IIBF & NISM Adda

Sunday, 29 March 2020

RECOLLECTED JULY 2019 IIBF ALL EXMS

In today's microfinance exam questions from,

1. Chikola group

2. Rrb bank established in the year

3. Rbi act, rrb act,

4. Bank rakyat Indonesia

5. Malegam committee recommendation

6. Shg bank linkage program

7. Sewa bank

8. Break even analysis also named as

9. As 2 deals with

10. Examples of cash flow like travel expenses interest expenses

11. 2 numericals from break even anaysis

12.average case load formula

13. Question from relationship risk

12.

Recollected Questions 21.07.2019 IT security recollected on 21.07.2019

ROBO backup

Skimmer and shimmer

RFID and Barcode shortcomings

ISO 27001

After Jillani committee 1996

What IT act took place

Downstream liability

Routers

A/B testing

VoiP eavesdropping

User level controls

PCI DSS

HIPAA

Defence in Depth

Green servers

Blade servers

E -wastes

Scavenging

ATM jitter

Mobile banking

TCP IP

VLAN

Cyptography

Steganography

IDS DNS

CLOUD computing

Threats

Vulnerability

SQL Injection

Cyber terrorism

Viruses worms

Malware

Stuxnet

Fault tolerence

Business continuity and Disaster recovery

DTP

Many case studies were there - calculations of duration,MD,convexity, mclr related problem, cal of market, credit risk weighted assets,

CTP

Certified treasurey professional questions dated 14.7.19

Friends to be honest paper was easy compared with the one dated 27.4.19

The following are the questions given

Numerical related to

FRA

Commercial paper numericals around 6-7 and also individual questions related to cp and cd such has issuers and maximum limit and minim limit and

Questions related to various measures of options : delta , gamma,rho,

Numericals on bond prices

Numericals of auctions

Dutch auction

French auction

Novation definition

Liquidity related questions

Direct quote

Reinvestment risk

Futures

Qustions related to bond yield

Transfer pricing

ECB

Option coupon bond

Zero coupon bond

The questions were mostly numericals so pleae go through the reference book

All d best friends

ISB

information System Banker Recollected questions

CyAT

CAA

Digital Signature

BCP

Digital forensics

Normalisation

Internal audit

DBA responsibility

Telecommunications system audit

Power off switches

Cyber terbunal judge or magistrate

DS reissuance

Central depository of DS

Audit trail significance

Bottom up methodology

Audit plan

BCP

IDS

Virtual keyboard

IFMS full from

EFT

RBIA

Inherent risk

Insider threat

IS Audit policy

Information security officer role

DBA responsibility

Stress testing

BCNF

Critical applications

Poor architecture system

SDLC

Prototyping model

RTO application

IT Act 2000

Punishment for copyright as per IT Act

Controller of Certifying Authorities operates the National Repository of Digital Signatures (NRDC)

Function of modem, which is not an OOP Lang. C C++ Java C#, questns abt DRP, Trojan horse, sniffing, spoofing, availability, integrity, DBMS, preventive, corrective, detective controls, BCP

DDL DML DCL TCL commands, CA CCA-Digital certificates

Digital signature complete

Cyber apellate tribunal presiding officer

System testing

Compliance testing

Substantive testing

Telecom control

Db forms

Db commands

Risk based audit

It audit

Dba roles n resp

Prototyping model

Sdlc full

Interface testing

Rbeit ltd reg it subsidiary of rbi

Non repudiation

Bot stroke worms

Certified information System Banker

13.01.2019 3 PM Batch

Moderate Difficulty

Passing Mark 60

Each question carries 1 mark ( 100 questions )

Scored 55 marks

Recollected questions

DR centre location

Data warehouse

Audit charter/policy

Is audit 5 -10 questions

RAM and cache memory

Static RAM

Metadata

Which DB model used in CBS

Characteristics of a table

Many to Many relationship in DB

Simple ,self,outer join

Adaptive maintenance

Multiplexing

Packet switching

Full Duplex method

Bridge,router,switch,gateway

Diff between router and switch

Function of osi model layers 5 questions

Which protocol used in banking http,smtp,tcp/ip

Real time processing

Emergency response

Mirror site and reciprocal agreement

Trojan horse

E money

INFINET

CFMS

SFMS

Spoofing, piggybagging

Pervasive principle in GASSP

Classification of control

Boundary sub system

Audit trail

Attenuation

Types of noise (cross talk)

False positive and negative

Firewall

Intrusion detection systems and tuning

In what circumstances user ID and password will be given to user(emergency access)

Remote Access

OS tasks

Travelling virus procedure

Public and private key encryption

ISB Recollected Questions and Exam Tips june18::::

Function of modem, which is not an OOP Lang.

C C++ Java C#, questns abt DRP,

Trojan horse, sniffing, spoofing, availability, integrity, DBMS, preventive, corrective, detective controls, BCP

International trade finance today's recollected

Its all about Limits on various transaction, FEMA Schedule:I, II, III, LRS, JV/WOS, different FC A/c and their purpose. Reading Macmillan BOOK thoroughly is sufficient to clear the Exam.

