Easy SFM paper .. lets analyse !
Page no : 5
Sahil Goel
(Student CA IPC / IPCC)
(56 Points)
Replied 10 November 2014
upensmarty
(...)
(77 Points)
Replied 10 November 2014
upensmarty
(...)
(77 Points)
Replied 10 November 2014
Preeti
(student)
(37 Points)
Replied 10 November 2014
Preeti
(student)
(37 Points)
Replied 10 November 2014
Sujeet Choudhary
(student)
(50 Points)
Replied 10 November 2014
Piyush Agrawal
(Pursuing CA & CS Final & Doing Practice of Tax Consultants )
(45 Points)
Replied 10 November 2014
Sandeep Rajput
(DGM Finance & Accounts)
(60 Points)
Replied 10 November 2014
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??
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