3. The composition and structure of capital investments

Capital investments consist of the following basic elements: - costs of the installation and construction works (ICW) – construction of buildings, constructions, works on development, preparation and planning of the territory of building, installation of the processing, operational equipment:

- costs of acquisition of different types of cars, mechanisms, tools and stock.

- costs of research and development (research inventions and design development):

- costs of design and exploration work.

Depending on the signs which have been been the basis for classification, the structure of capital investments is subdivided into the branch. territorial, technological and reproduction.

Distribution of capital investments on branches characterizes their branch structure. Its improvement goes on the way of increase in capital investments to development of progressive industries.

Improvement of technological structure of capital investments is of great importance for increase of production efficiency: i.e. their distributions between the main compound to parts: costs of installation and construction works, cost of the equipment, cars, mechanisms, tools, other capital works and expenses. Progressiveness of technological structure is defined by increase as a part of capital investments of specific weight of expenses for acquisition of active part of the fixed business assets.

The technological structure has essential impact on efficiency of capital investments. The increase as a part of capital investments of a share of the equipment, constructions, cars, i.e. the most active part of fixed assets, in comparison with costs of SMR, allows to make relative decrease in capital investments on a unit of production. Improvement of structure of capital investments promotes increase of a technological level of the enterprise, growth of mechanization and production automation.

A number of factors and, first of all, scientific and technical progress has impact on change technological structures in mechanical engineering; weight reduction and dimensions of processing equipment, rational building of the industrial enterprises.

Distribution of capital investments on the economic region of Russia is called as territorial structure of investments. Its formation is aimed at providing the accelerated development of the industry of east regions of the country.

The reproduction structure of capital investments is their distribution in the main forms of reproduction of fixed assets: on new construction, reconstruction, expansion and modernization.

Reconstruction and expansion of the operating enterprises will allow in shorter terms and with smaller capital expenditure, than at new construction, to increase capacities, to reduce terms of development of again put into operation design capacities.

4. Ways of increase of economic efficiency of capital investments

Efficiency of capital investments is formed of four stages: planning of capital investments, design of capital construction, construction production, development of again entered capacities.

At a stage of planning improvement of branch structure of capital investments, their prime direction in development of progressive industries is provided: increase of specific weight of capital investments in modernization.

The design stage of industrial construction is a wide use of the advanced achievements of science and technology; maximum use of standard projects, broad unification of construction elements of designs.

The stage of construction is an improvement of the organization and technology of installation and construction works: construction improvement of quality: improvement of planning, management and economic incentives.

The stage of operation of again entered objects is an ensuring complex commissioning of fixed assets and adjacent productions, preliminary training and necessary elements of revolving funds.

Many directions of increase of efficiency of capital investments are the general for all branches of a national economy. However concrete manifestation of these or those regularities depends on specifics of process of production, purpose of production and applied objects of the labor.

Decision-making on the basis of a careful economic justification

expediency of an investment of investments on development of production is

important, but not the final moment in effective use

capital investments as capital construction ahead is necessary,

i.e. implementation of the chosen project.

Design and direct construction of object, i.e. capital construction, essentially influence efficiency uses of capital investments. Increase of efficiency of capital investments and capital construction at the enterprise it can be reached for the account:

• development of the good project and reduction of term of design;

• reductions of term of construction;

• applications of progressive construction designs, details and

construction materials;

• broad application where it is possible and expedient, good

standard projects which already justified itself in practice. Application

standard projects allows to lower considerably expenses and terms on

object design, and also sharply decreases risk that will be constructed

unsuccessful object

• mechanization of construction and finishing works;

• broad application of monolithic housing construction instead of the panel;

• prevention of dispersion of capital investments on many construction

to objects;

• applications in the project of the most advanced equipment and technology taking into account

domestic and foreign achievements.

Choice of these or those directions and ways of increase of efficiency

capital investments depends on specifics of the enterprise and specific conditions.

The most important factor of increase of efficiency of a social production, ensuring its high efficiency was and remains scientific and technical progress. Until recently scientific and technical progress resulted evolutionarily. It was preferred as improvement of already existing technologies, partial modernization of cars and the equipment. Such measures gave certain, but insignificant return. Incentives of development and deployment of actions for new equipment were insufficient. In modern conditions of formation of the market relations revolutionary, high-quality changes, transition to essentially new technologies, to equipment of the subsequent generations - radical modernization of all branches of a national economy on the basis of the latest developments of science and equipment are necessary.

The major directions of scientific and technical progress:

- broad development of progressive technologies

- production automation

- creation use of new types of materials

In the conditions of transition to market economy, its initial stage actions of scientific and technical character are very important. Staff of the enterprises, their heads pay the main attention to material work incentives. The most part of profit after payment of taxes goes to consumption fund. Such situation is abnormal. Obviously, in process of development of the market relations of the enterprise will start paying due attention to production development on prospect and will allocate necessary funds for new equipment, production updating, for development and release of new production.

