very important for CAIIB BFM EXAM ECGC

 ECGC guarantee

In the case of advances classified as doubtful and guaranteed by ECGC, provision should be made only for the balance in excess of the amount guaranteed by the Corporation. Further, while arriving at the provision required to be made for doubtful assets, realisable value of the securities should first be deducted from the outstanding balance in respect of the amount guaranteed by the Corporation and then provision made as illustrated hereunder:

Example

Outstanding Balance	Rs. 4 lakhs
ECGC Cover	50 percent
Period for which the advance has remained doubtful	More than 2 years remained doubtful (say as on March 31, 2014)
Value of security held	Rs. 1.50 lakhs

Provision required to be made

Outstanding balance	Rs. 4.00 lakhs
Less: Value of security held	Rs. 1.50 lakhs
Unrealised balance	Rs. 2.50 lakhs
Less: ECGC Cover (50% of unrealisable balance)	Rs. 1.25 lakhs
Net unsecured balance	Rs. 1.25 lakhs
Provision for unsecured portion of advance	Rs. 1.25 lakhs (@ 100 percent of unsecured portion)
Provision for secured portion of advance (as on March 31, 2012)	Rs.0.60 lakhs (@ 40 per cent of the secured portion)
Total provision to be made	Rs.1.85 lakhs (as on March 31, 2014)

VERY IMPORTANT FOR CAIIB BFM EXAM CGTMSE

 Credit Guarantee Fund Trust For Micro And Small Enterprises (CGTMSE) or Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH)

In case the advance covered by CGTMSE or CRGFTLIH guarantee becomes nonperforming, no provision need be made towards the guaranteed portion. The amount outstanding in excess of the guaranteed portion should be provided for as per the extant guidelines on provisioning for non-performing assets. An illustrative example is given below:

Example

Outstanding Balance	Rs. 10 lakhs
CGTMSE/CRGFTLIH Cover	75% of the amount outstanding or 75% of the unsecured amount or Rs.37.50 lakh, whichever is the least
Period for which the advance has remained doubtful	More than 2 years remained doubtful (say as on March 31, 2014)
Value of security held	Rs. 1.50 lakhs

Provision required to be made

Balance outstanding	Rs.10.00 lakh
Less: Value of security	Rs. 1.50 lakh
Unsecured amount	Rs. 8.50 lakh
Less: CGTMSE/CRGFTLIH cover (75%)	Rs. 6.38 lakh
Net unsecured and uncovered portion:	Rs. 2.12 lakh
Provision for Secured portion @ 40% of Rs.1.50 lakh	Rs.0.60 lakh
Provision for Unsecured & uncovered portion @ 100% of Rs.2.12 lakh	Rs.2.12 lakh
Total provision required	Rs.2.72 lakh

Ten Mistakes to avoid while preparing for CAIIB exam

  Ten Mistakes to avoid while preparing for CAIIB exam

1.Not allocating sufficient amount of Study time daily:

This is a very common mistake done by many CAIIB aspirants, Cramming the information before the night of the exam or before two days may helped you in JAIIB examination (Although it is a wrong way of preparation). But here in CAIIB examination it won’t help you to even score thirty marks. A thorough understanding of concepts are needed for almost all topics so having a daily study routine is must for all aspirants.

I know it is very tough to find time during our busy banking hours. If you don’t have time for continuous 2 hrs then split the study hours into three or four sessions of 30 to 40 minutes a day. Since syllabus of CAIIB subjects cover many topics; In depth understanding of each topic is also needed to answer questions that test our knowledge, analytical skills and problem solving skills. So daily allocating sufficient amount of study time is necessary.

2.Not having clear focus on optional paper:

Selecting the correct optional paper and having clear focus on it, is must for successful completion of CAIIB exam. Although the Retail banking and Financial Banking are easy papers to clear, You need choose your optional paper based on your knowledge, interested areas in banking and career development. Don’t follow others recommendation for optional paper blindly. You have to analyse and decide your optional paper.

Remember CAIIB is not only for increments; it also provides many useful theoretical knowledge in different areas of banking.

