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MD remuneration

Corporate & Other Laws

answered on 03-Jun-24 16:05

MD remuneration is based on net profit of the company. Assuming that Mr X is appointed as a MD on the month of April 2024 how much profit will company earn I can calculate after closing my book on 31st March 2025 . So how can I fix MD remuneration on April 2024. Kindly help me in understanding the concept

latest answer

There is some part which is fixed and remaining is paid as variable. The overall remuneration should not exceed the limit specified under the companies act.

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

333

Debentures

Accountancy

answered on 03-Jun-24 16:05

Debentures can be issue and redeem in India at discount? Also point out relevant legal section on this.

latest answer

The Companies Act, 2013, does not explicitly prohibit the issuance of debentures at a discount. However, it is essential to follow specific provisions and guidelines: Section 53: Prohibits the issuance of shares at a discount, but it does not directly apply to debentures. Section 71: Governs the issuance and redemption of debentures but does not explicitly address the issuance of debentures at a discount.

Shubham .shubham

Shubham .shubham

CA Inter

885

1

421

Group Financials

Financial Reporting

answered on 03-Jun-24 16:06

Holding company borrowed Rs.1 crore at 10% from a third party & give it as loan to subsidiary company at 12 % to construct a Qualifying Asset . Now , Which interest rate to be taken for computing borrowing cost . Whether different same interest rate to be taken in both standalone and group financials ?

latest answer

For stand alone of subsidiary - 12% For group - 10%

Swathi S

Swathi S

CA Final

975

1

184

H Limited - Illustration

Financial Reporting

answered on 03-Jun-24 16:33

In the H limited illustration, whether the commercial complex be treated as PPE under Indas 16 or Investment property under Indas 40 ?

latest answer

Ind AS 40 - IP

Swathi S

Swathi S

CA Final

975

1

131

ABC ANALYSIS ILLUSTRATION 11

Costing

answered on 05-Jun-24 16:03

Sir, For the illustration 11 you haven't provided reason for the answer as per the question. Can you kindly provide instructions on how detailed we have to make the reasoning?

latest answer

Reasoning can be short and crisp to the point. Even one line is enough

Dharene Sethupathi

Dharene Sethupathi

CA Inter

4K+

1

155

IND AS 12

Financial Reporting

answered on 03-Jun-24 16:54

Sir can you please explain the part marked under red brackets in the enclosed photo? Not able to understand the language properly. Also would be helpful if any reference to understand the same is there.

latest answer

If account receivable outstanding is Rs. 100. When you recover that Rs. 100, there is no tax consequence. So tax base = carrying amount. For depreciable asset, tax base is the amount that would be deductible in future against income . So continuing Suresh's example, 92 will be cumulatively deducted in future. That would be the tax base.

Priyanka Udeshi

Priyanka Udeshi

CFA L1

14K+

3

295

Portfolio Beta

AFM

answered on 01-Jun-24 15:17

Proportion of NIFTY Futures In calculation of Portfolio Beta

latest answer

In denominator The value of portfolio should be 160 only. But in numerator beta should be considered including. Yea of derivative contract

Seetha Jakka

Seetha Jakka

CA Final

3K+

4

330

If the other side of the assumption, where to give debit

Financial Reporting

answered on 01-Jun-24 18:28

If company opt to transfer retained earnings then debit To p&l or Retained earnings?

latest answer

If revaluation surplus does not have balance, we use profit and loss.

Ramamoorthy Kaliyaperumal

Ramamoorthy Kaliyaperumal

CA Inter

3K+

1

197

Borrowings

AFM

answered on 31-May-24 20:40

Hi Sir, By borrowing at the beginning of the period we are paying more interest than we are earning, because of the interest rate difference in CAD and DM. So instead of borrowing CAD at the beginning, if we borrow at the end of the 3 months and convert @ 0.668( Ideal forward rate). We can get profit of 2.994 CAD.

latest answer

Do you know for sure that after 3 months the rate will be 0.668? When fwd rate can be mispriced will spot on that day be correctly priced? When you see a gap today, you take advantage now by locking in rates

B. Dinesh

B. Dinesh

CA Final

3K+

1

300

Clarification in Oppression and mismanagemetn

Corporate & Other Laws

answered on 01-Jun-24 12:41

As per Section 241 any member of the company may complain that the affairs of the company have been conducted in a manner prejudicial to public interest or oppressive to member or prejudicial to interest of the company. Here member means Directors of the company I am not clear in understanding the same. Prejudicial to interest of the the company means shareholder.

latest answer

Members means shareholders. So if the affairs of company is conducted against the views/concerns of members or there is misuse of powers by Management of the company then sec 241 can be invoked and appeal can be filed to NCLT.

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

274