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Case study
Publication date: 2 May 2016

Sulagna Mukherjee, M. Durga Prasad and Sudeep S. Kumar

Financial Accounting and Corporate Finance.

Abstract

Subject area

Financial Accounting and Corporate Finance.

Study level/applicability

Undergraduate, Post Graduate and Executive Education.

Case overview

T.A. Pai Management Institute (TAPMI), a leading B School in South India had established its new campus in Badagabettu village, about 5 km away from Manipal, Udupi District, Karnataka. Though the campus housed about a thousand inmates, comprising students, staff and faculty members, a proper public transport system did not develop commensurate with other facilities. The TAPMI administration was flooded with requests from various stakeholders to find a solution to this vexed problem. The Dean Administration had three options before him namely convincing the existing private bus operator to run a new bus en route TAPMI, TAPMI purchases the bus by either paying cash or availing loan from a bank or TAPMI can take a bus on lease. The predicament before Dean was to find out the most economically viable solution.

Expected learning outcomes

At the end of this case discussion, the participants will be able to: understand the application of breakeven analysis; prepare income statement, balance sheet, cash flow statement and forecast of cash flows; evaluate financing and investing decisions by using various techniques; discuss and debate the different alternatives available to the organization.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 1: Accounting and Finance.

Details

Emerald Emerging Markets Case Studies, vol. 6 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

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Case study
Publication date: 6 March 2017

Vishwanath S.R., Kulbir Singh, Jaskiran Arora and Durga Prasad

The case highlights the ambitious growth strategy of Suzlon, an Indian company specializing in non-conventional (wind) energy. In 2007, Suzlon announced the acquisition of…

Abstract

Synopsis

The case highlights the ambitious growth strategy of Suzlon, an Indian company specializing in non-conventional (wind) energy. In 2007, Suzlon announced the acquisition of REpower of Germany, one of the top wind power companies in the world. It issued zero coupon and coupon bearing foreign currency (US dollar) convertible bonds (FCCB) amounting to $760 million to finance the acquisition. These bonds were listed in Singapore. Due to deteriorating business conditions the company experienced a sharp decline in profitability and stock price resulting in a debt overhang. At the same time, the Indian rupee depreciated from INR44 to INR55 leading to losses on largely unhedged, foreign currency coupon payments. The company had to restructure its capital structure to escape bankruptcy. Since FCCB holders did not agree to restructure the terms of the instrument, the company had to turn to senior lenders to restructure debt. Eventually Suzlon had to sell-off REpower to reduce leverage.

Research methodology

The case is based on interviews of market intermediaries and published information. The information relating to the restructuring has been taken from the information statement filed with the Securities Exchange Board of India and the Stock Exchanges. The timeline of events were constructed from the information available in company press releases. Financial statements and other details are from the documents filed with the regulators and supplemented with the information available in Prowess database. The stock price and stock market index data are from the websites of Bombay Stock Exchange and the National Stock Exchange of India. Exchange rates, inflation and interest rates have been taken from Bloomberg and the Reserve Bank of India website. Valuation inputs like multiples are from Prowess database and security analyst reports. Sources of information are documented appropriately in the case and instructor’s manual. Although we interviewed the investment bankers involved in the restructuring we have not included any private information in the case to preserve confidentiality.

Relevant courses and levels

This case can be used in a corporate finance course or in a module on debt restructuring in a corporate restructuring course or in the financing module in an advanced corporate finance course or in an International Finance course. It can also be used to teach an integrated approach to valuation and financing in a valuation course.

Theoretical bases

The case highlights the rationale for issuing FX convertible debt, parity conditions in international finance and the use of alternate valuation models.

