Find out the financial condition of the company. How to check the financial solvency of the partner enterprise
To find out the financial condition of a counterparty, you need to check the balance sheets, income statement and credit report. What parameters in these documents should be paid attention to and how should they be interpreted?
Assets and liabilities of the counterparty
One of the most revealing parameters of the financial statements of the counterparty are the assets and liabilities of the counterparty enterprise. Assets are what the company now has, liabilities are what the counterparty acquired these assets with. The structure of the asset/liability pair and its compliance with the industry standard is also important. So, if we talk about a trading enterprise, its assets should have a sufficiently large amount of working capital. Non-current assets, such as real estate or transport, on the contrary, should be less. A trading company makes money on turnover, and if a significant share of its assets is that it cannot sell quickly, this is a negative trigger.
In the manufacturing sector, the opposite is true. There should be few working capital in assets, capital investments, non-current assets - more.
Among the liabilities of the counterparty enterprise, there are two large groups:
- Long-term liabilities (over 12 months). As a rule, these are loans. Funds from which the company acquired assets. working capital or investment. There shouldn't be many long-term commitments. And they should not put pressure on the budget of the counterparty, reduce the level of its solvency. As a rule, long-term liabilities are “expensive liabilities”, bank interest on loans is quite high.
- Short-term liabilities (up to 1 year). Most often, these are receivables to counterparties, less often - short-term credit products of banks. Short-term liabilities are relatively cheap. As a rule, counterparties provide goods or services without charging loan interest.
Counterparty balance
A little easier, the financial condition of the counterparty allows you to evaluate other balance sheet parameters.
Revenue. One of the most reliable indicators of Fin. counterparty reporting. This is information about the funds received on the settlement accounts of the counterparty to check the enterprise. By revenue, you can roughly understand what the size of the company's profit is, based on the average market profitability of a business engaged in a certain area, in a certain region.
The company's net income is also shown on the balance sheet. It's okay if it is negative for one single year. This is a normal phenomenon, for example, for a start-up business, young companies. If you observe this in the documents of an experienced company, or its revenue drops after several years of successful operation, this is a signal to conduct a more thorough check on the counterparty and find out the reason. Were burdensome loans taken out? Has the cost of producing the product/service increased?
If the company shows negative profit for a long time, then it is at risk. Sooner or later, the next obligations assumed by the counterparty will become critical for him, and he will not be able to fulfill them in full, within the specified time frame, or will be unable to fulfill them at all.
Financial statements of the counterparty online
How to check the financial condition of a counterparty via the Internet? , which you can find in your UNIRATE24 account.
Counterparty balances have one significant disadvantage. They are provided with a significant delay in time. Russian companies submit information on their balance sheets once a year. Then Rosstat processes the received data. Then opens access to them, but in parts. Full data for each year will not be available until September of the following year.
Therefore, it can be considered as an additional source of information about the current financial condition of the counterparty. It allows not only to check the company for a loan, but also to see what long-term obligations the counterparty’s finances are “loaded with”. What is his payment discipline. Does the counterparty have "cash gaps". In this case, the information will be actual on the day of the request. This circumstance favorably distinguishes the credit history from information from Rosstat, which is published with a significant time delay.
Pay close attention to the counterparty's finances. Evaluate whether the counterparty is able to fulfill its obligations to you without the risk of violating the terms and volumes. We recommend checking not only new counterparties, but also those with whom you have been cooperating closely for a long time. In the current economic reality, such a check will not be superfluous.
In this Article:What Threatens Violations in the Formation of the Authorized CapitalWhat to Check in the Articles of Association of the Target Company in the First PlaceWhat Mistakes by the Former Management Can Lead to the Loss of AssetsCommunity Q&AReferences
When acquiring a company, investors usually carefully check it. To do this, they conduct a legal audit (the so-called legal due diligence). Its main goal is to get the most detailed and reliable view of the assets and liabilities of the subject of purchase (the target company). To conduct such a check, the investor company (acquirer), as a rule, attracts consultants from law and audit firms, which always results in considerable expenses. Of course, these costs most often justify themselves, especially when acquiring a business consisting of several companies that own various tangible and intangible assets. However, when buying a mid-sized company (in terms of assets and liabilities), these costs can be minimized. Investor lawyers can independently verify information about the target company, and this article will tell you what to pay special attention to.
