1) 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.
2) 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.
3) 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.
4) 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?
5) 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
6) 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.
7) 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 %?
Answered all your queries in your previous doubt, please refer the same. Thanks!!!