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Between equity shares and debentures which is preferable for raising additional long term capital for a manufacturing company?
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What is the difference between manufacturing and banking?
The banking has something to do with .... Money saving . But manufacturing is for money but has to separating money and making money
Types of debentures in company law?
What is a Debenture?A Debenture is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrument and repays the principal normally, unless otherwise agreed, on maturity.These are long-term debt instruments issued by private sector companies. These are issued in denominations as low as Rs 1000 and have maturities ranging between one and ten years. Long maturity debentures are rarely issued, as investors are not comfortable with such maturitiesDebentures enable investors to reap the dual benefits of adequate security and good returns. Unlike other fixed income instruments such as Fixed Deposits, Bank Deposits they can be transferred from one party to another by using transfer from. Debentures are normally issued in physical form. However, corporates/PSUs have started issuing debentures in Demat form. Generally, debentures are less liquid as compared to PSU bonds and their liquidity is inversely proportional to the residual maturity. Debentures can be secured or unsecured.What are the different types of debentures?Debentures are divided into different categories on the basis of: (1)convertibility of the instrument (2) SecurityDebentures can be classified on the basis of convertibility into:· Non Convertible Debentures (NCD): These instruments retain the debt character and can not be converted in to equity shares· Partly Convertible Debentures (PCD): A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.· Fully convertible Debentures (FCD): These are fully convertible into Equity shares at the issuer's notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company.· Optionally Convertible Debentures (OCD): The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.On basis of Security, debentures are classified into:· Secured Debentures: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors· Unsecured Debentures: These instrument are unsecured in the sense that if the issuer defaults on payment of the interest or principal amount, the investor has to be along with other unsecured creditors of the company.
Difference between bonds and debentures?
A debunture is an unsecured loan certificate issued by a company, backed by general credit rather than by specified assets. A bond is a debt investment in which an investor loans money to an entity that borrows the funds at a fixed interest rate.
What is the Difference between gross profit and fluctuating profit?
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
What is the difference between a contribution approach income statement and a traditional approach income statement?
Under the contribution approach (variable costing), all variable expenses (both manufacturing and non-manufacturing) are deducted first from sales to arrive at contribution margin. Fixed costs (both manufacturing and non manufacturing) are deducted from contribution margin to arrive at net income before taxes. Under traditional approach (absorption costing), all the manufacturing costs (both fixed and variable) are deducted from sales to arrive at gross profit (margin). Non-manufacturing (Selling and administrative) costs are then deducted from gross margin to arrive at net income before taxes.
What is the difference between bearer debentures and convertible notes?
Differentiate between a bearer debentures and convertible notes
What is tetrex fabric?
which is preferable between tetrex and cotton overalls
What is the difference between mechanical engineer and manufacturing engineer?
Manufacturing is a specific branch of mechanical engineering that deals with manufacturing processes.
What is the difference between Manufacturing Design and Design for Manufacturing?
Manufacturing design. where the IP is owned by the Brand owner. Design For manufacturing. where the design is owned by the Manufacturer or ODM
What is the difference between manufacturing and services?
Manufacturing produces goods. Services provide services.
Did the war between the US and Britain point out the need for American manufacturing?
The war between the US and Britain pointed out the need for American manufacturing by intensifying the tension between the two countries and the war over monopolizing the manufacturing industry.True
What is the manufacturing difference between product analysis and heat analysis?
manufacturing process of steel plates difference between heat and product analysis ?
What are the differences between books of accounts of a manufacturing enterprise and a merchandising enterprise?
difference between services enterprise and merchandising enreprise and manufacturing enterprise
Describe the difference between additional and standard precaution?
describe the difference between additional and precaution?
What are the differences between car manufacturing in 1930s and car manufacturing in 2000s?
speed, safety and look difference
What is the difference between hospitality and manufacturing?
Manufacturing is making something, hospitality is the action of making people welcome.
What is the difference between Fabrication and Manufacturing in an Industry?
MANUFACTURING VS FABRICATION: single product is obtained by manufacturing and group of product which result is single obtained by fabrication.
