1. In order to issue the shares at a price less than the face value, the company has to get permission from the relevant authority. For seeking permission, they should call and upon a general meeting and discuss and authorize the matter in that meeting.
2. There is a cap on the rate of discount. A company cannot issue any shares at more than 10% discount.
3. The company should issue the shares within 60 days of receiving permission from the relevant authority. In certain cases, the company can extend this time frame after getting permission in the permission.
4. The company cannot issue these shares before passing of 1 year from the date of commencement of business.
5. The shares must belong to the same class of shares which are already available in the market. For example, if the has previously issued Equity shares then this time also, the company has to issue Equity shares only.
6. Also, the company has to acquire the sanction by the Central Government after getting approval from the general meeting.

Face Value

In case of a public limited company the liability of the shareholder is to pay up to the Face value of shares. The company can at any time ask the shareholders to pay the unpaid calls on the shares.  In case of loss, shareholders are not liable to pay more than the nominal value of shares.Hence, its said that the liability of the shareholders is limited to the unpaid calls or nominal value of the shares.

Liability of a shareholder is limited to ……………… of the shares allotted to him 

Face value

Employee Stock Option Plan or ESOP is wherein company issues shares to its employees at a price that is lower than the market price. Employee gets an option to execute the offer with an objective of motivating employees to perform better and promote a sense of ownership.

Employee Stock Option Plan or ESOP is wherein company issues shares to its employees at a price that is lower than the market price. Employee gets an option to execute the offer with an objective of motivating employees to perform better and promote a sense of ownership.

• Management is the process of getting a task done with the aim of achieving the goals of the organization in an effective and efficient manner. The term effective means completing the given task and efficient means completing the task with minimum cost and time.

• Ashita was effective because she completed her task within time but not efficient as they had to bear a high-cost of Rs 55000.

• Lakshmi was neither effective or efficient as she did not complete her task on time.

Assets are resources or items that a company, enterprise or even an individual can control, and these items can be sold or used to obtain a specific price or value in the market. Broadly, there are two major categories of assets, tangible and intangible, although these further comprise many different types of assets which will be discussed later.

A tangible asset could include any item, product or real-estate property, gold and even liquid cash. So if someone owns a flat or a plot of land, that is a tangible asset to them. A car, or some expensive equipment that can yield a hefty value when sold, is also an asset meaning that these items can give you financial benefits in the future.

A singer or an artist or a writer usually holds copyrights to their artistic works, albums and books. A scientist or designer can also file patents for their scientific work, innovations in design and breakthroughs in their work. All of these comprise intangible assets. When and if necessary, such assets can be sold, or used to increase the amount of money the individual or the company has.

Operating activities are the operations of a company directly associated with furnishing its commodities and services to the marketplace. These are the enterprise’s focus trading pursuits, such as producing, allocating, retailing and marketing a good or service. Operating activities are the principal source of revenue and expenditure in a firm.

The operating activities on the cash flow statement comprise of various uses and sources cash from the company’s operational activities. In simple words, it shows how much money a company has generated from its products or services.

Few items that operating activities include are:

Vouchers from sales of goods and services

Interest returns

Payment of Income-tax 

Payment credited to suppliers for goods and services used for production

Payment to salaries and wages 

Rent payments

Additional operating expenses

Current assets =4,10,000 
Current assets after payment of 50,000 : 4,10,000 - 30,000(Cash Given) =  Rs3,80,000 . 
As current ratio 2.4 and current assets are Rs 3,80,000
Current Ratio = Current Assets/Current liabilities
Therefore, Current liabilities =3,80,000/2.4 = 158333
Working capital = current assets - current liabilities = 3,80,000 - 1,58,333 =      Rs 221667

A common size balance sheet is a statement in which balance sheet items are being calculated as the ratio of each asset in relation to the total assets. For the liabilities, each liability is being calculated as a ratio of the total liabilities.

Common-size balance sheets can be used for comparing companies that differ in size. The comparison of such figures for the different periods is not found to be that useful because the total figures seem to be affected by a number of factors.

Even if there is no partnership deed,the following provisions shall still apply:-

1. Partners share profits and losses equally even if they contribute capital in different amounts.

2.Every partner has right to participate in the conduct of the business and to access the books,accounts and other documents.

3.Partners are not entitled to interest on capital and to draw any salary for the work done. 

4.Partners are allowed to receive interest on any loan advanced by them @ 6%p.a.

5.No interest is to be charged on drawings

A n s w e r
Profit before Interest and Tax = Profit after Tax + Tax +Interest

= 1,70,000 + 30,000 + 50,000 = 2,50,000

Interest Coverage Ratio :

= Net profit before Interest and Tax / Interest

= 250000 / 50000=5 times

The following are a few common types of intangible assets.

• Goodwill.
• Licenses.
• Trademarks.
• Patents.
• Copyrights.
• Rights.
• Customer Lists.
• Brand Equity.

Intangible Assets: This asset does not have a physical appearance and can be intellectual properties. It is considered as a non-current asset because it cannot be liquidated to cash with 12 months of the investment. Some examples are:

• Patent
• Trademark
• Copyright

The following are a few common types of intangible assets.

• Goodwill.
• Licenses.
• Trademarks.
• Patents.
• Copyrights.
• Rights.
• Customer Lists.
• Brand Equity.