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1.Adequate captive power generating capacity 2.Smooth procurement of raw material and stores at the current maket price.

3.Have the capability of charging premium on price

1.Liberal credit policy which ends in high bad debt cost 2. Situated in less developed area 3.Haven' full control over it's working capital management.

SWOT
1.Its tax liability is expected to be nill for quite sometime as it enjoys tax benefits 2.Prices of raw material is lower in international market than India. 3.Opportunity to grab market share 1.High administrative expenses.

2.Power cuts
3.High input costs 4.Turmoil market condition

For the evaluation of the effectiveness of financial plan we have considered the strength, weakness, opportunity and threats of Reliable Texamil Ltd. As financial plan is made by considering the past performance of the business activity, try to forecast the estimated figures in the income statement and balance sheet, there is an uncertainty of not matching between estimated and actual figure. As in some items we have found huge amount of decreasing and increasing trend which is quite ambiguous and very tough to achieve. The modifications that I suggest in the financial plan are: Increasing trend of trade creditor. Matching between sales and accounts receivable. Show decreasing trend in COGS Administer proper cost forecasting of administrative and selling cost. Not show rosy net sales Focusing more on working capital management Cash, inventory, receivable should be given more importance. Competition should be kept in mind Approach to differentiating strategy. Concentration on transportation smoothness. Overall economic condition should be considered. Degree of concentration. Lucrative feature of the company over other firm.

The reasons why I prefer this modifications in the financial plan are given below as this are very important to keep in mind while making a financial plan. As trade creditor is one of the elements of working capital management it would increase with the volume of sales increase, so the decreasing trend looks good in the financial plan but it is very hard to achieve. Net sales are increased by double amount while the Accounts Receivables are in normal forecasting pattern so there is a discrepancies lie between sales and accounts receivable. So accounts receivable should increase in same proportion to sales. COGS is forecasted to be huge for large scale production but one issue that should be considered that the COGS will be less than that if the company go for importing raw material from foreign country which is lower than Indias cost . As there is a possibility of high administrative and selling cost associated with production run and promotion appropriate cost forecasting is not present in the financial plan. In the forecasting year the net sales are shown as double increasing amount which will not be possible as there is huge competition and each market player try to grab the market share. Working capital policy will be such that profitability and liquidity is achieved properly. As cash, inventory and receivable hold significant amount more concentration should be given on that current assets. As Reliable Texamil Ltd. Located in less developed area proper transportation and communication should be ensured such that there remain no complain over delivery which affect sales and collection very prominently. As Reliable Texamil Ltd. Have the ability to charge a premium over price differentiating strategy should be taken by the company and this should be a factor while making financial plan.

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