NAME: - PRATTIPATI NISHNAT

CLASS: - 5TH SEM ‘C’ SEC

SRN: - PES3UG20BC720
RESEARCH PROJECT
Topic: - The 2011 floods impact on the Thai industrial estates.
Financial stability: a ratio analysis with policy recommendations.
Abstract
The financial viability of businesses located in seven Thailand
industrial estates after the 2011 floods is examined in this article
using ratio analysis. There are 651 businesses in those seven
industrial parks. They are as follows, in order of size: Rojana,
Navanakorn, Hi-Tech, Bang Pa-in, Factory Land, Saharattananakhon,
and Bangkadi Industrial Estates. Flooding in 2011 especially hard on
all of them. 514 businesses (78.96% of the total number of
businesses on the 7 industrial estates) were chosen and included in
this study after excluding the 75 businesses that failed to report their
financial statements, the 43 businesses that closed after the floods,
and the 19 businesses that first registered their businesses after
2011. Its goal is to look at the firms' post-flood financial health and
how soon they were able to bounce back from the catastrophe. The
financial data for the sample were split into two distinct time
periods: the flood year (2011) and the years after the disaster (2012–
2015). Twelve financial ratios were chosen to assess changes in the
firms' post-flood financial status after studying regularly used
indicators. We checked the data for normality before deciding to use
a nonparametric independent test with confidence intervals of 90%,
95%, and 99%. To our surprise, the main result of this article is that
the afflicted organisations' debt and, to some extent, liquidity were
not problems for them. Statistics-wise, their working capital and
current ratios appeared to be satisfactory. However, they lacked
deliverable inventory since manufacturing had stopped amid the
flooding. These businesses therefore experienced issues with their
inventory and accounts receivable. The catastrophic floods also had
an impact on business profitability, making 2011 the year with
noticeably the lowest profitability between 2011 and 2015.
"This study uses certificate appraisal to investigate the financial
effects of connections established in seven of Thailand's top areas
during the floods. Particularly harsh with all of them flooding in the
selection of affiliations for this study led to the elimination of
affiliations that neglected to submit their usage plan abstracts, 43
affiliations that ceased operations after the floods, and affiliations
that genuinely chose relationships later.
"It will probably examine the stability of those relationships' finances
following the floods and see how soon they were able to recover
from the catastrophe. The model's financial data were separated into
two fascinating time periods: the flood year and the years following
the flood. Looking at commonly used pointers as a result, to examine
changes in the affiliations' post-flood financial condition, financial
degrees were used. "REASONING AND OBJECTIVES

"The public authority had been put under political pressure to

provide assistance, compensation, and reclamation to the flood
victims. Despite this, the compensation mostly relies on the subjects'
own self-reports, which are typically exaggerated. The conscientious
government employees lack the resources and drive to analyse the
instances.
"In addition, the overwhelmed region functioned as the main
dividing line for judging rural misfortune and suffering generally,
regardless of how long the floods lasted or how terrible they were.
Thirdly, even though several government agencies have collected
important information on the effects of the floods, especially the
satellite photos that the Geo-informatics and Space There hasn't
been any attempt to use such data for profit, according to the
Advancement Office and the Financial Study.
"This review has three goals in mind. We'll briefly discuss the causes
of the flood and the administrative power's reaction method first.
The next goal is to reassess the World Bank's predictions for national
calamity. Thirdly, the evaluation will compare the wages and
utilizations of families living in spilled over regions with those of
families living in non-spilled over regions to determine the effects of
the flood on those populations. Finally, a few systemic suggestions
will be made.
THE FLOODS IN THAILAND:
Effects and System Reaction With the overall flood inundation area,
the flood affected 69 different locations. Of them, Bangkok and the
surrounding domains were in the "Chao Phraya and Tha-Jeen Stream
basin," where areas were most seriously inundated. flooding first
appeared in late July. and left at the middle of December. actual
elements interacting with the floods in Thailand the surface water
from the Northern district flows south to the sea through numerous
large streams in the "Chao Phraya Stream, the Tha-Jeen Stream, and
the Pasak Stream basins" in the Lower North and the Central Fields
due to the higher levels of the Northern districts. In all honesty, the
floodwaters progressed steadily until they overflowed the stream
banks in the Central Fields.