[08/07, 07:28] Ara: Vostro account

[08/07, 07:28] Ara: ECB is a form of bank loan, suppliers credit, buyer credit

[08/07, 07:28] Ara: Standby letter of credit is under ucp600 or ucp600 ,isp

[08/07, 07:28] Ara: Bill of Ladding 2 questions, export bill crystallization, guarantee maximum period, exim Bank duties 2mark, Duration of bill realisation, PCFC value above export order, deemed exporter, if domestic price increases above export price...

[08/07, 07:28] Ara: Deemed export 2 ques

[08/07, 07:28] Ara: Bank guarantee under

[08/07, 07:28] Ara: Lrs scheme available to individuals upto USD 250000 not to corporate, partnership, huf, trust

[08/07, 07:28] Ara: Buyer credit linked to Libor/ mibor

[08/07, 07:28] Ara: Documents should be presented within 21 days from

[08/07, 07:30] Ara: If the maturity date is a holiday then it should be presented before the date or after holiday

[08/07, 07:38] Ara: Merchant trade should be completed within 9 months

[08/07, 07:41] Ara: What is clean payment

[08/07, 07:41] Ara: High sea sale

[08/07, 07:42] Ara: Trade blog 1 que

[08/07, 07:43] Ara: Normal transist period is from the port to destination port or from manufacturing to destination port

[08/07, 07:47] Ara: India export rice in exchange of petrol, Diesel this is theory of comparative advantage , heckscher ohlin theory, theory of absolute advantage

[08/07, 07:50] Ara: In trade within country which is common as international trade. Dap ,Daa LC

[08/07, 08:00] Ara: Factoring forfeiting 4 questions

[08/07, 08:06] Ara: Transfer LC

[08/07, 08:11] Ara: Foreign exchange governed by dgft RBI, exim bank,

[08/07, 08:14] Ara: Lc is given on Fob value

[08/07, 08:20] Ara: If ABC company is having bank guarantee with x bank and they are entering to contract with y to supply goods and if ABC company fails what bank will do a) pay to y on the value of entered or b) pay a guarantee amount

[08/07, 08:21] Ara: Pre shipment 360 days

[08/07, 08:21] Ara: Preshipment interest is given upto 180 days

[08/07, 08:27] Ara: Bank guarantee should not be issued more than 10 yrs

[08/07, 08:29] Ara: Status holder are classified from one to five star

[08/07, 08:29] Ara: Softex is used for software export

[08/07, 08:36] Ara: Advance remittance up to usd200000

[08/07, 08:39] Ara: ABC company is dealing with goods and banking with x � bank , it buys goods from y and for y company x bank willing to finance is it a) vendor finance b) channel finance

[08/07, 08:49] Ara: Three , four star export house

[08/07, 08:54] Ara: Export of goods freely upto RS 500000

[08/07, 08:57] Ara: Project contractors after completion of project abroad may import without an authorisation good including capital goods used in project provided they have been used for atleast 1 yrs

[08/07, 08:58] Ara: Duty exemption scheme

[08/07, 08:59] Ara: Duty drawback scheme

[08/07, 09:03] Ara: Arbitration

[08/07, 09:03] Ara: Speculation

[08/07, 09:05] Ara: If on Oct 3 transaction is settled on Oct 5 assuming Oct 3,4,5 is working day this is a) spot b) forward c ) future d) ready

International Trade Finance exam yesterday.

Bill of Ladding 2 questions, export bill crystallization, guarantee maximum period, exim Bank duties 2mark, Duration of bill realisation,PCFC value above export order, deemed exporter, if domestic price increases above export price... Some more questions which I recollected.

Thanks

Trade Finance Recollected Questions: Preshipment, Post shipment Finance, PCFC, Forfaiting, EXIM Bank, FTP, Trade Blocs, ECGC Confirmation, DEPB Scheme, EPCG, Limitation Clause, ECNOS full form, Combined Transport Document, Gift Exports limit, Adv payment limit on Import, Bonafide Baggage period, Drawback, Merchanting TradeTrade, Domestic Trade types.

digital banking recollected

Jackpotting

Emv and non emv

Abps and aeps

Financial exclusion concept

10 questions on cards

Frauds like skimming etc

Risk based 5 questions

Mpin based 3 questions

Card dimension

8 straight forward questions from book

Confusing ones as all questions have 2 anwers type...be carefull before marking answers

Digital banking todays recollected questions

Otp full from

Pharming attack on internet website's

Mom and pop means

Technology solution in India which is not part of FI

Cyber mugging

X2x service code

Pos terminals related questions

Dimensions of plastic card

Difference between gprs pos and pstn pos

First pos mc developer in india

Chargeback related questions

Jackpotting in atm means

Meltdown and spectre means

Nfs managed by npci situated at

In Forex settlement the rupee leg is settled through

If I recollect I will append pls

Ccp-

Questions were conceptual. Really difficult questions from LG and LC. Questions from Syndication and MBA -5. LC - no numericals only conceptual case study 5 no. Syndication and Consortium -5 . EPS -5, IBC -5 , and questions covering the whole book. Interesting fact - none of this answer was the right answer nearly 15 -20 questions. Very confusioning

· Cleared CCP today.. Questions were from msme service n manufacturing sector, Npv and irr difference, eps calculation, calculation of tnw-1, minor question-2,case study on huf , bcsbi -2 questions, case study on lc and asked to select type of lc, max period of BG, deferred payment guarantee, cersai is done under, cersai is used for, break even point calculation-1,standard deviation on investment,time value for money etc...

