Study Of

Sources of Funds

Of
Reliance Industries Limited
Infosys Technologies Limited
ICICI Bank Limited
“You have to spend money to make money”

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 Why Business Needs Funds

Start Up Capital

Working Capital

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 Long Term Funds
Owner’s Fund
Equity Shares
Preference Shares
Retained Earnings

Debt
Debenture/Bonds
Long Term Loans
Hybrid Instruments
Hire & Lease Financing
Venture Capital

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 Short Term Funds

BOD
Cash Credit
Trade Credit
Short Term Loans
Commercial Paper
Certificate of Deposit

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 Reliance Industries Limited
In Rs.,Crore
Owner’s Funds
Equity Share Capital 1,573.53
Reserves & Surplus 1,12,945.44
Total 1,14,518.97

Loan Funds
Secured Loans 10,697.92
Unsecured Loans 63,206.56
Total 73,904.48

Current Liabilities 45,675.71

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 Observation

Total Debt Equity Ratio 0.65:1

Less Tax Exemption

Dilution Of Authority & Decision making Process

Issued Bonus Share In Oct.09 As 1:1 Ratio

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 Infosys Technologies Limited
In Rs.,Crore

Owner’s Funds
Equity Share 286.00
Reserves & Surplus 17,523.00
Total 17,809.00

Loan Funds -----------

Current Liabilities 3,342.00

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 Observation

Decision Making Process is Too Difficult

No Tax Exemption

Steps To Maintain Ratios

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 ICICI Bank Limited
In Rs.,Crore
Owner’s Funds
Equity Share Capital 1,113.29

Preference Share Capital 350.00

Reserves & Surplus 48,419.73
Total 49,883.02

Loan Funds
Unsecured Loans 2,18,347.82

Current Liabilities 43,746.43

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 Observation

Total Debt Equity Ratio 4.38:1

More Interest Expenditure

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 Conclusion

Businesses’ Funds Strategy

Different sources of funds

Company To Company
Industries To Industries

Have To Maintain Ratio Accordingly

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By:-
Balkrushna A.
Mitranshu Kumar
Roshan
Ankur K.
Ankita D.
Anwesha

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