Foods India Ltd.' is a company engaged in the production of packaged juice since 2010. Over this period, a large number of competitors have entered the market and are putting a tough challenge to 'Food India Ltd.' To face this challenge and to increase its market share, the company has decided to replace the old machinery with an estimated cost of 100 crore. To raise the finance, the company decided to issue 9% debentures. The Finance department of the company has estimated that the cost of issuing the 9% debentures will be 10,00,000. The company wants to meet its flotation cost.
Explain the instrument that the company may issue for this purpose.

Explanation

The company can use commercial paper. For explanation, refer to text on Page 307 of Chapter-10.