Case

Educator Copy

NISHAT CHUNIAN LIMITED - FINANCIAL PROJECTIONS

Naim Sipra, Shazia Farooq, Naima Khar

INDUSTRY :-

AREA :FINANCE

ORGANIZATION :-

LENGTH :6

LUMS No :02-607-98-1

PUBLICATION YEAR : 1998

DESCRIPTION

ABSTRACT:

Nishat Chunian Limited (NCL) was one of the three spinning units of Nishat Group. Being a textile company, NCL had to procure cotton, which was available only during the six month period of September-March. Due to level production, this resulted in peak inventory during these six months. In view of such a raw material purchase cycle, the Finance Manager had to ensure that adequate working capital financing was available during this period.