Forward contract

raghav (aarticle assistant) (61 Points)

17 December 2012  

HELLO,

 IF ANY ONE HAVE A GOOD KNOWLEDGE REGARDING CEMENT PURCHASE .. PLEASE LET ME KNOW REGARDING...

 I AM CARRYING OUT AN INTERNAL AUDIT WORK AT A MANUFACTURING COMPANY ... WHERE THERE WOULD BE A CONTINUOS PURCASE OF CEMENT  .... i observed a fluctuation of price of cement from 135 to 240 rupees ... now i have a doubt whether this company can enter into a forward contract ... at a price where both the supplier and purchaser are comfortable with( and is supplied with the same price through out the length of the agreement ) and so then the company can be saved to some extent in cases of price hike