Sources of finance: A study of akzonobel India limited and kansai nerolac paints limited

Abstract

A company requires finances to carry out its target activities and meet its demands. That is why finance is also called as the “vital blood” of the company. Business finance facilitates the company to carry out the multiple operations that lead to the mission, objectives and target of the company. It can raise finance from a variety of sources that must be analysed properly to choose the best and the most appropriate accessible method. The sources of finance could be chosen depending on the cost, situation, purpose and the risk associated with it. The present paper studies and analyses the sources of finance- long term and short term, taken by the two leading companies of the paint industry- AkzoNobel India Limited and Kansai Nerolac Paints Limited. It also studies the influence of different elements on the year-on-year changes in the financial position and draws an inference on the use of different kinds of funds of both companies.