Subham Ltd. Has decided to exonad its proeduction capacity by modernising its plant and machinery at an estimated cost Rs. 2 corore. IT does not have adequate reserves to finace the expansion. Suggest any four source for the company.

An established company has decided to expand its production capacity. It does not have adequate reserves to finance the expansion. Suggest with reasons any two other sources of finance for the company.

A reputed car manufacturing company in NCR is facing the problem of decline in its market share due to its internal mismanagement. Therefore it has planned to increase its production capacity at its Gurgaon plant by manufacturing low period eco-friendly cars for price senstive consumers and introducing new models with added features for quality conscious consumers. For this the company issues shares to the public and raises 150rs crore. The company purchases more machinery required to increase production. (a) Identify the type of plan the company is preparing. (b) State the steps involved in this plan quoting the lines from the above case.

Bharat Ltd. had an authorised capital of Rs. 20,00,000 divided into 2,00,000 equity shares of Rs. 10 each. The company issued 1,00,000 shares and the divident per share was Rs. 2 for the year ended 31st March, 2008. The management of the company decided to export its products to the neighbouring countries Nepat, Bhutan, Sri Lanka and Bangladesh. To meet the requirement of additional funds, the financial manager of the company put up the following three alternatives before its Board of Directors: (i) Issue 54,000 equity shares. (ii) Obtain a loan from Import and Export Bank of India. The loan was available at 12% per annum interest. (iii) To issue 9% Debentures at a discount of 10% . after comparing the available alternatives the company decided on 1st April, 2008 to issue 6,000, 9% Debentures of Rs. 100 each at a discount of 10% . These debentures were redeemable in four instalments starting from the end of third year. The amount of debentures to redeemed at end of third, fourth, fifth and sixth year was as follows: {:("Years",,,"profit Rs."),(III,,,"1,00,000"),(IV,,,"1,00,000"),(V,,,"2,00,000"),(VI,,,"2,00,000"):} Prepare 9% Debentures Account for the years 2008-09 to 2013-14.