Root El Eook Ltd {"REL'] owns and operates three factories in Manchester, Leeds and Halifax producing ride-on lawn mowers and garden tractors for domestic use in large gardens. The company last year had turnover of 220 million. The company is managed by Steve, the grandson of the founder. Steve owns 25% of the shares in the com parry, while the remaining TEE-t: is split between three other grandchildren. Part 1 lvlost of REL's clients are large retailers in the UK and EU. Two key customers are DELR EIl'I" Ltd and EricoFrance SA, which are both large chains of DPT" and garden centres in the UK and France. The other shareholders are concemed about the business. Although there seems to be plenty of work coming in and the last year has been reasonably protable [Dperating profit was 13 million last year before interest and tax], the company's debt has increased to 15? million from 120 million the year before. Steve has started talking about the need for the other shareholders to invest more money to reduce the debt. Towards the end of last year REL acquired a 3 year license for the manufacture of an robot mower wl'rich cuts grass automatically and which can be controlled by a smartphone app. REL paid the design company, RoboEut Ltd, an 3 million advance fee and invested El million in RoboEut for SUSS: of its shares. REL is owed 12 million pounds for a series of large orders placed by DEER last year. There is also an outstanding dispute about a 242] million consignment for EricoFrance completed in 2015. This has led to payment being withheld while negotiations continue between lawyers and technical specialists. There is a further problem that Steve believes the EricoFrance issue arose from faulty workmanship by a contractor which REL engaged in EDIE- He has refused to pay the contractor who is now threatening legal action- Because this area of work has been suspended. a large stock of materials and supplies has built up at the company's Manchester site. Steve insists that the company needs to have this level of stock for when the dispute is sorted out. He is also reluctant to press his key customers too hard for payment. The other shareholders have approached REL's accountants to review the situation- Requirements: Prepare a report of no more than 1.251] words addressing the following issues