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Ganesh Textiles Case Questions
Ganesh Textiles Case Questions
1. Analyse the financial health of Ganesh Textiles Ltd (GTL)? Explain why the company has
been facing a cash shortage.
(5 marks)
2. Ascertain the impact of implementing each of the two proposals made by the transportation
manager and the operations manager on the company’s financial health.
If you were the bank manager, would you extend loan to the company based on either of the
two proposals? Which proposal is better in your view?
Compare the impact of shifting from seasonal to level production on GTL with the impact in
the Toy World case. Explain the similarities/differences.
(10 marks)
3. Estimate Ganesh Textile Ltd’s cost of capital. What will be the opportunity cost of foregoing
the purchase discount, assuming the terms suggested by the purchase manager? What would
be the minimum purchase discount that would be attractive for GTL?
(10 marks)
4. What alternative courses of action would you recommend to Sunita Kumar to resolve her
company’s current problem?
(5 marks)