The Supreme Court of Russia adopted a provision tightening the rules concerning consideration of requests of investigating authorities for arrest on charges of fraud.

The provision requires the courts to conduct a special fact-check that a possible crime is not directly related to entrepreneurial activity. This concerns the charges under the Articles of the Criminal Code of the Russian Federation:

- part 1 of the Article 159 Fraud;

- part 2 of the Article 159 Fraud committed by a group of persons by prior conspiracy, as well as causing significant damage to a citizen;

- part 3 of the Article 159 Fraud committed by a person using the official position, as well as large-scale fraud;

- part 4 of the Article 159 Fraud committed by an organized group either on an especially large scale or involving the deprivation of a citizen's right to a housing;

- 159.1 Credit fraud;

- 159.2 Payout fraud;

- 159.3 Electronic payment fraud;

- 159.5 Insurance fraud;

- 159.6 Fraud in the cyber realm;

- 160 Misappropriation or embezzlement;

- 165 Causing property damage through fraud or breach of trust;

- 201 Abuse of authority.

Such checks should be carried out at each request of the investigating authorities for the application of preventive measures in the form of detention in respect of suspected or accused individuals who are individual entrepreneurs or members of management bodies of commercial organizations.

In particular, the decisions on the initiation of motions and the materials annexed to the decisions must be checked for the availability of specific information confirming the conclusion that the alleged crime is not connected with:

• entrepreneurial activity,
• management of property used for business purposes,
• exercise of authority to manage a company,
• conduct by a commercial organization of entrepreneurial or other economic activity.

Thus, now the investigating authorities in their petitions are obliged to prove that the alleged crimes are not directly related to the economic activities of the accused persons. In the absence of such evidence, applications must be rejected.

Indications of mercenary motives of suspected (accused) persons or disposition of stolen property cannot be grounds for recognition of acts committed outside of entrepreneurial activity.

According to the information of the General Prosecutor's Office of the Russian Federation, over the past five years, the number of persons who have committed crimes and hold positions in a commercial or other organization related to the execution of management functions has a trend to increase (Picture 1).

Picture 1. Change in the number of perpetrators of crimes holding positions in a commercial or other organization related to the execution of management functions in 2015 - 2019

Information agency Credinform has prepared a review of activity trends of the largest Russian security companies.

The largest companies (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2013 - 2018). The analysis was based on data of the Information and Analytical system Globas.

Net assets is a ratio reflecting the real value of company's property. It is calculated annually as the difference between assets on the enterprise balance and its debt obligations. The ratio is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

The largest company in terms of net assets is SECURITY COMPANY AMULET LLC, INN 5609068043, Orenburg region. In 2018 net assets of the company amounted to 284 million RUB.

The smallest size of net assets in TOP-1000 had PRIVATE SECURITY ENTERPRISE AERO GUARD LLC, INN 5009045622, Moscow region. The lack of property of the company in 2018 was expressed in negative terms -150 million RUB.

For the last ten years, the average values of TOP-1000 net assets showed the growing tendency with positive dynamics of growth rates (Picture 1).

Picture 1. Change in average net assets value of ТОP-1000 companies in 2009 – 2018

For the last five years, the share of ТОP-1000 enterprises with lack of property is decreasing (Picture 2).

Picture 2. The share of enterprises with negative net assets value in ТОP-1000

Sales revenue
In 2018, the total revenue of 10 largest companies amounted to 13% from ТОP-1000 total revenue (Picture 3). This fact testifies the high level of competition in the industry.

Picture 3. Shares of TOP-10 in TOP-1000 total revenue for 2018

In general, the growing trend in sales revenue with positive dynamics of growth rates is observed (Picture 4).

Picture 4. Change in average revenue of TOP-1000 in 2009 – 2018

Profit and loss
The largest company in terms of net profit is PSC BASTION LLC, INN 8904047159, Yamalo-Nenets Autonomous Okrug. In 2019 the company’s profit amounted to 271 million RUB.

For the last ten years, the average profit values of TOP-1000 show the growing tendency with a decrease in growth rates (Picture 5).

Picture 5. Change in average profit (loss) in 2009 – 2018

Over a five-year period, the average net profit values of ТОP-1000 show the growing tendency, along with this the average net loss is also increasing (Picture 6).

Picture 6. Change in average net profit/loss of ТОP-1000 companies in 2014 – 2018

Main financial ratios
For the last ten years, the average values of the current liquidity ratio were within the recommended values - from 1,0 to 2,0, with growing trend (Picture 7).

The current liquidity ratio (ratio of total working capital to short-term liabilities) shows the sufficiency of company’s assets to meet short-term obligations.

Picture 7. Change in average values of current liquidity ratio in 2009 – 2018

Within ten years, the downward trend of the average values of ROI ratio is observed (Picture 8).

The ROI ratio is calculated as a ratio of net profit to sum of stockholder equity and long-term liabilities and shows the return from equity involved in commercial activities and long-term borrowed funds.

Picture 8. Change in average values of ROI ratio in 2009 – 2018

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

For the last ten years, this business activity ratio demonstrated the downward trend (Picture 9).

Picture 9. Change in average values of assets turnover ratio in 2009 – 2018

Small businesses
91% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue is almost 65%, which is more than three times higher than the national average value in 2018 – 2019 (Picture 10).

Picture 10. Shares of small and medium-sized enterprises in ТОP-1000

Main regions of activity
ТОP-1000 companies are unequally located across the country and registered in 73 regions of Russia. More than 48% of the largest enterprises in terms of revenue are located in Moscow, Moscow region and St. Petersburg (Picture 11).

Picture 11. Distribution of TOP-1000 revenue by the regions of Russia

Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest part have above average financial position (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Most of TOP-1000 companies got superior/high or strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).

Picture 13. Distribution of TOP-1000 companies by Solvency index Globas

Conclusion
A complex assessment of activity of the largest Russian security companies, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of positive trends (Table 1).

Table 1. Favorable and unfavorable trends, assessment factors

Trends and assessment factors	Relative share, %
Dynamics of average net assets value	10
Growth/drawdown rate of average net assets value	10
Increase / decrease in the share of enterprises with negative net assets	10
The level of competition / monopolization	10
Dynamics of average net profit	10
Growth/drawdown rate of average revenue	10
Dynamics of average revenue	10
Growth/drawdown rate of average net profit (loss)	-10
Increase / decrease in average net profit of companies	10
Increase / decrease in average net loss of companies	-10
Increase / decrease in average values of current liquidity ratio	10
Increase / decrease in average values of ROI ratio	-10
Increase / decrease in average values of assets turnover ratio, times	-10
Share of small and medium-sized businesses by revenue more than 20%	10
Regional concentration	-10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Average value of factors	4,1

favorable trend (factor) , unfavorable trend (factor).