Financial Management Case Study: Saraf Food Ltd.

Decent Essays
Why this case study: First of all, it is very hard to obtain any data on venture capital firms. Their limited partner agreement does not oblige them to the extensive financial reporting, like publicly traded companies or mutual funds. (SEC, 2012) · India is an emerging market.
· Growing venture capital industry.
· One of the best markets for investments.
· Upcoming entrepreneurs with high growth prospects.
· The case study explains the stages of finance.

CASE STUDY INTRODUCTION
· Company of study: Saraf Food Ltd.( An Indian company founded in 1992)
· Business: Production of frozen dried fruits and vegetables.
· Business profile in a nutshell: Saraf Food Ltd. Is an India based company. It produces
…show more content…
The delay also resulted in a delay in the receipt of the subsidy, a to recover the subsidy amount, Saraf requested GVFT to provide a loan for 3 million against subsidy. Saraf foods suffered a significant production losses due to problems detected in the equipment like, operating defect in the defrosting system and leakage in the freezer door. These production difficulties let to 8 months delay for the first production process which led to a loss of Rs. 3645,000 for FY 1993/1994. The company needed additional finance. GVFL started to sell the venture to canbank venture capital fund(CVCF). In April 1994 CVCF agreed to finance the company in form of equity by buying stocks at a premium. CVCF provided Saraf foods with Rs. 2,592,000 in …show more content…
1.2 million. Due to the new purchases and increasing production the liquidity position of the company was tight and hence asked GVFL to reschedule income notes due and GVFL agreed for the same. By mid 1995 the company booked it 1 ton capacity. Dryers were installed giving rise to economies of scale. In order to expand the business, additional finance was required and hence Saraf Foods approached GIIC once again. Here is when GIIC came into the picture again and agreed to provide Rs. 9,400,000 in the form of term loan. GIIC initially rejected to finance Saraf foods in the initial phase, however, agreed to finance the company in its expansion phase as the company was now fully operational. In FY 1995/1996 the sales of the company increased, and reported a profit of Rs.145,000 which further increased to Rs.537,000 in the preceding year FY 1996/1997. In the expansion stage the company also tried introducing new products but did not receive a positive

Related Documents

  • Improved Essays

    Case study analysis: 33 California Pizza Kitchen Managing for Corporate Value Creation FIN3CSFS2 2015 \ Abstract: This case analysis studies the financial performance and position of California Pizza Kitchen (KPC) including available sources of finance with optimal weightage to cost of capital minimal by share repurchase and their effect on share price and return. Question No. 1 As the history of California Pizza Kitchen (KPC) is concerned, it was incorporated in 1985 In Baverlly Hills, California.…

    • 976 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Synopsis of the case This case is based on the issues faced by TFI Food Equipment Solutions. Alex Pettes, who is the new president of privately owned industrial distributor (TFI). TFI is renowned supplier in Ontario and its head office is in Brampton. Alex is concerned about the national market for two new product lines; revolver by one-shot corporation and French fry machine by R-O International’s automatic respectively.…

    • 1135 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Fields food industry is mostly located in shopping malls, airports, other areas with lots of traffic. Her product sells so well since she has such a…

    • 479 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Tom Gallagher presented the FY16 financial results for August, September, and October (attachment V) for the Texas Ministry Market. Mr. Gallagher reported the October month-to-date recurring NOI was $61.6M, favorable to budget variance of $77K and favorable to FY15 year-to-date (YTD) variance of $6.9M. In addition, Mr. Gallagher presented a breakdown of the YTD October FY16 financial results as follows: • base operations $11.5M favorable to budget, $4.1M favorable to prior year • DSRIP $0.4M favorable to budget • Value Creation Opportunities $0.9M unfavorable to budget Furthermore, Mr. Gallagher talked about transition payments/expenses, the significant gains in public programs, and the decline in volumes of operations.…

    • 106 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Financial Practices As of December 31, 2014, Chipotle Mexican Grill, Inc a Delaware corporation operates 1,755 Chipotle restaurants in the US, 7 in Canada, 6 in England, 3 in France and 1 in Germany. Furthermore, the company also has nine Asian kitchen restaurants serving Asian cuisine and is also an investor of a Pizzeria local restaurant. The quarterly financial statements of the company includes all the accounts of its owned subsidiaries. Chipotle’s financial statements are prepared using the US generally accepted accounting principles (GAAP).…

    • 527 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Kudler Fine Foods showed a profit for 2003, upon closer examination, our team believes that Kudler will continue to grow and profits will increase in the future. According to the current ratio, for every dollar of liability, there is close to $17 of assets to cover it, this implies that the short term debts will be easily paid if necessary. The Acid Test Ratio indicates the same healthy relationship between the liabilities and the assets, showing that the company can convert their assets quickly to create a quick conversion to cash. Inventory turnover indicates that the company does not tie up their cash for a long period of time; there is a quick change over rate.…

