1.

Shubham Ltd. had decided to expand its production capacity by modernising its plant and machinery at an estimated cost of Rs. 2 crore. It does not have adquate reserve to finance the expansion. Suggest any four sources of finance for the company.

Answer» To expand its production capacity by modernising plant and machinery, the company has to depend on long-term sources of financ. If the company does not have adequate reserve (i.e, retained profits ), it may rely on following sources.:
(i) Debentures (ii) Financial institutions
(iii) Equity shares (iv) Preferencek shares. .


Discussion

No Comment Found

Related InterviewSolutions