Экономические науки / 10. Экономика предприятия

Zh. Saikenova, L. Sorokina

D. Seribayev East Kazakhstan State Technical University

Investment process and investment policy of the company

Implemented economic reforms in Kazakhstan substantially changed the financial, economic and social situation of the individual sectors. All this has contributed to the change in management and organization attract investment funds, as a basis for economic growth, aimed at improving the competitiveness of the organizations and the economy as a whole. In this connection it should also be said that in recent years, the investment potential of the Republic of Kazakhstan has improved significantly due to the continuous optimization of the investment climate in the country through tax incentives, regulatory legal acts, etc. Attractiveness of industrial enterprises to finance is an important component of the investment climate in the country.

The formation of own financial resources is part of the company's overall strategy, which provides the necessary level of self-financing of industrial development. Take into account the increase in company's own funds can use leverage ratio, thereby increasing the volume of the attracted investment assets, and increase return on equity. Undoubtedly, all these issues are relevant and require further study. The problem of formation of rational investment policy on industrial enterprise and scorecards investment attractiveness of industries is an urgent and requires immediate attention. In this regard, it is appropriate to consider the basis for the development of the investment policy of industrial enterprises in Kazakhstan.

Investment activity of the company is an important and integral part of its overall business. That the company can operate successfully, improve product quality, reduce costs, expand production capacity, strengthen its position in the market, it must invest and invest it profitably [1].

Attracting investment in the company for the investment process plays the most important function of investment management. The main element of this activity is to develop an investment policy, which is crucial for the functioning of the enterprise, regardless of size, industry, organizational, legal form and other features.

The investment process involves making decisions aimed at achieving certain goals, which assesses the effectiveness of the company, including investment. Properly defined objectives of the investment policy must meet certain requirements, such as comply with the basic objectives of the company, focus on good results. All this together ensures clarity of understanding, a clear framework for operational monitoring and subsequent evaluation of the level of efficiency of administrative decisions [1].

Integral part of the investment policy is to achieve the strategy and the use of investment resources, the development of which provides funding for investment in the necessary and sufficient quantities. Forecasting investment needs required to determine the amount of financing for investment projects.

Thus, investment activity occurs in the course of implementation of the investment policy, which depends on the investment policy of the state, and its formation is influenced by factors that affect the change in investment activity in the economy. Formation of an investment policy based on the company's overall strategy, including investment strategies, and has as a result of the creation of long-term investment program aimed at achieving effective enterprise development. In developing the investment policy should be considered:

- State of the market products produced by industrial enterprise, the volume of its implementation, quality and price of the product;

-Economic and financial situation of the enterprise;

-The technical level of production enterprises, the availability of its construction in progress and uninstalled equipment;

-A combination of equity and debt resources of the enterprise;

-The possibility of industrial equipment of the company;

-Financial conditions for investment in the capital market;

-Benefits received by the investor from the state;

-Commercial and budgetary efficiency investment activities carried out with the participation of the enterprise;

-Insurance conditions and obtain guarantees against non-commercial risks.

The basis for the justification of the investment policy of the company is the market analysis. Market analysis and development of system implementation in the enterprise, including the definition of advertising, its forms, directions and extent of implementation, concludes with an assessment of future expenses. One important factor was the financial attractiveness of Kazakhstan holding deep institutional reforms in the following key areas: production demonopolization, privatization of state property, the reform of fiscal and tax system, the transformation of the banking system, pension reform, the formation of the health insurance system, and reform of housing and communal services. As well as a high degree of education of the population, the availability of skilled workers and technicians in the country [2].

At the same time, foreign investors such as the U.S., believe that the minimum rate of return in Kazakhstan due to the high economic, financial, inflation and other risks should not be below 25%, while for the conditions of industrialized countries sufficient rate of return to invest 12-15% is considered.
Thus, the need of Kazakhstan in the inflow of investment funds is still great. Only primary modernization of key industries (manufacturing, fuel) took tens of billions of dollars.

Favorable factor for Kazakhstan is its exceptionally rich oil and mineral resources. However, since independence, the bulk of investment is in the oil and gas sector. The volume of new investments in the mining and metals industry is not consistent with both the geological potential of the country and the value of these sectors for its economy (more than 30% of total export earnings, 16% of GDP, 19% of total employment in the industry). In Kazakhstan, mining has a long tradition. In some areas of the country, mining factories support the viability of infrastructure and social settlements [3].