 

3.Not learning the basic concepts:

Every topic of a subject has basic and fundamental concepts to be learnt by heart. Learning them thoroughly makes us to understand the more complex concepts. Complex concepts are nothing but complex combination of simple and basic concepts. We should have studied the fun1damental concepts in JAIIB (who knows it now ;P ;)). If not revise it then and there when it is required.

To learn the fundamental concepts of economy, business maths, accountancy you can refer more books from your commerce background friends. Remember learning complex concepts won’t be useful if you don’t understand the fundamental concepts behind them.

4.Not understanding and giving importance to syllabus:

In any examination if we want to pass that exam we should thoroughly understand the syllabus first. Because understanding the syllabus will give us a clear picture of what we are going to learn. We also get some insights about the subject. It also helps us to have an idea whether we are familiar with that topic or not. This will help you to assess the complexity of the subject and how much time you need to spend with a topic.

Give importance to syllabus helps to choose the right books for our preparation. Because there are materials that doesn’t cover the full syllabus (only the main areas of the syllabus) are available free in many study groups and websites. Aspirants who doesn’t aware of syllabus simply read those material and attend the exam.

5.Not having a preparation strategy and study plan

This is a common mistake many aspirants do, thinking there is no necessary for planning your study. They even think it is a waste of time. Whatever excuses we give, having a preparation strategy and study plan is must for any type of exam. It will help us to be goal oriented and stay focused of our target. If you do your targeted studies every day, it will make you motivated. As your progress through your schedule you will feel relaxed and your stress level for exam is reduced.

Creating a schedule will hardly take one to two hours of your time. While creating a schedule of your own you will also analyse the syllabus. There are many benefits can be pointed for having a good study plan. Though the initial effort may look too much; But the benefits are fruitful and long-lasting.

6.Not taking effective notes while studying itself

Many aspirants not even consider taking notes is a part of study. While studying if you take notes you will give importance to details. Giving importance to details will make you to ask more questions and to find short answers for it. This enhances your understanding about the topic. It also makes you to break down the contents of your learning in an easy way. Therefore your memory increases and whenever you see the notes you can recollect the content.

Thus taking notes helps you for better and easy revision. I know it is time consuming but once you are familiarised, it will be easy for you to take notes. Because your eyes can spot the important detail easily; Your mind organise them with an analogy for easy remembrance.

7.Not solving and practising mathematical problems:

Unlike JAIIB, here calculations, formulas and case studies are very important. You definitely need to solve all the problems in your study materials and work books you got. Don’t simply study a formula using one example of a problem related to it. Change the parameters and create problem of your own then solve it. By doing so, you will learn about importance of each parameter of the formula.

Practice, Practice, Practice!!!!!. There is no replacement for practising when solving problems, case studies and balance sheet analysis. When solving problems related to Balance sheet also use the same method as described above. There by we can improve our problem solving skills and analytical skills

8.Not revising the topics regularly:

Many aspirants ignore the importance of revising, stating there is no time for revising. If you are not making study plan you will not even find time to complete the syllabus. So no excuses, use your notes to revise the topic at regular intervals. For example every Sunday spare 20 to 30 minutes for revising, in addition to your study time.

 “Revise little but often” is the key strategy. Repeated revision make you feel bored and gives a feeling “Ahh!!! I know it. Don’t need to study”. But it makes you to master a topic; If five questions are asked from a single topic for knowledge testing; You can answer all, with 100% accuracy.  

9.Not learning from the mistakes:

The biggest and costliest thing is learning from your mistake. If you have failed in an attempt, accept the failure and analyse where you lacked. When I say accept your failure that doesn’t mean to blame yourself. It means asking yourself questions related to find the cause of the failure. What is the main reason for non completion of the syllabus? In which topic i should improve my knowledge? etc,. How can I improve my reading ability further?

The answer to the questions should not be too general. It should be specific to spot your weakness. When you find your weakness please work on it. Nobody is perfect in the universe; So find your weakness and mistakes; Try to rectify it before your next attempt.

