kota fibers

Kota Fibres, Ltd. Case Brad Medford March 12, 2009 executive Summary Kota Fibres is a producer of nylon fictional character with one plant in India. The come with supplies many picayune local textile weavers. Ms. Pundir, The managing manager and principal owner of the alliance has come to a scandalous realization recently; disdain increasing sales yield Kota Fibres has major financial Issues. Problem For or so people locomote up a calm deliver is simple, However if there is obstacle like a spate in your alley careful planning volition be necessary to muster and return back bulge safely. Kota Fibres Has a steep seasonal worker worker grip in their sale during May, June, and July. currently a large outflow of coin further in advance of this spike is necessary to prepare for the grun-inth in sales. Kota dose non receive carryment from these seasonal sales for an average of 47 days. The time between seasonal cash outflows and Inflows is Kotas problem. Analysis Kota Fibers uses a short term row of credit from All-India Bank & religious belief Company with a 14.5% spare-time practise rate to finance its seasonal spending ineluctably. The bank demands that the argument of credit be cleaned up for at least 30 days each year. Kota Fibres needs to repay this loan by the end of the year. Kota Fibers most pay a 15% reckon tax to the government.

A tax inspector is stationed at the interject and will not suck the trucks for deliveries forrader Ms. Pundir comes up with the property for the payment. Because of the seasonality of sales Kota makes no profit in the beginning of the year. (See depict 1) Exhibit 1 Kota begins purchasing its wasted raw materials for the summer demon months in advance. The suppler that Kota Fibres uses does not go across any credit and demands on the spot payment. Ms. Pundir extends all of her customers really lenient credit term. Kota receives 40% of the sales from the month before after one month and the remainder after dickens months. This makes for a four months go during which the company cannot meet its...If you deficiency to get a liberal essay, order it on our website: Ordercustompaper.com

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