Finances of enterprises

     2) Increase (decrease) the number of shares issued;

     3) the exchange issued a joint stock company bonds for shares in the capital increase and share exchange, respectively, to bond with its reduction.

     The charter capital is the first money funds are recorded in section III of the liability balance of the enterprise. Balance sheet is as follows:

 

     Asset - the property business, passive - those funds which are formed at the expense of the property. Property - it's fixed assets and intangible assets (fixed assets) and working capital (current assets). Money can be your own (Section III), as well as loans and borrowings (Section IV and V).

     With charter capital of enterprises is closely related to a concept of net assets, which in the broadest sense are his own means. The need to calculate the net asset value due to the fact that some of the funds of the enterprises have a dual character. On the one hand, they are his own means, and on the other - they do not belong directly to the company and its shareholders and employees.

     Between the net assets (NA) of the company and its share capital (CC), there exists the following relationship, which operates from the second year of the company.

     If the CHA <MC, the company must reduce its authorized capital to net assets, in fact, to the value of equity.

     If the CHA <UK min (minimum capital), the Company shall take a decision on its liquidation, since the situation is contrary to law.

     In this case, the company has no right to make a decision on dividend payment. It has no right to do as well in that case, if the net asset value may be less than the indicated value after payment of dividends.

     The important role of net assets is also reflected in the fact that on this basis is determined by the so-called book value of the shares. Book value of shares - this is a real value compared them to their face value, especially in Russia, where annually the revaluation of fixed assets, increase their value. At the same time increase the charter capital as a result of these revaluations did not exceed 10-15%.

     Consequently, the net assets of more significant than the authorized capital. 
After following the share capital of funds company's own funds is additional capital, which includes:

• Revaluation of fixed assets, i.e. their revaluation surplus;
• seignior age company (revenue from sale of shares in excess of their nominal value less costs of sale);
• Gratis cash and tangible assets for productive purposes;
• Proceeds for working capital.

     Additional capital accumulates funds coming to the enterprise during the year on the above channels. The main channel here is the results of revaluation of fixed assets.

     It is natural annual increase in share capital due to the additional. But, as noted, many companies do not.

     Reserve capital is formed by contributions from revenue in the amount determined by the charter, but not less than 15% of the share capital. Annually to the reserve fund should be deducted at least 5% of net profits until the reserve fund until it reaches the size specified by the charter. Reserve capital enterprise is intended to cover its losses, and joint stock companies and more to maturity of society and the redemption of their shares in the absence of other means. 
In a broader sense, the enterprise reserve fund to be used in accordance with international practice in two ways:

1. the shortage of working capital, he goes to the formation of inventory, WIP and finished goods;
2. the adequacy of working capital, he sent a short-term investments.

     Currently, businesses can use the capital reserve and in the broad sense, but in this case, the payments to him should be made from net profit, without tax benefits. In particular, the joint-stock companies can generate net income from special fund for employees of joint-stock company. It is intended for the purchase of shares sold by shareholders, for subsequent placement of their employees. Certainly, in terms of production, where highly qualified specialists will be invited, this may be one of the stimuli. Corporation stock may be an option of awarding employees. In addition, the concentration of most of the issued shares of joint stock companies employees and an incentive condition for raising production efficiency.

     The accumulation fund is designed to boost production and profits generated by remaining at the disposal of the company, ileitis net profit. 
The role of this fund is clear. The truth in this case is: the company should be able to provide and increase working capital and finance capital investments. This should always be considered as part of allocating net income and deciding how much of it should be directed to the payment of dividends and the development of production.

     The Fund is a source of savings to increase the authorized capital of the enterprise as investments in the development of production equipment to increase the company. Consequently, increasing net assets and the carrying value of the stock company, and an increase in share capital - and their nominal value. Thus, if a company chooses instead of paying dividends to most of the profits directed to the development, in this case, shareholders will not lose anything.

     It should be borne in mind also that the increase in funds for the development increases the volume of sales and business growth in its profits. That is why in the world about half of corporations do not pay dividends, and shareholders attracts ever-increasing shareholder value. In addition, the newly established joint stock companies, as a rule, do not pay dividends in the first five years.

