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).
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.
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).
For the last five years, the share of ТОP-1000 enterprises with lack of property is decreasing (Picture 2).
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.
In general, the growing trend in sales revenue with positive dynamics of growth rates is observed (Picture 4).
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).
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).
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).
Within ten years, the downward trend of the average values of ROI ratio is observed (Picture 8).
For the last ten years, this business activity ratio demonstrated the downward trend (Picture 9).
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).
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).
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).
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).
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).
|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|
|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).