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    Capital and Assets of The Industry

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    BISHAL Adhikari
    Capital and assets refer to all properties owned by an individual or business, whether tangible or intangible. For businesses, capital assets are resources valued over $1,000 with a useful life longer than one year, while capital is the money invested by owners. Assets are economic resources like cash, property, equipment, and money owed by customers. For industries, the capital funds the business and assets include tangible property and infrastructure, as well as intangible rights. Assets must provide future benefits, be controllable by the entity, and arise from past transactions or events.

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    © All Rights Reserved
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    Capital and Assets of The Industry

    Uploaded by

    BISHAL Adhikari
    9 views14 pages
    Capital and assets refer to all properties owned by an individual or business, whether tangible or intangible. For businesses, capital assets are resources valued over $1,000 with a useful life longer than one year, while capital is the money invested by owners. Assets are economic resources like cash, property, equipment, and money owed by customers. For industries, the capital funds the business and assets include tangible property and infrastructure, as well as intangible rights. Assets must provide future benefits, be controllable by the entity, and arise from past transactions or events.

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    3. Capital and Assets of the Industry

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    Capital and assets refer to all properties owned by an individual or business, whether tangible or intangible. For businesses, capital assets are resources valued over $1,000 with a useful life longer than one year, while capital is the money invested by owners. Assets are economic resources like cash, property, equipment, and money owed by customers. For industries, the capital funds the business and assets include tangible property and infrastructure, as well as intangible rights. Assets must provide future benefits, be controllable by the entity, and arise from past transactions or events.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    9 views14 pages

    Capital and Assets of The Industry

    Uploaded by

    BISHAL Adhikari
    Capital and assets refer to all properties owned by an individual or business, whether tangible or intangible. For businesses, capital assets are resources valued over $1,000 with a useful life longer than one year, while capital is the money invested by owners. Assets are economic resources like cash, property, equipment, and money owed by customers. For industries, the capital funds the business and assets include tangible property and infrastructure, as well as intangible rights. Assets must provide future benefits, be controllable by the entity, and arise from past transactions or events.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 14

    Capital and Assets of the

    Industry/company
    Capital and Assets have included all
    kinds of properties, whether movable or
    immovable, tangible or intangible,
    whether related to business or not.
    Capital assets are significant pieces of
    property such as homes, cars,
    investment properties, stocks, bonds,
    and even collectibles or art. For
    businesses, a capital asset is a type of
    asset with a useful life longer than a year
    that is not intended for sale in the regular
    course of the business's operation.
    Capital is the value of the investment in
    the business by the owner(s). It is that
    part of the business that belongs to the
    owner; hence it is often described as the
    owner’s interest. Capital is the net worth
    of a company or the money that is
    required to produce goods.
    Assets are the economic resources
    belonging to a business. Assets could be
    money in a cash register or bank
    account, or items such as property,
    fixtures and furniture, equipment, motor
    vehicles, and stock or goods for resale.
    An important asset in businesses which
    sell goods or services on credit is money
    owed to the enterprise by customers.
    Assets are things that have a value and
    can be sold in the market for a monetary
    value.
    The capital or the fund is the most
    important part of the company or
    industry and the fund required to set up
    any company or industry is known as the
    capital of the company. The capital is
    collected from the shareholders or
    owner of the company or industry. If any
    Limited or Private Limited company has
    registered on the office of the register of
    companies, the capital has been
    provided in the Memorandum of
    Association (MoA) of the company.
    There are alternative ways to register the
    industry, which are guided and
    governed by the Private Firm Register
    Act, 2014 and Partnership Act, 2020. The
    share capital is divide and provided in
    MoA of the company/industry, which are
    such as;
    ● The amount of share capital the
    company will have and
    ● The division of the share capital into
    shares of the fixed amount;
    According to the Companies Act, 2063,
    when anyone registeres a company, the
    shareholders must agree to take the
    share amount based on the issued capital
    of the purpose company. The MoA must
    show the names of the shareholders who
    have agreed to take shares and the
    numbers of shares each will take. These
    people are subscribers of the company.
    This provision has provided on the Part 3
    Sec.18 (e) of CA, 2063 whereas; "the
    figure of the authorized capital of the
    company and the figure of the share
    capital to be issued by the company for
    time being and the figure of undertaken to
    be paid by the promoter of the company".
    The share capital is provided also under
    the Part 4 Sec.27 where as provided that
    "the face value of shares of a private
    company shall be as specified in its
    articles of association."
    According to CA, 2063 the share capital
    divided into three different ways and
    prescribed on AoA and MoA which are
    as follows;
    a) Authorized Capital:- the provision of

