Finances of enterprises

CONTENTS 
INTRODUCTION ……………………………………………………………………3 
1.FINANCIAL RELATIONSHIPS OF THE ENTERPRISE………………………...4

2. FEATURES OF FINANCE OF THE ENTERPRISE DIFFERENT INSTITUTIONAL FORMS OF ECONOMIC  ………………………………………7

3. CASH FUNDS OF THE ENTERPRISE …………………………………………10

4. ANALYSIS OF FINANCIAL PERFORMANCE BASED ON THE BALANCE………………………………………………………………………......19  
CONCLUSION……………………………………………………………………...24 
REFERENCES ……………………………………………………………………...25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

INTRODUCTION

     Finance of companies is leading players in the reproduction process and the formation of their own funds and centralized financial resources of the state.

     In the country's reforms have led to an increase in flows and socio-economic relations, enhancing the role of distributive relations. There were and continue to develop non-state sector, modern banking system, markets for goods, services and capital. Companies have moved to the widespread use of market-based regulation of their business activities.

     The main objective of business enterprises has become a profit, which serves as an important source of capital increment and a prerequisite, growth, enterprise and its owners. This goal can only be achieved at the optimal organization of finance for companies, allowing not only to strengthen their financial position and competitiveness, but also to ensure financial stability in the country.

     That is the significance of corporate finance and served as a reason for choosing the theme of the work presented. 
 
 
 
 
 
 
 
 
 
 
 
 
 

FINANCIAL RELATIONSHIP OF THE ENTERPRISE

   The basis of market relations is money. They link the interests of the seller and buyer. The buyer pays money to the seller. Counting and then sell the results of their work and get paid for it. Some of them he gave the bank to repay the loan and the budgets of different levels of taxes and the rest is used for own needs. Market relations - is primarily a financial relationship, when market participants suggest making money and using them for different purposes, creating their own respective monetary funds.

   Finance of enterprise is economic, monetary relations. Resulting from the movement of money and generated on this basis, cash flows associated with the operation created in the enterprises of funds.

   Finance of enterprise are the foundation of the financial system of the state, as enterprises are the main link in the national economic complex. Status of corporate finance has an impact on national and regional security of funds of financial resources, dependence is a straight line, the stronger and more stable financial situation of enterprises, the more assured of national and regional monetary funds, to more fully meet the social, cultural needs, etc.

   Finance is an objective economic category of the market economy. Without the proper functioning of the financial mechanism of the market economy cannot work. Experience in recent years of economic reform in Russia has confirmed this position. The task of government is to assess the role of financial relations in a particular period of development. That is why in a market economy must learn to combine the independence of enterprises and regions of the state regulation of economy and finance.

   Financial relationships between the enterprises can be grouped into four groups:

• with other companies and organizations;
• within the enterprise;
• within the associations of enterprises, from the parent organization, within the financial-industrial groups and holding;
• the financial and credit system - budget and extra budgetary funds, banks, insurance, stock exchanges, various funds.

   Financial relationships with other companies and organizations include the relationship with suppliers, buyers, construction and transportation organizations, post and telegraph, foreign trade and other organizations, Customs, enterprises, organizations and companies from foreign countries. This is the largest in terms of cash payments to the group. Relationships with each other enterprises connected with the realization of finished products and the acquisition of property for economic activity. The role of this group of financial relationships is primary, since it is in the sphere of material production, creating the national income; companies receive revenue from product sales and profits. The organization of these relations has a direct impact on the results of production activities.

   Financial relations within the company include the relationship between the branches, shops, departments, teams, etc., relations with the workers and employees. The relationships between company divisions are associated with payment for work and services, distribution of profits, working capital, etc. Their role is to establish specific incentives, and financial responsibility for a qualitative fulfillment of commitments.  Relations with workers and employees - is wages, bonuses, benefits, dividends, financial aid, as well as recovery of money damages, withholding of taxes. It is very important that employees receive units of exactly what they earn. Financial relationships within associations of companies fall into financial relationships with parent organizations of enterprises, relations within the financial and industrial groups and the relationship between the companies in the holding.

   Financial relations with the parent organizations of enterprises include the relationship on education and the use of centralized cash funds, which in conditions of market relations is an objective necessity. This is particularly true of investment financing, working capital, financing of imports, scientific research, including marketing. Intra reallocation of funds, usually on a recurrent basis is important and helps to optimize the resources of the enterprises.

   In the privatization of property, when in the hands of the state remains a significant part of the shares of privatized enterprises, plays an important role worldwide experience: in many countries, the largest proportion (90%) of funds from privatization comes into special funds to support enterprises to be privatized. 
Financial and industrial groups are generally in order to unite efforts in the direction of financial development and production support, to maximize financial results. There may be a centralized cash funds, and commercial loans to each other, and just financial assistance.

