Company example sentences
The rate of return on shares may vary from year to year depending upon the profits of the company but the rate of interest on debentures is pre-fixed.A MNC is a company that owns or controls production in more than one nation.After customs clearance and payment of dock charges to the port authorities and freight charges to the shipping company, goods are loaded on the ship.A company can redeem its debentures by converting them into new class of debentures or shares.A company raises its capital by means of issue of shares.In such a situation, the company may issue its own debentures to the lenders in addition to some other assets already pledged.Debenture is a written instrument acknowledging a debt under the common seal of the company.The share price of this company shot up by 370 per cent from Rs 34 on May 17, 2004 to around Rs 160 on the BSE recently.Secondly, the company can purchase them when they are available in market at a discount.The total amount of debenture liability is divided by the number of years it is to 114 Accountancy : Company Accounts and Analysis of Financial Statements last and the actual debentures redeemable are identified by means of drawing the requisite number of lots from out of the debentures outstanding for payment.In the case of the companies limited by guarantee, the liability of its members is limited to the extent of the guarantee given by them in the event of the company being wound up.The Tata Iron and Steel Company (TISCO) that came up began producing steel in 191 TISCO was set up at an opportune time.It is a loan capital raised by the company from general public.Purchase in open market: When a company purchases its own debentures through stock exchanges for the purposes of cancellation, such an act of purchasing and cancelling the debentures constitutes redemption of debentures by purchase in the open market.For example, issue of secured debentures may affect the interest of unsecured creditors of the company and may adversely affect their willingness to extend further loans as credit to the company.
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