Checking the correctness of the formation of the authorized capital
If in the company that the investor acquires, the authorized capital or additional shares are paid for with property, then this entails certain risks for the investor.
If the formation of capital at the expense of property was carried out with violations, this may lead to the fact that the registration of the issue of company shares can be challenged by interested parties (decree of the Federal Arbitration Court of the Moscow District dated August 31, 2006 in case No. KG-A40 / 7872-06). It is risky to buy such stocks. If the court satisfies the claim, the authorized capital will be declared unpaid. Similar risks may arise when property pays for shares in a limited liability company. If the court recognizes that the shares (shares) are not paid, then all subsequent transactions with these objects will be void.
Property or property rights contributed to the authorized capital must have a monetary value (Article 15 of the Federal Law of February 8, 1998 No. 14-FZ "On Limited Liability Companies", hereinafter - Law No. 14-FZ, clause 3 of Article 34 Federal Law No. 208-FZ of December 26, 1995 "On Joint-Stock Companies", hereinafter referred to as Law No. 208-FZ). It is made by unanimous decision of all founders (clause 3, article 11 of law No. 14-FZ, clause 3 of article 9 of law No. 208-FZ). At the same time, if the nominal value of the share of a member of a limited liability company paid in non-monetary funds is more than 20 thousand rubles, an independent appraiser must be involved without fail (clause 2, article 15 of Law No. 14-FZ). In a joint-stock company, an independent appraiser must be involved when paying for shares with non-cash funds in any case, regardless of the amount (clause 3, article 34 of Law No. 208-FZ). In addition, it is better to check whether the data on the payment of shares (shares) that the participants have, as well as the data of the appraiser's report, the decision on the establishment of the company, the agreement on the creation (on the establishment) of the company, and the balance sheet match.
Verification of pre-acquisition transactions with assets
In order to avoid a situation in advance when the company's assets will be lost after its acquisition, it is necessary to check the legitimacy of transactions preceding the purchase. It is quite possible that a violation of the procedure for concluding such transactions will result in the loss of the company's assets quite unexpectedly for its new acquirer. There may be several reasons for this.
The conclusion of a transaction by an unauthorized person. These may be errors or inaccuracies in the powers of attorney (for example, this or that authority of the attorney is not spelled out) or the lack of extension of the powers of the head of the company after the expiration of the period established by the charter of the company. Such transactions may be declared invalid on the basis of Article 168 of the Civil Code as transactions concluded by an unauthorized person or by a person who has exceeded his authority (Articles 53, 174 of the Civil Code of the Russian Federation) (decisions of the Federal Arbitration Courts of the Volga-Vyatka District dated January 24, 2008 in case No. A29 -8535 / 2003-2E, West Siberian District dated 10.26.10 in case No. A70-361 / 2010).
Absence of a legally elected board of directors. The situation when, for example, in a joint-stock company the board of directors provided for by the charter is not elected and at the same time the charter does not indicate that the functions of the board of directors are performed by the general meeting is quite common. As a result, decisions that, as a general rule, should be taken by the board of directors, are taken by the general meeting, whose competence does not include this. These include, for example, decisions related to determining the market value of the acquired property, approving major transactions (clause 2, article 79 of Law No. 208-FZ) and transactions in which there is an interest (Clause 2, Article 83 of Law No. 208 -FZ). Such decisions are not valid (decision of the Arbitration Court of the Chuvash Republic of December 13, 2005 in case No. А79-908/04-SK2-843). In addition, violations in the formation of the management body that appoints the executive management body of the company may cast doubt on the legality of the actions of the head of the company appointed by such a management body.