Details

The CASE Journal, vol. 13 no. 2
Type: Case Study
ISSN: 1544-9106

Keywords

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Case study
Publication date: 10 September 2018

Vishwanath S.R., Jaskiran Arora, Durga Prasad and Kulbir Singh

The case provides an introduction to how currency mismatches create exposures, why and how companies hedge (or do not hedge) those exposures, alternate valuation models…

Abstract

Synopsis

The case provides an introduction to how currency mismatches create exposures, why and how companies hedge (or do not hedge) those exposures, alternate valuation models and the use of foreign currency convertibles in funding a global expansion program. The case highlights the ambitious growth strategy of Wockhardt, a global biopharmaceutical company. In a bid to dominate the biopharmaceutical market, Wockhardt grew aggressively by acquiring companies all over the world. This expansion was funded by a mix of secured loans (bank borrowings) and unsecured loans including foreign currency (US dollar denominated) convertible bonds (FCCBs). Due to deteriorating business and economic conditions, the company experienced a sharp decline in profitability and stock price resulting in a debt overhang. The company had to restructure its capital structure in March 2009 to escape bankruptcy. Since FCCB holders did not agree to restructure the terms of the instrument, the company had to turn to senior lenders to restructure debt. The company’s management is faced with several options to deal with financial distress. The case asks students to evaluate those options. The case can be used to teach hedging foreign currency exposures, design of capital structure in rapidly evolving industries and dangers of financing R&D intensive ventures with convertible debt denominated in foreign currencies.

Research methodology

The case is based on secondary data sources. Information statements filed with the Securities Exchange Board of India, the company’s website, press releases and security analyst reports formed the basis for this case. Supplementary information was gathered from the CAPITALINE database, and websites of the Bombay Stock Exchange and the National Stock Exchange of India. Sources of information are documented appropriately in the case and teaching note. No names in the case have been disguised. The authors have no personal relationship with the company.

Relevant courses and levels

The case is suitable for courses in corporate finance, mergers and acquisitions, international financial management, corporate restructuring and valuation at the graduate level. It can also be used in executive education programs.

Theoretical bases

The case provides an introduction to how currency mismatches create exposures, why and how companies hedge (or do not hedge) those exposures, alternate valuation models, the use of foreign currency convertibles in funding a global expansion program and the alternatives in corporate restructuring. Suitable references are provided in the teaching note.

Details

The CASE Journal, vol. 14 no. 5
Type: Case Study
ISSN: 1544-9106

Keywords

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Article
Publication date: 3 September 2018

Joanita Kataike, Durga Prasad Venkata Modekurti, Eric Butali, David Magumba, Andrew Ronnie Mugenyi, Adalbert Aine-Omucunguzi and Xavier Gellynck

Effective rural agribusiness development requires dedicated training programmes therefore, this paper is an attempt to investigate smallholder farmers’ TNs in the dairy…

Abstract

Purpose

Effective rural agribusiness development requires dedicated training programmes therefore, this paper is an attempt to investigate smallholder farmers’ TNs in the dairy agribusiness sector. The purpose of this paper is to study a bigger research project of the dairy value chain in agribusiness framework in the Rwenzori region.

Design/methodology/approach

A sample size of 100 dairy farmers were randomly selected from two Districts in the Rwenzori region. The descriptive statistics (mean and standard deviation) provided a basis for discussion. Furthermore, parametric Pearson coefficient test was conducted to examine the smallholder farmers’ TNs and assess its association with selected socio-demographic characteristics of the dairy farmers.

Findings

The analysis indicated that dairy farmers expressed the need for a training program. Most frequently requested topics include: fodder cultivation, quality and safe milk handling, milk marketing, calf feeding and rearing, animal nutrition and financial literacy out of 12 topics. The least desired TNs was record keeping.

Research limitations/implications

The findings contribute to the understanding of dairy farmers’ TNs.

Practical implications

The identified 12 key training intervention areas for the dairy farmers inform policymakers Dairy Development Authority and other development bodies in the Rwenzori region to address the challenges and improve smallholder dairy farming practices.

Originality/value

The study applies a synthesis review to identify theoretically acceptable variables that measure smallholder farmers’ TNs in the dairy agribusiness. The paper also shares the empirical evidence of a pioneering attempt to identify smallholder dairy farmers’ TNs in Uganda.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 18 February 2019

Durga Prasad and S.C. Jayswal

The purpose of this paper is to develop the methodology which can facilitate the concept of reconfiguration in the manufacturing system.

Abstract

Purpose

The purpose of this paper is to develop the methodology which can facilitate the concept of reconfiguration in the manufacturing system.

