Information agency Credinform presents the ranking of Russian electronic printed circuit board manufacturers. The largest enterprises in the industry in terms of annual revenue for the last reporting periods available in the state statistics bodies and the Federal Tax Service (2018 - 2020) were selected for the ranking (TOP 10 and TOP 100). Then they were ranked by asset turnover (Table 1). Selection of companies and analysis were carried out based on data from the Information and Analytical system Globas.

Asset turnover (times) is the ratio of sales revenue to average value of company's total assets for a period. It characterizes efficiency of company's use of all available resources, regardless of sources they were raised.

The ratio of business activity shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

It is necessary to pay attention to the entire set of indicators and financial ratios to get the most complete and objective picture of enterprise's financial condition.

Table 1. Net profit, revenue, asset turnover, Globas solvency index of electronic printed circuit board manufacturers (TOP 10)

Name, INN, region	Revenue, million rubles		Net profit (loss), million rubles		Asset turnover, times		Globas Solvency Index
	2019	2020	2019	2020	2019	2020
1	2	3	4	5	6	7	8
SEYONG RUS LLC INN 5075019826 Moscow region	7 263	4 887	108	10	10,90	13,43	286 High
ALT MASTER LLC INN 5044050047 Moscow	290	355	16	40	2,20	2,47	191 Superior
SMT-AILOGIK LLC INN 7804552300 Saint Petersburg	969	2 069	96	224	1,44	2,08	241 High
OPTIMALNAYA FABRIKA LLC INN 7814707257 Saint Petersburg	455	275	40	41	4,12	1,91	252 High
MICROLIT LLC INN 7735122689 Moscow	1 553	1 884	145	161	1,99	1,88	152 Superior
RESONIT LLC INN 5044031157 Moscow	1 362	1 554	144	184	1,85	1,69	140 Superior
ELECTROCONNECT LLC INN 5408154542 Novosibirsk Region	521	554	45	101	1,30	1,32	213 High
ORBITA I LLC INN 3924000495 Kaliningrad Region	308	399	25	24	0,84	1,19	219 High
OOO ETALON PLANT INN 6901090890 Tver Region	618	279	9	4	1,98	0,92	269 High
NAO SCIENTIFIC AND TECHNICAL CENTER RIF INN 7816441972 Saint Petersburg	546	645	153	203	0,84	0,73	149 Superior
TOP 10 average value	1 388	1 290	78	99	2,75	2,76
TOP 100 average value	167	158	7	5	2,48	2,21
The average industry value in the production of electronic equipment elements and printed circuits boards	161	158	6	13	0,51	0,50

Improvement of the indicator to the previous period, deterioration of the indicator to the previous period

Asset turnover indicators of TOP10 and TOP 100 companies in 2020 are significantly higher than the industry average values. Five companies reduced their indicators in 2020, while seven companies experienced a decrease in 2019.

At the same time, in 2020, seven companies increased their revenue and/or net profit. However, decline in average revenue of the TOP 10 is 7%, for the TOP 100 - 5%, and the industry average fell by almost 2%.

The average profit in the TOP 10 increased by 27%, in the TOP 100 - decreased by 29%, and the average growth in the industry amounted to over 2 times bigger value.

In general, during the last 5 years, average industry indicators of asset turnover have been growing for two periods. The indicator reached the best values in 2019, and the worst result was shown in 2016. (Picture 1).

Picture 1. Change in average industry values of assets turnover of electronic printed curcuit board manufacturers in 2016-2020.

The Order of the Federal Tax Service of the RF (FTS RF) as of 25.05.2021 No. ED-7-23/518@ approved the requirements to internal control system of the companies, in respect of which the tax monitoring is performed. We reported about the improvement of the tax monitoring system in the article as of 08.02.2021.

The new requirements were developed in order to bring the legal acts of the FTS RF into the line with the provisions of the article 14.7 of the part one of the Tax Code of the RF and the Federal Law as of 29.12.2020 No. 470-FL.

The companies should follow the requirements to the internal control system of accounting events, accuracy of calculation and retention, completeness and timeliness of payment of taxes, charges and insurance contributions, while performing the tax monitoring.

Working of the internal control system should be guaranteed on all the levels of the control of business processes performing, such as:

• before actual start of operations – in order to prevent and minimize the negative influence of events and factors, effecting on the achievement of the company’s objectives;
• during execution of operations – in order to quickly detect and eliminate violations and problems, emerging in the course of works;
• after execution of operations – in order to identify reliability of the reporting data and evaluation of the results conformity to the target or plan indicators;

As a part of the internal control system, the following options should be organized:

• control environment – standards and regulations of employment, motivation, review, career development, termination of employees, as well as requirements to the professional skills and expertise of employees;
• risk management system – a sequence of operations on prevention and minimization of the possible damage, including: risk identification, its analysis and assessment, delimitation of acceptance boundaries of risks, disclosure of information on the identified risks, making decisions on the method of risk management, based on assessing the adequacy of control procedures at the disposal of the company to cover risks;
• risk identification procedure – identification of events, situations, circumstances, making an impact on achievement of objectives of the company and analysis of the reasons and sources of the risks formation;
• assessment of the nature of the risk, based on such factors as:
  association of risk with the macroeconomic changes, the changes of the social and economic situation,
  association of risk with the requirements to the maintenance of accounting and tax records and preparation of reports,
  complexity of the carrying out economic operations, including the necessity to perform complicated calculations and comply with the accounting principles,
  degree of manual intervention into accounting process of economic operation,
  degree of subjectivity in the calculation of estimated figures, contained in accounting, financial, tax and other statements,
  association of risk with unethical practices;
• disclosure of information on risks with description of sources of formation and criteria of risks, measures to prevent or minimize risk.

As a part of information cooperation, the taxpayers should present to the appropriate tax authorities the data on risks in electronic form; control procedures, focused on prevention and minimizations of risks; results of performing the control procedures; evaluation of the internal control system organization level; events on improvement of the internal control system; organization of the internal control system.

Moreover, the companies should perform the evaluation of the necessity to make amendments to the internal control system not less than once a quarter and present the actual data on the internal control system to the tax authorities no later than 5 working days from the date of making the amendments.

The Order will come into force since July 1^st, 2021.

The information, disclosed to the tax authorities, should be presented for the reporting periods, coming up after January 1^st, 2022.