CBSE Class 12 Business Studies 2019 Outside Delhi set 1

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'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 'Foods 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 crores. 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 floatation cost.
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Question : 24 of 44
 
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Explain the instrument that the company may issue for this purpose.
Solution:
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