Sunshine Fastech Pvt. Ltd.: working capital financing decision
Publication date: 30 April 2020
Abstract
Learning outcomes
The learning outcomes of this paper is to understand the working capital finances offered by bank; comprehend application by the company, loan proposal and bank procedure for additional finance; compute, analyze and interpret financial statements of company and its peers; and assess various factors to be considered while taking loan sanctioning decisions.
Case overview/synopsis
Sunshine had expanded its business by starting in-house manufacturing of a few stages of production of fasteners. Sunshine was in urgent need of additional finance for working capital and had applied to Rajya Bank of India Ltd. (RBIL), requesting to enhance working capital finance limits and other changes. Ruchit Mehta, Relationship Manager of S.G. Highway Branch of RBIL have to assess this request and include his evaluations in the proposal, which he had to present to Assistant General Manager of RBIL.
Complexity academic level
MBA or related program in finance courses such as financial management, corporate finance, financial statement analysis, bank management/finance and training program on “credit management” for bank employees.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 1: Accounting and Finance
Keywords
Acknowledgements
The author wish to thank the editor and anonymous reviewers for their constructive comments. The author thank Mr Kirit Motka, Managing Director, Sunshine Fastech Pvt. Ltd. for allowing to develop the case and Mr Nikhil Jain, Chief Finance Officer, Sunshine Fastech Pvt. Ltd. for providing the necessary information of the company. The author would also like to thank Mr Ruchit Mehta for providing his valuable insights on the banks’ general modus operandi of loans.
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Mehta, B.R. (2020), "Sunshine Fastech Pvt. Ltd.: working capital financing decision", , Vol. 10 No. 2. https://doi.org/10.1108/EEMCS-10-2019-0273
Publisher
:Emerald Publishing Limited
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