Case
ANTIBIOTICS (PVT) LTD
INDUSTRY :PHARMACEUTICAL
AREA :FINANCE
ORGANIZATION :-
LENGTH :10
LUMS No :02-170-90-1
PUBLICATION YEAR : 1990
ABSTRACT:
Antibiotics (Pvt) Limited was the only plant in Pakistan that produced basic Penicillin. The company was established in 1958, and since then had suffered repeated losses. In 1989, it filed a request for a short-term finance facility with the Pakistan Development Finance Institution (PDFI). R I Khan, a senior investment officer at PDFI had to evaluate APL's estimate of its working capital needs, the probable schedule of repayment on the loan, and the nature and degree of risks that PDFI would be incurring in lending to APL. The case is designed to illustrate the mechanics of financial forecasting, the use of such analytical techniques as breakeven analysis and the sources and uses of funds statement.