INTRAST Financial Group covers INTRAST Finance Company (Russia)
INTRAST Financial Group covers INTRAST Finance Company ( Russia ) INTRAST Managing Company ( Russia ) Inter PID Financial Services Ltd. (Cyprus) Inter PID Financial Services Ltd.
- Central Bank of Russia Permit of 20.04.2001 - Registration certificate issued by Russia Ministry of Justice #795.19, 20 June, 2001 - Central Bank of Cyprus Permit of 5 Oct., 2001 (registered in 2001) - Parent INTRAST Finance Company, Moscow, Russia - Moscow-based office at the parent company and in Nicosia (From 2002 start till Aug. 2003 office address 5 Hytron str., Nicosia, Cyprus) - Member of CIFSA - Share capital 150.000 CYP Intrast (Russia) Inter PID Financial Services Ministry for Economy Central Bank of Russia ASMK (founder) Ministry for Foreign Economic Relations Ministry for Internal Affairs Russian SEC Scheme of Inter PID Financial Services Ltd. setting-up Inter PID Financial Services Ltd.
Internal Auditor Krasilnikov Vladimir Non-Executive Manager Savvas Shiatis (Cyprus) General Manager 2 Sinukaev Victor General Manager 1 Klokov Engueni Investment Committee Pavlinova Vera Frolov Vadim Vekshin Mikchail Fund Management Department Arisrakesian Mikchail Reception and Transmission of Orders Department (Outsourced to Intrast) Finance and Operations Department Credit and loan Department Analysis Department (Outsourced to Intrast) Corporate Services Department Pavlinova Vera Reception of Orders Abramov Dmitriy Verification of Orders Executed Vlasova Nina Accounting Department Sinukaev Pavel I.T Systems Department Boronenkov Victor Risk Management Vekshin Mikchail Briefing of Customers Bodganov Aleksei Administration-Secretarial Department Bodganov Aleksei Board of Directors Klokov Evgueni Andreas Xenophontos (Cyprus) Christos Meraclis (Cyprus) Structure Customer Services Department Frolov Vadim
INTRAST Financial Group covers - INTRAST Finance Company ( Russia ) - INTRAST Managing Company ( Russia ) - Inter PID Financial Services Ltd. (Cyprus) Founder - INTRAST Finance Company, Moscow, Russia - Experience from 1992 - Own capital $1.65mln License: 177-02671-100000 Date : 1 Nov., 2000 Company : FC INTRAST Validity : infinite Licensor : FSCM Activity : brokerage services License: 177-02694-010000 Date: 1 Nov., 2000 Company: FC INTRAST Validity: infinite Licensor: FSCM Activity: dealer services License : 177-02709-001000 Date : 1 Nov., 2000 Company : FC INTRAST Validity : infinite Licensor : FSCM Activity : asset management License : 177-02714-000100 Date: 1 Nov., 2000 Company : FC INTRAST Validity : infinite Licensor : FSCM Activity : depository services License : 22-000-1-00020 Date: 13 Dec., 2000 Company : FC INTRAST Validity : infinite Licensor : FSCM Activity : investment/unit share investment/ non state pension funds special depository services 100% being held by ASMK (asset management company).
