Bogushevichi
OJSC "Bogushevichi"
UNP: 600036439 · Kovalenka St., Bogushevichi agro-town, Berezino District, Minsk Region 223336, Republic of Belarus
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 12 317 | 10 715 |
| Intangible assets | — | — |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 239 | 239 |
| Long-term financial investments | — | — |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 12 556 | 10 954 |
| Inventories | 7 470 | 5 890 |
| — materials | 3 643 | 2 325 |
| — work in progress | 1 272 | 1 495 |
| — finished goods and merchandise | 5 | 4 |
| — goods shipped | — | — |
| Deferred expenses | — | — |
| VAT on acquired goods, works, services | 866 | 866 |
| Short-term receivables | 515 | 356 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 2 | 1 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 8 853 | 7 113 |
| BALANCE (assets) | 21 409 | 18 067 |
| Charter capital | 4 731 | 4 731 |
| Reserve capital | — | — |
| Additional capital | 5 045 | 3 801 |
| Retained earnings (uncovered loss) | 632 | 423 |
| Total Section III (equity) | 10 408 | 8 955 |
| Long-term loans and borrowings | 244 | 334 |
| Long-term lease liabilities | 2 472 | 1 970 |
| Deferred income | — | — |
| Total Section IV (long-term liabilities) | 2 716 | 2 304 |
| Short-term loans and borrowings | 392 | 502 |
| Current portion of long-term liabilities | 65 | 25 |
| Short-term payables | 7 828 | 6 281 |
| — to suppliers, contractors, providers | 7 444 | 5 704 |
| — on payroll | 138 | 129 |
| — on lease payments | 66 | 380 |
| Total Section V (short-term liabilities) | 8 285 | 6 808 |
| BALANCE (equity and liabilities) | 21 409 | 18 067 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Deep operating loss (K2_sales -25.2%): structurally loss-making core production with rising cost of sales (+5.2% cost vs +5.4% revenue)
- Net profit held up only by other income: sales loss -1,416 is 'rescued' by other current-activity income 1,470, bringing F2.090 to near-zero (-52). Without the 1,470, the enterprise is structurally loss-making.
- Cash critically low: 2k BYN at year-end (≈700 USD), against revenue 5,622k BYN — that is <0.04% of revenue, zero liquidity buffer.
- Short-term payables 7,828k BYN = 1.4x revenue and 94% of all of Section V; growth +25%; to suppliers 7,444 = 95% of payables — payments-by-stretching, not cash.
- K1 current ratio 1.069 — below the 1.25 norm; liquidity improved marginally (from 1.045) but stays in the problem zone.
- K1_SOS -0.243 — permanent capital covers long-term assets at 1.045x (at the norm boundary, no cushion); slightly improved (-0.281 → -0.243).
- A possible channel of operating-level state support: opaque mechanism (F2.070 1,470k BYN yearly); not recorded as targeted financing in F1.650/F3.156. Possible channels: tax breaks, budget subsidies under an agri program, receivables write-off. Remains an open question.
- Disposal of fixed assets as a source: F2.101 379k BYN (+1700% YoY) — selling long-term assets plugs the hole in current activity. Not a sustainable source.
- Lease obligations rising (1,970 → 2,472, +25.5%) while revenue is +5.4% — debt-financed asset accumulation outpaces revenue.
- OCF margin +2.86% (vs +0.38%) — operating cash flow improved, though it stays micro-positive.
- Bank debt (F1.510 + F1.610) down -23.9% (836 → 636k BYN) — debt structure shifting from bank to lease (asset-backed).
- Capital grows via revaluation (additional +1,244): the asset base is not contracting.
- Work-in-progress shrinking (1,495 → 1,272, -15%) against rising stocks overall — possibly completion of production cycles.
Recommendation
OJSC "Bogushevichi" is a micro-enterprise of agricultural profile (revenue BYN 5,622k, balance sheet BYN 21,409k) in an agro-town of the Berezino district, Minsk region, 96.3% state-owned and subordinate to the district executive committee. The enterprise shows a classic district-level agribusiness pattern: structurally loss-making core production (K2_sales −25.2%, worsening) with positive net profit (+BYN 209k) achieved solely through "other income from current activities" (BYN 1,470k annually) — an opaque mechanism that does NOT match the D1 canon (income channel via F1.650) or D2 (capital channel via owner contributions), but by profile strongly resembles operating-level state support. The cash position is critically weak (BYN 2k at year-end), and short-term payables to suppliers of BYN 7,444k function as stretch financing.
The restructuring outcome was chosen because (a) operating non-viability requires structural change, not a one-off capex injection (rules out state_investment); (b) the sector is not strategic — its specificity is serving a local agro-town (rules out state_investment on strategic grounds); (c) full liquidation is disproportionate: the district needs a socio-economic anchor, the assets carry operational load, and net profit remains positive (rules out liquidation); (d) privatization is impossible without an operating-viability fix — the market will not buy a loss-making agribusiness asset in a rural district village without either a solid land package or prior reform (rules out privatization as the first step). Confidence MEDIUM-LOW due to the opacity of the support mechanism and dependence on investment income (asset sales), which is not sustainable.