Making transactions without approval. In the charter of the target company, it is necessary to clarify the list of transactions that require approval by the competent authorities. In accordance with the current legislation, such transactions can include not only large and interested parties, but also those to which the charter extends approval procedures (Articles 79, 81 of Law No. 208-FZ, Articles 45, 46 of Law No. 14-FZ ). The fact of approval is reflected in the minutes of the general meeting or decisions of the board of directors. Transactions made without appropriate approval may be declared invalid (clause 5 of article 45, clause 5 of article 46 of Law No. 14-FZ, clause 6 of Article 79, clause 1 of Article 84 of Law No. 208-FZ) . The result may be the loss of the company's assets (Decree of the Federal Arbitration Court of the Far Eastern District dated December 16, 2009 No. F03-7171 / 2009).
Bankruptcy. When analyzing transactions, it is necessary, if possible, to assess the financial condition of the company's counterparty for possible risks of its bankruptcy in the short term. In addition, it will be necessary to check whether bankruptcy proceedings have already been initiated against the company itself. If a company is close to bankruptcy, or an application has already been filed with the arbitration court to declare it bankrupt, then some of the transactions of such a company may be declared invalid. These include, for example, suspicious transactions (completed after the acceptance of the application or a year before - Article 61.2 of the Federal Law of October 26, 2002 No. 127-FZ "On Insolvency (Bankruptcy)", hereinafter - Law No. 127-FZ), transactions in which preference is given to any of the creditors (completed after the acceptance of the application or a month before - Article 61.3 of Law No. 127-FZ), transactions made in the course of financial recovery (Article 82 of Law No. 127-FZ), and etc.
Violation of the legislation on privatization. Despite their apparent antiquity, violations of the law that occurred during the acquisition of assets in the privatization process may still contain certain risks. So, for example, there are cases of challenging the results of investment tenders, invalidating privatization plans in terms of including objects in them, the privatization of which is prohibited (for example, objects of defense, cultural, household purposes, public lands) (decisions of the Federal Arbitration Court of the Moscow District No. KG-A40/10652-08 of November 19, 2008; No. KG-A41/73-09 of February 10, 2009). To avoid such situations, it is necessary to clarify whether the company participated in the privatization process. If yes, then it is recommended to ask for the decision on privatization, the privatization plan, documents on the issue of securities during privatization for verification. It is impossible to foresee everything here, but the mere existence of these documents, verification of the powers of the persons who signed the decision, who approved the application for privatization, should remove a number of questions. If the acquired company owns an object, the privatization of which was prohibited, then at any time there is a risk of contesting the ownership right at the suit of the Federal Property Management Agency.
Making a transaction without the consent of the antimonopoly authority. The absence of the consent or notification of the antimonopoly authority about the company's transactions listed in Articles 28 and 29 of the Federal Law of July 26, 2006 No. 135-FZ "On Protection of Competition" may lead to their recognition as invalid (clauses 16, 17 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of June 30 .08 No. 30 “On some issues arising in connection with the application of antimonopoly legislation by arbitration courts”). The limitation period for a claim to declare the specified transaction invalid is one year and begins to run from the day when the antimonopoly authority learned or should have learned about the transaction in violation of the law (clause 2 of article 181 of the Civil Code of the Russian Federation). To make sure that consent has been obtained, you need to check whether the company has an opinion from the antimonopoly authority on the approval of the transaction. You can also visit the official website of the Federal Antimonopoly Service (www.fas.gov.ru). Related question: For what period do you need to check transactions with the company's assets? Ideally, it is better to check all transactions ever made with the property of the company. But if this is not possible, then it is recommended to check transactions for the last three years, based on the limitation period for applying the consequences of the invalidity of a void transaction and the total limitation period of three years (Articles 181, 196 of the Civil Code of the Russian Federation).
In the information system of the company's lawyer, upon request “checking the counterparty”, you can also find an article on how to make sure that the partner with whom the transaction is made for the first time is trustworthy: “Preliminary check of the counterparty. What documents will help to verify the legitimacy of the transaction.
In this article, we will tell you how, using available means, you can partially check a legal entity for solvency. This will be useful to those who have already concluded an agreement with a particular legal entity, and to those who are going to sue the debtor.
After all, a large number of decisions are not executed at all, and it is advisable for you to know in advance whether it is worth spending time and effort on the court or not.
This instruction will be useful to those who are going to buy an apartment in a new building.
You can also order a check of the builder in our company.
As a result of checking the developer, we provide you with a report produced according to our complete test procedure developer.
