Key economic parameters/developments that influence the movements in foreign currency

13 Sep

Financial Institutions and Markets

Q1. Mr. Rajiv Kumar, after completing his MBA from a prestigious management institute, has joined the treasury department of a leading Indian bank in Mumbai. He is assigned to the team responsible for managing the day-to-day liquidity of the bank. Explain in detail the various options available to Mr. Rajiv to manage the liquidity of the bank.

Q2. Mr. Kripa Shankar wants to invest and trade in stock market. However he is completely unfamiliar how to go about it. He approaches you, a wealth advisor in the bank Mr. Kripa Shankar has his savings account, to seek guidance on:

i) Various modes through which he can participate in the stock market

ii) Category of instruments that he can invest in

iii) The basic formalities that he would need to complete (basic pre-requisites), in order to participate in the stock market.

Provide answer in detail to his queries mentioned in point (i), (ii) and (iii) above.

Q.3 ABC Corp. Limited is engaged in manufacturing garments in India since 1950. The company has been catering to the Indian market till now. As part of the company’s growth strategy, the company would like to extend the markets for its products to other countries. However, the company’s promoters lack awareness and expertise in understanding and managing the fluctuations related to foreign currency.

Mr. Jiwan Kumar, the CFO of the company, has been asked to make a presentation to the board specifying the following:

a. Key economic parameters/developments that influence the movements in foreign currency.

b. Options available with ABC Corp. to manage/mitigate the forex risks.

ABC Corp. Limited is engaged in manufacturing garments in India since 1950

13 Sep

Financial Institutions and Markets

Q1. Mr. Rajiv Kumar, after completing his MBA from a prestigious management institute, has joined the treasury department of a leading Indian bank in Mumbai. He is assigned to the team responsible for managing the day-to-day liquidity of the bank. Explain in detail the various options available to Mr. Rajiv to manage the liquidity of the bank.

Q2. Mr. Kripa Shankar wants to invest and trade in stock market. However he is completely unfamiliar how to go about it. He approaches you, a wealth advisor in the bank Mr. Kripa Shankar has his savings account, to seek guidance on:

i) Various modes through which he can participate in the stock market

ii) Category of instruments that he can invest in

iii) The basic formalities that he would need to complete (basic pre-requisites), in order to participate in the stock market.

Provide answer in detail to his queries mentioned in point (i), (ii) and (iii) above.

Q.3 ABC Corp. Limited is engaged in manufacturing garments in India since 1950. The company has been catering to the Indian market till now. As part of the company’s growth strategy, the company would like to extend the markets for its products to other countries. However, the company’s promoters lack awareness and expertise in understanding and managing the fluctuations related to foreign currency.

Mr. Jiwan Kumar, the CFO of the company, has been asked to make a presentation to the board specifying the following:

a. Key economic parameters/developments that influence the movements in foreign currency.

b. Options available with ABC Corp. to manage/mitigate the forex risks.

Mr. Kripa Shankar wants to invest and trade in stock market. However he is completely unfamiliar how to go about it

13 Sep

Financial Institutions and Markets

Q1. Mr. Rajiv Kumar, after completing his MBA from a prestigious management institute, has joined the treasury department of a leading Indian bank in Mumbai. He is assigned to the team responsible for managing the day-to-day liquidity of the bank. Explain in detail the various options available to Mr. Rajiv to manage the liquidity of the bank.

Q2. Mr. Kripa Shankar wants to invest and trade in stock market. However he is completely unfamiliar how to go about it. He approaches you, a wealth advisor in the bank Mr. Kripa Shankar has his savings account, to seek guidance on:

i) Various modes through which he can participate in the stock market

ii) Category of instruments that he can invest in

iii) The basic formalities that he would need to complete (basic pre-requisites), in order to participate in the stock market.

Provide answer in detail to his queries mentioned in point (i), (ii) and (iii) above.

Q.3 ABC Corp. Limited is engaged in manufacturing garments in India since 1950. The company has been catering to the Indian market till now. As part of the company’s growth strategy, the company would like to extend the markets for its products to other countries. However, the company’s promoters lack awareness and expertise in understanding and managing the fluctuations related to foreign currency.

Mr. Jiwan Kumar, the CFO of the company, has been asked to make a presentation to the board specifying the following:

a. Key economic parameters/developments that influence the movements in foreign currency.

b. Options available with ABC Corp. to manage/mitigate the forex risks.