10.Not using the technology for proper and effective preparation of exam:

Because of the technology we can study anything from anywhere. So use your mobile, internet, websites, facebook communities,forums and blogs etc,.You can get any information from internet in just a single click or a single press of your finger. I am not saying you to depend on them but to use them as effectively as possible. So do your search whatever you feel useful subscribe to them.

Also many websites offering free mock test use them to test your knowledge. While giving mock test take it as serious as an exam. Then only you can know your time management under pressure and boosts your confidence.

Memory based recollected questions of Certificate course on prevention of cyber crime and fraud management dated 25th april 2021

 Memory based recollected questions of Certificate course on prevention of cyber crime and fraud management dated 25th april 2021

1. Mens rea

2.EMV card ISO NO OF contact 7816 and contact less 14443 

3.cyber stalking

4. Cyber squatting 

5.Cyber extortion 

6. Phishing and vishing 

7.phreaking 

8.define cyber crime 

9.fraud triangle 

10.Threat vector 

11. Threat landscape 

12. John Deo order

13. Fast flux

14. Spoofing

15. ICANN & NIXI 

16.ccTLD

17.Cryptolocker 

18. SCADA

19.Confidentiality, integrity and availability 

20. Non repudiation, authorisation, authentication 

21.2 FA

22. BYOD 

23.Tailgating,masquerading, trespassing, trapdoors 

24.MiTM,virus,worm,adware,trojan horse ,spyware 

25.CAPTCHA

26.Internet of things

27.RDBMS, front end access, back end access 

28.rootkit and spamming 

29. White hat hacker,black hat hacker,gray hat hackers,blue hat hacker,zero day vulnerability, 

30. Phreaking 

31. Anonymous 

32.risk based authentication 

33. Fraud , computer fraud ,cyber crime 

34.matrix code 

35. RFID TAG 

36. USER level controls, application control, database controls, operating system controls 

37.prevention controls , detection controls and mitigation control 

38. encryption 

39.stage IV 

40 . ITIL list 

41. Locard's exchange principle 

42.SIM,IMSI,IMEI,CDR ,GSM,CDMA 

43. C-DAC 

44 Wearable technology 

45.EFT, OLTP,STP,EDI,

46. R commerce 

47 payment/digital wallets

48.CISA

49. Rupay 

50. PCI-DSS

51. Amendment in ITA 2008

PCI DSS 3.2 Resource Guide

 PCI DSS 3.2 Resource Guide

The Payment Card Industry Security Standards Council (PCI SSC) has published a

new version of the industry standard that businesses use to safeguard payment data

before, during and after purchase. PCI Data Security Standard (PCI DSS) version 3.2

replaces version 3.1 to address growing threats to customer payment information.

Companies that accept, process or receive payments should adopt it as soon as

possible to prevent, detect and respond to cyberattacks that can lead to breaches.

Read on for answers to key questions about updates to the standard, timelines, and

resources available for understanding and adopting PCI DSS version 3.2.

Why is the PCI DSS being updated?

A: The Council updates the PCI DSS to ensure it continues to protect against old exploits that are still causing problems, addresses new

exploits and provides greater clarity for implementing and maintaining PCI DSS controls.

Why is it PCI DSS 3.2 and not PCI DSS 4.0?

A: The industry recognizes PCI DSS as a mature standard now, which doesn’t require the significant updates we have seen in the past.

Moving forward, the marketplace can expect incremental revisions like 3.2 to address the changing threat and payment landscape,

with a focus on providing clarity and guidance to help companies use and maintain the standard as everyday business practice.

What are the types of changes included in PCI DSS 3.2?

A: PCI DSS 3.2 includes clarifications to existing requirements, new or evolving requirements, and additional guidance. These are

outlined in the Summary of Changes from PCI DSS 3.1 to PCI DSS 3.2.

What is new in PCI DSS 3.2?

A: Within the 12 core requirements of the PCI DSS, there are five new sub-requirements for service providers affecting requirements

3, 10, 11 and 12. New sub-requirements have been added to requirement 8 to ensure multi-factor authentication is used for all

non-console administrative access and all remote access in the cardholder data environment. There are also two new appendices.

