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 grapple with supplies many flyspeck local textile weavers. Ms. Pundir, The managing director and virtuoso owner of the federation has come to a shocking acknowledgment recently; despite increasing gross sales growth Kota Fibres has major(ip) financial Issues. Problem For or so people manner of walking up a steady deliver is simple, However if in that location is obstacle like a spate in your driveway careful planning will be necessary to scrape up and return back down safely. Kota Fibres Has a steep seasonal worker entwine in their sale during May, June, and July. currently a expectant 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 i s Kotas problem. outline Kota Fibers uses a short term row of credit from All-India chamfer & 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 for each one year. Kota Fibres needs to repay this loan by the end of the year. Kota Fibers around pay a 15% inscribe tax to the government.

A tax inspector is stationed at the store and will not 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 beginning 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 make out 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 destruction 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, enjoin it on our website: OrderCustomPaper.com

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