Ppt on issue of shares and debentures

© Tata McGraw-Hill Publishing Company Limited, Financial Management 11-1 Concept and Measurement of Cost of Capital.

: where CI 0 = Net cash proceeds from issue of debentures or from raising debt COI 1 + COI 2 +... + COI n = Cash outflow on interest payments in time period 1,2 and so on up to the year of maturity after adjusting tax savings on interest payment. COP/The dividend approach can be used to determine the expected market value of a share in different years. The expected value of a share of the hypothetical firm in Example 6 at the end of years 1 and 2 would be as follows © Tata McGraw-Hill Publishing Company /


Accounts for Joint Stock Companies Prof. N. Ramachandran AIT (Asian Institute of Technology), Bangkok, Thailand & Prof. Ram Kumar Kakani XLRI School of.

by Ramachandran & Kakani “Copyright with Tata McGraw-Hill Publishing Co Ltd, 2005" 47 Capital Reserve  These reserves are created out of capital profits  Arise due to non-operational activities of any business  Examples: Profit on sale of fixed assets, Premium on issues of shares/debentures, and Revaluation of fixed assets/liabilities  As they are not earned through regular business hence these reserves are often not available for distribution among/


Revise Lecture 9. Q1: What is capital market? Revise Lecture 9 Q2: What is primary and secondary markets?

with a credit rating BB or lower issued for leveraged buyouts and other takeovers by companies with questionable credit. The interest rate is higher in order to compensate holders for that risk. A bond rated usually BB or lower because of its high default risk. Also known as a High- yield bond. Capital Market Instruments Debenture: A debenture (also called a note) is an unsecured/


Module :2 COMPANIES ACT 1956 1. What is a company A company is an artificial person created by law. A company means a group of persons associated together.

from public for the purchase of shares and debenture of the body corporate A document shall be called the prospectus if it satisfies two conditions 1. It invites subscriptions to share or debenture or invite deposits 2. The aforesaid invitation is made to the public Provision of law regarding the issue of prospectus A prospectus must be dated and signed by all the directors A copy of prospectus must be accompanied with/


Listing Obligations and Disclosure Requirements Regulations, 2015 Vinod Kothari Vinod Kothari & Company 1006-1009 Krishna Building 224 AJC Bose Road Kolkata.

securities; ▫proposal for voluntary delisting ▫fund raising by way of further public offer, rights issue, IDR, GDR, FCCB, QIPs, Debt Issue, Preferential issue, any other method and for determination of issue price, ▫declaration/recommendation of dividend, ▫issue of convertible securities including convertible debentures or of debentures carrying a right to subscribe to equity shares or the passing over of dividend ▫declaration of bonus securities if included in agenda At least 2 working days in advance AGM/


CAPITAL MARKET. INTRODUCTION A good capital market is essential pre requisite for industrial and commercial development of a country. credit is required.

before getting the securities listed. REQUIREMENTS FOR LISTING Memorandum and Articles of Association Copies of all prospectus or statements in lieu of prospectus Copies of Balance sheet, audited accounts, agreements with promoter, underwriters, brokers Letter of consent from Controller of capital issues, now replaced with SEBI Details of shares and debentures issued and shares forfeited Details of issue of bonuses and dividends declared History of the company in brief. Agreement with managing directors. An/


Copyright © 2012 McGraw-Hill Australia Pty Ltd PPTs to accompany Deegan, Australian Financial Accounting 7e 10-1 Chapter 10 An overview of accounting for.

current or non-current How preference shares and convertible notes are disclosed depends on whether they are of the substance of debt or equity For ‘provisions’ to be liabilities there must be a present obligation to other entities Debentures (bonds) can be issued at par, at a premium or at a discount and interest expense shall be accounted for by use of the effective-interest method in compliance/


Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Financial Accounting 4e by Craig Deegan 9–1 Chapter 9 An overview of accounting for.

to liabilities Liabilities can be classified as current or non- current How preference shares and convertible notes are disclosed depends on whether they are of the substance of debt or equity For ‘provisions’ to be liabilities there must be a present obligation to other entities Debentures can be issued at par, at a premium or at a discount Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs/


Capital Market Meaning The term “Capital Market” refers to the institutional arrangement for facilitating the borrowing and lending of long-term funds.

