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Introduction
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SUPER MARK Ltd. (current operating company of Supermarket RAKETA) was registered by the Administration of Saratov region on February 19, 1996. The registration number is 94. The entity's legal address is Prospect 50 Let Octiabria 110, Saratov. SUPER MARK Ltd. is the successor of Supermarket Raketa Ltd. The Company was established and registered in order to institute Retail and Wholesale Trade Center in Saratov region on the basis of already operating Supermarket Raketa. However, from investors' point of view Supermarket Raketa Ltd. and SUPER MARK Ltd. are regarded as a unified project. The company's shares are distributed
as follows: The Company's objectives are: |
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Operational Background
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The main products available at the Supermarket are food items. It has a great variety of wines, brandies, champagnes, liquors and other alcoholic beverages. There is also a wide choice of beers and mineral water. The showcase of the meat department displays the meat products both of foreign and local producers. In the Supermarket one can find different kinds of tea and coffee as well as confectionery products. Total amount of different brand names offered to customers exceeds 2500. In addition to food items there is a lot of detergents, goods for kids, cosmetics and perfume. On April 1, 1996 the video-audio department was put in operation. SUPER MARK Ltd. employs well-trained and highly experienced staff. The Supermarket is equipped with modern computer network that enables to monitor each transaction and provides on-line data flow from cash registrar to authorized control stations. The data is subsequently analyzed. In the beginning of 1999 the marketing department started to create database of the Supermarket's permanent customers. Variety of promotion programs like seasonal discounts, parches volume discounts, member cards etc. are being undertaken by the marketing department. |
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Financial Information
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The population of the Povolghsky region exceeds 3 mln. people according to statistics of 1999. The Supermarket's objective is to generate financial results that will place it within the top 5 supermarkets in the region measured by combination of growth earnings and return on assets. In 1999 SUPER MARK's return on assets was 11.1%, among the very highest in the industry of the region. There are three main factors negatively affecting the earnings progress. First of all it is increased competition. The amount of supermarkets put in operation in 1999 constituted 43% of those operating in 1998. The second factor is poor legislature and state tax policy. The third factor is decline in customers' income in 1999, which reduced their purchasing power. |
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Summary
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Though
the financial results of SUPER MARK's performance in 1999 have shown
essential improvements in comparison with those in 1998, the financial
statement analysis of the firm's performance in 1999 indicated some
shortages in the firm's operation. Those are: Cash flow from operations to current liabilities ratio suggests that operations have provided sufficient cash flow to finance short-term financing needs. This can be even improved if the firm reduces the amount of inventory standing obsolete and consequently reduces its current liabilities. Then the firm will be able to direct the released cash flows to increase its efforts on promotion of the Supermarket and extend its investment activity, for example, through establishing affiliated wholesale trading center. Due to improving policy of the quality and specter of services provided by the management of SUPER MARK we expect our earnings growth to resume in fiscal 2001. |
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| SUPERMARKET RAKETA IN SARATOV |
Konfin Close Joint-Stock Company - 21%