Information agency Credinform has prepared a ranking of the Russian enterprises processing scrap and waste of precious metals. Industry players (TOP-10) with the largest annual revenue were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available accounting periods (2017 - 2019). Then the enterprises were ranked by the asset coverage ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Asset coverage ratio (x) is calculated as the difference between equity and non-current assets to current assets.

The ratio characterizes the ability of a company to finance current activities only with its current assets. The recommended value of the ratio is > 0.1.

In order to get the most comprehensive and fair picture of the financial standing of an enterprise, it is necessary to pay attention to all combination of financial indicators and ratios.

Table 1. Net profit, revenue, asset coverage ratio, solvency index Globas of the largest Russian enterprises processing scrap and waste of precious metals (TOP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Asset coverage ratio (x), > 0,1		Solvency index Globas
	2018	2019	2018	2019	2018	2019
1	2	3	4	5	6	7	8
OOO VTORMET INN 3123386744 Belgorod region	3 586,1	3 478,3	-62,8	66,6	0,71	0,72	228 Strong
OOO STROIMETKOM INN 7456026640 Chelyabinsk region	4 892,7	5 022,3	19,3	11,4	0,26	0,58	273 Medium
NZ METALL INN 5017090114 Moscow region	2 690,8	2 274,6	46,0	-2,6	0,39	0,19	328 Adequate
OOO VTSM POVOLZHYE INN 7703378286 Moscow	1 550,4	3 421,7	16,1	53,7	0,09	0,12	260 Medium
JSC INCORPARATED ELECTROTECHNICAL PLANTS INN 7716523950 Moscow	19 076,0	20 532,5	267,0	272,1	0,06	0,09	190 High
OOO VULKAN INN 1006012798 Republic of Karelia	571,0	2 824,6	0,7	21,3	-0,06	0,04	267 Medium
OOO MORDOVVTORSYRYE INN 1328165460 Republic of Mordovia	3 880,0	2 344,4	4,1	23,1	-0,14	-0,12	229 Strong
LLC INDUSTRIAL OPERATOR KTZ INN 2127309097 Chuvash Republic	914,3	8 493,0	102,3	28,7	-0,12	-0,13	288 Medium
OOO SKRAP FAR IST INN 7901537354 Khabarovsk Territory	771,9	4 318,9	55,5	113,2	-1,84	-0,27	245 Strong
OOO AMZ-TEKHNOGEN INN 6601008911 Sverdlovsk region	1 408,4	2 890,6	5,4	69,5	-0,32	-0,45	222 Strong
Average value for TOP-10	3 934,2	5 560,1	45,4	65,7	-0,10	0,08
Average value for TOP-500	160,4	189,0	-6,6	2,6	-5,00	-10,87

improvement compared to prior period, decline compared to prior period

Average value of assets coverage ratio of TOP-10 is higher than the average TOP-500 value. Four companies had the above the recommended value in 2019. Seven companies have improved their values in 2019 comparing to the previous period.

Picture 1. Asset coverage ratio and revenue of the largest Russian enterprises processing scrap and waste of precious metals (TOP-10)

During 6 years, the average values of the asset coverage ratio of TOP-500 were negative with a trend to decrease (Picture 2).

Picture 2. Change in the average values of the asset coverage ratio of TOP-500 Russian enterprises processing scrap and waste of precious metals in 2014 - 2019

The Federal law No. 282-FL of August 02, 2019 adopted the amendments to the Law “On licensing certain types of activities”.

The amendments provided for the licensing of the following activities:

• purchase from individuals of jewelry and other products made of precious metals and precious stones, scrap of these products;
• processing or recycling of scrap and waste of precious metals, except scrap and waste generated and collected by organizations and individual entrepreneurs during self-production, or jewelry and other self-produced products from precious metals, not sold and returned to manufacturers.

We informed about these amendments in our publication “Amendments to the Licensing act” of September 16, 2019.

According to the amendments, legal entities and individual entrepreneurs must issue the appropriate licenses, or terminate their activities no later than February 2, 2021.

By Decree of the Government of the Russian Federation of September 12, 2020 No. 1418, two Provisions were approved:

1 Provision on licensing the processing (recycling) of scrap and waste of precious metals (except processing (recycling) by companies and individual entrepreneurs of scrap and waste of precious metals formed and collected by them in the process of self-production, as well as self-produced jewelry and other products from precious metals, not sold and returned to the manufacturer);

2 Provision on licensing the purchase of jewelry and other items made of precious metals and precious stones and scrap of such items from individuals.

In accordance with these Provisions, license applicants must meet the following requirements:

- availability of buildings, facilities, structures and premises or their parts, in each of the places where activities are carried out, owned by property rights or other legal basis;

- availability of the necessary weighing equipment, owned by property rights or other legal basis;

- availability of at least one employee with a higher or secondary vocational education on "Technology of materials" or additional vocational education under the advanced training program (more than 72 hours) in the field of licensed activity or with at least one year of work experience in this area. This requirement does not apply to individual entrepreneurs filing for the license to themselves;

- availability of accounting systems, storage and preservation of precious metals.

A state fee is charged for the issuance and renewal of license, or the issuance of duplicates of them.

Until the RF Government approves the criteria for assigning these types of activities to a certain risk category, scheduled inspections of licensing control are not provided.

The licensing of these types of activities is carried out by the Federal Assay Chamber.

The subscribers of the Information and Analytical system Globas have access to all available information (including archive data) about entities engaged in the processing or recycling of scrap and waste of precious metals.