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Finance and Statistics - Kovalev AM

4. FINANCE COMPANIES

4.1 FINANCIAL RELATIONS COMPANIES

The basis of market relations is money. They link the interests of the seller and the buyer. The buyer pays the seller, hoping to then sell the results of their work and get paid for it. Some of them he gives the bank to repay the loan and budgets of different levels in the form of taxes, and the rest is used for own needs. Market relations - is primarily a financial relationship, when market participants suggest to earn money and use them for different purposes, creating their own respective monetary funds.

Finance companies - is the economic, financial relations arising from the movement of money and formed on this basis of the cash flows associated with 'the operation created in the money fund companies.

Finance companies are the backbone of the financial system of the state, as enterprises are the main link of an economic complex. State enterprise finance has an impact on the security of national and financial resources of regional monetary funds. The dependence is direct: the stronger and more stable financial situation of enterprises, the more assured national and regional monetary funds, to better meet the social, cultural needs and others.

Finance - objective economic category of the market economy. Without the proper functioning of the financial market economy mechanism to work are not able to. The experience of recent years of economic reform in Russia confirmed this position. The state's task is to evaluate the role of financial relations in a given period of development. That is why in a market economy must learn to combine the independence of enterprises and regions with the state regulation of the economy and finance.

Financial relations companies can be grouped into four groups. It is a relationship:

• with other companies and organizations;
• within the enterprise;
• in business combinations: with the parent organization, within the financial-industrial groups, as well as the holding;
• with the financial and credit system - the budget and extrabudgetary funds, banks, insurance, stock exchanges, various funds.

Financial relationships with other companies and organizations include relationships with suppliers, customers, construction and transport organizations, post and telegraph, foreign trade and other organizations, customs, enterprises, organizations and firms of foreign countries. This - the largest by cash payments volume group. Relationship companies with each other are connected with realization of the finished product if the acquisition of material assets for economic activities. The role of this group of financial relationships is primary, since it is the national income, the company derives revenues from sales and income generated in the sphere of material production. The organization of these relations has a direct effect on the final results of operations.

Financial relations within the enterprise include the relationship between the branches, workshops, departments, teams, etc .; relations with the workers and employees. The relationship between the units of the company related to the payment of works and services, the distribution of profits, working capital, and others. Their role is to establish certain incentives and financial responsibility for the quality performance of the obligations assumed. Relationship with workers and employees - is the payment of wages, bonuses, benefits, dividends on shares, material assistance, as well as the recovery of money damages, withholding taxes. It is very important that the workers units receiving exactly what they earn.

Financial relationships within associations of enterprises are classified to the financial relationship * enterprises with parent organizations, relationships within the financial and industrial groups and the relationship between the enterprises of the holding conditions.

Financial relations companies with parent organizations include the relations concerning the formation and use of the centralized cash funds, which in the conditions of market relations is an objective necessity. Especially it concerns the financing of investments, replenish working capital, financing of import operations, scientific research, including marketing. Intra-industry reallocation of funds, as a rule, on a returnable basis plays an important role and contributes to the optimization of resources enterprises.

The privatization conditions, when the hands of the state remains a significant part of shares of privatized enterprises, plays an important role worldwide experience in many countries the main share (90%) of funds from privatization goes into special funds to support enterprises to be privatized.

Financial and industrial groups are, as a rule, with the aim of combining financial efforts towards the development and production support, to maximize the financial result. There may be a centralized cash funds and commercial loans to each other, and just financial assistance.

Features of holding relations consist in the fact that they are based on an economic basis, when the parent company owns controlling stakes in subsidiaries. The latter allows for the strategic management of the subsidiaries. Therefore, financial relations within the holding company assume significant financial autonomy of the participants within a single strategy.

Relations with the financial and credit system are manifold.

First of all, a relationship with the budgets of various levels and extra-budgetary funds relating to the transfer of taxes and deductions.

The tax system in Russia is imperfect and does not contribute to the normal production activities. World experience shows that to reduce the high rate of inflation is possible only through the support of production and investment development. To this it should be aimed mainly tax, as well as credit and customs policies. In particular, it is not subject, in many countries a certain part or all of the tax increase in production, It is profitable and the company, and the state as taxes from these companies come to the full, and in a year they increase sharply.

The relationship with the insurance element of the financial system consist of transfers of funds for social and health insurance, and insurance of the property business.

Financial relations enterprises are built by banks both in terms of the organization of non-cash payments, as well as in obtaining and repayment of short-term and long-term loans. Organization of non-cash payments have a direct impact on the financial situation of enterprises. The loan is a source of working capital, expansion of production, its rhythm, improve product quality, contributes to the elimination of temporary financial difficulties of enterprises.

Banks are now providing enterprises a number of non-traditional services: leasing, factoring, forfeiting, trust. At the same time can be independent companies that specialize in performing these functions.

At the moment in the relationship business with banks there are a number of problems. The practice of non-cash payments is primitive: prepayment, barter, cash, big defaults. Credit is very expensive, so its share in the formation of working capital of enterprises is very low (less than 10% on average). Long-term credit is not widely applied to finance investment. Non-traditional banking services and have not been developed.

Financial relations companies to the stock market involves securities transactions. The stock market developed in Russia is not enough.