    authorized capital is a limited


    company's authorized share capital is
    the amount of capital with which its
    starts its life (Sect. 27(2) of CA, 2063-
    The face value of shares of a public
    company shall be fifty rupees per share
    or shall be equivalent to such amount
    exceeding fifty rupees as is divisible
    by the figure ten as provided in the
    memorandum of association and
    articles of association.) and which is
    states on the MoA & AoA. The
    authorized capital may not be the same
    as its issued capital.
    b) Issued Capital:- The provision of
    issued share capital refers to normal
    value of the part of authorized capital
    which has been subscribed for by the
    signatories to the MoA and it has been
    allotted for cash or for consideration
    other than cash or allotted as bonus
    share.
    c) Paid of Capital:- the provision of paid

    capital is a paid up capital is the amount


    deposited by the shareholders which is
    against the payment for the shares they
    are willing to take. The shareholders
    should pay the share amount as per
    demand by the Board of Director of the
    company.
    These provisions of the share structure of
    the private and public company are
    distinct. The public company should
    allocate 30% share for the public but the
    private company should not allocate any
    share for the public and shareholder up
    to 101 only. The provision of payment of
    amount of shares is provided on Section
    53 of CA, 2063, whereas; an amount for a
    share shall be paid up within the period
    of a call made in accordance with the
    articles of association and in making a
    call pursuant to Sub-section(1), a
    company shall send every shareholder a
    written notice, in the prescribed format,
    specifying a time-limit of at least thirty
    days and the installment payable by
    him/her, the place and time for payment.
    A public company shall also publish such
    notice, for at least three times, in a daily
    newspaper with national circulation.

    Change of Share of the Company


    The provision relating to the Power of
    company to alter its share capital, which
    has provided on Section 56 Sub-Section
    (1) Subject to the provisions contained in
    its articles of association, any company
    may, by adopting a special resolution at
    its general meeting, make alteration in
    its share capital. A copy of the resolution
    and notice of the increase in authorized
    share capital is needed to be sent to the
    CRO within one month of passing the
    resolution. Whether the authorized
    capital is increased, required fee pay on
    the CRO.
    Even though the provision relating to
    reduction of share capital is provided on
    Sec.57 of CA, 2063 where as if a company
    intends to reduce its share capital, it
    may, by adopting a special resolution to
    that effect at its general meeting, reduce
    its share capital by obtaining approval of
    the Court and making necessary
    amendment to or alteration in the
    memorandum of association and articles
    of association, accordingly.
    Assets
    In the industry or business company has
    invested the capital for assets. Assets are
    everything of value that is owned by a
    person or company. Any property of
    value that one possesses, usually
    considered as applicable to the payment
    of one's debts is considered an asset.
    Simplistically stated, assets are things of
    value that can be readily converted into
    cash. The balance sheet of a firm records
    the monetary value of the assets owned
    by the business firm. It is money and
    other valuables belonging to an
    individual business.
    The assets are classified into two-part
    tangible assets and intangible assets.
    Tangible assets contain various
    subclasses, including current assets and
    fixed assets. Current assets include
    inventory, while fixed assets include
    such items as buildings and equipments,
    with technical consultancy and
    supervision prior to the making of
    investment in any industry or during
    different stages of construction and
    which is to be capitalized, pre-
    investment and pre-operation costs as
    well as the amount of interest during the
    construction period, which is to be
    capitalized shall be considered as the
    fixed assets of any industry.
    The Industrial Enterprises Act, 2020 has
    provided that the fixed assets which are
    known as tangible capital as well as
    assets. The section 16 has clearly
    provided the fixed assets are;
    (a) Land, underground, space, water or
    under water or improved physical
    infrastructure,
    (b) Constructed physical
    infrastructure i.e. sewage, internal
    roads, structure of drinking water,
    water supply systems on the land
    (c) Office of the industry, industry,
    building or warehouse,
    (d) Hostel building for employee or
    workers,
    (e)Electricity supply and related
    machine and systems,
    (f) Machinery, equipment and their
    spare parts,
    (g) Vehicles,
    (h)Official goods and equipment,
    (i) Furniture,
    (j) Communication tools and related
    equipment and systems.
    The intangible assets are nonphysical
    resources and rights that have a value to
    the firm because they give the firm some
    kind of advantage in the market place
    i.e. of intangible assets are goodwill,
    copyrights, trademarks, patents (it has
    defined on Section 2 of Patent Design
    and Trademark Act, 2022) and computer
    programs and financial assets, including
    such items as accounts receivable bonds
    and stocks.
    The assets have three essential
    characters, which are as follows;
    1. the probable future benefit involves a
    capacity, singly or in combination with
    other assets, in the case of profit-
    oriented enterprises, to contribute
    directly or indirectly to future net cash
    flows and in the case of not-for-profit
    organizations, to provided services;
    2. the entity can control access to the
    benefits; and
    3. The transaction or event given rise to
    the entity's right to, or control of the
    benefit has already occurred;

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