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AFM
asked 8 hrs ago
Why present value factor applied to (R-C)(1-T) only. Why are we not applying the present value factor to depriciation *Tax [Video Time Stamp: 05:42]
latest answer
No answers yet!!
pavan kumar
CA Final
★ 2K+
0
5
Gain or loss
AFM
answered 11 hrs ago
For example, a) Case 1: A ltd (Indian company) imported goods worth $ 100 on Jan 1 payable after 1 month on Feb 1. Spot USD-INR = 50, Spot on 1st Feb USD-INR = 55. Cash outflow = 55*100 = ₹ 5500. In this case, whether the difference in spot rates of ₹ 5 (55-50) amounting to ₹ 500 (5*100) is the loss to the importer because of change in exchange rate over the time? b) Case 2: Forward contract A ltd (Indian company) imported goods worth $ 100 on Jan 1 payable after 1 month on Feb 1. Spot USD-INR = 50, Spot on 1st Feb USD-INR = 55. Company A entered into forward contract to buy $ at 52. Cash outflow = 52*100 = ₹ 5200 In this case, whether the difference in spot rate and forward rate of ₹ 2 (52-50) amounting to ₹ 200 (2*100) is the loss to the importer? c) Case 3: Future Contract A ltd (Indian company) imported goods worth $ 100 on Jan 1 payable after 1 month on Feb 1. Spot USD-INR = 50, Spot on 1st Feb USD-INR = 55. Company A long i month futures contract to buy $ at 52. Gain on futures = (55-52)*100 = 3*100 = ₹ 300 Cash outflow = 55*100 = ₹ 5500 Net cash outflow = ₹ 5500-300 = ₹ 5200 In this case, whether the difference in cash outflow at spot and delivery i.e. 5200-5000 = ₹ 200 is the loss to the importer? Sir, if each is seen independently whether the loss is computed as per above or in different manner? [Video Time Stamp: 10:19]
latest answer
In all cases your loss computation is right
SANJITHA
CA Final
★ 55
1
15
EFR Formulae
AFM
answered 1 day ago
In the Formulae, were payable and liabilities used. Does it include debt liabilities in it ?
latest answer
No. When we say liabilities we are referring to ST or Current liabilities LT debt / Equity are external funds raised after using the formula
vignesh vijayakumar
CA Final
★ 0
1
14
Public issue share count
AFM
answered 1 day ago
When calculating public issue, we r multiplying new no. of shares * new issue price.. so when calculating net gain also we have to take 50+new shares issued should be shown right, but y in post public issue also it is shown 50 shares only [Video Time Stamp: 00:00]
latest answer
I guess you are asking a query w.r.t Q 33 and not Q 34. The query is tagged to Q 34 We are not increase share count because in case of a rights issue, same i.e existing shareholders get the new shares In case of a public issue there new shareholders may be completely diff from existing share hlders We are trying to find out gain / loss for existing shareholders and not new share holders
Lavanya Ravi
CA Final
★ 180
1
18
Spot rate
AFM
answered 1 day ago
Sir, the spot rate that is compared with the forward rate to arrive at gain or loss is Current spot rate or Spot at future date. And what is the logic behind considering the same? [Video Time Stamp: 18:53]
latest answer
We are assuming future spot rate is same as current spot rate. We are trying to assess if that were the case which of the 3 choices is best suited for the company
SANJITHA
CA Final
★ 55
1
9
Value of contract Vs Price of forward contract
AFM
answered 2 days ago
Excerpts of the Module ..The value of a forward contract is incorrect because delivery price is not given ..In my view this 37498.11 is price of forward contract not value..Do share your view..
latest answer
Thank you Sir
Mansha Tutlani
CA Final
★ 555
2
18
Future spot will be equal to forward price
AFM
answered 2 days ago
Sir, in Part 2, if the company anticipates that future spot is same as forward, it won't enter into forward contract. Are we also assuming that the company is not hedged through money market which is advised to follow in part 1? [Video Time Stamp: 15:55]
latest answer
If spot is same as forward then obviously it means no hedge of any form
SANJITHA
CA Final
★ 55
1
12
Dividend on Stock lending
AFM
answered 2 days ago
Sir, The company has lent the shares for shorting, whether the dividend paid on those shares will be received the company? [Video Time Stamp: 05:45]
latest answer
If I lend you a hen and the hen lays an egg. who does the egg belong to? Egg belongs to the original owner. The person who is holding the hen temporarily has to hand over the egg to the owner Same logic for dividend also If received by the borrower - borrower has to give the dividend to the lender. IN ICAI questions it is assumed that the dividend is originally received by the borrower and hence it has to be reimbursed to the lender
SANJITHA
CA Final
★ 55
1
12
Closing balance with interest
AFM
answered 2 days ago
Sir, in i) (b) Pooling amount into India, is the deficit in Indian company is met through proceeds from foreign subsidiaries rather than borrowing? [Video Time Stamp: 17:42]
latest answer
Yes
SANJITHA
CA Final
★ 55
1
11
buying swap
AFM
answered on 12-May-26 07:58
in case of buying a swap we receive floating and pay fixed right then fixed rate should be 8% know why we are taking 8.2% while calculating ? [Video Time Stamp: 01:06]
latest answer
Bid ask rates are applicable When we borrow we borrow at higher rates Bank will lend at higher rates and bank will borrow at cheaper rate
Hemanth kumar Kapuluru
CA Final
★ 2K+
1
18