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 watch over with supplies many flyspeck local textile weavers. Ms. Pundir, The managing director and principal owner of the conjunction has come to a shocking credit recently; despite increasing sales growth Kota Fibres has major financial Issues. Problem For or so people base on balls up a steady deliver is simple, However if there is obstacle like a spate in your pathway careful planning will be necessary to near and return back down safely. Kota Fibres Has a steep seasonal capitulum in their sale during May, June, and July. currently a colossal outflow of coin far in advance of this spike is necessary to prepare for the increase in sales. Kota dose not receive payment from these seasonal sales for an average of 47 days. The time between seasonal cash outflows and Inflows is Kotas problem. compendium Kota Fiber s uses a short term row of credit from All-India entrust & 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 from each one year. Kota Fibres needs to repay this loan by the end of the year. Kota Fibers or so 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 designat e 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 mooring 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 counterweight 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, ordering it on our website: OrderCustomPaper.com

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