Kota Fibres

Current situation of Kota fibres and reasons for less gold Kota fibres were continuously support coin from all India bank because: y Peak sales just about late summers due to festival Diwali, due to which financial requirements change between the year Key determinative for suck ining of Kota y y y More the connect much the sales. Sales depend upon credit expiration strengthened stock in advance notwithstanding during peak seasons (require much add during this period) More credit more market share. take and distribution system. y Due to bad infrastructure, transfer period of raw material is increasing, which will increase the currency cycle.- lend of order is tugting delayed Being a prolific go with, company has always given high dividend. From disclose 2, the company is paying dividend of Rs 500000 quarterly, which means Rs. 20, 00,000 for a year. give the sack make is Rs. 25, 50,837, which means cash 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 origination overturn ratio- COGS/inventories =5, 38, 65,911/12, 49,185, which is equal to 43.12 Inventory derangement in long time- 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 collectable 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 turnover in days = 8+ 15= 23 Cash cycle=23-6= 17 days This makes a! total of 17 days to realize the cash after investment 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 ladder 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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