Agro Equipment Ltd. is a successful company engaged in manufacturing and marketing agricultural equipment in India. The company is family-owned and is headed by a qualified engineer and a member of the family who is the Managing Director (MD). Though family-owned, the company employs qualified professionals and is soundly managed. Being a player catering to the agri-sector, the company's products are in good demand and its profitability is sound. The family owners are keen on new products and expansion. In the past, they have been reluctant to borrow except for genuine working capital requirements on short term basis. The MD has had various discussions with the in-house professionals regarding raising capital, both to meet their long term and short term (working capital related) requirements, directly from the market. Assuming you are the CFO, explain to the board members the various instruments that the company could issue in order to raise capital from the financial markets.

Agro Equipment Ltd. is a successful company engaged in manufacturing and marketing agricultural equipment in India. The company is family-owned and is headed by a qualified engineer and a member of the family who is the Managing Director (MD). Though family-owned, the company employs qualified professionals and is soundly managed. Being a player catering to the agri-sector, the company's products are in good demand and its profitability is sound. The family owners are keen on new products and expansion. In the past, they have been reluctant to borrow except for genuine working capital requirements on short term basis. The MD has had various discussions with the in-house professionals regarding raising capital, both to meet their long term and short term (working capital related) requirements, directly from the market. Assuming you are the CFO, explain to the board members the various instruments that the company could issue in order to raise capital from the financial markets.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash And Marketable Securities

Section: Chapter Questions

Problem 69RSCQ

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