’s earnings prior to that of the share holders. In liquidation, the debenture holders have a claim on assets prior to that of share holders. Types of debentures 1.Non-convertible Dentures (NCDs) These are pure debentures without a feature of conversion. They are repayable on maturity. 2. Fully convertible debentures ( FCDs) FCDs are converted into shares as per the terms of the issue with regard tp price and time of conversion. The pure FCDs/


FINANCIAL MANAGEMENT. FINANCIAL MANAGEMENT IN EXPANSION OF CAPITAL Expansion of capital implies to broaden the capital base of the enterprise by issuing.

the company partly by raising share capital and partly by depending on long term borrowing. When a company borrows money from the public, it issues certificated under its common-seal acknowledging a debt due by it to its holder. These certificates are called ‘Debentures”. FEATURE OF DEBENTURES 1.Denomination : Debentures in India are issued in different denomination. Smaller public sector companies issue debentures in denomination of Rs. 100 which increases to/


SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Debt Listing Regulations Strengthening Governance through Listing Regulations.

redeemable preference shares. −Capital redemption reserve/debenture redemption reserve. −Net worth. −Net profit after tax. −Earnings per share. −In case of NCRPS – profit for half-year and cumulative profit for the year, free reserves as on half-year, Securities Premium Account balance if NCRPS are due for redemption, track record of dividend payment, breach of covenants under NCRPS and in case fresh issue is planned for redemption of NCRPS, the/


Fiji Institute of Accountants SYMPOSIUM ON THE COMPANIES ACT 2015 Dec 2 2015 TOPIC 4 How does a company organise corporate finance? Presenter: Peter Fulcher.

public, the offer is made with a view to it being accepted by not more than 10 members of the public in any 6 month period; … (d) an offer or invitation issued to existing Members or Debenture Holders of a Company and relates to Shares in, or Debentures of, that Company; (e) an offer or invitation to subscribe for Securities where the amount to be purchased by each/


COMPANIES ACT,2013 By CA PUNKAJ JAIN. TOPICS FOR DISCUSSIONS SHARE CAPITAL & DEBENTURES MEETINGS OF BOARD AND ITS POWERS APPOINTMENT & RENUMERATION OF.

TOPICS FOR DISCUSSIONS SHARE CAPITAL & DEBENTURES MEETINGS OF BOARD AND ITS POWERS APPOINTMENT & RENUMERATION OF MANEGERIAL PERSONNEL MANAGEMENT & ADMINISTRATION APPOINTMENT & QUALIFICATION OF DIRECTORS SHARE CAPITAL & DEBENTURES. Types of Share Capital. Prohibition of Issue of Shares on Discount. Issue of Sweat Equity SharesIssue of Bonus Shares. Debentures TYPES OF SHARE CAPITAL Share Capital Equity Shares With Voting Rights With differential rights Preference Shares Total Share Capital Includes aggregate/


CHARLTONS PROPOSALS FOR THE REFORM OF THE COMPANIES ORDINANCE PROSPECTUS REGIME Presented by : Julia Charlton, Charltons 7 November 2006 Hong Kong Office.

