Name: Rajnandini Kumar

Roll No: 20GEN036

PRN No: 1062200314

Sub: LACF

Case Study 3: THE DOUBLE-EDGED SWORD

Introduction
➢ Ravi Verma is the Director of Inter-mainland Consultancy India Pvt. Ltd. (ICC) SAPL
was confronting liquidity smash for the beyond couple of years. They chose to look for
help from, as a matter of fact, Ravi who additionally turned out to be a chief on the
board. Standard Automotives Pvt. Ltd. (SAPL) was a Chennai based car part producer.
➢ Shah and Co. was one of the top CA firm engaged in Auditing and Tax Advisory work.
➢ By 1990 it was among the best 3 firms in India with a customer base including some
high profile Blue-chip organizations.
➢ Ravi Verma who was an All India rank holder in his CA Final assessments and had
likewise beaten Bombay University in the Bachelors of Commerce assessment has
joined Shah and Co. as a contracted bookkeeper in 1984.
➢ SAPL got going with assembling parts for Indian Motors (IM) IM's portion of the
overall industry confronted a misfortune because of opening up of the Indian auto area.
For set his group to deal with dissecting SAPL's financials. As dreaded, the discoveries
were clear. SAPL needed to go for an undeniable monetary rebuilding to get by. Ravi
had not many choices before him. He could present his discoveries and simultaneously,
decline to take up the rebuilding for ICC.

Facts of the case

• SAPL (Standard Automotives Pvt. Ltd.) was a Chennai based automotive component
manufacturer. Setup in 1966, SAPL started off with manufacturing components for
Indian Motors (IM). At the time, IM outsourced their complete requirement from SAPL
and hence SAPL enjoyed a monopoly.
• SAPL benefited for at least 2 decades till IM’s (Indian Motors) market share faced a
setback due to opening up of the Indian automobile sector.
• In 1998, SAPL decided to invite independent directors to join the board. This move was
to obtain fresh ideas for SAPL’s future plans. As a part of this, SAPL inducted two
independent directors –Ravi Verma, Director, ICC and Ashok Mehta, Director -
Emeritus, Bank of Bombay.
 • Ravi was known so that his capacity might see more than whatever met the eye in
organizations' budget summaries. He had prevailed with regards to pivoting many
organizations that had surrendered trust. As an individual, he was extremely aggressive
and consistently longed for individual achievements.

Analysis
Recorded confirmations propose that the double idea of advancement in carrying both success
and annihilation to society and the climate. It brings innovative additions and new opportunity,
as well as friendly, social and biological outcomes. In this manner a few examiners recognize
advancement as a blade that cuts ways, a maker and destroyer. Despite the fact that
overexploitation of normal assets prompts ecological debasement, numerous nations have
arrived at financial turn of events, through utilization of regular assets.

As Director of ICC, Ravi would need to continue considering a venture with ICC's advantages
and then again, as Director of SAPL, he would need to deal with SAPL's wellbeing.

Past global occasions give some sign regarding how the future might treat unfortunate nations
or those wealthy in normal assets. By using of two contextual analyses from both the created
and creating settings, the paper recommends that the interest from the agricultural nations for
the insurance of climate is less moral since created countries have taken advantage of their
regular assets to accomplish advancement.

Ravi had not many choices before him. He could present his discoveries and simultaneously,
to demonstrate his validity, decline to take up the rebuilding for ICC. The other choice was to
leave the Board of SAPL and keep away from additional struggles. Even more he could go on
with the norm and pay the piper at SAPL and ICC.

Conclusion
Ravi Verma is the Director of Inter-mainland Consultancy India Pvt. Ltd. (ICC). SAPL was
confronting liquidity crunch and looked for help from Ravi who additionally turned out to be
a chief on the board. SAPL needed to go for an undeniable monetary rebuilding to make due.