2.2 Horizontally - vertical analysis of structure of the Balance Sheet

Table 2.

The balance sheet as of December 31, 2010.

thousands tenge

Balance sheet	on the beginning of 2010		on the end of 2010		Absolute deviations	Growth
Name of indicators	thousands tenge	in % to balance currency	thousands tenge	in % to balance currency
ASSETS, total	17 470 535	100,00%	18 378 821	100,00%	908 286	5%
Current assets, total	8 241 596	47,2%	7 590 057	41,30%	-651 539	-8%
Cash	554 355	3,2%	464 233	2,53%	-90 122	-16%
Other short-term financial assets	1 427 753	8,2%	806 411	4,39%	-621 342	-44%
Short-term trading and other receivables	4 426 723	25,3%	2 570 069	13,98%	-1 856 654	-42%
Current income tax	145 101	0,8%	242 276	1,32%	97 175	67%
Inventory	1 350 637	7,7%	3 082 065	16,77%	1 731 428	128%
Other short-term assets	337 027	1,9%	425 003	2,31%	87 976	26%
Long-term assets, total	9 228 939	52,8%	10 788 764	58,70%	1 559 825	17%
Long-term trading and other receivables	34 963	0,2%	4 430	0,02%	-30 533	-87%
Fixed assets	9 162 259	52,4%	10 759 399	58,54%	1 597 140	17%
Not material assets	31717	0,2%	24935	0,14%	-6 782	-21%
Liabilities, total	17 470 535	100,0%	18 378 821	100,00%	908 286	5%
Current liabilities, total	7 234 697	41,4%	6 719 278	36,56%	-515 419	-7%
Loans	2 555 086	14,6%	1 811 989	9,86%	-743 097	-29%
Short-term trading and other accounts payable	2 043 212	11,7%	2 433 120	13,24%	389 908	19%
The current tax obligations on income tax	2 706	0,0%		0,00%	-2 706	-100%
Вознаграждения работникам	75 598	0,4%	113506	0,62%	37 908	50%
Other short-term obligations	2 558 095	14,6%	2 360 663	12,84%	-197 432	-8%
Continuation of Table 2
Long-term liabilitiess, total	3 041 897	17,4%	2 801 853	15,25%	-240 044	-8%
Other long-term financial liabilities	822 921	4,7%	380 272	2,07%	-442 649	-54%
The postponed tax obligations	577 713	3,3%	667 203	3,63%	89 490	15%
Other long-term liabilities	1 641 263	9,4%	1 754 378	9,55%	113 115	7%
Equity,total	7 193 941	41,2%	8 857 690	48,20%	1 663 749	23%
Authorized capital	835 000	4,8%	2 725 200	14,83%	1 890 200	226%
Retained earnings	789000	4,5%	6132490	33,37%	5 343 490	677%
Reserves	5569941	31,9%		0,00%	-5 569 941	-100%

According to the Balance Sheet at the end of the reporting period was held horizontally, the vertical analysis. The structure of the balance has changed.

ASSETS: On the beginning 2010г. the share of the current assets in currency of balance made 47,2 %.

The greatest specific weight (25,3 % in balance currency) in the current assets for the beginning of the period is the share of short-term receivables. For the end of 2010 despite increase in volume of realization of natural gas and gas-transport services at +11 %, short-term receivables decreased by-42 % in the amount - 1 856 654 thousand tenge.

It is possible to assume that the enterprise reconsidered policy (terms of payment) concerning consumers, having increased realization volume. In this regard specific weight of short-term receivables in currency of balance made for the end of 2010 of 13,98 % against 25,3 % for the period beginning.

For the beginning of 2010 the share of article of Money made 47,2 % in balance currency, and by the end of the period made 41,3 % in balance currency. It means that there was a decrease in the most liquid part of enterprise assets, i.e. there was an outflow of money for-16 %.

However, the share of the Inventory holdings necessary for production on the beginning of 2010 of making 7,7 % in currency of balance, for the end of the period began to make 16,77 % in balance currency since value of an indicator of article Inventory holdings grew by +1 731 428 thousand tenge and rate of a gain made +128 %, i.e. growth rate made 228 %. Increase in the production stocks, finished goods in warehouses testifies about possible not compliance to planned indicators which is expressed in insolvency of sale.

For the beginning of 2010. The share of long-term assets made 52,8 % in balance currency, and the greatest specific weight (52,4 % in balance currency) in long-term assets is the share of Fixed assets. For the end of the reporting period the sum of OS increased by +17 %, and made 58,54 % in balance currency in comparison with an indicator of Fixed assets for the beginning of 2010. This results from the fact that the Company got OS in 2009 for the sum of 1053873 thousand tenge, and in 2010 for the sum of 2034422 thousand tenge. [12]]

LIABILITIES: For the end of 2010 the share of the current obligations on the former has big specific weight though its value decreased in comparison with value for the beginning of 2010: for the beginning of 2010 made 41,4 % in balance currency, and on the end 2010г. began to make 36,56 % since decreased by-7 % or on – 515419 thousand tenge. This fact says that the enterprise debt to separate categories of creditors went down.

The greatest specific weight in the current obligations is the share of articles Loans (14,6 % in balance currency), Short-term trading and other accounts payable (11,7 % in balance currency), Other short-term obligations (14,6 % in balance currency).

- At the end of the reporting period, the Loan was reduced by -743 097 tenge or 29% of the value at the beginning of the period, in total assets was up 9.86% against 14.6% at the beginning of the period.

- At the end of 2010 the value of Short-Term Trade and other payables increased by 389 908 thousand tenge or 19% of the value at beginning of period, in total assets was up 13.24% vs. 11.7% at the beginning of the period.

- At the beginning of 2010 the value of other current liabilities decreased by -197 432 thousand tenge or 8% of the value at the beginning of the period, in total assets was up 12.84% vs. 14.6% at the beginning of the period.

- It is also worth mentioning that in 2010 a value of article Employee Benefits increased by 37 908 thousand tenge or 50% compared with the beginning of 2010. In total assets at the beginning was 0.4%.

At the beginning of 2010. proportion of long-term liabilities amounted to 17.4% in total assets, as at the end of 2010 amounted to 15.25% of total assets, as value decreased by -240 044tys. tenge or -8%. Anomalous zone under Long-term liabilities is the value of other long-term indicator of financial liabilities, which decreased by -442 649 tenge or 54% of the value at the beginning of 2010. In total assets was 4.7% at the beginning versus 2.07% for end.

The value of equity is positive, since its share in total assets at the beginning of 2010 was 41.2%, and at the end of 2010. was up 48.2% due to the increase in equity 1 663 749 thousand tenge and the growth rate was 23%, including:

-The authorized capital in total assets is 4.8%, was up 14.83% since +1890200 rose thousand KZT and the growth rate was 226% because During 2010, the Company issued 1,890,200 ordinary shares with a nominal value of 1,000 tenge each, and recorded an increase in the share capital;

- Retained earnings in total assets, was 4.5%, was up 33.37% since rose +5343490 tenge and the growth rate was 677%, ie increased by 6.8 times. This is because the number of short term receivables in the amount of 4,426,723 thousand tenge at the beginning of 2010. flowed into the sum of retained earnings, which amounted to 789 000 thousand tenge at the beginning of 2010, increasing it to 5,343,490 thousand tenge at the end of 2010

However, at the beginning of 2010 on a balance sheet size of reserves were 5,569,941 thousand tenge, which occupy in total assets 31.9% by the end of 2010 were missing, which is an additional risk factor for investment.