Business Case Studies, Finance, Accounting and Control Case Study, Berkshire Hathaway Inc,Warren Buffet's Investment Philosophy

Code : FAC0068

Year : 2025

Industry : Industrial Goods & Machinery

Region : Asia

Teaching Note:Available

Structured Assignment : Not Available

Abstract: This case explores the financial reporting challenges faced by Shree Steel Ltd., a mid-sized Indian steel manufacturer preparing for a valuation by a global private equity firm. At the center is the company’s Chief Financial Officer, who, along with a young analyst, must ensure that the reported EBITDA accurately reflects the firm’s core operational performance. The case unfolds through a series of insightful decisions involving the treatment of non-operating income, one-time expenses, non-cash charges, severance costs, goodwill impairment, and provisions for litigation. Each adjustment raises practical and ethical questions about transparency, consistency, and the risk of misrepresenting financial health to investors. Through realistic and engaging dialogue, the case demonstrates how standard EBITDA can be misleading if not adjusted for exceptional or speculative items, and how strategic disclosure and judgment are vital in financial reporting. Ideal for courses in Financial Statement Analysis, Corporate Finance, Mergers& Acquisitions and Business Valuation, the case helps students critically assess EBITDA adjustments, apply fair presentation principles, and understand the long-term implications of financial choices on valuation and stakeholder trust..

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