The FINANCIAL — At the international RSM conference, Georgian audit, advisory and consulting company Capto Group was recognized as the fastest-growing of the network’s members, with an annual income of up to 10 million USD – the increase in its revenues amounted to 109% in 2013.
The FINANCIAL — At the international RSM conference, Georgian audit, advisory and consulting company Capto Group was recognized as the fastest-growing of the network’s members, with an annual income of up to 10 million USD – the increase in its revenues amounted to 109% in 2013. “We sharply increased our client portfolio. We have new clients from construction, the energy sector, distribution and industrial fields,” Giorgi Kvinikadze, CEO at Capto Group, member of RSM, told The FINANCIAL.
Accounting and consulting company Capto Group was established in 2008.
“We had an ambitious goal from the very beginning. 2008 was quite a problematic year for the world and Georgia in particular. Nevertheless, our founding principle was different. We invested quite solid capital in the company and gathered a fairly large group.
The FINANCIAL — At the international RSM conference, Georgian audit, advisory and consulting company Capto Group was recognized as the fastest-growing of the network’s members, with an annual income of up to 10 million USD – the increase in its revenues amounted to 109% in 2013. “We sharply increased our client portfolio. We have new clients from construction, the energy sector, distribution and industrial fields,” Giorgi Kvinikadze, CEO at Capto Group, member of RSM, told The FINANCIAL.
The lack of work after opening permitted us to focus on staff development and the establishment of our approaches and principles. This enhanced our mobility and readiness to meet every challenge after becoming involved in more active work. All this quickly yielded results and in 2009 we were ranked as one of the leading auditing firms. This rate further increased in 2010. To become an international brand group member was one of our ambitious plans. Two years ago we became a member of RSM. It is the 7th largest worldwide network of independent audit, tax and advisory firms represented in 106 countries with 700 offices and 32 500 professionals. RSM’s membership enabled us to increase our turnover by 109% in 2012 in comparison with the previous year. Its name permits us to cooperate with big businesses and for our work to be accepted by any financial or investment organization.
Our visit to Amsterdam for the RSM World Conference was one of our company’s crowning successes. Capto Group became the winner of RSM’s annual competition as a result of it having the fastest growth. The prize was unexpected. This recognition encourages us to carry out our work with even greater activity.
Q. Which sectors are the majority of your clients from?
A. We have over 80 permanent clients. Capto Group has extensive experience in different business sectors including: banking, energy, insurance, microfinance, trading, manufacturing, construction, food and drinks manufacturing sector and etc. It is interesting to cooperate with them as we are thus in touch with our country’s economic pulse. Georgia has experienced great shifts during the past ten years, which have been accompanied by some mistakes. With the elections and other political upheavals Georgia once again proved that it is a member of the civilized world. However, economic development has slowed down but nevertheless I think that we are going in the right direction. Step by step the country is moving forward on the right path.
Q. What impact has the change in government had on audit companies?
A. The political changes did not have an impact on audit companies’ business. Every businessman, first and foremost, is an optimist. Businessmen are making decisions in a long-term perspective. We always try not to intervene in political bacchanalias. Sometimes, in order to support a country’s development in the right way, we offer to give advice to the Government.
Q. Many foreign experts have criticized the Georgian Government for its frequent changes in legislation. What is your position regarding this?
A. The legislation in Georgia does indeed change very frequently. It is difficult and complex for business. However, the second issue is that if we want the country to develop, some steps need to be taken quickly.
I would advise the Government to implement reforms more quickly, so that the transition period will be over soon. However, frequent changes are a challenge for audit companies.
The legislation is often very vague.
We are able to communicate with legislators to clarify some issues and offer our ideas. During our meeting with the Chairman of the Georgian Parliament David Usupashvili, he gave us a promise that the Business Association, of which we are a member, will participate in a discussion of the legislation. This is a very interesting initiative by the Government.
Q. In your previous interview you told The FINANCIAL that the main advantage of Georgia in comparison with its neighbour countries is its aim to implement European standards. Meanwhile since the October 2012 government changes concerns have been aired regarding a change of political orientation. Would you agree with that?
A. I would not agree that since October 2012 Georgia started changing its political orientation. The Government is not able to change the country’s political or economic vector. It is down to individual people’s psychology. Traditions and mentality should always be taken into account. To pursue European civilization has always been the choice of the Georgian people and nothing can change that. Any person who has visited one of our neighbour countries as well as a European state even once already knows what direction they should choose.
The choice between Russia and Europe is the same as the choice between bad and good. For example, in terms of our direction, western society has a lot of interesting experiences. Meanwhile the second vector is an alternative to corruption, bribery etc. These two cannot be compared with each other. Vector change is more a politician’s statement than a reality.
Every day I meet businesspeople and they are of the same opinion. The current government is coming from the business sector itself so only takes steps that will benefit the country’s economy.
Q. What distinguishes Capto Group from its competitors?
A. A strong entrepreneurial spirit, up-to-date and innovative approach, flexibility, service quality and client-oriented services are the core values of Capto Group.
Gathering outstanding and professional workers together has always been my main goal. Global network’s international expertise and expert team members with in-depth- knowledge of local constitution and code safeguards our client’s trust and loyalty.
With such specialists my company will always be in demand. Over the past ten years every taxpayer has realized that they are ready to cover taxes honestly.
Due to the numerous changes in legislation occurring in such a short period of time businesses cannot follow them individually. Our team is constantly involved in these changes, which enables us to be in demand on the market.
Knowledge is what Georgia lacks the most. We are facing a real shortage of professional staff. We are actively cooperating with universities in this respect, and allowing students to undergo professional trainings at our company and thereby gain useful skills.
I should highlight that Capto Group is a member firm of RSM that was the first global network of audit companies establishing the common audit methodology in member companies since 1993. RSM, as the founding member of Forum of Firms (FOF) constantly promotes auditing methodologies and transfers this experience to its member firms. RSM’s global network experience enables Capto Group to respond to any types of large scale, both local and international projects successfully.
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“2014 will be better than 2013. To carry out reforms quickly is my only advice to the Government. All investors have been shown huge support and a good environment in Georgia under the previous government as well as under the current one. There are no inside risks for them.”
“Before, the fate of the economy was decided by several officials. Now we have a national economy. But this does not mean that there should not be decision-makers at the Government. When a foreign investor decides to invest a huge amount he cannot afford to wait for a long time. The decision-makers are hampering activity today. They do exist, but they lack the practical experience of working at that post.”
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“The opening of the Russian market to Georgian exporters is not equal to a change of political orientation. Western civilization is unconditional and no one wishes to return to the middle ages. I do agree that the current vector of the Government to the European civilization without loosing Russian market is very important for Georgia.”
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