As a step towards preparing itself for the increased scale of operations, Amar proposes to invest in certain key plant and machinery worth about Rs. 50 lakhs, which would enable higher operational flexibility as well as reduce the extent of subcontract work, thereby increasing margins. This is proposed to be financed through a loan of about Rs. 30 lakhs and a contribution from the proprietor to the extent of Rs. 20 lakhs. The company is also proposing to approach banks for a working capital loan of about Rs. 50 lakhs, to finance the increased working capital requirement concurrent with increased scale of operations; and bank guarantees to the extent of Rs. 20 lakhs. Amar has an excellent credit record and has been banking with Punjab National bank, Oriental Bank of Commerce and Indian Bank, in the past.