INTRAST Financial Group covers - INTRAST, Managing Company Moscow, Russia - Experience from 1993 - Own capital $1.75mln . License : 077-06197-001000 Date: 02 Sep., 2003 Company : FC INTRAST Validity : infinite Licensor : FSCM Activity : investment/unit share investment/ non state pension funds special depository services License : 21-000-1-00073 Date: 08 July, 2002 Company : MC INTRAST Validity : 8 July, 2007 Licensor : FSCM Activity : investment/unit share investment/non state pension funds special
INTRAST Financial Group cover Services of Founder - Broker services - Asset management on Russian capital market - Advising services on investments in Russian enterprises (long term investments) - Special depository of investment/unit share investment funds/non government pension funds Markets of Founder - Government short term coupon-free bonds market - Moscow International Stock Exchange - St.Petersburg Stock Exchange - Russian Trading System - Stock auctions arranger - participant of Russian promissory notes system
Member Member of National Association of Stock Exchange Dealers (NAUFOR) and Professional Association of Registrars, Transfer Agents and Depositories (PARTAD) Ratings (assigned in IH 2003) - A group (NAUFOR) high reliability of the company - AA group (PARTAD) rather high reliability of the company - Top 10 as special depository on total amount of own capital total number of accounts for non government pension funds/managing companies volume of serviced securities
Target of Inter PID Financial Services Ltd. performance To attract native/foreign clients due to the legacy and transparency of Inter PID business. - Broker services on European/US markets (NY, London, Dusseldorf) - Broker/depository services on Russian market - reception and transmission of transferable securities - money market instruments - financial futures contracts - options on behalf of third parties) - Asset management for Russian/foreign investors - Non-core services include - granting of credits or loans to third parties; - foreign exchange services connected with investment services - advising services for Russian/foreign investors - on capital structure, shaping of business strategy - advice on mergers and acquisitions - investment advice on financial instruments Services:
Target of Inter PID Financial Services Ltd. performance Cyprus-based Inter PID advisor Horwath Pillipides & Partners Address: 70 Kennedy Avenue, Papabasiliou House, Nicosia, Cyprus Legal adviser - law office of Dr.Christos Klerides. Foreign Brokers/depositories - White Pacific Securities (USA broker ) - Investerra (broker division of White Pacific Securities, USA) - US Clearing ( Depository, USA) - CCS ( Depository Computer Clearing Services, USA) Inter PID Financial Services Ltd. performance markets NYSE (USA) LSE UK (London Stock Exchange) Xetra (Germany) Swiss Exchange (Switzerland )
Clients Russia USA Europe Intrast Ltd Moscow, Computer Clearing Services Glendale, CA, USA Interactive Brokers LLC Greenwich, CT, USA MICEX RTS NYSE NASDAQ AMEX LSE (UK) XETRA (Germany) SE (Switzerland) International Personal Investment Dealing Countries Brokers (Executions ). Clearings U.S. Clearing New York, NY, White Pacific Securities, Inc. San Francisco, CA, USA Intrast Ltd Moscow, Russia Interactive Brokers LLC Greenwich, CT, USA Markets Inter PID Financial Services Ltd. Target of Inter PID Financial Services Ltd. performance
The following software is used Clients Inter PID Countries Russia USA Europe Software for access to markets Net Investor (Direct access) InstaQuote v.6.3 (Direct access) CCS-Traderv.1.0 (Web-based access) IB Trader WorkStation B.814.2 (Direct access) Markets MICEX RTS NYSE NASDAQ AMEX LSE (UK) XETRA (Germany) SE ( Switzerland )
Clients accounts and Tax Services Control scheme Bank of Moscow (Russia) Alpha Bank Cyprus & Greece Intrast (Russia) Ministry of Tax Services (Russia) Inter PID Financial Services Ministry of Finance Income Tax Service (Cyprus) All client accounts opened with Alpha Bank being under control of Russian/Cyprus tax services
Performance control system INTRAST Inter PID ASMK (founder) Russian SEC CB Russia CySEC CB Cyprus <ul><li>In Russia: </li></ul><ul><ul><li>ASMK (asset management company as Intrast founder) </li></ul></ul><ul><ul><li>Central Bank of Russia </li></ul></ul><ul><ul><li>Russian SEC </li></ul></ul><ul><ul><li>Special tax inspection (for brokers) </li></ul></ul><ul><ul><li>National Association of Stock Exchange Dealers </li></ul></ul><ul><ul><li>Professional Association of Registrars, Transfer Agents and Depositories </li></ul></ul><ul><ul><li>Money Laundering Committee </li></ul></ul><ul><li>In Cyprus Inter PID is under control of: </li></ul><ul><ul><li>CySec </li></ul></ul><ul><ul><li>Central Bank of Cyprus </li></ul></ul><ul><ul><li>Money Laundering Committee/Alpha Bank </li></ul></ul><ul><ul><li>Ministry of Finance department of Inland revenue Income Tax Office </li></ul></ul>