Appendix A2 incorporates new migration deadlines for removal of Secure Sockets Layer (SSL) /early Transport Layer Security (TLS) in

line with the December 2015 bulletin. Appendix A3 incorporates the “Designated Entities Supplemental Validation” (DESV), which was

previously a separate document. All the changes are outlined in the Summary of Changes from PCI DSS 3.1 to PCI DSS 3.2.

How are these changes determined?

A: The standard update is part of the regular process for ensuring the PCI DSS addresses current challenges and threats. This process

factors in industry feedback from the PCI Council’s more than 700 global Participating Organizations, as well as data breach report

findings and changes in payment acceptance.

How long do organizations have to implement PCI DSS 3.2?

A: PCI DSS 3.1 will retire on 31 October 2016, and after this time all assessments will need to use version 3.2. Between now and 31

October 2016, either PCI DSS 3.1 or 3.2 may be used for PCI DSS assessments. The new requirements introduced in PCI DSS 3.2 are

considered best practices until 31 January 2018. Starting 1 February 2018 they are effective as requirements and must be used.

What supporting documentation is available for compliance with PCI DSS 3.2?

A: PCI DSS 3.2 supporting documents include updated Self-Assessment Questionnaires (SAQ), Attestation of Compliance (AOC) forms,

Report on Compliance (ROC) templates, Frequently Asked Questions (FAQ) and Glossary. All of these are available in the Documents

Library on the PCI SSC website.

Are PCI Training courses updated for PCI DSS 3.2?

A: Yes, content for all PCI Training programs is being updated to support PCI DSS 3.2.

Numerical for risk management

  Volatility with time horizon & Bond Value 

Ex.1 

If daily volatility of a Security is 2%, how much will be monthly volatility? 

Solution 

Monthly volatility = Daily Volatility * ∫30 = 2*∫30 = 2*5.477 = 10.95% Ans 

Ex.2 

If per annum volatility is 30% and nos. of trading days per annum be 250, how much will be 

daily volatility? 

Solution 

Annual Volatility = Daily Volatility * ∫250 = Daily Volatility * 15.81 

30 = Daily Volatility *15.81 

Daily volatility = 30/15.81 = 1.90% Ans. Ex.3 

If 1 day VaR of a portfolio is Rs. 50000/- with 97% confidence level. In a period of 1 year of 

300 trading days, how many times the loss on the portfolio may exceed Rs. 50000/-. Solution 

97% confidence level means loss may exceed the given level (50000)on 3 days out of 

100. 

If out of 100 days loss exceeds the given level on days =3 

Then out of 300 days, loss exceeds the given level = 3/100*300 =9 days. Ans. Ex.4 

A 5 year 5% Bond has a BPV of Rs. 50/-, how much the bond will gain or lose due to 

increase in the yield of bond by 2 bps 

Solution 

Increase in yield will affect the bond adversely and the bond will lose. Since BPV of the bond is Rs. 50/-. Increase in yield by 2 bps will result into loss of value 

of Bond by 50*2=100. Ex.5 

1 day VaR of a portfolio is Rs. 50000/- with 90% confidence level. In a period of 1 year (250 

days) how many times the loss on the portfolio may exceed Rs.50000/- Ans. 90% confidence level means on 10 days out of 100, the loss will be more than Rs. 50000/-. Out of 250 days, loss will be more than 50000/- on 25 days Ans. It means, out of 250 

days, loss will not exceed on 225 days.

All IIBF Certifications ,JAIIB ,CAIIB PDFs in single link

 All IIBF Certifications PDFs in single link

Be safe ,stay safe during this covid pandemic

Read corresponding  IIBF book 1st Macmillan / Taxmann.

These all materials are extra information to get knowledge.

