Latest news with #financialstatements
Al Bawaba
2 days ago
- Business
- Al Bawaba
How to manage FX exposure around the world?
Companies that operate in several countries often have to convert into different currencies, which exposes them to currency risks, which if not addressed properly can become a significant problem. Foreign exchange markets are dynamic and they are sensitive to global developments such as geopolitics, wars, trade wars, and many more which makes it difficult to predict which currency will gain the upper hand. This is why companies need to have specific knowledge of these risks and strategies to mitigate Forex exposure risks effectively. Let's briefly review the main methods to manage FX exposure and analyze the best-known cases when companies effectively manage those risks. FX exposure types Forex is a popular market where trillions of dollars are traded daily, making it important to understand its dynamics. Both investors and traders should know how to protect against FX risks to reduce the chances of losses. There are several types of Forex exposure such as transaction, translation, and economics. Transaction risks happen when companies enter into foreign currency payables or receivables and become exposed to exchange rate risk and losses. Corporations hedge these risks using forward contracts, futures, and swaps which allow them to lock in rates or invoices in their home currency to transfer risk. Translation exposure also known as accounting exposure is when financial statements of foreign subsidiaries are converted into the parent company's reporting currency. This can potentially cause reported asset and liability values to change because of exchange rate fluctuations. While it does not create a cash flow risk, it still presents challenges for companies. The economic exposure also referred to as operating exposure simply reflects the impact of these rate changes on the firm's future cash flows and ultimately competitive position. This type of exposure is more difficult to calculate as it has a long-term effect on market value. To mitigate operating risks, companies should employ hedging strategies, including hedges and options. How to manage FX risks - best practices Managing FX risks is an important aspect of operating multinational businesses. Companies usually have a board-approved FX policy which includes a list of authorized instruments, hedge ratios, and reporting standards. This makes risk management very structured and effective. Corporate hedging often includes senior management oversight and periodic policy reviews, to ensure both strategic objectives and regulatory requirements are met. Corporations typically have dedicated risk management teams that execute hedges, and set counterparty limits. Business units provide transactional forecasts and operational insights. How to identify and measure the exposure To execute hedge and other FX risk management strategies, companies first need to identify and measure the exact exposure type and forecast impact. Real-time data, scenario modeling, and value-at-risk metrics help companies identify and quantify exact exposures across currencies. Effective measurement is concluded using unified dashboards that offer the ability to get all needed information and run what-if scenarios, analyzing currency movement's impact on projected cash flows. Hedging strategies After defining the types of risk and possible amounts and currencies involved it is time to mitigate those risks using various well-tested strategies. There are several methods available to ensure currency risks are minimized on the company's cash flow and financial statements. Natural hedges Natural hedging tries to marry foreign revenue with local costs. Basically, it sources inputs in the same currency as sales which reduces the need for financial instruments. This can be a very effective technique to mitigate some of the FX exposure risks. Forward and futures contracts Forward and futures contracts are powerful instruments to hedge against foreign exchange rate risks. These contracts allow participants to lock in future rates of exchange between involved currencies. This can be super important when dealing with an uncertain future where the forecast is difficult. Using these instruments, companies can ensure that their cash flow is stable even in adverse market movements. Having access to locked rates for predetermined data provides certainty on transaction costs. Swaps Forex swaps exchange principal and interest payments in different currencies. This is super useful to manage short-term and long-term funding and exposure which is crucial for international companies. Options and structured products Options are also contracts that grant the right but not the obligation to transact at predetermined rates. They are similar to futures contracts but without obligations. By locking the rates, options offer effective downside protection with upside participation. In other words, it limits losses if the asset falls but still profits if it rises. Best operational practices Some companies have a centralized treasury which allows them to reduce transaction costs, and improve hedging consistency by netting positions internally. The decentralized model, on the other hand, offers local autonomy and quicker decision-making. Many companies employ a hybrid structure to get the benefits from both models. Managing large capital is not easy and many transnational companies have integrated treasury management systems (TMS) to automate deal capture, confirmation, accounting, and generate real-time analysis. These systems can reduce operational risks and provide efficiency, but companies still need to check and monitor their automated systems to eliminate bugs and other errors. Another practical method is to diversify banking and non-bank counterparties to limit concentration risks. By establishing credit lines and netting agreements, companies ensure counterparty exposure remains within the threshold that was approved by management. Case studies - Success stories to learn from There are many cases where companies that operate in many different countries employed FX exposure risk management effectively and avoided losses. Apple's treasury hedges most of its projected foreign-currency cash flows. It uses a blend of forward contracts and options to stabilize earnings and reduce financial risks of FX exposure. Airbus typically manages long-term hedge portfolios with a maturity of several yours, which helps it cover net USD sales. It also employs natural hedges to smooth profitability from large commercial aircraft contracts. In 2022, Coca-Cola HBC responded to the strong US dollar by calibrating its derivative positions. It shifted hedge notions and maturity profiles to mitigate currency risks and preserve a stable cash flow. Starbucks Corp. Starbucks has 'price-to-be-fixed' contracts and Forex forwards to mitigate currency volatility costs in coffee bean purchases. This enables it to have stable expenses despite commodity price surges. Starbucks is an interesting case, as it directly employs these contracts to lock in future price rates and ensure profitability even if the prices surge for beans.
