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Case Study 1 Anadam MFG Instructions and Notes

The owner of Anandam Manufacturing Company approached a bank for additional funding to support the company's growing garment business. Over the last three years, the company had experienced a fourfold increase in revenue and significant growth in profits. To evaluate the loan application, the bank manager instructed preparing trend and common size analyses of the company's financial statements, interpreting key financial ratios, and analyzing its cash flows. This would help determine if Anandam Manufacturing Company was a suitable candidate for receiving the loan.

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Saifuddin Mohammed Tarek
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473 views1 page

Case Study 1 Anadam MFG Instructions and Notes

The owner of Anandam Manufacturing Company approached a bank for additional funding to support the company's growing garment business. Over the last three years, the company had experienced a fourfold increase in revenue and significant growth in profits. To evaluate the loan application, the bank manager instructed preparing trend and common size analyses of the company's financial statements, interpreting key financial ratios, and analyzing its cash flows. This would help determine if Anandam Manufacturing Company was a suitable candidate for receiving the loan.

Uploaded by

Saifuddin Mohammed Tarek
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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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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