kota fibers

Kota Fibres, Ltd. Case Brad Medford March 12, 2009 Executive Summary Kota Fibres is a producer of nylon fiber with one plant in India. The take with supplies many flyspeck local textile weavers. Ms. Pundir, The managing director and principal owner of the participation has come to a shocking identification recently; despite increasing gross revenue growth Kota Fibres has major(ip) financial Issues. Problem For or so people walking up a steady deliver is simple, However if at that place is obstacle like a spate in your racetrack careful planning will be necessary to bristle and return back down safely. Kota Fibres Has a steep seasonal worker twine in their sale during May, June, and July. currently a life-sized outflow of coin far in advance of this spike is necessary to prepare for the increase in sales. Kota dose non receive payment from these seasonal sales for an average of 47 days. The time between seasonal cash outflows and Inflows is Kotas probl em. synopsis Kota Fibers uses a short term row of credit from All-India cant & Trust Company with a 14.5% spare-time activity rate to finance its seasonal spending needs. The bank demands that the stock of credit be cleaned up for at least 30 days each(prenominal) year. Kota Fibres needs to repay this loan by the end of the year. Kota Fibers close to pay a 15% inscribe tax to the government.

A tax inspector is stationed at the store and will non clear the trucks for deliveries before Ms. Pundir comes up with the money for the payment. Because of the seasonality of sales Kota makes no profit in the beginnin g of the year. (See designate 1) Exhibit 1! Kota begins purchasing its extra raw materials for the summer dickens months in advance. The suppler that Kota Fibres uses does not extend any credit and demands on the attitude payment. Ms. Pundir extends all of her customers very lenient credit term. Kota receives 40% of the sales from the month before after one month and the departure after two months. This makes for a four months wisecrack during which the company cannot meet its...If you want to get a plenteous essay, state it on our website: BestEssayCheap.com

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