Answer Posted / nishi rani

Bonds and Debentures

Debt instruments can be further classified into the
following categories based on the different characteristics
with which they are floated in the market:

# Debentures
# Bonds


Debentures
Main characteristics

* They are fixed interest debt instruments with varying
period of maturity.
* Can either be placed privately or offered for
subscription.
* May or may not be listed on the stock exchange.
* If listed on the stock exchanges, they should be rated
prior to the listing by any of the credit rating agencies
designated by SEBI.
* When offered for subscription a debenture redemption
reserve has to be maintained.
* The period of maturity normally varies from 3 to 10
years and may also be more for projects with a high
gestation period.

Bonds may be of many types - they may be regular income,
infrastructure, tax saving or deep discount bonds. These
are financial instruments with a fixed coupon rate and a
definite period after which these are redeemed. The
fundamental difference between debentures and bonds is that
the former is normally secured whereas the latter is not.
Hence in general bonds are issued at a higher interest rate
than debentures. This avenue of financing is mainly availed
by highly reputed corporate concerns and financial institutions.

The three main kinds of instruments in this category are as
follows:

# Fixed rate
# Floating rate
# Discount bonds

* The bonds may also be regular income with the coupons
being paid at fixed intervals or cumulative in which the
interest is paid on redemption.
* Unlike debentures, bonds can be floated with a fixed
interest or floating interest rate. They can also be floated
without interest and are called discount bonds as they are
issued at a discount to the face value and an investor is
paid the face value on redemption.and if offered for longer
terms are known as deep discount bonds.
* The main advantage with interest bearing bonds is the
floating interest rate, which is stipulated based on certain
mark-up over stock market index or some such index.
* From the point of view of the investor bonds are
instruments carrying higher risk and higher returns as
compared to debentures.
* This has to be kept in mind while floating bond issues
for financing purposes. With the current buoyancy in capital
markets for equity instruments the demand for corporate
bonds is low.

WHAT IS GENERAL LEDGER HOW MANY TYPES OF IT, AND WHEN GL WILL USE IN WHICH SITUATIONS DESCRIBE ME

2043

---

You are given the following information in respect of a company: Fixed cost –Rs.13,000 Variable cost –Rs.14,000 Net profit –Rs.3,000 Net sales-Rs.30,000 Find out: a>BEP b>The profit for sales volume of Rs.50,000 c>The volume of sales to make a profit of Rs.10,000

1982

---

Why it is necessary to use SAP in an industry? & What is the difference from other advance accounts software like Tally ERP 9? What is the importance of using GAAP for best management decission or why GAAP using by Top Management?

2055

---

What is SOX

2137

---

How many types we are received funds in business purpose

2378

---

Give the balance sheet schedules ,what is differe tax, GIVE THE RATES OF DIFFERED TAX FOR THE YEAR 2008-09

2230

---

I have a existing Oracle applicttions and need to bring one of the new business on it. The new business will use GL, AP and FA. We will use existing COA. This business will have 3 sets of books (1- tax book, from April to March; 2- Primary book, from July to June; 3- Reporting book, from July to June); All books will have same currency; HOW DO I TRANSFER DATA FROM PRIMARY BOOK INTO TAX AND REPORTING BOOKS EVERY MONTH OR ON WEEKLY? IS THERE ANY STANDARD ORACLE PROCESS WHICH CAN BE SCHEDULED? THE REPORTING BOOK WILL HAVE DIFFERENT DEPRECIATION METHOD SO HOW DO I NOT TRANSFER DEPRECIATION FROM PRIMARY TO REPORTING BOOK AND DO SEPERATE DEPRECIATION IN REPORTING BOOK FOR THE SAME ASSET THAT IS ALSO IN PRIMARY AND TAX BOOK?. HOW DO I APPROACH ON SETTING THESE NEW SETS OF BOOKS? Thanks, KK

2096

---

How can someone prepared for Syndicate Bank Interviw? Do interviewer going to ask any aptitude questions or will it be similar to other PO Interviews? Answers solicited..

1952

---

Distinguish value andPrice

1935

---

purchase car from toyota innova 50000 cheque from one firm and 449893 from other firm.... and 1350000 loan saction from kotak mahindra.....how can entry make with interest

1994

---

Hi friends can you send me the Accounting Interview questions with a interview experienced questions please

2157

---

Please explain a Representative Personal Account.

2082

---

What problems might be encountered if there were no accounting standards?

2975

---

what are the importance accounting entries for AP and AR process in interview..

1638

---

Which document should be attached with purchse & sales invoice?

1899

---