The Safekeeping Receipt (SKR) is a financial instrument that certifies the safekeeping of certain assets (such as cash, gold, or securities) with a trusted financial institution or a third party. To enhance the company's value by incorporating SKR assets into the company's fixed assets, the process typically involves the following steps:

SKR Verification and Evaluation

• Legal and Financial Validation: Before incorporating the receipt into the company's fixed assets, its authenticity and value must be confirmed with the assistance of an independent auditor or financial institution. This ensures that the SKR is legitimate and accurately reflects the value of the underlying assets.

2. Fixed Asset Accounting

• Classification in the Balance Sheet: The SKR receipt is typically classified as an intangible asset or a long-term investment, depending on its characteristics and intended use. This classification determines how the asset is reported on the company’s balance sheet and its impact on the company’s financial position.

• Accounting Entry: Accounting must accurately record the SKR receipt in accordance with international financial standards. This includes properly reflecting the asset’s value, classification, and any related transactions to ensure compliance and accurate financial reporting.

3. SKR Capitalization

• Investment in Assets Secured by SKR: If the receipt secures assets such as gold or other valuable resources, its value can be used as a basis for increasing the company’s capital.

• Increasing Company Value: When the SKR receipt is included in the fixed assets, the company’s balance sheet assets increase, which in turn improves its capital return ratios (ROE, ROA).

4. Attracting Additional Investments

• Use as Collateral: SKR receipts can be used as collateral to secure loans or other forms of financing. By pledging assets, such as precious metals or other valuable resources, secured by the SKR, the company can access additional capital for business expansion, operational needs, or strategic investments. This increases the company’s ability to leverage its resources while maintaining control over the underlying assets..

• Increase in Share Capital: The receipt can also be used as an investment method to increase the company’s equity, thereby improving its financial position.

5. Risks and Challenges

• Legal Security: It is essential to ensure that the legal status of the SKR receipt is flawless to avoid potential legal disputes. This includes verifying the authenticity of the receipt, ensuring proper documentation, and confirming that all transactions comply with relevant laws and regulations. Legal due diligence is crucial to mitigate risks related to ownership, asset claims, and any future challenges that could arise from the use of the SKR as part of the company’s financial structure.

• Transparency: Investors and regulatory bodies require full transparency regarding the origin of the SKR receipt and the nature of the assets it secures. This includes clear documentation about the assets' ownership, value, and legal status, as well as ensuring that all relevant details are disclosed in the company’s financial reports. Maintaining transparency is critical for building trust, ensuring compliance, and attracting investment or financing opportunities.

6. Practical Application of SKR (Safekeeping Receipt)

• Capitalizing Assets: SKR receipts can be used to capitalize valuable assets, such as gold, cash, or securities, by including them in the company's balance sheet as part of its fixed assets. This increases the company’s total asset base, improving financial ratios like ROE (Return on Equity) and ROA (Return on Assets).
• Securing Financing: SKR receipts can serve as collateral for loans or credit lines, enabling companies to secure financing for growth, expansion, or operational needs without liquidating the assets.
• Attracting Investments: The assets represented by the SKR receipt can be leveraged to attract external investments, demonstrating the company’s strong financial position and enhancing its attractiveness to investors.
• Enhancing Creditworthiness: By including SKR-secured assets in the financial statements, companies can strengthen their creditworthiness and improve their ability to negotiate better financing terms from banks and other lenders.
• Expanding Capital Base: SKR receipts can be used to increase the company’s equity, providing a method to raise capital for strategic projects without the need for external equity issuance or the dilution of existing shares.
• Risk Mitigation and Diversification: Utilizing SKR receipts backed by a variety of assets helps diversify the company’s asset portfolio, reducing overall risk and offering additional security for stakeholders.
• Tax Efficiency: Depending on the jurisdiction, using SKR-backed assets in the company's financial structure can potentially offer tax advantages or help in managing tax liabilities more efficiently.

In practice, the SKR receipt offers businesses a versatile financial tool for enhancing value, securing capital, and managing assets in a structured, transparent, and legally secure manner.

Example: SKR Capitalization in a Company

Let's assume the company holds an SKR receipt for a gold deposit worth 5 million EUR. The company can:

• Record in the Balance Sheet: The receipt is registered as an intangible asset, increasing the company’s total value on the balance sheet. This strengthens the company's financial position and asset base.

• Use as Collateral: The company secures a 2 million EUR credit line, which is invested in the purchase of a new production line. The SKR receipt serves as collateral, allowing the company to access funds for its expansion.

• Improve Financial Ratios: The overall value of the balance sheet increases, and investors see the company as a stable and reliable partner. This enhances financial ratios like Return on Equity (ROE) and Return on Assets (ROA), improving investor confidence and potentially attracting more investment.