· Forex operations review and Recollected exam

· Usance Period

· sanction of fresh/enhanced export credit limits should be made within 45

· Limit for export under OPGSP

· Schedule III of FEMA

· Remittance exceeding USD10Mio per project consultancy service in respect of Infra Projects

· commission to an agents abroad for sale of residential flats-USD25000 or 5% of inward remittance

· reimbursement of pre-incorporation expenses

· Donation - 1% or USD 5Mio

· Pan mandatory for all LRS remittance

· LRS reporting - Daily Basis

· LRS not applicable to HUF,Partnership form, Trust

· 2 new Incoterms incorporated in 2010

· export realisation period

· collectin bill

· rate application from transfer from NRE to FCNR

· who issue SOFTEX form

· fedai last meetings

· advance remittances toward imports of services are permitter without any limit

· question on accruals in the account should be converted into rupees into rupee on last day of succeeding

· month

· who can open SNRR account

· How much INR can be taken outside Inida

· Export of gift articles not exceeding 5 lacs

· NRO account Foreign nationals should not exceed more than 6 months

· Vostro account is funded through which Form1/2/3/4

· when we sent MT707

· Travellers proceedings to which countries not exceeding USD 300 per visit

· Target of FTP2015-20 export target of $900 billion by 2019-20

· Article 13 of UCP 600

· Green clause credit

· Commercial invoice should be signed and dated

· 10-12 questions on ECB,FDI,ODI

· 3-4 questions on FTP

· Questions asked from UCP 600, LOC, LRS, FTP 2015- 2020, ECGC, PTA, ECB, etc.

· Cleard Foreign Exchange Operations Exam today..paper was little bit tricky..no numericals, no case studies..just theoretical but concept based questions..ECB,FTP,LC,LRS,ECGC,EXIM, pre & post shipment are the some areas which covers more than half of the question paper.

· forex operation question 27.10.2018

· fro nre to fcnr which rate apply

· as per latest what is mandatory for lrs "pan"

· how much invest in jv - 400%

· coprporate donate what amount - 1% of forex earning or $5 m which ever is less

· one from high seas sale

· marine insurance policy indemnity se related

· fedai rate declare which rate in month end

· one is ralated to var and fbil

· if forward is more than spot then what - interest on base less than counter

· regarding lou and loc - ans is both are dicontinued

· one is if there is no loc and lou then what is the option for importer

· one forfaiting

· what is requirement to be an exporter

· if account is standard then in which case there is no need to report ecgc before disbursement

· ek bpo se related

· one is from eefc

· one is for tt buying

· ftp target for 2020

· advane under import of services without guarntee - $ 5 lakh

· condition for granting loan against nri deposit

· lc amendment- mt707

· one from urbdg 758

· urr 722

· one from demand guarantee

· standby lc

· one is lc term prevail against sanction ye ans h question i forget

· if lc not require transport , invoice then what - option given not remember

· incoter added in 2010 - dap dat

· one is if in lc there is no presentation date only expiry given then what will be presentation date

· for what we can not issue lc

· if lc is in fob then import licence what we endorse option - cif exw fob

· who issue softex forms

· one is edi port - sdf

· if some mistake in shippong bill then what will appraising officer do - mark and point to commisioner

· ~forex operation question 27.10.2018

· fro nre to fcnr which rate apply

· as per latest what is mandatory for lrs "pan"

· how much invest in jv - 400%

· coprporate donate what amount - 1% of forex earning or $5 m which ever is less

· one from high seas sale

· marine insurance policy indemnity se related

· fedai rate declare which rate in month end

· one is ralated to var and fbil

· if forward is more than spot then what - interest on base less than counter

· regarding lou and loc - ans is both are dicontinued

· one is if there is no loc and lou then what is the option for importer

· one forfaiting

· what is requirement to be an exporter

· if account is standard then in which case there is no need to report ecgc before disbursement

· ek bpo se related

· one is from eefc

· one is for tt buying

· ftp target for 2020

· advane under import of services without guarntee - $ 5 lakh

· condition for granting loan against nri deposit

· lc amendment- mt707

· one from urbdg 758

· urr 722

· one from demand guarantee

· standby lc

· one is lc term prevail against sanction ye ans h question i forget

· if lc not require transport , invoice then what - option given not remember

· incoter added in 2010 - dap dat

· one is if in lc there is no presentation date only expiry given then what will be presentation date

· for what we can not issue lc

· if lc is in fob then import licence what we endorse option - cif exw fob

· who issue softex forms

· one is edi port - sdf

· if some mistake in shippong bill then what will appraising officer do - mark and point to commisioner

· Foreign Exchange Operations Recollected question (27/10/18)-

· 1. LRS scheme availble to?

· 2. question abt Gift/donation.

· 3. one abt medical treatment?

· 4. PAN mandatory in LRS?

· 5. travellers limit 3000USD per visit or per annum?

· 6. foreign currency not permissible to- Nepal

· 7. forward contract limit- USD 1 million

· 8. question on RFC ac.

· 9. direct question on PIO.

· 10. whi can open SNRR ac

· 11. question abt prohibited investment.

· 12. what is green clause lc.

· 13. question on tolerance limit in Lc.

