republic of latvia nexia annual conference, delhi, 14 -19 october 2008

Republic of LatviaRepublic of LatviaNexia Annual Conference, Delhi, 14 -19 October 2008Nexia Annual Conference, Delhi, 14 -19 October 2008

The presentation is made by

Dr.oec., asst.prof. Andrejs Ponomarjovs –partner of AUDIT ADVICE

Mg.iur. Jelena Rakova – deputy director of AUDIT ADVICE

The Baltic Sea

REPUBLIC OF LATVIA

The territory: 64 589 km2Capital city: RigaPopulation of Latvia:2,400,000 Population in Riga:800,000

Riga – the capital city of Latvia

Ethnic Composition: 59% Latvian, 28,5% Russian, 3,8% Belarusian, 2,5% Ukrainian, 2,4% Polish, 1,4% Lithuanian, 0,4% Jewish, 2% other nationalities

Language •Latvian (official); Russian, English and

German are also widely spoken

Political system: •Republic, parliamentary democracy

Parliament:•The Saeima has the right to legislate, in accordance

with the procedures, and to the extent, provided for by the Constitution.

Head of State: •President elected by the parliament

for a four-year term office and represents the State in international relations.

Head of Government • The Prime Minister determines

the general direction of Government’s activities and ensures coordinated and purposeful work of the Cabinet of Ministers. The Prime Minister leads the work of the Cabinet of Ministers and is responsible before the Saeima.

Gross domestic product (GDP) in 2007

(billions of EUR)•10,38

Inflation in 2007•8,5 %

Export (billions of EUR)•10,7 %

Import (billions of EUR)•16,2 %

Key industries:• transit and logistics;•fine chemicals and

pharmaceuticals;•agriculture and food processing;•wood industry;•mechanical engineering and

metalworking;• textile and clothing.

Background for investors:• Business friendly • Low bureaucratic obstacles • Transparent legal and judicial

system • Business without boarders - EU • First and last EU board with

Russia • Fastest growing airport in Europe

Background for investors:• Integrated and well

developed transport infrastructure

•3 non-freezing ports •Low taxes: Corporate income

tax 15%, personal income tax 25%

Audit and consulting market (Latvia)• Audit services: domination of BIG4 –

72%. Active sworn auditors about 162 (in Esthonia – 350). Active audit firms about 139.

• Consulting – as covering services.• Accounting services – numerous small

accounting firms.• Legal services• Tax services: consulting, litigations etc.

AUDIT ADVICE •Founded in 2006; (partners

work in audit field since 1992)•Situated in the centre of Riga

the capial city of Latvia;•Net turnover in year 2007 EUR

60 000; in year 2008 EUR 150 000.

AUDIT ADVICE

•2 partners: •8 employees;•Foreing languages speaking

by the staff: Russian, English, German

AUDIT ADVICE

Range of services•Auditing: independent auditing

services and assurance engagements;Requirements for obligatory auditing:

• Turnover in financial year 711 000 EUR;

• Amount of balance sheet 355 000 EUR;• Average staff 50 people.

AUDIT ADVICE

Range of services• Internal audit: consultancy and

assistance in developing internal control systems;

•Accounting: complex accounting services;

•Taxes: consultancy, tax planning, legal services on tax issues;

AUDIT ADVICE

Range of services•Wide range of legal services:

registration of companies, drafting commercial contacts, legal assistance in court proceedings

•Other financial services: analytical reports, due diligence, evaluation of debt commitments (special license).

What we are waiting from Nexia International•Globally recognised brand•Options to involve experts from network•Methodology, trainings, possibilities to

share the experience in auditing, accountancy, tax etc.

•Secondments for employees

What we can bring to Nexia

• Good standing firm recognised in region

• Competence in local laws, tax issues, accountancy, auditing

• Clients referring to other members

The future development strategy of our company within the

Nexia International

•Widening the range of services;•Extensive marketing activities

to make known Nexia name in Latvia;

•Activities to attract new clients;

The future development strategy of our company

within the Nexia International

• Staff policy development and implementation;

• Orientation toward financial growth and administrative enlargement.

Thank you for your kindly attention

AUDIT ADVICE • Kr.Valdemara 18-1B, Riga, Latvia

LV-1010• Tel.+371 29287030, +371

26542354• E-mail: lean@balticom.lv