I had started articleship from 06.03.2007 & i m working till now & my final exam attempt is due in May 2009.I have taken only 10 days of leave during my articleship tenure. Now I m thinking of leaving my firm & go on holidays for doing studies for my final exam. I am eligible for 104 days of leave during these 20 months period. then will i be eligble for my final attempt if i dont join a new firm & if i dont join a new firm whether the sign of any practising CA can be taken on the exam form.

Dear Experts,
I am CPT qualified student undergoing CA Articles period . I am going to attend my PCC Exam this May2009.I was about to take study leave for 3 Months but the collegues in the office says that only 2 months will be provided for Study leave . So before approching my Boss i interested to know that how many days is eligible to take leave during the articles period for the new Scheme under PCC .

Hi
What is the basic difference between arrears of rent as covered by sec 25B and unrealised rent reffered to in sec 25AA of income tax act
Further when sec 25A is applicable and when sec 25AA.i have read both but both sounds akin
Thanks in advance

hi, this is amit. i qualified my CA in may 2008 in multiple attempts so far i am running business with my father but now i am interested to go to job and trying for it but not get suceess so far for last 3 months i want to know can my multiple attempts in CA create hurdle in my career.

Dear Experts,
Section 234B under income tax act says that no interest is payable if the advance tax exceeds 90% of tax payable.Whether in this concern TDS can be taken as advance tax?

Hi guys,


I started my business in April 2008 with GTO crossing 2 crore in two quarters.

Now I have a peculiar problem, funding all the activities of the business.

My client needs 30 days credit, but the suppliers arnt ready for credit terms.

I tried convince my client to get done with LC so that I may get some funding from the bank.


My bank is Kotak Mahindra and they have a facility of OD.

They give OD's only to those who have income proof's.

But earlier, I know, many banks give OD's on the basis of transactions.

I can get funds from third source, like local money lenders, but that will make my investments "BLACK MONEY" which I dont want.

But I am just helpless getting fundings done.

Any suggestions ?

which is the last attempt for final old course is it Nov'2009 or May'2009

3. (a) Walter’s Approach:

A company has a book value per share of Rs. 150. Its return on equity is 15% and it follows a policy of retaining 60% of its earnings. If the opportunity cost of capital is 18%, what is the price of the share today. According to Walter’s approach.


(c) Foreign Exchange:
The price of the pound sterling was quoted at $1.80 in New York and on the same date the DM spot rate was quoted at $.40.
• What would you expect the price of the pound to be in Germany?
• If the pound qas quoted in Frankfurt at DM 4.40/pound, what would you do to profit from the situation?

please send your answers to psrinivas1@in.com

2. Samreen Ltd is considering an investment in one of the two mutually exclusive proposals – Projects p1 and p2 , which require cash outlays of Rs.3,40,000 and Rs. 3,30,000 respectively. The certainty equivalent (C.E.) approach is used in incorporating risk in capital budgeting decisions. The current yield on government bond is 8% and this be used as the risk less rate. The expected net cash flows and their certainty equivalents are as follows:





Project P1 Project P2
Year-end Cash Flow C.E. Cash Flow C.E.
1 180000 .6 180000 .8
2 200000 .8 180000 .7
3 200000 .7 200000 .8

Present Value factor os Rs. 1.00 discounted at 8% at ehe end of the year 1,2,3 are .926, .857 and .794 respectively. You are required to find out:-
I. Which project should be accepted?
II. If risk adjusted discount rate method is used, which project would be analysed with a higher rate?


please send your answers to psrinivas1@in.com

1. A company is considering the replacement of its existing machine which is obsolete and unable to meet the rising demand for its product. The company is faced with two alternatives: to buy Machine A which is similar to the existing machine or to go in for Machine B which is more expensive and has much greater capacity. The cash flows at the present level of operations under the two alternatives are as follows:-


Machine Immediate Cash outflows Cash inflows (in lakhs of Rs.) at the end of
(in lakhs of Rs.) 1st IInd IIIrd Ivth Vth
year year year year year
Machine A 25 - 5 20 14 14
Machine B 40 10 14 16 17 15

The company’s cost of capital is 10%

The finance manager tries to appraise the machines by calculating the following :
1. Net Present Value
2. Profitability Index
3. Payback period; and
4. Discounted payback period

At the end of his calculations, however, the finance manager is unable to make up his mind as to which machine to recommend.

You are required to make these calculations and in the light thereof to advise the finance manager about the proposed investment.

Note: Present values of Re.1 at 10% discount rate are as follows:

Year 0 1 2 3 4 5
P.V. 1.00 .91 .83 .75 .68 .62