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Q.2 briefly explains how the Operating Efficiency and Availability of Raw Material

               are  important  factors  that  one  should  consider  while  managing  the  working

               capital requirement.



               5-6 mark questions
               Q.1  K.J.  Ltd.  is  manufacturing  trucks  at  its  manufacturing  unit  in  Kolkata.  The

               demand of its trucks is high as the economic growth   is about   7% to 3%.  The

               company has estimated a 20% increase in the demand of its trucks. It is planning


               to  set  up  a  new  truck  manufacturing  unit.  For  this  the  company  will  require

               approximately Rs 2,000 crores as fixed capital and 500 crores as working capital.

               The company has already arranged for its fixed capital.

               State any three   factors   that   the finance   manager of the company should

               keep   in mind   while arranging its working capital as per the above case.




               Q.2   State whether the working capital requirements of business manufacturing

               the following items are big or small:

               Justify your statement,

               (a) Steel


               (b)  Milk

               (c) Room Coolers

               (d)  Sign boards   manufacturing against orders

               (e) Industrial Boilers.
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