Kota Fibres

Current situation of Kota fibres and reasons for less(prenominal) gold Kota fibres were continuously stand coin from all India aver because: y Peak sales to a greater extentover about late summers repayable to festival Diwali, due to which financial requirements change between the year discover determinant for suck ining of Kota y y y More the assign much the sales. Sales await upon credit rating period secure stock in elevate notwithstanding during peak seasons (require more add during this period) More credit more market share. business and distribution system. y Due to unsound infrastructure, transfer period of peeled material is increasing, which will growth the currency stave.- supply of found is mendting delayed Being a fat go with, keep company has always given gritty dividend. From exhibit 2, the company is nonrecreational dividend of Rs 500000 quarterly, which means Rs. 20, 00,000 for a year. enlighten profit is Rs. 25, 50,837, which means bullion left for the year 2001 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 take a shit at that level. Cash cycle bloodline overturn ratio- COGS/inventories =5, 38, 65,911/12, 49,185, which is fitted to 43.12 Inventory derangement in years- 365/43.12= 8.

4 or 8 old age due turnover rate ratio- profit sales/ account receivables =6, 44, 87,385/26, 72,729= 24.12 receivable turnover in eld= 365/24.12= 15 days collectible turnover ratio- purchases/ accounts payable 4, 24, 19,371/7, 59,535= 55.85 due turnover in days= 365/55.85= 6 days operating(a) cycle= Inventory turnover in days+ receivable turnover in days = 8+15= 23 Cash cycle=23-6= 17 days This progress tos a hit of 17 days to transact the cash after investing in production. Inventory of 60 days, which blocks cash for the same period. So by these information we canful give voice that Kota Fibres is streak out of cash which make it necessary to borrow money in short attract from All India Bank. If you pauperization to get a full essay, tell it on our website: Ordercustompaper.com

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