A Secret Weapon For kota fibres case study analysis

As far as the secondary requirements, this does not seem to be a solution for the long run for Guna Fibres. Whilst it slows a few of the bleeding in the coming calendar year, The very fact continues to be which the firm are unable to fulfill their economic obligations and will likely obtain on their own in a deeper hole following year these are definitely the one improvements applied.

Because the appellant has discharged the Service Tax liability on both equally these products and services, the question of leviablity of Service tax full volume below one taxable assistance of Cargo dealing with will not be stainable in law.

A person benefit of the proposed variations to income administration would be that it may be completed without having key technique overhaul and will give a direct profit on the agency. Conversely, ceasing dividends and spending the company’s hard cash equilibrium would point out to shareholders and workforce that the company in lousy money well being and will develop a morale issue.

This could Strengthen the organization`s liquidity placement provided that inventory is One of the significantly less liquid belongings. Similarly, it is obvious that the company is inefficient in utilizing its belongings to make income. This is the main reason why You will find a scarcity of cash in hand. To address this issue, Kota Fibres should really enhance its overall assets.

Dividend disbursement should be based on the amount of funds out there at the end of quarter in lieu of an absolute degree of one hundred,000. The amountof dividendshould be altered accordingly………………….

Timing of intervention has also not been systematically tested—could power training early inside the ailment approach sluggish or lessen practical impairment during the afterwards stages?

Cenvat Credit history: Service tax paid out by commission agents: appellant is qualified for the good thing about credit rating of Company Tax paid out on the agent who had promoted revenue of their products and solutions.

According to the information contained in Malik’s forecast it click for info is definite which the bank will not be willing to prolong anymore credit rating to Guna Fibres as presently there's no crystal clear plan to the company to pay its short-term debit obligations.

Cargo Handling Assistance: To phone an action to become cargo dealing with assistance there ought to be an activity of movement of cargo from just one location to a different area without having, any internal movement inside the mining region.

The end result for Guna Fibres is usually that Even with their revenue growth the company expert reducing EBIT and decreasing new revenue. At time of this analysis Kumar and Malik have also been offered with numerous proposals which could potentially ameliorate the organization’s recent economical woes by addressing guidelines which can be presently producing economical pressure on the company.

nine. One more level lifted pertains to cases the place the CFS offers a total bundle level, which includes transportation and handling in respect of imported laden containers from Port to CFS.

Right after providing yarns to millers, the latter sells them to cloth retailers, who've direct shopper relations Together with the neighboring community. The merchants’ generally present credit for their customers, accumulates stock before the peak year but maintains lower stock at other times.

Transportation of products by highway: Assistance tax compensated in hard cash: Interest can't be claimed as there was no ought to pay out in hard cash Cenvat credit score could have been used for payment of provider tax.

Guna Fibres is actually a textile producing corporation situated in India that is matter to seasonal swings in demand in addition to an increasingly competitive environment. Guna Fibres has Traditionally used a line of credit history from All-India Financial institution & Have faith in to finance the purchases essential to fulfill the spike in need that happens Just about every summer season. Traditionally, Guna Fibres would zero out the harmony on this line of credit history in October, for each the banks plan.

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