Likewise, most of the floodwater had to be redirected to either the
east or west of Bangkok since Bangkok's sewage and canal systems
are designed for rainy drainage rather than flood discharge. The costs
and damages would have been significant without this diversion,
undermining confidence in Thailand's administrative skills. losses and
flood-related damages.
Things that cause floods can lead to both natural and human-made
errors. The four main causes of the floods were listed above.
Following five consecutive typhoons in the windy season, which
caused the second, water overflow from the main streams, the third,
unsightly drafting in the flood fields, and the fourth, ill-advised flood
the executives, the first event—the highest amount of precipitation
ever recorded—occurred.
The 1,781 millimetres of precipitation that fell on average between
January and October was the most on record and was 35% more
than the 50-year average. In addition, 5 typhoons occurred nonstop
between the the end of June and the beginning of October, plus
heavy precipitation in the Focal areas and in the mountains to the
North. "The total rainfall from July to September was 1,156 mm,
which is the highest amount of rainfall ever recorded since records
began to be kept in 1901. According to estimates, there will be a
rainfall like this once every 250 years ". The early stormy season
storms also took the water steps up in the large dams to their
highest limit, the Haima Melancholy, and triggered streak floods in a
few Northern and North-eastern districts. The largest channel limit is
being faced by a high thickness of cubic metres per second at the
Sawan area tide station.
The big reservoirs' existing operations have serious flaws. This raises
questions about the reliability of recent predictions of catastrophic
flooding, as the hazy instructions for opening the spillway crest gates
at substantial dams, as well.
For the circumstance, the unyielding and likely outdated results from
a lack of knowledge regarding sporadic weather condition estimates,
outdated flood hydrology assessments and directing of the
reasonable greatest flood and a one-in-long-term, as well as a lack of
knowledge regarding changes in editing designs that affect the
specific entryway activity plan. Due to the small differences in water
levels between the normal water levels and highest water levels
(tight Rule bends) at a few large dams, the time available to the dam
administrators to consider their options and obtain approval from
more important positions when they need to immediately alter the
schedule of door opening due to an emergency is also constrained.
It is certain that there were political pressures on the dam
administrators to postpone opening the gates, avoid flooding
downstream, and ration the most extreme water for the dry season
crops. There were also likely financial incentives for the Power
Creating Authority of Thailand to purposefully keep stock water in
the Bhumibol and Sirikit Dams at significant levels since the second
quarter of the year to increase revenue from the lower cost of power
era. As a result, EGAT stated that the executives' water usage ratios
included releasing water from the dams were built according to their
Standard Bends. Additionally, it stated that given the method for fuel
levy levies, EGAT could not gain from ROIC by storing more water in
dams. Classification of Pay Impact Families in the swamped regions
saw a negative impact on their cash pay because of the floods, whilst
those in the non-overflowed regions saw an increase in their total
out-of-pocket income. However, the flood had a detrimental impact
on families' income and compensation payments in both overflowing
and unaffected areas, demonstrating that there was a negative
overflow effect on wage work across the whole nation.
Given that most of the agricultural revenue is generated between
October and December, it is astounding to realise that floods had no
detrimental consequences on farm income or company profit.
Because there was no income survey, comparing farm revenue in
with that in allows for the accurate determination of the impact of
floods on agricultural income. It is possible that home companies
may be able to create a larger net profit because of the increased
costs of consumer products and services brought on by the
interruption of supply, which can be described in terms of corporate
revenue. Because the price effect outweighed the income effect of
the flood, household spending decreased.
IMPLICATIONS OF POLICY
The investigation described above has three main objectives: to
provide an explanation of the causes of the 2011 flood in Thailand
and the government's response; to update the World Bank's
estimate of agricultural losses; and to determine how the flood
affected household spending and income using the "difference-in-
difference" method. The deluge, the biggest flood in modern Thai
history, caused losses and destruction.
The greatest precipitation ever recorded, including typhoons that
were concentrated in a short period of days during the windy season,
greeted it. Nevertheless, human error exacerbated the problem,
particularly the uncontrolled changes in land use and poor flood
management. Political pressure prevented the public authority from
setting aside funds for flood board activity designs, property
recovery, and help and compensation for flood casualties, all of
which were made within a very short period following the flood.
