The Federation Council approved the Code of Administrative Court Procedure (CACP), which regulates the procedure of administrative legal proceedings by consideration and adjudgment of administrative cases by the Supreme Court of Russia and general jurisdiction courts. The proposal to adopt such a Code was made by the President Vladimir Putin in his Address to the Federal Assembly in December 2012. In general, the Code will take effect since September 15, 2015 (except certain provisions).
The new legislation introduces the concept of «administrative case», «administrative statement of claim» etc. Persons, participating in a case, are determined: the parties (administrative plaintiff and administrative defendant), interested persons, procurator, bodies, organizations and individuals, appealing to a court to protect the interests of others. Only persons with higher legal education may be representatives in the court of administrative cases.
It’s provided that every person, participating in a case, is obligated to prove those circumstances, to which it refers. Here it’s important to underscore that the obligation to prove the legality of disputed legal acts, decisions, actions (inaction) of authorities and officials is imposed on these persons.
The Code will regulate the order of consideration and proceedings on such administrative cases as: about collection of obligatory payments and sanctions; about contesting of results of cadastral value determinations; cases, being considered by the Disciplinary Board of the Supreme Court of the Russian Federation; about contesting of regulatory legal acts and others.
Information Agency Credinform has prepared the ranking of inventory turnover of paints and varnishes manufacturers. The largest enterprises engaged in this activity in terms of turnover were selected according to the data from the Statistical Register for the latest available period (for the year 2013). Then, the first ten companies by turnover were ranged by decrease in inventory turnover ratio.
Inventory turnover is a ratio of revenue to average value of stocks for a period. Thus, the ratio shows how many times the company used the average stock remainder during the analyzed period. The ratio characterizes the quality of stocks and its management effectiveness, allowing to identify the remains of unused, outdated or unsuitable stocks.
There are no general standards for this ratio; it should be analyzed in comparison with the industry average values. Thus the decrease in inventory turnover ratio can reflect the accumulation of surplus stocks and inefficient warehouse control. However, high turnover is not always a positive indicator, as it can testify about the exhaustion of stocks, which may lead to interruptions in the production process.
|№||Name, INN||Region||Turnover 2013, mln.RUB||Inventory turnover, times||Solvency index Globas-i ®|
|1||CJSC Akzo Nobel Dekor
|Moscow region||3097||15,38||229 (high)|
|2||LLC MEFFERT POLILUX
|Moscow region||3144||7,94||163 (the highest)|
|Moscow region||4987||6,14||224 (high)|
|Rostov region||2382||6,04||269 (high)|
|Yaroslavl region||1930||5,16||182 (high)|
|8||JSC RUSSIAN COATINGS
|Yaroslavl region||2603||4,48||226 (high)|
|9||LLC LARKA SINTEZ
|Moscow region||2687||3,56||220 (high)|
|10||CJSC АВС Farben
|Voronezh region||1504||3,39||237 (high)|
The first place of the ranking takes CJSC Akzo Nobel Dekor with ratio value 15,38 times, which speaks that within a year the company used the average remainder more than 15 times and it is an excellent result. The company has the high solvency index Globas-i®, which shows company’s stable financial condition.
Inventory turnover of paints and varnishes manufacturers in Russia, Top-10
The industry leader by turnover LLC TIKKURILA takes the third place of the ranking with ratio value 11,22 times. It should be noted that according to 2013 results, net profit of the company decreased by 30% and amounted to 414 mln. RUB. However according to total financial and non-financial indicators, the high solvency index Globas-i® was assigned to the company.
In general, all companies of TOP-10 showed good level of inventory turnover ratio, which speaks about competent policy of companies’ management in relation to warehouse control.
In conclusion it should be noted that inventory turnover level is also depends on company’s marketing policy. Thus, for enterprises with high profitability of sales is typical lower turnover than for enterprises with low rate of return on sales.