Insurance tariffs won’t change in 2016

Starting January 1st, 2016 the Federal Law of the Russian Federation as of December 14th, 2015 “Concerning insurance tariffs on compulsory social insurance against industrial accidents and occupational illnesses for 2016” will come into force.

Short text of the law consisting of 3 articles entrenches the established rules of payment and application of current tariffs of insurance contributions on compulsory social insurance against industrial accidents and occupational illnesses. It will correspond to the Federal law as of December 22nd, 2005 №179-FZ “On insurance tariffs on compulsory social insurance against industrial accidents and occupational illnesses for 2006” as it is stated in the law. Thus 32 insurance tariffs from 0,2% to 8,5% will remain in accordance with the types of economic activity and class of occupational risk.

Sole entrepreneurs will be given the existing discounts on payments to employed disabled persons of I, II and III groups in an amount of 60% of the fixed measure of insurance tariffs.

According to experts, when the draft law was introduced to the State Duma, its name was a little bit different: “On insurance tariffs on compulsory social insurance against industrial accidents and occupational illnesses for 2016 and planning period of 2017 and 2018”. The bill has already met the government’s approval on October 1st, 2015. However the negative changes in the Russian economy became more dynamic by the end of the year and the state budget was passed only for 2016. Apparently due to this, the maintenance period of insurance tariffs was decreased to 1 year at reasonable rate of insurance burden.

Absolute liquidity ratio of tea and coffee manufacturers in Russia

Information agency Credinform prepared a ranking of the largest companies in Russia, mainly specializing in the production and supply of tea and coffee.

The TOP-10 list of enterprises was drawn up for the ranking on the volume of revenue, according to the data from the Statistical Register for the latest available period (for the year 2014). These enterprises were ranked by increase in turnover. Moreover following data are presented: on the dynamic of revenue related to the previous period, absolute liquidity ratio and solvency index GLOBAS-i (s. Table 1).  

Absolute liquidity ratio (%) is the relation of the amount of cash, being at the disposal of a company, to short-term liabilities. It allows to determine the share of short-term liabilities, which an enterprise can pay off in the near future (at once), without waiting for the payment of accounts receivable and sales of other assets. The recommended value is > 0,15. The higher is the indicator the better is the solvency of an enterprise. 

On the other hand, too high ratio value may testify to irrational capital structure, out-of-work assets in the form of cash and funds deposited in accounts, that depreciate and lose their initial liquidity in view of time factor and inflation (at the time of their receipt). 

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to the level of profitability of investments, but also to all presented combination of financial indicators and company’s ratios.

Table 1. Revenue, revenue dynamics, absolute liquidity ratio and solvency ratio GLOBAS-i® of the largest tea and coffee manufacturers (TOP-10)
NameRegionRevenue, in mln RUB, for 2014Revenue increase,%Absolute liquidity ratio,  %Solvency index GLOBAS-i®
1 Orimi LLC
INN 4703044256
Leningrad region 26 704 18,1 0,2 203 high
2 Shtraus LLC
INN 7726584503
Vladimir region 7 538 18,8 0,0 297 high
3 Fes Produkt LLC
INN 5007049413
Moscow region 5 224 23,1 0,0 262 high
4 Kompaniya May LLC
INN 5052013232
Moscow region 5 119 20,0 0,0 205 high
5 Yakovlevskaya chaerazvesochnaya fabrika LLC
INN 5074021100
Moscow region 3 018 -3,5 0,0 184 the highest
6 Paulig RUS LLC
INN 6949003920
Tver region 2 292 13,1 0,3 319 satisfactory
7 Chibo SNG LLC
INN 7710502329
Moscow 2 053 -11,3 0,1 296 high
8 Santi LLC
INN 7702371288
Moscow 2 000 -7,4 0,1 360 satisfactory
9 Orimi Treid CJSC
INN 7804045886
Saint-Petersburg 1 834 -69,4 0,2 213 высокий
10 SlavKofe LLC
INN 7706514177
Moscow 1 736 23,9 0,1 310 satisfactory
The best value on the absolute liquidity ratio showed Paulig Rus LLC - 0,25%, which is a subsidiary of the Finnish company Gustav Paulig Ltd. In Finland and the Baltic countries the enterprise is the market leader, and in Russia - the second largest supplier of roast coffee. 

Revenue and absolute liquidity ratio

Picture 1. Revenue and absolute liquidity ratio of the largest tea and coffee manufacturers (TOP-10)
The annual revenue of enterprises from the TOP-10 list of the largest companies, mainly specializing in the production of tea and coffee, made 57,5 bln RUB at the end of 2014, that is by 5,5% higher than the cumulative figure of the same organizations in the previous year.
Orimi LLC demonstrates the highest revenue among all organizations in the industry (26,7 bln RUB), the absolute liquidity ratio, being equal to 0,17%, meets the recommended value. 
The group of companies «Orimi Treid» (Orimi Trade Group) is the leader of the Russian market of natural hot drinks in terms of production, technologies, distribution, Russia's largest importer of tea and coffee raw materials, one of five leading operators in the world market. The company is a leader of the national tea markets of Belarus, Moldova, dominates in the markets of Kazakhstan and Kyrgyzstan.
In the Russian coffee market «Orimi Treid» takes the 3rd place, being behind only transnational corporations and in the lead in the segment of natural roast coffee. The share exceeds 30% in natural units (Nielsen, 2014).
On key financial indicators «Orimi Treid» is one of 400 the largest Russian companies, according to the magazine Expert and in the rating Forbes «200 largest private companies in Russia».
Tea and coffee trademarks of the company have high ratings of brand awareness and a stable sales dynamics – tea Greenfield, TESS, «Princess Noori», «Princess Java», «Princess Kandy», «Princess Gita», «Shah», «Zhemchuzhina Nila», coffee «Jokey» and Jardin.