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Enterprise have observed stock piling up inside the manufacturing unit which will not dispatch, or The client delayed the delivery triggering insufficient space while in the manufacturing unit.

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Agarwal have by now unfavorable ratio of return on mounted asset, set asset turnover and full asset turnover compared While using the field’saverage of important ratios, hence, it can be done that Agarwal could possibly have a appropriate motive or perhaps the equipment are certainly not productive.

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Agarwal has no specific understanding of how to handle the financial dynamics on the organization that's also one among The explanations for funding problems. Unavailability of money qualified prospects Anandam towards acquiring reduced Functioning cash with the frequent invest in of raw product; The purchasers have far more stress on credit history rather then cash as well as the unfulfilled requirement of new machinery and insufficient Room from the factory.