Statement of Management’s responsibilities

The following statement, which should be read in conjunction with the independent auditor’s responsibilities stated in the independent auditor’s report set out on page 2 is made with a view of distinguishing the respective responsibilities of the management and those of the independent auditors in relation to the consolidated financial statements of OJSC “Company M.video” and subsidiaries (the “Group”).

Management is responsible for the preparation of the consolidated financial statements that present fairly the consolidated financial position of the Group as at 31 December 2011 and the consolidated results of its operations, cash flows and changes in equity for the year then ended, in compliance with International Financial Reporting Standards (“IFRS”).

In preparing the consolidated financial statements, management is responsible for:

  • Selecting suitable accounting principles and applying them consistently;
  • Making judgments and estimates that are reasonable and prudent;
  • Stating whether IFRS have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and
  • Preparing the consolidated financial statements on a going concern basis, unless it is inappropriate to presume that the Group will continue in business for the foreseeable future.

Management is also responsible for:

  • Designing, implementing and maintaining an effective and sound system of internal controls throughout the Group;
  • Maintaining proper accounting records that disclose, with reasonable accuracy at any time, the consolidated financial position of the Group, and which enable them to ensure that the consolidated financial statements of the Group comply with IFRS;
  • Maintaining statutory accounting records in compliance with local legislation and accounting standards of Russian Federation;
  • Taking such steps as are reasonably available to them to safeguard the assets of the Group; and
  • Detecting and preventing fraud and other irregularities.

The consolidated financial statements for the year ended 31 December 2011 were approved on 29 March 2012 on behalf of the Board of Directors by:

Signature

Signature

A. Tynkovan C. Parks
President Chief Financial Officer