Question

describe the principle methods of raising industrial finance in India​

Answer 1

Answer:

Often industrial companies also get long-term finance through the issues of debentures and bonds. These are debt (loans), instruments. The buyers of those debentures and bonds are the creditors of companies.Since recently they have raised funds through the sale of bonds bearing fixed interest.

Answer 2

The principle methods of raising industrial finance in India are through

Sale of shares

Equity, Debentures and Bonds

Public Deposits

Loans from Banks

Development Finance Institutions

Explanation:

• The money raised from shares is used for financing the projects and it is quite substantial and if the industry has established a credit where it can raise any amount for finance
• Money is also raised in the industry through big financiers or houses to loan them money on interest. This money is raised only when the industry feels that the investment is sure to have returns
• Money is arranged for working capital that provides for the expenses that are necessary in order to manufacture and sell the product or service offered.

To know more about working capital

What is working capital and factors affecting working capital?

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