· 14. question abt advising bank.

· 15. question abt MT707.

· 16. 3-4 question abt bill of lading.

· 17. 2 new INCOTERMS.

· 18. SOFTEX form.

· 19. export to warehouse question.

· 20. 5-7 indirect question abt pre and post shipment.

· 21. question on forfaiting.

· 22. question on bill of entry.

· 23. 2-3 question on trade credit.

· 24. 1 question abt nature of transaction and rate applied.

· 25. 1 abt ECIB(WTPC)

· 26. 1 question on standby credit.

· 27. LRS statement submission.

· 28. normal transit period

· 29. ECB cost ceiling.

Review for certified treasury professional exam

Review for certified treasury professional exam

Having today cleared the written exam on certified treasury professional ,all I that I gathered and felt during the course of my preparation was that,there is dearth of proper and adequate information available on the subject ,either maybe due to not many candidates appear for this particular exam or may be those who have previously cleared were not too active in sharing their wisdom and experiences centering around the exam .

1.As bankers we are subjected to quite elongated working hours .As such it is always not possible for us to go through the entire book page by page.Although it is advisable to read the entire book to gain knowledge,but at this point of time our main focus should be on clearing the exam.Also do remember that no matter how much theoretical knowledge one gains from book ,one still needs to start afresh and from scratch upon being posted in treasury department as nothing will come close to practical work ex and that is where one will get real flavour of treasury with due respect to bookish theory.
2.If unable to go through entire book ,put special focus on the following chapters -Liquidity Management,Money Market instrument(specifically CP,CD both theory and numerical) ,Repo (numerals and theory),T bills,Call and Term money .Most questions from Money market asked from CP ,Repo,CD and call money.
3.Under capital market chapter read ECB mainly.
4.Read FRA very well both theory and numerical,mainly numerical and if required take help of YouTube.FRA numericals are must do.
5.Chapter on Options and Future should be read in utmost detail and if time permits then Swaps mainly IRS.
6.Fixed Income Duration Convexity Time Value of money chapter should be properly read .Have clarity on Bond theorem and specifically Bond price yield relation,YTM ,Duration,Convexity,Bond numerical like Bond price,Modified Duration calculation,convexity, effect on portfolio due to Bond price /yield increase or decrease numerical.This particular chapter on Fixed income Duration Time value of money is very very important.
7.Other than above if time permits go through Basic forex numerical on bill/TT buying selling,rate to be quoted to exporter/importer ,dealer code of conduct,Types of auction and when issued mkt,role of front mid and back office.
8. Go through numerical on Repo at the backside of the book and on calculation Yield and price of T bills given on the back side of the book.These are very important and 6-7 questions are normally asked on these topics frequently.

That’s it from my side friends.Hope I could be of some help to you all.Thanks again to Srinivas Sir for his untiring efforts towards this forum and his contribution in helping fellow aspirants in clearing these exams and if I can recollect anything else , I will share over here in due course of time.
Take care...

IT security recollected on 27.09.2019

IT security recollected on 27.09.2019

Some of the recalled questions/topics are as following...

2-3 questions on Escrow
Security governance
Cert in
Major change from it act to it amendment act
BC DRP steps
2 questions on firewall
RTO
RPO
CISO reports to whom
Who are responsible for IT security
Maker checker difference
Spyware
VoIP
Black/white box testing
Salami attack
ISMS
PDC and DRC
2 questions on fault tolerant systems
Disadvantage of check list audit
2-4 questions on physical security
ITAM 2 questions
What cant be disclosed under RTI act 2005
Schema
Modem
Green server
Telnet uses which port
2-3 questions on security standards
E wastes
2-3 questions related to software development
COBIT
Threat vector
DoS
SQL
Cross site scripting
Steganography
Cryptography
Beta testing
Multiplexers
CAPTCHA
Dual core processor

MSME recalled questions : Exam Date 25-Aug-2019

1) CLCSS subsidy

2) In TReds : what are the instruments

3) UNIDO’S programmes

4) Maximum money that can be sanctioned under turnover method : 500 Lakhs

5) Which is not involved in launching cluster development project

6) Maximum time for completion of one cluster

7) SIDBI’s MAHILA VIKHAS NIDHI

8) SFURTI is applicable to which item (Traditional industries)

9) Location of ITCOT ?

10) Current ratio is 1.33:1; If CA increased by 10%; CL increased by 5%; what is current ratio ?

11) Find out Debit equity ratio

12) MSME limitations

13) In partnership firm within how many months minor has to give notice after becoming Major

14) Which type of A/c’s not covered in CGTMSE

15) After sanctioned a loan with hypothecation within how many days charge has to be created ?

16) What are the precautions to be made by a banker in case of joint Hindu Family; in JHF Minor became major ?

17) ISO9000 : max benefit amount

18) To start industrial unit with whom permission to be obtained ?

19) Under the composite loan scheme what is the max amt eligible ?

20) Functions of NABARAD

21) Duration for Loan disbursement

22) Rating agency for MSME - SMERA

23) One question from Pre-Shipment advances (packing credit advances)

24) One question from Red clause LC

25) One question from Factoring

26) 4-5 questions from CGTMSE

27) 1 question on DIC – District Industries centre

28) 4 questions from MUDRA

29) 1 question from TUFS & TEQUP

30) 3 questions from investment in P&M, Equipment

31) 1 question from re-construction of P-ship firm

32) 1 question on rights & liabilities of directors & shareholders in Pvt ltd. Co & Public ltd. Companies ?

