Audit and economical analysis

Consolidated accounting balance sheet of OSC “UzbekistonTemiryo’llari”

Indicators			2017 -2018yy.
ASSET	01-january 2017	01-april 2017	01-june 2017	01-okt 2017	01-january 2018
1. Long-term assets	10 219 731 945	11 151 959 813	11 195 178 476	11 778 032 823	12 593 199 960
Initial value of fixed assets	10 527 417 487	11 341 824 771	13 056 620 251	13 186 532 286	14 773 593 626
Depreciation value of fixed assets	3 423 307 367	3 788 793 507	3 945 211 086	4 125 679 858	4 320 658 666
Residual value of fixed assets	7 104 110 120	7 553 031 264	9 111 409 165	9 060 852 428	10 452 934 960
Residual value of intangible assets	417 151	335 519	526 894	435 179	345 379
Capital investments	2 834 711 892	3 308 810 890	1 783 170 063	2 396 325 565	1 572 602 311
Other long-term assets	280 492 782	289 782 140	300 072 354	320 419 651	567 317 310
2.Current assets	2 978 372 713	3 522 490 664	4 234 880 927	10 571 776 648	11 683 693 105
Production stocks	819 530 511	761 929 334	807 974 274	805 958 807	1 047 437 972
Future expenses	1 366 091 169	1 926 260 257	2 439 824 162	8 466 493 743	8 441 062 224
Turnover	171 917 383	167 990 329	198 395 625	199 248 750	468 669 767
Other current assets	117 495 315	114 011 429	118 290 042	112 380 694	160 480 738
Total debitors	503 338 335	552 299 315	670 396 824	987 694 654	1 566 042 404
Include:
Calculations with customers and clients	163 855 350	162 134 584	179 194 017	304 669 491	268 038 094
Advence payments to the budget	7 740 384	6 510 004	8 801 153	5 388 750	5 252 951
Total assets	13 198 104 658	14 674 450 477	15 430 059 403	22 349 809 471	24 276 893 065
Passiv	01-yanvar 2017	01-aprel 2017	01-iyul 2017	01-okt 2017	01-yanvar 2018
1Own source of funds	7 745 794 466	8 567 616 791	8 644 944 914	8 963 743 430	10 124 233 076
Charter capital	614 384 306	614 384 306	614 384 306	614 384 306	828 202 670
Reserve equity	5 737 851 427	6 360 555 463	6 480 827 061	6 590 488 428	8 121 422 920
Undistributed benefits	507 693 607	416 753 023	344 928 794	160 996 840	223 400 675
Other sources	885 865 126	1 175 923 999	1 204 804 753	1 597 873 856	951 206 811
2. Liquidity	5 452 310 192	6 106 833 686	6 785 114 489	13 386 066 041	14 152 659 989
Long-term bank credits and debts	4 675 490 146	5 329 297 527	5 927 142 095	12 154 367 349	12 304 013 149
Other liquidity	14 744 216	12 729 877	10 091 394	9 142 953	8 878 479

Income statement of JSC “UzbekistonTemiryo’llari” (2016-2017)

The name of indicators	2016	2017
Net profit from product(brand,work and service)sales	5 180 801 340	3 362 225 550
Cost of sold product(brand,work and service)	3 191 287 162	2 474 622 038
Aggregate profit of salingproduct(brand,work and service)	1 989 514 178	887 603 512
Period expenses	752 744 444	568 302 199
Other operational expenses	178 630 359	135 306 333
Profit of main activity	1 415 400 093	454 607 646
Expenses of financial activity	833 455 050	159 047 300
Profit of financial activity	506 789 162	269 112 080
Earnings before income tax	1 088 734 205	564 672 426
Extraordinary benefits and losses	0	0
Income tax	30 730 577	16 304 363
Other taxes and fees	83 965 344	40 674 456
Net profit of statement period	974 038 284	507 693 607

Theme 13. Reyting accessement of financial position of enterprices and its analysis

1. The necessity of assessment of the financial position of economic entities in the competitive economy, purpose, purpose and tasks of the analysis.

