SUGGESTION

The payment policy adopted by the company to the suppliers can be reviewed. This may result in saving of considerable amount of interest further from 6.3% on long-term loans. The credit policy given can also be reviewed so that considerable amount of funds may not and up locking in debtors. This will result in increase of cash balances of the company. Effective Costing Techniques may be implemented to control the operating expenses incurred by the company.

The company may maintain the same Debt-Equity ratio in the future. So that I can increase EPS. For their new products. It is better to choose different debt mix that is cheaper. An alternative proposal of External Commercial borrowings will be cheaper for the company based on terms and conditions of the foreign fluctuations etc.