Besides, it is necessary to create organizational prerequisites, economic and social motivations for creative activity of scientists, designers, engineers, workers. Radical restructurings in equipment and technology, mobilization of everything, not only technical, but also organizational, economic and social factors will create prerequisites for substantial increase of labor productivity. It is necessary to provide introduction of the latest equipment and technology, widely to apply progressive forms of the scientific organization of work on production, to improve its rationing, to achieve growth of culture of production, order and discipline strengthening, stability of labor collectives. Though, everything higher told extremely important also is necessary for the modern enterprises, but it is necessary to consider realities of today's life. Similar measures will be able to introduce, probably, very much at a distant day and very few enterprises because of the developed and recently become aggravated economic, social crisis.

One of important factors of an intensification and increase of production efficiency is the regime of economy. Resource-saving has to turn into a decisive source of satisfaction of growing requirement in fuel, energy, raw materials and materials. In the solution of all these questions the important role belongs to the industry. It is necessary to create and equip a national economy with cars, the equipment, providing high efficiency of use of constructional and other materials, raw material and fuel and energy resources, creation and application of highly effective low-waste and waste-free technological processes. Therefore modernization of domestic engineering industry - a decisive condition of acceleration of scientific and technical progress, reconstruction of all national economy is so necessary. It is impossible to forget and about use of secondary resources.

Conclusion

In other words, capital investments are investments into fixed assets, or costs of creation and reproduction of fixed assets. Capital investments as call investments in non-current assets, on the account with such name their reflection in accounting is conducted.

Capital investments are a component the forming a capital of investments and a necessary condition of existence of the enterprise.

If it neglects capital investments, that, despite a gain at the expense of it arrived in the short-term period, subsequently, in the long-term period, it will provoke disappearance of profit and will lead to competitiveness loss. Capital investments are long-term investments into own organization. They can bring in the current incomes or provide profit in the future, but, anyway, they don't take part in economic turnover of the enterprise, that is, aren't spent and won't be amortized.

Capital investments are carried out at the expense of various sources of financing which don't exclude each other and can be used at the same time. The main source of financing of capital investments are own enterprise assets in the form of depreciation and profit. Level of self-financing is considered high if the specific weight of own sources reaches 60% and more from the total amount of financing. Except self-financing, plays such source large role. as securities market though in Russia it is used still far not completely. The significant role as source of financing belongs to borrowed funds, especially bank credits.

Allocations from the state budget, off-budget funds and foreign investments can be a source of capital investments. In the conditions of market economy the enterprise independently determines volumes, the directions, reserves and efficiency of capital investments. The choice of this or that direction of investments is defined by many circumstances: investment climate in the country, a condition of technological base of the industrial enterprises, credit policy, taxation system, a level of development of legislative base in the sphere of investment activity.

Efficiency of capital investments can be considered in several types:

public, it is characterized by the indicators reflecting results of impact of the project on life of society as a whole;

commercial, it is reflected in system of indicators for establishment of expediency of implementation of the project from a position of the investor;

the budgetary.

When using in the project of means of budgets of various levels, the assessment of expediency of the project from positions of these budgets is made. As a result of the analysis of influence of made capital investments on efficiency of the primary, financial and investment activity of the organization, is established how various indicators of this activity will change.

Thus, capital investments - funds of the state, the enterprises and the natural persons, directed on creation, updating of fixed assets, on reconstruction and modernization of the enterprises. Capital investments play very important role in economy of any state.

Investment activity - set of practical actions on realization of investments. It can be carried out at the expense of own financial resources and intraeconomic reserves of the enterprise, and also at the expense of the loan and raised financial funds of investors, investment allocations from the state budget, foreign investments. Formed of capital investments assume increase in production material and intangible assets of the enterprise. The investments directed on creation and reproduction of fixed assets, having usually long-term character, call capital investments. Implementation of investments into capital investments assumes risk analysis of investment and profitability of securities. Main goal of formation of an investment portfolio is the greatest possible mutually repayment of the risks connected with this or that form of capital investments that provides reliability of a contribution and obtaining the greatest guaranteed income.

In order that updating of the fixed business assets took place cyclically (each 5 - 10 years), it is necessary to solve a problem of the organization of investment process - to squeeze it in time. It means that each stage or a stage of development of the project, construction, development on full design capacity of production objects have to be carried out in strictly regulated terms, and total period of implementation of the investment project those terms during which construction in the last decades in our country is carried out have to be two-three times less. It is a big economic problem as the excessive duration of investment process reduces efficiency of capital investments and reduces replenishment of the national income at the expense of enclosed to investments.

Important question of the investment project is the choice of the most effective form of the organization of the operating or new enterprise (specialization, cooperation, diversification, a combination, concentration). The choice of the best option has to be proved economically. The area and location of new capacities in many situations get out by means of economic-mathematical methods on group of companies for the perspective period.

It is necessary to study positive and negative experience of the organization of production during the previous periods of our economy.