Q.4 Illustration The cost sheet of POR Ltd. Provides the following data: Cost per unit Raw materials Rs. 50 Direct Labor Overheads (including depreciation of Rs.10) 20 40 Total cost Profits Selling price 110 20 130 1) a) Average raw material in stock is for one month. b) Average materials in work in progress is for half month. c) Credit allowed by suppliers; one month; d) credit allowed to debtors; one month. e) Average time lag in payment of wages; 10 days; f) average time lag in payment of overheads 30 days 2) 25% of the sales are on cash basis. 3) Cash balance expected to be Rs.1,00,000 4) Finished goods lie in the warehouse for one month. You are required to prepare a statement of the working capital needed to finance a level of the activity of 54,000 units of output. Production is carried on evenly throughout the year and wages and overheads accrue similarly. Debtors are to be valued at cost.
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Newgen food industries set up food and beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of the labour. The enterprise avail the services of the local people who belong to the weaker section of society. The board of director decided invest 50 lacs to acquire plant and machinery, rupees 1 crore to buy land, rupees 20 lakh to buy raw material and rupees 20 lacs to maintain day to day expenses. On the basis of given information about newgen food industries, answer the following questions:(A) Name the act of industries which is applicable to the above industry.(MSMED,Act2006)(B) Identify the category into which this industrial unit will be placed as per act identified in part (a.) (small manufacturing)(C) State the investment limit of the category into which this industrial unit will be placed.