The losses of AvtoVAZ (calculated in accordance with the IAS) amounted to 49.2 billion RUR last year. This figure was twice the number of what the Russian car manufacturer lost in the year 2008, namely, 24.7 billion RUR. The company’s revenues dropped by 45% in 2009 and came to 92.04 billion RUR, while the operating losses rose to 45.5 billion RUR, RBC daily says.

AvtoVAZ explains these enormous losses have to do with dropping car sales, among other factors. In fact, the sales decreased by 44%, down to 349,500 cars. Another reason was the need to set up the fund depreciation reserves (14.2 billion RUR). Finally, the enterprise included the production stoppage expenses (8.8 billion RUR) in its report.

According to the comments made by Ernst & Young, an auditor, on the car maker’s report, AvtoVAZ’s short-term debts exceeded its working assets by 52.97 billion RUR at the end of 2009. This means that the business not only depends on current debt refinancing but also finds itself in a state of uncertainty that could raise serious doubts as to whether the company can carry on as a no-stoppage going concern.