Q.State any four sources of industrial finance available to a company.

A company can raise long-term and short-term funds from a mix of its own resources and external borrowing. …

Industrial enterprises raise finance from a combination of owned and borrowed sources, matched to whether the need is for long-term fixed capital or short-term working capital.

1. Equity shares: Capital raised by issuing ownership shares to the public or promoters; carries no fixed repayment obligation but dilutes ownership.
2. Retained earnings: Profits not distributed as dividend but reinvested in the business; a cost-free internal source of long-term capital.
3. Debentures/bonds: Fixed-interest debt instruments issued to investors, repayable on maturity, giving the holder no ownership stake.
4. Term loans: Medium- to long-term loans from commercial banks or development finance institutions such as IDBI, IFCI, or SIDBI, typically used for fixed-capital investment such as plant and machinery. …

Students sometimes list 'bank loan' and 'term loan' as two separate sources when they are essentially the same category of borrowed finance; sources should be distinct in kind (owned vs. borrowed …