The following annual figures relate to ABC Limited.

Sales (at three months' credit) 8,000,000

Materials consumed (suppliers extend one months credit) 2,000,000

Wages paid (monthly in arrear) 1,600,000

Manufacturing expenses outstanding at the end of the year 100,000

(Cash Expenses are paid one month in arrear)

Total administrative expenses, paid as incurred 500,000

Sales promotion expenses, paid quarterly in arrears 400,000

The company sells its products on gross profit of 30 percent counting depreciation as part of the cost of production. It keeps two months stock each of raw materials and finished goods, and a cash balance of Rs.500,000. Assuming a 10 % safety margin, work out the working capital requirements of the company on cash cost basis. Ignore work-in-process.