33) 3 questions on women entrpeneur enterprise => How much share and categories of women enterprises, supportive measures for women entrepenuer activities.

34) 1^st question in 1^st chapter (asked differently)

35) 4-5 questions on CGTMSE

36) 1 question on DIC - Direct Industries Centre

37) NSIC schemes

38) Find our Debt equity ratio

39) Max amt for sanction in (Nayak committee) Turnover method (page 142)

40) MSME rating agencies : 147 page

41) EDP training – PMEGP : 164 page

42) 4^Th question in 6^th chapter

43) Sick unit definition : 239 page

44) Guidelines for rehabilitation of sick MSME’s : 253 page

45) Wilful defaulters : 257 page

46) Benefits of ARC : 266 page

47) Microfinance institutions : 273 page

48) 2 questions on MUDRA

49) One question on relationship Banking

50) One question from WTO

51) One question Basal 2 & 3

Certified credit professional exam review 28.09.2019

Certified credit professional exam review 28.09.2019

Forfaiting ,factoring- 5Marks
IRR,NPV 5 Marks
Sarfaesi 1Mark
Cersai 2Marks
IBC 5Marks
LC MBPF 5Marks
Ratio 4 Marks

annual imports 2200 lakhs

fixed costs 70 lakhs
insurance 30 lakhs
customs duty 200 lakhs

EOQ 500 LAKHS

LEAD TIME 2 MONTHS
USANCE 5 MONTHS

CALCULATE NO OF LC'S REQUIRED
LC FREQUENCY
LC AMOUNT

GIVE ME SOLUTION PLS.
This question in today exam 5 Marks

Please read thoroughly Macmillan Book Bankers Hand Book on credit management and cover the follow topic:
Factoring and forfaiting,
CP, PSL, PSLC certificate,
5 marks on LC on EOQ based, numerical on ANBC, Ratio analysis, NPV, Payback period, NPV, IRR, Questions related to wc management, CR, Activity Ratio, CERSAI, MSME act, MSME Rehabilitation, credit monitoring, NCLT, CAP, IBC, Treds, margin on HL, etc..

Caiib ABM recollected questions 2019

Caiib ABM recollected questions 2019

Re-collected questions posted by our members

--------------------------------------------

1. Case Study on Demand Supply curves with graph

2. Match the following about Horn effect, leniency error, central tendency error etc

a. The halo effect — a tendency to allow one trait or characteristic of an employee to influence the assessment. The halo is to rate an employee consistently high or low.

b. The leniency or strictness tendency of the superior interferes with the appraisal and accordingly the assessment gets influenced. The superior is unable to come out of these tendencies.

c. The central tendency problem refers to assigning average ratings to all the employees without properly evaluating each aspect of appraisal carefully and fearlessly.

d. Similar error is the tendency of comparing the employee with oneself on various traits and parameters. Those who show the similar characteristics are normally rated high.

3. Simple Question on Y = a +bx

4. Halo effect means positive attitude rating

5. Inflation change calculation

6. Leniency error

7. Type of inflation

8. Bond problem

9. Ratio analysis

10. Linear program 5 marks

11. Probability 5 marks - Z values given

12. Sampling related 5 marks

13. Money Supply/ Demand curve related 5 marks

14. Narrow Money, Broad Money related case study

15. Credit Monitoring questions

16. Debtors turnover ration

17. STOCK TURNOVER RATIO

18. CURRENT RATIO

19. QUICK RATIO

20. FV formula

21. Calculating LC 5 mark case study

22. LEI - The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. LEI is a 20-digit unique code to identify parties to financial transactions worldwide.

23. HRIS

24. Role erosion and role ambiguity

25. Net fiscal deficit

26. Green GDP

27. Real gross income

28. Standard estimate error

29. Regression/Coefficient

30. Interpretation of confidence interval

31. Simplex method

32. What is called broad money

33. In which phase price of commodity is lowest? Boom/Recession/Depression/Recovery

34. Question on cluster sampling

35. GDP deflator

36. Who said what definition of economics

37. Working capital

38. Business cycle

39. Linear programming, HR theories, sampling

40. What is 3Vs

41. Sample proportion calculate

42. Marshall definition

43. Credit delivery

44. Case study on money measurements

45. Motivation theories with their founders

46. Covariance was given and SD was given....we had to find correlation

47. Johari window 1qs

48. SMA1

49. Zero coupon bond

50. Mixed economy

51. Performance appraisal systems

52. NPV

53. Microeconomics

54. Compensation

55. National domestic product

56. Left brain

57. B Type personality

58. COGS = Opening Stock + Purchases during the period − Closing Stock

59. Around 10 questions on Standard Deviation

60. Bell curve

61. Interpretation of confidence interval

Match the following was atleast 5

Numerical are easy

Many case study or questions from HR module

Saturday, 28 March 2020

BALANCE SHEET ANALYSIS (SOME IMPORTANT QUESTIONS)

BALANCE SHEET ANALYSIS

SOME IMPORTANT QUESTIONS

1.Current Assets Vs Current Liabilities Current Assets are the assets of the company which can be converted into cash within 12 months which include inventories, raw material, work-in-progress, finished goods, cash and bank balances. Current Liabilities are the amounts that are to be payable to trade creditors as well as repayment of interest and installments of bank loans within 12 months. The difference between current assets and current liabilities gives the working capital of the company.

