On October 29th the Federation Council passed amendments to legislation concerning rules of legal entities’ registration in the Crimea and Sevastopol. According to the approved changes, the executive bodies of these regions can regulate the registration of legal entities till January 1st, 2015 by themselves.

It bears reminding that the Crimea and Sevastopol were under the Ukrainian legislation till March of the current year. Many problems concerning registration and reregistration of legal entities have arisen after annexation of these regions by the Russian Federation.

With respect to the law, aspects of registration and reregistration of companies registered within the republic of the Crimea and the city with the federal status Sevastopol will be regulated by the normative legal acts of these regions till January 1 st, 2015. Moreover, the senators made amendments that lift restrictions on reregistration of legal entities with public-law participation in accordance with the legislation of Russian Federation.

Nowadays, this prohibition extends to reregistration of legal entities whose standing executive body was located within the Crimea at the day of annexation of the republic by the RF and which property is in ownership of public-law body (state body) or legal entities with a state body as a member. It is expected that the normative legal acts of the Crimea and Sevastopol may be administered with reference to the companies before making a record in the EGRUL (Unified State Register of Legal Entities).

It is to be recalled that the President of Russia has earlier signed a law concerning integration of the Crimean legal entities into the Russian legal system. According to the passed law, the Crimean companies will start carrying out their activity in compliance with the Russian legislation immediately after making of a corresponding record in the EGRUL.

Information agency Credinform prepared a ranking of main manufacturers of concrete in the RF.

The companies with the highest volume of revenue were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2013), for each of them the current assets to equity ratio was calculated.

Current assets to equity ratio (х) – is the relation of own current assets to total value of equity. It shows the ability of an enterprise to maintain the level of own capital and to finance current assets in case of need with internal sources.

The recommended value is: from 0,2 to 0,5.

This indicator is interesting first of all for long-term investors, because it characterizes company’s ability to satisfy its long-term obligations, without resort to borrowings in financial market.

However, it should be understood that recommended values differ essentially as well for enterprises of different branches, as for organizations of the same industry, consequently, these values are exclusively of informational character.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to average values of profit, but also to all available combination of financial data.

Picture 1. Turnover and current assets to equity ratio of the largest manufacturers of concrete in Russia (TOP-10)

The turnover of the largest companies engaged in concrete manufacture (TOP-10) made 94 416 bln RUB, according to the latest published annual financial statement (for the year 2013).

Only three participants of the TOP-10 list showed the current assets to equity ratio being within recommended values: Oskoltsement CJSC (0,4), Sukholozhsktsement OJSC (0,2) and Serebryakovtsement OJSC (0,2).

In other words, enterprises will able to conduct their business activities and make necessary payments to creditors, contractors, personnel without resort to borrowings in external market, what points to good financial stability of these organizations.

It is also necessary to mention expressly the industry leaders on total revenue:
• Mordovtsement OJSC - is one of the largest enterprises on concrete manufacture in the RF. Plant capacity - 6,8 mln tons of concrete per annum. For 10 months of the current year it was produced 4 327,8 th tons of concrete, the gain to the relevant period of 2013 made 3,2%. In January-October 2014 it was sold 4 329,5 th tons of concrete, what is by 1,6 % more than the indicator of sales for January-October 2013.
• Novorostsement OJSC – is the oldest concrete enterprise of Russia. In December of the current year it will celebrate the 139th anniversary. It is one of the largest domestic manufacturers of concrete. Company’s output capacities let it produce more than 4 mln tons of high-quality concrete annually.
• Oskoltsement CJSC – is one of five the largest concrete enterprises of Russia on factory load. It was founded on the basis of Starooskolsky concrete plant built for integrated use of mineral resources of Kursky magnetic anomaly. Since 1969 the plant has been producing above 100 mln tons of high-quality concrete.

Taken as a whole, according to the independent estimation of the Information agency Credinform, all organizations of the TOP-10 list (except Lafarzh Tsement OJSC) got a high and the highest solvency index, what points to their investment attractiveness.

The standing of the branch will be determined to a large extent by speed of housing construction: for 9 months of 2014 the volume of new housing supply countrywide has increased by 24,6% to the relevant period of 2013 – up to 48,2 mln sq. m.

However, the increased value of credit and mortgage programs, as well as unstable macroeconomic situation, could have a negative impact on the dynamics of building sector next year.