In 2016, REC’s share
capital was increased by RUB
54.6 billion. At the expense of
the subsidies from the federal
budget, the Company purchased
shares in Eximbank of Russia
from the additional share issue
in an amount of RUB 8.1 billion.
REC’s additional share issue was
used to pay off the payables for
the shares in EXIAR transferred
to REC by Vnesheconombank.
At this stage, REC, by the reason
that it receives no proceeds
from its core activity, finances
its development expenses both
through the investment income
from allocation of its equity
capital and through the loans
advanced by other Group’s
companies.billion RUB: the increase of REC’s share capital in 2016
| Indicators | As of 31.12.2016 | As of 01.01.2016 | ||
| RUB ‘000 | share | share | share | |
| Investments | 60,455,919 | 98.4 % | 48,864,009 | 99.9 % |
| Cash | 757,145 | 1.2 % | 827 | 0.0 % |
| Accounts receivable | 73,246 | 0.1 % | 17,857 | 0.04 % |
| Deferred tax assets | 49,666 | 0.1 % | - | 0.00 % |
| Fixed assets and intangibles | 44,557 | 0.1 % | 7,901 | 0.2 % |
| Other current assets | 57,992 | 0.1 % | 14,251 | 0.03 % |
| Total Assets | 61,438,525 | 100 % | 48,904,846 | 100 % |
| Loans and borrowings | 3,816,277 | 6.2 % | - | 0.0 % |
| Estimated liabilities | 104,390 | 0.2 % | - | 0.0 % |
| Accounts payable | 17,606 | 0.0 % | 458,187,992 | 93.69 % |
| Deferred tax liabilities | 1,138 | 0.0 % | - | 0.0 % |
| Total Liabilities | 3,939.411 | 6 % | 45,818,792 | 94 % |
| Net assets | 57,499,114 | 3,086,054 | ||
The large-scale business development of the Center and its regional and international expansion have led to a substantial growth of its operating expenses and, as a consequence, resulted in net loss at the end of 2016, which, however, is less than 0.4% of REC’s net asset value as of the reporting date.
| Indicators (RUB ‘000) | 2016 | 2015 |
| Income (revenue) from principal activities | - | - |
| Operating expenses | (661,590) | (95,517) |
| Interest income | 516,399 | 203,180 |
| Interest expenses | (122,227) | - |
| Taxable profit | (267,468) | 107,663 |
| Current profits tax | - | (21,609) |
| Change of deferred tax assets and liabilities | 48,528 | - |
| Net loss | (218,940) | 86,054 |