The Indian Railways (IR), the country's largest transporter, is considering a plan to fully electrify its network. The move will cut its fuel expenditure by a whopping 50%. However, the project will require a capital investment of INR 350 billion (approximately USD 4.9 billion1). The investment is beyond the normal capital that is available for annual investment, as the IR is not run with a profit mindset and has limited retained earnings. Therefore, the IR has to consider potential financing options. The proposed investment also requires the IR management to overcome numerous operational changes in areas such a rolling stock, crew, usage of fueling depots, training, disposal of usable diesel locomotives, etc. The electric-based platform appears to be where the industry is headed worldwide, and potential future cost savings may also be possible if the IR moves to this platform. The project would make India the first country in Asia to move to complete electrification, establishing it as a pioneer in the rail industry and boosting national pride. It would reduce the country's reliance on imported fuels and help with the nation's balance of payments, thereby advancing its economic agenda. A third non-financial but national objective of the project would be a significant reduction in carbon emissions. The board of the IR is tasked with examining various aspects of the proposed electrification project and deciding whether or not to approve the idea. The case requires students to make a decision as to whether or not the savings are worth the investment and resource allocation.
Narayana Health, an Indian private healthcare provider, was established with the aim of providing affordable healthcare services without compromising quality. Over the years, its growth and expansion was financed by private equity investors. In August 2015, private equity investors of the company decided to go public through the offer for sale route. Private equity investors had to decide the value of the initial public offering (IPO) and whether the time was appropriate for Narayana to go public. To do so, they needed to consider the company's financial performance, the pros and cons of the company's strategy and business model, the industry's future growth potential, and macroeconomic factors.
Narayana Health, an Indian private healthcare provider, was established with the aim of providing affordable healthcare services without compromising quality. Over the years, its growth and expansion was financed by private equity investors. In August 2015, private equity investors of the company decided to go public through the offer for sale route. Private equity investors had to decide the value of the initial public offering (IPO) and whether the time was appropriate for Narayana to go public. To do so, they needed to consider the company’s financial performance, the pros and cons of the company’s strategy and business model, the industry’s future growth potential, and macroeconomic factors.
In April 2012, a chartered accountant and financial analyst for the manufacturing firm SRF Limited was asked by her chief financial officer to analyze the company’s cash dividend and share repurchase policy and provide recommendations for the next 12 to 24 months. SRF Limited was a ?38 billion multi-business entity. Having completed its third round of share buyback at ?380 per share, SRF Limited paid an interim and consistent dividend of ?7 per share. The company had engaged in a series of share buybacks since 2006. In light of India’s falling economic growth and pessimistic global economic outlook, the company needed to know if it would be able to maintain its growth. Should the company go ahead with another round of share buybacks and increasing dividends?
In April 2012, a chartered accountant and financial analyst for the manufacturing firm SRF Limited was asked by her chief financial officer to analyze the company's cash dividend and share repurchase policy and provide recommendations for the next 12 to 24 months. SRF Limited was a ₹38 billion multi-business entity. Having completed its third round of share buyback at ₹380 per share, SRF Limited paid an interim and consistent dividend of ₹7 per share. The company had engaged in a series of share buybacks since 2006. In light of India's falling economic growth and pessimistic global economic outlook, the company needed to know if it would be able to maintain its growth. Should the company go ahead with another round of share buybacks and increasing dividends?
On November 25, 2012, the head of Revenue Recognition at ESol Limited (ESol) India was preparing for a meeting with the company’s sales team at the head office in Bangalore. ESol Limited was a large, U.S.-based multinational information technology corporation, which had moved into India in 2000. Since then, its management had insisted on the need for close monitoring of accounting procedures in strict adherence to Generally Accepted Accounting Principles. Although the sales team had negotiated the Request for Proposal with MoveForward, a large research firm in India handling and processing high volumes of sensitive data, in good faith, the revenue recognition team felt that clauses dealing with penalties, liquidated damages and termination put their company at risk and wished to defer all of the revenue proposed for the contract until these issues were resolved. The friction between the two teams put the entire deal in jeopardy.
Asahi India Glass Limited faces a situation encountered by many growing companies after having funded its diversification from retained earnings and debt, both in rupees and foreign currency. An over-reliance on borrowed funds without a matching infusion of equity has plunged the company into losses. To reduce its need for financial leverage, the company has issued equity shares on a rights basis, which has helped but is insufficient to reduce its debt burden. The company's management is seeking alternatives to further deleverage the company's capital structure but is finding it difficult due to losses in the recent past, the adverse operating environment created by the global economic crisis and a slowdown in the major segments in which it operates.
