SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

Section A (Two Marks Questions)

1. What are invisibles in the balance of payments

A. The current account records all exports and imports of merchandise and invisibles.
Invisibles include (a) Services b) income flows iii) unilateral transfers
Services earnings/payments include earnings on royalties, transportation and
communication. Income flows includes payments made or payments received on
foreign borrowings, earnings in the form of interest, dividends and rent. Unilateral
transfers like contributions to international institutions, gifts or aid to the foreigners.

2. What is the law of one price

A. The law of one price states that if a commodity or product can be sold in two
different markets, its price should be the same in both the markets.

3. What is foreign exchange risk?

A. The risk that the one currency will appreciate or depreciate against another currency
over a period of time.

4. What is forward rate?

A. Forward rate is the rate negotiated agreement between two parties for selling/buying
specified amount of a specified currency at a fixed rate and date. If the exchange of
currencies takes place after a certain period from the date of the deal(more than two
working days) it is called forward rate.

5. What is a currency futures contract?

A. A currency futures contract is a standardized agreement to deliver or receive a
specified amount of a specified currency at a fixed rate and date

6. What is functional currency and reporting currency?

A. Functional currency is defined as the currency in which the affiliate operates and in
which it generates cash flows. Generally it is the local currency of the country in
which the affiliate conducts most of its business. Under certain circumstances the
functional currency may be the parents firms home currency or some third country
currency.
The reporting currency is the currency in which the parent firm prepares its own
financial statements. This currency is normally the home currency, i.e the currency of
the country currency i.e the currency of the country in which the parent is located and
conducts most of its business

7. The US-Thai Bath rate is USD 0.2334 /Bath and the US Dollar Indian Rupee
exchange rate is USD 0.02234/ Rupee. What is Rs/Bath exchange rate?
A.

8. What is covered interest rate arbitrage?

A Covered interest arbitrage is the investment strategy where an investor buys a
financial instrument denominated in a foreign currency, and hedges his foreign
exchange risk by selling a forward contract in the amount of the proceeds of the
investment back into his base currency. The proceeds of the investment are only
known exactly if the financial instrument is risk-free and only pays interest once, on
the date of the forward sale of foreign currency or some foreign exchange risk

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

remains.

9. What is marking to market?

A. Settling changes in the value of futures contracts on a daily basis. When the futures are
marked to market at the end of each trading day, the previous trading days futures
contract is settled. The counterparties realize their profits or losses on a day-to-day
basis rather than all at once upon the maturity of the contract. The daily settlement as
per the marked-to-market procedure reduces the default risk of the futures contract.

10. What is PPP?

A. PPP states that the home currency price of a commodity in different countries
when converted into a common currency at the spot exchange rate, is the same in
all the countries across the world.

11. Distinguish between Direct and Indirect quotation.

A. Direct Quote: A direct quote is the number of units of home currency that can be
exchanged for one unit of a foreign currency.
1 FX (foreign currency) = no of units of DX (domestic currency)
Indirect Quote: is the number of units of the foreign currency exchanged for one unit
of home currency.
1 DX (Domestic currency) = no of units of FX(foreign currency)

12. What is clean and direct float?

A. Dirty Float: It is an exchange rate system in which exchange rates are allowed to
fluctuate without set boundaries and government intervene as they wish
Clean Float: It is an exchange rate system in which exchange rates are allowed to
fluctuate as per the demand and supply and government/monetary authority do not
intervene.

13. Who are the participants in the foreign exchange market?

A. The participants of the foreign exchange market are
i. Retail Customers: Tourists, Students seeking education, restaurants, shops
hotels, importers and exporters.
ii. Foreign Exchange dealers (Wholesalers) which include large commercial banks
investments banks, corporations, HNI(High Net-worth Individuals)
iii. Foreign exchange brokers who buy/sell currencies for commission
iv. Nations Central Banks like RBI

14. Define translation exposure?

A. Translation exposure is also called as Accounting exposure. It is exposure which
measures the effect or impact of the exchange rate changes/fluctuations on the
financial statements. It effects both the income statement and balance sheet items

15. What is syndicated loan?

A. Syndicated loans are different from general loans in that one of the lending banks is
the lead manager who originates the transaction, structures it, selects the lending
members, supervises the documentation and in many cases services the loan after
agreement is complete. It serves as a link between the borrower and the other banks of
the syndicate. It collects interest and principal from the borrower and disburses the
collected amount among the co-lenders at an additional fee.

