Public issue share count

answered on 14-May-26 10:51

When calculating public issue, we r multiplying new no. of shares * new issue price.. so when calculating net gain also we have to take 50+new shares issued should be shown right, but y in post public issue also it is shown 50 shares only [Video Time Stamp: 00:00]

latest answer

I guess you are asking a query w.r.t Q 33 and not Q 34. The query is tagged to Q 34 We are not increase share count because in case of a rights issue, same i.e existing shareholders get the new shares In case of a public issue there new shareholders may be completely diff from existing share hlders We are trying to find out gain / loss for existing shareholders and not new share holders

Lavanya Ravi

CA Final

★ 180

1

34

Spot rate

answered on 14-May-26 10:32

Sir, the spot rate that is compared with the forward rate to arrive at gain or loss is Current spot rate or Spot at future date. And what is the logic behind considering the same? [Video Time Stamp: 18:53]

latest answer

We are assuming future spot rate is same as current spot rate. We are trying to assess if that were the case which of the 3 choices is best suited for the company

Value of contract Vs Price of forward contract

answered on 13-May-26 16:49

Excerpts of the Module ..The value of a forward contract is incorrect because delivery price is not given ..In my view this 37498.11 is price of forward contract not value..Do share your view..

latest answer

Thank you Sir

Mansha Tutlani

CA Final

★ 555

2

30

Future spot will be equal to forward price

answered on 13-May-26 16:29

Sir, in Part 2, if the company anticipates that future spot is same as forward, it won't enter into forward contract. Are we also assuming that the company is not hedged through money market which is advised to follow in part 1? [Video Time Stamp: 15:55]

latest answer

If spot is same as forward then obviously it means no hedge of any form

Dividend on Stock lending

answered on 13-May-26 11:51

Sir, The company has lent the shares for shorting, whether the dividend paid on those shares will be received the company? [Video Time Stamp: 05:45]

latest answer

If I lend you a hen and the hen lays an egg. who does the egg belong to? Egg belongs to the original owner. The person who is holding the hen temporarily has to hand over the egg to the owner Same logic for dividend also If received by the borrower - borrower has to give the dividend to the lender. IN ICAI questions it is assumed that the dividend is originally received by the borrower and hence it has to be reimbursed to the lender

Closing balance with interest

answered on 13-May-26 09:59

Sir, in i) (b) Pooling amount into India, is the deficit in Indian company is met through proceeds from foreign subsidiaries rather than borrowing? [Video Time Stamp: 17:42]

latest answer

Yes

buying swap

answered on 12-May-26 07:58

in case of buying a swap we receive floating and pay fixed right then fixed rate should be 8% know why we are taking 8.2% while calculating ? [Video Time Stamp: 01:06]

latest answer

Bid ask rates are applicable When we borrow we borrow at higher rates Bank will lend at higher rates and bank will borrow at cheaper rate

Hemanth kumar Kapuluru

CA Final

★ 2K+

1

25

Units computation

answered on 12-May-26 11:22

Sir as per my understanding NAV is equity value + debt value /no of units In the question, the fund has invested ₹1,00,000 in equity and ₹1,00,000 in debt, with NAV of ₹40. However, while computing the number of units, only ₹1,00,000 (investment in equity) appears to have been considered instead of the total ₹2,00,000 investment. Could you please clarify why only the equity portion is taken for unit computation and not the combined value of equity and debt investments? [Video Time Stamp: 05:33]

latest answer

Questions clearly says the following: The fund consists of equities only and the ending NAVs of the fund he constructed for the last 10 months are given below: The correct interpretation is - She created a portfolio of Equity and Debt. Equity is invested in Equity MF. Equity MF NAV details are provided in the question

Mhd Mmp

CA Final

★ 585

1

29

Currency appreciation

answered on 11-May-26 20:01

Sir, when the pound depreciates, rupee appreciates. Whether the rupee appreciation is just within this direct quote of GBP-INR or will this lead to an overall appreciation of rupee in a foreign currency market? [Video Time Stamp: 02:12]

latest answer

Currency appreciation and depreciation is usually between two currencies. But the way the whole world is linked, rupee appreciates and depreciates against all western or stronger economies together and its relation to weaker economies than it is different. Also relation with US and other economies is also different - a lot of it depends on int rate differential but some times sentiment also plays a very important role I am talking abt real life

Doubt

answered on 12-May-26 19:21

Sir here they didn't mentioned cash flows are in 000.But we consider them as 000.

latest answer

I took 121000 / 90000 as 121/90

pavan kumar

CA Final

★ 2K+

3

31