Details

Case

Educator Copy

Nishat Chunian Limited - Financial Problem

Shazia Farooq, Naima Khar, Naim Sipra


INDUSTRY : Textile

AREA : Finance

ORGANIZATION : Nishat Chunian Limited

LENGTH : 6

LUMS No : 02-607-98-1

PUBLICATION YEAR : 1998

DESCRIPTION

KEYWORDS:

Nishat Chunian,Limited,Financial Projections,Finance,Textile


DESCRIPTION:

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.


LEARNING OBJECTIVES:

The case is written for the course Financial Analysis. It establishes the importance of financial projections in a typical business entity. Furthermore, the aim is to enable the students to prepare projected income statement and balance sheerm based on the given factual information as well as certain reasonable assumptions.


SUBJECTS COVERED:

Finance