DEFENCE Belief must be founded on all reasonable inquiries. OVERALL DISCLOSURE STANDARD AND PROSPECTUS CONTENTS moved into the body of the CO prospectus regime supplemented by prescribed content requirements for different instruments Overall disclosure standard will be: CHARLTONS 17 DISCLOSURE FOR RIGHTS ISSUES rights issues; and issues of shares or debentures that are uniform with listed shares or debentures. Reduced (rather than negligible) content requirements to apply to prospectuses for: INCORPORATION/


Capital Raising & Deposits – Companies ACT, 2013

Companies (Share Capital and Debentures) Rules, 2014. However, it is important to note that the rules issued under this chapter specifically mention that existing equity shares issued with differential rights will continue to have the rights provided at the time of their issuance Kinds of Issues of share capital (sec. 62, 42, 63, 54, 23 etc.) Right Issue ESOP’s Other Issue’s Private Placement Preferential offer Bonus Issue Sweat Equity Public Issue Rights Issues – sec/


Holding company Accounts and Preparation of consolidated balance sheet

/5) 5,60,000 Cost of control 40,000 Step-2 Cost of control after issue of Bonus shares Number of shares after bonus issue are (20,000 + 1/5 x 20,000) =24,000 Why there is a difference in the cost of control before and after issue of Bonus shares? The Bonus shares are issued out of revenue profits. How does company issue bonus shares? The bonus shares are considered as capitalisation of profits.What do you mean/


ACCOUNTING FOR COMPANY STATEMENT OF FINANCIAL POSITION (EQUITY)

200,000 500,000, Ordinary shares of RM1/each 500,000 700,000 Issued and Paid-Up Capital 100,000, 10%preference shares of RM1/each, fully paid up 100,000 200,000, Ordinary shares of RM1/each, called and paid up to 70sen each 140,000 240,000 Reserves Share Premium 40,000 Retained Profits150,000 Total Shareholders Equity 430,000 Cont. Loan capital (Debenture/Bond)  Companies Act 1965 allowed/


1 THE COMPANIES BILL, 2009 Presentation on the salient features Of new Bill September 26, 2009.

the holding company, subsidiary and associate companies Particulars of the holding company, subsidiary and associate companies Particulars of other securities (other than shares and debentures) Particulars of other securities (other than shares and debentures) 9 Section 82 -Annual Return (Cont…) Particulars of members and debenture holders along with changes therein since the close of the last financial year (Once in 5 years provision deleted) Particulars of members and debenture holders along with changes/


Bond Quotations 6-1 Explanatory Notes For New York and American Bonds

the creation of enduring uncertainties as to the meaning of boiler plate provisions would decrease the value of all debenture issues and greatly impair the efficient working of capital markets. Such uncertainties would vastly increase the risks and, therefore, the costs of borrowing / $15 million in Oak common stock if at least 85% of all debt is tendered to exchange offers. Two classes of Exchange Offers: Holders of 9% convertible notes offered 407 shares of stock for each $1,000 note. (Stock is trading at/


Prospectus According to Section 2(36) of the Companies Act, “ prospectus means any document described or issued as a prospectus and includes any notice,

be specified in the prospectus. Main objects of the company and signatories to the memorandum Share Capital Terms of the Present Issue Particulars of the issue Managerial Personnel Minimum Subscription Opening of the Subscription List Application and Allotment Moneys Particulars of options to subscribe for Shares and Debentures Shares and Debentures issued for Consideration other than Cash Share Premium Underwriters Preliminary Expenses Promoters Details of Business Property Acquired Restriction on Articles/


4-1 Chapter 4 Captial Structure. Types of Financial Instruments 4-2 Warrants (Options) Common Stock Preferred Stock –Blank Preferred –Cumulative Preferred.

of a sale or reorganization of the Railroad and property of said Company, and then only out of any net proceeds of such sale or reorganization which may remain after payment of any liens and charges upon such railroad or property, and after payment of Six Hundred Thousand Dollars to the holders of a series of Debentures known as Class A, issued or to be issued, by said Company, and the sum of/914.85 capital for 25 shares, and was the sole shareholder. Fett was in total control of the business. Fett advanced /


CONTENTS 1.1Overview 1.2Objective 1.3Products/Services Operative account Non operative account Miscellaneous services 1.4Instruments of operative account.

be required to submit a declaration indicating : Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debentures g offered as security Loan against securities Purpose For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i/


Shares.