2. What are the Contingent Liabilities include claims against a company not acknowledged by it as debt. It could be taxes, penalties or conversion of non-fund commitment into a funded liability at a later date.

3. Name the important financial ratios which are vital to gauge the financial health of the organization. Liquidity Ratios, Leverage/Solvency Ratios, Activity Ratios and Profitability Ratios.

4. What is the importance of Liquidity Ratios? Liquidity Ratios (Current and Quick ratio) helps to find out the ability of the business concern to pay the short term liability of its liquidity. Any adverse position in liquidity leads to sudden fall of the unit. Ideal Current & Quck Ratio is 2:1 & 1:1 respectively. Acceptable Ratio as per our Loan Policy guidelines is 1.33:1 for the limits enjoying above `6.00 crores and 1.15:1 for the business concerns availing limits of below `6.00 crores. Any deviation below the required ratio requires ratification of Higher Authority. Current Ratio is always to be read along with Quick Ratio. A fall in the Quick Ratio in comparison to the Current Ratio indicates high inventory holdings.

5. Which ratio is to be taken into consideration for sanction of term loans? Debt Service Coverage Ratio (DSCR), it helps to know the capacity of the firm to repay the Long Term Loan Instalment and Interest. Ideal DSCR is 2:1. The higher the DSCR, higher may be the EMI amount and lower may be the number of EMIs. However, banks may also consider DSCR 1.20:1 where fixed income generation is assured, such as Rent Receivables etc.

6. What is Gearing Ratio? Gearing Ratio (GR) represent a group of financial ratios that compare some form of owner's equity (capital) to debt, or funds borrowed by the company. Gearing ratio is a measure of financial leverage that demonstrates the degree to which a firm's operations are funded by equity capital versus debt financing. This ratio is required to assess the eligibility for non-funded limits. The formula is Total outside liabilities+proposed nonfund based limits / Tangible Networth – Non Current Asset. The ideal ratio should be below 10

Profitability Concepts

1 What is the relevance of profits Augment economic capital, Helps retained earnings to increase capital base, Improves Investors confidence, Index of efficient use of funds Makes a viable organization

2 What is profit and profitability Profit represents an absolute figure Profitability is measured by Ratios and shows operational efficiency

3 Name few profitability ratio ROA,NIM,ROE, Book value,

4 What is ROA, how it is measured and what is the ideal ROA ROA is Return on Asset and is the ratio of net profit to total assets. The standard measure of ROA globally is 1%

5 What is NIM, how it is arrived and what is desirable NIM NIM is Net Interest Margin and is the ratio of net interest income to average earning assets. The desired NIM is above 3%
6 What is ROE ROE is Return on Equity / Net worth. It is ratio of Net profit to Average Net worth (Capital + Reserve- intangible assets)

7 What is Book Value and how it is arrived It is net worth divided by No. of shares. Market price of share generally factors book value.

8 What is EPS EPS is Earning Per Share. It is the ratio of net profit to No. of shares

9 What is CRAR, what it indicates Capital to Risk Weighted Asset Ratio. The total capital, consist of Tier I & Tier II Capital as a ratio of Risk Weighted Assets. It indicates the soundness and risk bearing ability of a Bank.

10 What do you understand by Yield on Advances Interest Income on advances divided by average advances indicates average yield on advances. This ratio enables cost benefit assessment from various loan products.

11 What is yield on Investments Interest and dividend income on investment divided by average investments indicate yield on investments.

12 What is the cost of deposit Interest paid on deposit divided by average deposits is called cost of deposit. It consists of Current, SB and Term Deposit.

13 Which are the operational efficiency ratios, Cost – Income ratio and Burden ratio is called as operational efficiency ratio.

14 What is Cost Income ratio Non-Interest Expenditure divided by Net Total Income

15. Credit Risk Mitigation : Ans : Techniques used to mitigate the credit risks through exposure being collateralised in whole or in part with cash or securities or guaranteed by a third party.

16. Non Performing Assets (NPA) : Ans : An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.

17. Net NPA : What is our Net Npa percentage in last B/Sheet. ? Ans : Gross NPA – (balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + Total provisions held). It is 6.37 %

18. Please tell about “ Off Balance Sheet Exposure” Ans: Off-Balance Sheet exposures refer to the business activities of a bank that generally do not
nvolve booking assets (loans) and taking deposits. Off-balance sheet activities normally generate fees, but produce liabilities or assets that are deferred or contingent and thus, do not appear on the institution's balance sheet until and unless that become actual assets or liabilities.

19.What do you mean by “ Operating profit before provisions” Ans: Net of total income and total operating expenses.

20.What is “Net operating profit” Ans: Operating profit before provision minus provision for loan losses, depreciation in investments, write off and other provisions.

21.What do you mean by “PBT” Ans: Profit before tax (Net operating profit +/- realized gains/losses on sale of assets)

22.Whado you mean by “Profit after tax (PAT)” Ans: Profit after tax – dividend paid/proposed.