2. Types, essence and evaluation methods of the activities of the enterprises.

3. The system of indicators used to estimate the financial position of enterprises and methods of their determination.

4. Explain the financial status and effectiveness of the enterprises

5. Comparative analysis of the rating on complex indicators and their comparative analysis.

5. Practice of rating assessment.

6. Comparative analysis of rating indicators on efficiency of economic and financial potential of the enterprise. Sort of the enterprises by rating.

7.International experience of rating assessment of the state of the financial status and opportunities of using them in analytical practice of our country.
Key words and phrases: reyting, complex indicators, effectiveness, financial status,international experience of rating assessment, opportinutes, types of entities by reyting results.
The necessity of assessment of the financial position of economic entities in the competitive economy, purpose, purpose and tasks of the analysis.
Evaluation and analysis of the financial position of enterprises The necessity of rating assessment of financial position of economic entities in the competitive economy, purpose, objectives and objectives of the analysis

The word "rating" in practice comes from the English word "rating" and means "evaluation, rating". In a general sense, rating can be used in two different meanings, in terms of popularity and leadership. Leadership, leadership is not just about subjects but also for companies, regions and states.

International rating agency "Mudis"; International rating agency "Fitch Ratings"; "Standard & Poor's"; Forbes and others. rating agencies are the most popular rating agencies. In particular, each of Moody's and Standard & Poor's controls 40% of the global market. In particular, estimates of macroeconomic rating of the countries are carried out annually in the system of different indicators and their results are announced.

- reflects the level of social development; (happy life index, human development index, average life expectancy, population growth rate, human welfare level, level of social development, education level, level of medical services, ecological efficiency, reflecting the level of accessibility);

- reflects the level of economic development (level of GDP, per capita GDP level, creation of favorable conditions for doing business, level of foreign investments, level of food security);

- reflecting the level of political development (reflecting the level of peace, the rule of law, the lack of terrorism risk);

- reflects the level of technical technical development; (scientific research activity, obtaining patents, reflecting innovation development);

- reflects the level of information communication development (e-government development, the introduction and speed of the Internet, the use of mobile communication systems).

Uzbekistan is one of the world's leading states in terms of business environment, rule of law, food security, patents, and direct foreign investment in the first place. As a result of the World Bank and its division - International Finance Corporation Business Report (Doing Business-2016-2017), Uzbekistan is Uzbekistan's top business partner in promoting business opportunities. The top 10 is in the top ten countries. This testifies to the fact that direct enterprises are developing in the economy. The key to creating favorable conditions for "business" has been selected as an indicator of 10 key indicators in the research results. These indicators are as follows:

• 
  enterprise registration;
  
• 
  issuance of permits for construction;
  
• 
  energy efficiency;
  
• 
  registration of property right;
  
• 
  obtain credit;
  
• 
  protection of minority investors;
  
• 
  rate of taxation;
  
• 
  international trade;
  
• 
  fulfillment of contractual obligations;
  
• 
  rate of incentive payment.
  

Today, rating practice is widely used in assessing students' knowledge in higher education institutions, rating of banks, rating of joint-stock companies, audit companies and insurance agencies. The rating can be made between enterprises by different criteria.

For example: by volume of assets, revenue, profit, volume of exports and number of workers, etc. However, due to the fact that the economic and financial capacities of all these indicators are covered by the enterprises, the valuation practice of their financial condition is widely used. There are many methodological developments of rating assessment of financial position of enterprises. Of course it is natural. Because all the branches and syllables have their specific features, they should not be the only norm. In assessing the financial condition of enterprises, it is difficult to distinguish value, quantity and other units because of the coefficients that can be classified on the basis of relative expression, which can be subdivided into one. What can be done based on a comparative study of the financial position and the results of financial performance based on financial coefficients? This process is primarily necessary to know the outcome of any type of analysis and to use it for tactical and strategic management of the enterprise. However, its results are important not only for the internal staff, but also for a wide range of foreign visitors. The rating is a ranking that determines the priority of enterprises by rating criteria and indicates their position in the growing or declining content. This assessment can also be made between the departments of a single system, among separate enterprises. In this regard, the rating units should be selected on the basis of the rating criteria. The most important source for evaluating the financial position is its information security. Such sources of information include financial reports, statistical reports, tax and customs reports and other reporting data. Rating estimates can also be determined by summing up their absolute indicators. Abundant indicators are often used to measure the volume of goods (sales, jobs, services), sales volumes, net profit, assets volume, expenditure expen- ditures. Combination of these indicators, sequencing, sequencing is carried out on the basis of generalized rating procedures of enterprises. These situations do not give a chance to compare businesses with a variety of business areas, businesses with different content.