Dilution of control Method of Raising Capital By issue of prospectus Rights issue of equity shares. Private placement of shares Issuing of securities Filing of offer document Application for listing Issue of securities in dematerialized form Book building: It is a process undertaken by which demand for securities proposed to be issued is elicited and built up and price for such issue is assessed for determination of quantum of such securities to be issued. Issue of share at a discount Issue of share at/


Bombay Stamp Act, Schedule – I Major documents ArticleDocumentRate at present Rs. 4Affidavit20 5(a)Agreement or Memorandum of Agreement (b)If relating.

Loan amount above 10 Cr. Subject to maximum of Rs. 8 Lacs, 0.50 paisa for every hundred rupees + 40% Surcharge on both (a) and (b) Bombay Stamp Act, Schedule – I /of the full amount of debentures to be issued there under, whereby the Company or body borrowing makes over, in whole or in part, their property to trustees for the benefit of the debenture holders. Indian Stamp Act, Schedule – I Major documents 52Proxy empowering a person to vote at the meeting of members Fifteen paise 62Transfer (a)of Shares/


BUSINESS LAW Module I: Companies Act, 1956 Meaning, definition and characteristics of company Type of companies and features of various types of companies.

taken up through an ordinary resolution. a) Rectification of name or adoption of a new name of the company; b) issue of shares at a discount; c) Alteration of share capital; d)Reissue of redeemed debentures; e) adoption of statutory report ; f) passing annual accounts and Bal sheet; g) appointment of auditors and fixing remuneration; h) appointment of first directors; i) appointment of whole time MD; k)appointment of sole selling agents etc 40 Indian Companies Act/


JAIIB/Diploma in Banking & Finance LEGAL & REGULATORY ASPECTS OF BANKING MODULES C & D.

percent above the Bank Rate as on the date of issue of the debentures b.. To carry interest which cannot be more than one and half percent above the Bank Rate as on the date of issue of the debentures c.. To carry interest which should be equal to the Bank Rate as on the date of issue of the debentures d.. Not to carry any interest 82.. XZY bank has decided to/


0 www.charltonslaw.com November 2006  Proposals for the Reform of the Companies Ordinance Prospectus Regime.

than negligible) content requirements to apply to prospectuses for:  rights issues; andissues of shares or debentures that are uniform with listed shares or debentures.  New provision to allow incorporation by reference of information located outside the prospectus INCORPORATION BY REFERENCE 17 SUPPLEMENTAL PROSPECTUS AND RIGHT OF WITHDRAWAL An issuer will have to publish a supplemental prospectus if it becomes aware of a new circumstance that:  has arisen since the prospectus date/


Revised Schedule VI of The Companies Act, 1956 CA. Rajkumar S Adukia B.Com(Hons.) FCA, ACS,MBA, AICWA, LLB,Dip In IFRS(UK) DLL& LW

Investments Non-trade Investments Classification II a) Immovable Properties b) Investments in shares @, $ c) ---- d) Investments in Govt. or Trust securities e) Investments in debentures or bonds @ f) ---- g) Inv. in the capital of the partnership firms h) Balance of unutilized monies raised by issue Non current Assets $- Distinguish class of shares and Partly/Fully paid share @- Investments in subsidiaries, shown separately 45 www.carajkumarradukia.com Investments – Disclosures Revised/


© Tata McGraw-Hill Publishing Company Limited, Financial Management 18 - 1 Chapter 18 Operating, Financial And Combined Leverage.

