S Ltd. Is manufacturing steel at its plant in india. It is enjoying a buoyany demand for its products as economic growth is about `7%-8%` and the demand for steel is groawing. The company has decided to set up a new steel plant to cash on the increased demand. it is estimated that it will require about ` ₹ 2000` crore to set up and about `₹ 500` crore of working capital to start the new plant.
(a) Identify the decision taken by the finance manager in the above case.
(b) Explain any two factors affecting the fixed and working capital requirements of S Ltd.