     Fund "Targeted financing " concentrating the funds received from the budget, and sectoral and intersectoral special-purpose funds from other organizations and individuals for implementation purpose.

     The second group of funds (Fig. 3) - this is leveraged funds. In a market economy, no company cannot and should not do without borrowing, as their use enhances the effectiveness of their own funds, meeting the specific needs of the enterprise. Borrowed funds are leveraged by which increases the profitability of the enterprise.

     

     

       

     

       
 
 
 

 

     The variety of these tools enables their use in different situations, mainly in the following cases:

• To increase the profitability of own funds;
• If there are insufficient equity;
• The formation of the variable portion of current  assets;
• While covering some costs, uneven wearing at certain periods;
• As a source of investment;
• In some other cases.

   Each of the above sources of leverage for the company plays a role. At the same time, the enterprise should pay special attention to the development of commercial loans and leases. Commercial credit is the result of delayed payment provider's customer. He may be issued a bill of exchange, or simply by the contract. Bill for a number of good reasons not yet received sufficient development, without which market relations cannot develop normally. Making a commercial loan agreement may involve a specific alternative for the buyer.

   Accounts payable - is also a pool of money borrowed funds, as the company has a turnover of other people's money as a result of nonpayment. 
Currently defaults reached huge proportions. They have a sharply negative impact on the financial position of companies, their profitability and hence on the economy as a whole.

   The third group of funds (Figure 4) - a fund of funds. These funds have a dual character, as, on the one hand, while they are in the back of the enterprise, and the other - they belong to his employees (dividends and consumption fund). The confirmation of the duality is that, firstly, in the balance sheet they are in section VI of liability, among short-term obligations, and secondly, by some calculations, they are excluded from the obligations of the enterprise.

   

 

 

 
 
 
 
 

 

     Consumption fund - a monetary fund, which is formed at the expense of net profit and is intended primarily to meet the material needs of employees, to pay dividends (in joint stock companies), for payment in some cases, fines, penalties for violations caused by the company. In the formation of the consumption fund company must take into account one very important rule: profit before tax growth should be higher than the rate of growth of consumption, including wages.

     Operating cash funds, which form the fourth group of funds, are now periodically (Fig. 5). Twice or once a month, the company formed to fund the payment of wages. Its basis is the payroll.

     

 

 
 
 

     

     

     To ensure timely payment of wages the company solves a number of tasks.  For these purposes, the account accumulates the necessary funds, and in their absence the company turns to a bank for a loan to pay wages.

     Equally important is determining the optimal timing of payment of wages  and the number of days required to do so.

     Usually once a year (at least once per quarter) should be the fund is paying dividends to shareholders.

     Periodically, the company organizes fund payments to the budget of various taxes. Late payment in the budget now entails penalties.

     The fifth group of funds of enterprises should include funds, which are formed by different sources (Fig. 6).

     

     

       
 
 

 

     Working capital fund of funds is a major determining the financial condition of the enterprise and ultimately its financial results. The sources of its formation are  their own, borrowed, borrowed funds, and accounts payable.

     Fund fixed assets is formed due to debt and equity sources.

     Investment Fund is designed to modernize and expand production, which requires constant development. It is formed from the following sources:

• sinking fund, a trust fund money dedicated to the simple reproduction of fixed assets;
• accumulation fund formed by contributions from profits;
• borrowed and borrowed sources.

   Monetary Fund is  formed in enterprises receiving foreign exchange earnings from exports and buying foreign currency for import transactions. This fund has no independent target value. He stands as far as foreign exchange operations have their own characteristics. Therefore, for the enterprise open foreign exchange transactions of commercial banks licensed by the Central Bank's foreign currency accounts.

   In addition to the, enterprises and other funds created funds: to pay off bank loans, development of new technology, research, contributions to the parent organization. 
4. ANALYSIS OF FINANCIAL PERFORMANCE BASED ON THE BALANCE

   The study of the financial condition begin with a study of the composition and structure of property companies according to the balance sheet (Appendix 1). 

