S.K.

CHEMICALS

Business Brief / Model:

 S.K CHEMICALS is engaged in trading of
chemicals such as Linear Alkyl Benzene (LAB),
Palm Fatty Acid Distilate(PFAD) & Sulphuric Acid.
 The firm has extensive experience of trading
business of more than 20 years in the chemical and
minerals.
 The firm procures the trading material from the
domestic as well as international market and
supplies the same in the domestic market.
 The firm is doing its entire business wherein
Channel Partner is Hindustan Lever Limited(HUL)
at the backend.
 The customers of the firm are mainly Sulphonators
of Hindustan Unilever Limited and therefore there is
no marketing/ payment collection / exchange risk
involved for sale of its products.
 Further the firm is sourcing its material from the
suppliers which are also channelized and finalised
by HUL.
 The business model of the firm is entirely
transparent and risk free.
 FINANCIAL HIGHLIGHTS

Value- Rs crores FY 2021 FY 2022 FY 2023 30.09.2023

(AUDITED) (AUDITED) (AUDITED) (PROV)
SALES 232.74 393.48 822.73 *338
PBT 1.90 2.41 5.08
STOCKS 2.37 131.06 218.77 83.14
DEBTORS 10.28 7.70 80.04 21.38
CREDITORS 44.02 141.39 276.50 65.61
BANK
BORROWINGS 1.19 7.73 -4.13 14.53
TOTAL OUTSIDE
LIABILITIES(TOL) 63.11 188.78 306.41
CAPITAL 8.02 7.14 18.97
TANGIBLE NET
WORTH(TNW) 8.02 7.14 18.97
TOL/TNW 7.87 26.44 16.15
CURRENT RATIO 1.10 1.06 1.04

*annual estimate: Rs 850 cr

Comments:
 Sales in FY 2023 is Rs 823 crore, reflecting a jump of around 110% YoY.

 Profit Before Tax (PBT) is Rs 5.08 crore in FY 2023, which has almost
doubled from the preceding FY 2022.

 TOL/ TNW improved from 26.44 as on 31.3.22 to 16.15 as on 31.03.2023,

TOL/TNW is higher because of the unpaid sundry creditors and against
that there is unsold inventory which is almost (80%-90%) of the
outstanding sundry creditors.

 Firm’s Capital has also increased by almost Rs 11 crores during the FY

2022-23 due to induction of capital and plough back of profits.
EXISTING BANKING FACILITIES WITH CANARA
BANK, UDAIPUR:

(Rs. / crores)

Existing

(A) Fund Based:

OCC 3.75

(B) Non Fund Based:

Foreign Letter of credit *14.00

Total (A+B) 17.75

*INTERCHANGEABLE UPTO 60% from Non Fund Based toFund Based limits