Pinsk Grain-Products Plant
OJSC Pinsk Grain-Products Plant
UNP: 200278860 · 3 Industrialnaya St., Pinsk, Brest Oblast
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 133 456 | 138 550 |
| Intangible assets | 39 | 22 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 2 908 | 662 |
| Long-term financial investments | 2 | 2 |
| Long-term receivables | 2 222 | 2 397 |
| Total Section I (long-term assets) | 138 627 | 141 633 |
| Inventories | 50 696 | 48 832 |
| — materials | 19 989 | 17 268 |
| — work in progress | 11 738 | 8 513 |
| — finished goods and merchandise | 4 281 | 9 812 |
| Deferred expenses | 164 | 235 |
| VAT on acquired goods, works, services | 375 | 444 |
| Short-term receivables | 6 103 | 6 169 |
| Short-term financial investments | 434 | 434 |
| Cash and cash equivalents | 67 | 584 |
| Other short-term assets | 181 | 46 |
| Total Section II (short-term assets) | 58 020 | 56 744 |
| BALANCE (assets) | 196 647 | 198 377 |
| Charter capital | 18 334 | 18 740 |
| Reserve capital | 99 | 99 |
| Additional capital | 41 111 | 36 057 |
| Retained earnings (uncovered loss) | 48 061 | 47 381 |
| Total Section III (equity) | 107 025 | 102 277 |
| Long-term loans and borrowings | 27 747 | 29 479 |
| Long-term lease liabilities | 1 530 | 1 996 |
| Deferred income | 7 796 | 19 767 |
| Total Section IV (long-term liabilities) | 42 275 | 56 830 |
| Short-term loans and borrowings | 28 551 | 26 466 |
| Current portion of long-term liabilities | 4 357 | 1 761 |
| Short-term payables | 14 400 | 11 043 |
| — to suppliers, contractors, providers | 11 859 | 8 702 |
| — on payroll | 782 | 653 |
| — on lease payments | 703 | 679 |
| Total Section V (short-term liabilities) | 47 347 | 39 270 |
| BALANCE (equity and liabilities) | 196 647 | 198 377 |
Computed metrics
Integrity checks
Checks passed: 4 of 6
Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.
Signals
- Negative working-capital ratio: OWC −0.545 (norm ≥0.15). Long-term assets (138,627k BYN) exceed equity (107,025k BYN) — part of non-current assets is financed by borrowed funds.
- Negative cash flow from current activity: −451k BYN (though an improvement from −3,087 a year earlier). Operating activity does not generate positive cash flow.
- Liquidity at the lower bound of the norm: current liquidity ratio 1.225 (norm ≥1.25), down from 1.445 a year earlier on a rise in current liabilities (39,270 → 47,347k BYN).
- Thin profitability on a large turnover: net profitability 1.13%, sales profitability 4.12%. Profit exists and is stable, but the safety margin against cost-of-sales fluctuations is small.
- High interest burden: financial-activity expenses 2,390k BYN (interest payable 2,185) almost entirely consume profit beyond the operating level (result of investing+financial activity −1,436).
- Sharp reduction of finished goods in the warehouse (9,812 → 4,281k BYN) amid a rise in work-in-progress (8,513 → 11,738) — a shift in inventory structure that requires utilization context.
- Revenue is growing: +9.41% (80,909 → 88,524k BYN), above inflation.
- Net profit is positive and grew: 869 → 1,004k BYN (+15.5%).
- Debt load is stable: total loans and borrowings practically unchanged (+0.63%); long-term liabilities reduced (56,830 → 42,275k BYN).
- Equity grows on a real basis: retained earnings 47,381 → 48,061k BYN; real capital (excluding revaluation) is positive.
- Cash flow from current activity improved: from −3,087 to −451k BYN — the negative gap narrowed almost sevenfold.
Recommendation
The enterprise is a large grain-products plant in Pinsk, held in republican ownership (state share 71.51%, governed by the Ministry of Agriculture and Food). The scale is significant: total assets 196.6m BYN, annual revenue 88.5m BYN. The financial profile is that of a steadily working but structurally strained enterprise.
The key weaknesses are structural rather than crisis-driven. The working-capital ratio is negative (−0.545): long-term assets exceed equity, i.e. part of non-current funds is financed by borrowed resources. Cash flow from current activity is negative (−451k BYN), though the negative gap narrowed almost sevenfold over the year (was −3,087). Liquidity is at the lower bound of the norm (1.225 against the norm of 1.25). A high interest burden (interest payable 2,185k BYN) almost entirely absorbs profit beyond the operating level. At the same time revenue is growing (+9.4%), net profit is positive and grew (+15.5%), the debt load is stable, and long-term liabilities were reduced over the year.
Restructuring is recommended: the enterprise is operationally viable (positive and growing net profit, growing revenue), but the financing structure is unbalanced — negative own working capital, negative operating cash flow and a heavy interest burden point to a need to remediate the capital and debt structure rather than to liquidation. Priority directions are restoring positive operating cash flow, reducing dependence on short-term lending of working capital, and reviewing the interest burden. As a grain processor town-forming for Pinsk, the enterprise retains social and food-supply significance, which strengthens the case for rehabilitation before privatization.