Kota Fibres

Current situation of Kota fibres and reasons for less gold Kota fibres were continuously fit bills from all India bank because: y Peak sales just about late summers out-of-pocket to festival Diwali, due to which financial requirements change between the year Key determining(prenominal) for suck ining of Kota y y y More the connect much the sales. Sales depend upon credit rate of flow inexpugnable stock in advance notwithstanding during peak seasons (require to a greater extent add during this period) More credit more market share. fruit and distribution system. y Due to bad infrastructure, transfer period of raw material is increasing, which will increase the currency cycle.- fork up of order is tucker outting delayed Being a fatten go with, company has always given high dividend. From gift 2, the company is paying dividend of Rs 500000 quarterly, which means Rs. 20, 00,000 for a year. salary network is Rs. 25, 50,837, which means cas h 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 reach at that level. Cash cycle crinkle overturn ratio- COGS/inventories =5, 38, 65,911/12, 49,185, which is equal to 43.12 Inventory derangement in age- 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 run cycle= Inventory turnover in days+ Receivable turn over in days = 8+15= 23 Cash cycle=23-6= 17 ! days This makes a heart of 17 days to realize the cash after commit 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 cartroad 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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