Baraka Ltd is a quoted company that manufactures photocopier machines etc. Baraka Ltd has always maintained a policy of paying dividends to its ordinary shareholders. The dividends paid to ordinary shareholders by Baraka Ltd for the last five years are as follows:

Year ended 31 March 2011 = Tsh.107.82 million

Year ended 31 March 2012 = Tsh.115 million

Year ended 31 March 2013 = Tsh.161 million

Year ended 31 March 2014 = Tsh.165 million

Year ended 31 March 2015 = Tsh.190 million

The companys draft Statement of Financial Position as at 31st March 2015 reads as follows:

Baraka Ltd

Statement of Financial Position as at 31 March 2015

Assets		TSh. Million	Tsh Million
Non Current assets
Land and Buildings		1,948
Plant and Equipment		317
Fixtures and Fittings		41	2,306
Current Assets
Inventories		251
Trade Receivables		411
Cash and Cash Equivalents		14	676
Total Assets			2,982
Equity and liabilities
Tsh3 Ordinary shares		1,140
4% Tsh10 Preference shares		400
Accumulated profits		381	1,921
Non current liabilities
10% Irredeemable debentures			100
8% Debentures (redeemable 31/03/2017)			500
Current Liabilities		300
Trade payables		161	461
Short term borrowings
Total equity and liabilities			2,982

Notes:

Irredeemable debentures have a market value of Tsh.120 million (cum. interest). The full interest on these debentures for the year ended 31st March 2015 has yet to be paid by Baraka Ltd.

Redeemable debentures have a current market value of Tsh.450 million. Interest on these debentures for the year ended 31st March 2015 has been paid in full.

Baraka Ltd pays Corporation tax at 20%.

No new ordinary shares have been issued since 2003. At 5pm on Wednesday 31st March 2015 Baraka Ltds ordinary shares are priced at Tsh.7.15 (ex dividend), and the preference shares are trading at Tsh.9.40 (cum dividend). The full preference dividend for the year ended 31st March 2015 has not yet been paid.

Baraka Ltds Board of Directors wish to consider a proposed expansion plan which will require an additional TSh.500 million funding for which the companys Financial Director has identified the following potential funding sources: