Institute of Chartered Financial Analysts of India (ICFAI) University 2008 Certification Certified Financial Planner Portfolio management - Question Paper

every portfolio of projects needs to be assessed in terms of its business value and adherence to overall strategy.
To ensure success of PPM in an organization, it has to decide 1st who will manage the PPM team. Generally, PPM is managed
by department head who will give the needed resources and set strategic directions. In general, project managers concern
about scarcity of resources and, in a few cases, also that other organizations stealing their resources is unwanted.
Scarcity of resources is always 1 of the primary constraints in the global business environment. Organizations have always
been trying to do more with fewer resources. As most capital investment goes in the form of projects, organizations need to
manage projects portfolio so as to better manage resources and business risks. In practice, every project manager should have
sufficient resources available to complete high-quality project deliverables, on time and within budget.
The experience reveals that the process of PPM has tremendous potential to impact the ability to create value. PPM creates value
through tight control of costs, strategic resource allocation and coordinated delivery. Further, to create value, it requires tight
control of profit margins, maximum resource utilization and management of customer expectations. Thus, greater understanding
allows management to implement PPM that mitigate against certain scarcity and hence improve project success.
END OF CASELET 3
END OF part E
END OF ques. PAPER
Suggested Answers
Project Management – II (MSF2E4): July 2008
part D : Case Study
1. Profitability Statement
(Rs. in lakh)
Particulars/Years one two three four 5
A. Sales
5216.40 6170.26 7184.49 7435.95 7696.21
Expenses
Raw material
2177.70 2581.45 3012.90 3126.43 3244.95
Repairs & Maintenance
72.04 88.05 160.09 160.09 160.09
Salaries
145.00 159.50 175.45 193.00 212.29
Admn. overhead
417.31 493.62 574.76 594.88 615.70
Power
18.25 19.25 20.31 21.43 22.61
B. Total cost of sales
2830.30 3341.87 3943.51 4095.83 4255.64
OPBIDT (A – B)
2386.10 2828.39 3240.98 3340.12 3440.57
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Suggested Answers with Examiner's Feedback
Less: Depreciation
146.57 146.57 146.57 146.57 146.57
OPBIT
2239.53 2681.82 3094.41 3193.55 3294.00
Less: Financial Charges
Interest on Term Loan
63.26 63.26 63.26 44.28 18.98
Interest on W.C Loan
84.34 104.64 127.25 132.89 138.76

Earning:   Approval pending.