Mr. Rajiv Kumar, after completing his MBA from a prestigious management institute

13 Sep

Financial Institutions and Markets

Q1. Mr. Rajiv Kumar, after completing his MBA from a prestigious management institute, has joined the treasury department of a leading Indian bank in Mumbai. He is assigned to the team responsible for managing the day-to-day liquidity of the bank. Explain in detail the various options available to Mr. Rajiv to manage the liquidity of the bank.

Q2. Mr. Kripa Shankar wants to invest and trade in stock market. However he is completely unfamiliar how to go about it. He approaches you, a wealth advisor in the bank Mr. Kripa Shankar has his savings account, to seek guidance on:

i) Various modes through which he can participate in the stock market

ii) Category of instruments that he can invest in

iii) The basic formalities that he would need to complete (basic pre-requisites), in order to participate in the stock market.

Provide answer in detail to his queries mentioned in point (i), (ii) and (iii) above.

Q.3 ABC Corp. Limited is engaged in manufacturing garments in India since 1950. The company has been catering to the Indian market till now. As part of the company’s growth strategy, the company would like to extend the markets for its products to other countries. However, the company’s promoters lack awareness and expertise in understanding and managing the fluctuations related to foreign currency.

Mr. Jiwan Kumar, the CFO of the company, has been asked to make a presentation to the board specifying the following:

a. Key economic parameters/developments that influence the movements in foreign currency.

b. Options available with ABC Corp. to manage/mitigate the forex risks.

Financial Institutions and Markets

13 Sep

Financial Institutions and Markets

Q1. Mr. Rajiv Kumar, after completing his MBA from a prestigious management institute, has joined the treasury department of a leading Indian bank in Mumbai. He is assigned to the team responsible for managing the day-to-day liquidity of the bank. Explain in detail the various options available to Mr. Rajiv to manage the liquidity of the bank.

Q2. Mr. Kripa Shankar wants to invest and trade in stock market. However he is completely unfamiliar how to go about it. He approaches you, a wealth advisor in the bank Mr. Kripa Shankar has his savings account, to seek guidance on:

i) Various modes through which he can participate in the stock market

ii) Category of instruments that he can invest in

iii) The basic formalities that he would need to complete (basic pre-requisites), in order to participate in the stock market.

Provide answer in detail to his queries mentioned in point (i), (ii) and (iii) above.

Q.3 ABC Corp. Limited is engaged in manufacturing garments in India since 1950. The company has been catering to the Indian market till now. As part of the company’s growth strategy, the company would like to extend the markets for its products to other countries. However, the company’s promoters lack awareness and expertise in understanding and managing the fluctuations related to foreign currency.

Mr. Jiwan Kumar, the CFO of the company, has been asked to make a presentation to the board specifying the following:

a. Key economic parameters/developments that influence the movements in foreign currency.

b. Options available with ABC Corp. to manage/mitigate the forex risks.

Financial Institutions and Market

27 Jun

1. XYZ Ltd. is a Govt. recognized export house with annual turnover of Rs 2200 Crores Mr Pathak is Vice President- Finance of the Company. The company follows policy of no hedging of the US$ exposure. What all risks that Mr. Pathak has to enlists in his presentation to the management in a floating exchange rate scenario?

2. PSL Bank Ltd. is a private sector bank. The treasury division has an immediate need to arrange Rs. 100 Crores to finance its one of the top corporate client. However the requirement is for very short period of around 7 days. So what sources are available for Mr. Das to raise the required fund, who heads the treasury divisions of the Bank?

3. A) LMH Ltd. Has floated an Investment Company. You are appointed as the CEO to spearhead the investment in secondary market. So to initiate these investments, explain the mechanism that you will follow.

3. B) JFK Ltd. is listed Company on the exchange and the share price is quoted at Rs. 340 as of today, the Company reported EPS of Rs. 25.00 for FY 2017. In the recently concluded board meeting, the Company announced stock split and accordingly, the face value has been reduced to Rs5.00 from Rs. 10.00. The outstanding shares of the Company are 30,00,000. Calculate the number of outstanding shares of the Company post stock split and adjusted share price of the Company post stock split. Also calculate the PE ratio of the Company post stock Split.