Advantages of Inter PID Financial Services Ltd. Officially registered at the Russia Ministry of Justice in 2001, which permits - to manage clients’ assets on foreign capital markets - to place the funds on the accounts legally opened with foreign brokers - to provide legal broker services on foreign markets for small private Russian investors - to settle disputes within the Russian legislation system - almost 24-hours performance. - 11-year experienced reliable INTRAST (parent company) having 100% in Inter PID
Financial results in 2002-2003 <ul><li>Starting period of operations used to develop proper order of functioning: </li></ul><ul><li>- to choose brokers to perform on US and European capital markets </li></ul><ul><li>- to attract Russian/foreign clients </li></ul><ul><li>- to develop legal settlement schemes for Russian/foreign clients </li></ul><ul><li>to set legal order of functioning in line with the Cyprus legislation in force </li></ul><ul><li>$10mln were raised on the own asset management, mainly. </li></ul><ul><li>2003 end the share capital raised to 150.000 CYP to meet the CySEC demands </li></ul>
Clients servicing scheme Inter PID Financial Services Ltd. operations on US/European markets (2003) Transactions: 974. Yield: 20.1 % ann. Portfolio value movement vs. Buy&Hold on SP500 index: The short term operations permit to generate the profit on the uptrend within the 3-12 months period. Short term operations are used to even fluctuations of the portfolio yield curve. It provides to reach the Buy&Hold-close yield at the back of the less well- pronounced fluctuations of the account.
Clients servicing scheme In the trust management sphere Inter PID is ready to offer the decision-making on the allocation of assets aimed to reach profits but with respect to the risk of investments which can be appraised by the company. The company can place the money of the client at the investment fund or settle individual trust management contract providing flexible strategy and prompt reaction to the market situation. Thus, to meet the demands of the long-term investor it will permit to save his capital and cover loses provoked by stock investments. For short term investors the strategy based upon the blue chips movement can be used to execute the high-yielding and risky short- term transactions.
Money laundering rules (Russian/Cyprus) observed Money laundering rules set by the Cyprus (Jan. 2000) and Russia legislation (Aug. 2001) are observed. To prevent money laundering and guard the company the following procedures used: - customer identification - record keeping in relation to customer’s identity - internal reporting to competent person appointed - internal control for forestalling and preventing money laundering - measures for making employees aware of the above procedures - training of employees in the recognition and handling of transactions suspected with money laundering.
Prospected financial results Income statement projection (CYP) Item 2004 year 2005 year 2006 year Sales revenues 22,055.70 43,581.04 64,704.67 Net sales 22,055.70 43,581.04 64,704.67 Gross profit 22,055.70 43,581.04 64,704.67 Administrative expenses 6,381.82 6,360.50 6,143.58 Production expenses 12,518.18 12,476.37 12,050.87 Marketing expenses 245.45 244.63 236.29 Salary of administrative personnel 5,823.07 5,838.58 5,909.06 Salary of production personnel 3,235.04 3,243.66 3,282.81 Total operating expenses 28,203.56 28,163.75 27,622.62 Other revenues 23,740.00 21,240.00 25,200.00 Losses from prior periods Profit before tax 17,592.15 36,657.29 62,282.06 Effect of operating with foreign currency -18.77 -20.24 -29.35 Taxable profit 17,573.37 36,637.05 62,252.71 Tax on profit 820.68 2,017.34 6,847.80 Net profit 16,752.70 34,619.71 55,404.91
BOD Directors - active members of the performance Weekly contacts on issues; consideration of main issues at the BOD sittings Communication with Russia-based office maintained either by telephone, fax, email or on-site visit Klokov Evgueni – executive director Andreas Zenophontos - non executive director Savvas Shiatis - non executive director Christos Meraclis - non executive director <ul><li>BOD approves: </li></ul><ul><ul><li>enterprising objectives of company </li></ul></ul><ul><ul><li>general policy of company </li></ul></ul><ul><ul><li>investment policy of company </li></ul></ul><ul><ul><li>strategic direction of company </li></ul></ul><ul><ul><li>annual enterprising plan </li></ul></ul>
BOD Duties/responsibilities of directors Investment Committee (three-member board) is aimed - to shape investment choices - to determine pricing policy - to set frequency of customers briefing - to determine markets and financial instruments - Every quarter to conduct BOD sitting on quarterly management accounts - Once every six months to conduct BOD sitting to review current financial results - Annually BOD to be held to review yearly performance and financial statements
Structure General managers are to direct and supervise all operations to attract customers to preside regular meetings of the company to provide general supervision of all work of company to supervise IT systems manager to supervise accounting department to supervise human resources Internal auditor is obliged to supervise personnel to supervise operations to locate deviations from standard procedures to take appropriate measures to prevent errors to prevent any criminal activities to assess internal audit mechanisms to receive information considered as concerning money laundering to provide advise and guidance to employees on money laundering matters
Fund management department functions to follow up and study conditions of purchases to evaluate offered investment products and services to contact with customer to analyze investors profile to examine investment opportunities to formulate written proposals on investment portfolio of client to control portfolios of customers and planning of investments Structure Corporate services department obliged to provide advisory services on investments in enterprises to undertake a project to develop the work to brief the customer on the course of work
Verification of orders executed department must check transmitted orders on daily basis inform the brokerage firm, customer and internal auditor on errors Structure Briefing of customers department to provide convenient and valid briefing on transactions to undertake monthly analytic written briefing of customers on transactions
Customer Services Department is obliged to complete the form on the customer to open a trading account to compete the form “Know-your-client” to complete and sign conventions of customer with the company Notify the customer of general information and terms of collaboration to brief the customer for the operation of Company Register customer in the computer system to brief Internal Auditor of any problem and complaints of customer. Structure
Administration and secretarial to guide and monitor the finance and operations department to receive customers to provide smooth and order operation of telephone center to follow correspondence Structure Finance and operations department to provide correct practice of general rules of accountancy to follow agreements of bank accounts to observe payment of taxes, submission of statements, to compliance to tax obligations to follow legislation in force to prepare and submit reports to the authorities to develop annual general draft audit of the economic situation of the company to publish results of company performance end of each month
Credit and loans department includes Structure Risk management department to identify the risks to analyze the risks to administer risks to seek credit approval before transacting business to assist in obtaining the proper documents to advise of any change in the position of the client to monitor all transactions to evaluate and provide recommendations for the new product to evaluate and approve clients within authorized approval levels to keep BOD informed of individual credit risks or the portfolio to build and maintain measurement models for credit and market risk transactions
Analysis and Reception and Transmission of orders departments are outsourced to INTRAST Finance Services Company. Structure Analysis Department should Follow up and study conditions of purchases Evaluate offered investment products and services Contact with customer to analyze investors profile Examine investment opportunities Formulate written proposals on investment portfolio of client Control portfolios of customers and planning of investments Reception/transmission of orders department The company will receive and transmit orders to - Intrast Ltd. (Financial Company licenses stockbroker in Russia) - 1st Discount Brokerage Execution (Brokerage House in the US market)
IT systems manager Structure to supervise and guarantee effective operation of electronic systems to evaluate effectiveness of existing electronic systems to upgrade software systems to control and confirm correctness of new electronic registration to check if all backups been taken properly, check connections between servers to provide control over the users to make two copies of the back ups
The following software is used: Structure <ul><li>Operation systems: </li></ul><ul><li>Microsoft: Windows 98, 2000, XP </li></ul><ul><li>FreeBSD </li></ul><ul><li>Software: </li></ul><ul><li>Microsoft Office: 2000, XP </li></ul><ul><li>Microsoft SQL Server </li></ul><ul><li>1C:Predpriyatie - the most important (1C:Enterprise) system of company automation products. </li></ul><ul><li>METASTOCK PROFESSIONAL - implementing state-of-the-art technology </li></ul><ul><li>SAGE Accounting Software </li></ul><ul><li>Trader Work Station as proprietary software of interactive brokers </li></ul><ul><li>Back-up devices ( HP DLT) </li></ul>