    • 275 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    General Mills Comparison

    • 1430 Words
    • 6 Pages

    Comparison of the Financial Well-Being of Land O’ Lakes and General Mills When assessing a company’s financial health, it can be beneficial to take a gander into their balance sheets, income statements, and cash flow statements. This allows for a thorough analysis between companies. General Mills and Land O’ Lakes are both food companies and this paper is analysis between the two companies with a focus on their balance sheets, income statements, Key Performance Indicators (KPIs) and cash flow statements to identify the company’s health. General Mills is a U.S. based food company.…

    • 1430 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Introduction Kudler Fine Foods as formed in 1998 by Kathy Kudler and was first based in California. It is a gourmet foods retailer and has been able to grow and also added two more stores in Del Maria and Encinitas in 2000 and 2003 respectively. This report is going to examine Kudler’s current status of its marketing department and how change in this department can be able to create new market and customer opportunities for the organization. Need for Change and Opportunities…

    • 1275 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Spicy Jerk Center

    • 686 Words
    • 3 Pages

    INTRODUCTION This paper will identify the different sources of finance that are available for Spicy Jerk Center. Some of the sources of finance that are available are retain capital, short/medium/long- term, cash management, equity financing and third party financing. The sources of finance are defined as the venues for obtaining funds that come from outside an organization. External sources of finance might include taking on new business partners or issuing equity or bonds to create long term obligation, or commercial paper to take on shorter term debt.…

    • 686 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Harley Enterprise is an enterprise that specialises in restaurants and has opened up a new gourmet restaurant called LaB. LaB introduces new and exciting ways to spice up the food you adore and is exceptionally profitable and unique. It is a scientific themed restaurant and could be the start in a new development in dining experience; it is both classy but fun making it enjoyable to a wide range of people. The first branch of the restaurant LaB is located in West End, an inner-city suburb in Brisbane. West End was once described as a rough, working class area but now it has been transformed into a bustling area with a lively lifestyle filled with shops and restaurants. Because of this business’s profitability, the management needs finance to grow this one-of-a-kind restaurant and expand to South Bank another reputable area.…

    • 682 Words
    • 3 Pages
    Improved Essays
  • Brilliant Essays

    After a fall in 2010, Morrison has maintained a consistent sales revenue to capital employed level up until 2012. In comparison with Tesco, Morrison has a higher value; which suggests that the firm is using their assets more productively than Tesco to generate sales revenue. This is also reflected in Morrison’s lower trade payables rate and inventory turnover period. Morrison’s value is not too high to suggest overtrading on their assets (Atrill and McLaney, 2011). This ratio helps ordinary shareholders and banks monitor the efficiency in the use of their funds.…

    • 3632 Words
    • 15 Pages
    Brilliant Essays
  • Great Essays

    PESTLE ANALYSIS OF FAST FOOD INDUSTRY POLITICAL FACTORS The stable political climate of South Africa allows for its food industry to grow at a steady rate allowing it also to evolve to face different political challenges. The government’s inability to keep up with the energy demand can be seen as one of those challenges. Therefore it is imperative for Famous Brands to creatively solve the problem of unstable electricity supply before it reduces earnings by affecting vital day to day procedures necessary within the fast food industry.…

    • 1851 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    1. Mohammed Barwani Holding Company L.L.C MB Holding was created by Dr. Mohammed Al-Barwani as a multinational organization, where its subsidiaries are spread worldwide. In 1982 when the company established it was known as MB Trading. As a pioneering leader in the market after a decade in 1992 Mohammed Barwani Petroleum Services was founded and so in this short term of successes it became one of the largest growing oil field services company. (MB Holding Company L.L.C, 2013)…

    • 1417 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    (Source: Google images) (Source: http://pin.it/Y-lg7qF) 3. Analyse the Fast Food Industry of South Africa by providing statistics and recent facts on franchise/companies operating in the industry (Source for Wimpy image: AFKinsider) (Source for Nando’s image: AFKinsider) (Source for Chesa Nyama image: How We Made It In Africa) South Africa loves fast food.…

    • 956 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    C. Non financial information Apollo Food Holdings Berhad Apollo Food Holdings Bhd plans to replace old machinery with newer equipment as part of its strategy to further strengthen its position in the fabrication. Executive chair and managing director Liang Chiang Heng said that the society was in the thick of managing director Liang Chiang Heng said that this company was in the thick of working out how much it would need to expend on the drill. Strong,'' he told StarBizWeek after the company's AGM on Thursday. Mr.Liang said the drill involved the replacement of production machinery that had been around for more than 10 years as they were no longer economical to run and required higher maintenance. He said the company would be getting state-of-the-art…

    • 1278 Words
    • 6 Pages
    Improved Essays

Related Topics