An example of a developer's full inspection report can be viewed here: "-2018".
Checking cost.
How it happens in practice ( from the experience of one of the shareholders):
There is a well-promoted brand, let's call it “GK Building Fast”, and this GK includes Romashka LLC, Bad Business LLC, Building Bad LLC. There are 3 construction objects on the website of the company "GK Stroyim Bystroim", the site is serious, and the GK itself has many offices.
The first impression is that the company is solid, well-known, perhaps even one of their friends bought an apartment from them once. As a result, you decide to conclude an agreement with GC Building Bystro. In the official office, where the inscriptions “GK We build quickly” flaunt, the manager in company uniform radiates reliability, you are presented with branded booklets with the logo of “GK We build quickly” and there is no doubt that you are dealing with a reputable company.
If you suddenly start asking for legal documents, then the manager's rosy smile turns into an evil one, as if you asked something forbidden, something that you should never talk about. To your question, why the contract is concluded not with "GK Stroim quickly", but with "Gibloe Delo" LLC, the manager gives you a pre-prepared answer that "Gibloe Delo" LLC is the official exclusive seller of the developer, and besides, the developer is included in holding group of companies. As a result, the contract is concluded without looking, without thinking, without verification. In the future, the Client will learn about the problems of the developer. The client tries to call the sales office of "GK Building Bystrom", but there he is politely sent to the developer, and they explain that the office where they concluded the contract is just a sales office and has nothing to do with the developer. After endless promises from the Developer, the client begins to search for information on the Internet, finds forums of equity holders who, like him, thoughtlessly entered into an agreement with an unverified Developer. As a result, the client understands that it was necessary to thoroughly check the documents. It's good if the endless waiting for an apartment eventually ends in getting it, but statistics show that there are more than 90 problematic construction sites in Moscow and the Moscow Region.
So, let's begin.
Signs of a bad company:
- The company is reluctant to provide any documents and answers questions related to the legal purity of the transaction. They react negatively to any of your questions, as if you are accusing them of fraud.
- The company is often sued.
- The company has outstanding writ of execution. That is, the debt is confirmed in court and not paid voluntarily.
- The company has a lot of negative reviews.
- The contracts that you enter into have a different form from the established 214-FZ.
How to check a company for solvency.
Extract from the Unified State Register of Legal Entities.
The first thing to do is to get an extract from the Unified State Register of Legal Entities for the legal entity with which you have an agreement, on the website of the tax office.
Specify the TIN or OGRN of the developer or the name, enter the verification code and download the extract.
Also note when the CEO was elected. If the change took place recently and numerous companies “hang” on us, then this may indicate that the company is preparing for bankruptcy. The general director is changed to the so-called "nominal" director in order to avoid criminal liability under Art. 315 of the Criminal Code (Non-execution of a court verdict, court decision or other judicial act). Usually, while a house is being built, the company is managed by a normal CEO, this is necessary to attract investors, loans, etc. But as soon as the time comes to pay the bills, the directors are changed to a nominal one, to whom no one will ever even give out a loan. But the company no longer needs them, because it simply rushes to the mercy of fate. If the change of director happened recently, then this is a bad sign.
The CEO information looks like this:
The TIN of the director is not present in all statements (it is not on the picture), because Not everyone has a TIN. If it is, be sure to write it down.
Also useful information for us will be the date of registration of the legal entity.
The older the company, the more reliable it is. If the company was opened quite recently, and the brand, according to the developer, has existed for much longer, then think about why they closed the company that existed before? If the manager of the developer tells you that they have been working on the real estate market for more than 20 years, and the company with which you enter into an agreement has existed for only 5 years, this means that the brand is registered to another legal entity that owns all the assets of the company, and the person with which you enter into an agreement, was created specifically in order to liquidate all debts in case of trouble without loss for the owners.
Whether the company files a tax return or not.
If it does not give up, then the conclusion is simple - nothing good can be expected from such a company. If the company fails to file a tax return, the Federal Tax Service may freeze all of the company's accounts. Therefore, the company will not be able to function normally, this is a bad sign.
How to find out for which company a trademark is registered.
