Losses of Largest Bus Carrier Exceeds 13 Million Manat

In 2014, the state company Baki Sernisin ve Yuk Dasinmasinin Teskili («Organization of passengers and cargo transport") suffered a loss of 2 million 41.4 thousand manat. This is 1 million manat less than in the previous year, according to the audited consolidated financial statement of the enterprise under the Ministry of Transport for 2014.

According to the report, in 2014 the operating income of six business entities amounted to 5 million 881 thousand manat, which is 14.3% more than in 2013. In this case, the cost of transportation (7 million 922.4 thousand manat) decreased by 16.6%.

It is noteworthy that almost all the bus companies in Baku operate by the planning system, i.e. regardless of the daily revenue. The drivers pay them the amount agreed between the parties, i.e. 150 manat or more. In these conditions, it is clear how they "manage" to operate at a loss: part of this amount is assigned to the steps of the pyramid - from transport companies to the Ministry of Transport.

In 2014, for the payment of wages to 860 employees (+89 people) the company spent 1.6 million manat, which is 5.4% more than in the previous year. The purchase of spare parts of cars in 2013-2014 was spent about the same amount - more than 1.9 million manat. Fuel costs (2 million 273.4 thousand manat) rise year on year by 33.6% due to the rise in prices. In just two years the losses of the enterprises increased from 7.9 million to 13.3 million manat.

Ltd. Baki Sernisin ve Yuk Dasinmasinin Teskili does not report on the number of buses operated. However, in 2014, only 4,517 manat was paid on the simplified taxation system, according to the number of seats. This was 847 manat more than in 2013. AZN 166,300 was spent on payment of the distinguishing sign, which is a kind of tax on the transport sector. In addition, the payment of other taxes (property tax, land tax and road tax) was spent 67.7 thousand manat. At the beginning of this year, the company's tax liabilities amounted to 22.8 thousand manat, and its liabilities on social insurance payments were 527.7 thousand manat.

The balance sheet indices are not better – they got 36.5% worse. Last year, the fixed assets of trucking companies lost value by 3,344,000 manat. At the beginning of this year, they were estimated at 6,334.4 thousand manat. -------08B