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Fmppt 100507015843-phpapp01

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Fmppt 100507015843-phpapp01

  1. 1. LOGO •EQUITY SHARE CAPITA •PREFERENCE SHARE CA •RETAINED EARNING
  2. 2. SOURCES OF FINANCE SHORT TERM LONG TERM TRADE CREDITS CREDIT FROM SUPPLIERS ADVANCE FROM DEALERS PURCHASE OF FIXED AS FUNDING EXPANSIONS DIVERSIFICATIONS
  3. 3. LOGO OWNED FUNDS BORROWED FUNDS SHARES RETAINED EARNING LONG TERM FINANCE
  4. 4. SHARES • A SHARE HAS BEEN DEFINED BY THE INDIAN CO ACT, 1956 • SHARE MEANS SHARE IN THE SHARE CAPITAL O COMPANY & INCLUDES STOCK EXCEPT WHERE DISTINCTION BETWEEN STOCK & SHARE IS EXP OR IMPLIED. • THE LIABILITY OF THE SHAREHOLDER IS LIMIT EXTENT OF THE FACE VALUE OF THE SHARES.
  5. 5. A SHAREHOLDER- MEMBER OF THE COMP PRIVATE COMPANY PUBLIC COMPANY MINIMUM MAXIMUM 2 50 7 UNLIMITED NUMBERS OF MEMBERS (MEMBERSHIP ) IN CASE OF A COMPANY
  6. 6. AUTHORISED CAPITAL ISSUED CAPITAL UNISSUED CAPITAL SUBSCRIBED CAPITAL UNSUBSCRIBED CAPITAL CALLED UP CAPITAL UNCALLED CAPITAL RESERVE CAPITAL AID UP CAPITAL CALLS IN ARREARS (UNPAID CAPITAL)
  7. 7. SHARES QUITY SHARES PREFERENCE SHARE
  8. 8. EQUITY SHARES •RISK BEARING CAPITAL •NO FIXED RATE OF DIVIDEND •RIGHT TO VOTE •OWNERS OF THE COMPANY
  9. 9. RIGHTS OF EQUITY SHAREHOLDERS •THE RIGHT TO RESIDUAL INCOME •RIGHT OF CONTROL •PRE-EMPTIVE RIGHT •RESIDUAL CLAIMANTS OVER ASSET
  10. 10. ADVANTAGES OF EQUITY SHARES TO THE ISSUING COMPANY- •PERMANENT SOURCE OF CAPITAL •NO FIX DIVIDEND •CREDITWORTHYNESS OF THE COMP
  11. 11. DISADVANTAGES OF THE EQUITY SHARE TO THE ISSUING COMPANY- •NOT A TAX-DEDUCTIBLE EXPENSE •FLOATATION COST IS HIGHER •OVER CAPITALISATION •DILUTION OF CONTROL
  12. 12. ADVANTAGES OF EQUITY SHA TO THE SHAREHOLERS- •HIGHLY PROFITABLE SHRES •OWNERS OF THE COMPANY •LIMITED LIABILITY
  13. 13. DISADVANTAGES OF EQUITY SHAR TO THE SHAREHOLERS- •RISK CAPITAL •CONTROL OVER THE MANAGE •FLUCTUATION
  14. 14. PREFERENCE SHARES •PREFERENCE SHARES ARE THOSE SHARES W PRIORITIES IN THE PAYMENT OF DIVIDEND AS THE REPAYMENT OF THE CAPITAL •PREFERENCE SHAREHOLDERS ARE ENTITLED A FIXED RATE OF DIVIDEND BEFORE THE DIV PAID TO THE EQUITY SHARESHOLDERS.
  15. 15. TYPES OF PERFERENCE SHARES 1.PARTICIPATING AND NON PARTICIPATING S 2.REDEEMABLE AND IRREDEEMABLE SHAR 3.CUMULATIVE AND NON CUMULATIVE SHA 4.CONVERTIBLE AND NON CONVERTIBLE SH