All the best

IIBFADDA4U:

https://iibfadda4u.blogspot.com/?m=1

Certified credit officer/Professionals

https://drive.google.com/file/d/1gOQqlXN7xcob8NlCksw1QPNB4dwhx82Y/view?usp=sharing

MSME
https://drive.google.com/file/d/1NvERhcOJ-8xcv9uv1bk05ou8Bl14CTSC/view?usp=sharing

KYC AML:
https://drive.google.com/file/d/1zpqN21AXXzwzV_yTbCLBuSybfNM7j6lC/view?usp=sharing

BCSBI
https://drive.google.com/file/d/1w-RBo1YfvZYkfi24DIcTPoU9A8q_O-uT/view?usp=sharing

CAIIB ABM
https://drive.google.com/file/d/1LInaggp8952i1c4KV0yxDgiC8Rx3Fsri/view?usp=sharing

CAIIB IT
https://drive.google.com/file/d/1E3pVTlfNzic5E4SeahmEQcPxs-JW3Hse/view?usp=sharing

Certified Treasury Professionals:
https://drive.google.com/file/d/1nB3Wv1I44H9hFhEYzHeBpUHi3HBLfV_w/view?usp=sharing

Digital banking
https://drive.google.com/file/d/1Tm3SZeBECAeTK28jSCYrN-1aRbURw6R9/view?usp=sharing

Forex Individual
https://drive.google.com/file/d/1qG9i-gQqxzDG5Oa6j3zHhe2faXfQssjd/view?usp=sharing

Forex Operations
https://drive.google.com/file/d/1oaFzYCOX_Boz53hCklaa7R-ur6DdDw-_/view?usp=sharing

Cyber Crime and fraud management
https://drive.google.com/file/d/1MGVZgyxll_lucBWEPWWCu3wu24kWYUj6/view?usp=sharing

Information System for Bankers
https://drive.google.com/file/d/1D_mWlRqSZvKFUoijMvPIQIBxLlTu-UA4/view?usp=sharing

By Mr Aravind

https://drive.google.com/file/d/1NL_dNgrCYpsIGRRA9RsQc9bSV78EDX9w/view?usp=drivesdk


International Trade Finance
https://drive.google.com/file/d/1Pi0_kvj3F2guGfMlXPaMC4P7XrR1MYEs/view?usp=sharing

IT SECURITY
https://drive.google.com/file/d/1rg8Ot3GKwJcc-9UV20ig1zH3wrOGFKBt/view?usp=sharing

Microfinance
https://drive.google.com/file/d/102GAyROfBW3H_n6sIsq4BvtgFcqBQcfV/view?usp=sharing

Risk In financial services
https://drive.google.com/file/d/101JE5X7A4nXBTlPUHDyip5aWY9Uo41zs/view?usp=sharing

Certified Audit  Professionals:
https://drive.google.com/file/d/11hfLHlbBkgX0EtZ7TLF897i1gnM_0Zbo/view?usp=sharing

ALL JAIIB Materials:

https://drive.google.com/drive/folders/1F_yx2oHd_2KyvexNC--3-k55w4TYSmjM?usp=sharing

ALL CAIIB Materials:

https://drive.google.com/drive/folders/1j8VH_BiB11aq-NppCfBd8hqBRxUzD4Kk?usp=sharing

Certified credit professionals numerical

 

Numericals:



Assets
Net Fixed Assets - 800
Inventories - 300
Preliminary Expenses - 100
Receivables - 150
Investment In Govt. Secu - 50
Total Assets - 1400
Liabilities
Equity Capital - 200
Preference Capital - 100
Term Loan - 600
Bank C/C - 400
Sundry Creditors - 100
Total Liabilities – 1400


1. Debt Equity Ratio = ?
a. 1:1
b. 1:2
c. 2:1
d. 2:3
Ans - c
Explanation :
600 / (200+100) = 2 : 1
2. Tangible Net Worth = ?
a. 100
b. 200
c. 300
d. 400
Ans - b
Explanation :
Only equity Capital i.e. = 200
3. Total Liabilities to Tangible Net Worth Ratio = ?
a. 7:2
b. 11:2
c. 13:2
d. 15:2
Ans - b
Explanation :
Total Outside Liabilities / Total Tangible Net Worth : (600+400+100) / 200 = 11 : 2
4. Current Ratio = ?
a. 1:1
b. 1:2
c. 2:1
d. 3:1
Ans - a

