SWOT analysis is a strategic planning method utilized for judging the Strengths, Weaknesses, Opportunities, and Threats implicated in a project or in a business venture. It helps in specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. As per the SWOT Analysis, our organization have following strengths, weaknesses and opportunities.
Strengths
Efficient receivable management
The collection period of the subject was 14 days in FY 2009, as against the management policy of 15 to 30 days credit
This indicates better credit control system which facilitates better liquidity
Low dependency on borrowed funds
The total borrowing to tangible net worth ratio of the subject stood at 0.14 as on 31/Mar/2009
This indicates less reliance on external funds, indicating ability to expand through additional leverage and also there is a low degree of financial risk involved
Weaknesses
Concentrated customer base
The subject makes 25% of its total sales each to Chandigarh Housing Board, PGI WHO Society and Hans Raj Kohli and Sons, indicating high client concentration risk
Decline in gross profit margin
The gross profit margin of the subject has declined in FY 2009 as compared to FY 2008 This indicates that the subject needs to improve the same either by increasing its revenue or by reducing costs
Opportunities
Untapped export market
The subject currently caters only the domestic market which indicates that the subject may explore the opportunity to tap the untapped export market
Growth of end user industry
The growth in end user industry will stimulate the demand for subject's products and this may drive the subject's top line growth
Our Financial Analysis
The current ratio and quick ratio of the subject stood at 1.92 and 0.86 respectively as on 31/Mar/2009
The collection period of the subject was quicker than the industry standard and was 14 days in FY 2009
The subject makes 25% of its total sales each to Chandigarh Housing Board, PGI WHO Society and Hans Raj Kohli and Sons
The account payable days of the subject are stricter than the industry standard and were 45 days in FY 2009
The subject meets 25% of its total purchase requirements each from Gokul Iron & H/W Traders, Surendra Steel and Agarwal Cement and Hardware Store
The debt equity ratio of the subject was better than the industry standard and stood at 0.06 as on 31/Mar/2009
The tangible net worth of the subject has shown an uneven trend during the period under study. The tangible net worth has decreased from INK 2,868 (in thousands) as on 31/Mar/2007 to INR 2,810 (in thousands) as on 31/Mar/2008 on account of drawings made by the proprietor. However, the tangible net worth has increased to INR 3,215 (in thousands) as on 31/Mar/2009 on account of infusion of capital and retention of profit in the business
The capital employed of the subject has shown an uneven trend during the period under study
The capital employed has increased from INR 3,671 (in thousands) as on 31/Mar/2007 to INR 3,723 (in thousands) as on 31/Mar/2008 on account of increase in secured loans, despite decrease in tangible net worth
However, the capital employed has decreased to INR 3,672 (in thousands) as on 31/Mar/2009 on account of decrease in secured loans and unsecured loans, despite increase in tangible net worth
Banker's confidential letter is not available
Insurance policies taken on the assets of the subject are not available
Purafil Engineers India Private Limited Engaged in manufacturing and supplying of louver windows which includes bird screen louver windows, weather resistance bird screen louver windows and fabricated bird screen louver windows.
Processing...
