Information agency Credinform has prepared the ranking of the largest law consulting firms in Russia.

The largest companies by revenue volume for the last available in the Statistical register period (2014) were taken for the ranking. They were ranked in the descending order of net profit ratio.

Net profit ratio (%) is calculated as a ratio of net profit (loss) to revenue from sale. The ratio shows to what extent company’s sales were profitable.

There is no standard indicator value, therefore it is recommended to compare companies belonging to one industry or the change of ratio in the course of time by a specific enterprise. The negative value of indicator gives evidence to availability of the net profit. The bigger indicator value shows the bigger operating efficiency of an enterprise.

In order to get the fullest and fairest view of the company’s situation, it is necessary to pay attention not only to the values of financial ratios, but also to all the submitted financial and nonfinancial data.

Limited Liability Company McKinsey & Company CIS, the Top-10 leader by revenue for 2014, is placed on the fourth spot of the ranking. Share of this company in Top-10 total revenue volume amounted to 39 %. CHAMBER OF COMMERCE AND INDUSTRY OF THE RUSSIAN FEDERATION has the highest net profit ratio 85,52%. The lowest and the most negative value -115,53% belongs to IFC Asset Management Company, which corresponds to the significant loss of the company for 2014. This is the only company in the Top-10 having satisfactory solvency index Globas-i®. It means that the solvency level of the company doesn’t guarantee full and timely repayment of debt obligations. The rest nine companies were given the prime and high solvency index Globas-i®, which gives evidence to their ability to meet debt obligations timely and full.

        Figure 1. Net profit ratio, revenue from sale of the largest law consulting firms (Top-10)

The total revenue volume of the Top-10 companies for 2014 amounted to 17,4 billion RUB, which is by 14% greater than the same indicator for 2013. At the same time the revenue of three companies decreased in comparison with the previous year. Only two companies - LAW FIRM GORODISSKY & PARTNERS LTD and JOINT STOCK COMPANY BDO UNICON BUSINESS SOLUTIONS showed the increase of net profit ratio value in 2014 in relation to 2013. The average indicator value in the Top-10 in 2013-2014 amounted to 19,85% and 14,68% respectively. It reflects the trend of efficiency decline of conducting this business due to total economic situation in the country.

Nine companies from the Top-10 are registered in Moscow. It bears evidence to the high centralization of law consulting services business in one region of the country. It is confirmed by the Federal State Statistics Service of Russia (Rosstat) data by the related type of activity – provision of auditing services (Table 2).

In 2016 amendments have come into force made by the Federal Laws of the RF of 14.12.2015 №374-FL «On amendments to the Federal Law «On compulsory medical insurance in the RF» and certain legislative acts of the RF»; of 30.12.2015 №432-FL «On amendments to the article 25 of the RF Law «On organization of insurance system in the RF» and the Federal Law «On compulsory medical insurance in the RF»; of 09.03.2016 №55-FL «Оn amendments to the articles 48 and 13 of the Federal Law « On compulsory medical insurance in case of temporary incapacity to work and in case of maternity»»; of 09.03.2016 №56-FL «On amendments to the Federal Law «On compulsory insurance of civil responsibility of hazardous facility owner for causing of harm in consequence of incident on hazardous facility».

Adopted amendments make significant changes to the insurance legislation.

In particular, regulations to the amount of the share capital of insurance medical companies are hardened. Since January 1, 2017 the share capital must be not less than 120 mln RUB. The year 2016 is oriented to accomplish this regulation. Besides, insurance medical companies are again obliged to form reserve fund that must be used for financing of medical staff education, purchase and repair of medical equipment.

If the company is in process of bankruptcy, Social insurance Fund pays benefit to employees – the list of similar cases is updated.

The system of insurance agents responsible for fulfillment of medical treatment regulations come into use. This function is delegated on the insurance company, and conditions are provided in contract between compulsory medical insurance fund and insurance medical organizations.

Participation interest of the Social insurance Fund is increased up to 60% in the financing program of medical workers coming for work to the countryside.

The companies managing multi-dwelling units are obliged to insure hazardous facilities. An organization providing works on maintenance, capital repair and modernization of hazardous facilities or an organization exploiting hazardous facility must be responsible for insurance.

The list of insurance cases is significantly completed and amount of the insurance payouts for physical and legal entities are increased, in certain cases to 2 mln RUB.

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