Interview of “Grant Thornton Amyot” Shareholder Director Gagik Gyulbudaghyan to Mediamax Agency and Banks.am portal

- On February 1, you headed “Grant Thornton Amyot”. Do you plan any corrections in the activity of the company?

- For over 10 years the company has been successfully functioning in Armenia and our task is to maintain high speeds of development and leadership in Armenian market of audit and consulting services.

In 2009, 35% of the entire market of audit and consulting services fell on the share of “Grant Thornton Amyot”. In 2010 we plan to secure realization at the sum of 1.5bln AMD.

According to the strategy, approved in 2010, Grant Thornton International intends to maintain the position of one of the best auditor and consulting companies in the world, as well as mark new achievements. Grant Thornton International is not the largest company in the sphere, but our approaches differ from the work style of many others, including the companies of the “Big Four” (PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG). We position ourselves as a closer partner for our customers. We carry out deeper study of their issues and spend quite significant time to meet their demands.

By the way, we are the largest auditor and consulting company in Armenia and the South Caucasus.

I shall note that early this year “Grant Thornton Amyot” registered “Grant Thornton Legal & Tax” Company, which will deal with legal, tax and accounting consulting. This subsidiary company is established aiming at rendering more versatile and specialized services in legal, accounting and tax spheres.

- Recently we learnt about the launch of activity of “Grant Thornton Amyot” another subsidiary company in Georgia. What is the decision of the company to open a representation in Tbilisi conditioned by?

- In Georgia, “Grant Thornton Amyot” has been providing services since 1999. Taking into account the fact that we have permanent customers in this market, in 2005 we decided to register our representative office there. This year we expanded the frameworks of our activity in the Georgian market and entered this new stage of development with a new office in Tbilisi and a new expanded management staff.

Our customers in Georgia are organizations, such as the “Millennium Challenge - Georgia”, U.S. Agency for International Development (USAID), Georgian offices of UN and the World Bank, “Georgian Railroads”, Municipal Development Fund of Georgia, Georgian Wines and Spirits, Castel Sakartvelo companies and others.

Thus, the Georgian office is the first, which is considered a subsidiary enterprise of the Armenian one abroad. Besides Georgian, we actively work also in Tajikistan and Kyrgyzstan. At present, we are elaborating a business plan on opening representative offices in the mentioned countries.

Opening of offices abroad is conditioned by constant customers there: in Tajikistan, we service a few banks and other organizations. In Kyrgyzstan, we held the audit of the Central Bank last year and this year we also participate in the tender. In order to develop the services market on the spot, one should have a local staff and local shareholders. 

- How integrated will the work of “Grant Thornton Amyot” offices in Armenia and abroad be?

- At the initial stage, management will be fully carried out by us. Then our participation will gradually reduce simultaneously with the increase of professional knowledge and skills of local employees.

- To what extent did competition in the market of auditor services in Armenia toughen after approval of the changes to the law on “Accounting”, according to which companies with proceeds of 1bln AMD and more will undergo compulsory audit following the results of 2009 fiscal year?

- First of all I should note that these legislative changes were to the point, since they contribute to reduction of shadow economy volumes. At that, the role and volume of auditor organizations’ work increases.

The quality of audit now becomes extremely importance, since the mentioned legislative change will become meaningless, if a company with proceeds of over 1bln AMD turns for audit to a certain private auditor with insufficient experience and resources or to a “one-day” organization, which, quite likely, will be established especially to service that very company. I believe that the government realizes this and carries out work on “cleaning” the field of auditor activity.

- Are there any results of that “cleaning process”?

- From the beginning of the year, 11-12 auditor licenses were recalled. At that, 15 new auditor companies were registered. This issue requires operative actions from the part of the Ministry of Finance.

Concerning the auditor organizations, they need to mobilize efforts, since they are to manage to carry out a quite large-scale volume of work in a short time.

As a result of legislative changes, we also have got a few new customers, and the army of our constant partners has been maintained. We also work over expanding resources now.

- Next year, companies, which possess assets of 1bln AMD, will pass compulsory audit following the results of 2010. Among them there are practically inactive subjects. What should these idle companies, which “sit on” assets, do? 

- Indeed, many organizations in Armenia harm the country, having quite expensive, but at the same time frozen property. If these enterprises intend to continue their existence, they should elaborate business plans and attract financial resources.

- “Grant Thornton Amyot” forecasted process of mergers in the banking system of the country. The first deal has already taken place. Should one expect continuation of this process?

- Merger of “Ameriabank” and “Cascade Bank” is a big and significant deal for Armenia. The mergers will continue, however one should take into account the fact that this is a quite complex process. Any merger is a “marriage” of two business cultures, and mutual trust of the merging structures plays an extremely important role here. Consolidation in any sphere leads to faster growth and optimization of expenses.