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The primary objectives of the case study are to get the participants exposed to the issues of working capital which even profitable companies face on a day-to-day basis; give the participants an understanding of how to balance the, at times, conflicting objectives of increasing profits and sales through favorable credit terms; and expose them to the impact of increase in inventory levels and average collection period on margins in a period of slow growth. They will also learn about the concept of factoring and its uses.

The case study is about a group of companies engaged in education, steel fabrication and oil businesses owned by a single proprietor. The company was based in Fatehnagar which was part of Hyderabad district in the state of Telangana, India, and the case study traces the origins of the group from 1960s to 2021. The group was invested the surplus cash flows from the oil business to initiate and expand other businesses during this period. The economic downturn due to the COVID-19 pandemic had hit the company, particularly its oldest business – Noble Chemical Agency. The oil business was facing issues related to its growth and profitability, and the uncertainty around COVID-19-related restrictions had only augmented the fears of the management. The case study looks at issues and the dilemma which the owner of the company faced. The case study highlights various issues related to working capital management, especially related to receivables management and inventory levels faced by businesses during the slow-growth phase. It demonstrates how working capital management issues, if not resolved in time, can lead to insolvency of even a successful company with a sound business model.

The case study is meant for teaching in postgraduate management programs (Master of Business Administration and Postgraduate Diploma in Management) in the following courses: corporate finance/financial management course in the first year (the case study should be taught towards the end of the course); and management accounting courses in first year (the case study should be positioned in the middle of these courses). The case study can also be used to highlight issues related to working capital and small business management in a Management Development Programme (MDP) course for “Finance fundamentals for non-finance executives”.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

The present paper aims to discuss the “money laundering” aspect and related governance practices of third sector, non-government organizations (NGOs). In NGOs globally, foreign contributions are not an old story. But in NGOs, the spotlight on the vulnerability of money laundering in the name of foreign contribution(s) requires special attention. The study highlights the dimension of money laundering in an Indian NGO and related dominance of board leadership about governance issues by way of foreign contribution.

The present study uses case study method for enlightening the money laundering tussle in a non-government organization and its governance impact on the stakeholders’ interests at large.

The results stress upon the need for to have strong anti-money laundering practices in non-government organizations in the form of foreign contributions which are still struggling to have a sound governance system in place.

It is of significance to both policymakers and standards setters at the international level in the light of increasing global awareness about anti-money laundering practices of the third sector.

There will be an improvement in the corporate management related to money-laundering of these organizations and infuse higher confidence among stakeholders and further lead to their effective regulatory framework.

It is an original paper which highlights the role and significance of money laundering practices in the third sector.