Associated Press
4 days ago
- Business
- Associated Press
Sparta Capital Announces Filing of Interim Financial Statements
Not for distribution to U.S. Newswire Services or for dissemination in the United States of America. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws. TORONTO, ON / ACCESS Newswire / June 1, 2025 / Sparta Group (TSX.V:SAY) (the 'Corporation' the 'Company', 'Sparta Group', 'Sparta Capital', 'SAY.V' or 'Sparta') has announced that it has filed its interim financial statements for the three-month period ended March 31, 2024, and the related management's discussion and analysis. The filings can be accessed under the company's profile at The Alberta Securities Commission, as the principal regulator of the company, issued a failure-to-file cease trade order (FFCTO) against the company under Multilateral Instrument 11-103, Failure-To-File Cease Trade Orders in Multiple Jurisdictions, prohibiting the trading in or the purchasing of any securities of the company by any person or company in Canada, including trades in the company's shares made through the TSX Venture Exchange, except in accordance with the following conditions, for so long as the FFCTO order remains in effect: a beneficial security holder of the company who is not, and was not at the date of the FFCTO, an insider or control person of the company, may sell securities of the company acquired before the date of Feb. 3, 2025, if both of the following apply: (a) the sale is made through a foreign organized regulated market, as defined in Section 1.1 of the universal market integrity rules of the Canadian Investment Regulatory Organization; and (b) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. The company has filed a revocation application to revoke the Failure to File Cease Trade Order. The company will provide further updates as they become available. About Sparta Sparta Group (a.k.a. Sparta Capital Ltd.) is a technology-based company focused on integrating emerging technologies. It operates with a decentralized business model, with each active business functioning as a separate subsidiary. Sparta's business entities fall into three different divisions: Environment: ERS International, is a waste management operation with its state-of-the-art, proprietary e-waste processing technologies. ERS is dedicated to continuous innovation, as well as increased sustainability and security for both the company and its customers. It offers a unique carbon credit program and has attracted significant attention from companies that deal with big data and the need to reduce carbon footprint. ERS has operations in Canada, the Middle East and South America. Health: Sparta Health Corporation is a vertical harnessing the power of Artificial Intelligence (AI), Machine Learning (ML), and Augmented Reality (AR), to develop technologies that enhance personalized patient care and improve treatment outcomes. Transportation: TruckSuite™, is a comprehensive suite of products and services designed to keep trucks operational and drivers competitive. TruckSuite management believes their offerings can play a pivotal role in enhancing the logistics and transportation industry. Sparta is a publicly traded company listed on the TSX Venture Exchange Inc. under the symbol 'SAY' (TSX.V: SAY). Additional information is available at or on SEDAR at For more information contact: Tony Peticca, President Email: [email protected] Telephone: 416-648-6506 This above may contain 'forward-looking information' within the meaning of applicable securities laws. When used in this address, the words 'estimate', 'project', 'belief', 'anticipate', 'intend', 'expect', 'plan', 'predict', 'may' or 'should' and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of publication of this information and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release SOURCE: Sparta Capital Ltd. press release
Yahoo
4 days ago
- Business
- Yahoo
Sparta Capital Announces Filing of Interim Financial Statements
Not for distribution to U.S. Newswire Services or for dissemination in the United States of America. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws. TORONTO, ON / / June 1, 2025 / Sparta Group (TSX.V:SAY) (the "Corporation" the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") has announced that it has filed its interim financial statements for the three-month period ended March 31, 2024, and the related management's discussion and analysis. The filings can be accessed under the company's profile at The Alberta Securities Commission, as the principal regulator of the company, issued a failure-to-file cease trade order (FFCTO) against the company under Multilateral Instrument 11-103, Failure-To-File Cease Trade Orders in Multiple Jurisdictions, prohibiting the trading in or the purchasing of any securities of the company by any person or company in Canada, including trades in the company's shares made through the TSX Venture Exchange, except in accordance with the following conditions, for so long as the FFCTO order remains in effect: a beneficial security holder of the company who is not, and was not at the date of the FFCTO, an insider or control person of the company, may sell securities of the company acquired before the date of Feb. 3, 2025, if both of the following apply: (a) the sale is made through a foreign organized regulated market, as defined in Section 1.1 of the universal market