Article
Choosing a proper legal address

Article 54 of the Civil Code of the Russian Federation (part 1) from November 30, 1994, No.51-FL provides that the Unified State Register of Legal Entities (EGRUL) must contain legal addresses of legal entities within their locations. This article states that legal entities bear the risks of consequences of non-delivery of legally relevant messages (article 165.1 of the Civil Code of the Russian Federation) that were delivered at the addresses stated in the EGRUL, as well as the risk of absence of their bodies or representatives. Messages delivered at the addresses stated in the EGRUL are considered to be received by legal persons even in the case of their absence at the addresses.

Therefore, a legal address is one of the key components of any company’s operation.

However, practice shows that far from every address is suitable for becoming a legal one.

Cases of denial of registration caused by improper choice of legal address are not uncommon.

Thus, to avoid risks of denial of registration, as well as during establishment of legal entities and introduction of changes in the EGRUL one should check prospective legal addresses in the Federal Information Address System (FIAS).

FIAS is a database that contains information about objects’ addresses.

According to Part 2, Article 8 of the Federal Law from December 28, 2013 No.443-FL “On Federal Information Address System and introduction of changes to the Federal Law “On general principles of organization of local self-government in the Russian Federation” data concerning addresses that is included in the state address register is compulsory for use by central and local authorities. This also concerns provision of central and local government services and postal services.

You can check existence of an address via an e-service Federal Information Address System at the official website of the Federal Tax Service (FTS) of the Russian Federation. If the address is absent in FIAS, one should approach public authorities or local self-government authorities that are entitled to assign addresses to addressing objects, to dispose, change and cancel data concerning addresses in the state address register.

Ranking
Security for loans in electronic industry

Information agency Credinform offers a ranking of the largest Russian enterprises of electronic industry. The manufacturers of computers, electronic and optical products with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (2015 - 2017). Then they were ranked by equity turnover ratio (Table 1). The analysis is based on data of the Information and Analytical system Globas.

Loans security ratio (x) is calculated as profit before tax and interest on loans to interest amount payable. It is indicative of creditors security from non-payment of interest and the number of earnings on payment for interest during the accounting period.

The reccomended value is >1. The lack of value demonstrates the company has no loans and interest to pay. On the one hand it is good, but on the other it cannot be a proof of the company’s prosperity because successful development often needs credit resources.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in sectors, have developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. The practical value for the companies of electronic industry is from 0,85 to 37,76.

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, loans security ratio, solvency index Globas of the largest Russian companies of electronic industry (TOP-10)
Name, INN,
region, business scope
Revenue,
bln RUB
Net profit (loss),
bln RUB
Loans security ratio (x), >1 Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
JSC PLANT KRASNOYE ZNAMYA
INN 6229004711 Ryazan region
Manufacture of TV sets, including video monitors and video projectors
up8,71 up11,01 up0,81 up0,89 down81,36 up426,13 192 High
JSC NPO ALMAZ NAMED AFTER ACADEMICIAN A.A. RASPLETIN
INN 7712040285 Moscow
Manufacture of radio and television transmission equipment
up53,36 up55,17 up0,20 up0,25 up9,02 down8,32 193 High
JSC NIZHNY NOVGOROD TELEVISION PLANT NAMED AFTER V.I. LENIN
INN 5261001745 Nizhniy Novgorod region
Manufacture of radar, radio navigation equipment and radio remote control equipment
up7,93 up8,69 up0,66 down0,55 down13,49 down7,44 176 High
JSC Arsamassky Priborostroitelny Zavod Imeni Plandina
INN 5243001742 Nizhniy Novgorod region
Manufacture of other devices, sensors, equipment and instruments for measuring, monitoring and testing
up9,18 up10,83 up0,39 up0,47 down3,63 up4,00 174 Superior
JSC IZHEVSK ELECTROMECHANICAL PLANT KUPOL
INN 1831083343 The Republic of Udmurtia
Manufacture of radio and television transmission equipment
up33,17 down8,86 up4,61 down0,17 up3,54 down2,82 222 Strong
AQUARIUS PRODUCTION COMPANY LLC
INN 7701256405 Moscow
Manufacture of computers and peripheral equipment
up9,49 up9,88 down0,22 down0,13 down4,03 down2,41 212 Strong
TECHNOLOGY COMPANY SCHLUMBERGER LLC
INN 7709413265 Tyumen region
Manufacture of other devices, sensors, equipment and instruments for measuring, monitoring and testing
down21,62 down21,34 down-3,62 up0,49 down-1,85 up1,73 257 Medium
JSC GAZPROM AVTOMATIZATSIYA
INN 7704028125 Moscow
Manufacture of instruments and equipment for automatic regulation or control
down18,07 down16,26 up0,18 down0,10 up1,53 down1,36 235 Strong
TECHNOSERV AS LLC
INN 7722286471 Moscow
Manufacture of computers and peripheral equipment
up21,46 down19,81 down0,31 down0,19 down1,28 up1,33 261 Medium
SAMSUNG ELECTRONICS RUS KALUGA LLC
INN 4025413896 Kaluga region
Manufacture of instruments and equipment for automatic regulation or control
up47,65 up54,09 up6,36 down6,31   185 High
Total for TOP-10 companies up230,65 down215,94 down10,12 down9,55    
Average value for TOP-10 companies up23,65 down21,59 down1,01 down0,96 down12,89 up50,62
Industry average value up0,25 down0,19 up0,02 down0,01 up6,78 up9,99

Up — growth of indicator to the previous period, Up — decrease of indicator to the previous period.

The average indicator of loans security ratio of TOP-10 companies is significantly higher than the industry average. In 2017, four companies of TOP-10 demonstrated the upside in comparison with the previous period.

Picture 1. Loans security ratio and revenue of the largest Russian companies of electronic industry (TOP-10) Picture 1. Loans security ratio and revenue of the largest Russian companies of electronic industry (TOP-10)

Over the past 10 years, the industry average values of loans security ratio have a trend to increase (Picture 2).

Picture 2. Change in the average industry values of loans security ratio of the largest Russian companies of electronic industry in 2008 – 2017 Picture 2. Change in the average industry values of loans security ratio of the largest Russian companies of electronic industry in 2008 – 2017