Design/methodology/approach

Design methodology includes the calculation of similarity matrix, formation of part family, and selection of part family. ALC algorithm has been used for part family formation and three criteria have been considered for the selection of part family. These criteria are reconfiguration effort, under-utilization cost, and floor space cost. AHP has been used to calculate the weights of criteria and reference ideal method has been used for the selection of alternatives.

Findings

In the manufacturing system, machines should be grouped on the basis of reconfiguration cost. When the time period is less, light machines and Group 1 machines are added and removed. In the case study, the concept of reconfiguration is useful for families (A, B, C, D). Machines can be reused by adding/removing some modules of machines. The concept of reconfiguration becomes more useful when it is implemented with lean manufacturing. Lean manufacturing techniques Jidoka and Poka-yoke are used to increase the diagnosability of the system.

Practical implications

Industrial case study has been considered.

Social implications

Market competition is increasing rapidly and it increases the demand and variety of products, due to which manufacturing enterprises are forced to adapt a manufacturing system which can adjust its capacity and functionality quickly at low cost. To reconfigure manufacturing system from one product/product family to another product/product family, changes can be done in hardware and/or software components in response to sudden changes in the market or in regulatory requirements.

Originality/value

An integrated approach for reconfiguration has been proposed considering the industrial application. It includes weighted Jaccard function, ALCA, AHP, RIM. The methodology for calculation of reconfiguration effort, under-utilization cost, and floor space cost has been presented for industrial case.

Details

Benchmarking: An International Journal, vol. 28 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

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Article
Publication date: 9 August 2021

Ramesh Kumar Vobulapuram, Javid Basha Shaik, Venkatramana P., Durga Prasad Mekala and Ujwala Lingayath

The purpose of this paper is to design novel tunnel field effect transistor (TFET) using graphene nanoribbons (GNRs).

Abstract

Purpose

The purpose of this paper is to design novel tunnel field effect transistor (TFET) using graphene nanoribbons (GNRs).

Design/methodology/approach

To design the proposed TFET, the bilayer GNRs (BLGNRs) have been used as the channel material. The BLGNR-TFET is designed in QuantumATK, depending on 2-D Poisson’s equation and non-equilibrium Green’s function (NEGF) formalism.

Findings

The performance of the proposed BLGNR-TFET is investigated in terms of current and voltage (I-V) characteristics and transconductance. Moreover, the proposed device performance is compared with the monolayer GNR-TFET (MLGNR-TFET). From the simulation results, it is investigated that the BLGNR-TFET shows high current and gain over the MLGNR-TFET.

Originality/value

This paper presents a new technique to design GNR-based TFET for future low power very large-scale integration (VLSI) devices.

Details

Circuit World, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0305-6120

Keywords

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Article
Publication date: 6 November 2017

Durga Prasad Gautam

Political economy research recognizes that the inflows of external financial resources help the governments enact market-oriented reforms. Since remittances have outpaced…

Abstract

Purpose

Political economy research recognizes that the inflows of external financial resources help the governments enact market-oriented reforms. Since remittances have outpaced other types of financial inflows in many countries, they can potentially increase the government’s incentive to implement regulatory reform that can contribute to business-friendly environment. This issue has long been overlooked by the literature on remittances. The purpose of this paper is to examine whether remittances promote business regulatory reform in the recipient countries.

Design/methodology/approach

This study uses balance of payments data on remittances for 114 countries during 2004-2012 period. Since remittances could be endogenous to business regulation, the identification strategy follows an instrumental variable approach. The author assesses the general stability of linear model estimates by fitting the beta regression model.

Findings

The results show that, while the increase in remittance inflows is associated with lower regulatory requirements for starting a business in the recipient economy, this association is stronger in developing countries than in high-income nations. Various sensitivity tests reinforce the robustness of these findings.

Originality/value

One of the most important yet overlooked aspects of remittances is that they can potentially shape the political will to enact regulatory reform for businesses. The incentives for the government to relax burdensome entry regulations tend to stem from potential gains associated with the formalization of remittances. This paper makes a first attempt at studying the link between remittances and the quality of entry regulation.

