MODE OF FINANCING
In the present era, there is significant financial risk for agricultural industeries and investment & corporate sectors due to high inflation,unbalanced distribution of wealth and inappropriate tax recvery system.Therefore, an effective mode of financing system is required to cover or reduce the risk up to acceptable level.
In mode of financing, leasing practices are common in all major industeries.Now, it is necessary to review this system because high markup on leased equipments or other assets is played a major role in increasing the inflation.Therefore,charging rent for equipments instead of markup at lessar value in respect of inflation but impose ristriction that company will not distribute any unappropriated profits upto certain years.
Resultantly,the cost of production or cost of services will be reduced,downsizing will also be reduced and economy will be more stable.
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