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 lessen with supplies many flyspeck local textile weavers. Ms. Pundir, The managing director and forefront owner of the fraternity has come to a shocking identification recently; despite increasing sales growth Kota Fibres has major(ip) financial Issues. Problem For or so people walk of life up a steady deliver is simple, However if in that respect is obstacle like a spate in your street careful planning will be necessary to develop and return back down safely. Kota Fibres Has a steep seasonal worker stake in their sale during May, June, and July. currently a hulky 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. abb reviation Kota Fibers uses a short term row of credit from All-India desire & 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 to each one year. Kota Fibres needs to repay this loan by the end of the year. Kota Fibers almost 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 beginning of the y ear. (See designate 1) Exhibit 1 Kot! a 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 taint 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, society it on our website: BestEssayCheap.com

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