Kota Fibres Ltd.

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

Gross profit of 60% has not increased much over past three years it will affect

This is evidence the company is having problems making profit. Haefren needs to address is the delinquency of their customers’ accounts, from 93 to 95, days sales outstanding have increased to 77 days, which is a lot higher than the 30-day monthly installment terms. The company is not stringent in collection efforts but this can be because of the economic condition in Germany. The company does not manage its assets very well. Its decrease in fix asset turnover from 6.98 in 1993 to 5.39 in 1995 can be because of their decrease in sales, but the low total asset turnover which is also decreasing from 2.1 to 1.5 prove that their assets are not being used very efficiently. Since sales are decreasing and competition increases their inventory days has also increased from 103 to 129 which again could cause low price. The company is already experiencing a loss of revenue due to the fact they lowered price because of economic condition.

Company Credit Assessment: For the Cartwright Lumber could get 2% discount payment within 10 days from suppliers, but it had taken few purchase discount because of the shortage of funds, while there was no bad record of lagged payment, so the company still owned good credit assessment.

Referring to Vice President of Finance, he want to pursue the current approach because they are in profitable based on contribution margin by 35 percent. The company just needs to monitor their margin in control their cost well.

This means that under the company’s current policy, revenue is recognized too early, before delivery, while actual payment is not received until 30 days after customer acceptance or until the 90-day warranty period has ended. Furthermore, the 90 day warranty provision creates an uncertainty in the collectibility of sales proceeds.

to have good strategic development. Since these purchases are the main source of their business products, risk will need to be minimal.

The company’s day-to-day operations did not change significantly over the last few years. Average collection period, inventory turnover, accounts payable, accounts receivable as well as cash conversion cycle all went up and down over the last four years but mainly stayed in the same range. So, there is no any significant change in operations. Mr. Cartwright has a very sound control over operations of the firm. Therefore, I believe, the company needs few more years to recover from the debts

A typical Gross profit margin depending on the industry may be 25 to 30%. Nucor’s Gross profit margin ratio indicates that industry is intense and cost of goods is one of the main of factor in profitability. After examining the five year

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.

able to conduct business. We may be facing another three weeks to three months of delay

The accounts-payable policy Maggie Brown has adopted will not be sustainable in the years to come as they have a massive liquidity problem at hand. The suppliers have credit terms allowing them 30 days to payback for purchased goods, and Maggie should be taking advantage of that.

Be Our Guest’s balance sheet shows good signs of liquidity. Current Ratios for the past four years have remained above 1 proving that the company can handle its current liabilities. The current ratios are not extremely high (19941.27, 1995- 2.17, 1996- 1.15 and 1997- 1.16), but they can cover the current liabilities. It is important to note that the company is operating on a thin line because the current assets are barely covering the current liabilities. This is particularly unpleasant because we are dealing with a company operating in a seasonal business. It is a concern that the current ratio slightly eroded after 1995, and this is primarily due to Be Our Guest converting the bank line into long term debt in

Although the company seems to be profitable, it has faced shortage of cash. It happened due to increase in Accounts Receivable as well as Inventories. On the other hand, Accounts Payable does not increase that rapidly and difficulties regarding cash collection become evident. Furthermore, the cash collection cycle becomes larger (59 days in year 2003, while more than 70 in year 2006).

Siyaram is always the first to introduce the latest fashion trends and concepts – specializing in futuristic weaves, designs and colours. In the year 1995 Siyaram’s had tied up with J.HAMPSTEAD, England for marketing of a very fine premium wool suitings in India . These suitings are woven from the exclusive and rich natural fibres – merino wool, cashmere, kidmohairwool and wool silk. Looking to the increasing demand for the wool blended suitings, Siyaram’s has started m anu facturing of finest wool blended suitings under J.HAMPSTEAD brand using fine micron merino wool imported from Australia and super fine polyester with technical assistance from J.Hampstead. Siyaram Silk Mills Ltd. A leading textile company in India. Siyaram’s has undertaken an extensive advertising multimedia campaign to strengthen its marketing network and to increase its awareness among the consumers. n the textile industry, apart from Raymond’s, Siyaram’s is the only other brand to have such a consistent theme. “Coming home to Siyaram’s” is now part of advertising folklore and according to the advertising expert, it is a remarkable achievement given the fickle nature of consumer mind space. Siyaram’s is today a household brand with over 18 years of high volume advertising using the Electronic media. Siyaram’s always use the most happening models and brand ambassadors and make ad films in the choicest of locations, with the best available talent to create lasting