RSK4804
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2023
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
FIRST: MR. S MOLEFE
SECOND: MR. M NXUMALO
EXTERNAL: DR. H Le ROUX
This assessment consists of 21 pages.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10pt.
4. Remember to sign the declaration page at the end of this document. Your work will not be
marked UNLESS that page is completed.
, RSK4804
Date: 30 January 2023
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the Invigilator App and YOUR EXAM QR CODE & EXAM
scan this QR code. ACCESS CODE
If you encounter difficulty in scanning the QR code, you can alternatively enter the
Exam Access Code below the QR code to start the invigilation.
Unless otherwise specified by your institution, note that you can only scan this QR
code once. If your assessment has multiple online sections, tests or attempts, you
should NOT finish the invigilation until your entire assessment has been completed.
Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible to start the invigilation.
Exam Access Code: d3d4642d
Once the QR code is scanned, ensure your media volume Is turned up and place your
smartphone next to you. The Invigilator App will notify you with a notification beep
when you are required to action a request, which you should then perform.
We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device you may access your assessment in the application by pressing the ‘Access Exam’ button in the top right
corner of your app.
Keep the Invigilator App open on your cell phone for the full duration of the assessment. You are not allowed to minimise or
leave the app.
Ensure you are connected to the internet in order to commence the invigilation as well as at the end of the assessment. No internet
connection is required during the assessment.
You have to adhere to the assessment time limit communicated to you by your institution as the time displayed in the Invigilator
App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early.
If you are performing a written or Scan-and-Upload assessment:
The Invigilator App may request you to take a picture of every page of your answer sheet at the end of the assessment. Unless
otherwise specified by your institution, this does NOT replace the normal upload of your script to your institutions online
portal
After completing invigilation and following all app instructions, you must upload your Invigilation App data. If however there is a delay in
the upload of the app data at the end of the assessment, you should prioritise the upload of your script to your university portal and you
can temporarily minimise the app to do so. Uploading of app data is not time sensitive and you can come back and do it after you have
successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on 073 505 8273.
, CONFIDENTIAL
Page 2 of 21 RSK4804
January/February 2023
QUESTION 1 [15]
You are a new credit manager for Mbabane National Bank. An application for a temporary loan
facility to bridge Ngwane Transport and Logistics’ working capital requirements, lands on your
desk. Consult the information below, to assist you in making an informed decision:
Account Opening Balance Closing Balance
a. Inventory R23m R20m
b. Accounts receivable R30m R26m
c. Accounts payable R22m R24m
d. Net sales during the year were R90m, while cost of goods sold amounted to 60% of the
sales. Interpret the cash conversion cycle if the industry average is 85 days.
i. Calculate Ngwane Transport and Logistics’ operating cycle and working capital
(cash conversion) cycle. (13)
ii. Communicate your decision to the relationship manager and make
recommendations. (2)
[TURN OVER]
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2023
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
FIRST: MR. S MOLEFE
SECOND: MR. M NXUMALO
EXTERNAL: DR. H Le ROUX
This assessment consists of 21 pages.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10pt.
4. Remember to sign the declaration page at the end of this document. Your work will not be
marked UNLESS that page is completed.
, RSK4804
Date: 30 January 2023
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the Invigilator App and YOUR EXAM QR CODE & EXAM
scan this QR code. ACCESS CODE
If you encounter difficulty in scanning the QR code, you can alternatively enter the
Exam Access Code below the QR code to start the invigilation.
Unless otherwise specified by your institution, note that you can only scan this QR
code once. If your assessment has multiple online sections, tests or attempts, you
should NOT finish the invigilation until your entire assessment has been completed.
Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible to start the invigilation.
Exam Access Code: d3d4642d
Once the QR code is scanned, ensure your media volume Is turned up and place your
smartphone next to you. The Invigilator App will notify you with a notification beep
when you are required to action a request, which you should then perform.
We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device you may access your assessment in the application by pressing the ‘Access Exam’ button in the top right
corner of your app.
Keep the Invigilator App open on your cell phone for the full duration of the assessment. You are not allowed to minimise or
leave the app.
Ensure you are connected to the internet in order to commence the invigilation as well as at the end of the assessment. No internet
connection is required during the assessment.
You have to adhere to the assessment time limit communicated to you by your institution as the time displayed in the Invigilator
App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early.
If you are performing a written or Scan-and-Upload assessment:
The Invigilator App may request you to take a picture of every page of your answer sheet at the end of the assessment. Unless
otherwise specified by your institution, this does NOT replace the normal upload of your script to your institutions online
portal
After completing invigilation and following all app instructions, you must upload your Invigilation App data. If however there is a delay in
the upload of the app data at the end of the assessment, you should prioritise the upload of your script to your university portal and you
can temporarily minimise the app to do so. Uploading of app data is not time sensitive and you can come back and do it after you have
successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on 073 505 8273.
, CONFIDENTIAL
Page 2 of 21 RSK4804
January/February 2023
QUESTION 1 [15]
You are a new credit manager for Mbabane National Bank. An application for a temporary loan
facility to bridge Ngwane Transport and Logistics’ working capital requirements, lands on your
desk. Consult the information below, to assist you in making an informed decision:
Account Opening Balance Closing Balance
a. Inventory R23m R20m
b. Accounts receivable R30m R26m
c. Accounts payable R22m R24m
d. Net sales during the year were R90m, while cost of goods sold amounted to 60% of the
sales. Interpret the cash conversion cycle if the industry average is 85 days.
i. Calculate Ngwane Transport and Logistics’ operating cycle and working capital
(cash conversion) cycle. (13)
ii. Communicate your decision to the relationship manager and make
recommendations. (2)
[TURN OVER]