Most of the the government's payments to households went toward
compensating farmers. However, our estimations are further
hampered by the issue of old data on agricultural land use, which has
recently been quickly absorbed by non-agricultural purposes,
especially in certain areas that are developing quickly. The study also
creates the "difference- to determine the effect of the flood on
family spending and income in the 26 inundated provinces. as there
were no inquiries about the impact in the 2011 Socio-economic
Survey.
By identifying locations that endured protracted floods for around
two weeks, this study modifies the World Bank's assessments of
agricultural suffering. The World Bank's judgments of poor luck are
more severe than the most recent ones. This is because the World
Bank gauges only used the size of the inundated homestead handles
and failed to take the length of the flood into account. The emphasis
goes on to suggest that utilising the fourteen-day flood period from
the satellite photographs, the MOAC's stated loss of agricultural
result may be too large owing to the ethical danger of ranchers' self-
reports that were requested for compensation from the public
authority.
The satellite radar images allow for the coordination of the dwellings
in the overpopulated sub-locale with the overpopulated areas in the
satellite photographs. The anticipated results demonstrate the
dependence between households in overwhelmed and non-
overflowed regions by showing that not only did families in
overflowed regions experience a significant drop in expenditure due
to the flood, but also those in non-overflowed regions. One
argument is that the flood had a significant impact on Bangkok and
the surrounding areas, which are the nation's major economic hubs
and where workers from each district commute to work. Due to the
drastic reduction in salary, their families in the non-overflowed areas
received less money at home, which forced them to cut back on their
expenditures.
One interesting finding is that families at lower income levels had
less financial hardship and loss of livelihood because of the 2011
flood than did those with higher income levels. This study helps to
explain why the public authority attempted to use the flood as their
ground-breaking approach, spent billions of baht on CEO
remuneration, and expects to spend an additional billion over the
next two years. The assessment also identifies several flaws in the
data currently available for flood control. Despite the flood
information base and data framework being outdated, no
administrative body has concentrated on improving the limit of their
data habitats. The assessment also identifies several flaws in the data
currently available for flood control. Despite the flood information
base and data framework being outdated, no administrative body
has concentrated on improving the limit of their data habitats.
Despite the enormous amount of information on how flooding
affects results and damages to property provided by several flooded
homeowners.
Important personal information was afterwards disposed of and was
not used in the negotiation of the agreement. Actual falls short when
it comes to important flood data that would enable customers to
assess the storm's true impact. Two key areas need to be worked on
diligently. These include interest in ground truthing efforts to
validate the data from satellite images and the creation of a
computerised rising guide. The most important data that is urgently
needed is updated land-use plans and the digitalization of town
boundaries.
Additionally, it's important to investigate the possibility of using
novel techniques to detect and measure floods in metropolitan
areas. Next are some suggestions for tactics. First and foremost, the
following capabilities of quantifiable offices and organisations that
are accountable for flooding the executives need to be seriously
strengthened: information gathering, information base
development, information handling and disclosure using IT, and
human resource development. Additionally, it is important to
encourage these organisations to share information and ideas with
information users.
CONCLUSIONS
Bangkok saw its last largest flood in 1942. The World Bank forecasts
that based on the present river discharge. The quantity of rain that
fell from July through September was essentially the most since
records began being kept in 1901. The survey of farmers who borrow
from the Bank for Agriculture and Agricultural Cooperatives was
originally going to be used by the authors to update their estimate of
agricultural damages
Tragically, BAAC neglected to record specific information on
destroyed property and farm equipment into its computer system.
Since only unlucky yield drifting rice may be planted in flood-prone
places, the land cost is low. The enterprises' qualifying for larger
assessment "occasions," lower minimum pay than those in Bangkok,
and strategy shifts are other reasons why the Less than 50 kilometres
from Bangkok, in Ayutthaya, bequests are organised.
Even while it is possible to identify the towns in which the families
reside using the Financial Overview, experts are unable to determine
the town limit using satellite images since there is a lack of accurate
digitalized data on town limits. The scientists did not consider the
fourteen-day flood period for two reasons. First off, it might be
difficult to determine from satellite data which places were
submerged for more than 14 days. Second, both the long-term
affected families and the temporary affected families' spending was
greatly influenced by the flood.