) at the indifference point N 1 = number of equity shares outstanding if only equity shares are issued N 2 = number of equity shares outstanding if both debentures and equity shares are issued N 3 = number of equity shares outstanding if both preference and equity shares are issued N 4 = number of equity shares outstanding if both preference shares and debentures are issued I= the amount of interest on debentures D P = the amount of dividend on preference shares t= corporate income tax rate D t/


 Right shares and bonus shares.  Section 81 of the Companies Act,1956 provides: Where at any time after the expiry of two years from the formation.

the value of rights of the holders of debentures, convertible fully or partly. Free Reserves that can be used for Issue of Bonus shares :  Surplus in Profit and Loss account.  General Reserve  Dividend equalization reserve.  Capital reserve arising from profit on sale of fixed assets received in cash.  Balance in debenture redemption reserve after redemption of debentures.  Capital Redemption Reserve A/c created at the time of redemption of redeemable preference shares out of the profits/


RECAP LAST CLASS. FINANCIAL SECURITIES & MARKETS DEBENTURE A DEBENTURE ALSO CALLED A NOTE IS AN UNSECURED CORPORATE BOND OR A CORPORATE BOND THAT DOES.

OF INCOME OR EQUIPMENT TO GUARANTEE REPAYMENT OF PRINCIPAL UPON THE BOND’S MATURITY FINANCIAL SECURITIES & MARKETS DEBENTURE ARE MEDIUM TO LONG-TERM DEBT INSTRUMENT USED BY LARGE COMPANIES TO OBTAIN FUNDS A CORPORATION RECEIVES AN ADVANTAGE WHEN IT ISUES DEBENTURES (AS OPPOSED TO ISSUING/ARE THE MOST COMMON FORM AND EXPRESSED IN TERMS OF RS PER SHARE. EXAMPLE: IF A FIRM DECLARES A DIVIDEND OF RS4 PER SHARE, A SHAREHOLDER WITH 100 SHARES RECEIVE A CHEQUE FOR RS400 AS THE SHARE OF THE CASH DIVIDENDS COMMON /


Companies’ Act 1956. Meaning of the company According to section 3(1) (i) of The Companies Act, 1956, “Company means a company formed and registered under.

in private company is 50 No maximum limit of membership in public companies Number of directors Minimum number of directors is two.Minimum number of directors is three Issue of shares to public Not allowed to issue public invitation for investing in the company Public invitation by way of prospectus and public issue of shares, debentures and deposits allowed. Transferabil ity of shares Private company restricts the transfer of shares. The shares cannot be listed in stock exchanges A public/


Financial Management. Introduction Every business enterprise in this world irrespective of its nature and scale of operations needs finance to carry out.

capital to be collected by issuing shares, the number of authorized shares and value of each share is decided. Shares can be floated in the market either to start a new venture or to expand the existing one. 4. Corporate bonds Corporate bonds may be of two types unsecured bonds or debentures and secured bonds. Corporate bonds may be of two types unsecured bonds or debentures and secured bonds. a debenture is a formal document/


Sources of finance. Purpose Factory building Purchase of plant Machinery &equipment Working capital requirements Deserving cases loans are advanced for-

financing/fixed 1.Shares 2.Debentures 3. Public deposits 4. Ploughing back of profits 5.Loan from financial institutions shares Co. can issue various types of shares as- equity shares,preference shares, and deferred shares According to Companies act 1956, a public co cannot issue deferred shares,preference shares carry preferential rights in respect of dividend at a fixed rate and in regard to repayment of capital at the time of winding up of the company. Equity shares do not/


Audit Of Financial Statements 2012-13: REVISED REPORTING REQUIREMENTS & OTHER Important Issues Himanshu Kishnadwala 09 Aug 2013.

excludes “any amount raised by the issue of bonds or debentures secured by the mortgage of any immovable property of the Company or with an option to convert them into shares in the Company provided that in the case of such bonds or debentures secured by the mortgage of any immovable property the amount of such bonds or debentures shall not exceed the market value of such immovable property”. Contractor, Nayak & Kishnadwala/


