M/S. Super Stave Spinning Mills Ltd. Case The main sponsor of the project was a contractor, who is known as a distributor and a whole sale businessman of a rural area. He was not an educated person but he had experience and vision. At first he stablished a biscuit manufacturing factory with the bank's financial assistance in 1978, and he had successfully run the project and repaid the bank's dues in time In 1989. he intendered to stablish a cotton spinning project in his local area Khulna. For this he came to the bank and submitted a loan proposal. In 199. the bank sanctioned Tk 12.00 crore for setting up of a cotton spinning project with a production capacity of 10 Inc kgs of yarn. The sponsors frmed a public Lid company with their relations. They completed the implementation process and started commercial operation in the schedule time in 1993. The bank loan was repayble in 20 half yearly instalment with interest. The company has been repaying the loans since incestion. They never failed to pay the bank's instalment and did not take any replacement and waive facilities from the bank. In 1998, the bank was pleased to sanction TX 30 crore as the BMRE proposal submitted by the sponsor's to enhance the production capacity to 20 lac kg per year. Again they have successfully completed the BMRE scheme and started commercial operation of the Project in due time. They are paying bank dues and there is no overdues in their loan accounts. They are one of the good paymaster of the bank and have a good reputation in the banking sector. In the meantime, they have developed in their business corporate management system. Their children are well educated and engaged themselves in parental business. Thereafter reportedly the family developed about a dozen industrial units which are heen run efficiently and earning profit As senior student of business studiesMBA M.Com] / as a bank executive analyse the case and find the reasons for failure of the enterprise including the following: Hints for Analysis : Good imtertion 2 Honesty and sincerity. 3. Excellent management capability. Financial strength Willingness to repay the bank dues M/S. Super Stave Spinning Mills Ltd. Case The main sponsor of the project was a contractor, who is known as a distributor and a whole sale businessman of a rural area. He was not an educated person but he had experience and vision. At first he stablished a biscuit manufacturing factory with the bank's financial assistance in 1978, and he had successfully run the project and repaid the bank's dues in time In 1989. he intendered to stablish a cotton spinning project in his local area Khulna. For this he came to the bank and submitted a loan proposal. In 199. the bank sanctioned Tk 12.00 crore for setting up of a cotton spinning project with a production capacity of 10 Inc kgs of yarn. The sponsors frmed a public Lid company with their relations. They completed the implementation process and started commercial operation in the schedule time in 1993. The bank loan was repayble in 20 half yearly instalment with interest. The company has been repaying the loans since incestion. They never failed to pay the bank's instalment and did not take any replacement and waive facilities from the bank. In 1998, the bank was pleased to sanction TX 30 crore as the BMRE proposal submitted by the sponsor's to enhance the production capacity to 20 lac kg per year. Again they have successfully completed the BMRE scheme and started commercial operation of the Project in due time. They are paying bank dues and there is no overdues in their loan accounts. They are one of the good paymaster of the bank and have a good reputation in the banking sector. In the meantime, they have developed in their business corporate management system. Their children are well educated and engaged themselves in parental business. Thereafter reportedly the family developed about a dozen industrial units which are heen run efficiently and earning profit As senior student of business studiesMBA M.Com] / as a bank executive analyse the case and find the reasons for failure of the enterprise including the following: Hints for Analysis : Good imtertion 2 Honesty and sincerity. 3. Excellent management capability. Financial strength Willingness to repay the bank dues