And although the government policy was aimed at stimulating private sector development in the mining and metallurgical industries, as well as the privatization of existing plants, however, the amount of new investment in exploration well below the level needed to replenish, technology upgrades, or the level of investment in with comparable geological potential.

In relation to the mining and metals industry all governments put similar objectives: to increase the contribution to economic development, to ensure equitable distribution of income, creating jobs and related industries, stimulating new investment and create a competitive investment environment. Kazakhstan already partially decided to some of these problems. However, to achieve other goals and objectives there is little progress, namely to improve the investment climate to encourage new investment. After all, even the development of the mineral resources of Kazakhstan will require large expenditures.

Other countries have faced similar problems and overcome them successfully through the implementation of a comprehensive «reform program of mining industry». The reform program requires a fundamental rethinking of the role of the state in this sector. A shift from the role of «owner-operator» of mining companies to the new role – «regulator and the judge». Investing in the sector and the implementation of production should remain in the private sector. He is more prepared to raise funds and risk-taking in this activity. The main problem of the mining and metals industry is a legislative and regulatory framework governing the right of subsoil use the private sector. In fact, the basis for access to such right of the private sector is given in the Constitution of Kazakhstan, as well as other legislation governing subsoil. They play the role of the state in promoting qualify for subsoil use. The main problem in Kazakhstan - is the lack of differentiation between the specificity of the mining and metallurgical sectors and the oil and gas sector. The economies of these industries are different, so what works well only in one, is ineffective in another. For example, the system of tendering for geological exploration blocks prospective areas, which provided for in law.

This practice is widely used in the oil and gas industry is not acceptable for the mining and metallurgical industries. Thus, countries that are still trying to follow the same practice in the mining sector, are suffering losses. Due to the onerous tender procedures and duration of the contract negotiations in Kazakhstan acquisition of rights to explore, in comparison with other countries, is a complex and time consuming.

Tax regime applicable to mining in Kazakhstan and metallurgical enterprises, mostly unattractive for new investments and can not compete with the regimes of other countries. One of the reasons for this is the presence of a number of taxes, not differentiating the differences between the mining and metals industry and the oil and gas sector. In particular, for the discovery bonuses, signature bonuses are not common in the international practice for the mining industry, and therefore, increase costs and risks for new investors. Royalties on minerals mined shall not exceed 2% of the net income after smelting. Royalties shall be determined by the law or regulations, and not be set for each case separately, on the basis of negotiations. Concession fees and land rent should be calculated on the basis of a fixed amount per hectare of land area, in accordance with this resolution for exploration or exploitation works.

Governmental organizations play an essential role in the development of mining and metallurgy. Many investors have pointed to shortcomings in the management and lack of transparency in decision-making affecting the public and private sectors, which creates significant obstacles to investment in the mining and metallurgical industry of Kazakhstan. The main goal of attracting and using foreign investment in real economy - will not be achieved. The main reasons for the low efficiency of the model implemented foreign investment are:

-Minor amounts of foreign investment attracted to the real economy;

-Excessive use of external loans are primarily used to finance the budget deficit and the needs of the consumer sphere, ie for non-production purposes;

-Pre-emptive use of foreign direct investment in the field of trade, and not in the real economy.

Under the legislation, the Law «About investments in Kazakhstan» [4], foreign investment can be made in any objects and activities that are not prohibited for such investment legislation. Kazakhstan's legislation provides certain guarantees to foreign investors. Law «About investments in Kazakhstan» [4] created the opportunity to improve the legal status of foreign investment is not situational and not a temporary task performed in Kazakhstan, and the solid, consistent policy, which the country seems to follow and more.

One of the important factors of investment attractiveness of Kazakhstan was holding deep institutional reforms in key areas.

Thus, working model of the investment policy, based on the use of a single source - foreign investment as many studies have shown, did not give the expected results. In these circumstances, there is an objective need to develop evidence-based concept (model) of the investment policy aimed at increasing business activity, the recovery of the national economy and the rise.

Literature sources:

1 Molyakov DS Finance industrial sectors of the economy. - Moscow: Finance and Statistics, 2008.

2 Seysenova A. Investment Policy of the Republic of Kazakhstan and social protection. // Karjy-karzhat - Finance of Kazakhstan. Number 9, 2011.

3 Management Consulting in 2 volumes Volume 2: lane. with Engl. - M: SP Intereksper, 2011.

4 Law of the Republic of Kazakhstan dated January 8, 2003 № 373-II «About Investment (amended and restated as of 04.07.2013.)».