Explanation :
(300 + 150 + 50 ) / (400 + 100 ) = 1 : 1



Q.2

Assets

Net Fixed Assets - 265

Cash - 1

Receivables - 125

Stocks - 128

Prepaid Expenses - 1

Intangible Assets - 30

Total - 550

Liabilities

Capital + Reserves - 355

P & L Credit Balance - 7

Loan From S F C - 100

Bank Overdraft - 38

Creditors - 26

Provision of Tax - 9

Proposed Dividend - 15

Total - 550

1. Current Ratio = ?

= (1+125 +128+1) / (38+26+9+15)

= 255/88

= 2.89 : 1

2. Quick Ratio = ?

(125+1)/88

= 1.43 : 11

3. Debt Equity Ratio = ?

= LTL / Tangible NW

= 100 / (362 – 30)

= 100 / 332

= 0.30 : 1

4. Proprietary Ratio = ?

= (T NW / Tangible Assets) x 100

= [(362 - 30 ) / (550 – 30)] x 100

= (332 / 520) x 100

= 64%

5. Net Working Capital = ?

= CA - CL

= 255 - 88

= 167

6. If Net Sales is Rs.15 Lac, then What would be the Stock Turnover Ratio in Times ?

= Net Sales / Average Inventories/Stock

= 1500 / 128

= 12 times approximately

7. What is the Debtors Velocity Ratio if the sales are Rs. 15 Lac?



= (Average Debtors / Net Sales) x 12

= (125 / 1500) x 12

= 1 month

8. What is the Creditors Velocity Ratio if Purchases are Rs.10.5 Lac?

= (Average Creditors / Purchases ) x 12

= (26 / 1050) x 12

= 0.3 months

.............................................



Q.3 Current Ratio of a firm is 1 : 1. What will be the Net Working Capital ?

a. 0

b. 1

c. 100

d. 200

Ans - a

Explanation :

It suggest that the Current Assets is equal to Current Liabilities hence the NWC would be

0

(since NWC = C.A - C.L)

.............................................

Q.4 Suppose Current Ratio is 4 : 1. NWC is Rs.30,000/-. What is the amount of Current

Assets ?

a. 10000

b. 30000

c. 40000

d. 50000

Ans - c

Explanation :

Let Current Liabilities = a

4a - 1a = 30,000

a = 10,000 i.e. Current Liabilities is Rs.10,000

Hence Current Assets would be

4a = 4 x 10,000 = Rs.40,000/-

.............................................

Q.5 The amount of Term Loan installment is Rs.10000/ per month, monthly average interest

on TL is Rs.5000/-. If the amount of Depreciation is Rs.30,000/- p.a. and PAT is

Rs.2,70,000/-. What would be the DSCR ?

a. 1

b. 1.5

c. 2

d. 2.5

Ans - C

Explanation :

DSCR = (PAT + Depr + Annual Intt.) / Annual Intt + Annual Installment

= (270000 + 30000 + 60000 ) / 60000 + 12000

= 360000 / 180000

= 2

.............................................

Q. 6     A Company has Net Worth of Rs.5 Lac, Term Liabilities of Rs.10 Lac. Fixed Assets worth

RS.16 Lac and Current Assets are Rs.25 Lac. There is no intangible Assets or other Non

Current Assets. Calculate its Net Working Capital.

a. 1 lac

b. 2 lac

c. - 1 lac





d. - 2 lac

Ans - c

Explanation :

Total Assets = 16 + 25 = Rs. 41 Lac

Total Liabilities = NW + LTL + CL = 5 + 10 + CL = 41 Lac

Current Liabilities = 41 – 15 = 26 Lac

Therefore Net Working Capital = CA – CL = 25 – 26 = (-) 1 Lac

.............................................