It is very good if you enter into an agreement with the company for which the brand is registered. The brand is registered to the company where there is money and assets, the brand is the most expensive asset of the company. How can I find out which company has a trademark registered?
You can ask the builder directly. If they answer that it is for the company with which the contract will be concluded, ask for a copy.
It is important that the company name and address exactly match the name and address of the legal entity named on the certificate.
On this site you can get information on the trademark and the legal entity to which it is registered.
In addition to information on trademarks, on this site you will receive a lot of other useful information.
How to determine the developer company - the legal entity with which you will conclude an agreement.
It is important to correctly identify the developer and check it out. If you check the legal entity for which the brand is registered, then the result of the check may be positive, since all assets are concentrated on the parent company, but if you check the Developer, the result of the check may be quite the opposite.
Details of a legal entity can be taken, as a rule, on the "Contacts" tab or in the project declaration, which must be posted on the website. It is important to check the details specified in the declaration posted on the website with other permits. If there is no such information on the site, then this is a minus. This means that the company is hiding something, because trustworthy companies post full details on their website, including bank details. Why does the group of companies not advertise the details of the entire group?
Because there are certainly companies that are part of the group or were once part of it and have a dark history - such as an unfinished house or completed, but with a delay, for example, of 5 years. Knowing the entire list of companies included in the group, you can already check the entire history of the company. Here firms also hide all affiliated legal entities.
We check the director for the nomination.
A nominee director is a person who is legally listed as a general director and bears all legal responsibility, while the actual management of the company is carried out by another person. The nominee director is actually a homeless person who doesn't care that debts or any criminal liability will "hang" on him.
To check the director for rating, you need to know the TIN of the general director. We recognized him in the extract Unified State Register of Legal Entities.
Next, go to the site: https://focus.kontur.ru, https://www.kartoteka.ru,enter the TIN and see the results. If there are a lot of companies listed for this individual, then this may indicate the rating of the general director.
If the director is a nominee, then the company has already prepared in all respects to keep the defense from creditors, government agencies and other persons who make certain demands on the company. If the developer's company is run by a homeless person, then cooperation with such a company should be refrained from.
Analysis of the judicial work of the company.
A very important indicator. We go to the website of the card index of courts: https://kad.arbitr.ru https://www.1cont.ru/ , https://ras.arbitr.ru, https://sudact.ru/
Enter the company name and click start.
Next, we analyze how many court cases the company has. If the company is mainly listed as a Respondent, then this is a bad indicator, which means that the company does not pay contractors, suppliers. This may indicate the financial problems of the company. The company is just wasting time. You also need to analyze the amount of debt. If the amounts are small, then this is not important for a large developer. If the company acts as a Plaintiff, then on the one hand, this may indicate that the company is stable and the owner will not leave it. But on the other hand, it may indicate financial problems. If the amount of the claim is large, it means that the company did not receive the money it expected, and this may ultimately undermine the financial stability of the company. The subject matter of the litigation will be of fundamental importance. Pay attention to who the Developer is suing: with Vodokanal, Elektroset or the designer - this may affect the timing of the completion of the house. Well, it's not good at all if the company goes bankrupt. Such cases are marked with a red letter "B".
In short, the court cases of a company can tell a lot about the position of the company.
Company's outstanding debts.
On the FSSP website https://fssprus.ru/iss/ip/ you can find out about pending enforcement proceedings.
Enter a company name and select a region. The region is determined by an extract from the Unified State Register of Legal Entities.
If a company has a lot of debts for large sums, then this says only one thing - there is no money. Pay attention to the period when enforcement proceedings were initiated. If this period is within two months, then it is quite possible that the writ of execution will soon be executed. And if the FSSP website has outstanding debts more than two months old, then this is definitely a bad sign. Litigating a company like this is a waste of time and effort. But even the very fact of the presence of writ of execution may indicate a lack of money in the Developer's settlement accounts. When the company has money, the sheet is presented immediately to the bank and the money is debited within three days. They get to the bailiffs when there is no money in the company's accounts and, in order to execute the decision, it is necessary to seize the property. Pay attention to what type of debt is registered with the company. If this is a state duty or a fine, then there is no reason to worry. State duties are sent by the court directly to the bailiff, bypassing the company's accounts. Enforcement proceedings are not a quick process, so the debt can hang on the company for a long time.
