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    FINANCE FOR EXECUTIVES (AutoRecovered)

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    suruchi singh
    The document is a finance assignment submitted by Suruchi Kumari to her professor Kislay Kashyap at the National Institute of Fashion Technology in Patna. It discusses long-term sources of corporate finance such as shares, debentures, retained earnings and foreign currency loans. Specifically, it covers shares and debentures in more detail, explaining what they are, how they work, and the different types of debentures such as fixed charge debentures and floating charge debentures. The assignment was submitted in partial fulfillment of Suruchi's post-graduate degree in Fashion Management Studies.

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    FINANCE FOR EXECUTIVES (AutoRecovered)

    Uploaded by

    suruchi singh
    70 views5 pages
    The document is a finance assignment submitted by Suruchi Kumari to her professor Kislay Kashyap at the National Institute of Fashion Technology in Patna. It discusses long-term sources of corporate finance such as shares, debentures, retained earnings and foreign currency loans. Specifically, it covers shares and debentures in more detail, explaining what they are, how they work, and the different types of debentures such as fixed charge debentures and floating charge debentures. The assignment was submitted in partial fulfillment of Suruchi's post-graduate degree in Fashion Management Studies.

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    The document is a finance assignment submitted by Suruchi Kumari to her professor Kislay Kashyap at the National Institute of Fashion Technology in Patna. It discusses long-term sources of corporate finance such as shares, debentures, retained earnings and foreign currency loans. Specifically, it covers shares and debentures in more detail, explaining what they are, how they work, and the different types of debentures such as fixed charge debentures and floating charge debentures. The assignment was submitted in partial fulfillment of Suruchi's post-graduate degree in Fashion Management Studies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    70 views5 pages

    FINANCE FOR EXECUTIVES (AutoRecovered)

    Uploaded by

    suruchi singh
    The document is a finance assignment submitted by Suruchi Kumari to her professor Kislay Kashyap at the National Institute of Fashion Technology in Patna. It discusses long-term sources of corporate finance such as shares, debentures, retained earnings and foreign currency loans. Specifically, it covers shares and debentures in more detail, explaining what they are, how they work, and the different types of debentures such as fixed charge debentures and floating charge debentures. The assignment was submitted in partial fulfillment of Suruchi's post-graduate degree in Fashion Management Studies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    NATIONAL INSTITUTE OF FASHION

    TECHNOLOGY, PATNA

    SESSION-(2020 -22)

    FINANCE FOR EXECUTIVES

    ASSIGNMENT-2

    Submitted to:
    Prof. Kislay Kashyap

    Submitted by:
    Suruchi Kumari

    In partial fulfilment of the Post-Graduate degree


    In Fashion Management Studies (FMS)
    ACKNOWLEDGEMENT

    First and foremost, I would like to express my deep and sincere gratitude to my Professor
    Mr. Kislay Kashyap, for giving me the opportunity to do research and providing
    invaluable guidance throughout this research. His dynamism, vision, sincerity and
    motivation have deeply inspired me. He has taught me the methodology to carry out the
    research and to present the research works as clearly as possible. It was a great privilege
    and honor to work and study under his guidance. I am extremely grateful for what he has
    offered me. I would also like to thank him for his empathy, and great sense of humor.

    I would like to thank NIFT Patna, for providing me the opportunity to work in such a
    respected organization. By this I did lots of research and came to know about so many new
    things.

    This assignment cannot be completed without the effort and cooperation from my family and
    friends have made valuable suggestions on this assignment without them it could not possible.

    Finally, my thanks go to all the people who have supported me to complete the research
    work directly or indirectly.
    CONTENT

    S.NO. TOPIC Page


    no.
    1. 5

    2. 6

    3 7

    4. 9

    5. CONCLUSION 23

    6. REFERENCES 24
    Shares and debentures as sources of long-term corporate finance

    LONG-TERM SOURCES OF FINANCE:

    Long term financing means capital requirements for a period of more than 5 years to 10,15,20 years
    or maybe more depending on other factors. Capital expenditures in fixed assets like plant and
    machinery, land and building etc of business are funded using long term sources of finance. Part of
    working capital which permanently stays with the business is also financed with long term sources of
    funds.
    Long term financing sources can be in the form of
     Share capital
     Debenture
     Retained earning
     Venture funding
     Asset securitization
     Foreign currency loan etc.

    SHARE CAPITAL

    DEBENTURE

    It is an instrument used by a lender such as bank when providing capital to companies and individual.
    It enables the lender to secure loan repayments against the borrower’s assets even if they default on
    the payment.
    A debenture can grant a fixed charge or a floating charge.

    How it works?

    It often issued when a corporation or government needs to raise capital for a specific purpose. When it
    is issued it can offer a floating or fixed interest coupon rate for investors in the case of corporate
    debentures, interest payment may be paid ahead of shareholder dividends. When it’s time to repay the
    principal on debenture investments, issuers can choose between lump-sum payments or installments.

    Companies may allow investors to convert their debenture into shares of stock. Convertible
    debentures may be attractive to investors who are interested in eventually owning an equity stake in
    the company.

    TYPES OF DEBENTURES

    It is mainly of two types:

    1. Fixed charge debenture (legal charge): It refers to a charge put against a fixed asset which is not
    likely to change. The fixed assets covered by such a debenture include property, fixtures machinery
    or vehicles.
    2.

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