Q. 7  Merchandise costs - Rs. 250000, Gross Profit - Rs. 23000, Net Profit - Rs. 15000. Find

the amount of sales.

a. 227000

b. 235000

c. 265000

d. 273000

Ans - d

Explanation :

Amount of sales = Merchandise costs + Gross Profit

= 250000 + 23000

= 273000

.............................................

Q.8 Total Liabilities of a firm is Rs.100 Lac and Current Ratio is 1.5 : 1. If Fixed Assets and

Other Non Current Assets are to the tune of Rs. 70 Lac and Debt Equity Ratio being 3 :

1. What would be the Long Term Liabilities?

a. 40 Lacs

b. 60 Lacs

c. 80 Lacs

d. 100 Lacs

Ans - b

Explanation :

Total Assets = Total Liabilities = 100 Lac

Current Asset = Total Assets - Non Current Assets

= Rs. 100 L - Rs. 70 L

= Rs. 30 L

If the Current Ratio is 1.5 : 1

then Current Liabilities works out to be Rs. 20 Lac.

That means, Net Worth + Long Term Liabilities = Rs. 80 Lacs.

If the Debt Equity Ratio is 3 : 1,

then Debt works out to be Rs. 60 Lacs and equity Rs. 20 Lacs.

Therefore the Long Term Liabilities would be Rs.60 Lac.

.............................................

Q.9 Current Ratio = 1.2 : 1.

Total of balance sheet being Rs.22 Lac.

The amount of Fixed Assets + Non Current Assets is Rs. 10 Lac.

What would be the Current Liabilities?

a. 10 Lacs

b. b. 12 Lacs

c. 16 Lacs

d. 22 Lacs

Ans - a

Explanation :

Total Assets is Rs.22 Lac.

Fixed Assets + Non Current Assets is Rs. 10 Lac

Then Current Assets = 22 – 10 = Rs. 12 Lac.

Current Ratio = 1.2 : 1

Current Liabilities = Rs. 10 Lac

.............................................







Q.10 M/s Raj&co's balance sheet included the following accounts:

Cash: 10,000

Accounts Receivable: 5,000

Inventory: 5,000

Stock Investments: 1,000

Prepaid taxes: 500

Current Liabilities: 15,000

Find the Quick Ratio

Quick Ratio = Cash + Cash Equivalents + Short Term Investments + Marketable

Securities + Accounts Receivable) / Current Liabilities

= (10000+5000+1000) / 15000

= 16000 / 15000

= 1.07

.................................

Q.11 M/s Raj&co's balance sheet included the following accounts:

Inventory : 5,000

Prepaid taxes : 500

Total Current Assets : 21,500

Current Liabilities : 15,000

Find the Quick Ratio

Quick Ratio = (Current assets – Inventory - Advances - Prepayments Current Liabilities) /

Current Liabilities

= (21500 - 5000 - 500) / 15000

= 16000 / 15000

= 1.07

.................................

Q.12 XYZ Pvt Ltd has the following assets and liabilities as on 31st March 2015 (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

= 1.375

.................................





Q.14 GHI Ltd. manufacturers two products :Product G and Product H. The Variable cost of the manufacture is as

follows:

Product G Product H

Direct Material 3 10

Direct Labour (Rs.6 per hour) 18 12

Variable Overhead 4 4

Product G sells for Rs.40 and Product H at Rs.30. During the month of January, the Company is having

only 21000 of direct labour. The maximum production capacity of Product G is 5000 units and Product H is

10000 units.

From the above facts, answer the following:

I. The contribution from Product G and H together is-----

a) Rs.32

b) Rs.19

c) Rs.27

d) Rs.40

II. The contribution per labour hour from Product H is-----

e) Rs. 4

f) Rs. 2

g) Rs. 3

h) Rs. 5

III. The contribution per labour hour from Product G is-----

a) Rs.2

b) Rs.5

c) Rs.15

d) Rs.3





Q.15 Read the following and answer

Cost / unit

Raw material 50

Direct labour 20

Overheads 40

Total cost 110

No. of units 10,000

No. of units

Sold on credit 8000

Average raw material in stock : 1 month

Average work in progress : ½ month

Average finished goods in stock : ½ month

Credit by supplier : 1 month

Credit to debtor : 2 months

Take 1 year = 12 months

1) Investment of working capital in raw material inventory is

(a) 41666

(b) 50000

(c) 33333

(d) 10000

2) Investment in working capital for finished goods is

a) 45833

b) 49090

c) 56453

d) 50000

Terms used in Financial statement analysis

 

