You have recently been appointed by Hilkon Manufacturing to work in the newly established treasury department. Hilkon Manufacturing is a small company that produces cardboard boxes in a variety of sizes for different purchasers. Samesh Hilkon, the owner of the company, works primarily in the sales and production areas of the company. Currently, the company puts all receivables in one box and all payables in another. Because of the disorganized system, the finance area needs work, and thats what you have been brought in to do. The company has a beginning cash balance of Rs 190,000 in first quarter and it plans to purchase new box-folding machinery in the fourth quarter at a cost of Rs 30,000. The machinery will be purchased with cash because of a discount offered. The companys policy is to maintain a minimum cash balance of Rs 100,000 on each quarter. Interest will be paid at 9% in case of borrowing. The borrowings are made in the multiple of Rs 1000 at the beginning of any quarter and the interest is paid at the end of the quarter itself. All sales and purchase are made on credit. Samesh Hilkon has projected the following sales for each of the next four quarters: Q1 Q2 Q3 Q4 Sales 905,000 1,030,000 1,160,000 1,240,000 Also sales for the last quarter of last year was Rs 806,000 and first quarter of next year is projected Rs 1010,000. Consider the following information: - Cash sales are 40 per cent of the current sales and remaining 60 per cent are collected from the following month sales. - Cost of goods manufactured is 80 per cent of sales. 75 per cent of this cost is paid in the same month and the balance is paid during the following month of costs. - General and administrative salaries will amount to approximately Rs 105,000 on each quarter, depreciation charge of Rs 40,000, and miscellaneous expenses of Rs 30,000 on each quarter. Tax payment of Rs 55,000 will be due in fourth quarter. The extent of Hilkons efficiency of cash management depends on its ability to forecast cash inflow and outflow more accurately. You as an expert in managing cash management techniques, you are required to answer the following queries: [2+2+5+1] a. Facets of cash management. b. Reasons for holding cash by Hilkon Manufacturing c. Cash budget for the year from quarter 1 to quarter 4 d. You are also required to answer whether borrowing will be necessary during the quarter and if yes, when and for how much.