The case concerns itself with the establishment of a suitable policy for purchase and stocking of the company's three major raw materials: asbestos fibre, sheet making, and pipe making felts, following the credit squeeze and the Tandon Committee's stipulated norms for inventory. The company is importing all three items, and issues rising out of import procedures, availability in the world market, etc, are brought out. Data on past receipts, consumptions and stocks show the uncertainty in receiving the supplies. The case also provides a focus on issues involved in the company's attempts at developing indigenous sources of supply for these materials.