BATCH: 2023-25 ROLL NO:

Shree Chanakya Education Society’s

INDIRA SCHOOL OF BUSINESS STUDIES PGDM, PUNE
POST GRADUATE DIPLOMA IN MANAGEMENT

Class Test – 2024

Semester - II

Subject: Financial Markets & Banking Operations Code:

Day & Date: Saturday, 23rd March 2024 Time: 91.15 to 10.15
Total Marks: 20 Duration: 1 Hour

Instructions:

CO 3 DEVELOP operational strategies for financial institutions considering liquidity

management, credit risk assessment, and efficient capital allocation to enhance their
performance.
CO 4 EXAMINE the role of various financial services in growth and development of an
economy (Analysing)

Q.1 A The financial system is one of the most important aspects of the economic CO3
development of our country. There are various participants engaged in the
integration of the system. Identify the role of each participant with respect to
transfer of capital.
Q.1 B Enlist 5 Development Finance Institutions (DFIs) in India. Identify how they CO3
contribute in providing financial support for sustainable development projects and
initiatives to improve the performance of various sectors of economy.
Q.1 C “Money market contribute to liquidity management for financial institutions and CO3
corporations, facilitate short-term borrowing and lending activities, and influence
interest rate benchmarks in the economy.” By making use of the statement identify
the role of money market in India.
Q.1 D ABC Ltd. is considering raising long-term funds to finance its expansion plans CO3
using debt. Crisil Ltd did a credit risk assessment of ABC Ltd and allotted an
AAA rating. Considering Indian perspective identify the suitable instrument to
raise the finance from the capital market.

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 BATCH: 2023-25 ROLL NO:

Q.2 A "NBFCs in India primarily carry out basic banking activities to serve business in CO4
the country." Analyze the role of NBFCs in growth and development of Indian
Economy.
Q.2 B Entrepreneurs play a pivotal role in driving economic growth, innovation, and job CO4
creation in the Indian economy. A young entrepreneur, Ravi, is seeking to start his
own business in India. He needs to understand the features and intricacies of the
Indian financial system to ensure the success and stability of his venture. Analyze
the features of the Indian financial system. Highlight how these features can
impact Ravi's business planning, funding, and growth strategies.

Q.2 C A medium-sized manufacturing company, XYZ Ltd. is seeking short-term CO4

financing to manage its working capital needs. The company's finance team is
considering two options, including borrowing from banks and issuing commercial
paper. Compare and comment which of the instrument will be better for growth
and development of company.
Q.2 D Ajit Jain owns an IT Industry named ‘Info-Solution Pvt Ltd’ situated in Pune. He CO4
is running this business Since 2011. Average turnover of his business is Rs 9.5 Cr
in last 3 years. His business is leading into IT Services and is earning a huge profit.
Since he always faces a working capital crunch, he constantly needs funds for
running his company efficiently. He has recently provided software services of
Rs.20 lakhs to a renowned Company and has accepted the credit period of 60 days.
Meanwhile, he has received another order for which he lacks funding. The new
order is amounting to Rs.12 lakhs which is again quite a huge order. After
analyzing the company’s balance sheet, he came across that the company does not
have any assets which can be given as collateral. Thus, helpless for secured
funding. He is confused and unable to decide the exact way for funding.
As a consultant compare and comment which of the following financial services is
suitable for growth of company and why?
1. Forfeiting 2. Factoring
*****

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