Dear students, assalamu alaikum. I welcome you all in this exam focused revenge session series August 122. We are about to conduct the final session of CAF 6 MFA Financial Analysis and Budgeting. The timing of this session would be from 6 5 PM to 9 PM. With suitable breaks. These CSNs can be attended in person at Icap Lahore. The students of other cities and abroad can join us using ICAP students Facebook page. Which is Icap.
CA students. The students on Facebook page can ask their questions in comment section. The material being used today will be available through a link in comment section of the video of this session. On our Facebook page. This will be pinned so that students can find it easily. We have sir, Shweb, Yakub with us for these sessions. Mr. Shoaib Yakub is a renowned financial management trainer and an international mentor with extensive work experience of over 13 years. During this time, Shoaib Yaqoob has mentored thousands of students not only in Pakistan but also across the globe. He has been teaching professional accounting qualifications with a specialization in financial management and advance Financial Management. He is currently associated with one of the leading read at Lahore. Recently, his student got a gold medal in business finance decision. He is also working as unit head treasury at one of the largest banks of Pakistan. Dealing in financial instruments which are close to his core area of teaching. He has a special exam focused teaching style that helps students to handle exam, pressure and to generate excellent results.
Please welcome Mr. Shoaib Yagup. Okay. Introduction all over the globe students or international CA option Contract size currency want to sell contract size currency. in future. Number of contracts. number of contracts contract size contract size company institution. Future decided rate will rise in future. and wants to hedge its position using FRA. FRSFP position F let's say interested Money market has divided by Present value understood discount Price 93. five zero. Here you go. net cost are they? futurely price. $57 million. Future. cell future. ninety-three. 7% Contract size That's meaning.
6 months. 6 months 11. 4. 11 Round of current. may assume 3 months Close the counter, the calculate the effective borrowing cost. If on first April two, zero, X 2, the three month and six months portrait is 6. 5percent. And the September future price is also same ninety-three point five. Six point five six point five Ninety-three ninety-3 point five point five. Point 5 loss Okay. Get the broad step. Into number of contracts Number of contract formula loan divide by contract size. into duration divide by future duration. actually. multiply differential contract size multiply contract size nickel multiply duration of future duration of future Actual landing good thing is gain premium net income $10 million. 13 point 7 five Point1, three, 7, $5 million. exam future Next sum Parnell again working capital. in such a way objective business assets return inventory turnover guys cost of sale divide by average inventory.
or turnover turnover inventory stores inventory stores payable turnover contractual basis holding cost capital cost business cash flow crisis threesixty-five. Cost of goods manufactured Cost of goods manufactured Again working process Sir, raw material current assets. four view regarding management of working capital requirement. If DL does not follow industry average requirement requirement inventory in rupee plus receivable and rupee minus payable in rupee. Industry follow following capital A or B requirement lecture less down any two action that management of DL may take to reduce the length of its cash operating cycle. Cash operating cycle action capital days into 1. 2five. inventory cash operating cycle. should take certain action to follow the industry average. Look at the industry average follow working capital manage inventory round off decimal again.
Fifty-two point. Thirty-eight point. conservative approach. industry industry follow F $10 million. working capital. Working capital 12. 6 2 million, 12. 6 2 million textile companies to cotton procurement cotton buying textile company cotton marks thus number. Busting cost of capital MCU, stomach finance source of finance Cost of capital sales last time. Model paper the model paper or past paper source of an answer question I have a ah MCQ over me.
Private Limited areas. 49 million. is not only revise the syllabus but also made it simple to understand. It is evident that sir has given his best in such short period of time. Please give him big round of applause. In the end, sir, we have certificate and shield as token of appreciation for you. Please, sir.