Internal Control

Acron Group adopted an internal control system to efficiently regulate its financial and economic activities. The system demarcates the powers of the bodies that develop, approve and apply internal control procedures and assess their effectiveness.

As part of the internal control system, the Board of Directors via its Strategic Planning and Corporate Governance Committee shares assessment of financial and economic risks and makes recommendations to manage such risks. With participation of the Audit Committee, the Board approves internal control procedures and reviews proposals to improve them; it also assesses the effectiveness of the internal control.

Chief Executive Officer ensures implementation of and compliance with procedures for financial and business transactions, approves the annual inspection schedule and organises unscheduled inspections. As part of the internal control system, the Internal Audit Team audits the company’s performance in the reporting year and conducts inspections at any time both on its own initiative and by resolution of the general meeting or Board of Directors or by request of any shareholder holding a total of no less than 10% of the company’s voting shares. The Internal Audit Team also takes part in assessing the effectiveness of the internal control system.

The Internal Audit Department is a key element of the internal control system. Within the scope of its powers and in cooperation with the Board of Directors, it improves risk management mechanisms, control and corporate management to make the internal control system robust and effective and to ensure the completeness and credibility of financial data and management information, the effectiveness of risk management procedures, and adherence to Russian law.