FIN 354

The management of HOUND AEROSPACE LIMITED, a privately held corporation, was analyzing the company's first-ever negative financial performance. In its recently concluded accounting year ending as on 31st March, 2021, the company has incurred a loss of Rs. 37.13 lakh and was thus forced to borrow Rs. 100 lakh from the banks, resulting in high interest cost. Exhibits I and II contain the current balance sheet and the profit and loss account of the company. The management is concerned that i...