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Ans 1 The evaluation of the investment policy is dependent on the comparison of percentage increase in sale to the percentage increase

in the current assets. If the percentage increase in the current assets is greater than the percentage increase in the sales the company is following the conservative investment policy, here in Essar oil the percentage increase in the current assets is higher than the sales increase so company is following the conservative policy.

Ans 2 financing policy if the firm dependent on how we finance the short term and long term need. If the short term financing is done by the long term sources then the company is following the conservative approach and if the long term financing is done by short term sources then it is called the

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