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

16. Distinguish between absolute and relative PPP theory?

A. Absolute PPP: The absolute version of the PPP theory is also called the law of one
price, suggests that prices of identical products in two different countries should be equal
when measured in common currency. The assumption of the absolute PPP is that there are
no transaction costs or trade barriers.
The relative form of PPP is an alternative version that accounts for the possibility of
market imperfection such as transportation costs, tariffs and quota. According to this
version prices of similar products of different countries will not necessarily be the same
when measured in a common currency because of these market imperfections.
The percentage change in the foreign currency (ef)

ef = (1 + Ih ) / (1+ If) 1
Ih Inflation rate of the home currency
If Inflation rate of the foreign currency

17. What is theory of comparative advantage?

A. David Ricardo, in 1817, enunciated his refinement of Smith's concept by postulating
the principle of comparative advantage (as opposed to Smith's concept of absolute
advantage). The theory of comparative advantage states that even if a country is able to
produce all its good at lower costs than another country can, trade still benefits both
countries, based on comparative costs.

18. Write the structure of current Account in BOP?

A. The current account consists of all exports and imports of merchandise and invisibles.
Merchandise includes agricultural commodities and industrial components and
products. Invisibles include services, income flows in and out of the country and
unilateral gifts. Export of services include various banking, insurance, consulting and
accounting undertaken by individuals and firms. Import of services include residents
tourists spending abroad, payments made to the firms for their services and royalties
on foreign books etc.

19. Who are authorised dealers?

A. Authorised dealers are wholesale dealers of the currencies of different countries.
These are authorised by the central banks of that particular country to deal with
currencies. They normally deal with large amounts of currencies.

20. State three benefits of centralised cash management system?

A. i. Maintaining minimum cash balance during the year.
ii. Judiciously manage the liquidity requirements of the centre
iii. Optimally utilize the various hedging strategies so as to minimize the MNCs
foreign exchange exposure
iv. Helping the centre to take complete advantage of multinational netting so as to
minimize the MNCs foreign transaction costs and currency exposure.

21. Explain the terms bid rate and offer rate

A. Bid rate: Is the rate at which the bank (dealer) buys one unit of the foreign currency
Ask rate: Is the rate at which the bank (dealer) sells one unit of the foreign currency

22. What do you mean by short position?

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

A. A market commitment is the number of contracts bought or sold for which no

offsetting transaction has been entered into. The buyer of an asset( currency) is said to
have a long position, and the seller of an asset(currency) is said to have a short position.
One has a long position when one owns something, while one has a short position when
something is sold, especially sold short

23. What is country risk?

A. Is the risk which emanates from political, social, and economic(financial) instability of
a country and manifests in the form of more or less strong hostility towards foreign
investments.

24. What is economic exposure?

A. Economic exposure measures the impact of unanticipated currency changes on
monetary transactions as well as the uncertain future cash-flows generated by the firms
income-generating real assets.

25. Contrast the speculative and hedging motives for usage of derivatives
A.

26. Consider the value of the DEM relative to the USD. The spot rate is DEM 1.82. The
interest rates in the US and Germany are 5% and 3% respectively. Estimate the price
on a 4-month forward contract on DEM.
A.

27. Assume that US inflation rate is 8% and the Mexicos inflation rate is 10% per year.
What is the NPV of the investment in Mexico if the real value of the Peso is
unchanged over the period
A.

28. What do you mean by balance of payments?

A. The BOP(Balance of Payments) of a country can be defined as a systematic record of
all economic transactions between the residents of a country and the residents of the
other countries of the world over a specified period of time(usually one year).

29. If the inflation rate in the country is 6.5% and expected real interest rate is 5%, then
what is the nominal interest rate an investor should earn?
A.

30. What is the difference between absolute and relative purchasing power parity theory?
A.

31. Differentiate between risk and exposure?

A.

32. What do you mean by soft or weak and hard or strong currency?
A.

33. What is interest rate parity? Explain the terms with examples bid and ask quote.
A.

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

34. What is the difference between a put on British pounds sterling and call on sterling
A.

35. Explain the meaning of cross-rate consistency

A.

36. Define the terms hedging and currency risk

A.

37. What do you mean by political risk?

A. Political risk is the exposure to a change in the value of an investment or cash-flows of
a foreign firm arising out of unexpected change in the political environment of the host
country. Political risks are caused by the unanticipated changes in the tax laws, labour
laws and other laws that hurt the profitability and viability of the foreign projects.

38. What is dollarization

A.
39. What is triangular Arbitrage?
A. If three currencies are involved in an arbitrage operation, it is called a three point
arbitrage. In a triangular arbitrage one currency is traded for another currency, which
is traded for the third currency, which is then traded for the first currency. Triangular
arbitrage exists when the currency direct quotes are not in alignment with the cross
exchange rates.

Section-B
1. Explain the three types of transactions takes place in forex market?
2. USD/INR spot 48.75/80
2 month swap 12/20
USD/JPY spot 125.50/126.10
2 month swap 20/15
Find INR/JPY 2 month outright.
3. Explain the features of futures market.
4. German firms buys a call option on $10,00,000 with a strike price of DM 1.60/$ and
premium of 0.03 DM per $. The interest rate opportunity cost is 6% per annum.
Maturity period is 180 days.
a) What is the break even spot rate beyond which the firm makes a net gain?
b) Suppose the six month forward rate at the time of the option was 1.62 DM/$
forward rate? Year can be taken as made up of 360 days.
5. Gold Ltd is wholly owned subsidiary of British based company. Following is the non-
consolidated balance sheets of both Platinum Ltd a parent company and Gold a
subsidiary

Assets Platinum(GBP Gold(INR) Liabilities Platinum(GBP Gold(INR)

) )
Plant 5,000 1,25,000 Equity 4,500 1,00,000
&Machinery
Investments 3,000 - Retained 1,850 48,000
earnings

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

Cash 1,100 18,000 Long term 4,000 35,000

loan
Stock 1,500 45,000 Payables 1,500 25,000
Receivables 1,250 20,000
Total 11,850 2,08,000 Total 11,850 2,08,000

The historical rate applicable for assets and liabilities is Rs 65.75 and current spot rate is Rs
65.75 and the current spot rate is Rs 73.85. Prepare a consolidated balance sheet by assuming
monetary and non-monetary method of transaction.

6. Bring out the various internal strategies a firm can take if it anticipates depreciation
/appreciation of home currency against the foreign currency
7. In London a dealer quotes GBP/CHF spot 3.5250/50, GBP/JPY Spot 180.80/181.30
what do you expect CHF/JPY rate to be Geneva?
8. What are the objectives of IMF?
9. State the main features of currency futures?
10. One year dollar interest rate is 5%. The GBP rate is 8%. The spot rate of USD against
GBP is $1.60. Find the 1 month forward, 6 month forward and 1 year forward rates.
11. If Bank A in London quotes
USD/CHF : 1.4955/1.4962
Bank B in New-york Quotes
CHF/USD : 0.6695/0.6699
Is there an arbitrage opportunity?
12. State the methods of managing transaction exposure
13. Why do discrepancies arises in the balance of payment?
14. Explain the purchasing power parity theory and rationale behind it?
15. What factors influencing pricing of a currency option?
16. Distinguish between currency futures and options?
17. The exchange rate of US dollar is Rs 49.60 and Rs 50.00 three months forward. You
are certain that after three months it will be Rs 50.20.What action will you take to
speculate in the forward market? What is the expected profit on speculation? If the
spot rate for the dollar turns out to be Rs 49.80 after three months what is the gain or
loss to you?
18. Given the following data:
Spot rate Rs 50.0015 per dollar
6 months forward rate Rs 50.8020 per dollar
Annualised interest rate on six months rupee 12%
Annualised interest rate on six month dollar 8%
Calculate the Arbitrage possibilities
19. Explain the different types of transactions takes place in forex market.
20. Distinguish between futures and forwards
21. ABC Co is to pay 1 million DM on 1st October in the current year. It wants to make
sure that it does not pay too high in case the DM appreciates. It buys a call option by
paying 3% premium on the current price. The current rate is Rs 22.10/DM. Determine
the net price paid per DM. Suppose on 1st October, the spot rate is Rs 21.92, will the
company exercise its call option?
22. a) The US $ -SFr rate is US$ 0.2339 SFr and the US dollar, Indian Rupee exchange
rate is US$ 0.2538 Rs what is Rs SFr exchange rate?
b)An importer has purchased from France goods worth 50,000 FFr. There is no quote
available for Rs v/s FFr. The quotes available are:

