOR APPLICATION OF FINANCES OBTAINED AS A RESULT OF PLACING ISSUE SECURITIES______________________________________ 23 2.5 RISKS CONNECTED WITH PURCHASE OF ISSUE SECURITIES BEING PLACED (ALREADY PLACED) ________________________________________________________ 23 2.5.1 Industry risks ___________________________________________________________________24 2.5.2 Country and regional risks _________________________________________________________26 2.5.3 Financial risks __________________________________________________________________27 2.5.4 Legal risks____________________________________________________________________ 28 2.5.5 Risks connected with the Issuer’s activity _____________________________________________29 2 “Interregional Distribution Grid Company of the South”, Joint Stock Company TIN 616426656111 III Detailed information on the Issuer ____________________________________32 3.1 ISSUER’S INCORPORATION AND DEVELOPMENT BACKGROUND ________________ 3.1.1 Data on the company name (name) of the Issuer_________________________________________ 3.1.2 Data on state registration of the Issuer _________________________________________________ 3.1.3 Data on incorporation and development of the Issuer _____________________________________ 3.1.4 Contact information ______________________________________________________________37 3.1.5 Taxpayer Identification Number ____________________________________________________38 3.1.6 Branches and regional offices of the Issuer ___________________________________________38 3.2 ORDINARY ECONOMIC ACTIVITIES OF THE ISSUER __________________________ 38 3.2.1 Company’s industry of the Issuer ___________________________________________________38 3.2.2 Ordinary economic activities of the Issuer _____________________________________________39 3.2.3 Materials, goods (raw materials) and suppliers of the Issuer _______________________________47 3.2.4 Commodity markets of products (works, services) of the Issuer ___________________________47 3.2.5 Data on Issuer’s licenses _________________________________________________________48 3.2.6 Joint activity of the Issuer _________________________________________________________50 3.3 PLANS FOR FUTURE ACTIVITY OF THE ISSUER _____________________________ 51 3.4 PARTICIPATION OF THE ISSUER IN INDUSTRIAL, BANK AND FINANCIAL GROUPS, HOLDINGS AND ASSOCIATIONS___________________ Ошибка ! Закладка не определена . 3.5 ISSUER’S SUBSIDIARIES AND AFFILIATED COMPANIES ________________________ 3.6 COMPOSITION, STRUCTURE AND COST OF THE FIXED ASSETS OF THE ISSUER, INFORMATION ON PLANS FOR THE FIXED ASSETS PURCHASE, REPLACEMENT, RETIREMENT, AS WELL AS ON ALL FACTS OF THE ISSUER’S FIXED ASSETS CHARGING ________________________________________________________________ 74 3.6.1 Fixed assets ___________________________________________________________________74 IV Data on financial and economic activities of the Issuer__________________103 4.1 RESULTS OF FINANCIAL AND ECONOMIC ACTIVITY OF THE ISSUER __________ 103 4.1.1 Profit and loss _________________________________________________________________103 4.1.2 Factors that influenced the change of the Issuer’s sales revenue from goods, products, works, services and the change of Issuer’s profit (loss) on ordinary activities __________________________104 3 “Interregional Distribution Grid Company of the South”, Joint Stock Company TIN 616426656111 4.2 ISSUER’S LIQUIDITY, CAPITAL AND CURRENT ASSETS ADEQUACY ___________ 105 4.3 ISSUER’S CAPITAL AND CURRENT ASSETS AMOUNT AND ADEQUACY ________ 106 4.3.1 Issuer’s capital and current assets amount and adequacy_______________________________106 4.3.2 Financial investments of the Issuer_________________________________________________108 4.3.3 Intangible assets of the Issuer_____________________________________________________110 4.4 DATA ON THE POLICY AND EXPENSES OF THE ISSUER IN THE FIELD OF SCIENTIFIC AND TECHNICAL DEVELOPMENT, CONCERNING LICENSES AND PATENTS, NEW DEVELOPMENT AND RESEARCH _______________________________________ 110 4.5 ANALYSIS OF DEVELOPMENT TRENDS IN THE SPHERE OF ISSUER’S ORDINARY ACTIVITY ________________________________________________________________ 110 4.5.1 Analysis of factors and conditions influencing the Issuer’s activity_________________________111 4.5.2 Business competitors of the Issuer _________________________________________________113 V Detailed data on the members of management authorities of the Issuer, bodies of the Issuer undertaking control over its financial and economic activities, and brief data on the staff (employees) of the Issuer _____________________________86 5.1 DATA ON THE STRUCTURE AND COMPETENCE OF THE ISSUER’S MANAGEMENT AUTHORITIES ____________________________________________________________ 115 5.2 INFORMATION ON THE MEMBERS OF THE ISSUER’S MANAGEMENT AUTHORITIES _________________________________________________________________________ 126 5.3 DATA ON THE AMOUNT OF REMUNERATION, PRIVILEGES AND/ OR COMPENSATION FOR EXPENSES OF EACH MANAGEMENT AUTHORITY OF THE ISSUER __________________________________________________________________ 142 5.4 DATA ON THE STRUCTURE AND COMPETENCE OF THE BODIES UNDERTAKING CONTROL OVER THE ISSUER’S FINANCIAL AND ECONOMIC ACTIVITIES __________ 144 5.5 INFORMATION ON MEMBERS OF BODIES UNDERTAKING CONTROL OVER ISSUER’S FINANCIAL AND ECONOMIC ACTIVITIES _____________________________ 149 5.6 DATA ON AMOUNT OF REMUNERATION, PRIVILEGES AND/ OR COMPENSATION FOR EXPENSES OF EACH BODY UNDERTAKING CONTROL OVER THE ISSUER’S FINANCIAL AND ECONOMIC ACTIVITIES ____________ Ошибка ! Закладка не определена . 5.7 DATA ON THE HEADCOUNT AND GENERALIZED DATA ON EDUCATION AND STRUCTURE OF THE ISSUER’S STAFF (EMPLOYEES), AND ALSO ON THE HEADCOUNT CHANGE OF THE ISSUER___________________________________________________ 155 5.8 DATA ON ANY OBLIGATIONS OF THE ISSUER TO THE STAFF (EMPLOYEES) CONCERNING THE POSSIBILITY OF THEIR PARTICIPATION IN THE AUTHORIZED (SHARE) CAPITAL (SHARE FUND) OF THE ISSUER _____________________________ 155 4 “Interregional Distribution Grid Company of the South”, Joint Stock Company TIN 616426656111 VI Data on participants (shareholders) of the Issuer and the interested parties transactions closed by the Issuer______________________________________157 6.1 DATA ON THE TOTAL AMOUNT OF SHAREHOLDERS (PARTICIPANTS) OF THE ISSUER __________________________________________________________________ 157 6.2 DATA ON PARTICIPANTS (SHAREHOLDERS) OF THE ISSUER OWNING AT LEAST 5 PERCENT OF AUTHORIZED (SHARE) CAPITAL (SHARE FUND) OR AT LEAST 5 PERCENT OF ORDINARY SHARES, AS WELL AS DATA ON THE PARTICIPANTS (SHAREHOLDERS) OF SUCH BODIES HOLDING AT LEAST 20 PERCENT OF AUTHORIZED (SHARE) CAPITAL (SHARE FUND) OR AT LEAT 20 PERCENT OF ORDINARY SHARES _______________________________________________________ 157 6.3 DATA ON THE STATE OR MUNICIPAL UNIT PARTICIPATION IN THE AUTHORIZED (SHARE) CAPITAL (SHARE FUND) OF THE ISSUER, SPECIAL RIGHT (“GOLDEN SHARE”) _________________________________________________________________________ 160 6.4 DATA