How else can you check the company.
Check the company's website.
You can check the company's website on various Internet services. We use this: https://www.cy-pr.com/
We go in, enter the site to be checked into the analysis line and get a selection. In the sample, we are interested in the date of creation of the site and the owner of the site, that is, to whom the site is registered. For example, if the site was created in 2017, and the legal entity was registered in 2018, then ask yourself: how many companies did these individuals have during the period from 2017 to 2018 and where are they now? A good indicator would be if the site is registered to the legal entity you are checking.
But if the site is registered to another legal entity, this is not always a bad thing.The site is often registered with an ISP or FL, this often happens. It will be suspicious if, for example, the person being checked is Romashka LLC, and the site is listed on Romashka 2 LLC. The most reliable criterion for evaluating a company is high site traffic, which indicates that search engines love this site, and this may indicate the seriousness of the company, the presence of a good budget for Internet marketing. And a good budget can only be in companies with well-thought-out business processes. A one-day company, as a rule, and the site appears in the search only in advertising results. When choosing a company on the Internet, focus on natural results. Search engines will do the primary selection of sites for you.
Currently, search engines evaluate sites according to numerous criteria - more than 1000 indicators in total, including whether the company has an office, whether details are specified, whether there is a telephone, etc. One of the most important indicators is the evaluation of the behavior of previous users. Let's say you are looking for: a lawyer to recover a penalty from a developer through Arbitration. We wrote out a list of companies for ourselves, went to see them, in the end you didn’t like something, and after a while you returned to the search with the same request. As a result, your choice fell on company number two. This behavior has become typical for most users, as a result, search engines began to rank the site of company No. 2 better. It is impossible to gain a foothold in the natural issuance of companies that provide this or that service poorly. It's long and expensive, one-day companies don't work like that. This ranking does not happen with sites that appear in the SERPs through ads. If you want to receive high-quality services, goods, choose sites from natural search results. Search robots and users have already done this for you, so join the choice of the majority! It is necessary to understand which sites are displayed in the search with the help of natural results, and which ones with the help of advertising.
IN The top is usually fixed by the market leader companies.
It will not be superfluous to check the company for participation in government contracts.
On this commercial site: https://new.tenderguru.ru/ you can learn about the history of the company's participation in government contracts.
If a company participates in tenders and auctions, then this in itself is a good sign. This may mean that the company is active and the owner needs it. If a company wins a certain tender, then it is even better, since government contracts impose quite stringent requirements for companies.
Company group.
If the developer is part of a group of companies, this is not always a good sign. In Russia, the construction business is built in such a way as to protect itself from possible risks: from possible fines from government agencies, from equity holders who suddenly decide to collect a penalty for delaying the transfer of an apartment, from claims from contractors, etc. etc. The group of companies is built in such a way that the parent (brand) company makes a profit and stays afloat, and all responsibility falls on the newly created legal entity. a person with no assets. In this case, nothing threatens the business, the owner liquidates the company with all debts, and the rest of the legal entities. faces continue to work without loss. By concluding an agreement with one of the legal entities belonging to the group of companies, you hope that the company has a long history, good assets, and in case of problems, there will be something to take from it.
In fact, the opposite situation turns out: in the official office of the company, you sign an agreement with another legal entity that has absolutely nothing to do with the branded large company.So, the company with which you will conclude an agreement most likely has neither its office nor property, nothing but promises. Most large and small developers work according to this model, and people do not understand when they conclude a contract that it is impossible to get anything from the Developer. Only after receiving a decision from the bailiff on the impossibility of executing the court decision and closing the enforcement proceedings, the person understands that the business was originally built in such a way that the group of companies did not pay its debts. Nothing threatens the brand, because the companies are not legally connected in any way, the developer opens another LLC, and the story of deceived equity holders is repeated again. And all the accusations directed at the promoted brand can backfire. The company may file a lawsuit against libel distributors.
