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Illustration 30 - Borrowing Decision

AFM

answered on 23-Aug-25 07:25

Sir, in the question it has been asked that what should be the interest rate after 3 months to make the company indifferent between the 3-month & the 6-month borrowing. In the lecture it has been explained that if there is already a 3-month borrowing, then what should be the interest rate if the loan is extended to another 3 months so that the company is indifferent between 3-month & the 6-month borrowing. However, going as per the strict interpretation of the language of the question, it has been asked to compute the interest rate so that the company is indifferent between the 3-month loan & the 6-month loan. This means that the company has options to take a 3-month loan & another 6-month loan, and what should the interest rate during the months 4,5 & 6 of the 6-month loan be so that the ultimate repayment that the company has to make in case of the 3-month loan and this 6-month loan are equal, thus making the company indifferent between them. This is what I am understanding from reading the language of the question. Please guide me regarding this.

latest answer

No. That is not the meaning it is saying, 3 m + new rate for balance 3 months so that it is equivalent to 6 months Please do not overthink

Vignesh Panigrahi

Vignesh Panigrahi

CA Final

1K+

1

167

Digital platform types and valuation

AFM

answered on 23-Aug-25 04:54

Audio is visible but there is no video visual. Kindly check it once [Video Time Stamp: 00:13]

latest answer

Pls check at your end Video is visible at all points Pls share time stamp where u r facing issue if any

Manasa Kondepu

Manasa Kondepu

CA Final

3K+

1

155

15.PAYMENT OF TAX, INTEREST

Indirect Taxation

answered on 28-Aug-25 13:48

IN CASE WE GET GST REG NO AFTER 30 DAYS OF APPLICATION , WE ISSUE REVISED INVOICE, EXAMPLE APPLY FOR GST REG,22TH OF AUG, GST NO GOT 21 ST OF SEP MONTH, GST DUE DATE WAS CROSSED, THIS CASE INTEREST APPLICABLE SIR [Video Time Stamp: 04:13]

latest answer

Welcome.

suresh balaji

suresh balaji

CA Inter

3K+

6

218

15.PAYMENT OF TAX , 6.INTEREST

Indirect Taxation

answered on 28-Aug-25 13:48

IN CASE WE GET GST REG NO AFTER 30 DAYS OF APPLICATION , WE ISSUE REVISED INVOICE, EXAMPLE APPLY FOR GST REG,22TH OF AUG, GST NO GOT 21 ST OF SEP MONTH, GST DUE DATE WAS CROSSED, THIS CASE INTEREST APPLICABLE SIR [Video Time Stamp: 04:13]

latest answer

Welcome.

suresh balaji

suresh balaji

CA Inter

3K+

3

206

Intrest rate cut

CFA

answered on 22-Aug-25 21:30

Today US Fed chairmen hinted the possibility of rate cut and soon the forex pairs reacted like USD/JPY crashed but EUR/USD went up why..is rate cut good for USA?or not why this kind of reaction pls explain

latest answer

Euro & JPY jumped because a US rate cut means that US economy is going into a recession.

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

1

125

Shares O/s Test

Accountancy

answered on 25-Aug-25 15:47

Sir, In ICAI book it is written 25% of Paid up share cap + Free reserves, But here 25% is calculated only on O/S shares and not free reserves? [Video Time Stamp: 07:03]

latest answer

Ok sir

Rahul Anand

Rahul Anand

CA Inter

6K+

2

183

accounting for GST

Accountancy

answered on 22-Aug-25 19:23

Sir , for example I'm availing a service . I'm paying 1180@18% GST. So the service provider is collecting the tax of Rs. 180. He is liable to pay the Govt. 180 Rs. Can he avail input tax credit from the Govt. ? or input tax credit only applicable to goods if applicable to services then how? [Video Time Stamp: 02:36]

latest answer

Like we collect GST from you on course purchase.- say 1000 We pay GST to faculty when faculty sends us invoice - 400 Net we need to pay 600 to Govt

Pranav Anand

Pranav Anand

CA Inter

0

1

194

Writing off of Premium on Buy back

Accountancy

answered on 22-Aug-25 18:56

Sir, is there a sequence in which premium on buyback can be adjusted to General Reserve, SP or P/L. Or it is at the discretion of accountant if balance is available in all 3 reserves? [Video Time Stamp: 14:41]

latest answer

ok Sir

Rahul Anand

Rahul Anand

CA Inter

6K+

2

203

Interest Rate

AFM

answered on 22-Aug-25 19:19

Sir, I thought from the given interest table each given rate is for amount under limit. Incase of EURO Upto 100000 interest rate is 0.25% and from 1,00,000 to 5,00,000 interest rate is 1.5% and from 5,00,000 to 10,00,000 interest rate is 2%. So I calculated interest like that. Will they mention differently if this was the case? [Video Time Stamp: 05:19]

latest answer

In such case they will mention it specifically that even if deposit is for say 500,000, then for first 100K interst rate is x% and for balance 100-500 K int rate is y%

Banu Priya

Banu Priya

CA Final

6K+

1

142

prohibition sch1

Corporate & Other Laws

answered on 26-Aug-25 20:30

Here Remittance means inward or outward?

latest answer

👍

Mugesh Annadurai

Mugesh Annadurai

CA Inter

0

3

175