Kota

Kota Fibre, Ltd. was nominateed in 1962 as a small society that utilizes lovesome material and advancing technology to supply synthetic comp wholenessnt part reference tell to domestic textile mills; this narrate was use to weave vibrant colored saris. With the ever- increment womanly population of five hundred million women, the deal for saris accounted for everyplace 12 billion special K of fabric, which translates to higher carry and stable gross sales growth for comp some(prenominal). Kota Fibres enjoyed growing sales, entirely one of the constraint that limit its cogency to embroider and increase its accomplishment cost was seasonal demand for nylon textiles. The seasonal demand for nylon yarn would peak in mid-summer to early fall. The companys new pecuniary position is dampen to good. In the form 2000,sales had grown at an annual rate of 18% and their projected sales also were projected to reach to INR 90.9 million. though they seem to be a profitabl e organization but at afterwardswards phase of business they were pulled into the situation which was characterized by declining profit, increasing enkindle expenses, high dependence on give to meet seasonal demand, and declining capital flow. The yarn plant operates at peak capacity for two months of the year and a moderate levels there after which they would hire and layoffs when the season slowed down.

Additionally callable to short bullion crunch they were unable to pay short-term debt, maintain well timed(p) delivery system and maintain seasonal line of source with All-India depose and Trust company. T he bank had deference of maintaining 30-day! clean up of the loan, however, Kota was unable to repay the required amount. This causes the bank to deny any kind of seasonal credit and demand reasonable financial plan for the company. Forecast 2001: Based on the forecast, it does not turn out a positive performance for the company, we found the Kota is suffering from cash shortage. The forecast has shown that profit of INR 1335848 in the year 2001which accounts to be nevertheless 1% of the forecasted gross sales is far-off below...If you want to posture a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay