Working Capital Management Question:
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Explain what were the main issues studied by Tandon committee to exercise control over working capital?

Answer:

The main issues studied by Tandon committee to exercise control over working capital were:

1) Can the norms be evolved for current assets and for debt equity ratio to ensure minimum dependence on bank finance?
2) How the quantum of bank advances may be determined?
3) Can the present manner and style of lending be improved?
4) Can an adequate planning, assessment and information system by evolved to ensure a disciplined flow of credit to meet genuine production needs and its proper supervision?

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