5. Raj Chemical a leading Chemical Manufacturing company based in Coimbatore, Tamil Nadu had reasonable sales territory is southern and western Indian Markets. They suffered a lot During the last couple of years due to changing government regulations, Increased raw-material price and hike in labor charges. Covid-19 also fueled their hardship phase. Mr. Sam Finance & Accounts team head is Planning to Introduce ZBB from the 1-4-2022 with a view to tighten the spending. But the existing team members are against the proposal, and they want to continue with Flexible budgeting. Hike in Labor Charges (over base previous year) 5% Last 4 Years Sales 31-3-2019-50Crore 31-3-2020-35Crore 8% 31-3-2021-27Crore 6% 31-3-2022-40Crore 10% Existing Team Members are expecting 20% increase in sales, and they are asking for a proportionate hike in this years Budgeted Figures. Mr. Sam is of the view that it won't give a realistic value and results in the creation of an inflated budget. Mr. Sam decided to go ahead and Meet Mr. Mohit Yadav, management head to discuss about the ZBB Proposal. Assume you are Mr. Mohit Yadav, in this context which decision you are going to take forward. Are you going to Support, Mr. Sam or the Existing Management team? Elaborate (6Marks)