una Fibres

$1.$ What is the current situation? Is Guna Fibres, Ltd$.,$ a financially healthy business? Why did the

company run out of cash?

$2.$ What are the consequences for the company? As part of your assessment, consider the return

on assets of the business.

$3.$ Examine Vikram Malik$$s monthly financial forecast. What does Malik$$s financial forecast

show? How was the forecast constructed?

$4.$ Why do Guna$$s financial requirements vary across the year?

$5.$ What are the key determinants of Guna$$s borrowing needs?

$6.$ On the basis of Malik$$s forecast, how much debt will Guna need to arrange for the coming

year?

$7.$ Will Guna be able to zero out the line of credit this year? If not, what is the cause of Guna$$s

ongoing need for debt?

$8.$ Using the monthly forecast model, do you expect that the two proposals would relieve or

worsen Guna$$s ability to clean up its bank loan?

$9.$ What are Kumar$$s alternatives for action? What impact might the two proposals have on the

financial needs of the firm?

$10.$ What action should Kumar take? What other steps can Malik take to reduce Guna$$s cash

problems? What are your recommendations for Surabhi Kumar?