Activity in 2007

A reporting general meeting of the Russian association of leasing companies "Rosleasing" took place on 21 February 2007.
The activity has been summarized and further directions of activity of the Association for the following year have been identified during the meeting.
The Association plans to continue working on solving problems related to return of VAT to leasing companies. Cooperation with governmental bodies, media, and meetings of expert teams of the Association will be conducted for this purpose.
In 2007 the Association intends to develop its own draft project of the Regulation on leasing operations business accounting. These developments will be conducted in close cooperation with Ministry of Finances of the Russian Federation and members of the Association.
It is planned to strengthen cooperation with LEASEUROPE in area of information and statistics exchange, cooperation within committees and working groups, participation in forums and conferences of the LEASEUROPE.
It is planned to extend Associations curriculum. Training courses on all leasing specialties will be conducted in 2007.
The activity on popularization of leasing will be increased. It includes, that "Rosleasing" will conduct in 2007 a series of its own conferences and round tables on leasing actual problems.
"Rosleasing" will continue conducting its own leasing market assessment and editing the magazine "Leasing and investment technologies".
The activity on consulting members of the Association will be enhanced.

Besides these, new directions of activity are scheduled for 2007:
Database of leasing companies' unfair partners will be established.
Work for synchronization of analytical organizations approach for leasing market evaluation will be conducted. This activity will be performed together with close cooperation of specialists from LEASEUROPE.
Search and evaluation of specialists for leasing companies will be performed. Systematic work with graduates of financial and economic universities and at fairs of vacancies will be conducted with the purpose of popularization of jobs in leasing area.

The following documents have been approved during the reporting back meeting:

• Association annual activity report
• Annual balance sheet
• Audit Commission report on results of Association's activity inspection
• Financial plan (receipts and expenditures budget) of the Association
• Secretariat manning table

Activity in 2006

The Russian association of leasing companies has identified main directions of activity for 2006.

A reporting back meeting of the Russian association of leasing companies "Rosleasing" took place on 15 December.

Two main directions of activity have been announced - activity for legislation and leasing market regulation and leasing market infrastructure development, first of all, of informational infrastructure.

For more efficient work of the group of experts on legislation and leasing market regulation, composition of the group of experts has been extended due to involvement of specialist coming from the companies, which are not members of the Association.

Cooperation with European federation of leasing company national associations ("LEASEUROPE"), whose member is "Rosleasing", will be increased. It will permit to observe modern world tendencies of leasing development, to take part in the process of international legislation development that touches the interests of leasing companies (e.g. minimum bank capital requirements regulation standards "Basel 2"), to attract more actively foreign investors and suppliers to work with Russian leasing companies. At its turn, Russian leasing companies will be positioned abroad according to their real successes and role within Russian economy.

Starting since 2006 the association "Rosleasing" will be attributing credit ratings to leasing companies. It is conditioned by development of leasing operations. Banks, where leasing companies address to, need an independent safety evaluation of the leasing companies. In connection with this, it is planned to develop credit rating procedure together with recommendations of credit specialists from Russian banks. It is intended to develop two procedures for credit ratings of leasing companies: remote analysis and deepened analysis methods.

In order to facilitate cooperation among leasing companies and investors it is planned to establish a single reporting database of leasing companies.

"Rosleasing" will pay a special attention to educational activities in 2006. It is scheduled to conduct in Moscow and in regions one-day seminars on actual problems of leasing activity. At the same time, a two-month advanced training course on leasing has been developed, and it is scheduled for fall 2006 in Moscow.

Establishment of databases becomes a new important direction of development of leasing market infrastructure. According to leasing companies' poll, the most actual seems to be establishment of the arbitral practice database of leasing companies. It will permit new companies to increase their efficiency of court trials, and in perspective it should become foundation for development of consolidated recommendations of leasing society to the Supreme Arbitrage on normative references of precedents.

Activity in 2005

Below is summary report of the Chairman of the Russian association of leasing companies on activity of the Association "Rosleasing" for 2005.

Introduction

The volume of leasing operations in 2004 of the companies-members of the Association "Rosleasing" achieved 1.3 billions of US dollars.

Considering this and opinion of independent experts the total volume of leasing in 2004 may be evaluated at 5-6.8 billions dollars, which makes about 4.5% of the total volume of investments in capital assets. Increase of leasing operations compared to 2003 was 85.4%. Association's assessment practically coincides with opinions of independent experts. It speaks of the fact that activity of the companies-members of the Association remains determinative on financial rent (leasing) market of Russia. 30% of new contracts of equipment and real estate leasing, made annually in our country, belong to members of the Association.

