Tutorial What Does Ploughing Back Of Profit Stands For ?

Prasoon Arora

White Belt
Ploughing back of profits stands for the process of managing saving for the corporate sector and utilizing the savings in the business. A company transfer or gives a part of its share to the reserved instead of getting it distributed among all. The share is then used for future use and is referred as self financing.

Zirkon Kalti

Content Writer
It means that a part of the profits are held back for use in financing other needs in the company. It is one of the best methods for financing the expansion because there is no pressure to pay back stockholders.