CSIACSIA

2009 www.s-analytica.ru

2S – Analytica

Success factors and basis for making informed business decisions

Management reporting

• Financial statements based on IFRS• Management data:

− commercial data− production data− fixed assets− loans− taxes

• Reliability of information • Timeliness

Business planning

• Availability of the enterprise model for business planning

• Business planning format = reporting format

• Reliability of model parameters and data

• Use of actual historical data as a basis for business planning

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3CSIACSIA

CSIA (corporate system for information and analysis) – a software module allowing to form reporting by

transformation of accounting data automatically

Bookkeeping system

1 C

Galaktika

Parus

SAP

Other

CSIA

IFRS financial statementsP&LCash FlowBalance sheet

Management dataProduction cost breakdownSales price Purchase priceInventoryQuantities produced Quantities soldOther

CSIA is based on 1C, but allows to use any kind of accounting system to form IFRS based reporting

Management reporting

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CSIACSIA

CSIA approach. Basic accounting blocks.

60 Suppliers

20 Production

90 Sales

67 Borrowings

68Taxes

01 Fixed assets

Loan

s

Repa

ymen

t

Inte

rest

Taxes accrualPaym

ent

of

taxes

VAT

Cape

x

Dep

reci

ati

on

Cost price of sold fixed assets

Cost price of sold services

Finished products

Shipping

produce

Payment for p

roducts

and services

Sale

of

pro

du

cts

an

d s

erv

ices

Payment for

supplies

Sh

ipp

ing

su

pp

lies

Use

of m

ater

ials

in

prod

uction

Uti

litie

s and s

erv

ices

62 Customers

51 Cash

10 Materials

43 Output

• Each node of the diagram is represented in the bookkeeping

• CSIA construct a table of correspondence between bookkeeping and managements accounts

• The management reports are then produced via the management accounts

• CSIA uses the principle of dual recording

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Business planning

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Semi-finished Product E

Semi-finished Product A

Finished Product A

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(kRUR)11 months

2008 Production of semi-finished product E

651 629

(tonne) 44 673RUR/kg 14,59

Raw materials 245 880Raw material A 158 334

(tonne) 73 668RUR/kg 2,15

Raw material B 86 168Other materials 1 377

Semi-finished products 329 968Utilities 203 424

Electrical energy 91 787Steam 45 709Water 37 339Other utilities 28 588

Direct labor 11 818Direct overheads 128 963By-product credits -268 424Captive use of semi-finished product E

651 629

(tonne) 44 673for semi-finished product A 547 621

(tonne) 37 544RUR/kg 14,59

for semi-finished product B 104 008(tonne) 7 129

RUR/kg 14,59

(kRUR) 11 months

2008Production of finished product A 541 468

(tonne) 35 763RUR/kg 15,14

Raw materials 2 709Semi-finished product A 538 759

(tonne) 35 763RUR/kg 15,06

FINISHED PRODUCT  Opening inventory 409

(tonne) 26RUR/kg 15,73

Total input 541 468 Production 541 468

(tonne) 35 763RUR/kg 15,14

Total output 540 063Cost of sales 540 063

(tonne) 35 671RUR/kg 15,14

Closing inventory 1 801(tonne) 117RUR/kg 15,38

SALES  Cost of sales 540 063

(tonne) 35 671RUR/kg 15,14

Commercial cost 16 737Revenue 623 942

(tonne) 35 671

RUR/kg 17,49

Margin 67 143

(kRUR)11 months

2008 Production of semi-finished product A 687 596

(tonne) 45 643RUR/kg 15,06

Raw materials 3 759Utilities 194 158

Electrical energy 12 050Steam 141 053Other utilities 41 055

Semi-finished products 569 831 Semi-finished product E 547 621

(tonne) 37 544RUR/kg 14,59

Other semi-finished products 22 210Direct labor 4 972Direct overheads 68 943By-product credits -154 066SEMI-FINISHED PRODUCT A  Opening inventory 4 137

(tonne) 275RUR/kg 15,05

Total input from production 687 596Total output 683 871Captive use for Finished Product A 538 759

(tonne) 35 763RUR/kg 15,06

Captive use for semi-finished product D 145 112(tonne) 9 632RUR/kg 15,06

Quantity sold 0Closing inventory 7 862

(tonne) 523RUR/kg 15,06

Step-by-step production cost breakdown from Raw materials -> semi – finished products -> finished product

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BALANCE SHEET as of 30.11.2008

kRUR

Tangible assets and intangible assets

1 648 953

Fixed assets 1 648 953

 Finished goods value in inventory

39 780

Other inventories value 151 103

Customers receivables 64 933

Payables -138 860

Other debtor and creditor -770

Deferred expenses 9 258

Working capital 125 444

 TOTAL INVESTED CAPITAL

1 774 397

 

