3. Financial Status 3.1 Assets (1) Composition of Assets
The total assets as at December 31, 2009 amounted to 690.70 million baht; it increases from previous year 4.53 million baht or equivalent to 0.66%. The current assets increases 24.21 million baht while fix assets decrease 19.68 million baht. Current assets are cash and cash equivalents decrease 2.11 million baht, temporary investments increase 5.41 million baht because the Company invests from cash balance in Promissory Note and Dept Instrument Fund that has low risk but higher liquidity in return more than bank deposit. Trade account receivable-net increases 25.55 million baht following to sales increase, while inventory decreases 8.97 million baht because of the improvement on effective administrative performance. Other current assets increase 4.33 million baht. Investment of fix assets in related business is decrease 0.61 million baht. Other long- term investment is decreased 6.16 million baht earning from the transformation of capital value in accordance with the principle of fair value while lands, buildings and equipments-net are decreased 9.96 million baht. Invisible assets-net is decreased 0.90 million baht from the pay-cut along to limited longevity. Leasehold rights are decreased 2.19 million baht, while other fix assets are slightly increased. (2) Quality of Assets
(A) Assets
The Company has set up reserve for devalue of assets in full for the capital invest in the companies having retained losses. (B) Accounts Receivable Trade accounts receivable aged over 3 months together with total of returned cheque amount to 14.07 million baht, representing only 6.67% from total of all trade accounts receivable. It is decreased 12.55% from previous year. This affected the effectiveness of credit management as well as the tracking to collect the money very closely. The Company has set up reserve for doubtful accounts amount of 18.66 million baht by taking the same rules as previous year. 3.2 Liquidity
(1) Cash Flow
In 2009 net cash from operating activities is 31.99 million baht. It decreases 56.03 million baht due to the increase of Accounts Receivable and decrease of Accounts Payable. Total net cash for investing activities is 4.1 million baht that mostly has been spent to the Debt Instruments that has low risk but high liquidity with the return that is better than bank deposit. Net cash that has been spent for financial activities was 30.00 million baht that it has been paid for dividend of shareholders. After including cash at beginning of the year, the balance net cash as ended of the year was 8.03 million baht.
(2) Key Liquidity Ratios
As ended of 2009, ratio of liquidity equivalent to 3.30 times and it slightly increase from previous year 0.64 times. Quick liquidity ratio equivalent to 1.55 times and increase 0.38 times from previous year. Though these 2 ratios show the sufficiency of Working Capital with the overview of Cash Cycle, its average was 108 days and more 4 days higher. (3) Short-term Loans which may affect Liquidity The value amount of current assets is 514.48 million baht and it is higher over the current debts amount of 358.70 million baht. The Company has no longer the balance of loans to return, thus this shows the sufficiency of liquidity and the ability to return of loans obviously. 3.3 Investment Expenditure The Company has no list of investment that has significant issue due to the insufficient circumstance from politic and economic.
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