By Archil Kublashvili archil@ingb.

ge tel: +995 77 138889

Currently : Deputy General Manager Georgian Public Broadcaster aka Channel 1, 2, 3 and Two FM Radio Stations Currently: Founder and General manager of INGB Group Currently: Founder and GM of Alutech LLC Formerly Employed by: General Electric Europe Heidelberg Cement TESA Archtrade

Sometime in the distant past worked for: GBDC Caucasia Parliament of Georgia Burjanadze & Democrats Political party ( not very proud of it)
Areas of Expertise: Pretty much everything that is related to earning money and wisely spending it.

Understanding of the basics of financial management Understanding the meaning of regulatory frame Understanding of the Information flow Understanding of Cost Structure Understanding of Product Value structure Understanding of the Income and profit structure Understanding of the capital structure Understanding the language of accountants Understanding of what you need for the financial report Understanding nature and content of the financial reports Understand the behaviors behind positions Importance of planning and proper execution

 Brain Numbing Formulas and ridiculous calculations on theoretical matters. Physics, astrophysics, high mathematics and stuff that can not be calculated on simple calculator. Easy grades Free Schedule Boring lectures

1. Write small essay describing your opinion on Georgian business environment. its strength and weaknesses. - Best 3 will be awarded 5 additional points out of 100 and will be invited to express their ideas at Radio show My business at FM 102.4 (Radio 1 GPB) 2. Help with business opportunity Bakery 3. Help with business opportunity Radio 2 Youth Radio

Both business opportunities will award 10points to students, if done in theory and in case if executed in reality, financing and 20 % of shares will be awarded.

Regular assignments Individual financial management projects Group financial management projects Group consultancy project Very interesting guest speakers Killer awesome business models Very demanding brainstorming sessions Tons of Caucasus and world based financial management examples

In terms of unfamiliar and unrelated industry

EFFECTIVE FINANCIAL
8. Matching Requirement s & In-kind Contributions

MANAGEMENT
5. Efficient Accounting System 6. Budget Controls

7. Time & Activity Documentation

Start riding a cycle Work with team but always remember that you are alone Operate more based on your logic Be careful while making assumptions because it might lead to Put the controls in place Ask questions and ask reasons Keep others informed and avoid informing the outsiders Take your organization as a living organism not a structure Be prepared Not able to do so ? start asking the reasons again !

 What is a legal frame ? In which cases does the legal frame apply to us and when it does not Is there an insurance against the risks ? Is there a way to avoid the risk ? What is ethical and what is not ? How badly can we screw up ? Seek the exits before you enter ! Minute Test Homework

GE Lexan Sf&S and Advanced Materials War Room Heidelberg Cement Strategy Georgia TNS Global Caucasian Challenge Archtrade Changing the Style Acquisition of Romanian Steel Mill Georgian Public Broadcaster Way to Be

Mc Donalds Annual Report Microsoft Annual Report Internet Finance Analyses (Yahoo, MSN)

 Personal Essay Role of Financial Management ? Making of Financial Calendar Defining the structure and information flow for Sample LLC Defining and Designing Internal Reports Mapping Of Chart of Accounts ( Based on structure) Making P&L Making BL Making CF Making Investor Report Valuation Challenge

 Definitely makes you smarter You start seeing and understanding things that you would not have understood otherwise Good knowledge of FM and good FM skills is definitely valuable on any managerial position, including marketing, sales, general management, executive management and other .
Money that you manage does not belong to you. Dont expect to be coolest and most popular or appreciated employee (except the day when you pay salaries) Marketing is in most cases gets paid higher wage than FM You are not forgiven very often

Session 1 Constitution Enterprise Law Tax Law Session 2 Budget Code Law of State Purchasing Labor Code Civilian Code Criminal Law Other (Unwritten but still applicable sucks right??)

 Is creating regulatory environment for you in three main cases: - If you are sitting at home and doing nothing - If you are sitting at home and thinking of doing something - If you are not doing something and neither are you sitting somewhere - If you are sitting too high and you need reasons to clarify to others why are you sitting there
As to ordinary financial manager this is not your concern, except cases if you are sitting too high and you are also a financial manager which is highly doubtful!

