In July 2015, the owner of the Anandam Company sought after a bank for additional funding in order to meet the growing requirements of his garment-manufacturing firm. The owner was assured about the financial prospects of his company, with exceptional increase in profit and its fourfold increase in revenue after taxes over the last three years. In a long discussion with the bank manager, the owner shared the development of his business and the dynamics and growth chances of the textile and garment marketplace in India.
He considered his business was performing strongly in a very competitive industry environment. The bank manager instructed the loan officer to process the loan application whenever possible and make a decision. Discovering the health of the business, would call for preparing a trend analysis and a common size statement, interpreting selected ratios, and preparing a basic statement of cash flows. Was the Anandam Company an excellent candidate for receiving financing?
PUBLICATION DATE: April 06, 2016 PRODUCT #: W16204-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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