X has surplus cash of ₹100 crores to be deployed in a project. However, it does not require the funds at a time, but need at different intervals stated below: Funds available as on 1st Feb., 2021: ₹100 crores Deployment

Implications of the two options: Option 1: Invest the cash not required within 15 days in bank deposits Mr. X needs ₹25 crores on 7th Feb and ₹10 crores on 14th Feb. These amounts are required within 15 days from 1st Feb. So, ₹35 crores (₹25 + ₹10) cannot be invested in bank deposits under this option. The remaining amount is ₹100 crores - ₹35 crores = ₹65 crores. Mr. X can invest a total of ₹65 crores only. Assuming a rate of return of 6% paid on bank deposits for a period of 31 to 45 days (as the remaining funds are needed on 3rd March and 9th March), the interest earned by him works out to approximately ₹38 lakhs. Option 2: Invest in Treasury Bills of various maturities depending on the fund requirements Mr. X can invest the entire ₹100 crores in treasury bills as treasury bills of even less than 15 days maturity are available. This provides greater flexibility for short-term cash management. Assuming returns on treasury bills in the range of 8% to 9% for the above periods, the return to Mr. X by this deal works out to around ₹62.5 lakhs. Conclusion: Option 2 (investing in Treasury Bills) appears to be more beneficial due to higher returns and flexibility for managing funds for shorter durations.