ONE MARK QUESTIONS WITH ANSWER

to be redeemed after a specified period, they are known as _________________________. Chartered company real owners Issue of shares at a premium Redeemable debentures FILL IN THE BLANKS 171. The forfeited shares can be reissued at a ____________. 172. Every public limited company must compulsorily hold statutory meeting within________ month and not earlier than ______ month form the date to commence business. 173. The interval between/


RECAP IN PREVIOUS LECTURE WE HAVE LEARNT REGISTERED OFFICE PROMOTERS

ordinary shares and par value per share. Description of the business to be undertaken and its prospects. Names, addresses, description and occupations of the proposed or appointed directors , chief executive, managing agent and secretary of the company. Provisions regarding the appointment and remuneration of the above officers of the company. Cont’d 5. Voting rights in the meetings of the company. 6. Numbers and the amount of shares and debentures agreed to be issued. 7. Names, occupation and addresses of/


Capital Market. Institutional arrangement for lending and borrowing of long term funds. Consists of series of channels through which the savings of the.

that have never been previously issued are offered. Both the new and existing companies can raise capital from this market. Facilitate the transfer of funds from willing investors to entrepreneurs setting up new companies or going in for expansion, growth or modernization. Securities dealt in primary market Securities Ownership securities Equity Shares Preferenc e shares No par stock Creditorshi p securities Debentures Ownership securities 1. Equity/


10-1 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 10e by Peirson Slides prepared by Farida Akhtar and Barry Oliver, Australian.

Oliver, Australian National University Summary (cont.) Companies can borrow by directly issuing marketable debt securities, including debentures, unsecured notes and corporate bonds. Project finance is important in Australia — allowing large natural resource and infrastructure projects to be financed with a high proportion of debt. Hybrid securities — convertible notes, convertible and converting preference shares. –All pay fixed dividend (like debt) and convert into ordinary shares at some future date.


CAPITAL MARKET  PROLOGUE  DEFINITION OF CAPITAL MARKET  FEATURES  MAIN ELEMENTS  STOCK MARKET  INDIAN ECONOMY AND CAPITAL MARKET AT A GLANCE  WHY.

such as equity shares, preference shares and debentures. –Function of primary market- ORIGINATION: is the work of investigation and analysis and processing of new issue proposals. UNDERWRITING: is a form of guarantee that the new issue would be sold by eliminating the risk arising from uncertainty of public response. DISTRIBUTION: is the sale of the ultimate investors. CAPITAL MARKET CONTD … 4 Abolition of Controller of Capital Issues in 1992. 4 Constitution of Securities and Exchange Board of India (SEBI/


1 Latest developments in optimal structuring of Inbound Investments including FDI, NRI Investments – FEMA and Taxation issues CA N.C. HEGDE 5 July 2015.

diluted upon conversion of the CCDs.Tax office valued each equity share at Rs. 53,775 as against the aforesaid valuation done under the Capital Issues (Control) Act, 1947 Vinca was involved in the construction development sector and had an FDI eligible township project. Vinca had contractually agreed that the investment by FMO would be used to purchase Optionally Convertible Debentures (OCDs) issued by Amazia Developers/


Implications of some Recent Amendments to the Companies Act 1965 LEE SWEE SENG LLB, LLM, MBA Advocate & Solicitor Notary Public, Trademark, Patent Agent.

of the company) in the shares or debenture of the company, shall be treated as an interest in the contract and proposed contract’ Lee Swee Seng & Co Section 131-Disclosure of interests in contracts, property, offices, etc Illustration to Section 131 (7A): Where interests in shares and debentures shall treated as interest in the contract and proposed contract: Interest of/Petroleum Ltd [1974] AC 821 Held: - The power to issue shares may be exercised for reasons other than raising capital provided those /


Corporations Law. Companies The trading company provides two important factors which have underpinned the success of capitalism: 1. The company provides.

