Kay Ltd., is a company manufacturing textiles. It has a share capital of ₹60 lakhs. In the previous year its earning per share was ₹0.50. For diversification, the company requires additional capital of ₹40 lakhs. The company raised funds by issuing 10% Debentures for the same. During the year the company earned profit of ₹ 8 lakhs on capital employed. It paid tax @40%.