The Federal Law as of 11.06.2021 №203-FL introduces the amendments into the Code of administrative offenses of the Russian Federation, according to which the arrangement of consumer credits or loans, including real estate credits, by legal entities and sole entrepreneurs, having no right to engage in this activity, is punishable by administrative fines:

• for public officials – from RUB 30 to 50 thousand;
• for non-incorporated entrepreneurs– from RUB 30 to 50 thousand or business interruption by administrative means up to 15 days;
• for legal entities - from RUB 300 to 500 thousand or business interruption by administrative means up to 15 days;

In case of crime repetition and absence of elements of the criminally punishable acts, the following fines may be imposed:

• for public officials – from RUB 50 to 200 thousand;
• for non-incorporated entrepreneurs – from RUB 50 to 200 thousand or business interruption by administrative means up to 60 days;
• for legal entities – from RUB 500 to 2 million or business interruption by administrative means up to 60 days;

Concurrently, the Federal law as of 11.06.2021 №215-FL introduces the amendments into the Criminal and the Penal Codes of the Russian Federation, according to which the criminal liability is established for an illegal arrangement of consumer credits or loans.

In particular, the new article 171.5 is included into the Criminal Code of the RF, according to which the arrangement of consumer credits and loans, provided by a Federal law as of 21.12.2013 №353-FL «On consumer credit (loan)» is declared as a criminally punishable act under the following conditions:

• it has no signs of illegal banking activity;
• it is committed by sole entrepreneurs or persons, performing duties of companies’ heads, having no right to engage in this activity, in a large amount of money (more than RUB 2 250 thousand);
• the administrative penalty was earlier imposed for the similar offense;

Criminal liability provides the following:

• a fine – from RUB 300 to 1 million or in the amount of salary or income for the period from 2 to 4 years,
• compulsory community service up to 480 hours,
• imprisonment up to 3 years with the deprivation of right to hold specific posts or to engage in certain activities up to 3 years.

Information agency Credinform represents a ranking of the largest companies of chemical industry in Kazan. Companies engaged in production of chemicals and chemical products with the largest volume of annual revenue (TOP 10 and TOP 100) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 - 2020). They were ranked by the equity turnover ratio (Table 1). The selection and analysis were based on the data of the Information and Analytical system Globas.

Equity turnover (times) is the ratio of revenue to the average annual amount of equity capital; it shows the intensity of the enterprise's use of total available assets.

The ratio reflects the rate of turnover of equity capital. A high value of the ratio is indicative of the efficient use of own funds, and a low one is an indicator of the inaction of a part of own funds.

The experts of the Information Agency Credinform, taking into account the actual state of situation both in the economy in general and in the industries, have developed and implemented the calculation of practical values of financial ratios in the Information and Analytical system Globas that can be recognized as normal for a particular industry. For chemical industry enterprises, the practical values of the equity turnover ratio in 2020 ranged from 0 to 14,2 times.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, equity turnover ratio and solvency index Globas of the companies of chemical industry in Kazan (TOP 10)

Name, INN, activity	Revenue, million RUB		Net profit (loss), million RUB		Equity turnover ratio, times		Solvency index Globas
	2019	2020	2019	2020	2019	2020
1	2	3	4	5	6	7	8
LLC PKF-UPAKOVKA INN 1656060661 manufacture of other chemical products, not elsewhere classified	93,2	870,0	0,1	0,7	61,16	451,46	277 Medium
LLC POLIPAK INN 1658026850 manufacture of plastics and synthetic resins in primary forms	636,5	667,5	67,9	65,7	6,70	7,76	230 Strong
LLC TIOKOM-GERMETIK INN 1657145036 manufacture of paints, varnishes and similar coating materials, printing inks and mastics	587,9	564,1	26,0	36,6	9,05	6,49	225 Strong
LLC KAZAN LIGHT CHEMISTRY PLANT INN 1659157333 manufacture of plastics and synthetic resins in primary forms	434,6	561,0	31,2	61,7	5,71	4,60	179 High
НАО NEFIS COSMETICS - KAZAN CHEMICAL PLANT NAMED AFTER M. VAKHITOV (SOAP AND CANDLE FACTORY NO. 1 FORMER KRESTOVNIKOVS) INN 1653005126 manufacture of soap and detergents, cleaning and polishing products	15 686,2	18 899,1	870,8	1 569,2	3,81	3,54	225 Strong
LLC MASTER CHEMICALS INN 1655142978 production of basic chemicals, fertilizers and nitrogen compounds, plastics and synthetic rubber in primary forms	3 678,7	4 249,2	220,8	852,1	5,29	3,52	187 High
JSC AROMAT INN 1653008462 production of perfumery and cosmetics	1 107,3	1 261,2	53,7	72,1	3,08	2,98	198 High
LLC EGIDA+ INN 1656018691 manufacture of plastics and synthetic resins in primary forms	7 152,5	6 040,1	884,3	604,7	3,41	2,24	172 Superior
LLC TATKHIMPLAST INN 1655217729 manufacture of plastics and synthetic resins in primary forms	1 278,1	1 124,9	447,8	37,8	4,22	2,07	235 Strong
KAZAN JSC ORGANIC SYNTHESIS INN 1658008723 manufacture of plastics and synthetic resins in primary forms	72 440,1	62 793,1	11 637,5	8 606,7	1,12	0,98	175 High
Average value for TOP 10	10 309,5	9 703,0	1 424,0	1 190,7	10,36	48,57
Average value for TOP 100	1 092,4	1 037,2	144,6	121,9	35,64	31,69
Average industry value	381,6	382,4	56,4	-2,8	1,50	1,27

growth of indicator to the previous period, fall of indicator to the previous period

The industry average values of the equity turnover ratio of TOP 10 and TOP 100 are above the industry average ones and the practical values. However, only two companies of TOP 10 increased their figures in 2020 compared to 2019. In 2019, the growth was recorded for three companies.

In 2020, six companies included in TOP 10 gained revenue and/or net profit. In general, the industry average revenue climbed at 0,2%, an almost 6% decrease was recorded for TOP 10 and a 5% fall was recorded for TOP 50. The average profit of TOP 10 and TOP 100 fell 16%, and the fall for the industry at average was more than doubled.

Over the past five years, the industry average values of the equity turnover ratio have decreased constantly. The highest value was recorded in 2016 and the lowest one was in 2020 (Picture 1).

Picture 1. Change in the industry average values of the equity turnover ratio of the companies of chemical industry in 2016 - 2020