The Information and Analytical System Globas provides services, the request for which has existed for more than 25 years: checking companies, analytical functionality and tools for the right decision concerning counterparties choice.

Globas offers solutions that will help to meet legal requirements, manage risks, and gain a competitive advantage due to prompt information and tools for quick and deep analysis.

GLOBAS FUNCTIONALITY MEETS NEW CHECKING REQUIREMENTS:

• AML / CFT and Compliance Reports;
• integration using Globas.API;
• automation of the process of selection and check of counterparties;
• monitoring;
• check against sanctions lists;
• analysis of affiliation and influence of beneficiaries;
• checking persons to identify conflicts of interest.

The high probability of restrictions, unpredictable bankruptcies, non-fulfillment of obligations by partners, as well as resolutions of regulatory bodies and legislative changes have formed in 2021 new requirements for the procedure for ensuring economic security, which will be relevant throughout 2022.

5 CURRENT TRENDS IN BUSINESS RISKS AND DUE DILLIGENCE

1. Implementation of a compliance system in response to legal requirements.

2. Demand for massive checks of counterparties caused by deferred demand after a strict lockdown.

3. Monitoring of factors that indirectly indicate an unstable financial position.

4. Search for new partners and customers due to the formation of new supply chains and reorientation to domestic suppliers.

5. Countering the growing cybercrimes and fraudulent activities of individuals and shell companies.

According to the Central Bank of the Russian Federation, during first 9 months of 2021, microfinance organizations issued microloans for a total of 440 billion RUB, which is 53% more than during first 9 months of 2020. This is a very high growth since the pandemic 2020, when the market of microcredit companies was virtually shrinking with a growing unprofitability. The restriction of microloan marginal rates planned in 2022 may lead to a reduction in the number of players in the market, which at the end of 2021 had just over 1,000 companies.

For this ranking the Information agency Credinform using the Globas System selected the largest microcredit companies (TOP 100 and TOP 10) in terms of annual revenue for the last reporting periods available in the state statistics bodies and the Federal Tax Service (2018 - 2020). They were ranked by net profit ratio (Table 1).

Net profit ratio (%) is calculated as the ratio of net profit (loss) to sales revenue and shows the level of profit from sales.

There is no standard value for this indicator. It is recommended to compare companies in the same industry, or to analyze changes in the coefficient over time for a specific company. Negative value of the indicator shows the presence of net loss, high value indicates effectiveness of the company's work.

It is necessary to pay attention to the entire set of indicators and financial ratios to get the most complete and fair presentation of enterprise's financial condition.

Table 1. Net profit, revenue, net profit ratio, Globas Solvency Index of microfinance organizations (TOP 10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Net profit ratio, %		Globas Solvency Index
	2019	2020	2019	2020	2019	2020
1	2	3	4	5	6	7	8
MICROCREDIT COMPANY NALICHNYE ZAJMY LLC INN 1903023650 Republic of Khakassia	25,8	34,5	1,5	1,7	5,65	5,07	271 Medium
MICROCREDIT COMPANY EXPRESS FINANCE LLC INN 2801155708 Primorsk territory	32,9	29,9	1,9	1,5	5,63	4,93	292 Medium
MICROCREDIT COMPANY AGAR LLC INN 5957017522 Perm territory	41,7	36,2	0,9	1,4	2,15	5,07	246 Strong
MICROCREDIT COMPANY TOYAN LLC INN 7017444751 Tomsk region	14,1	34,3	-2,5	0,6	-17,90	1,85	316 Adequate
MICROCREDIT COMPANY DAYTONA GROUP LLC INN 3123399990 Belgorod region	21,8	20,7	1,1	0,3	4,94	1,36	363 Adequate
MICROCREDIT COMPANY CYBERIAN GOLD LLC INN 5405992480 Novosibirsk region	25,2	20,2	0,8	0,3	3,18	1,26	282 Medium
POKOLENIE LLC INN 9710060106 Moscow	0,0	40,1	0,1	-0,1	1 233,33	-0,18	382 Weak
MICROCREDIT COMPANY FASTMONEY.RU LLC INN 7805714988 Saint Petersburg	258,1	116,2	-9,7	-3,6	-3,75	-3,11	365 Adequate
MICROCREDIT COMPANY SIMPLEFINANCE LLC INN 7703381419 Moscow	829,2	647,7	3,0	-136,6	0,36	-21,09	324 Adequate
MICROCREDIT COMPANY DELOVOE RESHENIE LLC INN 9701118335 Moscow	8,0	19,1	0,3	-8,3	3,82	-43,45	384 Weak
TOP 10 average value	125,7	99,9	-0,3	-14,3	123,74	-4,94
TOP 100 average value	15,7	12,4	0,1	-1,6	-16,64	-47,82
Industry average value	10,0	11,3	3,7	-4,4	37,40	-38,79

indicator improvement for the previous period, indicator deterioration for the previous period

In 2020, average values of the net profit ratio of the TOP 10 companies exceed values of the TOP 100 companies and average industry values. Only three companies of TOP 10 improved their performance in 2020, while there were five such companies in 2019.

4 out of 10 companies increased revenue and/or net profit in 2020. At the same time, the average revenue of TOP 10 and TOP 100 decreased by 21%, and the industry average increased by 13%. The average loss of TOP 10 increased almost 48 times, for TOP 1000 it increased 17 times. On average, the industry's loss grew more than twice.

During the past 5 years, average industry values of the net profit ratio have deteriorated over three periods. The best value was achieved in 2017, and the worst result was shown in 2020. (Picture 1).

Picture 1. Change in average industry values of the net profit ratio in the market of loans provision in 2016-2020.