Kota Fiber Case

1.Kota is a case of a dysfunctional financial program, which is tread forward of sync with the firms business plan: flying sales growth; seasonal sales; mandate on the spot tax indemnifyments; limited fix supporting for extension lines. 2.Therefore, we study and analyze the structure of the financial plan to grade its pathologies and inadequacies. We use ratios, cash budget and cash endure compendium to do that (i.e., the tools of financial analysis and planning). (Read Note) 3.Pay attention to how you waul the main enigma. In this case all is related to the bevel requirement to clean up the credit line. Inability to do so somehow will unhinge Kotas operations. because we need to review the financial plan (pro forma statements) to verify whether it cleans up the bank loan in 2001 and if not to devise a plan to correct that. Hence, the Main Problem/Decision is: Does the blow financial plan clean up the bank debt? If not, what should we do to that effec t? 4.Issues for analysis: These argon the steps (blueprint of action) that will score you answers to the Main Problem/Decision. You arrive at listed enough rationalises solitary(prenominal) if you are convinced that analysis of (and answers to) issues will ENABLE you to pass a Final Decision that gives resolution to the Main Problem. 5.

afterward you have stated the Issues for Analysis, then you analyze each issue in depth. 6.Once all the steps/issues have been analyzed, you determine what they think of for your decision or solution to the problem. 7.No matter what your Main Problem is, your case analysis will st ill be evaluated with heed to how well you ! have done the analysis that is book to that Problem. 8.Distinguish amidst Profits and Cash Flows or positiveness and Liquidity. A conjunction may be profitable and except fail for deprivation of cash. Thats Kotas problem. Profits (as expound of revenues) are set in accounts receivable or inventory, they cannot be used to pay bills. 9.Constructing financial ratios or doing financial statement...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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