Details

Journal of Entrepreneurship and Public Policy, vol. 6 no. 3
Type: Research Article
ISSN: 2045-2101

Keywords

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Article
Publication date: 16 May 2016

Durga Prasad Venkata Modekurti

Market transactions in large vegetable markets call for transparency with utmost urgency. The reason are that buyers are located at distant places and the volume of sales…

Abstract

Purpose

Market transactions in large vegetable markets call for transparency with utmost urgency. The reason are that buyers are located at distant places and the volume of sales is very high. The purpose of this paper is to highlight the development of an automated system in market transactions in order to bring about transparency with concrete evidence available to small and medium farmers who are then able to repose trust in the system by acquiring the right price for the right product. The farmers can also confirm the effectiveness of the system by testing it themselves.

Design/methodology/approach

First, a theoretical framework of marketing procedures of larger vegetable markets has been constructed with tomato as a vegetable of study and the Madanapalle tomato market as a market studied through surveys. Second, methods of functioning in marketing procedures including pricing and auctioning have been modified according to the objective. An android-based application has been used to develop an automated model. Surveys have been conducted to understand the perceptions of farmers in marketing procedures and price determination at the village level, and to test the automated model in the study market.

Findings

Both quantitative as well as qualitative approaches indicate that, the proposed automated model in the modified marketing procedural system is of benefit to all stakeholders in the supply chain.

Research limitations/implications

In model testing, gaps in inputs from a greater number of buyers during auctioning remains a limitation of the study.

Social implications

For sustainable growth of tomatoes or any other vegetables it is essential that the farmers trust the marketing procedural system. This is possible if farmers obtain the right price for their products. Once the automated system is implemented, buyers acquire high-quality goods at desired prices, which further encourages more buyers from other regions to participate in the auctioning/tendering process stimulating an increased demand.

Originality/value

This paper is unique in its pricing function and scores of stakeholders. Pricing function involves the farmers’ input along with the buyers’ inputs whereas scores of these two stakeholders have been obtained through the inputs of commissioning agents.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 6 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 27 May 2014

K.G. Durga Prasad, K. Venkata Subbaiah and K. Narayana Rao

– The purpose of this paper is to demonstrate a methodology to design a supply chain with a view to achieve a strategic fit between competitive and supply chain strategies.

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1725

Abstract

Purpose

The purpose of this paper is to demonstrate a methodology to design a supply chain with a view to achieve a strategic fit between competitive and supply chain strategies.

Design/methodology/approach

Quality function deployment (QFD)-based optimization methodology is employed to design a supply chain for a product through aligning the competitive and supply chain strategies. Normal boundary intersection (NBI) method is adopted to obtain optimal weights of the supply chain design objectives. Weighted additive model is developed for multi-objective optimization. Utility-based attribute function, which structure the relationship between the elements of competitive and supply chain strategies is established. The utility functions and the information contained in the House of Quality (HOQ) of QFD are used to define the supply chain performance (SCP).

Findings

SCP index is computed using the set of supply chain design objectives obtained by solving the weighted additive model. On the basis of SCP index, the supply chain activities are planned accordingly. An illustrative example is presented in this paper to describe the QFD-based optimization methodology for designing a supply chain.

Originality/value

QFD-based optimization is a novel approach to design a supply chain with a focus on aligning competitive and supply chain strategies.

Details

Journal of Manufacturing Technology Management, vol. 25 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

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Article
Publication date: 26 October 2012

K.G. Durga Prasad, K. Venkata Subbaiah and K. Narayana Rao

The purpose of this paper is to develop a methodology using quality function deployment (QFD) approach for aligning competitive strategy with supply chain strategy.

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1405

Abstract

Purpose

The purpose of this paper is to develop a methodology using quality function deployment (QFD) approach for aligning competitive strategy with supply chain strategy.

Design/methodology/approach

QFD and utility‐based optimization approach are employed to achieve strategic fit between the competitive and supply chain strategies. The supply chain performance is defined by using the information contained in the House of Quality of QFD and utility functions.

Findings

Supply chain performance index is computed for the different sets of supply chain design objectives. An illustrative example is presented in this paper to describe the QFD approach for aligning competitive and supply chain strategies.

Originality/value

Application of QFD approach is a new approach to design a supply chain through aligning competitive and supply chain strategies.

Details

Journal of Advances in Management Research, vol. 9 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

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