As Per The Indian Sebi Law, Company Engaged In The Business Of Mutal Fund Which Involved Pooling Of The

Fund From The Investor And Invest In Diversified Instrument To Lessen The Exposure Towards The Risk.mutal Fund Can Be Established By Formation Of Trust As Per The Law And This Trust Establish The Asset Managment Company(amc) Which Take Care Of The Investment Decision .so Every Amc Works Under A Trust.

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.

CRR Rate in India Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks

Relation between Inflation and Bank interest Rates Now a days, you might have heard lot of these terms and usage on inflation and the bank interest rates. We are trying to make it simple for you to understand the relation between inflation and bank interest rates in India. Bank interest rate depends on many other factors, out of that the major one is inflation. Whenever you see an increase on inflation, there will be an increase of interest rate also. What is Inflation? Inflation is defined as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are less Goods and more buyers, this will result in increase in the price of Goods, since there is more demand and less supply of the goods.

Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks are always happy to lend money to RBI since their money are in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of the banking system. Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo rate our banks adjust their lending or investment rates for common man.

Basing on the nature of the asset the depreciation will be calculated.there are different methods of depreciations. they are:

1) 2) 3) 4) 5)

Straight line method, Diminishing value method, Sinking fund method, Annuity method, Depletion method. etc.

Companies may choose to classify business units as cost centres, profit centres, or investment [1] centres. There are some significant advantages to classifying simple, straightforward divisions as cost centres, since cost is easy to measure. However, cost centres create incentives for managers to underfund their units in order to benefit themselves, and this underfunding may result in adverse consequences for the company as a whole (for example, reduced sales because of bad customer service experiences).

Operating Lease. An operating lease is particularly attractive to companies that continually update or replace equipment. They want to use equipment without ownership, but also want to return equipment at lease-end and avoid technological obsolescence. An operating lease usually results in the lowest payment of any financing alternative and is an excellent strategy for bypassing capital budgeting restraints. It is typically qualifies for off-balance sheet treatment and can result in improved Return On Asset (ROA) due to a lower asset base. It can also result in higher reported earnings in the early years of the lease.

Finance Lease. A finance lease is a full-payout, non-cancelable agreement, in which the lessee is responsible for maintenance, taxes and insurance. Finance leases are most attractive in cases where the lessee wants the tax benefits of ownership or expects the equipment's residual value to be high. These leases are structured as equipment financing agreements with residuals up to 10 percent. The lessee purchases the equipment upon lease termination at a preagreed amount. The term of a finance lease tends to be longer, nearly covering the useful life of the equipment.
In accounting, current liabilities are often understood as all liabilities of the business that are to be settled in cash within thefiscal year or the operating cycle of a given firm, whichever period is longer. A more complete definition is that current liabilities are obligations that will be settled by current assets or by the creation of new current liabilities.

An operating cycle for a firm is the average time that is required to go from cash to cash in producing revenues.
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There are broadly two resources for capital. 1) Internal resources 2) External resources. Plugging back of profits will comes under Internal resources. External sources can be classified in to Own capital and debt capital. The combination of debt and own capital is called capital structure. Issue of shares will fall under own capital Issue of debentures, Company deposits will fall under debt capital. The market value of a quoted company, which is calculated by multiplying its current share price (market price) by the number of shares in issue is called as market capitalization. E.g. Company A has 120 million shares in issue. The current market price is Rs. 100. The market capitalisation of company A is Rs. 12000 million.