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Reason why profit remains same under delivery based transaction and net cash settlement

AFM

answered on 07-Mar-26 16:20

1 .Delivery based transaction - Arbitrage method: Today - Buy shares at Rs. X & enter into short futures at Rs. Y Expiry Date - Receive proceeds of Rs. Y by delivering the share Profit/loss = Rs. Y - Future value of Rs. X 2. Net Cash Settlement: Today - Buy shares at Rs. X & enter into short futures at Rs. Y Expiry Date - Close the futures by net cash settlement (i.e. Rs. Y minus spot price as on expiry date = Gain/loss on FC) Expiry Date - Sell off the shares in cash market at spot price (i.e. Spot price minus Future value of Rs. X = gain/loss on sell of shares) If we see these 2 gains in together mathematically, spot price gets eliminated and finally the Gain/loss = Rs. Y - Future value of Rs. X. Am I correct, sir? [Video Time Stamp: 11:54]

latest answer

Yes

Swathi S

Swathi S

CA Final

975

1

158

Doubt Regarding Order of Writing Answers in CA Exams

Exams

answered on 08-Sep-26 21:45

Sir, I have a small doubt regarding the CA exam answer writing pattern. I understand that we can answer questions in a different order, but should it be question-wise (e.g., completing Q2 with all its subparts and then moving to another question), or is it okay to shuffle subparts like writing 2(a), then 4(b), etc.?

latest answer

Yes. You will dont worry.

I'm Banu

I'm Banu

CA Final

0

5

247

Illus 18

AFM

answered on 07-Mar-26 16:21

Sir, How under case 1, the future price after 6 month is Rs.14296.8, but in case 2, the future price after 6 months is Rs.10,200. Then how could we arrive at same profit of Rs.43.2 under both the cases, sir? [Video Time Stamp: 16:50]

latest answer

Future price changes based on spot

Swathi S

Swathi S

CA Final

975

1

95

Illus 18

AFM

answered on 07-Mar-26 16:19

Sir, In the first case, we have taken the proceeds from closing of F.C as theoretical future price and arrived at profit of Rs.43.2. Whereas in the second case, taken the spot price as on that date (i.e. 10500) as proceeds from closing of F.C - I couldn't understand this sir, and how come same profit is being arrived in all the cases? [Video Time Stamp: 16:50]

latest answer

Profit

Swathi S

Swathi S

CA Final

975

1

95

Query Regarding Admit Card – Provisional Registration Despite MCS Completion

Exams

answered on 09-Mar-26 15:36

Hi Sir/Madam, I had made a provisional registration for the CA Final May 2026 exams. At that time, I thought that the updation of MCS completion would happen automatically, so I proceeded with provisional registration even though I had already completed my MCS in February 2026. Later, I uploaded my MCS completion certificate on the SSP portal. My doubt is whether I need to take any further steps from my side. Will I receive my admit card without any issues?

latest answer

Thanks for the Clarification Sir.

I'm Banu

I'm Banu

CA Final

0

2

235

Unable to open file please check the same

AFM

answered on 07-Mar-26 09:02

Study material file can't open LDR revision notes

latest answer

We are able to open can you check on a different machine . Providing link below for reference https://1fin.link/resource/20ac13c2434c438d860d4d9e410b2095/fd388940d0674d92a8d84a95cbebe4f1

Vinod Kumawat

Vinod Kumawat

CA Final

2K+

1

119

BRS

Accountancy

answered on 09-Mar-26 10:35

Hi sir, I have understood the concept of arriving from cash book balance to passbook balance and vice versa. For OD as per CB it means we have liability to the bank. For items which increases the od balance we need to add them and which reduces we need to reduce . Is my understanding correct . Or can I simply follow the process of pass book credit balance is equal to overdraft as per cb ( but may I know what’s the logic behind this )

latest answer

Whenever there is a OD balance use (-) symbol against the balance. Rest all treatment would be same. https://youtu.be/hnv460u1v4w This short recap might help.

Aravind V

Aravind V

CA Foundation

0

1

142

IRR method

AFM

answered on 07-Mar-26 07:24

Sir, By IRR method, we could arrive only the minimum return so that NPV is Zero. But it doesn't depict the actual return know sir. If in case, rate has been mentioned in the question - in such case going with discounting method would give us the appropriate return. Since here the question is silent on the rate, the first method of solving is more appropriate. Please correct me, if I wrong, sir. [Video Time Stamp: 11:06]

latest answer

ICAI solution says go with NPV

Swathi S

Swathi S

CA Final

975

1

144

Mergers & Acquisition

AFM

answered on 06-Mar-26 17:29

Hi Sir, How to find the exchange ratio, to maintain the same EPS (Pre-Merger) for target company.

latest answer

Inverse of ratio if eps numbers of two companies

Poluru Penchalaiah

Poluru Penchalaiah

CA Final

12K+

1

136

BRANCH ACCOUNTS - INDEPENDENT BRANCH

Accountancy

answered on 10-Mar-26 15:08

In independent branches , where will be remove the loaded value of opening & closing stock . Whether it will be in BR p&l or HO p&l or general p&l

latest answer

Ho pnl

sankar saran

sankar saran

CA Inter

10

2

236