問題1
"Following four entities operate in the Indian IT and BPO space. They all are into same segment of providing off-shore analytical services. They all operate on the labour cost-arbitrage in India and the countries of their clients. Following information pertains for the year ended March 31, 2013.
The year FY13, was typically a good year for Indian IT companies. For FY14, the economic analysts have given following predictions about the IT Industry:
A) It is expected that INR will appreciate sharply against other USD.
B) Given high inflation and attrition in IT Industry in India, the wages of IT sector employees will increase more sharply than Inflation and general wage rise in country.
C) US Congress will be passing a bill which restricts the outsourcing to third world countries like India.
While analyzing the four entities, you come across following findings related to Glowing:
Glowing is promoted by Mr.M R Bhutta, who has earlier promoted two other business ventures, He started with ABC Entertainment Ltd in 1996 and was promoter and MD of the company. ABC was a listed entity and its share price had sharp movements at the time of stock market scam in late 1990s. In 1999, Mr. Bhutta sold his entire stake and resigned from the post of MD. The stock price declined by about 90% in coming days and has never recovered. Later on in 2003, Mr. Bhutta again promoted a new business, Klear Publications Ltd (KCL) an in the business of magazine publication. The entity had come out with a successful IPO and raised money from public. Thereafter it ran into troubles and reported losses. In 2009, Mr. Bhutta went on to exit this business as well by selling stake to other promoter(s). There have been reports in both instances with allegations that promoters have siphoned off money from listed entities to other group entities, however, nothing has been proved in any court." Which entity is best in terms of overall gearing ratio and net gearing ratio respectively:
"Following four entities operate in the Indian IT and BPO space. They all are into same segment of providing off-shore analytical services. They all operate on the labour cost-arbitrage in India and the countries of their clients. Following information pertains for the year ended March 31, 2013.
The year FY13, was typically a good year for Indian IT companies. For FY14, the economic analysts have given following predictions about the IT Industry:
A) It is expected that INR will appreciate sharply against other USD.
B) Given high inflation and attrition in IT Industry in India, the wages of IT sector employees will increase more sharply than Inflation and general wage rise in country.
C) US Congress will be passing a bill which restricts the outsourcing to third world countries like India.
While analyzing the four entities, you come across following findings related to Glowing:
Glowing is promoted by Mr.M R Bhutta, who has earlier promoted two other business ventures, He started with ABC Entertainment Ltd in 1996 and was promoter and MD of the company. ABC was a listed entity and its share price had sharp movements at the time of stock market scam in late 1990s. In 1999, Mr. Bhutta sold his entire stake and resigned from the post of MD. The stock price declined by about 90% in coming days and has never recovered. Later on in 2003, Mr. Bhutta again promoted a new business, Klear Publications Ltd (KCL) an in the business of magazine publication. The entity had come out with a successful IPO and raised money from public. Thereafter it ran into troubles and reported losses. In 2009, Mr. Bhutta went on to exit this business as well by selling stake to other promoter(s). There have been reports in both instances with allegations that promoters have siphoned off money from listed entities to other group entities, however, nothing has been proved in any court." Which entity is best in terms of overall gearing ratio and net gearing ratio respectively:
正確答案: A
問題2
Scott is a credit analyst with one of the credit rating agencies in India. He was looking in Oil and Gas Industry companies and has presented brief financials for following 4 entities:
Which of the following statements is incorrect?
Scott is a credit analyst with one of the credit rating agencies in India. He was looking in Oil and Gas Industry companies and has presented brief financials for following 4 entities:
Which of the following statements is incorrect?
正確答案: B
問題3
Which of the following statement is (are) correct?
Statement 1: Industry analysis is the first and foremost step in the bottom up approach of analysis.
Statement 2: Industry analysis would enable an analyst to figure out the relative positions of various market players and thereby make informed investment decisions.
Which of the following statement is (are) correct?
Statement 1: Industry analysis is the first and foremost step in the bottom up approach of analysis.
Statement 2: Industry analysis would enable an analyst to figure out the relative positions of various market players and thereby make informed investment decisions.
正確答案: B
問題4
Mr. Gopi, while teaching the CCRA course to students described Altman's Model and stated that following variables do exist for Altman's Model:
1. total debt/total assets,
2. retained earnings/total assets.
3. earnings before interest and taxes/total assets,
4. market value equity/book value of total liabilities,
5. sales/total assets
Exactly how many variables are incorrectly identified?
Mr. Gopi, while teaching the CCRA course to students described Altman's Model and stated that following variables do exist for Altman's Model:
1. total debt/total assets,
2. retained earnings/total assets.
3. earnings before interest and taxes/total assets,
4. market value equity/book value of total liabilities,
5. sales/total assets
Exactly how many variables are incorrectly identified?
正確答案: D
問題5
The following information pertains to bonds:
Further following information is available about a particular bond 'Bond F' There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.
Following are the relevance of Industry Analysis:
Statement 1: Evaluating Industry risk is the first and foremost step for top down approach of analysis.
Statement 2: Industry Analysis is relevant for analyzing the industry life cycle, which is highly important from the perspective of an investor or lender.
State which is/are correct?
The following information pertains to bonds:
Further following information is available about a particular bond 'Bond F' There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.
Following are the relevance of Industry Analysis:
Statement 1: Evaluating Industry risk is the first and foremost step for top down approach of analysis.
Statement 2: Industry Analysis is relevant for analyzing the industry life cycle, which is highly important from the perspective of an investor or lender.
State which is/are correct?
正確答案: C
問題6
The most important metric for a bank is the Net Interest Income (NII) which is the difference between____income and____expense.
The most important metric for a bank is the Net Interest Income (NII) which is the difference between____income and____expense.
正確答案: B
問題7
Two economies HardLand and SincereLand have provided following information with respect to their economies in USD Billion:
Based on the above information which entity is better in terms of current account deficit %?
Two economies HardLand and SincereLand have provided following information with respect to their economies in USD Billion:
Based on the above information which entity is better in terms of current account deficit %?
正確答案: D
問題8
A holder of which of the following types of bonds is least likely to suffer from rising interest rates?
A holder of which of the following types of bonds is least likely to suffer from rising interest rates?
正確答案: A
問題9
If XYZ Ltd. incurs (with purchase and installation of machinery) using cash, which of the following ratios will remain unchanged, if all other things remain constant?
If XYZ Ltd. incurs (with purchase and installation of machinery) using cash, which of the following ratios will remain unchanged, if all other things remain constant?
正確答案: C