“Meet the CFO”

We are first year MBA students, currently pursuing our study at KCT Business School. As a part of our
Financial Management course, we undertake this field work titled ‘Meet the CFO’ Main purpose of
this study is to know how Investing decisions, Financing decisions, Dividend decisions and Liquidity
decisions are made in your esteemed firm. Your response to the below mentioned questions will help
us to throw meaningful insights about various financial decisions are made in the firm. We assure you
all the data collected is used for academic purpose only. Your valid response and time are greatly
appreciated. We are hoping for your kind approval and support to gain new understandings. Thank
You

Meeting link: https://kumaragurudtsteam-

my.sharepoint.com/:v:/g/personal/vaisnavi_21mba_kct_ac_in/Eb2rMrOaaCBIicmvJo2pn88B8iMUw
hhFYyNhJwMj9pIIKQ

1. Name of the Organisation and Contact details

SRI RAM FOUNDRY
2. Number of Employees working in the firm

01 to 29 30-59 60-89 90-119 >120

3. Annual turnover of the Firm

<than ₹10lakhs
₹11 Lakhs to ₹ 20 Lakhs
₹21 Lakhs to ₹ 30 Lakhs
₹31 Lakhs to ₹ 40 Lakhs
₹41 Lakhs to ₹ 50 Lakhs
>₹ 51 Lakhs

4. Identify the position held by the respondent

Company Manager Accountant Director Financial General Management

Secretary Controller Manager Accountant
Manager
RAMARAJ
Any other pl. specify :

5. Work Experience of the respondent

Less than 5 years
5 to 10 years
10-15 years
15 years and above

6. Identify the objective of your firm (in a scale of measuring 1 = least important to 5 = Most
important)
Least Slightly Moderately Important Most
Important Important Important Important
Increase sales revenue 5
Increase profitability 5
 Increase employment 5
Offer Provision of service 5
Offer Quality of service 5

5. While making Investment decisions which of the following do you prioritise ((in a scale of
measuring 1 = least important to 5 = Most important)

Least Slightly Moderately Important Most

Important Important Important Important
Maximisation of 5
percentage return on
asset investment
Maximisation of 4
aggregate rupee
earnings
Maximisation of 5
target earnings per
share
Maximisation of 4
target market price
per share

6. Identify the areas where you had made new investments or proposed to make new
investments (Pl. choose if required more than 1 option)

Replacement and maintenance of machines

Extension of product lines ✓
Expansion into new areas or markets
Safety of environmental concerns ✓
Research and Development

7. Identify the Purpose of your new investment or proposed investment (Pl. tick all that apply)
Expansion into new business
Investing in new facilities
New product development ✓
Expansion of existing activities ✓
Diversification
Merger and Acquisition
Equipment Replacement
Modernisation ✓
Adopting new technology ✓
Research and Development
Training and Development
Any other capital project

8. Identify the techniques used in project evaluation (Strongly Agree to Strongly Disagree)
Strongly Agree Moderate Disagree Strongly
Agree Disagree
Payback period ✓
 Discounted payback ✓
period
Net Present value ✓
Internal Rate of ✓
Return
Profitability Index ✓
Accounting Rate of ✓
Return

9. What is the acceptance range of Payback period for your projects?

Less 1 to 3 1 to 5 2 to 3 3 to 4 3 to 5 4 to 5 More
than 1 years years years years years years than 5
year years
✓

10. What is the acceptance range of Internal Rate of Return for your projects is
5% to 9% 10% to 14% 15% to 19% 20% to 24% ➢ 25%

✓
11. How do you determine the minimum required rate of return for evaluating your projects (in
a scale of strongly agree to strongly disagree)?
Strongly Agree Moderate Disagree Strongly
Agree Disagree
Management determined target ✓
rate of return
Weighted cost of sources of funds ✓
Cost of specific source of funds ✓
Firm’s historical rate of funds ✓
Industries historical rate of return ✓
Management determined target ✓
rate of return
12. Do you use debt in your business?

Yes no

If Yes pl. answer the following questions:

13. List the factors affect the appropriate amount of debt in your business (Tick all that apply)
Tax advantage of interest deductibility
Potential cost of bankruptcy
Debt level of other companies in your
industry
Your credit rating
Transaction cost for incurring debt
Financial flexibility ✓
Volatility of earnings and cash flows
Suppliers’ perception
Bargain for concessions
Restrict debt so profits can be captured
14. How do you assess risk in your projects
Risk is quantified on individual project basis ✓
risk is assessed subjectively
risk is not assessed at all
15. Which type of risk is faced by you in your business (Tick all that apply)

Risk of unexpected inflation ✓

Interest rate risk
Business cycle risk ✓
Materials price risk ✓
Foreign Exchange risk
R&D risk
Personnel risk
Commodity price risk
Distress risk
Any other risks pl. mention :

16. How do you forecast your cash inflows (Tick all that apply)

Management subjective estimates ✓

Consensus of experts opinions
Quantitative methods: Sensitivity analysis ✓
Quantitative methods: Sophisticated ✓
mathematical modelling
Quantitative methods: Computer
simulation

17. Pl. record your opinion about the dividend policy of your firm (in a scale of Strongly Agree to
Strongly Disagree)
Strongly Agree Neutral Disagree Strongly
Agree Disagree
you expect stable earnings in ✓
your business
You expect high amount of future ✓
earnings
There is possibility of investment ✓
consideration for the availability
of profitable investment
opportunities
Present degree of financial ✓
leverage is favourable to you
Legal rules and constraints such ✓
as paying dividends that would
impair capital
You have the accessibility to ✓
alternative sources of capital
Projections about the future ✓
state of economy is favourable to
your business
 You always prefer to pay ✓
dividends instead of undertaking
risky reinvestments
18. Identify the type of working capital policy followed in your business
Formal Policy
Informal Policy
No Policy ✓
19. Identify the frequency in which you make decisions about working capital in your business
Weekly Monthly Quarterly Annually Whenever Necessary
✓
20. Why do you think you need to manage working capital in your firm (Tick all that apply)
Speeding collection of receivables ✓
Minimising the bank balances
Minimising investments in inventory
Slowing payments of payables

21. How do you monitor your firm’s working capital position (in a rank of 1 to 6)
Return on Investment 6
Net Working capital 6
Cash conversion cycle 5
Current ratio 6
Working capital turnover ratio 6
Benchmarks against competitors 5

22. How do you approach the management of cash in your business (in a rank of 1 to 8)
Managing cash through netting 7
Centralizing cash management decisions 8
Making payments in timely manner 8
Diversifying among banks 8
Minimising float 6
Maintaining emergency liquidity reserves 8
Managing cash through leading and lagging 7
Tendering for bank services 8
23. Identify the major factors influencing cash management of your firm (in a scale of Strongly
agree to strongly disagree)
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Level of Inflation in the economy ✓
Interest rates ✓
Financial and banking environment ✓
market conditions
overall economic environment
Level of Inflation in the economy ✓
Interest rates ✓
Financial and Banking Environment ✓
Market Conditions ✓
Overall Economic Environment ✓
24. Why do you maintain inventory in your business
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Satisfy customer demand ✓
Take advantage of economies of scale ✓
Meet seasonal high demand ✓
Reduce holding costs ✓
Safeguard against wastage ✓
Safeguard against shortage ✓
25. How do you appraise your prospective customers for credit sales
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Customers past records from another business ✓
Customers past financial dealings with the company ✓
Customers bank references ✓
Firms credit rating ✓
26. How do you speed up the collection of receivables?
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Lock box
Special handling of large
remittances
Verbal and written requests ✓
Concentration banking
Cash discounts ✓
RTGS/NEFT ✓
Factoring
27. Identify the technique followed by you to delay in paying accounts payables (In a rank of 1 to 4)
Centralised payables
Payables through drafts or checks
Disbursement from a remote geographical
location
Maximum utilisation of the credit limit