QivLiquidity Analysis - Quick Ratio
1 marks easy
What is the Quick Ratio of JPW Ltd (excluding the 15% margin)?
(A) 2.92 : 1
(B) 1.05 : 1
(C) 2.59 : 1
(D) 1.85 : 1
QvWorking Capital Turnover Ratio
1 marks easy
What is the Working Capital Turnover Ratio based on cash cost of sales?
(A) 4 times
(B) 3.38 times
(C) 6.2 times
(D) 2.7 times
Q1Working Capital Management
0 marks easy
Case: PKU Ltd is a mid-sized manufacturing company producing household appliances for the Indian market. With competition heating up, the company's management is becoming increasingly conscious about the growing working capital needs.
During the last financial year, the company recorded annual sales of ₹48,00,000, offering its customers a 3-month credit period to encourage bulk orders. While this has boosted sales, it has also tied up significant funds in debtors.
On the production side, the company incurs the following annual costs:
• Materials consumed: ₹12,00,000 (suppliers allow 2 months credi…
What will be the gross working capital of the company on cash cost basis?
(A) ₹16,00,000
(B) ₹17,20,000
(C) ₹18,30,000
(D) ₹19,60,000
Q1Project Finance, Capital Budgeting, Financial Analysis and R
0 marks hard
Case: ABC Manufacturing Ltd. proposes a capital investment project for advanced manufacturing equipment. Management's Position: (1) Project is strategically essential for long-term survival in competitive industry; (2) Simple payback of 5 years indicates acceptable investment risk; (3) Although discounted payback of 7 years is relatively long, project will generate positive inflows 1 year beyond payback period; (4) MIRR of 10.9% should be interpreted considering industry cyclicality, market growth, and non-financial benefits (improved brand-reputation and quality standards). Bank's Concern: Reduced …
The credit team must now prepare a recommendation on whether to finance the project and, if so, under what conditions. Assuming you were the credit analyst, prepare justification report with a reasoned argument in support of your recommendation in the following format:
Table: Appraisal technic | Acceptable range | Outcome for this asset | Recommendation
- NPV
- MIRR
- Simple payback
Q1Dividend Decisions, Valuation Models
0 marks hard
Case: JSK Industries Ltd, for the year ending 31-03-2025, declared 40% dividend. The current market price of the share is quoted at ₹ 57.50. If the retention ratio is reduced by 20 percent, the market price dropped by ₹ 2.50. Face value of the shares is ₹ 10 per share.
JSK Industries Ltd, for the year ending 31-03-2025, declared 40% dividend. The current market price of the share is quoted at ₹ 57.50. If the retention ratio is reduced by 20 percent, the market price dropped by ₹ 2.50. Face value of the shares is ₹ 10 per share.
Q1Strategic Management
0 marks easy
Case: Jayanta K., the founder of Hepsia.io, while presenting at a technology vision conference at Hyderabad was narrating how Hepsia is moving along with huge support from the US college, when the truck upon an idea of technological research being discussed. What should he be worried about but he thought what could happen if computers could innovate themselves. The world will change forever. His idea took shape of AI and Hepsia AI. Now he is the most difficult research scholars from across the globe - all virtually, and paid them well, with no real organizational structure. The offering to customers…
Based on the case scenario about Jayanta K. and Hepsia.io's strategic transformation
Q2Working Capital Management
0 marks easy
Case: PKU Ltd is a mid-sized manufacturing company producing household appliances for the Indian market. With competition heating up, the company's management is becoming increasingly conscious about the growing working capital needs.
During the last financial year, the company recorded annual sales of ₹48,00,000, offering its customers a 3-month credit period to encourage bulk orders. While this has boosted sales, it has also tied up significant funds in debtors.
On the production side, the company incurs the following annual costs:
• Materials consumed: ₹12,00,000 (suppliers allow 2 months credi…
What should be the maximum working capital requirement on cash cost basis (ignoring WIP, assuming a 15% margin). Based on the given information, what is the cash cost requirement?
(A) ₹16,31,000
(B) ₹10,20,000
(C) ₹20,40,000
(D) ₹9,60,000
Q2Capital Budgeting - NPV and PI
1 marks easy
Please consider the following data: Project A: NPV (₹'000) = 15, I (₹'000) = 60; Project B: NPV (₹'000) = 20, I (₹'000) = 100; Project C: NPV (₹'000) = 25, I (₹'000) = 150. Given that NPV = PV - I and II = PV / I, where PV is the present value of future net cash inflows and I is the initial investment on a project. Based on the data furnished above, which one of the following statements is correct?