  16. 16. FEATURES OF PREFERENCE SHARES- •HYBRID SECURITY •PREFERENCIAL RIGHTS •PREFERENCIAL RIGHT ON FIXED DIVIDENDS. •DEMAND UNPAID ARREARS • VOTING RIGHTS •CONVERSION OF SHARES •RIGHT TO SHARE SURPLUS PROFITS
  17. 17. ADVANTAGES OF OWNED FUNDS •INDICATES THE OWNERS STAKE AND •CUSHION FOR RAISING BORROWED F •PROPOTION •NO OBLIGATION •SAFETY TO THE LENDERS •RIGHT TO ACTIVE PARTICIPATION
  18. 18. RETAINED EARNINGS INSTEAD OF DISRTIBUTING THE ENTIRE PRO SHAREHOLERS, COMPANY RETAINS SOME PR THE PURPOSE OF- 1.ACCUMULATIONS OF EARNINGS 2.INVESTMENT IN FIXED ASSETS 3.TO MEET WORKING CAPITAL NEEDS
  19. 19. MERITS OF PLOUGHING BACK OF PROFITS TO THE COMPANY- •ECONOMICAL •EFFICIENCY AND PRODUCTIVITY •CONFIDENCE OF SHAREHOLDERS •ENHANCES CREDITWORTHYNESS •LESS FINANCIAL RISK •REPAYMENTS OF DEBENTURES AND T
  20. 20. •REDUCES THE RELIANCE •HELPS EXPANSION AND DIVERSIFICATION •HELPS AUTOMATION AND MODERNISATION •USED TO MEET WORKING CAPITAL NEEDS •FOLLOWS A STABLE DIVIDEND POLICY •FREEDOM TO TAKE THEIR OWN
  21. 21. TO THE SHAREHOLDERS •APPRECIATION IN SHARE VALUES •BONUS SHARES •REGULAR DIVIDENDS •SECURITY VALUE TO THE SOCIETY •INCREASES CAPITAL FORMATION •HELPS SPEEDY DEVELOPMENT •BENEFITS TO THE CONSUMERS •SOCIAL WELFARE ACTIVITIES
  22. 22. DEMERITS OF PLOGHING BACK OF PROF •DANGER OF MANIPULATION •CHANCES OF OVER CAPITALISATION •IMPROPER USE OF RETAIN EARNINGS •NO SHARE OF DIVIDEND •LEAD TO EXCESSIVE SPECULATIONS •LEAD TO MORE DEMENDS FROM EMPLOYE •CONCENTRATION OF ECONOMIC POWER IN
  23. 23. DETERMINANTS OF INTERNAL FINANCIN •TOTAL EARNING OF THE ENTERPR •TAXATION POLICY OF THE GOVER •DIVIDEND POLICY •GOVERNMENT ATITUDES AND CON •OTHER FACTORS
  24. 24. MERITS OF INTERNAL FINANCING ADVANTAGES RO THE COMPANY- •BEST AND CHEAPEST SOURCE OF FI •STABLE DIVIDEND POLICY •INCREASE IN MORALE OF MANAGE •SAFETY FROM TRADE CYCLES
  25. 25. ADVANTAGES TO THE SHAREHOLDER •INCRAESE IN THE VALUE OF THE SHARE •INCREASE IN EQUITY •INCREASE IN THE COLLATERAL VALUE ADVANTAGES TO THE SOCIETY •CAPITAL FORMATION •INCRAESE IN SOCIAL WELFARE
  26. 26. DEMERITS OF INTERNAL FINANCING •DANGER OF MONOPOLY •FEAR OF OVER-CAPITALISAT •LOSS OF SHAREHOLDERS
  27. 27. Group members- Ankita Joshi- 210 Anuja Rane- 231 Shradhangi Date- 208 Ranal Nair- 223 Prathamesh Kulkarni- 218 Praful Shetty- 240
  28. 28. THANK YOU

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