Fundraising

Equity, debt, CCD/CCPS, rights, preferential allotment, ESOP and investor diligence.

Corporate Finance Hub · B03

Fundraising

Equity, debt, CCD/CCPS, rights, preferential allotment, ESOP and investor diligence.

Section-wise decoding

1. Objective

Corporate finance converts strategy into capital allocation decisions: where to invest, how to fund, how to price risk and how to protect liquidity.

2. Applicability

Relevant for CFOs, founders, boards, finance controllers, investors and lenders evaluating performance, funding and value creation.

3. Core Rules

Every finance decision should reconcile accounting impact, tax impact, cash impact, covenant impact, shareholder dilution and compliance approvals.

4. Practical Example

A preference share round may look cheaper than debt but can affect control rights, liquidation preference, Ind AS classification and future conversion dilution.

5. Common Mistake

Approving growth capex on optimistic revenue alone without DSCR, downside case and working-capital absorption.

Practical compliance map

Area	What to check	Evidence
Applicability	Entity type, thresholds, exemptions, board/audit committee requirements	Entity profile note, statutory registers, portal master data
Process	Owner, maker-checker, approval route, timeline and escalation	SOP, tracker, reviewer sign-off
Documentation	Working paper, calculation, source extract, management approval	PDF evidence pack and version history
Review	Legal freshness, numerical accuracy, final upload test	QA checklist and upload screenshot

Exceptions and red flags

Risk: Applying generic rules without entity-specific threshold checks.
Risk: Missing event-based triggers while focusing only on monthly/annual items.
Risk: Not preserving evidence for future audit, inspection or investor diligence.

Implementation checklist

✓ Prepare base, downside and upside case.
✓ Show cash, P&L and balance-sheet impact separately.
✓ Link assumptions to operational drivers.
✓ Document approvals and valuation support.

Q&A

What is the first step?	Identify applicability. A rule may exist, but the entity may be exempt or subject to a threshold.
What makes this Finin2min-ready?	Plain-English decoding plus source base, examples, Q&A, summary and implementation checklist.
Can this be used as professional advice?	No. It is an educational upload asset; final action should rely on live law, circulars, forms and professional judgement.
What should be refreshed before publishing?	Dates, thresholds, circular amendments, portal utilities and any regulator FAQs issued after the source-log date.

Finin2min Summary

Fundraising in 2 minutes: Know the rule, check applicability, document the evidence, assign accountability, review exceptions, and refresh from official sources before filing, reporting or board use.

Source log

Companies Act, 2013 and rules — https://www.mca.gov.in/
SEBI ICDR master circulars and regulations — https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=1&smid=0&ssid=6
RBI Master Directions repository — https://rbi.org.in/scripts/bs_viewmasterdirections.aspx
ICAI Valuation Standards and Guidance — https://www.icai.org/
Income-tax Department tax calendar and filings — https://www.incometaxindia.gov.in/tax-calendar