Financial Management and Strategic Management - January 2025

(a) KP Ltd. has provided the following information: (i) Estimated monthly sales: Month ` in Lakh May-2024 12 April-2024 10 June-2024 15 July-2024 10 August-2024 13 September-2024 14 (ii) Gross Profit Ratio is 20%. (iii) Cost of Goods sold is paid in next month. (iv) Sales are in credit and credit period is allowed for 2 months. (v) Indirect Expenses are paid in the same month. Monthly indirect expenses are as follows: Month ` in Lakh July-2024 1.2 June-2024 August-2024…

(a) The following information pertain to CMC Limited: Number of Equity Shares Book Value of 10% Convertible Debentures Book Value of 12% Bank Term Loan 20,00,000 ` 1,00,00,000 ` 25,00,000 Market Price of Equity Share ` 55 Market Value of 10% Convertible Debenture ` 108 Face Value of Equity Share ` 10 Face Value of 10% Convertible Debenture ` 100 Beta coefficient of Equity shares of CMC Ltd. 1.5 Risk free rate of return 4.5% 13 INTERMEDIATE EXAMINATION: JANUARY 2025…

(a) SRT Limited manufactures steel rods and is now considering to purchase a new aluminium smelting and moulding plant. This plant will have the cost of ` 20,00,000 to purchase and install the plant. It has a useful life of 5 years with a residual value of ` 1,00,000. Production and sales from the new plant are expected to be 1,00,000 units per year. Other estimates are as follows: Selling Price `150 per unit `100 per unit Direct Cost Fixed…

Explain the Environmental, Social and Governance linked Bonds. (4 Marks) (b) Discuss the objectives and advantages of wealth maximization goal of Financial Management. (4 Marks) (c) State any two advantages of virtual banking. (2 Marks) (c) State the concept of exclusion of Financing Cost Principle. (2 Marks) (a) Environmental, Social and Governance-linked bonds (ESG): These bonds carry a responsibility of the issuer company to prioritize optimal environmental, social and governance (ESG) factors. Investing in ESG bonds is considered as socially…

(a) ABC group of companies has five projects at different geographical locations. Each project is managed by a dedicated project manager. A Chief Executive Officer (CEO) is supported by a team of subject matter experts (SMEs) in each function at corporate level of the company. As an accepted practice, the authority and communication flow vertically and horizontally in the company. There are five common functions i.e. finance, human resource, operations, marketing and information technology facilitating each project. Each functional manager…

(a) "International development is expensive and challenging". In the context of the statement, explain the internationalization of business and the steps involved in such strategic planning. (5 Marks) (b) "Managing stakeholders is critical to the success of a project". Explain how Mendelow's Matrix helps in managing stakeholders and categorizing the stakeholders into groups. (5 Marks) (a) Internationalization has become a pivotal trend for businesses aiming to enhance profitability and access cheaper resources. It allows companies to explore new markets, achieve…

(a) Outline the main levels of management generally found in an organization. Also explain the types of networks of relationship between these levels and amongst the same levels of a business. (3 + 2 = 5 Marks) (b) What do you mean by strategic performance measures? State the reasons for the importance of strategic performance measures for an organization. (1 + 4 = 5 Marks) (a) Main Levels of Management in an Organization In a typical large organization, there are…

(a) As per one of the five forces of competition, Michael Porter stated that the more intensive is the rivalry, the less attractive is the industry. In view of this, explain the conditions in which rivalry among competitors tends to be cut throat and industry profitability is low. (5 Marks) (b) Explain the 'product market growth matrix' as propagated by Igor Ansoff as a device for identifying growth opportunities for the future. (5 Marks) 31 INTERMEDIATE EXAMINATION: JANUARY, 2025 (b)…