On November 25, 2012, the head of Revenue Recognition at ESol Limited (ESol) India was preparing for a meeting with the company's sales team at the head office in Bangalore. ESol Limited was a large, U.S.-based multinational information technology corporation, which had moved into India in 2000. Since then, its management had insisted on the need for close monitoring of accounting procedures in strict adherence to Generally Accepted Accounting Principles. Although the sales team had negotiated the Request for Proposal with MoveForward, a large research firm in India handling and processing high volumes of sensitive data, in good faith, the revenue recognition team felt that clauses dealing with penalties, liquidated damages and termination put their company at risk and wished to defer all of the revenue proposed for the contract until these issues were resolved. The friction between the two teams put the entire deal in jeopardy.
Asahi India Glass Limited faces a situation encountered by many growing companies after having funded its diversification from retained earnings and debt, both in rupees and foreign currency. An over-reliance on borrowed funds without a matching infusion of equity has plunged the company into losses. To reduce its need for financial leverage, the company has issued equity shares on a rights basis, which has helped but is insufficient to reduce its debt burden. The company’s management is seeking alternatives to further deleverage the company’s capital structure but is finding it difficult due to losses in the recent past, the adverse operating environment created by the global economic crisis and a slowdown in the major segments in which it operates.
The executive director, human resources, at Hindustan Unilever Ltd., a market leader in the Indian fast moving consumer goods sector and the Indian subsidiary of the major multinational, Unilever Ltd., is concerned that the company may be losing its position as the “dream employer” for graduates from the top Indian business schools from which it recruits its management personnel. The shifting demographic profile of employees and their changing expectations have already resulted in changes in the company’s employment model. These include on-the-job training and classroom and e-learning program facilities at all levels of the organization and at all stages of one’s career; mentoring by senior management; communication of vision and goals throughout the company, especially through regular meetings with the CEO; a focus on corporate social responsibility; and an emphasis on work-life balance, such as offering sabbaticals and providing health and recreation facilities at the new headquarters. While the company has changed its traditional employment value proposition, in a highly competitive and talent-scarce job market, can it continue to be relevant in order to attract and retain the best talent in the country?
The executive director, human resources, at Hindustan Unilever Ltd., a market leader in the Indian fast moving consumer goods sector and the Indian subsidiary of the major multinational, Unilever Ltd., is concerned that the company may be losing its position as the "dream employer" for graduates from the top Indian business schools from which it recruits its management personnel. The shifting demographic profile of employees and their changing expectations have already resulted in changes in the company's employment model. These include on-the-job training and classroom and e-learning program facilities at all levels of the organization and at all stages of one's career; mentoring by senior management; communication of vision and goals throughout the company, especially through regular meetings with the CEO; a focus on corporate social responsibility; and an emphasis on work-life balance, such as offering sabbaticals and providing health and recreation facilities at the new headquarters. While the company has changed its traditional employment value proposition, in a highly competitive and talent-scarce job market, can it continue to be relevant in order to attract and retain the best talent in the country?
Essar Group (Essar), a large diversified conglomerate based in India, needs to raise significant capital through an initial public offering (IPO) and has to decide whether to do so through the Indian Stock Exchange, the London Stock Exchange or the New York Stock Exchange. The company will have to continue to report in Indian GAAP and, if it decides to list its IPO in the United States or Europe, it also will have to adopt either U.S. GAAP or IFRS. The chief financial officer of Essar has to recommend to management where to raise the needed capital and what accounting standard to adopt. The B case 9B13B015 discloses the decision and describes some of the implementation issues.
The chief executive officer of Tesu, a small manufacturing company in Croatia, and a consultant hired to solve Tesu's production problems both realize that the company has several problems, the most pressing of which is a shortage of cash. Together, they need to come up with a plan to restore cash flow and improve production efficiencies.
Essar Group (Essar), a large diversified conglomerate based in India, needs to raise significant capital through an initial public offering (IPO) and has to decide whether to do so through the Indian Stock Exchange, the London Stock Exchange or the New York Stock Exchange. The company will have to continue to report in Indian GAAP and, if it decides to list its IPO in the United States or Europe, it also will have to adopt either U.S. GAAP or IFRS. The chief financial officer of Essar has to recommend to management where to raise the needed capital and what accounting standard to adopt. The B case 9B13B015 discloses the decision and describes some of the implementation issues.
The urgency of financial inclusion had been well-recognized by policy makers, the government, the Reserve Bank of India and banks as a national priority that would play a crucial role in promoting inclusive economic growth. New technology could enable innovative sustainable business models to reach previously excluded customers. This case presents FINO's technology-based model for financial inclusion and the challenges presented to the Kohlapur district coordinator as he starts the process of building the local organization.
The urgency of financial inclusion had been well-recognized by policy makers, the government, the Reserve Bank of India and banks as a national priority that would play a crucial role in promoting inclusive economic growth. New technology could enable innovative sustainable business models to reach previously excluded customers. This case presents FINO’s technology-based model for financial inclusion and the challenges presented to the Kohlapur district coordinator as he starts the process of building the local organization.