Question

For setting a urea fertilizer plant with a total investment of
RS. 3,650 crore, a company has planned to raise funds from the
following sources:
1. Equity share capital- Rs. 850 crores
2.Loans from financial institutions- Rs. 2,700 crores
3. Working capital loans from commercial banks- Rs. 100 crores
Identify and explain the type of source of funds on ownership
basis, explaining one characteristics of each source.​

Answer 1

Answer:

When total current assets exceeds total current liabilities it refers to.

(A) Gross Working Capital

(B) Temporary Working Capital

(C) Both a and b

(D) Net Working CCapital

For setting a urea fertilizer plant with a total investment of

RS. 3,650 crore, a company has planned to raise funds from the

following sources:

1. Equity share capital- Rs. 850 crores

2.Loans from financial institutions- Rs. 2,700 crores

3. Working capital loans from commercial banks- Rs. 100 crores

Identify and explain the type of source of funds on ownership

basis, explaining one characteristics of each source.

Explanation:

For setting a urea fertilizer plant with a total investment of

RS. 3,650 crore, a company has planned to raise funds from the

following sources:

1. Equity share capital- Rs. 850 crores

2.Loans from financial institutions- Rs. 2,700 crores

3. Working capital loans from commercial banks- Rs. 100 crores

Identify and explain the type of source of funds on ownership

basis, explaining one characteristics of each source.