   Features consist of holding relationships that are built on an economic basis, when parent company owns controlling stakes in subsidiaries. The latter also allows for the strategic management of up-and-black enterprises. Consequently, financial relations within the holding involve a significant financial self-autonomy of its members within a single strategy.

   Relations with the financial and credit system are manifold. First of all, relations with the budgets of various levels and extra-budgetary funds associated with the transfer of taxes and deductions.

   Kazakh tax system is not perfect and does not contribute to the normal production activities. World experience shows that reducing high inflation is possible only through the support of production and development investment. To this should be directed primarily tax, as well as credit and customs policy. In particular, in many countries, a certain portion or the entire increase in production taxes are not levied. It is profitable enterprise, and government, as taxes on such businesses come in full, and a year later they increase dramatically.

   Relationship with an insurance element of the financial system consists of transfers of funds for social and health insurance and property insurance company. 
Financial relationships with companies like banks are based in part of the organization of non-cash payments and the receipt and repayment of short-and long-term loans. Organization of non-cash payments has a direct impact on the provision of financial enterprises. Credit is a source of working capital, expansion of production, its rhythm, improves product quality, and helps eliminate temporary financial difficulties of enterprises.

   Banks currently have a number of innovative services businesses: leasing, factoring, forfeiting, trust. At the same time may be an independent company specializing in the implementation of these functions.

   Currently in a relationship business with the banks there exists a number of problems. The practice of primitive non-cash payments: prepay, barter, cash,  major defaults. Credit is very expensive, so its share in the formation of the Working Capital funds of enterprises is very low (an average of no more than 10%). Long-term credit to finance investment is almost never used. Non-traditional banking services and have not been developed.

   Financial relationships with stock market ventures involve transactions in securities. 

2. FEATURES OF  FINANCE OF THE ENTERPRISE DIFFERENT INSTITUTIONAL FORMS OF ECONOMIC 

     Limited liability company - a society founded by one or several persons whose charter capital is divided into shares in amounts determined by the constituent documents. Participants in the limited liability company liable for its obligations and bear the risk of losses associated with the operations of the company within the value of their contributions, which is an important advantage compared with the full partnership.

     The charter capital of limited liability Company formed by contributions of members. The charter capital shall determine the minimum size of the property, ensuring the interests of its creditors.

     The charter capital of a limited liability company may be increased through additional contributions from members in accordance with Art. 26 Law of the Republic of Kazakhstan on 22 of April 1998 year N 220-1"Law On Limited Liability Companies."

     Profit a company is determined in general procedure. Distribution of profits to a limited liability company shall be in accordance with the law. First of all profits from the income tax payable and other payments to the budget. Further income is distributed in accordance with the procedures specified in the charter of the company, the industrial and social development. The remaining part is distributed among members of society in proportion to their equity stake, unless otherwise stipulated in the founding documents. In the event that the statute does not stipulate the allocation of profits remaining at the disposal of society, the decision on its allocation should be made an annual meeting of shareholders. Retained earnings is a source of capital reserves.

     Supplementary liability society is a society founded by one or several persons whose charter capital is divided into shares in amounts determined by the constituent documents. Its members are jointly and severally liable for the obligations of the subsidiary company of his property in the same for all multiples of the value of their contributions. The cost of deposits is determined by the constituent documents. In the event of bankruptcy of one of the members of his responsibility for the obligations of society is distributed among members in proportion to their share in registered capital. All matters relating to the distribution of profits, solved the same way as they are defined to a limited liability company.

     Joint Stock Company - Company, the authorized (share) capital is divided into a certain number of shares. Shareholders (members of joint stock company) is not responsible for the obligations of company and responsible to the value of their shares. Entitled to a share of ownership is confirmed by its shareholder's equity investments. Each holder of shares owned property company in accordance with the share of its shares in the total number of shares outstanding. In this sense, the company do not own the property. The legal status of joint-stock company is defined by the Civil Code and the Law of the Republic of Kazakhstan "Law On Joint Stock Companies."

     Distinguish between open and closed joint-stock companies.

     Open Joint Stock Company - a society whose members can sell their shares without the consent of other shareholders. Open Joint Stock Company may conduct a public subscription for the shares it issues and implement free market in the stock market. 
The authorized capital is formed by placing the common and preferred shares. Moreover, the proportion of preferred shares in the total share capital must not exceed 25%.

     The authorized capital of joint-stock company is directed to the formation of the productive assets of society.

     Company has the right to post bonds to potential investors, which, unlike the shares are issued for a specified period, their value must be repaid and interest paid. Bonds are in essence borrowed money and are usually sent for working capital. 
Profit Company is determined and taxed in the same manner as that for companies with limited liability, but further distribution of profits is different.