   Balance allows us to give an overall assessment of change in the entire property of an enterprise, to allocate part of its current (mobile) and noncurrent (immobilized) funds to study the dynamics of the structure of the property. Under the structure refers to the percentage of individual groups of assets within those groups.

   Analysis of the dynamics and structure of the property makes it possible to set the size of the absolute and relative increase or decrease the total assets of the enterprise and its individual species. Increase or decrease the asset indicates expansion or contraction of business activity.

   Analyzing the reasons for the increased value of the property business, you must consider the impact of inflation, a high level which leads to significant deviations of nominal balance sheet data from the real ones. International Committee on Accounting Standards Board issued a special standard - "Financial Reporting in countries prone to hyperinflation." It requires reporting recalculate the balance of indicators based on indexes that reflect the price movement.

   In accordance with the requirements of international standard must take into account the inflation factor in the formation of fixed and current assets. In the Russian practice of accounting by inflation only in the formation of the book value of fixed assets. Their initial cost is revalued, then the asset is recorded in the accounting and reporting for the replacement cost. Therefore, the analysis necessary to determine the magnitude of increase in the value of these assets due to revaluation. To do this, examine the data accounting records of the account "Fixed Assets" and "additional capital".

   Revaluation of inventory, finished goods and goods in the national accounting and analytical practice has not yet performed. Therefore increase their value, of course, is influenced by the inflation factor.

   Minimizing economic activity may be due to reduced consumer demand for goods, services and activities of the enterprise, limited access to the market of raw materials, intermediate products or the inclusion of active commercialization of its subsidiaries by the parent company. Changes in the structure of the property create some opportunities for basic and financial performance and impact on total asset turnover.

   Indicators of structural dynamics reflect the proportion of participation of each type of property in the general change in total assets. Their analysis suggests that, in which assets are invested again attracted financial resources or assets that have decreased due to the outflow of financial resources.

   Market conditions require management company at any time be able to quickly repay its current liabilities that is to be liquid. Company liquidity if its current assets than current liabilities.

   In practice, when analyzing the economic condition of the company a lot of attention paid to the analysis of the intensity of working capital, since it is the speed of turning them into cash depends on the liquidity of the company and its chances of success. This raises the need to establish and justify the criterion of efficiency of working capital and methods of their determination.

   The measure of working capital (business activity) can be a relative minimization of working capital advances, providing the production of the highest possible performance and financial results of the company.

   Based on this criterion, the efficiency of working capital can be characterized by a system of indicators: the ratio of an advancing growth in sales volumes over the growth of working capital balances, an increase in product sales per ruble of working capital, the relative savings in working capital, accelerated turnover of working capital. The calculations of these indicators are produced on the basis of the financial plan of the enterprise, the form number 1 and number 2 forms. 
The acceleration of turnover of working capital means savings of socially necessary time and release of funds from the market this allows the company to manage a smaller sum of working capital for the sale of goods and services or the same amount of current assets to increase sales.

   Factors accelerate the turnover of working capital are inventory optimization, effective use of the material. Labor and financial resources, shorter stay in current assets in the calculation.

   Indicators of turnover can be calculated for all working capital as a whole and separately for inventories are m receivables. The actual sale turnover is calculated on the basis of the form № 2 (Appendix 1). 

   Average balances of current assets is determined based on the balances at beginning of year, the quarterly dates and at the end of the year as the average chronological value.

   Targets turnover of the enterprise may be determined only by the material working capital.

   Indicators of turnover of working capital compared with those of previous years, as well as routine turnover.  

   If working capital turnover in days for the year less than last year, it shows the acceleration of the turnover of working capital, the more efficient use. Slowing turnover of working capital indicates an inefficient use.

   In the analysis it is important to establish not only the direction and magnitude of deviations turnover of working capital during the year compared with last year, but as these variations affect the amount of working capital. As well as the size of the release or download additional working capital as a result of acceleration or deceleration turnover of circulating funds compared to last year on a day the amount of sales turnover for the year and the number of revolutions.