Case Study 1 Anadam MFG Instructions and Notes

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Group Case study 1: Anandam Manufacturing Company

Case Background:
In July 2015, the owner of the Anandam Company approached a bank for additional funding to meet the
growing requirements of his garment manufacturing firm. The owner was confident about the financial
prospects of his firm, with its fourfold increase in revenue and phenomenal increase in profit after taxes
over the last three years. In a lengthy discussion with the bank manager, the owner shared the development
of his company and the dynamics and growth opportunities of the garment and textile market in India. He
believed his firm was performing strongly in a highly competitive industry environment. The bank manager
instructed the loan officer to process the loan application as soon as possible and make a decision.
Determining the health of the company would involve preparing a trend analysis and a common size
statement, interpreting selected ratios, and preparing a basic statement of cash flows. Was
the Anandam Company a good candidate for receiving a loan?

Issues Bank loan; Accounting; Entrepreneurship;


Requirements:
Ratio analysis; Cash flow analysis; Financial analysis; Decision from a Banker’s perspective

Structure: Not more than 5 pages excluding calculations. Ariel or Times Roman font size 12. Double
space with standard margin.

Cover page must contain case title, members of the group and must be properly stapled (No loose sheet
will be accepted).

Theoretical or any other citations must be in line with APA reference style.

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