Accounting practices at an Indian winery: the case of new vineyard
Publication date: 2 August 2023
Issue publication date: 2 February 2024
Abstract
Research methodology
This case study has been prepared after thoroughly studying the Indian wine industry. Secondary data for the value of wine imported in India has been taken from the website of the Ministry of Commerce and Industry, Government of India. Data for GDP per capita for India has been taken from World Development Indicators, World Bank. Data for revenue generation of top five countries have been sourced from Statista Report on Indian wine market. Fictitious names are used for the Winery (Romaniszyn) and the individual (Harish G.) working there.
Case overview/synopsis
This case revolves around accounting complexities for starting a winery in India. A new vineyard comes with the challenge of the gestation period (five years), during which it would not generate revenue. Harish G. was adept at business development and had experience working with an Italian winery. He was unaware of how difficult accounting decisions would be, including determining the quantum of funds required, ascertaining different financial options to purchase assets and meeting cash requirements. He knew he would not be able to generate any sales for five years at the newly formed winery; the grapevines imported from New Zealand took that long to reach maturity. Furthermore, given that Harish was starting a new brand of wine, he also faced constraints with attracting new customers.
Complexity academic level
This case can be used in teaching undergraduate and postgraduate students in the introductory session of a financial accounting course. It is designed to approach basic accounting concepts, permitting the class to discuss and focus on the principal thought process of starting a real business and accounting for the transactions as and when they occur rather than only on mathematical computations. The objective of this case study is attained by involving the students in recording various accounting transactions and decisions the winery’s management must take over the time from early plantation to bottling of the wine. Every decision assesses the students’ comprehension of accounting concepts by making them analyze and resolve the accounting issues raised.
Keywords
Acknowledgements
The authors acknowledge the anonymous reviewers for their helpful insights on the case study as well as the teaching note. The infrastructural and financial support provided by Indian Institute of Management, Sirmaur, FORE School of Management, New Delhi and Indian Institute of Management Ranchi in completing this case study is greatly acknowledged.
Disclaimer. This case is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.
Citation
Singh, A., Soni, T.K. and Bhusan, S. (2024), "Accounting practices at an Indian winery: the case of new vineyard", , Vol. 20 No. 2, pp. 253-274. https://doi.org/10.1108/TCJ-08-2021-0124
Publisher
:Emerald Publishing Limited
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