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Friends, Updating here the recollected questions from Feb 2017 Exams. Wish you all the very best for your exam.
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Interest will be paid on CRR? - No
Commercial papers are issued by - Large banks or large corporate companies
Sarfesi act will be applicable for what amount - Loans with outstanding above Rs 1.00 lac
Budget case study
Time Series 5 qus
Stimulation based 5 qus
5 marks on balance sheet
who's control for market economy
72 is for doubling the investment
working capital finance
Project finance based decision making 5 qus
Case study on corporate financing
Money injected by rbi into economy problems
RBI regulations on lending
What is not a quality of simulation.
Problems on simulation
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Maslow's Hierarchy of Needs
1. Biological and Physiological needs
2. Safety needs
3. Love and belongingness needs
4. Esteem needs
5. Self-Actualization needs
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Defition of YTM
Yield to maturity is the discount rate at which the sum of all future cash flows from the bond (coupons and principal) is equal to the price of the bond.
The Yield to maturity (YTM), book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is the internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity, and that all coupon and principal payments will be made on schedule.
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Types of defaulters
Who has the capacity to pay its dues but does not pay willfully to the Banks/FIs etc.
Who Diverts its funds for its own benefit rather than the benefit of its firm/Company etc.
Who deliberately does not fulfill the purpose of finance i.e. generation of assets to be created out of Bank/FI finance.
Who disposes off or removes its assets without the permission or the knowledge of the Bank/FI.
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Self-Awareness
Understanding self helps in the process of self-development
Johari Window by Luft and Ingham
The more one knows oneself, the better equipped he is to face challenges
|
KNOWN TO SELF |
NOT KNOWN TO SELF |
KNOWN TO OTHERS |
ARENA |
BLIND |
NOT KNOWN TO OTHERS |
CLOSED |
DARK |
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Case Studies on Ratio Analysis (Quick Ratio, Current Ratio, Inventory Turn over Ratio, DSCR)
XYZ Pvt Ltd has the following assets and liabilities as on 31st March 2016 (in Lakhs) :
Non Current Assets
Goodwill 75
Fixed Assets 75
Current Assets
Cash in hand 25
Cash in bank 50
Short term investments 45
Inventory 25
Receivable 100
Current Liabilities
Trade payables 100
Income tax payables 60
Non Current Liabilities
Bank Loan 50
Deferred tax payable 25
Find the Quick Ratio
Quick Ratio = (Cash in hand + Cash at Bank + Receivables + Marketable Securities) / Current Liabilities
= (25+50+45+100) / 160
= 220 / 160
= 1.38
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Cash = Rs. 100000
Debtors = Rs. 200000
Inventories = Rs. 300000
Current liabilities = Rs. 200000
Total current assets = Rs. 600000
The quick ratio = ?
Since Quick ratio = Quick asset / CL
Here Quick asset = CA - Inventory
Now CA= (Cash + Debtor.....etc ) = Rs. 600000
Here inventories = 300000/-
So, Quick Assets = 600000 - 300000 = Rs. 300000
CL = Rs. 200000
Hence QR = 300000/200000
i.e 1.5:1
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Current ratio of a unit is 3:1 and quick ratio is 1:1. The level of current assets is Rs 15 lac. What is the amount of quick asset?
Since CR = CA: CL
CR= CA:CL = 3:1
i.e. 15:CL= 3:1
i.e CL = 5 lac
Now QR= 1:1
Since QR= Quick asset/CL ( here quick asset is CA-Inventory )
Hence QA= CL ~ 5 lac
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A firm has Capital of Rs. 200, Reserve Rs. 230 Term Loan of Rs. 180, Advance from customers Rs. 40, sundry creditor Rs. 100, Bank CC limit balance Rs. 400, Fixed Assets Rs. 300, Preliminary expenses Rs. 80, Debit balance of profit and loss account balance Rs. 30, advance tax paid Rs. 20, cash on hand Rs. 20, Stock Rs. 400 and sundry creditor Rs. 300. on the basis of the above information:
The current ratio would be ......
Current Ratio=Current Assets / Current Liabilities
CA=(20+20+400+300)=740
CL=(40+100+400)=540
= 740/540
= 1.37:1
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Govind's Furniture Company sells industrial furniture for office buildings. During the current year, it reported cost of goods sold on its income statement of 10,00,000. Govind's beginning inventory was 30,00,000 and its ending inventory was 40,00,000. Govind's turnover is ...... times.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
= 1000000 / ((3000000+4000000)/2)
= 1000000 / (7000000/2)
= 1000000 / 3500000
= 0.29 Times
This means that Govind only sold roughly a third of its inventory during the year. It also implies that it would take Govind approximately 3 years to sell his entire inventory or complete one turn. In other words, Govind does not have very good inventory control.
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Raju's Furniture Company sells industrial furniture for office buildings. During the current year, Raju reported cost of goods sold on its income statement of 25,00,000. Raju's beginning inventory was 40,00,000 and its ending inventory was 60,00,000. Calculate Raju's Furniture Company's Inventory Turnover Ratio.
Inventory Turnover Ratio = Cost of goods sold / Average inventory for that period
= 2500000 / ((4000000 + 6000000)/2)
= 2500000 / 5000000
= 0.5
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The amount of term loan instalment is Rs 15000/- per month, Monthly average interest on TL is Rs 10000/-. If the amount of depreciation is Rs 30000/- p.a and PAT is Rs 300000/-. What would be the DSCR?
Since DSCR = (interest + PAT + Depriciation) / ( interest + instalment of TL )
= (10000×12 + 300000 + 30000)/(10000×12 + 15000×12)
= (120000 + 330000) / (120000 + 180000)
= 450000/300000
= 1.5
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The amount of term loan installment is Rs 15000/- per month, monthly average interest on TL is Rs 7500/-. If the amount of depreciation is Rs 100000/- p.a and PAT is Rs 350000/-. What would be the DSCR?
Since DSCR = (interest + PAT + Depriciation) / (interest + instalment of TL)
DSCR = (7500×12 + 350000 + 100000)/(7500×12 + 15000×12)
= (90000 + 350000 + 100000) / (90000 + 180000)
= 540000 / 270000
= 2
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