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

i) US$ = Rs 45.05/10
ii) US $ = Rs 5.1025/50. What is the value of this transaction in Rupee terms.
23. ABC ltd manufactures metal in England. It is the wholly owned subsidiary of XYZ Ltd of USA.
The functional currency for ABC is the pound sterling which currently sells at $ 1.5000/. The
reporting currency for XYZ is the US$. Non-consolidated financial statements for both ABC
and XYZ are as follows (in thousands):
Assets XYZ($) ABC() Liabilities XYZ($) ABC()
Cash 8,000 2,000 Current 22,000 4,000
liabilities
Accounts 10,000 4,000 5 year term - 4,000
Receivables loan
Inventory 8,000 2,000 Capital 9,000 2,000
Net plant and 10,000 6,000 Retained 9,500 2,000
equipment earnings
Investment 4,500 -
40,500 14,000 40,500 14,000

a) Prepare a consolidated B/S of XYZ Ltd.

b) What is ABC Ltds accounting expensive in dollars? Use current rate method of
calculation.
c) Before any business activities takes place, the pound sterling depreciates 9% in
value relative to the $. What is the new spot rate?
24. What is XYZ accounting loss or gain, if any by current rate method and monetary and
non-monetary.
25. What are the five basic mechanisms for establishing exchange rates? How does each
work?
26. Why did the fixed exchange regime of 1945-1973 eventually fail?
27. What are the arguments against a firm pursuing an active currency risk management
programme?
28. How can a MNE minimize its translation and transaction exposure simultaneously?
29. What are a countrys objectives when determining tax policy on foreign source
income
30. Explain purchasing power parity principles and the rationale behind it.
31. Distinguish between futures and option
32. Given the following data:
Spot rate 1$ = Rs 42.0010; 6 month forward rate 1$ = Rs 42.8020. Annualised
interest rate on Rupee = 12%. Annualised interest rate on US $= Rs 8%. Calculate the
Arbitrage Possibilities.

SECTION - C
1. What is covered interest rate arbitrage?
Assume spot rate of = $1.60
180 days forward rate = $1.56
180 days interest rate in UK = 4%
180 days interest rate in US = 3%
Is the covered interest arbitrage by US investor feasible?
2. Compare the IRP and PPP theory
3. A company operating in a country having dollar as its unit of currency, has invoiced to
an India Co. The payment being due 3 months from the date of invoice. The invoice
amount is $13,750. At spot it is equivalent to Rs 5,00,000. It is anticipated that the

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

exchange rate will decline by 5% over three months, and in order to protect the $
payment, the importer proposes to hedge. The 3 months forward rate $0.0273
You are required to calculate the expected loss.
a) If hedged b) If there is no hedge
4. Briefly explain the important factors that should be assessed from the points of view
of Income tax, while entering into foreign collaboration agreement.
5. FDI flows into India are around 3.4% which is very low when compared to china and
Hongkong. What policy measures do you think the regulatory authorities should
initiate to attract more FDI flow into the country.
6. The current CHF/USD spot is 0.6675. The following 90 days call option on CHF is
available
Strike price Premium
0.60 0.075
0.65 0.03
0.68 0.01
0.70 0.005
0.75 0.002

Your view is that the CHF is going to make strong up move during the next 90 days.
Your risk appetite is moderate. What strategy is suitable for you? Explain with the payoff
table.

