Sources of Corporate Finance — Secretarial Practice STD 12 Commerce / Arts — Question

Is the company financially sound?

State anyone, right he will enjoy as a shareholder.

Can the retained earnings be converted into capital?

Rose limited company proposes to issue debenture to the public to raise funds. After discussion, the Board of directors has decided to issue secured, Redeemable non-convertible debentures with a tenure of ten years. Please advise the board on the following matters:

Mr. Satish is a speculator. He desires to take advantage of the growing market for the company’s products and earn handsomely.

ABC Limited is going to redeem its 1000 debentures of ₹ 100 each. Please advise them on the following: Question (a).Which fund should be created by the company to redeem debentures? Question (b). Can debenture trustees consult NCLT if the company is at default?Question (c) What will be the change in the register of debenture holders?

Should the company create a charge on its assets?

What does he receive as a return on his investment?

The management of ‘Maharashtra State Road Transport Corporation’ wants to determine the size of working capital.
Question (a). Being a public utility service provider will it need less working capital or more?
Question (b). Being a public utility service provider, will it need more fixed capital?
Question (c). Give one example of a public utility service that you come across on a day-to-day basis.

A company is planning to enhance its production capacity and is evaluating the possibility of purchasing new machinery whose cost is ₹ 2 crore or has alternative of machinery available on a lease basis.
Question (a). What type of asset is machinery?
Question (b). Capital used for the purchase of machinery is fixed capital or working capital.
Question (c). Does the size of a business determine the fixed capital requirement?