Responsibility for non-filing of primary statistical data is strengthened

In the end of December, 2015 the Federal law as of 30.12.2015 №442-FZ “On introduction of an Amendment to Article 13.19 of Administrative Offences Code of the Russian Federation” came into force. 

The introduced amendments strengthen companies’ administrative responsibility for non-filing, untimely filing or filing of unreliable primary statistical data to the government statistics agency. Fines for the corresponding offenses are imposed on officials at a rate from 10 to 20 th RUB and on legal entities - from 20 to 70 th RUB. Earlier fines for the corresponding offenses were imposed at a rate from 3 to 5 th RUB. For the repeat violations the amounts of fine increase to 30 – 50 th RUB for officials, and respectively to 100 – 150 th RUB for legal entities.

In order to understand properly what kind of data is being referred to, it is useful to dwell on the terminology. All the terms are subject to the Federal law as of 29.11.2007 №282-FZ (23.07.2013 revised) “On official statistical accounting and state statistics system in the Russian Federation”.

Primary statistical data – documented information in the forms of the Federal statistical monitoring, received from business subjects or information being directly documented during the course of the Federal statistical monitoring.

Federal statistical monitoring – collection of primary statistical and administrative data.

In its turn the collection of primary statistical data is operated upon forms of the Federal statistical monitoring which represents record sheets, i.e. samples of statistical documents containing questions of monitoring program, places for answers as well as signature requisites of the official. The record sheets make it possible to unify the gathering and automated processing of the statistical data.  Forms of the Federal statistical monitoring include the documentation containing data on key indicators of company, small business or sole entrepreneur’s activity, their basic funds, performance of research and development, manufacture of products and other important data needed for Rosstat (Federal State Statistics Service) to make monitoring, researching and forecasting. Filled forms of the Federal statistical monitoring are commercial confidentiality; the transmission of data on several companies from these forms is prohibited.

Due to introduction of amendments it is necessary to recollect the initiative of the Rosstat (in April, 2015) to strengthen the administrative responsibility for non-filing, untimely filing and filing of an incomplete compulsory copy of an annual financial account and audit report of the financial account subject to compulsory audit. At that moment fine sanctions at the rate from 100 to 500 th RUB were offered. However the initiative wasn’t endorsed.

Filing of the copy of the financial account is provided by the Article 18 of the Federal law as of 06.12.2011 №402-FL (04.11.2014 revised) “Concerning Accounting”. This article lay under obligation economic entities, excluding government sector companies and the Central Bank of the Russian Federation, to file one at a time compulsory copy of an annual state financial account to the state statistics agency at the place of the state registration. Forms of the financial accounts contained in the Rosstat agencies are not confidential and might be shared with third parties on request.

If the financial account isn’t filed at the stated time, the enterprise might be imposed a fine in accordance with an Article 19.7 of Administrative Offences Code of the Russian Federation  on citizens at the rate from 100 to 300 RUB; on officials – from 300 to 500 RUB; on legal entities – from 3000 to 5000 RUB.

Subscribers of the Information and Analytical system Globas- i® may get acquainted with statutory financial accounts, filed to authority having jurisdiction. Presently the System contains the accounts of more than 3 mln 660 th Russian companies and the total number of balance sheets amounts to 13 mln 200 th with archives for more than 20 years.

Debt/equity ratio of the largest meat manufacturers of Russia

Information agency Credinform prepared a ranking of the largest Russian meat-processing enterprises.  

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 accounting period (for the year 2014). Moreover following data were calculated: the dynamics of revenue related to the previous year, debt/equity ratio, solvency index GLOBAS-i® (s. Table 1).  

Debt/equity ratio (х) is a relative value of the ratio of borrowed and own sources of company financing. It shows the degree of financial dependence of an organization. Recommended value is: 0≤(x)<1. If the indicator is negative, this fact testifies that an enterprise has losses. If the indicator exceeds the upper limit (1), it means that company’s financial standing is critical - borrowed funds exceed own capital.

For getting of more comprehensive and fair picture of financial standing of an enterprise it is necessary to pay attention not only to average indicator values in industry, but also to all presented combination of financial indicators and ratios of a company.

Table 1. Revenue, revenue growth for the year, debt/equity ratio, solvency indexGLOBAS-i® of the largest meat-processing plants of Russia (TOP-10)
NameRegionRevenue, in mln RUB, for 2014Increaseofrevenueby 2013, %Debt/equity ratio, (х)Solvency index GLOBAS-i®
1 Ostankinsky Myasopererabatyvayushchy Kombinat OJSC
INN 7715034360
Moscow 32 314 18,6 0,3 231 high
2 Cherkizovsky myasopererabatyvayushchy zavod PJSC
INN 7718013714
Moscow 27 233 48,0 3,9 243 high
3 MPZ Agro-Belogore LLC
INN 3123183960
Belgorod region 15 977 46,5 84,2 242 high
4 Velikoluksky myasokombinat OJSC
INN 6025009824
Pskov region 12 293 9,9 -5,4 314 satisfactory
5 Starodvorskie Kolbasy CJSC
INN 3328426780
Vladimir region 11 462 32,8 4,6 225 high
6 Mikoyanovsky myasokombinat CJSC
INN 7722169626
Moscow 11 382 9,0 2,3 203 high
7 Myasokombinat Bobrovsky LLC
INN 3602007714
Voronezh region 9 722 82,3 44,6 204 high
8 Invest-Alyans LLC
INN 5074028377
Kaluga region 9 669 20,3 0,1 193 the highest
9 Myasokombinat Pavlovskaya Sloboda LLC
INN 5017041244
Moscow region 9 568 31,5 0,5 191 the highest
10 Ptitsekombinat LLC
INN 2631029799
Stavropol territory 9 181 13,6 39,1 229 high

Industry leader – Ostankinsky Myasopererabatyvayushchy Kombinat OJSC - demonstrates an acceptable debt/equity ratio: 0,3. In other words, the level of company’s can be covered by means of own funds. Invest-Alyans LLC and Myasokombinat Pavlovskaya Sloboda LLC also comply with the recommended ratу: 0,1 and 0,5, respectively. The borrowings by the rest of producers exceed owner’s equity, the enterprises "live on credit," that is fraught with the loss of financial independence. 

The negative ratio (-5,4) by Velikoluksky myasokombinat OJSC indicates a high debt load the company to its current or potential counterparties, whose owner’s equity does not cover debts (in the case of simultaneous calling on the part of borrowers).

debt/equity ratio

Picture 1. Revenue and debt/equity ratio of the largest meat-processing plants in Russia (TOP-10)

The annual revenue of companies from the TOP-10 list amounted to 148,8 bln RUB at the end of 2014 and increased by 28,8% for the period, that is a good result, taking into account the general state of the Russian economy. 

Counter-sanctions entered by Russia on the western meat products, gave a domestic producer a great chance to raise the output of meat and meat products, to increase its presence on the market.  

At the end of 2015 the production of meat of slaughter animals increased by 13% (2,2 mln tones); poultry – by 9,6% (4,3 mln tones); semi-finished meat – by 4,4% (1,8 mln tones).