The Association

The activity of the Russian association of leasing companies in 2005 has been performed according to the Statute and decision of the reporting back general meeting as of 2 November 2004.

We may highlight the following directions of Association's activity:

• monitoring and analysis of law practice in leasing area;
• leasing popularization;
• involvement of new members into the Association;
• organizational activity improvement;
• financial discipline improvement;
• cooperation with leading social organizations: Chamber of Commerce and Industry of the Russian Federation; Russian Union of Industrialists and Entrepreneurs; North-East Leasing Association, Council of European Federation of Leasing Companies Associations etc;
• development of relations with public and mass media.

Internal management

As of 01 December 2005 the Russian association of leasing companies "Rosleasing" is composed of 118 companies, it includes: 106 leasing companies, 9 insurance companies, 3 consulting companies (annex 1).

During the reference period 16 companies have been accepted into the Association.

14 companies have been excluded from the Association; 7 of them at their requests (OJSC MLC "Mashleasing", "SibmashHolding" LTD, CJSC BC "Ariadna", CJSC Insurance Broker "Malakut", CJSC "Finansovo-promyshlennaja LC", LC "Ob'edinennye strategii" LTD, IC "SIBINTEK" LTD), 6 of them for not paying the admission and/or membership fees and loss of relations with the Association for a long period of time ("EM Artis" LTD, OJSC "Regiontehservis", "Tomeko" LTD, "AvtoTehKapistal" LTD, "Grandinvest" LTD, CJSC "Olnet Plus"), 1 due to its liquidation (OJSC "Voronej Leasing Company").

During reference period the Council has convened regularly. Association's Council composition remained unchanged during that period, except for one situation when North-East Leasing Association has requested to be included in composition of the North-East Leasing Association President's Council. Annex 3 contains the entire composition of the Council. There are 14 people all together. Annex 4 shows the structure of the Council.

This year annual poll of leasing companies contained information on automation of leasing activity. Analysis of this information has revealed the necessity of system approach to this problem from Association's side.

Within the activity of the subcommittee on IT-technologies the Association has initiated a tender by the "1C" company under auspices of the Association among franchising companies "1C" for development of software product for leasing companies. Leading specialists of the Association in area of automation of leasing activity have been working in the competitive commission. The contest winner became the company Homenet, which presented its product "Homenet: Leasing.prof" in November of this year.

4 people are working in the secretariat of the Association. Manning table is attached.

Today the General Meeting, according to its statute, has to coordinate the manning table for 2006.

The group of experts of the Association has been working since the beginning of 2003, established according to resolution of the international conference "Leasing in Russia 2002. Situation and perspectives". The work of the group has been led by Korolev Sergej Valer'evich, member of the Council "Rosleasing", deputy Director General of the OJSC "Rosagroleasing". The following people have become members of the group of experts: Demich G.V. (OJSC "Rosagroleasing", Kapyrin I. V. (RusLeasingSvyazi), Kirkorov A.N. ("Stone-XXI" LTD), Kuprinov A.E. (CJSC "MMB-Leasing"), Lunvea I.L. ("EnergogazleasingHold" LTD), Panskih N.P. (CJSC "Tehnoleasing"), Pligin E. K. (OJSC "Likostroj"), Rekichanskij S. I. ("RB-Leasing" LTD), Tkacenko M.V. (CJSC "Moscow Leasing Company"), Choporov A. Ju. ("LeasingPromHold" LTD)).

Group of experts held 2 meeting in 2005. The main result of the group's activity is a package of materials for legislative initiatives on amendments to tax code of the Russian Federation. These materials have been transferred in 2004 by the Chairman of the Association into the staff of fraction "Edinaja Rossija" and taken into consideration while examining the project of law by the Government of the Russian Federation and approval of Federal Law no. 58 "On making modifications and completions to articles 23 and 25 of the Tax Code of the Russian Federation".

A decision has been taken at the last meeting to involve into this activity qualified legal and economy experts, in order to continue the activity of the Association on improvement of legislative and normative legislation of leasing.

The Association has been the organizer of the First strategic session for leasing companies, which has been conducted in May 2005 and became the first one in series of events directed to development of leasing area development strategy.

In June 2005 the Association has conducted a round table for leasing companies on issues related to reporting to Federal Financial Monitoring Service, within legislation of counter activity for "laundering" of illegal profit and financing of terrorism. Participants from the headquarters of the Federal Financial Monitoring Service have been involved in the round table. Representatives of over 50 leasing companies took part in the round table.

