MANIPAL ACADEMY OF HIGHER EDUCATION, DUBAI CAMPUS

School of Business

III SEMESTER

COURSE: CORPORATE FINANCE

COURSE COORDINATOR: DR. Sunitha Prabhuram

Date of Submission: 31st December 2021 MAX.MARKS: 30

INSTRUCTIONS TO STUDENTS

1. This is an individual assignment.

2. Method of submission: soft copy in a PDF format to be uploaded in Teams

3. You are expected to present all the required information neatly, legibly with full format/s

and headings.
4. The assignment is for 30 marks, discretion of marks is with the faculty.

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 BACKGROUND

The coronavirus pandemic is slowing global commerce to a crawl. In a matter of months, the highly
contagious disease has pushed the world to the brink of a recession more severe than the 2008
financial crisis. The depth and duration of the downturn will depend on many factors, including the
behaviour of the virus itself, public health responses, and economic interventions. Given the
extraordinary nature of the pandemic-induced crisis, the central banks and governments have taken
several fiscal and monetary measures.
Most of the countries have also announced complete nationwide lockdowns to delay the peak.
However, this has brought production, manufacturing, retail, trade to a standstill. Many companies
are on the verge of filing for bankruptcy.
In this assignment, let us explore more about the evolving situation and its implications for the
companies. To be precise, let us examine how the working capital requirements of companies will
change during this pandemic and subsequent lockdown.
 REQUIREMENTS

1. Choose an industry of your choice (for, e.g., online food delivery, pharmaceuticals, fashion, real
estate, etc. or any other of your choice).
2. Create a hypothetical company from this industry. Please give it a name and briefly generate a
background for this company.
3. Design the pre-COVID 19 working capital requirement of this hypothetical company. (Show the
working capital requirement calculations properly in a format discussed in the class).
Similarly, design this hypothetical company's ongoing/post-COVID 19 working capital
requirements after reflecting on how these requirements will change due to the lockdowns.
4. While working on point number 3, please highlight at least ten changes and state a probable
reason for this change. For example, a change in raw material price, further delays in the
payment of wages, change in sales, etc.
STRUCTURE OF THE ASSIGNMENT

1. Abstract
(It is a summary of the work. Typically has 250-300 words)
2. Introduction
(What is Covid-19, and what does it mean for the global economy and business?)
3. Background of your hypothetical company
(Discuss the industry, impact of COVID-19 on the industry you have selected, or any other
aspect as you deem fit)
4. Case study
5. Discussion and Conclusion
6. References

The assignment will be checked for plagiarism using Turnitin software. Ensure that plagiarism is
not beyond 25%.