Kota Fibres

Current situation of Kota fibres and reasons for less gold Kota fibres were continuously describe coin from all India bank because: y Peak gross sales just about late summers cod to festival Diwali, due to which financial requirements change between the year Key deciding(prenominal) for suck ining of Kota y y y More the specify much the sales. Sales depend upon credit power point sacrosanct stock in advance notwithstanding during peak seasons (require more add during this period) More credit more market share. issue and distribution system. y Due to bad infrastructure, transfer period of raw material is increasing, which will increase the currency cycle.- return of order is suitting delayed Being a fatty tissue go with, company has always given high dividend. From shew 2, the company is paying dividend of Rs 500000 quarterly, which means Rs. 20, 00,000 for a year. meshwork net is Rs. 25, 50,837, which means cash left for the year 200 1 Rs. 5, 58,337 Cash to be retained at the start of the year Rs. 7, 50,000, so a loan of approx 2, 00,000 to reach at that level. Cash cycle air overturn ratio- COGS/inventories =5, 38, 65,911/12, 49,185, which is equal to 43.12 Inventory derangement in years- 365/43.12= 8.

4 or 8 days due turnover ratio- Net sales/ account receivables =6, 44, 87,385/26, 72,729= 24.12 due turnover in days= 365/24.12= 15 days account payable turnover ratio- purchases/ accounts payable 4, 24, 19,371/7, 59,535= 55.85 Payable turnover in days= 365/55.85= 6 days operational cycle= Inventory turnover in days+ Receivable turnover in days = 8+15= 23 Cash cycle=23-6= 17 days Th! is makes a essence of 17 days to realize the cash after expend in production. Inventory of 60 days, which blocks cash for the same period. So by these information we can give voice that Kota Fibres is hurry 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, order it on our website: OrderCustomPaper.com

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