     The distribution of profits provide by the law for the reserve fund. Its value cannot be less than 10% and 25% of the paid up capital.

     Closed Joint Stock Company - company whose shares are distributed only among its founders. . It may not conduct an open subscription on their best price produced. Shareholders of Open Joint Stock Company have a prior right to purchase the shares sold by other shareholders.

     Production co-operative - a voluntary association of citizens on the basis of membership for the joint production or other economic activity, based on their personal labor or other participation and integration of property shares.

     The asset of the cooperative is divided into shares of its members in accordance with the charter of the cooperative. Production cooperative may make the indivisible funds at the expense of a certain part of the property if it is stipulated in the charter.

     Decision on formation of indivisible funds shall be taken unanimously by the membership. The charter should be defined targets of their use. 
By the time of registration of the cooperative each member must pay at least 10% of its shares, and the rest - within one year from the date of registration. 
Profit cooperative shall be distributed to the members in accordance with their labor participation, if the statute does not stipulate otherwise.

     Unitary Enterprise - a commercial organization, not endowed with ownership assigned to it by the owner property. Distinguish unitary enterprises on the right of business and operational management to the number of unitary enterprises are state and municipal enterprises.

     Unitary enterprise based on the right of business, created by the decision of the authorized state or municipal authority. Accordingly, the property of the unitary enterprise is in a state or municipal property. A unitary enterprise is liable for its obligations with all property belonging to him, but shall not be liable for the obligations of the owner of the property. In turn, the owner is not liable for the obligations of the enterprise. Controls Unitary Enterprise Manager, appointed by the owner or authorized owner of the body. Authorized share capital of a unitary enterprise shall not be less than the value defined in the law on state and municipal unitary enterprises. Statutory fund must be paid in full at the moment of state registration of a unitary enterprise. If the financial year the net assets of the business will be smaller than the authorized capital, the latter must be reduced accordingly. In case, if the authorized share capital will be less than required by law, the enterprise may be liquidated by a court.

     Formation and distribution of profits, the relationship with the budget of a unitary business conducted in the general procedure.

     Unitary enterprise based on the operational management (the federal government enterprise), created by the decision of the Government. His property is in the public domain. The company is responsible for all its obligations with all his possessions. The Russian Federation shall bear subsidiary liability for obligations of the state enterprise. The company has the right to dispose of their property only with the consent of the owner. State-owned enterprise has the right to sell products, unless otherwise provided by law. The order of distribution of income and profits are determined by the state.

3. CASH  FUNDS OF THE ENTERPRISE

     Most important aspect of the financial activities of enterprises are the formation and use of various financial assets. Through them, shall provide the necessary means of economic activity, as well as expanded reproduction, the financing of scientific and technological progress, development and introduction of new technology, the economic stimulus payments from the budget, banks.

     Cash funds of enterprises can be divided into five groups (Fig. 1):

     The first group of funds of the enterprise (see Figure 2) - it funds its own funds. They play a crucial role in the enterprise, as the demands on their size and organization rather ambiguous. Charter capital (CC) of the enterprise determines the minimum amount of property companies, guaranteeing the interests of creditors. Thus, the share capital is the main source of its own funds. Its minimum size is determined in accordance with established legal minimum wage in the country. The minimum capital of an open JSC is thousand times the amount of the minimum wage, and closed - one hundred times the amount.

     The charter capital of joint-stock company is determined by the nominal value of shares purchased by shareholders and issued by the society.

     The name "Charter capital" because of its size is fixed in the charter of the company, which is subject to registration in the prescribed manner. 

 

 

 

 
 
 
 

 
 
 

 

     Company has the right to issue ordinary shares of a single denomination and one or more types of preferred shares. If the nominal value of the preference shares cannot be more than 25% of the charter capital.

All the company's shares are registered.

     Shares issued and purchased by JSC shareholders are called positioned stocks. Their number and nominal value should be determined by the charter company.

     Shares that the company has the right to place in addition to the outstanding shares, the number and nominal value is determined by statute, called the announced actions. Joint Stock Company is not obliged to determine the statute authorized shares. Obligatory condition of the placement of additional shares of each category (type) is to define in statute the rights granted to placed shares of the company in each category (type). If the company's charter provided for authorized shares, in this case, additional shares may only be placed within the number of authorized shares. When placing additional shares of joint-stock company determines the number of additional ordinary shares, the terms and conditions of their placement.

     The charter  capital of joint-stock company may be increased up to work for a year. This is possible by the decision of the meeting of shareholders or directors (as defined in the statute), and only after appropriate re-enterprises. There are three options to increase or decrease the authorized capital of the company:

     1) Increase (decrease) in nominal value of one share;