7. Investment in Thailand requires 10 Mn USD. The life of the project is 5yrs. The
company wants to maintain the debt equity ratio of 1:1. Normally in Thailand the cost
of debt is 12%. The cost of the equity of the firm is 14.6%. The project is considered
as the eligible project from the world bank and hence world bank has agreed to lend
the required amount at the subsidized rate of 10%. The operating profits after the
adjustment for depreciation is expected to be 3 Mn USD every year ( no further
adjustment for depreciation is required). Evaluate the project under APV method if
the tax rate is 40%.

8. What do you mean by Depository Receipt and also explain the mechanism of
depository receipt, what are its advantages.

9. An Indian based needs to borrow USD 1Mn or equivalent for 180 days to settle its
raw materials payments. It faces the following rates.
USD/INR spot is 48.90/49.05
Swap points for 180 days 15/20
The interest rate in US is 5.00/5.25%
The companys banker advised it to take a JPY than instead. A JPY Loan is available
at 2.8%. The company checks USD/JPY exchange rate and find the following quotes.
USD/JPY spot 123.75/124.10
Swap points for 180 days 20/10
In which currency will Indian company borrows. Its corporate policy is not to take
any currency risk.

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

10. Summarize the various considerations that enter into decision to choose the currency,
market and vehicle for long-term borrowing.
11. Explain the different methods by which a foreign exchanger dealer can hedge a
forward transaction.
12. Discuss the general functions involved in international cash management.
13. ABC Ltd wishes to borrow Rs 10 million at a fixed rate for 5yrs and has been offered
either 12% fixed rate or six month LIBOR+0.5 %. XYZ company wishes to borrow
Rs 10 million at a floating rate of LIBOR + 0.5 % and has been offered 10% fixed
rate.
a) How do they enter into a swap arrangement in which each benefit equally?
b) What risks does this arrangement has? Explain in detail.
14. MK Inc is a US based MNC that conducts a part of its business in Malaysia. Its US
sales are denominated in US dollars while its Malaysian sales are denominated in
Malaysian dollars. Its Proforma income statement for the next year is shown below.
Show how the costs, revenue and earnings are affected by three possible exchange
rate scenarios for the Malaysian dollar:
i) $1.45
ii) $1.50
iii) $1.60
Assume US sales will be unaffected by the exchange rate. Also assume that Malaysian
dollar earnings will be remitted to the US at the end of the period.
Revenue and costs estimate (of MK Inc in millions of US dollars and Malaysian
dollar)
US Business $ Malaysian Business (M$)

Sales 1900 200

Cost of goods Sold 800 50

Gross Profit 1100 150

Operating expenses 600 100

EBIT 500 50

Interest expenses 200 70

EBT 300 -20

15. A US parent owes $5 million to its English affiliate. The timing of this payment
can be charged by upto 90 days in either direction. Assume the following effective
annualised after tax dollar borrowing and lending rates in England and the United
states. Lending(percent) Borrowing(percent)
US 4.00 3.20
England 3.60 3.00
Prepared by Ravindra Babu (RB)
SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