integrity rules of the Canadian Investment Regulatory Organization; and (b) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. The company has filed a revocation application to revoke the Failure to File Cease Trade Order. The company will provide further updates as they become available. About Sparta Sparta Group (a.k.a. Sparta Capital Ltd.) is a technology-based company focused on integrating emerging technologies. It operates with a decentralized business model, with each active business functioning as a separate subsidiary. Sparta's business entities fall into three different divisions: Environment: ERS International, is a waste management operation with its state-of-the-art, proprietary e-waste processing technologies. ERS is dedicated to continuous innovation, as well as increased sustainability and security for both the company and its customers. It offers a unique carbon credit program and has attracted significant attention from companies that deal with big data and the need to reduce carbon footprint. ERS has operations in Canada, the Middle East and South America. Health: Sparta Health Corporation is a vertical harnessing the power of Artificial Intelligence (AI), Machine Learning (ML), and Augmented Reality (AR), to develop technologies that enhance personalized patient care and improve treatment outcomes. Transportation: TruckSuite™, is a comprehensive suite of products and services designed to keep trucks operational and drivers competitive. TruckSuite management believes their offerings can play a pivotal role in enhancing the logistics and transportation industry. Sparta is a publicly traded company listed on the TSX Venture Exchange Inc. under the symbol "SAY" (TSX.V: SAY). Additional information is available at or on SEDAR at For more information contact: Tony Peticca, PresidentEmail: tony@ 416-648-6506 This above may contain "forward-looking information" within the meaning of applicable securities laws. When used in this address, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of publication of this information and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release SOURCE: Sparta Capital Ltd. View the original press release on ACCESS Newswire
Yahoo
5 days ago
- Business
- Yahoo
PetroFrontier Corp. Provides Update on the Delay in Filing of its 2024 Annual Financial Statements and Announces Delay in Filing of its Q1 Interim Financial Statements
Calgary, Alberta--(Newsfile Corp. - May 31, 2025) - PetroFrontier Corp. (TSXV: PFC) ("PetroFrontier" or the "Company") announces that, further to its news releases issued on May 2 and 16, 2025 whereby the Company announced that the Alberta Securities Commission issued a management cease trade order ("MCTO") to PetroFrontier pursuant to its application under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") in respect of the default regarding the delay of the filing of its annual financial statements, accompanying management's discussion and analysis and related chief executive officer ("CEO") and chief financial officer ("CFO") certifications for the financial year ended December 31, 2024 (collectively, the "Annual Filings"), PetroFrontier is experiencing continued delays with respect to the Annual Filings related to the receipt of financial information and other required information from the general partner of the Company's limited partnership investment. The continued delays have impacted the ability of the Company's external auditor to complete the audit. The Company currently anticipates that it will be in a position to file the Annual Filings on or before June 26, 2025. The Company further announces that as a result of the delay in filing the Annual Filings, the Company's interim financial statements for the three months ended March 31, 2025, the accompanying management discussion and analysis and related CEO and CFO certifications ("Q1 Filings") will not be filed by the prescribed deadline of May 30, 2025. The Company currently anticipates that it will be in a position to file the Q1 Filings on or before July 10, 2025. An extension to the MCTO has been sought and is under consideration, however, there is no certainty that the extension will be granted. The Company confirms that, other than as disclosed in its news releases dated May 2 and 16, 2025, or as set out herein, there is no other material information concerning the affairs of the Company that has not been generally disclosed. The MCTO prohibits the CEO and the CFO from trading in securities of PetroFrontier for so long as the Q1 Filings are not filed. The issuance of the MCTO does not affect the ability of persons other than the CEO and the CFO of the Company to trade in the Company's securities. Until the Annual Filings and Q1 Filings have been filed, the Company confirms that it intends to continue to satisfy the provisions of the alternative information guidelines specified in NP 12-203 for so long as it remains in default as a result of the late filing of the Annual Filings and Q1 Filings by issuing biweekly default status reports in the form of further news releases. About PetroFrontier Corp. PetroFrontier is a junior energy company currently focused on developing two Mannville heavy oil plays in the Cold Lake and Wabasca areas of Alberta. PetroFrontier's head office is in Calgary, Alberta and its common shares are listed for trading on the Exchange under the symbol "PFC". For More Information ContactKelly Kimbley, CEO & DirectorPetroFrontier 700, 903 - 8 Avenue Alberta, Canada T2P 0P7Telephone: (403) 650-6355Email: info@ Forward-Looking Information and Risk Factors This news release contains statements and information that may constitute "forward-looking information" within the meaning of applicable securities legislation, including statements identified by the use of words such as "will", "expects", "positions", "believe", "potential" and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include, but is not limited to, information concerning the estimated filing dates of the Annual Filings and Q1 Filings. