Minsk PLA
OJSC Minsk Production Leather Association
UNP: 600208238 · Gatovo agro-town, Minsk District, Minsk Oblast
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 54 273 | 49 786 |
| Intangible assets | 125 | 153 |
| Investments in long-term assets | 5 016 | 5 608 |
| Long-term financial investments | 14 | 14 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 59 429 | 55 562 |
| Inventories | 55 609 | 43 254 |
| — materials | 13 575 | 12 140 |
| — work in progress | 13 397 | 9 355 |
| — finished goods and merchandise | 28 637 | 21 759 |
| — goods shipped | — | — |
| Deferred expenses | 213 | 175 |
| VAT on acquired goods, works, services | 248 | 142 |
| Short-term receivables | 7 739 | 9 028 |
| Short-term financial investments | — | 3 |
| Cash and cash equivalents | 602 | 1 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 64 411 | 52 603 |
| BALANCE (assets) | 123 840 | 108 165 |
| Charter capital | 19 545 | 19 545 |
| Reserve capital | — | — |
| Additional capital | 24 381 | 20 562 |
| Retained earnings (uncovered loss) | 16 794 | 17 405 |
| Total Section III (equity) | 60 720 | 57 512 |
| Long-term loans and borrowings | 7 715 | 7 458 |
| Long-term lease liabilities | — | — |
| Deferred income | 13 467 | 15 006 |
| Total Section IV (long-term liabilities) | 21 186 | 22 467 |
| Short-term loans and borrowings | 2 800 | 1 005 |
| Current portion of long-term liabilities | 6 609 | 4 963 |
| Short-term payables | 31 498 | 21 070 |
| — to suppliers, contractors, providers | 29 011 | 18 883 |
| — on payroll | 920 | 890 |
| — on lease payments | — | — |
| Total Section V (short-term liabilities) | 41 934 | 28 186 |
| BALANCE (equity and liabilities) | 123 840 | 108 165 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Collapse in profitability: net profit fell 91% (from 3,377 to 293k); net profitability 0.49% versus 5.72%.
- Debt load up by a quarter: total credit debt +24.25% over the year (short-term loans nearly tripled — from 1,005 to 2,800k).
- Negative operating cash flow: result of current activity −2,049k on revenue of 60,319k.
- Sharp rise in payables to suppliers: from 18,883 to 29,011k (+54%) — a sign of stretched settlements.
- Declining liquidity: current liquidity ratio fell from 1.866 to 1.536 (though remaining above the norm of 1.25).
- Thin working-capital ratio: ratio 0.020 against the norm of 0.15 (own working capital is barely sufficient).
- Compression of sales profitability: profit on sales fell from 5,123 to 2,784k, sales profitability 4.62% versus 8.67%.
- Inventory build-up: up 29% (from 43,254 to 55,609k), including finished goods from 21,759 to 28,637k — possible sales difficulties.
- Revenue stagnation: nominal growth 2.1%, i.e. a decline in real terms accounting for inflation.
- Liquidity above the norm: current liquidity ratio 1.536 against the norm of 1.25 — current liabilities are covered by current assets.
- Positive real equity (excluding revaluation) ~36,339k, revaluation forms only a small part of capital.
- Reduced short-term receivables: from 9,028 to 7,739k.
- Low bankruptcy risk by the enterprise's self-assessment, confirmed by a clean audit opinion.
Recommendation
This leather-industry enterprise (tanning and dressing of leather) with near-full state participation faced a sharp contraction of profitability in 2025. With nominal revenue growth of 2.1%, net profit collapsed 91% (from 3,377 to 293k), and net profitability fell almost to zero (0.49%). The cause is the outpacing growth of costs: cost of sales grew 5.9%, other current expenses 23.8%. At the same time the debt load grew (total credit debt +24.25%, short-term loans almost tripled), payables to suppliers jumped 54%, and operating cash flow remained negative (−2,049k). Yet the balance sheet structurally retains stability: current liquidity of 1.536 is above the norm, real equity is positive and does not rest on revaluation, and bankruptcy risk is assessed as low. The combination of retained solvency with a sharp deterioration in operating efficiency and rising debt points to a need for restructuring — remediation of the cost and debt structure while preserving the viable production core — rather than privatization (the negative profit trajectory is unattractive to a buyer) or liquidation (the enterprise is solvent).