a) If the US parent is borrowing funds while the English affiliate has exceeds funds
should the parent speed up or slow down its payment to England
b) What is the net effect of the optimal payment activities in terms of charging the
units borrowing costs and/or interest income
15. Why is it important to study International Financial Management? How is it different
from Domestic Financial Management?
16. An American firm purchases $ 4,000 worth of perfume (FF 20,000) from a French
firm. The American distributor must make the payment in 90 days in FF. The
following quotation and expectations exist for the FF.
Present spot rate $ 0.2000
90 days forward rate $ 0.2200
US interest rate 15%
French Interest rate 10%
Your expectation of the spot rate 90 days hence $0.2400.
a) What is the premium or discount on the forward French Francs? What is the
interest differential between US and France? Is there an incentives for covered
interest arbitrage?
b) If there is a CIA, how can an arbitrageur take advantage of the situation?
Assume: i) The arbitrageur is willing to borrow $4,000 or FF 20,000 and
ii) there are no transaction are $ 50, would an opportunity still for CIA?
17. Company A wishes to borrow 10 million at a fixed rate for 5 years and has been
offered either 11% fixed or six months LIBOR + 1%. Company B wishes to borrow
10 Million at a floating rate for 5 yrs and has been offered either 10% fixed or 6%
month LIBOR +0.5% i) How do they enter into swap arrangement in which each
benefit equally? ii) What risks did this arrangement generate?
18. Spot and 180-day forward exchange rates of several major currencies are given below.
For each pair, calculate the percentage premium or discount expressed as annual rate.
Quoted Spot rate 180 day forward rate
European Euro $0.8000/ $0.8160/
British Pound $1.562/ $1.5300/
Japanese yen 120.00/$ 118.00/$
Swiss Franc SF 1.6000/$ SF 1.6200/$
Hong-kong dollar HK $ 8.0000/$ HK $ 7.8000/$
19. Assume a call option on euros is written with a strike price of $ 0.9400/ a premium
of 0.9000 per euro $0.0090/ and within an expiration data three months from now.
The option is for 1,00,000. Calculate your profit or loss your exercise before
maturity at a time when euro is traded spot at:
a) $ 0.9000/ b) $ 0.9200/ c) $ 0.9400/ d) $ 0.9600/ e) $ 0.9800/
f) $ 1.000/ g) $ 1.0200/
20. Define International Fischer effect. Explain to what extent do empirical tests confirm
that the international Fisher effect exists in practice.

Prepared by Ravindra Babu (RB)

SRN ADRASH COLLEGE International Financial Management(IFM) REVISION QUESTIONS(RB)

21. What are the main disadvantages for a firm located in an illiquid market and also in a
segmented market.
22. Explain the OLI paradigm in relation to FDI. Explain the behavioural approach to
FDI.
23. What do you understand by the term International Cash Management? Briefly
elucidate its objective.
24. Identify factors to be considered when assessing country risk. Briefly elaborate how
each factor can affect the risk to the MNC.
25. Company A wishes to borrow 10 million at a fixed rate for 5 yrs and has been offered
either 11% fixed or six month LIBOR + 1% . Company B wishes to borrow 10
million at a floating rate for 5yrs and has been offered either 10% fixed or 6- month
LIBOR + 0.5%.
a) How do they enter into swap agreement in which each benefit equally?
b) What risks did this arrangement generate?
26. Farm products is the Canadian affiliate of a US manufacturing company. Its balance
sheet in thousands of Canadian dollars (C$) for January 1, 2001 is shown below. The
January 1, 2001 exchange rate was C$ 1.6/US dollar.

Farm Products Balance Sheet (Thousands of C$)

Assets Liabilities
Cash C$1,00,000 Current Liabilities C$ 60,000
Account Receivable C$ 2,20,000 Long Term Debt C$ 1,60,000
Inventory C$ 3,20,000 Capital & Stock C$ 6,20,000
Net Plant &Equipment C$ 2,00,000
Total C$ 8,40,000 C$ 8,40,000
a) Determine farm products accounting exposure on January 1, 2001 using the
current rate method/ non current rate method.
b) Calculate farm products contribution to its parents accounting loss if the exchange
rate on December 31, 2001 was C$ 1.8 per US dollar. Assume all accounts remain
as they were at the beginning of the year.
27. While you were visiting London, you purchased Jaguar for 3500 payable in three
months. You have enough cash at your bank in New York City which pay 0.35%
interest per month. Compounding monthly to pay for the car. Currently the spot
exchange rate is $ 1.45 / and the three month forward exchange rate is 1.40$/. In
London the money market Interest rate is 2.0 % for a three month investment. These
are two alternatives ways of paying for your Jaguar.
i) Keep the funds at your bank in the United States and buy 35000 forward.
ii) Buy a certain amount of pound spot today and invest the amount in the UK for
three months so that the maturity value becomes equal to 35000.
Evaluate each payment method. Which method would you prefer

Prepared by Ravindra Babu (RB)