In October 2005 the Association together with OJSC "RosAgroLeasing", within "Agriculture Leasing Day" at the exhibition "Golden Fall 2005" has conducted practical seminar on the topic ("Financial rent (leasing) in agriculture").

In 2005 the Association's representatives took part in more than ten activities dedicated to leasing activity development (round tables, conferences, forums).

Financial discipline

During the reference period 80% of the companies paid their entrance and membership fees. These are the highest indicators for the last 6 years. The amount of membership fees attained 1504000.000 rubles. The amount of entrance fees attained 448000.00 rubles.

Secretariat employees permanently keep in touch with unfair payers. Approval at the previous meeting of the Association of a strict regulation on paying membership fees (deadline, exclusion procedure etc.) permitted the secretariat to solve more efficiently the problems of financial discipline and increased the responsibility of Association's members in this matter.

External management

For increase of influence and importance of the Association as social organization, a very important fact is permanent contact and active participation in activities and works, conducted by the most influential social organizations in area of Russian economy. First of all with Chamber of Commerce and Industry of the Russian Federation (E.M.Primakov), Russian Union of Industrialists and Entrepreneurs (Shohin A.).

At this time a permanent information exchange with these organizations has been established. Certain companies have taken part in activities, seminars, business meetings etc. organized by Chamber of Commerce and Industry of the Russian Federation and Russian Union of Industrialists and Entrepreneurs.

The Association does not have debts on membership fees in these organizations.

The Association has a debt on membership fees in the Council of European Federation of Leasing Companies Associations for 3 years. Annual fee for this organization is 15000 Euro. I consider reasonable to continue activity of the Association with the Council of European Federation of Leasing Companies Associations and to propose to the Meeting foreseeing in the Association's budget expenditures for membership fees in the Council of European Federation of Leasing Companies Associations.

In order to discuss further perspectives of the cooperation of the Association with the Council of European Federation of Leasing Companies Associations, phone negotiations have been conducted with the Secretary General of the Council of European Federation of Leasing Companies Associations Mr. Baert.

I would specifically stress the cooperation with the North-East Leasing Association. "Rosleasing" is cofounder of this association and takes part in its activity. North-East Leasing Association performs its own leasing market assessments in its region.

The Association is cofounder of the Leasing confederation (union) of the Commonwealth of Independent States (SNG-Leasing). The Association actively participates in the activity of the Confederation SNG-Leasing, including regular meeting of the Board of Administration. On 1 November members of the Association took part in the Third Interstate Forum "SNG-Leasing and Capital". A welcome address by the Chairman of the Association and a report of the activity of "Rosleasing" and development of leasing in Russia has been made by M.V. Sal'kov.

During the reference period specialists of the Association, members of the Council took part as presenters in the 1^st international conference in city of Belek, Turkey.

The Association took part in the VII-th Moscow international forum "Dorkomexpo 2005".

The Association actively cooperates with mass media. In 2005 publications have been made in the following magazines: "Leasing Review", "Commerce and Industrial News", "Eurasia", "Business People". In 2005 information on the Association has been presented in the following magazines: "World of investments and finances", "Industrial courier", "Modern office", "Russian" and "Parliamentary" newspapers.

The Association has actively taken part in consultations on establishment by the agency "Expert RA" of a leasing companies rating. Many members of the Association take part in this rating. Association's assessment materials on the results of 2005 (for nine months of this year) have found its reflection in the newspapers "Izvestja" and "Kommersant - Daily".

Since 2006 the Association begins its own work on development of leasing market operators rating.

In 2005 the positions of regional representatives of the Association have been established and they are still active. At the next meeting of the Council 7 candidates, from the top management of regional leasing companies, for positions of regional representatives have been approved. Approved representatives of the Association have been called, on behalf of the Association, to represent the interests of leasing society in the regions and contribute to Association's research activity, based on the presented information.

The Association's website is maintained in updated situation. Website visiting statistics are shown below.

On Association's work plan

In the Association's work plan for 2006 there has been made accent on cooperation with legislative and executive branches, as well as with leading authoritative social organizations on establishment of an efficient improvement mechanism of legislative and normative basis of the Russian leasing. And the work in this direction should be conducted at federal and regional levels.

Special attention should be paid to activity of establishment of an authoritative image of the Association in mass media. In this direction the Association has gained certain experience.

