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 INR Crore divide that with 810 & you will get 11,11,111.1111111111 Gdrs to be issued You can R/off the this Number with additional GDRs for covering the Expenses of 2%
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
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