Introduction
Sahaj Enterprises is a limited liability company which was incorporated in the republic of Kenya under the companies’ act 486 as per laws of Kenya. It is a private limited-a-family closely held company. Sahaj is a two year old company which is part of a hardware retailing industry. All companies face very many challenges at their initial stage; and so does Sahaj. Cash is the life blood of every company. If this life blood deteriorates, so does the company's ability to fund operations, re-invest and meet capital requirements payments. Understanding a company's cash flow health is essential to making investment decisions. A good way to evaluate a company's cash flow prospects is to look at its Working Capital Management (WCM).
Working …show more content…
Times were hard for him and his, family due to which he could not study well. He was an employee in the Gujarat electricity board. After getting married he decided to move out of the village area and to start a new life in the city of Nadiad. Despite of having a government job, he did not wish to work as an employee his entire life but due to financial constrains and no help from his family, he could not start a business. He educated his sons and sent them abroad so that they could complete his dream. After 20 years of patience and Rameshbhai put forth his idea to his sons to start a business and that is when Sahaj Enterprises took birth. It was incorporated on January 26, 2012. After 15 years of experience in the service sector, two brothers; Amit and Mukesh Patel who decided to startup their own business with a capital of 10 million Kenyan Shillings. Both the brothers had worked in hardware retailing and therefore had enough experience of it. Based on the same experience they came together to form Sahaj Enterprises. Despite of cut throat competition with established players in the market; Mr Amit had contacts of many suppliers in the local as well as international grounds which were of great help to them. Their aim was to seek a clear cut advantage over competitors’ products and to make sure that Sahaj’s products are …show more content…
CONCLUSION
The working capital position of the company is good so far and the company has used its purchasing, financing and investment decisions as the good outcome can be seen from the financial statements.
The distribution channel shows that Sahaj has a healthy relationship with its suppliers.
There is a weak point in collection policy as most of its cash is blocked there. This implies a sales and collection policy do not get along with the receivables management of the firm.
The various ratios calculated are an indicator as to the fact that the profitability of the firm and sales are on a rise but also there is an addition of the inefficiencies in the working capital management.
The firm has not compromised on profitability despite the high liquidity is commendable.
Sahaj Enterprises has to reach to a position where the default costs are as low as negligible and where they can readily factor their accounts receivables for an availing finance to be significant.
SUGGESTIONS AND
Sahaj Enterprises is a limited liability company which was incorporated in the republic of Kenya under the companies’ act 486 as per laws of Kenya. It is a private limited-a-family closely held company. Sahaj is a two year old company which is part of a hardware retailing industry. All companies face very many challenges at their initial stage; and so does Sahaj. Cash is the life blood of every company. If this life blood deteriorates, so does the company's ability to fund operations, re-invest and meet capital requirements payments. Understanding a company's cash flow health is essential to making investment decisions. A good way to evaluate a company's cash flow prospects is to look at its Working Capital Management (WCM).
Working …show more content…
Times were hard for him and his, family due to which he could not study well. He was an employee in the Gujarat electricity board. After getting married he decided to move out of the village area and to start a new life in the city of Nadiad. Despite of having a government job, he did not wish to work as an employee his entire life but due to financial constrains and no help from his family, he could not start a business. He educated his sons and sent them abroad so that they could complete his dream. After 20 years of patience and Rameshbhai put forth his idea to his sons to start a business and that is when Sahaj Enterprises took birth. It was incorporated on January 26, 2012. After 15 years of experience in the service sector, two brothers; Amit and Mukesh Patel who decided to startup their own business with a capital of 10 million Kenyan Shillings. Both the brothers had worked in hardware retailing and therefore had enough experience of it. Based on the same experience they came together to form Sahaj Enterprises. Despite of cut throat competition with established players in the market; Mr Amit had contacts of many suppliers in the local as well as international grounds which were of great help to them. Their aim was to seek a clear cut advantage over competitors’ products and to make sure that Sahaj’s products are …show more content…
CONCLUSION
The working capital position of the company is good so far and the company has used its purchasing, financing and investment decisions as the good outcome can be seen from the financial statements.
The distribution channel shows that Sahaj has a healthy relationship with its suppliers.
There is a weak point in collection policy as most of its cash is blocked there. This implies a sales and collection policy do not get along with the receivables management of the firm.
The various ratios calculated are an indicator as to the fact that the profitability of the firm and sales are on a rise but also there is an addition of the inefficiencies in the working capital management.
The firm has not compromised on profitability despite the high liquidity is commendable.
Sahaj Enterprises has to reach to a position where the default costs are as low as negligible and where they can readily factor their accounts receivables for an availing finance to be significant.
SUGGESTIONS AND