Based on the results of the assessment of the company's corporate governance system for 2019:

State Enterprise Central Securities Depository presented a report, conclusion and recommendations on improving the efficiency of the corporate governance system of the company No. 11-15 / 160 OTs dated February 12, 2019.

According to the results of the assessment of the corporate governance system, the total number of points was 1,060 points, that is, 88.3%, and in the opinion of the Central Securities Depository, the level of the corporate governance system in BIOKIMYO JSC is recognized as “high” based on the results of the assessment carried out in 2019.

As a result of studying the assessment of the corporate governance system, the following were identified:  

Remarks on non-compliance with the recommendations of the Code

Explanations

The long-term strategy of the company has not been approved

The company is unable to develop a long-term strategy, since the main economic and financial indicators of the strategy depend on the balance of production of finished products, which is annually approved by the Cabinet of Ministers of the Republic of Uzbekistan for one year.

About obtaining a quality management system certificate

Received the national quality certificate ISO 9001: 2015 and ISO 22000.

The company carries out activities in the field of production of strategic raw materials, which are sold only to enterprises of the Republic of Uzbekistan. In this regard, a national quality management certificate was obtained and an audit is carried out once a year.

Based on clause 37 of the "Regulations on the procedure for certification of the management system" approved by the order of the Director General of the Uzbek Agency for Standardization, Metrology and Certification dated January 4, 2016, a quality audit that the relevant ISO standards are applied in the activities of the enterprise should be carried out no more than once a year.

On the measures taken to reduce accounts receivable

At the end of 2019, accounts receivable increased compared to the beginning of the reporting year. There are no overdue receivables. The main reason for the increase in accounts receivable is the preliminary purchase of the main raw material, wheat, at the UZEX to ensure uninterrupted operation of production, 100% prepayment for energy resources, tax payments to the budget.