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. Some of these risks include, but are not limited to, the risk that the Annual Filings and Q1 Filings are filed later than anticipated, the risk that the Company's MCTO is revoked for any reason, in which case there is a risk that trading in the Company's securities may halted by the TSX Venture Exchange and/or cease traded temporarily by the Canadian securities commissions until such time as the Annual Filings and Q1 Filings are filed on SEDAR+. Additional information regarding risks and uncertainties of the Company's business are contained under the heading "Business Risks and Uncertainties" in the Company's Management's Discussion & Analysis for the condensed interim consolidated financial statements for the nine months ended September 30, 2024 and the Company's other public filings which are available under the Company's profile on SEDAR+ at Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. In connection with the forward-looking information contained in this news release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information contained in this news release is made as of the date of this news release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice. To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
How to Read Financial Statements Before Investing in Stocks
PUNE, INDIA / / May 31, 2025 / -Investing in the stock market can be rewarding, but smart investing starts with knowing how to read financial statements. These documents reveal a company's financial health and are essential for evaluating whether a stock is worth your money. Whether you're a beginner or an experienced investor, understanding financial statements helps you make informed decisions-especially when using free Demat account apps like Bajaj Broking to manage your investments on the go. Why Financial Statements Matter in the Stock Market Before you buy a stock, you're essentially becoming a part-owner of that company. Wouldn't you want to know how well it's doing? That's where financial statements come in-they provide insights into the company's revenue, expenses, assets, liabilities, and profitability. These three main financial documents are vital: Balance Sheet Income Statement (Profit & Loss Statement) Cash Flow Statement Let's break down how to read each one. 1. Balance Sheet: Understand a Company's Net Worth The balance sheet shows what a company owns (assets) and what it owes (liabilities), as well as shareholder equity. Key elements to analyze: Assets vs. Liabilities: A healthy company typically has more assets than liabilities. Debt-to-Equity Ratio: Lower ratios are generally safer, especially in volatile stock market sectors. Working Capital: The difference between current assets and liabilities shows short-term liquidity. Quick Tip: Compare year-on-year balance sheet data to spot trends. Many free Demat account apps, such as Bajaj Broking, offer access to this data directly within their stock analysis features. 2. Income Statement: Check Profitability Also called the Profit & Loss statement, this document shows the company's revenue, expenses, and net profit over a specific period. Look for: Revenue Growth: Is the company consistently increasing sales? Net Profit Margin: Indicates how much profit is generated from total revenue. Operating Income: Reflects core business profitability, excluding one-off items. Quick Tip: Steady growth in both revenue and profit is often a sign of a fundamentally strong stock. 3. Cash Flow Statement: Gauge Financial Stability The cash flow statement details how money moves in and out of the business, focusing on operations, investments, and financing. Key focus areas: Positive Operating Cash Flow: Suggests that the business model is working. Free Cash Flow: A company with consistent free cash flow can reinvest and pay dividends. Cash Reserves: Critical for withstanding economic downturns in the stock market. Tools to Make It Easier Modern free Demat account apps simplify access to financial data, allowing you to: View 5-year financial trends Analyze ratios like P/E, ROE, and EBITDA Set alerts for earnings and results announcements Final Thoughts Reading financial statements may seem daunting at first, but with regular practice and the right tools, it becomes second nature. If you're venturing into the stock market, these statements are your best resource for filtering hype from reality. Open a free Demat account app like Bajaj Broking to start tracking and analysing your favourite stocks today-because informed investing begins with understanding the Details:Name - Marketing PlannersMobile number - 9811815536Designation - Content MarketingWebsite - SOURCE: Bajaj Broking View the original press release on ACCESS Newswire
