Mr. Krishnan, a technician entrepreneur, started Sharma Founders and Engineers to manufacture iron cylpebs on a job order basis. When the manufacture of cylpebs proved uneconomical, he took to production of ferrous ground castings by cupola and pitfurnace processes. The case describes how the unit is faced with a large underutilized capacity, high debt, and poor liquidity in its financing structure. A part of the working capital loan has been spent on building and manufacture of moulds, etc. Students are required to identify the problem of the unit and work out a course of action that will make it viable and profitable.