One of the means adopted by the companies to raise foreign fund is through the FCCB. It is the Foreign Currency Convertible Bonds. It is a mix of bond and equity.

It is more beneficial for both the issuer and the subscriber. The holder of the bond has the option to convert these FCCBs in to equity whenever the shares of they said company appreciates. This will ensure them a better return.

From the point of view of the company it needs to pay the agreed coupon and the principal on an ongoing basis and in case of conversion to equity, the debt burden gets reduced. Whenever the interest rates abroad are favourable the companies resort to these route for easy and cost effective funds.

At times the foreign entities who are holding these bonds even convert the entire FCCb amount in to equities so that the company needs not service the debt. As such, it is a debt instrument with the warrants attached for conversion in to equity as and when the holder like to desires do so

Introduction of technology and sophisticated infrastructures in the working environment too has become imperative to improve the bottom line. Many organizations like banks give much importance to profit so as to take care of the interest of the stake holders. Many go for periodical review of the progress to ensure that their growth percentage is at par with the nature of the industry.