Such indicators include financial solvency, business activity, market activity, turnover of funds, capital structure of the enterprise. It is difficult to define enterprises and to define their leadership and reputation as a single indicator or sign. Because the units of one indicator are not the units of the second indicator. That is, a good result in one indicator leads to the fact that the overall score of the negative result is not taken into account. Combined with some of these indicators, it can be a challenge. Usually, mathematical methods are used to account for all these effects units. Among them the most famous and popular are taxometric method, summing method, ethical method, width definition, defining a successful competitor, and other methods. The purpose of rating assessment of financial position is to set absolute and relative positions in the system of complex indicators of financial state of enterprises, to determine the position in the sector, sphere and region through periodic studying and forecasting based on the published database. The rating of the financial position is carried out at the following stages:

1. Selection of system of indicators of the calculation. These indicators, which are determined by the forms of financial reporting and reflect the company's performance, may include the following: coefficients that allow evaluating property status; liquidity indicators, business activity, profitability indicators, financial stability indicators.

2. Selection of economic units on rating assessment. If businesses are identified as targeted for industry and industry rankings, only those affiliated with one industry and industry will be selected. If it is required to identify a rating of enterprises in the region and country, then the methodologies that are fully compatible with each other will be used, which is a very difficult process. In this case, the importance of their positioning on the job size is very important. The more extending the scope, the more difficult it will be to scrutinize and rank.

3. Choice of coefficients. Coefficients are calculated on the same methodology for all enterprises and their compliance with the conditions of comparison must be followed. It is also important to pay special attention to the degree of importance of the indicators on the types of activities and types of networks and their importance.

For example, in a business enterprise, the value of commodity turnover, the value of profitability indicators for the service chain.

4. Rating assessment based on the chosen methods. Assessment of financial position rating includes:

1. Assessment of the company's total financial position based on analytical balance sheet data;

2. Evaluating the effectiveness of utilization of debt funds on the basis of financial leverage;

3. An absolute analysis of the financial stability of the enterprise;

5. Identification and analysis of financial coefficients;

6. Analysis of financial results analysis;

7. Preparation of conclusions and recommendations.

Types, essence and evaluation methods of enterprises' activity

Types of rating. Rating valuation of enterprises' financial position is based on theoretical and methodological asses of complex assessment of financial and economic activity of the enterprise. The key rating indicators of the financial and economic activity of the enterprise, economic and financial capacity, profitability of the activity and productivity, productivity of production and financial resources, availability and sources of funding.

The following types of rating evaluations can be compiled.

1. Departments of branches, affiliated companies;

2. Rank on industry and industry;

3. Rating of enterprises within the region;

4. The rating of all enterprises across the country;

5. Worldwide rating companies. In the rating assessment, the rating of the financial status on the overall rating and rating indicators can be carried out separately.

Differentiation of the types of activity consists of the following types of financial status:

• 
  rating of companies;
  
• 
  banks rating;
  
• 
  rating of insurance companies;
  
• 
  rating of audit firms;
  
• 
  average rating of associations and so on.
  

The essence of the assessment of the financial position of the enterprises is the formation of the final rating table and formation of a definite sequence by formulating, analyzing and managing information on a system of indicators that are used to assess the rating.

The rating of enterprises may be based on individual indicators and their complex results.

The following methods of assessment are used in the evaluation: Sum of the method; mean geometric method; coefeedent method; bal method; distance method.

