Polesie (Chechersk District)

OJSC Polesie

UNP: 490315231 · Polesie village, Chechersk District, Gomel Oblast 247000

Subsidy-dependentDistrict-levelPrivatization

Identification

UNP490315231
OKED01500 — mixed farming
Legal formOJSC
Governing bodyChechersk District Executive Committee
State share100%
AddressPolesie village, Chechersk District, Gomel Oblast 247000

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets11 18211 231
Total Section I (long-term assets)11 18211 231
Inventories3 4273 431
— materials2 0391 950
— work in progress561580
VAT on acquired goods, works, services2 1162 205
Short-term receivables35150
Cash and cash equivalents103
Total Section II (short-term assets)5 9045 689
BALANCE (assets)17 08616 920
Charter capital2 0252 025
Additional capital5 1904 977
Retained earnings (uncovered loss)269219
Total Section III (equity)7 4847 221
Long-term loans and borrowings170212
Long-term lease liabilities4991 001
Deferred income3 0742 639
Total Section IV (long-term liabilities)8 5495 602
Short-term loans and borrowings47
Current portion of long-term liabilities61
Short-term payables1 0533 989
— to suppliers, contractors, providers3021 905
— on payroll2018
— on lease payments475148
Total Section V (short-term liabilities)1 0534 097
BALANCE (equity and liabilities)17 08616 920

Computed metrics

Current ratio
5.607
Prior: 1.389(+303.8%)
F1.290 / F1.690
Absolute liquidity
0.009
Prior: 0.001
(F1.260 + F1.270) / F1.690
Own working capital ratio
-0.626
Prior: -0.705
(F1.490 - F1.190) / F1.290
Sales profitability
-12.66%
Prior: -11.23%(-1.43 pp)
F2.060 / F2.010 × 100%
Net profitability
3.02%
Prior: 3.36%(-0.34 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
11.23%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
-34.36%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.807
Prior: 0.812
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
8.11%
Prior: 3.31%
F4.040 / F2.010 × 100%

Integrity checks

Checks passed: 6 of 6

Balance sheet balances (assets = liabilities)
Cash-flow integrity
Cash-flow residuals
Cash position
Capital transition
Profit consistency

Signals

Red flags
  • Core production is loss-making: profit on sales F2.060 −224 → −BYN 281k, cost of sales F2.020 2,409 exceeds revenue F2.010 2,219 — gross profit F2.030 is already negative at −190.F2.060 · F2.020 · F2.010 · F2.030
  • There is no own working capital: (F1.490 7,484 − F1.190 11,182) / F1.290 5,904 = −0.63 against −0.71 a year earlier — long-term assets are not covered by equity.F1.490 · F1.190 · F1.290
Yellow flags
  • The positive annual result rests on targeted state support: other income from current activity F2.070 751 → BYN 1,453k covers the operating loss and lifts current activity F2.090 to +73 and the year to net profit F2.210 67. Without this income the result is negative, and it is not a one-off: 751 passed through the same line a year earlier.F2.070 · F2.090 · F2.210 · F2.060
  • The margin is compressing: cost of sales F2.020 2,126 → 2,409 (+13.3%) grows faster than revenue F2.010 1,995 → 2,219 (+11.2%); sales profitability F2.060/F2.010 −11.2% → −12.7%.F2.020 · F2.010 · F2.060
  • Equity is largely revaluation-based: additional capital F1.450 4,977 → BYN 5,190k against an earned base F1.410 2,025 + F1.460 269 = 2,294, with a total F1.490 7,484 and long-term assets F1.190 11,182.F1.450 · F1.410 · F1.460 · F1.490 · F1.190
  • The owner withdraws funds under a subsidised model: dividends paid F4.092 25 → BYN 17k against net profit F2.210 67 and state-support income F2.070 1,453.F4.092 · F2.210 · F2.070
Green signals
  • Operating cash flow is positive and rising: F4.040 66 → BYN 180k, its ratio to revenue F2.010 3.3% → 8.1%; the cash balance F4.130 3 → 10.F4.040 · F2.010 · F4.130
  • Credit debt and supplier settlements were reduced: long-term loans F1.510 212 → 170, lease liabilities F1.520 1,001 → 499, payables F1.630 3,989 → 1,053, including suppliers F1.631 1,905 → 302. The obligations did not disappear but shifted into the long-term section: F1.590 5,602 → 8,549 while short-term liabilities F1.690 fell 4,097 → 1,053 — which is what explains the jump in the current ratio.F1.510 · F1.520 · F1.630 · F1.631 · F1.590 · F1.690
  • The earned capital base is growing: retained earnings F1.460 219 → BYN 269k, net profit F2.210 positive in both years (67 and 67). The increase in the total F1.490 7,221 → 7,484 is however mostly revaluation — the revaluation result F2.220 is 213.F1.460 · F2.210 · F1.490 · F2.220
  • Revenue is growing: F2.010 1,995 → BYN 2,219k (+11.2%), and the growth is confirmed in cash — receipts from customers F4.021 1,673 → 1,874.F2.010 · F4.021

Recommendation

Suggested outcome
Privatization
Category
Stable
Health score
1.01
Confidence level
Medium

OJSC Polesie is a district-level agricultural enterprise (Chechersk District, Gomel Oblast, formerly the Kommunar collective farm) in full state ownership (state share 100%). Its financial position is characterized by a sustained structural dependence on state support: core production activity is loss-making (profit on sales −281k BYN, cost of sales exceeds revenue), while the positive bottom-line result (net profit 67k BYN) is formed solely through targeted income related to state support (1,453k BYN). The statements record this directly: the loss excluding state support is 1,386k BYN.

Recommendation: Privatization — as a mechanism for removing the permanent subsidy burden from the budget: the enterprise retains a working production base, positive and growing cash flow and manageable debt, i.e. it is amenable to remediation — but the source of that remediation (review of the cost structure, the production profile and the debt load) should be a private owner rather than continued state support. The result's dependence on subsidies limits investment attractiveness and the asset's starting valuation: without support the business is loss-making, and this circumstance must be reflected directly in the terms of sale.

Why privatization. At the same time the enterprise is not in an insolvency crisis. Cash flow from current activity is positive and growing (180k BYN), the credit load is declining (long-term loans, leasing and payables reduced), and real accumulated capital is positive. The formally high current liquidity (5.6) reflects not strength but a shift of obligations into the long-term section; the real weakness is the absence of own working capital and the unprofitability of production.

Confidence: MEDIUM. The source is the 2024 annual reporting, a complete F1–F4 set; all 6 cross-form consistency checks pass.

Polesie (Chechersk District) — BELSOE