The Federal Law №231-FZ from July 29, 2018 introduced provisions (p. 4 of the Art. 82) into the Part One of the Tax Code of the RF on the admissibility of collection, storage and use of documents or information received from audit organizations, including individual auditors, in cases prescribed by Article 932 of the Tax Code of the RF. The last Article was also introduced into the Tax Code of the RF by this Federal Law.

According to laws in place, auditors are obliged to disclose information or submit documents received from audited entities only at the request of law enforcement authorities and courts. From January 1, 2019, they are obliged to submit information to the Federal Tax Service (FTS of the RF) at the first request within a ten-day period based on the decision of the head of the FTS of the RF or his deputy.

Upon receipt of such request, auditors have the right to inform the person in respect of whom the request was received.

Documents may be required for tax control in cases, if they have not been submitted previously by taxpayers in the permitted manner when conducting field tax inspections or after receiving of requests from the authorized bodies of foreign countries regarding citizens of the RF.

Such amendments to the Tax Code of the RF were developed to implement the recommendations of the Organization for Economic Co-operation and Development (OECD) following the first phase of the review of Russian legislation within the Global Forum on Transparency and Exchange of Information for Tax Purposes.

For reference

According to the Information and Analytical system Globas, there are currently over 5 200 active financial audit organizations and over 650 individual auditors in Russia. To get acquainted with them and their business activities is possible after the subscription to system access.

Information agency Credinform has observed trends in the activity of the largest real economy companies of Krasnoyarsk territory.

Enterprises with the largest volume of annual revenue (TOP-10 and TOP-1000), were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2013-2017). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets - indicator, reflecting the real value of company's property, is calculated annually as the difference between assets on the enterprise balance and its debt obligations. The indicator of net assets is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

   — growth of the indicator to the previous period,    — decline of the indicator to the previous period.

For a five-year period average amount of net assets of TOP—1000 companies has increasing tendency (Picture 1).

Picture 1. Change in TOP—1000 average indicators of the net asset amount in 2013 — 2017

Share of companies with insufficiency of property in the TOP—1000 has grown for the last five years (Picture 2).

Picture 2. Shares of companies with negative values of net assets in TOP—1000 companies

Sales revenue

The revenue volume of 10 leaders of the industry made 53% of the total revenue of TOP—1000 companies in 2017 (Picture 3). It demonstrates high concentration of capital in Krasnoyarsk territory.

Picture 3. Shares of participation of TOP—10 companies in the total revenue of TOP—1000 companies for 2017

In general, an increasing tendency in revenue volume is observed (Picture 4).

Picture 4. Change in the average revenue of TOP—1000 companies in 2013 — 2017

Profit and losses

The profit volume of 10 leading enterprises in 2017 made 88% of the total profit of TOP-1000 companies (Picture 5).

Picture 5. Share of participation of TOP—10 companies in the total volume of profit of TOP—1000 companies for 2017

Over a five-year period, the average values of net profit indicators of TOP-1000 companies tend to increase. Besides, the average value of net loss decreases (Picture 6).

Picture 6. Change in the average indicators of profit and loss of TOP—1000 companies in 2013 — 2017

Key financial ratios

Over the five-year period the average indicators of the current liquidity ratio of TOP—1000 were above the range of recommended values — from 1,0 up to 2,0 with increasing tendency (Picture 7).

The current liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Picture 7. Change in the average values of the current liquidity ratio of TOP—1000 companies in 2013 — 2017

Sufficiently high level of average values of the indicators of the return on investment ratio with decreasing tendency has been observed for five years (Picture 8).

The ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity involved in the commercial activity of own capital and the long-term borrowed funds of an organization.

Picture 8. Change in the average values of the return on investment ratio of TOP—1000 companies in 2013 — 2017

Asset turnover ratio is calculated as the relation of sales revenue to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction. The ratio shows how many times a year a complete cycle of production and circulation is made, yielding profit.

This business activity ratio showed a tendency to decrease for a five-year period (Picture 9).

Picture 9. Change in the average values of the assets turnover ratio of TOP—1000 companies in 2013 — 2017

Production structure

The largest share in the total revenue of TOP-1000 is owned by companies, specializing in precious and non-ferrous metals production and iron and steel companies (Picture 10).

Picture 10. Distribution of companies by types of output in the total revenue of TOP—1000, %

66% of TOP—1000 companies are registered in the Register of small and medium enterprises of the Federal Tax Service of the RF. Besides, share of the companies in the total revenue of TOP—1000 amounts to 12% (Picture 11).

Picture 11. Shares of small and medium enterprises in TOP—1000 companies

Main regions of activities

TOP—1000 companies are unequally distributed on Krasnoyarsk territory and registered in 44 districts. The largest companies in terms of revenue volume are concentrated in the center of Krasnoyarsk territory — Krasnoyarsk city (Picture 12).

Picture 12. Distribution of TOP—1000 companies by districts of Krasnoyarsk territory

Financial position score

An assessment of the financial position of TOP—1000 companies shows that the largest number is in an above the average financial position. (Picture 13).

Picture 13. Distribution of TOP—1000 companies by financial position score

Solvency index Globas

Most of TOP—1000 companies have got from Medium to Superior Solvency index Globas, that points to their ability to repay their debts in time and fully (Picture 14).

Picture 14. Distribution of TOP—1000 companies by solvency index Globas

Conclusion

Comprehensive assessment of the activity of largest companies of real sector of economy of Krasnoyarsk territory, taking into account the main indexes, financial indicators and ratios, demonstrates the presence of favorable trends, such as increase in net assets amount, revenue and net profit volume, decrease in average amount of net losses, increase of the current liquidity ratio. However, among negative factors are increase of share of companies with negative values of net assets, decreasing indicators of return on investment and return on assets ratios, insufficient share of small and medium enterprises in the total production volume, high concentration of production in center of the territory.

According to the data from the Federal State Statistics Service, increasing tendency of the Industrial production index is observed in Krasnoyarsk territory in 2017 — 2018. For 8 months of 2018 industrial production index has 0,9% decreased at average, and in general, for the period from September of 2017 to August of 2018 industrial production has 1,6% decreased at average (Picture 15).

Picture 15. Industrial production index in Krasnoyarsk territory in 2017 — 2018, month to month (%)

According to the same data, share of Krasnoyarsk territory in revenue volume from sale of goods, products, works, services in general for the country was 2,05% for 6 months of 2018.