Capital -1 000 480

Retained earnings 508 748

Shareholders equity -491 732

 

Cash available 11 007

Short term borrowings -174 080

Long term borrowings -1 139 548

Net Indebtedness -1 302 621

 

Tax payable/receivable 19 955

 

TOTAL FINANCING -1 774 397

CASH FLOW STATEMENT 11 months 2008

kRUR

EBIT 5 989Depreciation 213 288Gains & losses on sales of fixed assets

425

Income tax -1 865Change in taxes payable & receivable 9 656Change in working capital -109 330

Finished goods value in inventory -18 414Other inventories value -14 581Customers receivables -48 492Payables 18 925Other debtor and creditor -45 130Deferred expenses -1 647

Cash flow from operating activities 118 162   

Fixed assets expenditures -58 251Acquisition of investment and shares  Proceed from the sale of fixed assets 88 552Proceed from the sale of investment and shares

 

Cash flow from investing activities 30 300   

loans received 56 011loans paid (including interest) -216 680Dividends 0Capital increase 0Cash flow from financing activities -160 668   

NET CHANGES IN CASH AND CASH EQUIVALENT

-12 206

opening cash 22 533closing cash 10 327

PROFIT & LOSS STATEMENT11 months 2008

kRUR

NET SALES 1 795 055Product A 623 942Product B 185 581Product C 480 703Services 161 759 …

Transportation cost - 68 163Product A -16 737Product B -1 015Product C -22 766 …

Costs of goods sold - 1 440 253Product A - 540 063Product B - 167 001Product C - 391 956Services - 145 583 …

GROSS MARGIN 286 639Product A 67 143Product B 17 565Product C 65 981Services 16 176 …Commercial & Admin costs -273 414Gains & losses on sales of fixed assets -425Miscellaneous financial gains & losses -18 797Other gains & losses 11 986

EBIT 5 989Borrowing charges -126 215Gains & losses on exchange rate and currency conversion

-80 930

Total сharges and income on net indebtedness

-207 145

Current income taxes -1 865NET RESULT -203 021

Financial statements

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Item Activity description Responsible Support Remarks

1.Provide bookkeeping data from the Client’s bookkeeping system

Client S-AnalyticaIn the form of DBF file; in case of 1C system only access to the Client’s accounting system is needed

2.

Development of the format of management reports including financial statements and management data

ClientS-Analytica S-Analytica will facilitate the development of the

formats

3.

Examination and optimization of bookkeeping accounts and analytical data

S-Analytica Client

S-Analytica will analyze analytical data used in bookkeeping. In order to form management reports and reach a certain level of detail, in some cases it is necessary to add data to certain accounts. Client input required for adding the analytical data to bookkeeping accounts

4.

Develop a table of correspondence between bookkeeping and management accounts

S-Analytica ClientThe management reports are then produced via the management accounts, which reflect the economic essence of the business.

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Item Activity Description Responsible Support Remarks

5.

Develop a direct interface between the management accounts and management report captions based on CSIA software

S-Analytica ClientClient will check that all the amounts reported under each management report caption are justified

6.Prepare final version of CSIA settings for the management reporting

S-Analytica

7.

Installation of a local component of CSIA on each enterprise, and the central component - at the head office.

S-Analytica Client

Every day local components of CSIA receive data transformed from bookkeeping databases of the enterprises. Then the data is automatically transferred from the local CSIAs to the central component (via FTP).

8.

Creation of a spreadsheet-based model of an enterprise for business planning.

S-Analytica Client

A distinctive feature of our approach to business planning is active use of actual data obtained via CSIA. Tables of a business plan are of the same format as management reports. Timely updating of the business model with actual data allows to organise running monthly planning.

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CSIACSIA

• CSIA software module set up for management reporting

• CSIA installed locally (the local system) and at the head office (the central system). 

• Established connections between local and central systems.

• Instruction on the use of CSIA including

a) a table of correspondence between bookkeeping and management accounts

b) a table with formulas based on management accounts for each management

report caption

c) Instruction how to prepare the reports

• A spreadsheet-based model of an enterprise for business planning.

• Training of specialists on working with CSIA and business plan model

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Month 1. Month 2. Month 3. Month 4.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Activity description

- Contract award

- Kick-off meeting

- Provide bookkeeping data from the Client’s bookkeeping system

- Development of the format of management reports including financial statements and management data

- Examination and optimization of bookkeeping accounts and analytical data

- Develop a table of correspondence between bookkeeping and management accounts

- Develop a direct interface between the management accounts and management report captions based on CSIA software

- Prepare final version of CSIA settings for the management reporting

- Installation of a local component of CSIA on each enterprise, and the central component - at the head office

-Creation of a spreadsheet-based model of the enterprise for business planning

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