On the 29th of October of the current year the Federation Council has passed the bill, which allows employees to choose a bank for transfer of salary by themselves. For which cause the experts expect «overflow» of natural persons in the banking sector.

As a reminder, earlier according to the article 136 of the Labor code of the RF, salary was paid to an employee on site or transferred to banking account mentioned by him/her on terms defined by collective or labor contract. Now earnings will be transferred to employee’s account in the bank chosen in his/her discretion. Employee can change credit organization in any month, this requires to file an petition in the name of the executive five days prior to next payment of salary with specification of the name of credit organization and requisites of his/her banking account.

The passed law gives the freedom of choice to clients of banks. Existing system hasn’t involved a possibility of individual choice for each employee. However today, with the development of the market of banking services, many people can have reasons to get salary namely via the bank, which is convenient for them. It’s not a secret that banks offer, as a rule, more attractive rates on credits to their payroll customers. Besides that, state and municipal enterprises choose often for payroll card programs the government banks, which differ by more conservative approach to loan issue or setting of interest rates on savings, what satisfies not many owners of salary cards.

According to experts, this bill will encourage competition between banks. Those banks will win, which develop retail programs, offer wide network of ATMs, user-friendly online bank, as well as rewards programs and savings schemes.

Along with that this bill will complicate essentially the current activity of accounting department, because now in spite of single transfer order and register for all employees, it will be necessary to form as many payment documents and registers, as banks have been chosen by company’s employees, by that this list can change each month.

The law must come into force since the day of its publication.

Information agency Credinform prepared a ranking of leading meat-processing enterprises in Russia, producing mainly finished goods.

The companies with the highest volume of revenue were selected for this ranking according to data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by decrease in inventory turnover ratio.

Inventory turnover (in times) - relation of sales revenue to average inventory value for a period. It shows the speed of realization of inventory.

Inventory turnover characterizes mobility of assets, which an enterprise puts into the stocking: the faster the money put into inventories return to a company as proceeds from sales of finished goods, the higher is the business activity of this organization, efficiency of resources use by the company taking into account the time factor.

There is no recommended value prescribed for this ratio, because the indicator can vary strongly depending on industry sector, where the concrete enterprise operates. However, the higher is its value, the better.

By the analysis of company’s activity it is expedient to take into account the industry-average indicator. 

Picture. Sale proceeds and inventory turnover of leading meat-processing enterprises in Russia (TOP-10)

The turnover of the largest Russian meat-processing enterprises (TOP-10) made 134 751 bln RUB, according to the latest published annual financial statement (for the year 2013).

The average value of inventory turnover of TOP-10 organizations is 29 times.

Ostankinsky myasopererabatyvayushchy kombinat OJSC - is the leading Russian manufacturer of products of meat-processing and semi-finished goods, which realizes the complete inventory turnover 23 times a year. In 2013 the sales volume of the plant exceeded 168 thousand tons, thereby consolidated its leading positions in the meat market.

The rate of inventory turnover being higher, than all enterprises average, was showed only by four companies from TOP-10 list – they are as follows:

• Ptitsekombinat LLC (78 times) - is one of the largest poultry plants in southern Russia;
• Starodvorskie kolbasy CJSC (38 times) – produces sausage products, ham;
• MPZ Agro-Belogore LLC (37 times) – vertically-integrated holding company, which specializes in manufacture of pig meat on a commercial scale and realization of fresh meat products in finished consumer package;
• Cherkizovsky myasopererabatyvayushchy zavod OJSC (36 times) – today it is one of the largest manufacturers of meat products in Russia. The plant is the main enterprise of meat-processing segment of «Cherkizovo» Group.

The rest participants of TOP-10 list showed the rate of inventory turnover being lower, than the branch average.
According to the independent estimation of the Information agency Credinform, all organizations of the TOP-10 list (except Khalyal Ash LLC - new entrant, producing meat and meat products, which meet Muslim standards for this product) got a high and the highest solvency index, what can signal to potential investors, that the largest market players can pay off their debts in time and fully in the moment of their incurrence.

See also: Product profitability of meat products manufacturers