Terms used inFinancial statement analysis

1		Net Sales		Gross Sales minus returns, discounts, excise duty.
2		Raw Materials consumed		Opening Stock of raw materials plus purchases of raw materials less Closing stock of raw
				material .
3		Cost of Production		Raw materials consumed, stores and spares consumed, power and fuel, direct labour,
				repairs and maintenance, other manufacturing expenses and depredation plus opening
				stock of stock in process minus dosing stock of stock in process.
4		Cost of Sales	Cost of production (3) plus opening stock of finished goods minus dosing stock of finished
				goods.
5		Gross Profit		Net Sales - Cost of Sales (Item 1 minus Item 4)
6		Operating Profit		Gross Profit (5) minus interest, selling general and administrative expenses.
7		Net Profit before tax		Operating profit plus other incomes minus other expenses
8		Net Profit after tax		Profit before taxation minus provision for taxes.
9		Retained Profit		Net profit minus dividend paid / dedared
10		Cash Profit		Profit before charging Depreciation (Net Profit + Depredation)
11		Cash-Loss		Loss before charging Depredation (Net Loss — Depredation)
_12		Assets	Things owned by a business Not converted into cash in normal course of business, These
13		Fixed Assets		are acquired to use them in the production of other goods and services.
14		Current Assets		Assets which are meant to be converted into cash or consumed in normal course of
				business say within 1 year. These are also called as gross working capital.

15         Intangible assets               Expenditure on invisible assets, likely to yield benefit to the company in future                                                                                        e.g

		goodwill, patent, trade marks, designs.
16	Fictitious Assets	Which have notional value only e.g. losses, preliminary expenses.

         Miscellaneous Assets or Non current Which can't be classified as current, fixed or intangible e.g. inter Corporate investment assets

18	Tangible Assets	Total asset side of balance sheet minus intangible assets.
19	Quick Assets	Assets which can be converted to cash quickly. Cash, bank balances, marketable
		investments, bills receivables and sundry debtors considered goal. (Current Assets
		minus-Inventories & Prepaid Expenses)
20	Liabilities	Things owed by the business.
21	Owners Equity (Net	Paid up share capital, reserves and surplus, preference shares with more than 12 years
	Worth)	maturity.
22	Long term liabilities or Debt	Outsiders funds, payable in more than 12 months. Term loan (exduding instalment
		payable within 12 months) plus debentures maturing within more than one year,
		preference shares redeemable within 12years, deposits payable beyond one year.
23	Current Liabilities	Liabilities which are payable in less than one year e.g. sundry creditors, unsecured loans,
		advances from customers, interest accrued but not due, dividends payable, statutory
		liabilities, provisions, Bank borrowings for working capital etc
24	Total Outside Liabilities	Total of the liability side of balance sheet minus net worth
25	Tangible Net Worth	Total tangible assets minus total outside liabilities. Owner's funds minus Intangible &
		Fictitious assets ; Paid up capital plus reserves minus intangible assets
26	Gross Working Capital	Total of Current Assets
27	Net Working Capital	Current assets minus total current liabilities. Long Term Sources minus long term uses
28	Working Capital gap	Current Assets minus current liabilities other than Bank Borrowings.
29	Long term sources	Paid up capital, reserves and surplus (excluding specific reserves) i.e. Net Worth and long
		term liabilities.
30	Short Term Sources	Current Liabilities
31	Long Term Uses	Fixed Assets, Miscellaneous or Non. current assets, Intangible and Fictitious Assets
		(assets other than current assets)
32	Short Term Uses	Current Assets
33	Contingent Liabilities	Likely liability which may or may not arise on the happening or non happening of an
		event