Information agency Credinform has prepared a ranking of the largest Russian manufacturers of detergents, perfumery and cosmetics. The enterprises with the largest volume of annual revenue (TOP-10) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2016 and 2015). Then they have been ranked by leverage ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Leverage ratio (or a ratio of debt and equity) is one of one of financial stability ratios. These ratios demonstrate potential opportunity of granting of long-term loans or investment, as they assess the company’s ability to meet its long-term obligations. Leverage ratio (Lr) is a ratio of total debt to total equity, and it indicates the number of units of company’s borrowings for every unit of its own source of financing.

Its recommended value is from 0 to 1. The ratio of debt and equity should not be negative, so a ratio value within the limit is one of the indicators that the company is able to meet its obligations.

A calculation of practical values of financial ratios, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas by the experts of the Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries. The practical value of leverage ratio for manufacturers of detergents, perfumery and cosmetics amounted from 0 to 5,55 in 2015.

The whole set of financial indicators and ratios of a company is to be considered to get the fullest and fairest opinion about the company’s financial standing.

Leverage ratio of TOP-10 companies is higher than the average industry value. Five companies of TOP-10 have a ratio value within the recommended figures, three companies have index value within the practical value, and two companies have a value above the limit of recommended value (green, orange and red colors respectively in columns 6 and 7 of Table 1 and Picture 1). Three of TOP-10 companies have a decrease in revenue or net profit as compared to the prior period (red highlight in columns 3 and 5 of Table 1).

Picture 1. Leverage ratio and revenue of the largest Russian manufacturers of detergents, perfumery and cosmetics (TOP-10)

Industry average values of leverage ratio in 2006-2015 are within the recommended and practical value (Picture 2). This represents the companies of the sector as financially stable and investment attractive ones.

Picture 2. Change of industry average values of leverage ratio of Russian manufacturers of detergents, perfumery and cosmetics in 2006-2015

All TOP-10 companies have got a superior or a high solvency index Globas, that indicates their ability to meet debt obligations timely and in full.

Since July 1, 2017 restrictions when performing municipal control are imposed by the Federal Law «On Amendments to the Federal Law «On protection of rights of legal entities and individual entrepreneurs when performing government control (supervision) and municipal control» and the Federal Law «On strategic planning in the RF» of 03.07.2016 №277-FL.

It is provided by the Law that the functionaries performing municipal control are not entitled to:

• - ask from economic entities documents or information (including permission documentation) that is already available in the government or self-governing authorities and subordinate organizations. The list of these organizations is defined by the Government of the RF;
• - ask from economic entities documents or information before inspection starts.

Acquisition of such documentation before inspection is possible only under the information interaction between departments.

Functionaries of a supervisory authority are not entitled to control the fulfilment of prescriptions of regulatory documents that are not provided to mandatory application according to the Russian legislation.

Besides, it is provided by the law when performing planned investigation to use check lists that must be developed by all the government or municipal supervisory authorities in accordance with general requirements of the Government of the RF. Answers to the questions of the check lists should let make a firm conclusion about compliance of an examined organization or an individual entrepreneur to the mandatory requirements that are subject of obligatory inspection.

In cases of planned inspections by several supervisory authorities at once, check lists also can be used.

Filled check lists are obligatorily applied to the inspection acts.

The subscribers of the Information and Analytical system Globas can learn about planned inspections in relation to themselves or their contractors by looking the company report section «Inspection`s plan of supervisory authorities».