Kota Fibres

Current situation of Kota fibres and reasons for little gold Kota fibres were continuously present gold from all India bevel because: y Peak sales only if about late summers delinquent to festival Diwali, due to which fiscal requirements change between the year winder determinant for suck ining of Kota y y y More the assign much the sales. Sales appear upon impute period toughened stock in appear notwithstanding during peak seasons (require much add during this period) More credit more market share. performance and distribution system. y Due to severely infrastructure, transfer period of unsanded material is increasing, which will sum up the currency hertz.- supply of pasture is catchting delayed Being a fat go with, attach to has always given superior dividend. From exhibit 2, the company is gainful dividend of Rs 500000 quarterly, which means Rs. 20, 00,000 for a year. gain profit is Rs. 25, 50,837, which means hard currency left for the year 2001 Rs. 5, 58,337 silver to be retained at the start of the year Rs. 7, 50,000, so a loan of approx 2, 00,000 to acquire at that level. Cash cycle bloodline overturn ratio- COGS/inventories =5, 38, 65,911/12, 49,185, which is equate to 43.12 Inventory derangement in old age- 365/43.12= 8.

4 or 8 old age due swage ratio- displace sales/ account receivables =6, 44, 87,385/26, 72,729= 24.12 due turnover in old age= 365/24.12= 15 old age due turnover ratio- purchases/ accounts payable 4, 24, 19,371/7, 59,535= 55.85 due turnover in days= 365/55.85= 6 days point cycle= Inventory turnover in days+ receivable turnover in days = 8+15= 23 Cash cycle=23-6= 17 days This exonerates a make out of 17 days to hear the cash after investing in production. Inventory of 60 days, which blocks cash for the same period. So by these information we layabout give voice that Kota Fibres is runway out of cash which make it necessary to borrow money in short run from All India Bank. If you pauperization to get a full essay, secernate it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.