The newspapers "Izvestja" and "Kommersant" regularly perform leasing market assessments and refer to the Association's reports, involve Association's specialists into creation of publication materials. Expert agency "Expert RA" annually publishes its own assessment results. Similar ratings are performed by agencies "Expert Sibir'", "Expert Ural". Our specialists take the most active role in creation of these ratings and also participate as consultants.

Activity in 2004-2003

Below is summary report of the Chairman of the Russian association of leasing companies on activity of the Association "Rosleasing" for the period March 2003 - November 2004.

Introduction

The volume of leasing operations in 2003 made by companies-members of the Association "Rosleasing" exceeded 1.3 billions US dollars. These are some of the largest companies, and based on their activity we may make the conclusion on leasing development in certain areas of economy, and overall - on leasing in Russia.

Considering this and independent experts' opinions, the overall leasing volume in 2002 may be evaluated at 3.5 billions dollars, and it is 4.5% of the total investments in capital assets. Association's evaluations, made in its annual magazine "Leasing and Investment Technologies" practically coincide with independent experts' opinions. It speaks of the fact that activity of the companies-members of the Association remains determinative on financial rent (leasing) market of Russia. 30% of new contracts of equipment and real estate leasing, made annually in our country, belong to members of the Association.

The Association

The activity of the Russian association of leasing companies in 2003-2004 has been performed according to the Statute and decision of the reporting back general meeting as of 27 April 2003.

We may highlight the following directions of Association's activity:

• monitoring and analysis of law practice in leasing area;
• leasing popularization;
• involvement of new members into the Association;
• organizational activity improvement;
• financial discipline improvement;
• cooperation with leading social organizations: Chamber of Commerce and Industry of the Russian Federation; Russian Union of Industrialists and Entrepreneurs; North-East Leasing Association, Council of European Federation of Leasing Companies Associations etc;
• development of relations with public and mass media.

Internal management

As of 2 November 2004 the Russian association of leasing companies "Rosleasing" is composed of 115 companies, it includes: 103 leasing companies, 10 insurance companies, 1 consulting company.

During the reference period 57 companies have been accepted into the Association.

7 companies have been excluded from the Association; 2 of them at their requests ("IBS" and "Strojtransgaz"), 5 of them for not paying the admission and/or membership fees and loss of relations with the Association for a long period of time BC "Neftepolice", "Leasing business", Group of Companies "Leader", "Packermash").

During reference period the Council has convened in average once a month, taking into consideration summer vacation period, when Council meetings have not been conducted with personal participation of members, but all problems have been settled by means of electronic voting.

Association's Council membership remained unchanged during that period. However, at the Association Council meeting as of 6 October 2004 there has been taken a decision to change the composition of the Council and its structure. It has been proposed to lessen its number down to 13 people. It has also been a proposal to change the Council structure. In particular, to dissolve the Committee on leasing of building and road-construction machinery. To transform the Committee on banks and leasing of aircraft into the Committee on investments. This Committee would have a task to lead the topics of leasing companies' cooperation with banks and other financial institutions.

This year annual poll of leasing companies contained information on automation of leasing activity. Analysis of this information has revealed the necessity of system approach to this problem from Association's side. In connection with this the Council made a proposal to establish a subcommittee on IT-technologies under the Committee on bookkeeping of leasing operations.

Reorganization and renewal of secretariat manning has been performed in June 2004. Today there are 4 people in the secretariat. The manning table is attached. One of the particularities of this manning table is the introduction of a new position of a legal expert. In Council's opinion, at this stage of the activity of the group of experts should be supported by a professional legal expert. His/her duties will also include permanent monitoring of legislative and normative documents, their analysis and conclusion.

The group of experts of the Association has been working since the beginning of 2003, established according to resolution of the international conference "Leasing in Russia 2002. Situation and perspectives". The work of the group has been led by Korolev Sergej Valer'evich, member of the Council "Rosleasing", deputy Director General of the OJSC "Rosagroleasing". The following people have become members of the group of experts: Demich G.V. (OJSC "Rosagroleasing", Dudin D.Ju. (OJSC "Rosagroleasing"), Kapyrin I. V. (RusLeasingSvyazi), Kirkorov A.N. ("Stone-XXI" LTD), Kirkorova N.I. ("Leasingaz" LTD), Kudrin V.B. ("Stone-XXI" LTD), Kuprinov A.E. (CJSC "MMB-Leasing"), Lunvea I.L. ("EnergogazleasingHold" LTD), Panskih N.P. (CJSC "Tehnoleasing"), Luneva I.L. ("Energogazleasing" LTD), Nikolaeva Ju.V. ("EnergogazleasingHold" LTD), Panskih N.P. (CJSC "Tehnoleasing"), Pligin E. K. (OJSC "Likostroj"), Rekichanskij S. I. ("RB-Leasing" LTD), Tkachenko M.V. (CJSC "Moscow Leasing Company"), Choporov A. Ju. ("LeasingPromHold" LTD), Shul'cev D.V., Deputy Chairman "Rosleasing").