(A) Project A is recommended based on PI criterion
(B) Project B is recommended based on NPV criterion
(C) Project C is recommended based on PI criterion
(D) Project A is recommended based on NPV criterion
Q2Bullion Bond
0 marks easy
What are the main features of Bullion Bond?
Q2Strategic Management - Reactive vs Proactive Strategy
0 marks easy
SmartHome Technology Company is experiencing rapid success in smart home devices. It has decided to redesign its product line to cater specifically to this trend while competitors are still hesitant. Which strategic approach is the firm using?
(a) Reactive strategy
(b) Proactive strategy
Q3Liquidity Analysis
0 marks easy
Case: PKU Ltd is a mid-sized manufacturing company producing household appliances for the Indian market. With competition heating up, the company's management is becoming increasingly conscious about the growing working capital needs.
During the last financial year, the company recorded annual sales of ₹48,00,000, offering its customers a 3-month credit period to encourage bulk orders. While this has boosted sales, it has also tied up significant funds in debtors.
On the production side, the company incurs the following annual costs:
• Materials consumed: ₹12,00,000 (suppliers allow 2 months credi…
Excluding the 15% margin, what is the Current Ratio of PPW Ltd?
(A) 4.46 : 1
(B) 3.8 : 1
(C) 2.0 : 1
(D) 2.2 : 1
Q3DuPont Analysis - ROE Decomposition
1 marks easy
As per extended Du Pont analysis: ROE = NPM + TATE × x/y. Where, ROE = Return on Equity, NPM = Net Profit Margin, TATE = Total Asset Turnover Ratio. Here, x/y represents:
(A) Debt / Equity
(B) Total Assets / Sales
(C) Total Assets / Equity
(D) Equity / Debt
Q3Sources of Finance
0 marks easy
What do you understand by Spontaneous Sources of Finance and explain the sources of finance?
Q3Porter's Five Forces Analysis
5 marks medium
EcoRide Motors, an Indian electric scooter company, faces rising competition from new EV start-ups offering affordable models. Battery supplies from only one manufacturer have limited availability, and it needs to explore multiple brands online before purchase. Traditional petrol manufacturers are also entering the EV segment. EcoRide struggles to maintain profitability despite growing market demand. Which two factors represent the greatest threat to EcoRide's profitability?
(A) Threat of Substitutes
(B) Bargaining Power of Suppliers
(C) Rivalry among Existing Competitors
(D) Bargaining Power of Buyers
Q4Leverage Analysis - Degree of Financial Leverage
1 marks easy
If Degree of Financial Leverage (DFL) = 5/4, which one of the following will be the interest coverage ratio?
(A) 5
(B) 4
(C) 3/4
(D) 1.33
Q4Financialization
0 marks easy
What is the meaning of 'Financialization'?
Q4Financial Management - Gordon's Model and Share Valuation
0 marks easy
Price under Gordon's Model
Q4McKinsey 7S Framework
5 marks medium
A financial services company wants to launch a mobile-first platform. The strategy is clearly defined and systems for operations are established. However, the execution is constantly disrupted by internal conflicts and the leadership style emphasises strict hierarchy, slowing down decision-making. Management wants to ensure the new digital initiative succeeds without resistance or delays. Which 7S elements need urgent alignment?
(A) Skills and Style
(B) Structure and Staff
(C) Shared Values and Systems
(D) Strategy and Structure
Q5Profit Maximization
0 marks easy
What are disadvantages of Profit Maximization?
Q5Financial Management - Gordon's Model Parameters
0 marks easy
Market return on investment is used for computing price under Gordon's model. Hence, the caption of the table under Q5 is:
Q5Strategic Groups and Positioning
5 marks medium
In the Indian automobile industry, firms like Speedo Motors and Turbo Motors have different strategic focus. Speedo focuses on fuel efficiency and cost-effectiveness. Meanwhile LuxeVibe and Elite Motors dominate the premium segment, emphasizing luxury and advanced technology. Each group follows distinct pricing and marketing strategies and movement between these segments is limited due to brand perception and MOUs. What does this suggest?
(A) Strategic Alliances
(B) Strategic Group Mapping
(C) Value Chain Analysis
(D) Core Competence Identification
Q6Growth Strategies and Strategic Alliances
5 marks medium
TechNova Inc., a leading U.S. robotics company, partners with MechInov, an Indian tech startup, to manufacture affordable industrial robots for the South Asian market. Both companies agree to share technology, production facilities and marketing channels to accelerate market entry and reduce costs. What type of strategy is TechNova implementing?
