In a recent Board Meeting of N Ltd. following financials of N Ltd. for the year ending 31st March 2025 were presented: Balance Sheet as on…

In a recent Board Meeting of N Ltd. following financials of N Ltd. for the year ending 31st March 2025 were presented: Balance Sheet as on 31.03.2025 Liabilities ₹ '000 Assets ₹ '000 Equity Capital 4,80,000 Fixed Assets 2,42,000 10% Bonds 92,000 Cash 88,000 Sundry Creditors 66,000 Sundry Debtors 1,10,000 Bills Payable 88,000 Closing Stock 3,30,000 Other Current Liabilities 44,000 Total Liabilities 7,70,000 Total Assets 7,70,000 Income Statement for the Year ending 31.03.2025 Particular (₹ '000) (₹ '000) Sales 11,77,000 Less: Cost of Goods Sold Material 4,18,000 Wages 2,64,000 Factory Overheads 1,29,800 8,11,800 Gross Profit 3,65,200 Less: Selling & Distribution Cost 1,10,000 Administrative Cost 1,22,800 2,32,800 Earnings Before Interest and Taxes (EBIT) 1,32,400 Less: Interest Charges 9,200 Earning Before Tax 1,23,200 Less: Taxes @ 50% 61,600 Net Profit (PAT) 61,600 During the Board Meeting: (i) Director A said that the company can maintain a certain growth even though the net profit margin remains constant, and assets increases proportionately to sales and it distributes its 30% of its net profit. To maintain this growth rate, it will not require any external funds. (ii) Director B proposed that just by maintaining a target capital structure and without issuing additional equity and maintaining target dividend pay-out ratio as proposed by Director A, more growth rate can be achieved. (iii) Director C though agreed with views of Director A and Director B, but is of the view that in the coming year it is expected that sales is likely to rise by 15%, hence if required we can go for issue of equity shares, bonds or debentures to achieve the same growth in sales. From the information given above, choose the correct answer to the following questions: