BANKING TRADE AND COMMERCE

PUBLIC LIMITED COMPANIES

The number of Public Limited Companies in Amravati district, other than the joint-stock banks was small. In 1958, there were only 6 companies of this type. Most of them were established in the post-war period.

These companies engage themselves in various kinds of productive activities with a view to obtaining profits. As a rule, they require large capital due to the extent of their operation. They use it for acquisition and maintenance of plant, equipment, buildings and other fixed assets, for holding current assets in the form of inventories of finished or partly finished products as well as raw materials and stores required for production. Capital is also required to be used as current assets and accounts receivable, etc. Capital is raised by floating shares and by issuing debentures. The shares are transferable or negotiable by law.

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