Group of experts held 8 meetings in 2003 and 3 meetings in 2004. The main result of the group's activity is a package of materials for legislative initiatives on amendments and completions to the Law "on Financial Rent (leasing)" and tax code. These materials have been transferred in March 2004 by the Chairman of the Association to the staff of fraction "Edinaja Rossija" for initial examination by qualified legal experts of the fraction, who reported then in June on their activity to members of the group of experts. As a result of that meeting a decision has been taken to postpone further forwarding of these initiatives until their final version is completed. At the last meeting the Council has taken a decision to involve for this activity qualified legal and economy experts, in order to have by the beginning of the next year the completed version of these documents and to start their forwarding and obtain approval by the State Duma.

In 2003 one edition of the "Leasing and investment technologies" magazine has been published.

Annual leasing companies' poll has been conducted on the result of activity in 2002. Analysis report on these results has been published in the magazine.

Similar poll has been conducted on the results of activity in 2003 and its results have been published in the jubilee edition of the magazine.

External management

For increase of influence and importance of the Association as social organization, a very important fact is permanent contact and active participation in activities and works, conducted by the most influential social organizations in area of Russian economy. First of all with Chamber of Commerce and Industry of the Russian Federation (E.M.Primakov), Russian Union of Industrialists and Entrepreneurs (Vol'skij A.I.).

At this time a permanent information exchange with these organizations has been established. Certain companies have taken part in activities, seminars, business meetings etc. organized by Chamber of Commerce and Industry of the Russian Federation and Russian Union of Industrialists and Entrepreneurs.

The Association does not have debts on membership fees in these organizations.

At the same time, in connection with new normative documents and letters of the Ministry of Finances, Central Bank of the Russian Federation, as well as determination by the Constitutional Court, the Association has strengthened contacts with ministries and institutions through letters-requests.

I would specifically stress the cooperation with the North-East Leasing Association. "Rosleasing" is cofounder of this association and takes part in its activity. North-East Leasing Association performs its own leasing market assessments in its region, and the results are published in our magazine.

During the reference period specialists of the Association, members of the Council took part as presenters in 5 international conferences, including the conference in Amsterdam and Nizhniy Novgorod. One of them - "Leasing in Russia in 2003. Situation and perspectives" - has been organized and conducted our Association.

The Association took part in organization of the exhibition "Leasing - 2003", but did not participate as exhibit. Executing Council's decision on participation of the Association in thematic and sector exhibitions, in December 2003 Association's stand has been organized at the exhibition "Equipment and machinery suppliers - 2003". A round table on leasing issues has also been organized and conducted.

The Association actively cooperates with mass media. In 2003 publications have been made in the following magazines: "Great Washington", "Leasing Review", "Faces", "Commerce and Industrial News", "Furniture World", "Eurasia", "Business People". In 2004 information on the Association has been presented in the following magazines: "World of investments and finances", "Industrial courier", "Modern office", "Russian" and "Parliamentary" newspapers.

In September 2003 RIA-Novosti conducted a press-conference on the results of the Association's members activity in 2002 (Association's report) and on the activity of the group of experts. It has been widely announced for the first time on beginning of legislative activity by the Association. The press conference has been widely reflected by media.

The Association has actively taken part in consultations on establishment by the agency "Expert RA" of a leasing companies rating. Many members of the Association take part in this rating. Association's assessment materials on the results of 2003 have found its reflection in the newspapers "Izvestja" and "Kommersant - Daily".

The Association's website is maintained in updated situation. Website visiting statistics are shown below.

On Association's work plan

In this presented to your attention Association's work plan for the period March 2003 - March 2004 there have been made accents on cooperation with legislative and executive branches, as well as with leading authoritative social organizations on establishment of an efficient improvement mechanism of legislative and normative basis of the Russian leasing. And the work in this direction should be conducted at federal and regional levels.

Special attention should be paid to activity of establishment of an authoritative image of the Association in mass media. In this direction the Association has gained certain experience.