Question

LUMCU Cuisi
6
Q20 Careful Systems Corporation Ltd. is one of the largest suppliers of road vehicles
electronic and mechanical security system. The Co. provides mechanical and
electronic security system, door system, electronic controllers for electric vehicles
and plastic interiors across the globe. The Co. plans to set up a new unit to
manufacture die casting parts and high class surface finishing parts for auto and
consumer durable industry.
The Co. needs Rs 70 crores as additional capital to fund its new unit. Atul Ruia , the
CEO of the Co. wanted to raise funds through issue of equity shares. On the other
hand, the Finance manager Nimi Sukhdev said that the public issue may be
expensive due to mandatory and non-mandatory expenses. Therefore, it was decided
to borrow from a special financial institution.
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On the basis of the above information:
(a)Identify and explain the source of fund used by the co, to its new unit.
(b)State any 2 merits of raising finds through the source specified in part (a)
(C)State any 2 demerits of raising finds through the source specified in part (a)
[2+2+2]​

Answer 1

Answer:

Here is your answer

Plastics are a wide range of synthetic or semi-synthetic materials, that usually use a polymers as a main ingredient. The plasticity during production makes it possible for plastic to be moulded, extruded or pressed into solid objects of various shapes, making them an adaptable material for many different uses.