1. The annual figures of Alpha Ltd are as follows:
(i) Sales at home, at 1 month credit Rs. 12,00,000.
(ii) Export at 3 months credit, S.P. 10% below the home price Rs. 5,40,000.
(iii) Materials used, suppliers extend 2 months credit Rs. 4,50,000.
(iv) Wages paid, half month in arreas Rs. 3,60,000.
(v) Manufacturing expenses, paid one month in arreas Rs. 5,40,000.
(vi) Depreciation on fixed assets Rs. 60,000.
(vii) Administrative expenses, paid one month in arrear Rs. 1,20,000.
(viii) Sales promotion expenses, payable quarterly in advance Rs. 60,000.
Alpha Ltd. sells goods in the domestic market on a gross profit of 25%. It keeps one month stock of raw materials as well as finished product and believes in keeping Rs. 1,00,000 available to it. You are required to calculate the working capital requirement of the company, assuming 15% safety margin.
2. Give a complete overview of the different marketable securities that are available for investments.
3. Select any financial Institution/ Organisation of your choice and obtain information about the important components of its credit policy and the attributes that they take into consideration while deciding the credit wortheness about its customers.
4. Describe the creation of Euro Money and Eurocurrency Markets? Discuss the factors contributing to the growth of the Euromarkets.
5. ‘The Working Captal Module is divided into three additional parts beyond the investment information presented in the Capital Investment (CI) module’. Discuss of objectives and operation sequential operation of the working capital module. Discuss the objectives and operation of each these three parts.
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