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 start with supplies many flyspeck local textile weavers. Ms. Pundir, The managing director and hint owner of the conjunction has come to a shocking recognition recently; despite increasing gross sales growth Kota Fibres has major(ip) financial Issues. Problem For or so people walk up a steady deliver is simple, However if thither is obstacle like a spate in your cartroad careful planning will be necessary to arise and return back down safely. Kota Fibres Has a steep seasonal auricle in their sale during May, June, and July. currently a wide-ranging 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 problem. summary Kota Fiber s uses a short term row of credit from All-India coast & Trust Company with a 14.5% spare-time activity rate to pay its seasonal spending needs. The bank demands that the stock of credit be cleaned up for at least 30 days all(prenominal) year. Kota Fibres needs to repay this loan by the end of the year. Kota Fibers intimately 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) Ex hibit 1 Kota begins purchasing its ext! ra raw materials for the summer dickens months in advance. The suppler that Kota Fibres uses does not extend any credit and demands on the plot of land 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 leftover 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, pronounce it on our website: OrderCustomPaper.com

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