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'S' Limited is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic 'growth is about 7%-8% and the demand for steel is growing. It is planning to set up a new steel plant to cash on the increased demand it is facing. It is estimated that it will require about ` 5000 crores to set up and about ` 500 crores of working capital to start the new plant. Questions: 1. What is the role and objectives of financial management for this company? 2. What is the importance of having a financial plan for this company? Give an imaginary plan to support your answer. 3. What are the factors, which will affect capital structure of this company? 4. Keeping in mind that it is a highly capital intensive sector what factors will affect the fixed and working capital. Give reasons with regard to both in support of your answer.

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