Easy SFM paper .. lets analyse !

Page no : 5

Sahil Goel (Student CA IPC / IPCC) (56 Points)
Replied 10 November 2014

We will get to know whether it was easy or not on the D-Day only.

upensmarty (...) (77 Points)
Replied 10 November 2014

Totally biased post! Reason: comment sirf whi krenge jinka exam shi gya nd market me roumour falegi nd marks ki slashing jada hogi!! Its better to focus on other papers rather than comment!

upensmarty (...) (77 Points)
Replied 10 November 2014

Paper was easy for those who revise dividend nd merger portfolio chapter vry deeply! Nd hard for those who focused on big chapters I.e. forex, derivative nd some other topics beacuse course is lenghty nd we hv 2 b choosy at the time of revision!

Preeti (student) (37 Points)
Replied 10 November 2014

Paper was easy....but sm part was confusing not difficult.

priyanka bose (articled clerk) (22 Points)
Replied 10 November 2014

Yes I agree with you khushbu

Preeti (student) (37 Points)
Replied 10 November 2014

Paper was easy....but sm part was confusing not difficult.

Sujeet Choudhary (student) (50 Points)
Replied 10 November 2014

I dnt hw far it was easy but if result will positive then realy it was easy

Piyush Agrawal (Pursuing CA & CS Final & Doing Practice of Tax Consultants ) (45 Points)
Replied 10 November 2014

All the way paper was and average and among all the question factoring sum was difficult

Ashu (Student) (25 Points)
Replied 10 November 2014

We cannot predict icai bawa

Sandeep Rajput (DGM Finance & Accounts) (50 Points)
Replied 10 November 2014

It was easy . some Question are tough

Aswathy.Nandakumar (Article Assistant ) (100 Points)
Replied 10 November 2014

what abt the GDR question 5(b) ? does anyone know the ans

CA Rishabh jain (Looking for opportunities) (61 Points)
Replied 10 November 2014

is the ans for number of GDRs around 11lacs something?

paper was good..medium difficulty..!

PSPSPS (Practicing) (1344 Points)
Replied 10 November 2014

GDR Question will be solved as Follows

Funds Reqd Net after Expenses $ 15 mlns Convert to INR

15 Mln x 10,00,000 ( Mln = 10 Lkhs ) x 60 per $ given = 90,00,00,000/- ( 90 Crores Inr )

Given Shares Underlying the GDRs ( Means Shares Issued as Security to Depository Bank Abroad for Issue of GDRs. Value of Shares Gvn at 300/ However for GDR purpose it will be taken at 10% as said in the Question Hence the Security Value will be taken as 270/- per share. & Said in the Question Every GDR is Backed by 3 Underlying Shares Hence Value Per GDR is 810/- INR

Now Converted Amt of 15 Mln USD is 90 Crore divide that with 810 & you will get 11,11,111.1111111111 Gdrs to be issued You can R/off the this Number. You can consider 2% expenses Recovery from Issue, then Issue additional GDRs.

See how simple the question was Requiring No Knowledge of SFM. It was an Analitical Question. Requiring 5 Mins to solve.

( Answer Given is my Opinion & Interpretation of the Question, However it may be Wrong based on the Interpretations of some Super Intelligent Brains available here on CA club, So if I am Wrong Pls Tell the Correct Way of doing the Some & the Correct Answer.

Answers of any other Questions Required can be asked & I will try to give the same with Detailed Solution.

As to the Other Part of Question asked about the Cost of Funds You can calculate with your FM Knowledge Cost of Capital used in Inter CA & also the Cost of Issue of GDR 2% will be calculated as Part of the Answer but will not have any effect on the question part asked No of GDRs issued. I hope I have shown the Full solution to get full 8 marks to all who have done it this way

CA Rishabh jain (Looking for opportunities) (61 Points)
Replied 10 November 2014

very nice job..only one query..in the question it is written $15 mil net after expenses and expenses are 2% of the issue..this make 15milliom=90 crores = 98%..n thrfore 100% will be 91.8367347 crores which shud be the funds to be raised..n hence no. of gdrs shud b 91.8367347 / 810 = 1133787 GDRs..hmm??

1 Like