Question 2
In the financial year 2022-2023 a company consumed raw materials worth 10,00,000 INR. The balance sheet as of 31st March 2023 had creditors (for raw materials) worth 5,00,000 INR and the same figure in the balance sheet as of 31st March 2022 was 2,00,000 INR. As a creditor, is it safe to lend raw materials for the company for a 120-day credit?
No
Yes