Question

NTB Bearing Ltd. was the first company to
manufacture needle roller bearing in India. For over
40 years. NTB Bearing Ltd. has pioneered the
leading edge of bearing technology, and today over
most of the vehicles on Indian roads run on NTB
parts. The directors of NTB Bearing Ltd. want to
modernize their plant and machinery with latest
technology at the cost of Rs. 50 lakhs. They
approached an organisation which will not only
provide financial assistance but also best technical
advice from where the machinery can be imported.
On the basis of aforesaid information about NTB
Bearing Ltd. answer the following questions:
(a) Identify the source of finance used by
company to meet its funds requirement.​

Answer 1

Answer:

the answer is loan from financial institutions or loan from commercial bank

Answer 2

The source of finance used by the company to meet its funds' requirements is "Development bank."

Features of "Development bank":

• Development banks are financial institutions that provide long-term financial assistance to the public and private sectors.
• Development banks operate with the main aim of serving the public interest instead of earning profits.
• They also provide additional services such as doing a market evaluation, providing managerial and technical assistance to the clients.
• Acquiring funds from these financial institutions adds up to the reputation of the firm.
• They are a reliable source of finance even during the period of depression in the economy.