11. Indus Engineering Company has gross sales of *137.5 billion and profit after tax of *7.15 billion in the year 2013. The company is considering expanding its capacity by adding 30 per cent more to its existing fixed assets. Sales are likely to increase by 55 billion. For the proposed. expansion, PBIT to sales ratio is 18 per cent. The company has never borrowed in the past. Balance Sheet as on 31 December 2013 Share capital (4 crore shares 0.22, which is quite low for an engineering firm. Indus is a highly capital intensive company; its fixed costs are 70 per cent of the total costs. It is notable that the performance of engineering industry is quite susceptible to economic changes. Should the company borrow? Give your analysis by making appropriate assumptions.