Analysis Of Liquidity Problems in Mahr Traders

Abstract

This thesis is about the problem faced by Mahr Traders, In this thesis I have tried to cover all aspects that can lead Mahr Traders into a problem and applied my best effort to figure out what measures Mahr Traders can take in future to come out of the current shortage of cash. Mahr Traders incorporated on 28th of April 1986 as a Sole Proprietorship company in Pakistan, with the registered office in Karachi, Sindh. Mahr Trader is a manufacturing company and it manufactures corrugated cartons for packaging various products like garments, handicrafts, bottles, food items, electronics etc. Mahr Trders purchases the raw material according to the demand of their clients and as the prices of raw material paper and chemicals involved in the manufacturing of packages shoot up their company faces various problems for example the clients do not want to pay higher prices and the creditors demand that payment be made with in a month’s time therefore it gets difficult for the company to cover its fixed and variable costs at times.