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NPP

3.1

LONG TERM FINANCING SOURCES AND INSTRUMENTS
bm§J Q>‘© ’$m¶Z|qgJ gmog}g VWm B§ñQ¯>‘|Q²>g

Q.20. What are the purposes for which long-term finance is required?
do CÔoí¶ ³¶m h¢ {OZHo$ {bE XrKm©d{Y ’$m¶Z|g Amdí¶H$ h¡?
OR
What are the factors determining long-term financial requirements?
do H$maH$ ³¶m h¢ Omo XrKm©d{Y ’$m¶Z|{e¶b Amdí¶H$VmAm| H$m {ZYm©aU H$aVo h¢?
OR
Briefly enumerate the sources from which a business can meet its financial requirements?
òmoVm| H$m g§{jßV dU©Z H$s{OE {OZgo EH$ ì¶mnma BgH$s ’$m¶Z|{e¶b Amdí¶H$VmAm| H$mo nyam H$a gH$Vm h¡?
Sources of Finance ’$mBZoÝg Ho$ gmog}g
There are several sources of finance {~OZog Am¡a H$ånZr Ho$ nmg ’$mBZoÝg Ho$ [d{^ÝZ
available to a business and company. The gmog}g CnbãY h¢& {H$gr {d{eîQ> gmog© H$m {gbo³eZ Bg
selection of a particular source is dependent on ~mV na {S>noÝS> H$aVm h¡ {H$ H$ånZr H$s ’$mBZopÝe¶b
the financial strategy pursued by the company,
ñQ´>oQ>oOr ³¶m h¡, Xoe H$s ’$m¶Z|{e¶b H§$S>reZ H¡$gr h¡
the financial conditions prevalent in the
country and the risk factor associated with the VWm Cg H$ånZr Am¡a dmo H$ånZr {Og BÝS>ñQ´>r Ho$ A§VJ©V
company as well as the industry in which the Am°naoQ> hmoVr h¡ Cg BÝS>ñQ´>r go Ow‹S>o hþE [añH$ ’¡$³Q>g©
company operates. ³¶m h¢&
The sources from which a business meets dmo gmog}g {OZgo EH$ {~OZog AnZr ’$mBZopÝe¶b
its financial requirements may be classified as Amdí¶H$VmAm| H$mo nyam H$a gH$Vm h¡ CÝh| {ZåZ{b{IV
under:
T>§J go ³bm{g’$m¶ {H$¶m Om gH$Vm h¡:
(i) According to Period (i) nr[a¶S> Ho$ AmYma na
(a) Long-term sources, viz. shares, (a) bm±J-Q>‘© gmog}O O¡go, eo¶g©, {S>~oÝMg©, bm±J-Q>‘©
debentures, long-term loans etc. bmoZ Am{X&
(b) Short-term sources, viz. advances from (b) em°Q>©-Q>‘© gmog}g O¡go, H$‘{e©¶b ~¢H$m| go ES>dm§g,
commercial banks, public deposits, npãbH$ {S>nm°{OQ²>g, H$ñQ>‘g© go ES>dm§g, Q´>oS> H«o${S>Q>
advances from customers, trade credit etc.
Am{X&
(ii) According to Ownership (ii) Am°Za{en Ho$ AmYma na
(a) Own capital, viz. share capital, retained (a) ñd¶§ H$s H¡${nQ>b O¡go, eo¶a H¡${nQ>b, [aQ>oÝS> A{Zª½g
earnings and surpluses etc. Ed§ gaßbg Am{X&
(b) Borrowed capital, viz. debentures, public (b) ~m°amo H$s J¶r H¡${nQ>b O¡go, {S>~oÝMg©, npãbH$
deposits and loans etc. {S>nm°{OQ²>g Ed§ bmoZ Am{X&

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