The system of indicators used to assess the financial position of enterprises and methods of their identification

There is no uniform methodology for determining the precise number and structure of the indicators used in rating financial position. Analysts, experts and their group, rating agencies define procedures for identifying them by group of financial coefficients based on the form of ownership, activity and other aspects of each sector, sector and enterprise.

Among the key indicators identified in the rating of financial position

it is recommended that you enter the following system of indicators:

- indicators of solvency and liquidity: current, interim and total solvency indicators;

- financial coefficients characterizing the financial stability: autonomy, capitalization, maneuverability coefficients, etc.;

- coefficients characterizing activity: assets, coefficients of return on capital and liabilities, etc.;

- financial coefficients characterizing profit and profitability: assets, capital, cost-benefit ratios and so on.

A system of complex indicators that reflects the financial status and effectiveness of enterprises and their requirements In examining the system of financial performance and effectiveness, it is important to focus primarily on "fair assessment" of assets and passives, property, income and expense.The system of learning indicators is firstly characterized by the correctness, validity and reliability of this value. He is one of the prominent authors, Raymond John Chambers. In the Chambers' perspective, the methods of determining the real value of assets under the influence of inflation are discussed.

 Typically, different words are used against the literal translation of the "fair assessment" from English. For example, "realistic assessment", "clear assessment", "legal assessment", "rule assessment"

Initially, it was considered as an important tool for re-evaluating fair values. The first step in the independent valuation of financial instruments has been commensurate with the International Financial Reporting Standard 32 (MFSO), which reveals a new era of changes in accounting. This situation did not affect the financial results of the investment and financial assets and the foreign currency exchange rates. Fair valuation determines the fair value of the balance sheet at the time of the creation of the balance sheet.

Fair valuation implies that the entity's property, plant and equipment costs are reassessed as to the financial position and financial performance of the entity, taking into account the changes in market conditions, regardless of its activity. That is, it is a requirement for financial reporting that is free of subjectivity. In the current account system, the following features of fair assessment in the international arena are characterized.
Scope of Application: The scope of the "fair assessment" is limited. This technique applies to specific property units (investment property, biological assets, financial instruments, specific asset) or to certain types of transactions (business combinations, reassessment of fixed assets, valuation of free valuation, etc.). Calculation mode: - Fair valuation varies with the assets and processes of economic activity.

Fair assessment of assets affects the financial viability of enterprises and the fair valuation of processes affects the process of capitalization. Changes in the fair valuation of biological assets (horticultural and nursing plants, plants) will lead to profits and losses, and the revaluation of fixed assets will lead to changes in business capital. Biological assets are a new concept of "accountability" such as "fair assessment". Agricultural activity, encompassing biotransformation management under the SITC, envisages the production of biological assets or the production of additional biological assets.

Measurement procedure. Fair valuation depends on the type of assets and the degree of change in value.

Fair value is based on value-added market prices (based on dealer and receiver's complete data integrity). If an asset's market price is not available, it is determined based on its profit or loss over the life of the asset. Determine whether the asset will be profitable in the future if it is not possible, the cost of recovery. In some cases, very rarely observed, that is, if one of the methods above does not allow a fair value, then the initial value will be calculated. Evaluating the financial position rating, different organizations and businesses are assessed for each level of activity. this process can be regarded as a matter of macro scoping in relation to a single system that is not included in the network. This issue is characterized by two aspects. The first aspect involves comparison of the complex assessment of the performance of several enterprises based on the system of key indicators compiled by the analyst and determining their sequence on the levels.

The second one is the comparison of several indicators that are used as a benchmark for businesses. In the first place, a system of indicators for rating assessment will be selected on a variety of basis, and secondly, based on a system of formal indicators. Establishing a separate financial reporting form by evaluating the performance of business entities operating as a business entity is an important tool for determining the competitiveness of an enterprise with the level of capitalization in a market economy.The rating objective is to evaluate the financial stability of enterprises by setting their comparative position with their competitors and other subjects.

The following features of rating evaluation are compiled.

