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Share capital and debentures

Corporate & Other Laws

answered on 02-Sep-24 20:48

What is the meaning of indebted to company ?

latest answer

"Indebted to the company" means owing money or a financial obligation to the company. Eg loan taken from company

Lucky Ten

Lucky Ten

CA Inter

0

1

212

Articleship

Others

answered on 02-Sep-24 11:12

I have commenced practical training of 3 years under old scheme of education and training. When will I become eligible for final examination? My starting date of articleship is : 3rd May 2023. Will I able to give my final exam on Nov 2025? I have attached a screenshot but I couldn't understand the last point. Please help

latest answer

By 31st October 2025 you should have completed at last 2.5yrs of training I think because of a week you are not eligible to appear by nov25 please confirm.

Priya Ravi

Priya Ravi

CA Inter

55K+

1

276

In last 16:25: min last note 4 th point I not understand entire understand

Accountancy

answered on 01-Sep-24 17:06

In last 16:25 ples details explain sir

latest answer

Ok

R G

R G

CA Inter

9K+

3

193

Calculation of Dividend

AFM

answered on 02-Sep-24 09:50

The dividend yield is given as 4.8% per annum. So, while calculating the yield on 50% of the stock, why did we calculate using 4.5% instead of 4.8%*6/12? Why have we consider the per annum yield?

latest answer

Diff companies pay dividend at diff times, Hence i assumed that 50% of companies paid full dividend. You can also assume like what you mentioned

Deepak Jain

Deepak Jain

CA Final

0

5

303

Factors affecting option pices

CFA

answered on 01-Sep-24 20:20

How does the time to expiry affect the put option - I did not get the logic

latest answer

Greater the time, greater the opportunity for volatility to play its part on either side and enable a put or call option to become in the money. Hence longer duration options have higher price even if they r out of the money.

Vasudha TK

Vasudha TK

CFA L1

70

1

133

SA-3420

Auditing

answered on 03-Sep-24 21:40

Here are the situations where a company should issue a prospectus: 1. Initial Public Offer (IPO) 2. Further Public Offer (FPO) 3. Rights Issue 4. Bonus Issue (if it involves an offer to the public) 5. Private Placement (if it exceeds 200 people in a financial year) 6. Issue of Debt Securities (e.g., debentures, bonds) 7. Conversion of Securities (e.g., convertible debentures into equity shares) 8. Offer for Sale (by existing shareholders to the public) 9. Issue of Securities to Public through a Stock Exchange 10. Issue of Global Depository Receipts (GDRs) or American Depository Receipts (ADRs) Additionally, a prospectus is required in situations like: - Scheme of Arrangement (under Section 230 of the Companies Act, 2013) - Merger or Amalgamation (if it involves an offer to the public) - Demerger or Spin-off (if it involves an offer to the public) Mam Only in this Circumstances we issue prospectus??

latest answer

Then it’s right. In the above cases prospectus is issued .

Surya Prakash

Surya Prakash

CA Final

19K+

3

229

cost of capital

Financial Management

answered on 02-Sep-24 20:05

In ICAI material the illustration 3 said it is issued at par (question 3 in class) in material provided by 1FIN it is not said issued at par so we taken Net proceeds as market value, but in ICAI material it is said that it is issued at par the why the net proceed is not considered as IssuePrice?

latest answer

Institute has followed different approaches in different problems. In such cases marks will be given to any approach which the institute has followed. Yet, to avoid confusion, if the computation is for the securities which had already been issued in the past consider current MV. A detailed video has been provided to the students. Please refer if needed.

Muhammed Salih

Muhammed Salih

CA Inter

18K+

3

323

corporate issuers

CFA

answered on 01-Sep-24 20:22

A firm is considering a project that would require an initial investment of THB270 million (Thai baht). The project will help increase the firm’s after-tax net cash flows by THB30 million per year in perpetuity, and it is found to have a negative NPV of THB20 million. The IRR (%) of the project is closest to: A. 11.1%. B. 10.3%. C. 12.0%. is it possible to solve this via calculator if notpls share the solution

latest answer

Use elimination technique Npv = -20 and outflow is 270 implies PV of inflow is 250 Check which is correct 30/.111 30/.12 Which gives answer as 250 Answer is 12%

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

1

310

Alternation of share capital

Corporate & Other Laws

answered on 02-Sep-24 16:12

Which resolution shd be passed for the alternation of share capital .special or ordinary?

latest answer

Section 61 of Companies Act, 2013 deals with power of limited company to alter its share capital. According to this section a limited company having a share capital may, if so authorized by its articles, alter its share capital by passing an ordinary resolution in general meeting

Lucky Ten

Lucky Ten

CA Inter

0

2

253

SAE-3400

Auditing

answered on 01-Sep-24 16:40

Can we use the term auditor in PFI

latest answer

Yes. Audit is high level of assurance. N others are limited assurance or non assurance engagement. So practitioner is appropriate.

Surya Prakash

Surya Prakash

CA Final

19K+

3

249