10 years.  Normally interest will be charged at a variable rate.  In addition to interest, banks will also charge fees for the loan establishments and mortgage arrangements What is the difference between debt funding (debentures) & equity Funding (shares)? Equity funds represent funds raised via the issue of shares in return for ownership interest in the company  Shareholders only have a residual claim on asets  Higher rate/


Law on Companies. Companies The trading company provides two important factors which have underpinned the success of capitalism: 1. The company provides.

10 years.  Normally interest will be charged at a variable rate.  In addition to interest, banks will also charge fees for the loan establishments and mortgage arrangements What is the difference between debt funding (debentures) & equity Funding (shares)? Equity funds represent funds raised via the issue of shares in return for ownership interest in the company  Shareholders only have a residual claim on asets  Higher rate/


Financial Appraisal in Project Scanning and Selection Financial Appraisal in Project Scanning and Selection.

bank borrowings is 11.55%. Stock market prices as on 31 st march,2009 Ordinary shares: Rs. 5.6 per share Preference shares: Rs.0.89 per share 12% redeemable debenture: current market rate : Rs.9.5 per share Cost of each sources of finance: 1. Cost of equity: Using the Gordon model and ignoring issue cost k e = D o (1+g)/P o + g = 0.25(1+0.06/


Chapter 5 Corporate Debt Securities. Financing of Corporate Investments:

with a non- detachable warrant. –Like a regular bond, it pays interest and principal, and like a warrant, it can be exchanged for a specified number of shares of stock. Convertible bonds are often sold as a subordinate debenture (convertible debentures). The conversion feature of the bond, in turn, serves as a sweetener to the bond issue. Putable Bonds Putable bonds give the bondholder the right to sell the/


Page 1 Corporate Stocks by Mrs. Belen Apostol. Page 2 Corporate Stocks Long term capital requirements involve accumulation of values or fixed assets.

, with all its rights and attributes. Page 29 Acquisitions, Investments, stock split Happens when a large firm takes control of a small firm. Investment – purchase of an asset or undertaking for any commitment, which involves an initial sacrifice followed by subsequent benefits. Stock split- an issue of new shares to stockholders without increasing total capital. It reduces the average quoted price of shares to promote their marketability Page/


Consolidated Accounts. How can a company be a holding one? Controls the composition of the board of director Controls more than half of the voting power.

provided:(2500000-2000000)*10%=50000 Dr.Provision of Depreciation Cr.P&L Debentures and Preference Shares of Subsidiaries A company will be deemed to be a subsidiary of another company if latter holds more than half of the issued ordinary share capital of the subsidiary. The % of controlling interest is determined by the amount of ordinary shares held instead of preference shares. MI only consists of reserves, ordinary shares and preference shares held by the outside shareholders.In determining/


INVESTMENT MANAGEMENT MODULE 1: MEANIND AND TYPES OF INVESTMENT FACTORS INFLUENCING INVESTMENT SECURITY MARKETS: PRIMARY AND SECONDARY STOCK EXCHANGES:

or banks. 3. Loan syndication 4. Issue Management Involves marketing of corporate securities,like equity shares, preference shares and debentures or bonds by offering them to public. Issue function may be broadly divided into pre-issue management and post-issue management. Preissue management includes: Issue through prospectus marketing and underwriting, pricing of issues. Post issue management includes: collection of application forms and statement of amount received from bankers, screening applications/


1 Introduction to Company Accounting Learning Outcomes:  Understand the concepts and the environments associated with companies  Understand different.

200,000 500,000, Ordinary shares of RM1/each 500,000 700,000 Issued and Paid Up Capital 100,000, 10%preference shares of RM1/each, fully paid up 100,000 200,000,ordinary shares of RM1/each, called and paid up to 70sen each 140,000 240,000 Reserves Share Premium 40,000 Retained Profits150,000 Total Shareholders Equity 430,000 15 Loan capital (Debenture/Bond) Companies Act 1965 allowed/


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