A Cement company has an installed capacity of producing 1.25 lac tonnes of cement p.a. Its present capacity utilization is 80%. The major raw material for a cement firm is limestone which is obtained on cash basis from a firm located near the plant. The company sells cement in 200 kg drum. From the information given below, determine the net working capital requirement of the company for the current year. Cost structure per drum of cement is as under Gypsum - Rs 25 Limestone - Rs 15 Coal - Rs 30 Packing material - Rs 10 Direct labour - Rs 50 Factory overheads (including depreciation of Rs 10)- Rs 30 Administrative overheads 20 Selling overheads - Rs 25 Total Cost - Rs 205 Profit Margin - Rs 45 Selling Price - Rs 250 Add: GST (10% of selling price) - Rs 25 Invoice price to customer - Rs 275 Additional information Desired holding period for raw material Gypsum 3 months Limestone 1 month Coal 2.5 months Packing Material 1.5 months The product is in process for a period of half month. (Assume full units of gypsum, limestone and coal are required and other conversion costs are to be taken at 50%) Finished goods are in stock for 1 month Customers are extended a credit period of 3 months Average time lag in payment of GST is 1.5 months Average time lag in payment of wages is half month and overheads is one month Credit period extended by suppliers (of raw material other than limestone) are gypsum 2 months, coal 1 month and packing material half month Minimum desired cash balance is Rs 25,00,000 {}