23.What is Net Non-Interest Income Ans: The differential (surplus or deficit) between non-interest income and non-interest expenses as a percentage to average total assets.

24.Net Interest Income (NII) Ans: NII is the difference between the interest income and the interest expenses.

25.What is NIM ? NIM (domestic)
Net interest margin is the net interest income divided by average interest earning assets.

26.Credit Risk Mitigation
Ans: Techniques used to mitigate the credit risks through exposure being collateralised in whole or in part withcash or securities or guaranteed by a third party. Operating profit before provisions Ans: Net of total income and total operating expenses. Net operating profit Ans: Operating profit before provision minus provision for loan losses, depreciation in investments, write off and other provisions. Profit before tax (PBT) Ans: (Net operating profit +/- realized gains/losses on sale of assets) Profit after tax (PAT) Ans: Profit after tax – dividend paid/proposed. Retained earnings Ans: Profit after tax – dividend paid/proposed.

Very IMPORTANT QUESTIONS to know

Very IMPORTANT QUESTIONS to know

1.Lien Vs Negative Lien Lien is the right of a creditor in possession of goods, securities or any other assets belonging to the debtor to retain them until the debt is repaid, provided that there is no contract express or implied, to the contrary. Negative Lien is an undertaking by the borrower not to create any charge on his assets without the consent of the bank. It does not confer any right on the bank.

2. Pledge Vs Hypothecation Under pledge the ownership remains with the borrower but the possession passes on to the bank whereas in case of hypothecation, both ownership and possession remains with the borrower. While under pledge the bank can sell the asset without going to court, under hypothecation it can be done only through the legal process.

3.Supplier Finance Vs Dealer Finance Extending credit facility to the suppliers of the Corporate for the supplies made is called as ‘Supplier Finance’ where as credit facility provided to the dealers for the goods delivered by the corporate is known as ‘Dealer Finance’.

4. What is EPC and BOT? Government entrusts the projects to the private players where they undertake Engineering, Procurement and Construction (EPC) activities. They have no role in the ownership of the roads, toll collection and maintenance of the roads. These activities will be taken care by the government. Under BOT (Build, Operate and Transfer) model, the cost of the project is to be borne by the private players and in turn they collect toll revenue or annuity fee from the government at agreed terms.

5. Tell about Infrastructure Investment Trusts (InvITs).It is an instrument available to infrastructure companies to raise funds from High Networth Investors to unlock capital from older assets, de-leverage balance sheets and receive upfront cash to deploy in upcoming projects. The minimum investment in the primary offer (IPO) and secondary market is `10 lakh `5 lakh respectively. Recently SEBI relaxed the norms to allow InvITs to raise funds by issuing debt securities which include Debentures and Bonds but excludes bonds issued by Government,Security Receipts and Securitized Debt instruments.

6. How Financial Guarantee differs from Performance Guarantee? Financial Guarantee is a direct credit substitute wherein a bank irrevocably undertakes to guarantee the payment of a contractual financial obligation where as Performance Guarantee is essentially deal with transactions related to contingencies that involve an irrevocable undertaking to pay to third party in the event the counterparty fails to fulfill or perform a contractual obligation. Financial guarantee essentially carry credit risk where as in case of performance guarantee the risk of loss depends on the event (internal / external factors) need not necessarily be related to the creditworthiness of the counterparty involved.

7. State the salient features of Revolving Credit. It is a letter of credit where the amount is revived or reinstated without requiring specific amendment to the credit. Once drawing is made, the credit reverts to its original amount for re-use by beneficiary. There are two types of revolving credit viz., credit gets reinstated immediately after a drawing is made and credit reverts to original amount only after it is confirmed by the Issuing Bank.

8. What is Joint Lending Arrangement (JLA)? The scheme shall be applicable to all lending arrangements, with a single borrower with aggregate credit limits (both fund & non-fund) of `150 crore and above involving more than one bank. Borrowers having multiple banking arrangements below `150 crore may also be encouraged to come under JLA, so that the wholesome view of the assessment of credit requirement as well as the entire operations of the customers can be taken by banks. The Bank from which the borrower has sought the maximum credit will be the designated Lead Bank for the JLA. The Lead bank will be responsible for preparation of appraisal note, its circulation, and arrangements for convening meetings, documentation, etc.

9. Briefly state about Consortium of Banks. All banks come together and collaborate with each other in assessing the credit requirements of the borrower duly sharing the credit facilities as well as sharing securities with “Pari Pasu” charge. Normally, the bank which has larger exposure act as leader who conduct meetings, assess the credit requirements of the borrower and share all the information with member banks from time to time. The minimum threshold limit for participating bank now stipulated is 10% of the total exposure. The lead bank will review financial covenants of the borrower in quarterly consortium meetings on the basis of progress report submitted by the borrower.

10. State the important features of new “Credit Delivery System”? Borrowers having aggregate fund based working capital limit of `150 crore and above from the banking system, a minimum level of ‘loan component’ of 60 percent in the form of Working Capital Demand Loan (WCDL) with effective from 1st April 2019. Drawings in excess of the minimum ‘loan component’ threshold may be allowed in the form of cash credit facility. The undrawn portion of cash credit / overdraft limits sanctioned shall attract a credit conversion factor of 20 percent. These measures are aimed to enhance credit discipline among large borrowers and to prevent perpetual rollovers, which is the need of the hour.

