Read the following case study and answer question.

Aninjey is a CEO of Alfa Ltd. He is running a shoe business where his company is manufacturing canvas shoes, made up of breathable t-shirt fabric. His business is having a good liquidity position. He has already issued 200 equity shares earlier and has a company policy of paying regular dividends to its shareholders. He wants to expand his business and for that he required "100 crores. He asked his Finance Manager to prepare a financial blueprint Of the same in order 10 have the right debt-equity ratio, so that a right financial balance can be maintained.

From the above case study, find out the cash flow position of Alfa Ltd.

High

The correct answer is option (1) : High

Explanation:

Good Liquidity Position:

•The case study mentions that Alfa Ltd. has a good liquidity position. This implies that the company has sufficient liquid assets to meet its short-term obligations and operational needs.

Regular Dividend Payments:

• The company has a policy of paying regular dividends to its shareholders. This practice could indicate a stable and positive cash flow position, as companies generally pay dividends from their profits.

Expansion Plans :

• Aninjey, the CEO, wants to expand the business and requires 100 crores for that purpose. The fact that the company is planning expansion indicates confidence in its financial capabilities, including a favorable cash flow position.

Financial Blueprint for Debt-Equity Ratio:

• Aninjey has asked the Finance Manager to prepare a financial blueprint with the right debt-equity ratio. This suggests a strategic approach to financing expansion, considering a balance between debt and equity. A good cash flow position is crucial for managing debt obligations.