|12%, 6,000 Debentures @ Rs. 100 each 6,00,000||Rs. 6,00,000|
|Retained earnings||Rs. 4,50,000|
|4,500 Equity shares @ Rs. 100 each||Rs. 4,50,000|
|Discounting factor @18%||0.847||0.718||0.608||0.515||0.436|
|January (Rs. '000)||February (Rs. '000)||March (Rs. '000)|
|November (Rs. ’000)||December (Rs. ’000)|
You are required to prepare a monthly cash budget for the three months from January to March, 2021.
ICAI CA Inter Dec 2021 Question. 2
Following are the data in respect of ABC Industries for the year ended 31st March, 2021:
|Debt to total assets ratio||0.40|
|Long-term debts to equity ratio||30%|
|Gross profit margin on sales||20%|
|Accounts receivables period||36 days|
|Inventory holding period||55 days|
|Cost of goods sold||Rs. 64,00,000|
|Equity share Capital||20,00,000||Fixed assets|
|Reserves & surplus||Inventories|
|Long-term debts||Accounts receivable|
Complete the Balance Sheet of ABC Industries as on 31 March, 2021 All calculations should be in nearest Rupee. Assume 360 days in a year.
ICAI CA Inter Dec 2021 Question. 3
Earnings before interest and tax of a company are Rs. 4,50,000. Currently the company has Rs. 80,000 Equity shares of Rs. 10 each, retained earnings of Rs. 12,00,000. It pays annual interest of Rs. 1,20,000 on 12% Debentures. The company proposes to take up an expansion scheme for which it needs additional fund of Rs. 6,00,000. It is anticipated that after expansion, the company will be able to achieve the same return on investment as at present. It can raise fund either through debts at rate of 12% p.a. or by issuing Equity shares at par. Tax rate is 40%.
Compute the earning per share if:
(i) The additional funds were raised through debts.
(ii) The additional funds were raised by issue of Equity shares.
|Machine 1||Machine 2|
|Initial investment||Rs. 12,00,000||Rs. 16,00,000|
|Estimated useful life||3 years||5 years|
|Residual value||Rs. 1,20,000||Rs. 1,00,000|
|Contribution per annum||Rs. 11,60,000||Rs. 12,00,000|
|Fixed maintenance costs per annum||Rs. 40,000||Rs. 80,000|
|Other fixed operating costs per annum||Rs. 7,20,000||Rs. 6,10,000|
(i) Which machine is more beneficial, using Annualized Equivalent Approach? Ignore tax.
(ii) Calculate the sensitivity of your recommendation in part (i) to change In the contribution generated by machine 1.
Information of A Ltd. is given below:
· Earnings after tax 5% on sales
· Income tax rate: 50%
· Degree of Operating Leverage: 4 times
· 10% Debenture in capital structure : 3 lakhs
· Variable costs: 6 lakhs
(i) From the given data complete following statement :
|Less : variable costs||Rs. 6,00,000|
|Less : fixed costs||XXXX|
|LESS : interest expenses||XXXX|
|Less : Income tax||XXXX|
Write short notes on Bridge Finance and Clean Packing Credit.
ICAI CA Inter Dec 2021 Question. 6 (b)
Distinguish between Scenario Analysis &Sensitivity Analysis.
ICAI CA Inter Dec 2021 Question. 6 (c)
Explain in brief the phases of the evolution of financial management.
Adjustment of risk is required in capital budgeting decision, give reasons for it.
SECTION - B
ICAI CA Inter Dec 2021 Question. 7 (a)
The following information is given:
|Particulars||Amount in (Rs.) Crore|
|Notes in circulation||25,00,000|
|Circulation of rupee coins||26,000|
|Circulation of small coins||850|
|Cash on hand with banks||95,000|
|Bankers’ deposits with RBI||4,500|
|Other deposits with RBI||180|
|Total post office deposits||12,000|
|Time deposits with banks||15,000|
You are required to compute:
(i) Currency with the Public; and
(ii) Reserve Money.
ICAI CA Inter Dec 2021 Question. 7 (b)
The Nominal GDP and Real GDP of a country in the financial year 2018-19 were Rs. 1,500 crore and Rs. 1,200 crore respectively, you are required to calculate:
(i) GDP deflector in the financial year 2018-19 and comment.
(ii) Inflation rate in the financial year 2019-20 assuming GDP deflator rate in this year is 140 as compared to the year 2018-19.
ICAI CA Inter Dec 2021 Question. 7 (c)
Explain the features of Contractionary Fiscal Policy.
ICAI CA Inter Dec 2021 Question. 7 (d)
Describe the types of transactions in the forex-market and also distinguish between forward premium and forward discount.
ICAI CA Inter Dec 2021 Question. 8 (a)
The following information is related to an economy:
|Particulars||Amount in (Rs.) crore|
|Net indirect tax||400|
|Net factor income from aboard||10|
Calculate the followings
(i) Gross Value of Output (GVOMp)
(ii) Gross Value Added (GVAMP)
(iii) Net Value Added (NVAMp)
(iv) Net Domestic Product (NDPFc)
(v) Net National Product (NNPFc)
ICAI CA Inter Dec 2021 Question. 8 (b)
(i) Discuss the role of government interventions in minimizing the market power.
(ii) Calculate Narrow Money (M) from the following information:
|(Rs. In crore)|
|Currency with public||2,80,000|
|Demand deposits with banks||4,00,000|
|Time deposits with banks||3,40,000|
|Other deposits with RBI||5,80,000|
|Post Office Savings Deposits||90,000|
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