Forums
Flexibility in the case of futures
AFM
answered on 03-May-25 18:48
Can you please elaborate on the contrasting flexibility in the case of stock futures and index futures?
latest answer
Flexibility
Ruthvik Reddy Adala
CA Final
★ 5K+
1
182
Dividend
Corporate & Other Laws
answered on 04-May-25 15:54
Point c explain pls wrt IEPF..
latest answer
If someone in a company does something wrong and people like investors or depositors lose money, the court can order that money (called disgorged amount) be taken from the wrongdoer (Company/directors/etc). This money is then fairly distributed among those who suffered the losses (ie, debenturesholders, shareholders).
Sushmita Chowdhury
CA Inter
★ 2K+
2
190
Total EBIT
Financial Management
answered on 03-May-25 12:51
Total EBIT= 14.4%×200L(i.e, old EBIT already exists)+17.4 %× 30L -------------> I calculated But in question total EBIT = 17.4% ×230 L (not byforgetting @1st 14.4% and for additional requirement 17.4%) Can you please explain it sir
latest answer
When they say ROCE increases by 3% it means for whole co & not for just new investment
anju B
CA Inter
★ 21K+
1
220
dividend on short futures
AFM
answered on 03-May-25 12:37
if dividend is paid by the stock/index during the time we have short sold futures, it is inflow or outflow to us for finding net gain/loss. please explain.
latest answer
Dividend
Ali S
CA Final
★ 8K+
1
176
Is it fill in the blank or assumption that no debt,no equity to B ,A
Financial Management
answered on 03-May-25 04:44
Are they are fill in the blanks that which we compute Or In B ltd there is no debt In A ltd there is no equity? But in this problem Fill in the blank is given only for Altd computation of equity But not for Bltd which is assumed to be unlevered co.
latest answer
There can be no company without equity On the unknown numbers / blanks , this is an older question Questions have been more clearer in recent exams worry not
anju B
CA Inter
★ 21K+
1
200
VL= S+ D
Financial Management
answered on 03-May-25 12:47
@4 VU=VL=100L But in this formula VL = S +D = Only debt 54L Answers not tally ?
latest answer
It is tallying Eq 46 & debt 54
anju B
CA Inter
★ 21K+
1
169
Company Incorporation
Corporate & Other Laws
answered on 12-Aug-25 16:20
I have converted a partnership firm to a Private Limited Company by filing the URC 1 Form. The capital of the firm was 16 crores and the capital of the Company is 10 crores. Balance have been shown as long term loan from Directors. The partners of the firm are the only directors of the Company. Now should the directors bring in capital of 10 crores into the bank account of the Company?. Since it is going concern. Also, since i have filed the URC form which evidences the conversion. Should I bring in capital. Also, should I file INC 20A - commencement of business. Please help
latest answer
Yes, the subscribed capital (₹10 crores) must be actually brought in to the company’s bank account by the shareholders (in your case, the former partners who are now directors and subscribers). This is essential due to the following reasons: Under Section 10A of the Companies Act, the company cannot commence business or borrow funds unless the subscribed capital is deposited in the bank account and Form INC-20A is filed. Even if the business is a going concern, the new company is a distinct legal entity, and the capital must be reflected in its books. Conclusion: ₹10 crore (or the amount each subscriber agreed to subscribe in the MoA) must be deposited into the company’s bank account. 2. Treatment of Remaining ₹6 Crore (Balance from Firm’s Capital) You're showing the remaining ₹6 crores as a long-term loan from directors. That’s acceptable and practically common in conversions where capital structuring is revised. However, it’s important to ensure that; The loan agreement is properly documented. If it's interest-bearing, disclose accordingly in financials. The terms are arm’s length, to avoid future scrutiny under tax or company law. 3. Form INC-20A – Is It Required? Yes, filing Form INC-20A is mandatory. Even though the company is formed through conversion under URC, once the Certificate of Incorporation is issued: It is treated as a new company, and As per Section 10A, every company having share capital must file INC-20A within 180 days of incorporation, confirming: Capital has been received A bank account has been opened The business is ready to commence Attachments to INC-20A typically include: Copy of bank statement showing credit of subscribed capital Certificate of incorporation Board resolution (it is optional but recommended) 4. Summary of Your Case Capital of ₹10 crores subscribed- must be deposited into the company bank account. Balance ₹6 crores (old firm capital)- Can be treated as loan from directors, properly documented. Form INC-20A- Yes, mandatory within 180 days. Going concern status- Doesn’t waive compliance with capital infusion. Final Advice Even though this is a conversion and a going concern, the private limited company is a new legal entity. It must comply independently with all provisions applicable to a new company, including capital deposit and filing of Form INC-20A. However, seeking professional help from experts such as Setindiabiz or any other name, is always advisable to tackle confusion and get the conversion done smoothly!
Azmi RZmi
CA Final
★ 10K+
6
247
Security Deposit
Financial Reporting
answered on 14-May-25 12:35
For example, I have taken a property on lease. Security depositto be paid as per agreement is to be made in 3 phases, out of which 1 is after March 31.XX. Should that be accounted for? Or just disclosure is required?. Also, what if agreement is made into after March 31, or even after the reporting period. But letter of intent has been agreed into between the parties before March 31 2024. Whether accounting needs to be done or disclosure requirements only?
latest answer
If the transaction has to happen in future, it would not be accounted for unless the lease has commenced. You will understand this in INd AS 116 regarding accounting date. Also Ind AS 109 requires discounting of interest free deposits.
Azmi RZmi
CA Final
★ 10K+
1
254
Illustration 13 - No. Of employees recruited & joined
Costing
answered on 14-May-25 12:47
Hello sir, Hope you all are fine. Sir in the video the computation of No. Of employees recruited & joined came to 12 but in institute material at pg no 3.47 the No. Of employees recruited & joined is showing as 42 . Please explain me why it's varying here .
latest answer
42 is the number of Accessions. As there is already 30 replacements has happen. So the employees recruited and joined will be the 12 only. In ICAI material the whole Accessions is given as recruited and joined. For further more clarity we provided it.
Nagachaitanya Nomula
CA Final
★ 8K+
1
215
Tax on iterest
AFM
answered on 02-May-25 17:22
When we calculate FCFF using EBIT(1-T) We are applying taxes on EBIT, Which includes interest.But in reality,we don't pay tax on interest-its tax deductible. So aren't we overestimating the tax and understanding FCFF
latest answer
Nope It means when we value using FCFF Value of debt is included When you do using FCFE value of debt is to be added to it
P.udaykumar Pasupulati
CA Final
★ 2K+
3
220