The financial indicators used in the Assessment should be reflected in the official financial statements;

• 
  includes a rating system for indicators of profitability: profitability indicators, performance management indicators, business performance indicators, liquidity levels and diligenceindicators are included. Each component includes three to seven characters; - The rating is based on a score of a company with a high level of content for all content indicators; -The summary of the audited financial statements differs greatly from the findings of the analysis of the financial position. and an important factor in the economic development tendency of the enterprise. The coefficient in the evaluation must meet the following students
  
• 
  having the most up-to-date information(eg coefficient growth should characterize improved financial position).
  
• 
  any indicators should have quantitative minimum standards:
  
• 
  it should be based on published financial reports.The formula calculated and rated based on the rating can be expressed by the ratio of the following units.
  

Bund L, Crawlers, which are defined in the evaluation of the anesthesia, N, the normative requirement of the coefficient, K, - coefficient 1 / L *, N, - index

Less than one of these figures hurt the financial situation.

The most commonly used indicators in the ranking are the following indicators: These are:

1. coefficient of own funds supply;

2. balance liquidity;

3. convenient capital turnover;

4. efficiency of management of the company;

5. private equity profitability.

At the end of this methodology, which is widely used in practice, rating is based on the following formula.

R = 2Kt + 0.1Kl + 0.08Ka + 0.45 s + Kk

This practice looks like an outsider model used to calculate beacon and economic uncertainty.

The final stage of accounting balance analysis is the final conclusion and outcome of the analysis.

Finally, the property status of companies and firms, their funding, economic and financial capabilities, the company's and company's solvency, liquidity, financial strength and sustainability.

On the basis of this diagnostic, it is possible to give a rating of the companies and firms' economic rating. The methodological criteria for determining the economic and financial rating of companies and firms on the basis of bookkeeping balance are as follows:

• 
  economic and financial capacity of the company or firm;
  
• 
  real estate fund of the company or firm, real value of assets and liabilities;
  
• 
  the solvency of the company or firm;
  
• 
  financial stability and sustainability of the company or firm;
  
• 
  mobility of the company or firm (liquidity).
  

The analysis of the results of the analysis should be based on a clear and straightforward statement of the conclusions, the basics of successes and weaknesses, the relevance and objectivity, the frequency and occurrence of changes, the analysis of the company and the company's optimal strategies (measures, measures).

Stabilizing the financial condition of the enterprises year after year, and the increase in the attractiveness of the investment attracts domestic and foreign investment in the leading sectors of the economy.

High performance in managerial system The financial condition of enterprises, the analysis and analysis of the effectiveness of their enterprises in a competitive economy are of high importance not only for business entities, but also for creditors and investors

The financial analysis does not clarify the financial position of the entity, but also shows its prospects. Also, it is necessary to analyze and calculate the rating of investment attractiveness of business entities to actively attract investments. Different valuation methods are used to assess the financial position of enterprises in national and world practice. Such methods include "sum of seats", taxonomometric method, sum of indicators, method of scores, distance method, and so forth. These methods allow to analyze the financial and economic activity of enterprises and determine their place among the competitors. It is possible to identify investors with high rating.

The rating score in the "Sum of seats" is that the smallest enterprise occupies the highest rating on the evaluated indicators and vice versa. The essence of the matter is that the sum of the first set of numbers on all indicators is the smallest number, and this is the best position for all indicators.For the taxonomic estimation of the financial condition of enterprises we refer to the following matrix:Estonian enterprise Ze = (Z1e, Z2e, Z3e, Z4e) = (0.60; 0.56; -0.54; 0.53). Etalon Z consists of the best indicators of each line of the matrix. It should be noted that, as the benchmark, the largest quantities were obtained from the current liquidity ratio, profitability of sales and net sales of goods. Because the high level of these indicators reflects the stable financial situation. Conversely, the turnover of goods turnover on a daily basisa small amount indicates the speed of rotation. Therefore, the smallest of this figure is taken as a standard.

