Research On The Debt Risk Control Of TSL Pharmaceutical Co., Ltd. Based On The COSO Risk Management Framework

Along with the changes in internal and external environment of pharmaceutical industry brought by the new economic pattern,many medium and small-sized pharmaceutical enterprises have faced problems about many aspects such as debt paying ability,weak operation ability and low debt capital usage efficiency in recent years.Though there have been good development opportunities for the pharmaceutical industry recently,most pharmaceutical enterprises also would like to expand their business scale through trading on equity and by seizing these opportunities.However,they neglect various potential risks behind blind development.According to “Enterprise Risk Management Framework” released by COSO in September 2004,it deeply elaborates the enterprise risk management framework and provides concrete and effective reference for enterprises to optimize internal control structure and effectively prevent various risks.By selecting the typical TSL in pharmaceutical industry in Shaanxi as the research object,through risk management framework of COSO,TSL’s operation and financial condition in recent three years is analyzed in this paper.The debt risk problems faced by the enterprises are systematically analyzed by beginning with four aspects including enterprise’s debt risk management and control,debt financing structure,debt capital usage efficiency and comprehensive debt cost.Besides,the reasons for the problems are deeply analyzed and effective coping strategies are proposed for each problem from many perspectives.Then,the effect of the coping strategies is further strengthened by adopting guarantee measures.It’s found that TSL has many problems about debt risk.By combining the data analysis on the enterprise’s financial statements and beginning with the numerical values including enterprise’s asset-liability ratio,liquidity ratio and total assets turnover,the problems that the enterprise faces,aggregating the enterprise’s debt risk and including indefinite internal control,debt capital income & expense,irrational long-term debt structure,capital shortage and debt paying ability,are analyzed designated to improve the management layer’s ability to control the debt risk,risk monitoring department’s ability to prevent and control the debt risk and the ability to prevent and control the debt risk through application of information software to overall analyze systematic scheme for strengthening debt risk control.TSL should rely on information-based management platform and take target-based measures including strengthening the enterprise’s internal and external management,building debt risk warning system and real-time debt capital monitoring system,building professional risk management team,optimizing enterprise’s debt structure,expanding financing channels and expediting the collection of receivables to further improve the enterprise’s current situation of debt risk,release enterprise vitality,facilitate enterprise transformation and upgrading,so that the enterprise could gradually pull over and realize prosperity.