Deals with : Company Establishment Merger, Split, Acquisition and Take overs Process of enterprise management Proper corporate governance General concepts All that should or should not be defined by other laws

 Company Statement - Georgian law requires that all the companies that operate on Georgian territory should have written guideline that defines the basic principles of company's operations. Largest part of the company statement pillars is also defined very clearly by the tax law, especially the pillars that directly address Accountancy, taxes or dividend payout policy. Pillar, that addresses the rights and responsibilities of the individual shareholders, voting power of them is not defined by law and should be agreed by shareholders. Board Meeting Are held in order to resolve urgent matters, announce share issue, proceed with company closing, merger or acquisitions, but some of these functions could be proxy to MGMT -Minute Test Review Company Statement and Board Minutes

http://www.youtube.com/watch?v=X2N_V2dfS1U&feature=channel http://www.youtube.com/watch?v=QCVxQ_3Ejkg&feature=related http://www.youtube.com/watch?v=_nOBa0z1BHk

General Rules: Informed Decision Should be made by majority of shareholders Decision should be made using the Minutes of general assembly or board minutes. Both documents either should be signed in a presence of certified notary or in a presence of notary by person holding proxy from shareholders. Most countries accept written signed and sealed proxies but in case of Georgia certified power of attorney should be presented. Foreign partners, or participants of the deal should present the translated version of their passport in a native language of the country. All the documents issued outside of the Deal Country should be legalized or if the country is participant of the

 Company has been crated 3 years ago. And break even point has not been reached. Shares of the Company is Spitted between 4 partners: A=40%, B=20%, C=20% D=20%. CEO holds 40% of the Stock. On the board meeting that has been arranged after 3 years of operations 3 partners vote to increase equity in the company by 100% and 4 th partner is not present. New distribution of Shares is A=40%, B=30%, C=20% D=10%. Partner Which was not present, engages in Shareholder conflict motivated by deceiving nature of CEO and Q1-refuses to be initial responseshare issue. What should proceed with from shareholders to rebel partner

Q2 - Role Play the board meeting Q3 Prepare statement where you describe what procedures should be followed to finalize share issue.

 Basically bunch of dos and donts but at the end all telling you that even if you follow the rules there is no guarantee of success There is no guarantee to be secure That you are solely responsible for almost all the decisions that you make and the results that you get Results of Internal: could be: actions
Profit Loss Conflict Market entre Market exit Growth/ reduction of market share You becoming king of the world Other Related External:

Merger Acquisition Take over Conflict Gods Will Lawsuit Scandal Other Related

Internal: Shareholders Employees Suppliers Distributors Subsidiaries Clients Yourself Other Related

External: Government Regulating Authority NGOs Media/ Press International Organizations

 Basically another set of dos and donts which give you a guideline of how to deal with various stakeholders.

Budget Code Law of State Purchasing Labor Code Civilian Code Criminal Law Other (Unwritten but still applicable sucks right??)

What do you like about course What you dont like about course What do you want to see more (or less)? Expectations so far?

Tax Law: VAT = 18% Unless Defined Otherwise Gross=Net*1.18 Back Tax (Reverse VAT) = Same as VAT but several rules apply Non Resident Tax = 4% ; 10%; from 2011=10%, 15% Gross=Net/0.96 (if 4%) Gross= Net/0.9 (if 10%) Income Tax = 20% (differs from country to country, sometimes social insurance and employers tax is added to it). Gross=Net/0.8 Profit Tax = 15%, previously 20% EBT*15%= Net Profit Dividend Tax = 10 % Might Change from 2011 Double Taxation Why, why, why. Corporate Tax = Profit tax= Capital tax

Company had 10 Transactions during 2010, each amounting 1000 Gel, from Which 3 Transactions where made by Polish Embassy, and 1 from EBRD and 2 From Foreign Commercial Clients. From received amount 1000 Was paid to Non resident for telecommunication service. 1000 was spent to send CEO for training in Netherlands (travel and living covered by CEO himself). 1000 Was paid to foreign auditors for their valuation service in Georgia. 2000 Gross salaries where paid. 1000 Was paid to local supplier, and another 200 to Non Vat applicable supplier, 200 to Driver (not employed by Company)

 Start reading the tax code of Georgia- comes in two volumes (2010 and 2011) of thrilling literature .. Homework 2 Please write 1 pg essay describing role of the taxes in economic development of the country what should be entrepreneurs moral code towards taxes should or should not government regulate business pros and cons - why do you think finance manager should have knowledge in tax regulations?