Analysis on Guna Fibres Ltd

                                                                                                                                                                                                                                                                                                                        Case Analysis on Guna Fibres, Ltd.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Feng Guo

                                                                                                                                                                H701958535

Fin209

Part I. Statement of the main problems or decisions

According to the income statement and the financial statement of 2010 and 2011, Guna Fibres, Ltd caught in a deterioration of business fundamentals with an abnormal drop in the net income and a spontaneous increase in the debt burden, which, I assume, can be attributed to some negligence in the firm’s financing budgeting decisions, the dividend policy and the working capital management. Most of my analysis was depended on the actual yearly statement of 2010 to 2011 and the reasonable forecast statement of 2012, with the aim of finding the problem behind the Guna Fibres’ business plan, providing reasonable explanations and trying to give some practical alternatives to retrieve the loss in future operation.