We calculate the rating of the enterprises based on calculation of the sum of the scores of differentiation of the studied enterprises from the indicators of the "Z" company:

R1 = (0.18-0.60) 2 + (-0.71-0.56) 2 + (0.70 - (- 0.54)) 2 + (-0,57-0,53) 2 = 4.56

R2 = (-0.25-0.60) 2 + (0.0-0.56) 2 + (0.1 - (- 0.54)) 2 + (0.29-0.53) 2 = 1.49

R3 = (0.39-0.60) 2 + (0.56-0.56) 2 + (0.24 - (- 0.54)) 2 + (0.33-0.53) 2 = 0 69

R4 = (-0.35-0.60) 2 + (0.29-0.56) 2 + (-0.17 - (- 0.54) 2 + (0.53-0,53) 2 = 1.12

R5 = (-0,53-0,60) 2 + (-0,29-0,56) 2 + (-0,54 - (- 0,54) 2 + (-0,15-0,53 ) 2 = 2.45

R6 = (0.60-0.60) 2 + (0.14-0.56) 2 + (-0.34 - (- 0.54)) 2 + (-0.42-0.53) 2 = 1.13

In this case, Z is the closest indicator to the entity's performance, ie the smallest difference between the indicators and the smallest enterprise.

Thus, the lowest rated company (3rd enterprise) among rated rating indicators can be rated as the lowest and the rating of the enterprise with the highest value (1-organization).

Financial condition and investment of enterprises. The system of more indicators can be used to more fully satisfy the demand for information subjects interested in attractiveness. At the same time, each information may have conclusions which may serve as a basis for management, investment and financial decisions based on the user's interest.Also, in evaluating the financial condition of enterprises, we consider that they need to be taken into account in the field of network characteristics, competitiveness, competence of the management apparatus and other factors. The significance level of these indicators can also change the rating. In view of this,
it would be expedient if more indicators are used as far as possible to assess the financial position (allowing a comprehensive assessment of the financial position and investment attractiveness of the business) to increase the effectiveness of investment and financial decisions. Also, in assessing the financial position of enterprises, we believe that indicators should meet the following requirements:

• 
  the entity's ability to accurately reflect the financial stability and to provide maximum information.
  

All indicators have a definite quantitative dimension and at least a minimum of norms; Calculated based on enterprise accounting data only; Assess ratings of the company on time and space. In conclusion, it can be said that the introduction of modern corporate governance methods will require more reliable information on the investment attractiveness of enterprises and their financial condition.Such information serves as an important basis for effective management, investment, and financial decisions. On the basis of improving the financial condition of enterprises and the integrated assessment of investment attractiveness, the effectiveness of management decisions has increased,opportunities for effective use of resources.

International experience on rating assessment of financial position and their ability to use the country in analytical practice

Ensuring a better level of organization of rating practice in line with international norms, standards and evaluation indicators adopted by all over the world, further deepening reforms and further improving the sustainability of economic structures, radical transformation of the system approach and evaluation system.

Increasing the economic and financial capacity of enterprises in accordance with international standards, increasing their assets and capital, increasing their profits,the further capitalization of the expansion, the attraction of private capital in this sector, the increase of the resource base, the quality of work and the quality of management are the most important problems facing us. It is necessary to introduce a modern system of evaluation and analysis of activities of international organizations based on international norms, criteria and standards used by leading international rating companiesIt is necessary to further improve the legal framework, introduce amendments and addenda to existing legislation and norms in accordance with international standards and standards, and adopt new legislative and normative acts

It is necessary to strengthen investment activity in enterprises, further expand financing of investment projects, expertise of projects and improvement of risk assessment system is necessary to further enhance the role of financial institutions, credit unions, leasing, insurance and auditing companies in the support, financing, protection of enterprises, expand the range and scope of services provided to them, and strengthen the financial market infrastructure.

Population financing for the development of small business and private entrepreneurship as a critical tool for increasing employment and well-being, it is important to identify specific types of this line. For example, the rating of employment of young people in employment, the rating of the youth entrepreneurship business, etc. nominations Formation of new approaches to accounting and reporting of enterprises, introduction of modern technologies and methods, increasing the level and level of information, and the broader use of the widest possible use of the requirements of leading international rating agencies.

Further improvement of the system of enterprises with the highly skilled professionals who can work in the world of accepted standards, methods and assessment indicators, as well as staff training and retraining.