7/21/2019 Anita Mills Case

Financial
Management

Clarkson Lumber
Submitted By-: Megh
Case
Thapliyal(2!"P#P!$
Moh
Submitted To-: Mrs Nalini Prava 'an)ani(2!"P#P!$
Tripathi   Neh
  Professor Mehta(2!"P#P!$+&
  IIM Shillong   Niha
Srivastava(2!"P#P!
  Ni,h
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  Nila
7/21/2019 Anita Mills Case

ase Ba1,ground
The
Anita Mills The physical the
Limited, a facilities presently ending
medium-size mill at the command and
manufacturing of the company were
coarse cloth was were considered much

engaged
assessing theincash adequate to
sustain twice the the
quarte
requirements for 2011 leel of year
the operating year production! cash
2012 surplu
http://slidepdf.com/reader/full/anita-mills-case throug
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7/21/2019 Anita Mills Case

alysis 3 0redit Poli1y

Key takings from the slide "ales are made on 30 days cr
"ales are made on &0 days credit, and
the company's e(perience in seasonal • The company purchased c
chemicals and general ma
demand leads
aaila#ility for )tomonths
de%cit and
in cash
heay on )0 days credit
surplus for ne(t ) months • The *ompany e(perie
Surplus/(Defcit) in Cash Flows
+uctuations as part of
result of which the %rs
sell half of what t
quarters do
• enerally, the colle
anuary and from ul
are most astounding
after e.ect of 1! &0-da
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7/21/2019 Anita Mills Case

nalysis
• $ue to an increase in pa
relatiely less cash collect
Surplus/(Defcit) in Cash Flows
months of the year, the de%
itself rises to its ma(imum
entire year for uly!
• The net cash +ow for
$ecem#er is negatie as a
operational ta( payment and
lie unclaimed diidends an
the year are to #e paid in $
again adds pressure to the ca
• rom the graph its is
http://slidepdf.com/reader/full/anita-mills-case company needs some e(tra 4/6
7/21/2019 Anita Mills Case

0on1lusion

*learly there is a seasonality factor in the #usi

Mills ltd and such can #e reduced #y dier
company can loo up to cotton clothes manufact
achiee the following-

1! 3tilise the capacity of the plant in %rst )

year, when demand is low #y producing for
purpose!
  2! Meet its cash requirements #y freeing its c
inentory #y way of using it in manufacturi
http://slidepdf.com/reader/full/anita-mills-case &! $iersify in a new maret and e(plore new
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7/21/2019 Anita Mills Case

Than 4ou

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