1) (May 2019 – Case study 3 – Attached –  RM May 19 SA

In the product mix, EBIT would increase by 4% for every increase of 10% of manufacturing cotton yarn and a decrease of ` 10 lakhs for every decrease of 10% in manufacturing of polyester yarn. Which of the following would be the ideal mix of cotton yarn and polyester yarn products?

Answer 70% : 30%

2) ) (May 2019 – Case study 3 – Attached)

The economic risks faced by the company would LEAST likely to include which of the following?

(A) disruptions in a production process

(B) lapsing of deadlines for construction of a new operating facility

(C) payment of contractual penalties for delayed sales

(D) hike in the price for raw materials

Answer :payment of contractual penalties for delayed sales – What to check for economic risks? How is option (A) and (B) economic risks?

3) (Nov 2019 Case study 3 Attached RM Nov 19 SA

The proposal to engage the service provider at Hyderabad is an example of:

(Answer : Risk Mitigation) – Shouldn’t it be Risk Transfer (which is also one of the options)?

4) Nov 2019 Case Study 2

If the tolerable limit for exception was 6% in the case of cement mortar sampling, the most likely conclusion would be:

(Answer : the control risk is high –  Please explain how we have arrived at this option, how control risk is high?)

4) July 2021 – Case study 1 Attached RM Jul 21 SA

What is the meaning of Soft elements that influence risk appetite? I was thinking risk capacity and risk Maturity would be appropriate answer.

5) July 2021 Case study 2

During the review of receivables, the CFO found that a bill amounting to GBP 10,00,000 was overdue for payment for more than 30 days. The CFO has asked you to verify whether the overdue bill has been crystallized by the Authorised Dealer by applying correct exchange rate. Which one of the following is the correct exchange rate for crystallization of the overdue export bills ?)

Answer : TT selling rate – How selling rate please explain? Shouldn’t it be TT buying rate as we would be selling GBP and counter party would buy at TT buying rate.

6) July 2021 – Case study 4

If the working of the company is showing indicators such as (i) reliance on long term debts;(ii) offering longer credit period, (iii) higher level of inventory, (iv) rapid decreasing sales and (v) deteriorating current ratio, which of these indicators are reflections of ‘overtrading’ in the context of working capital management?

Answer : (ii), (iii) and (v) only. – Please explain what is overtrading and how it leads to higher inventory level.

7) July 2021 – Case study 4

How much increase in the cash credit is required in order to fund increased working capital requirements of OTL ? Give reply through stepwise calculation.

– ICAI has reduced Rs 8 lakhs from sales of Rs 280 lakhs to arrive at COGS. Is it assumed that EBIT (current EBIT – 4 lakhs) has also increased by 100% with increase in sales by 100% in next year. From where did they get Rs 8 lakhs?

8) Nov 2020 MTP – Case study 3 Attached RM MTP 1 Q

The standard deviation of annual return on equity stock of Facelift Ltd. during six year period (2014-2019) is

Answer : (D) 1.06%

Solution attached, is my solution approach correct? Nov 20 RM MTP Q 3.1

9) ICAI Case study digest – Case study 16 Attached Case study RM 16 ICAI

Deposits of the Bank indicates that –

(a) growth is not uniform y-o-y
(b) financial risk associated through closure of accounts is high.
(c) bank has not put in place system of retaining customers
(d) risk perception of the Bank is high.

How is the Answer (C) when the deposits have increased over the year which it indicates customers are retained. None of the answers seem correct.

10) RM Book 1 In- House Case study 27

Please explain the general approach. Why have we taken 1.5% in PVAF of periodic amout to be amortized? Also in the table how have arrived at the cash flow 10.625,10.250..?  How did we decide that IRR would be between 2 – 3 %?

Please find the CA Final RM July 2021 Paper Deep Dive Analysis by Sanjay Saraf Sir attached in Answer Section

This is basically a descriptive mapping sheet, which contains all the descriptive questions asked in past papers and MTP’s linked to chapters that such question refers too. So to tackle any descriptive question in exam, just read the question, refer to the sheet and you get a fair idea from which chapter this question is asked. So you can directly see the sheet and see if any sort of similar question is asked in past papers or MTP’s— If yes then we just have to copy paste the ICAI’s answer (this can be helpful because ICAI has provided limited number of descriptive questions)

PFA in the answer section.

PFA in answer section an important Case Study On ‘Country Risk’ for CA Final RM.

PFA Mapping Sheet of Risk Mgt Book2 by Sanjay Sir

PFA MAPPING SHEET

PFA Case 25

PFA CASE 22,23&24

PFA CASE21

PFA CASE 20

PFA CASE 19

PFA 6 docs:

• CHAPTER 2 SOURCE AND EVALUATION OF RISKS–Annotated Notes & Mapping Sheet
• CHAPTER 3 RISK MANAGEMENT –Annotated Notes & Mapping Sheet
• CHAPTER 4 EVALUATION OF RISK MGT. STRATEGIES–Annotated Notes & Mapping Sheet

PFA 6 docs:

• RM Lecture Note Class 19 & 22
• Chapter 7 Corp.Governance Annotated Notes & Mapping Sheet
• Chapter 8 ERM Annotated Notes & Mapping Sheet

PFA:

• RM Lecture Note Class 15-18
• Credit Risk MCQ (upto Q70)
• Credit Risk Mapping Sheet
• Operational Risk Annotated Notes
• Operational Risk Mapping Sheet
• Emerging IT Risk (part of Op.R.)

PFA CASE 18

PFA Case Study 17 of Sanjay Sir’s In-House Case Study Series

PFA Case Study 16 of Sanjay Sir’s In-House Case Study Series

CA Final Risk Management Chapter 6: Credit Risk 

• Annotated Notes (ICAI Mat)
• MCQ (Q1-24)

PFA in the answer section:

1. CA Final RM Lecture Notes Class 14 (conducted on 27th Jan 2021)

PFA Case Study 10, 11, 12, 13, 14 & 15 of Sanjay Sir’s In-House Case Study Series

PFA in the answer section:

1. CA Final RM Lecture Notes Class 13 (conducted on 25th Jan 2021)

CA Final Risk Management Chapter 5: Risk Model Annotated Notes (ICAI Mat)

pfa in the answer section

PFA in the answer section:

1. CA Final RM Lecture Notes Class 12 (conducted on 22nd Jan 2021)

PFA in the answer section:

1. CA Final RM Lecture Notes Class 11 (conducted on 21st Jan 2021)