(A) Market Penetration
(B) Product Development
(C) Product Diversification
(D) Diversification
Q7Cost of Capital
0 marks easy
Preference stock, redeemable after eight years at par, is currently selling at ₹ 150 per share. The prevailing default-risk free interest rate on 10-year GOI treasury bonds is 6%. The average market risk premium is 8% and the risk-free rate is 4%. Beta is 1.24. Corporate tax rate is 25%. You are required to calculate the cost of:
Q7Levels of Strategy and Benefits of Strategic Management
0 marks easy
AquaPure, a beverage company, faces fierce competition from new entrants offering organic, filtered and eco-friendly alternatives. This has made it challenging to retain customers as established soft drink brands are also launching their own health-focused beverage lines. The company has appointed a new Marketing Manager, Mr. Somya who needs to design creative and innovative advertising campaigns to gain a competitive edge, engage the public and capture market share.
Q7aCapital Structure - MM Model
0 marks easy
An all-equity financed company with a market value of ₹ 25,00,000 and cost of equity 16.2%. The company wants to buyback equity shares worth ₹ 5,00,000 by issuing and raising 15% perpetual debentures. The tax may be taken at 30%. After the capital restructuring and applying MM Model (with taxes), you are required to calculate:
Q8Leverage Analysis and EPS
0 marks easy
Case: Balance Sheet as on March 31st 2025 with Equity, Capital, Debt, Reserves, and Current Liabilities. Income Statement for the year ending March 31st 2025 with Sales, Operating expenses, EBIT, Interest, Tax, and Earnings before tax.
Following Balance Sheet and Income Statement have been obtained from the books of accounts of Puma Pvt Ltd. The tax rate applicable to the company is 35 percent.
Q8Mission Statement
5 marks medium
A company's mission statement is typically focused on its present business scope. Explain the significance of a mission statement.
Q9Investment Decision
0 marks hard
ABC Manufacturing Ltd is a mid-sized engineering and fabrication company that supplies precision components to the automobile and heavy machinery sector. In order to maintain competitiveness and
Q10Porter's Five Forces Model - Competitive Rivalry
0 marks easy
As per Michael Porter's Five Forces Model of Competition, intense rivalry among existing competitors reduces the overall attractiveness and profitability of the industry. In this context, explain the situations in which competition among firms becomes cut-throat, leading to lower industry profitability.
Q11Financial Management - Capital Structure and Financing Instr
0 marks easy
Features of Building Bond
Q11Mendelow's Matrix - Stakeholder Analysis
0 marks hard
Exclude Constructions, a leading infrastructure development company, is planning to launch a large-scale smart city project. The project involves multiple stakeholders, including government bodies and the private sector with each with varying levels of influence and interest. To ensure smooth execution and stakeholder cooperation, the management wants to analyze and manage other stakeholders effectively. How can Exclude Constructions use Mendelow's Matrix to analyze and manage stakeholder engagement effectively?
Q12Strategic Drivers
0 marks easy
Write a short note on the key strategic drivers of an organization.
Q13Corporate Strategy - Turnaround
0 marks hard
Reinnovate Electronics Ltd., a company engaged in the manufacture of consumer electronic appliances, since 2010, had been performing well until 2022. However, thereafter its market share began to decline steadily. The company started incurring accumulated losses which continue to deteriorate. The Board of Directors (BoD) of the company is formulating a practical action plan regarding a radical change in its strategy directing a reshuffle of the top management team.
Q14Ansoff Matrix - Growth Strategies
0 marks easy
Explain the 'product market growth matrix' as propagated by Igor Ansoff as a source for identifying growth opportunities in the future.
Q15Digital Transformation Strategy
0 marks hard
BrightWave Solutions, a small and medium-sized company in the renewable energy sector, wants to adopt the latest digital technologies to improve its operational processes and product offerings. The company plans to pursue digital transformation strategy through digital technologies, market focus, business model, and the organizational readiness. BrightWave Solutions also seeks to manage continuous changes effectively while pursuing its digital strategy. For successful digital transformation, the company should follow.
Q16Strategic Uncertainty Management - SWOT and Scenario Analysi
0 marks easy
Explain how organizations can effectively manage strategic uncertainties through SWOT analysis and scenario development.
Q10.1Financial Management - Walter's Model and Dividend Policy Va
10 marks hard
Price under Walter's Model (D)