11. Norms for takeover of loan accounts from other banks. The take over of accounts should be as per approved Board policy of the bank and the account should be a Standard Asset with Positive Networth & Profit record. P&C Report is mandatory preferably before sanction, if not, at least before disbursement. Banks should ensure that TOL/TNW shall not exceed 4:1 and the collateral coverage should be minimum 125% for working capital limits and 100% for term loans and the external rating shall not be more than 6 months old. Enhancement of limits beyond 50% not allowed

12.Tell about Multiple Banking?
Under Multiple Banking, borrower avails credit facilities across banks. Each bank undertakes their own assessment of risk, decide the mix of credit facilities and stipulate their own terms and conditions. Each of the banks takes the security and gets the charges registered with the ROC in theirfavour.

13. What are the approved Credit Information Reports (CIR) that banks will accept for the purpose of sanction of credit limits? CIR received from Credit Information Bureau India Limited (CIBIL) and EQUIFAX companies are treated as valid scores. The minimum acceptable scores for CIBIL and EQUIFAX are 700 and 730 respectively

Important terms

What is Card Skimming: It is the process of using an electronic device known as skimmer, to record account data encoded on the magnetic strip on a card without owner’s knowledge. The fraudsters use other techniques such as cameras, shoulder surfing, copying etc., to record PIN information. The potential centers for card skimming are restaurants, ATMs, Kiosks. Phishing Vs Pharming Vs Vishing : Phishing refers to an untrustworthy entity impersonating as “trustworthy entity” through e-mail and gathers sensitive information such as PAN, Credit Card Numbers, Login ID and Passwords. Pharming is another way to manipulate users on the Internet by redirecting them to false websites with a view to trapping them. Vishing is another type of social engineering mode over phone to gather sensitive / confidential information such as Account Number, Card Number, Expiry date, Date of birth, PIN, CVV, OTP, Login Password, Transaction Password etc. What is eBkray:: It is an online platform to increase the transperancy in auctioning of assets attached by banks. The platform is equipped with property serach features and navigational links to all Public Sector Bank e-auction sites, provides single-window access to information on properties up for e-auction as well as facility for comparision of similar properties. The site also contains photographs and videos of uploaded properties.

Current affairs on 28 March 2020

Today's Headlines from www:

*Economic Times*

📝 Give food, shelter, basic amenities to migrant labourers: Centre to States

📝 Auto component industry facing production loss of Rs 1000-1200 crore per day in lockdown

📝 SC allows automakers to sell 10% of unsold BSIV stock

📝 FMCG production yet to return to normal; retailers say stock depleting fast

📝 Peak power demand down 26 pc to 120 GW in a week

📝 Vedanta Limited announces change in company's top management

📝 Govt ensures uninterrupted supply of oxygen to hospitals

📝 DSP, SBI SmallCap to start accepting lumpsum investments

📝 Rupee pares initial gains, settles 27 paise higher at 74.89 against US dollar

*Business Standard*

📝 Covid-19 relief: RBI cuts repo 75 bps; defers term-loan EMIs for 3 months

📝 SBI cuts lending rate by 75 bps as RBI introduces liquidity package

📝 Tata Motors to carve out PV biz as separate entity, to see change of guard

📝 Moody's slashes India's GDP growth rate to three-decade low of 2.5%

📝 Indian start-up QNu Labs debuts on global quantum computing stage

📝 IT firms stare at increasing client issues over coronavirus pandemic

📝 Sebi eases operational procedure for public issue, share acquisition

📝 Buyers confined indoors, realtors switch online to conduct businesses

📝 Forex reserves fall by $12 bn to $499 bn; rupee hits all-time low: RBI data

📝 Govt approves additional Rs 5,751 cr to 8 states as calamity relief

*Financial Express*

📝 SAIL proposes to increase capacity to 49.6 mtpa by 2030

📝 NMDC facing 50% cost overrun for a 52-month delay in Nagarnar plant completion

📝 Dr Reddy’s Laboratories gets nod for borrowing plan of up Rs 2,000 crore

📝 Online sales come to a halt amid coronavirus lockdown

📝 Coal India continues operations, records about 3 million tonnes production on Thursday

📝 RBSA estimates valuation of LIC in Rs 9.90-11.50L crore range

📝 FM Sitharaman asks banks for ‘quick transmission’ of slashed interest rate

📝 RBI refrains from giving growth, inflation outlooks; says current GDP projections at risk

*Mint*

📝 Donald Trump signs $2 trillion coronavirus bill, largest ever US stimulus

📝 Govt exempts procurement agencies, mandis, farming operations from lockdown

📝 Regulator allows banks to trade in offshore rupee derivative market

📝 Food tech entrepreneurs pitch cloud kitchens to feed the poor amid lockdown

📝 Brent oil dives over 7% despite stimulus efforts; calls mount for new OPEC+ deal

📝 World has entered a recession as bad or worse than financial crisis: IMF chief

📝 Gap in monitoring as 15 lakh passengers entered India in 2 months: Centre

📝 Government misses disinvestment target for FY20 by Rs14,701 crore

📝 Coffee Day gets Rs. 1800 crore from Blackstone for IT park deal.