The Annual General meeting of shareholders of IDGC of the South JSC (part of Rosseti group) was conducted in Rostov-on-Don on 19 June. Shareholders have approved the annual report, accounting report and made decisions on dividends, approved Company's auditor, restated Company's Charter and redrafted internal documents. During the AGM the shareholders elected new of Board of Directors and Auditing Committee.

Sergei Arkhipov, chairperson of the BoD of IDGC of the South JSC stated that despite all the difficulties of the last year, the Company managed to fulfill its main functions and provided reliable power supply of customers, increased of service availability and business transparency. In 2014 the Company put into operation 410 km of power lines, 111 MVA of transformer capacity. The volume of implementation of capital investment amounted 1.2 billion rubles, fixed assets were commissioned for the total amount of 1.7 billion rubles.

Aleksei Rybin, deputy Director General of IDGC of the South JSC reported on results of financial and economic activity of the Company in 2014. He noted that main reason of Company's unprofitability (-6.9 billion rubles) are non-payments from guaranteeing suppliers and lager electricity consumers. Along with it, IDGC of the South receives profit from sales in the amounts sufficient for the priority production programmes. Non-payments of substantial contractor always lead to overdue receivables for services on electric energy transmission. As a result the Company has to generate provision for doubtful debts and attract funds to cover cash deficiency. Debt of the guaranteeing suppliers to the Company for the last year has increased for 5.1% and as of 31 December 2014 it amounted more than 7.2 billion rubles.

In accordance with the agenda of the meeting, the shareholders of IDGC of the South JSC approved annual report and accounting report, decided not to pay out the dividends and elected the following persons to the Company's Board of DIrectors:

1. Shevchyuk Aleksandr Viktorovich, executive director of Association of dedicated investors.

2. Branis Aleksandr Markovich, Director of Prosperity Capital Management Ltd (RF).

3. Filkin Roman Alekseevich, Co-director, power industry, engineering of representative office of Prosperity Capital Management Ltd (RF).

4. Dudchenko Vladimir Vladimirovich, Financial director of SoftBiKom, LLC.

5. Arkhipov Sergey Alexandrovich, Chief adviser, Rosseti JSC.

6. Ebzeyev Boris Borisovich, Director General of IDGC of the South JSC.

7. Fadeev Aleksandr Nikolaevich, deputy Director General in charge of security, Rosseti JSC.

8. Shmakov Igor Vladimirovich, head of Directorate of control and risks of Department of internal audit and control, Rosseti JSC.

9. Kharin Andrei Nikolaevich, deputy Director of Department of corporate management, pricing environment and auditing works in spheres of Fuel & Energy Complex of RF Ministry of Energy.

10. Panksianov Yuri Nikolaevich, director of Department of tariff policy, Rosseti JSC.

11. Piotrovich Nikolai Borisovich, deputy head of Directorate of organizing the activity of management bodies, Rosseti JSC.

The following persons were elected to the Auditing Commission:

1. Guseva Yelena Yurievna, leading expert of office of investment audit of Directorate of audit activities and internal control of Department of internal audit and control, Rosseti JSC.

2. Kirillov Artyom Nikolaevich, head of office of investment audit of Directorate of audit activities and internal control of Department of internal audit and control, Rosseti JSC.

3. Lukovkina Irina Pavlovna, head of office of methodology of Directorate of control and risks of Department of internal audit and control, Rosseti JSC.

4. Medvedeva Oksana Alekseevna, head of office of common audit and inspections of Directorate for audit activities and internal audit of Department of internal audit and control, Rosseti JSC.

5. Kim Svetlana Anatolievna, head of Directorate of audit activities and internal audit of Department of internal control and audit, Rosseti JSC.

By the results of voting "RSM RUS" LLC was appointed auditor of IDGC of the South JSC.

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