Master of Business Administration- MBA Semester 4

MF0007 –Treasury Management - 2 Credits

(Book ID: B0856)

Assignment Set- 2 (30 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Structural Manufacturers Ltd. provides the following particulars for the year 1999:
(a) Average Debtors 7,00,000
(b) Average Period of Credit Allowed 20 days
(c) Raw material consumed Rs. 48 lakh
(d) Cost of Production Rs. 1.08 crore
(e) Cost of Goods sold Rs. 2.25 crore
(f) Credit Sales Rs. 2.10 crore
Average Inventory:
Raw materials Rs. 4 lakh
Work In Progress Rs. 3 lakh
Finished Goods Rs. 5 lakh
Calculate working capital requirement based on operating cycle assuming 360 days for a year.

Hint: Net Operating Cycle is 40 days, number of operating cycles in a year is 9 and the working
capital estimated is Rs. 25,00,000

Q2. Describe briefly the provisions of FEMA and the role of RBI.