If you have just a group of companies in front of you, then you need to check the entire group. And if at least one company in the group has a bad history with deceived equity holders, it means that dishonest people are behind the group of companies, and the situation with not getting an apartment may repeat itself.
A good sign will be the conclusion of an agreement with the company for which the trademark is registered.
As a rule, all large developers consist of a group of legal entities. This is not always a bad thing, and it does not always mean avoiding responsibility. There are companies that absolutely openly show their structure, reporting, and, most importantly for us, they can be trusted with their money in exchange for built square meters.
The purpose of this article is to protect the buyer. Every day in our practice, we encounter clients who, when buying an apartment, do not even imagine how risky this relationship can be. In fact, many developments are financial pyramids, from participation in which you can win or lose. To prevent the signing of the contract from turning into a game of roulette, when the player bets all his savings on red, weigh all the risks thoroughly, check the contract and documents of the Developer or contact a lawyer who will check the risks, and you will only have to read the report and make an informed decision. Our company is ready to check the solvency of the developer or counterparty for you.
Definition
Net assets- this is the value determined by subtracting from the amount of the organization's assets, the amount of its liabilities. Net assets is the amount that will remain to the founders (shareholders) of the organization after the sale of all its assets and the repayment of all debts.
The net assets indicator is one of the few financial indicators, the calculation of which is unequivocally determined by the legislation of the Russian Federation. The procedure for calculating net assets was approved by the Order of the Ministry of Finance of Russia dated August 28, 2014 N 84n "On Approval of the Procedure for Determining the Cost of Net Assets". This procedure is applied by joint-stock companies, limited liability companies, state unitary enterprises, municipal unitary enterprises, production cooperatives, housing savings cooperatives, economic partnerships.
Calculation (formula)
The calculation comes down to determining the difference between assets and liabilities (liabilities), which are defined as follows.
The composition of the assets accepted for calculation includes all assets of the organization, with the exception of the receivables of the founders (participants, shareholders, owners, members) for contributions (contributions) to the authorized capital (authorized fund, share fund, share capital), for payment of shares.
The composition of liabilities accepted for calculation includes all liabilities, except deferred income. But not all deferred income, but those that recognized as an organization in connection with the receipt of state assistance, as well as in connection with the gratuitous receipt of property. These incomes are actually the organization's own capital, therefore, for the purposes of calculating the value of net assets, they are excluded from the short-term liabilities section of the balance sheet (line 1530).
Those. the formula for calculating net assets according to the balance sheet of the enterprise is as follows:
Net assets \u003d (line 1600 - memory) - (line 1400 + line 1500 - DBP)
where ZU is the debt of the founders on contributions to the authorized capital (it is not separately allocated in the Balance sheet and is reflected in short-term receivables);
DBP - deferred income recognized by the organization in connection with the receipt of state assistance, as well as in connection with the gratuitous receipt of property.
An alternative way to calculate net asset value giving exactly the same result as the formula above would be:
Net assets \u003d str. 1300 - memory + DBP
Normal value
The indicator of net assets, known in Western practice as net assets or net worth, is a key indicator of the performance of any commercial organization. The organization's net assets must be at least positive. Negative net assets are a sign of the insolvency of the organization, indicating that the company is completely dependent on creditors and does not have its own funds.
Net assets should not only be positive, but also exceed the authorized capital of the organization. This means that in the course of its activities, the organization not only did not waste the funds originally contributed by the owner, but also ensured their growth. Net assets less than the authorized capital are allowed only in the first year of operation of newly created enterprises. In subsequent years, if net assets become less than the authorized capital, the civil code and legislation on joint-stock companies require that the authorized capital be reduced to the amount of net assets. If the organization's authorized capital is already at a minimum level, the question of its further existence is raised.
net asset method
In valuation activities, the net asset method is used as one of the methods for assessing the value of a business. With this method, the appraiser uses data on the net assets of the organization according to the financial statements, previously adjusted based on their own estimated values of the market value of property and liabilities.
Net assets - formula for calculating the balance sheet 2018-2019years approved by the Ministry of Finance of Russia. How to calculate the net assets of a company? What conclusions can be drawn by analyzing the value of the company's net assets? How often should net assets be calculated? You will find answers to these questions in our article.
