Please see tables 3 and 4 to rEspOOnse to this finance QUEEstiOOn:

• Assume you are a consultant brought in to assess the company:In your opinion, what operational and financial charges need to be made to improve SealTek's operational and financial performance? Why?

Response structure: take these under consideration when you wrIItEE your response:

• You have only 2 paAgeEs for analysis and recommendations of your response. That means you need to integrate words with numbers (drawn from the tables, and others you might create), graphics, tables- whatever you need to communicate your recommendations and why as coherently and effectively as possible.
• As a consultant you need to be very clear to Giri Saha why whatever changes are needed
• The numbers generated in the worksheets (that follow your writeup) should be used to support and define your recommendations.
• Do not use bullet points; you need to represent complEEte and coherent ideas and sentences
• Do not cut and past the tables attached ( i can read those for myself)
• Do not say things like "see Table 3..." Site specific numbers to make your point
• Structure your writeups, looks for linkages between concepts, and edit your writing.
• Writing and communication quality matters.

TABLE 3 SealTek Fittings (India) (millions of Indian rupee, INR) Inventory Analysis 2008 Product Line Sales Cost of Sales Inventory Gross Margin Days Inventory Pneumatic Systems 707.4 470.2 76.3 33.5% 59.2 Hydraulic Systems 844.7 542.2 85.2 35.8% 57.4 Components 223.4 179.8 21.6 19.5% 43.8 Instrumentation 86.2 62.9 9.2 27.0% 53.4 Total 1,861.7 1,255.1 192.3 32.6% 55.9 2009 Product Line Sales Cost of Sales Inventory Gross Margin Days Inventory Pneumatic Systems 570.3 450.2 74.3 21.1% 60.2 Hydraulic Systems 725.9 498.1 81.9 31.4% 60.0 Components 183.6 149.5 17.9 18.6% 43.7 Instrumentation 80.5 62.3 9.4 22.6% 55.1 Total 1,560.3 1,160.1 183.5 25.6% 57.7 2010 Product Line Sales Cost of Sales Inventory Gross Margin Days Inventory Pneumatic Systems 670.8 540.6 96.3 19.4% 65.0 Hydraulic Systems 950.1 657.3 114.2 30.8% 63.4 Components 219.2 179.5 24.2 18.1% 49.2 Instrumentation 100.2 79.3 13.1 20.9% 50.3 Total 1,940.3 1,456.7 247.8 24.9% 62.1 Financial managers of real companies must understand that the sales and profitability of different products and services within the company's portfolio will differ. Whether the firm may or can choose to reduce or rationalize their portfolio depends on a number of factors including the demands of customers and interrelationships between products and services offered. Regardless, in the end, the firm must still manage its own inventory in order to manage its net working capital.TABLE 4 SealTek Fittings (India) (millions of Indain rupee, INR) Net Working Capital (NWC) Management 2008 2009 2010 Sales (INR) 1,861.7 1,560.3 1,940.3 Sales growth (%) -16.2% 24.35% Net Working Capital (NWC in INR) 276.9 279.9 388.7 NWC/Sales (percent) 14.9% 17.9% 20.0% Net Working Capital Components Days sales outstanding 39.4 46.5 55.1 (A/R / (Sales/365) ) Days of inventory 55.9 57.7 62.1 (Inventory / (Cost of sales/365) ) Days of prepaid expenses 6.7 9.1 6.1 (Prepaid / (Sales/365) ) Days to pay (31.1) (33.1) (35.2) ( - A/P / (Cost of Sales/365) ) Days accrued expenses (8.6) (8.4) (8.3) ( - Accrued / (Sales/365) ) Days of NWC 62.3 71.8 79.8 (A/R + Inv + Prepaid - A/P - Accrued) Financing of Net Working Capital % of NWC Financed by Long-Term Debt 79% 60% 42% (LT Debt + Equity - Net Fixed Assets) / NWC % of NWC Financed by Short-Term Debt 21% 40% 58% (ST Debt - Cash) / NWC The management of net working capital (NWC) is based on days of sales (or days of payables). The management objective is to minimize NWC while maintaining adequate levels for the maintenance and growth of the business. The financing of NWC is a separate critical management challenge, with more conservative management financing NWC with a greater proportion of long-term debt