9. B Ltd. supplies you the following information

(i) Sales (at 2 months credit) 36,00,000

(ii) Materials consumed (suppliers extend 2 months credit) 9,00,000

(iii) Wages paid (lag in payment- 1 month) 7,20,000

(iv) Manufacturing expenses outstanding at the end of the year

(lag in payment- 1 month) 80,000

(v) Total administrative expenses paid (lag in payment- 1 month) 2,40,000

(vi) Sales promotion expenses paid quarterly in advance 1,20,000 The company sells its product at a gross profit of 25% counting depreciation as part of cost of production. It keeps one month’s stock of each of raw materials and finished goods and a cash balance of `1,00,000.

Assuming a 20% safety margin, work out the working capital requirement of the company on cash cost basis. Ignore work-in-progress.