Information Agency Credinform has prepared the ranking of the largest Russian manufacturers of textile products. The largest enterprises of the industry (TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2015 and 2014). Then the companies were ranged by current liquidity ratio (Table 1).

Current liquidity ratio (х) is a ratio of total working capital to short-term liabilities. The ratio shows the sufficiency of company’s assets to meet short-term obligations.

The recommended value is from 1,0 to 2,0. The ratio value less than 1 indicates about the excess of short-term liabilities over current working capital.

The calculation of practical values of financial indicators, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas-i^® by the experts of Information Agency Credinform, taking into account the actual situation of the economy as a whole and the industries. The practical value of current liquidity ratio for textile products manufacturers is from 0,99 to 2,95.

For the most full and fair opinion about company’s financial position not only the compliance with standard values, but the whole set of financial indicators and ratios should be taken into account.

*) - average value within group of companies
**) – average value within industry

In 2015 the average value of current liquidity ratio within TOP-10 group of companies is lower than average value within TOP-100 group of companies and higher than industry average value. Meanwhile only JSC Gazprom Khimvolokno from TOP-10 list has ratio within recommended and practical values.

Total revenue of 10 largest companies amounted to 38% from TOP-100 total revenue. This fact testifies the high level of competition within industry. The shares of the largest companies by 2015 total revenue - LLC COTTON CLUB and TDL TEXTILE LLC in TOP-100 total revenue amounted to 7% (Picture 2).

9 companies from TOP-10 list have the highest or high solvency index Globas-i^®, this fact shows the ability of the companies to meet their obligations in time and fully.

JSC Gazprom Khimvolokno has satisfactory solvency index Globas-i^® due to participation as a defendant in debt collection arbitration proceedings and loss in balance sheet ratio structure. The forecast for companies’ index development is stable.

In 2015 all TOP-10 participants increased its net profit. However 3 companies have decrease in revenue in comparison with previous period and JSC Gazprom Khimvolokno has loss (red color in Table 1).

In 2014 the TOP-100 list included 20 loss-making companies and in 2015 the number decreased to 13.

In general within 2004-2016 the ratios of textile products manufacturers in money terms were unstable; this testifies the data from the Federal State Statistics Service (Table 2).

*) Red color in table 2 shows decline in production, green color shows the growth.

In general, the maximum industrial growth was observed in 2007 and the maximum recession – in 2009. Increase in production is marked in 2016 (Picture 3).

Manufacturers of textiles are unequally distributed across the country and are basically concentrated in industrialized regions with developed production structure, which is especially typical for Ivanovo and Moscow regions. This fact is confirmed by data from the Information and Analytical system Globas-i, according to which 100 largest companies of the industry in terms of 2015 revenue are registered in 30 Russian regions (Picture 4).

In February 2017 the Russian currency was showing the “miraculous” appreciation for several weeks in a row, having cleared the 57 rubles per one US dollar barrier (16.02.2017). The analysts accounted this fact by the expected deficit on the oil market; possible improvement of relations between countries; speculative operations; the necessity of exporters to transfer to the budget MET, excise, and VAT payments in February; leaving permanent the Central Bank of the Russian Federation key rate. In the current situation the economic experts started to speak about the fact that the strengthening ruble attacks the Russian economy as Russian exporters lose their edges.

From the end of February 2017 the ruble depreciation has been noted. Today the ruble is nigh unto the mark of 59 rubles per one US dollar. However according to the baseline forecast of the Ministry of Economic Development of the Russian Federation, it should amount to about 67, 5 rubles per one US dollar. Due to this the Ministry thinks that the currency still exceeds the fundamental values. The corresponding fluctuations of the ruble, oil prices, as well as the policy of the Federal Reserve System of the USA and the Central Bank of Russia, make it possible to consider these instruments problematic for the forecasting.

In the current conditions of the world and the Russian economy the domestic business outlines the main risks – low level of consumer confidence and the lack of comfort for the business to work transparently.

Companies’ managers name the following external factors threatening business in 2017:

• ruble volatility
• geopolitical insecurity;
• problem of capital inaccessibility due to sanctions;
• social instability;
• unemployment;
• outlived globalization.

The initiated discussion concerning changes of the tax system after 2018 provides fodder for business to be more worried. On the one hand, it is assumed that the tax revision is focused on easing of burden on business. On the other hand, it is always feared that “we wanted to do it better, but it turned out as always”. According to the Ministry of Finance plan, the primary target of the tax system itself remains constant – to save the sufficient quantities of the tax burden for the government to fulfil expenditure and social obligations. However the department doesn’t see any necessity to increase taxes, if they are paid properly.

In the course of tax system changing it is suggested to lower the insurance premium rates from 30% to 22% and to increase VAT from 18% to 22%, and moreover to make the insurance payment rate flat. As a result, the insurance premiums united into one payment will be distributed to non-budgetary funds in future. The goal of such redistribution lies in tax burden reduction and its displacement on consumer budgets. Among other changes there are – consolidation of benefits, improving of their targeting, abandoning the inefficient ones. All the discussions will be finished in 2017. The changes are to be initiated in terms of legislation in 2018 and to be implemented since 2019.

The small business situation suggests that there is a necessity in additional measures in order to improve the business climate. In particular, according to representatives of the All-Russian non-governmental organization of the small and medium business, the following things sit well with the small business: reduction of insurance burden on the payroll budget, VAT increase, determination of minimum wage non-liable to income tax, non-connecting of individual entrepreneurs’ insurance premiums to SMWI, increase of microloans for entrepreneurs from three to five mln RUB and for a term before five years; insurance of bank account balance similar to natural persons, individual entrepreneurs etc. These and other suggestions will be discussed in May 2017 with the participation of the President of the Russian Federation. The decisions made are expected to come into force since 2019.