General concept of net assets
Evaluation of the effectiveness of activities and successful planning of the work of modern companies is impossible without analyzing their economic performance. One of the most important values among such indicators is the value of net assets (NA).
The value of net assets is the difference between the value of all the organization's assets (property, land, cash, etc.) and the sum of all its liabilities (debts on taxes and payments to the budget, loans, etc.). Simply put, net assets are those funds of the company that will remain after repayment of debts to creditors.
Calculation of net assets must be made once a year and reflected in the annual financial statements in line 3600 of section 3 of the Statement of changes in equity. It is also done, if necessary, to obtain information about the current financial situation, pay interim dividends or the actual value of the share to the participant.
How to calculate the net asset value of the balance sheet 2018-2019 (formula)
To find out, let's turn to the order of the Ministry of Finance of Russia dated August 28, 2014 No. 84n, which provides the procedure for calculating them.
It is valid for companies of the following forms of ownership:
- joint-stock companies (public and non-public);
- limited liability companies;
- state and municipal unitary enterprises;
- cooperatives (production and housing accumulative);
- business partnerships.
According to Order No. 84n, to calculate the company's net assets, the value of liabilities must be deducted from the value of assets. For this, the formula is used:
CHA \u003d (VAO + OJSC - ZU - ZVA) - (TO + KO - DBP),
NA - net assets;
HLW - non-current assets of the organization;
OJSC - current assets of the organization;
ZU - the debt of the founders to the organization for filling shares in the authorized capital;
ZVA - the debt formed during the redemption of own shares;
DO - long-term obligations;
KO - short-term liabilities;
DBP - deferred income (in the form of state aid and gratuitous receipt of property).
To calculate net assets, you can also use the data contained in the company's balance sheet. To calculate the value of net assets on the balance sheet, the formula can be modified:
CHA \u003d (line 1600 - memory) - (line 1400 + line 1500 - DBP).
Read more about the values given in this formula in the article. "Net assets - what is it in the balance sheet (nuances)?" .
Please note that it is not enough just to make a calculation on a calculator, it must also be completed. And there is currently no approved form. Companies must develop the 2018-2019 net assets calculation form on their own and approve it as an annex to the accounting policy. However, earlier, prior to the issuance of Order No. 84n of the Ministry of Finance dated August 28, 2014, the form given in the appendix to Order No. 10 of the Ministry of Finance of the Russian Federation and the Federal Commission for Securities of Russia dated January 29, 2003 No. 03-6 / pz was used to calculate net assets. The form of this form lists all those indicators that are required to calculate net assets even now, therefore, we consider it acceptable to use it (after its approval in the accounting policy of the organization).
You can download this form from our website:
Net Asset Value Analysis
It is easy to conclude that when analyzing net assets, the output should be positive. Negative will indicate that the company is unprofitable and with a high degree of probability in the near future may become completely insolvent, that is, insolvent. An exception can only be a recently opened company, since during its existence the invested funds did not have time to justify themselves and did not bring income for objective reasons. Thus, the dynamics of the calculation of net assets is one of the key indicators of the company's financial condition.
Note that in the calculation and evaluation of net assets, the authorized capital of the company plays an important role. If the amount of net assets exceeds the value of the authorized capital, this indicates the well-being of the company. If net assets at some stage become less than the amount of the authorized capital, this indicates the opposite: the organization is operating at a loss.
What consequences await the company if net assets are less than the authorized capital, read.
We repeat: this situation is acceptable only for the 1st year of the company's operation. However, if after this period the situation does not change in a positive direction, the company's management is obliged to reduce the size of the authorized capital to the amount of net assets. If this figure is equal to the minimum indicators established by law or less than them, the question of closing the enterprise should be raised (clause 4, article 30 of the law "On LLC" dated 08.02.1998 No. 14-FZ).
Read more about the consequences of negative NA values in the material "What are the implications of negative net assets?" .
Results
The value of net assets is one of the most important indicators of the financial solvency of the organization. The higher it is, the more successful the organization and the more attractive it is for investment. Only an organization with high net assets can guarantee the interests of its creditors. That is why it is necessary to be very careful in assessing the value of a company's net assets.