According to the Federal Law No. 281-FZ of July 29, 2017 “On the amendments to individual legislative acts of the Russian Federation improving obligatory requirements for the founders (participants), management bodies and officials of financial institutions ”, prosecution for premeditated or fraudulent bankruptcy of credit institution is a reason for future rejection of the Central Bank of the RF (the Central Bank) to review such persons being appointed to executive positions in banks, as well as rejection of taking a significant stake in the capital.
The law amended the Federal laws “On banks and banking activities ”, “On the Central Bank of the Russian Federation (Bank of Russia)”, “On non-state pension funds”, “On investment funds ”, “On microfinance activity and microfinance organizations”, “On organization of insurance activity in the Russian Federation” and other laws concerning financial activity.
The amendments established the following provisions:
- - with its legislative instruments the Central Bank has the right to specify requirements to financial situation of legal entities of credit institutions. This is also applied to legal entities (shareholders) holding over 10% of shares (stakes) or controlling such shareholders, as well as to legal entities (shareholders) holding less than 10% of shares (stakes) and being included in the group of entities holding over 10% of shares (stakes) or controlling such shareholders (participants);
- - top executives of insurance organizations (appointed or elected in agreement with the insurance supervisors) were specified as being complied with qualifying and goodwill requirements. Criteria of non-compliance with goodwill requirements were specified as well;
- - requirements to financial situation and goodwill of founders or participants of management companies (applied or elected by the Central Bank) were set;
- - the procedure of administration of complaints by the Central Bank concerning decisions on recognition of persons not meeting qualifying and goodwill requirements was specified;
- - taking into account the norms of the Federal Law “On insolvency (bankruptcy)”, the positions for assessing goodwill of chief officers, members of the boards of directors or supervisory boards, purchasers and owners of more than 10% of shares (stakes), controllers, individual executive bodies of credit institutions and microfinance companies were adjusted;
- - appointing or electing chief executive officers and deputy chief executive officers, members of the collegial executive body, chief accountants and their deputies of microfinance companies (including branches), is carried out only upon preliminary agreement with the Central Bank. At the same time, appropriate requirements are established for the founders or participants of the microfinance company and for making transactions with their shares (stakes).
The Federal Law will come into force from January 28, 2018.
Assessing the adopted amendments, experts note that sanctions for violation of goodwill requirements apply almost to the entire financial market - insurance companies, non-state pension funds, management companies of investment funds, mutual funds and microfinance companies. For chief officers and owners who led a credit institution to criminal bankruptcy or repeatedly violated the requirements, a lifetime disqualification in business and ban on holding more than 10% of the shares of any bank were introduced. For other violators the period of professional disqualification has been doubled, i.е. up to 10 years.
Before the signing of this Federal Law, the Central Bank began posting data on its website on bringing the officials of credit institutions which were declared insolvent (bankrupt) to civil and criminal liability for the period from 2005. Previously, such information was not published. As of June 19, 2017, this list contains information on 287 banking and non-banking credit organizations and about 213 individuals.
Subscribers of the Information and Analytical system Globas have possibility to get acquainted with activity of all banking and non-banking credit institutions and their branches with active licenses. The System also contains information about all credit institutions and their branches with revoked licenses.
Information agency Credinform has performed a ranking of the largest Russian creative enterprises in the sphere of art and entertainment. Enterprises with the largest annual revenue (TOP-10) for the latest accounting periods available in the State statistical authorities (2015 and 2014) have been selected for the ranking. Then they have been ranked by net profit ratio (Table 1). The analysis was based on data of the Information and Analytical system Globas.
Net profit ratio is calculated as a relation of net profit (loss) to sales revenue, and indicates sales profit rate. There is no standard value for this ratio. It is recommended to compare enterprises within one sector, or change of the ratio in the course of time of a certain company. A negative value of the ratio signals about net loss. A high value shows an efficient operation of the enterprise.
A calculation of practical values of financial ratios, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas by the experts of Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries. The practical value of net profit ratio for creative enterprises in the sphere of art and entertainment in 2015 amounted to 2,42%.
The whole set of financial indicators and ratios of a company is to be considered to get the fullest and fairest opinion about the company’s financial standing.
|Name, INN, region||Net profit, mln RUB||Revenue, mln RUB||NPr,
|Solvency index Globas®|
|MOSCOW DIRECTORATE OF THEATRE, CONCERT, SPORTS AND SHOW BOX OFFICES LLC
INN 7710944197 Moscow
|198,1||326,3||264,2||868,1||1 039,2||1 026,5||31,40||212 High|
|RUSSIAN SHOW CENTER LLC
INN 7710666750 Moscow
|37,7||41,0||17,8||1 088,4||1 014,7||440,3||4,05||239 High|
|MOSCOW NIKULIN CIRCUS AT TSVETNOY BOULEVARD NJSC
INN 7707284367 Moscow
|31,4||33,4||70,7||648,3||833,9||925,6||4,00||143 The highest|
INN 7839503590 Saint Petersburg
|32,4||24,4||163,1||639,3||3,82||172 The highest|
|AGENCY FOR CARRYING OUT CEREMONIES LLC
INN 7725269594 Moscow
|FGUP GREAT MOSCOW STATE CIRCUS AT VERNADSKOGO AVENUE
INN 7736039722 Moscow
|123,9||6,6||88,9||996,0||918,3||1 125,7||0,72||165 The highest|
|CIRQUE DU SOLEIL RUS LLC
INN 7704704694 Moscow
|PLANETA PLUS NJSC
INN 7801140316 Saint Petersburg
|RUSSIAN STATE CIRCUS COMPANY FSE
INN 7702060003 Moscow
|43,6||-75,5||49,4||1 871,3||2 083,9||2 116,6||-3,62||263 High|
|STAGE ENTERTAINMENT LLC
INN 7704536785 Moscow
|-162,9||-75,5||-151,1||1 635,8||2 020,3||1 211,4||-9,57||297 High|
|Total for TOP-10 companies||259,6||174,1||9 184,6||10 405,9|
|Average value of TOP-10 companies||26,0||17,4||918,5||1 040,6||3,28|
|Industry average value||0,4||0,1||9,5||9,6||2,42|
*Data for 2016 is given for reference.
The average value of 2015 net profit ratio in TOP-10 companies is higher than the practical value. Four companies of TOP-10 have an index value that is lower than the practical one. Two companies have a negative value, and at the same time, they have the biggest revenue of TOP-10 companies.
Eight of TOP-10 companies have a decrease in revenue or net profit as compared to the prior period, or have loss.
Industry average values of net profit ratio in 2006-2015 (Picture 2) mirror the general macroeconomic situation in the country. Net profit increases during crisis periods.
Eight of TOP-10 companies got the highest or a high solvency index Globas, that demonstrates their ability to pay their debts in time and fully.
AGENCY FOR CARRYING OUT CEREMONIES LLC and CIRQUE DU SOLEIL RUS LLC got a satisfactory solvency index Globas, due to information concerning the companies being defendants in debt collection arbitration proceedings, untimely fulfillment of their obligations and unclosed writs of execution. Index development trends are stable.