B.B.M Question Papers | ENTRANCE INDIA

State two differences between a FFS and a CFS.
How will you treat interest received on investments under the indirect method of a cash flow statement?
Explain the term notional flow of cash with an example.
M. company presents the following information and you are required to calculate funds from operations:

Profit and Loss Account Rs.
To Operational Expenses	1,00,000	By Gross Profit	2,00,000
To Depreciation	40,000	By Gain on Sale of Plant	20,000
To Loss on Sale of building	10,000
To Advertisement Suspense A/c	5,000
To Discount (allowed to customers)	500
To Discount on Issue of Shares written off	500
To Goodwill	12,000
To Net Profit	52,000
	2,20,000		2,20,000

A firm’s current assets and current liabilities are Rs.24,000 and Rs.6,000 respectively. How much can it borrow from a bank without reducing its current ratio below 1.5?

What is Trend Analysis?

What is meant by capital gearing ratio?

Distinguish between Management Accounting and Financial Accounting on the basis of
Period of reporting ii) Users of information.

How are routine reports different from special reports?

Assuming the current ratio of a company is 2, state with reasons in each case whether the ratio will improve or decline or will have no change.
Payment of current liabilities ii) Purchase of fixed assets.

SECTION – B

Answer any FOUR Each carries 5 marks. (4×5=20)

The following is the Profit & Loss Account of I.T.R. Co., for the year 2012 and its previous year:

I.T.R. Co.

Profit & Loss Account

Particulars	2011	2012	Particulars	2011	2012
	Rs.	Rs.		Rs.	Rs.
To Cost of Sales	4,63,250	4,83,899	By Sales	7,21,456	8,34,250
To Administration Expenses	46,531	54,137	Less: Returns	11,588 7,09,868	13,903 8,20,347
To Selling Expenses	91,823	1,15,632	By Other Incomes: Interests & Dividends	3,795	2,620
To Interest paid	4,275	3,500	Purchase Discount	4,250	3,792
To Loss on Sale of Fixed Assets	1,254	350	Profit on Sale of Land	3,000	–
To Income-tax	43,038	80,390
To net profit	70,742	88,851
	7,20,913	8,26,759		7,20,913	8,26,759

Present the above data in the form of a common size statement.

State by giving reasons whether the following transactions increase or decrease or do not affect the working capital :

a) A company issues Rs.1,00,000 worth of shares for cash.
b) Redemption of Debentures worth Rs.2,00,000.
c) Amount received from Debtors Rs.32,000.
d) Amount paid to creditors Rs.15,000.
e) Advance Income Tax paid Rs.1,00,000..
f) Raw materials purchased Rs.60,000 from ZB Co. on credit basis.
g) Furniture purchased Rs.40,000.
h) Purchased plant worth Rs.1,00,000 by issuing equal amount of Debentures of Rs.500 each.
i) Bills receivable Rs.30,000 discounted for Rs.29,000.
j) Debentures worth Rs.1,00,000 redeemed by raising a long-term loan of equal amount.

Calculate cash from operations from the following:

Profit made during the year Rs.2,50,000 after considering the following items:

Rs.

Depreciation on fixed assets 10,000
Amortization of goodwill 5,000
Transfer to general reserve 7,000
Profit on sales of land 3,000

The following is the position of current assets and current liabilities:

2012 2011

Rs. Rs.

Debtors 15,000 12,000

Creditors 10,000 15,000

Bills Receivable 8,000 10,000

Prepaid expenses 2,000 4,000

14) i) Calculate Stock Turnover Ratio from the following information:

Opening stock = Rs. 40,000

Closing stock = Rs. 44,000

Sales = Rs.4,15,000

Gross Profit ratio = 20%.

ii) Compute pay out ratio from the following data:

No. of equity shares = 3000

Dividend per equity share = Re. 0.40

Net profit = Rs.10,000

Provision for tax = Rs.5,000

Preference dividend = Rs.2,000.

Calculate Quick Ratio from the following Balance Sheet figures:

Liabilities	Rs.	Assets	Rs.
Capital	2,20,000	Fixed Assets	2,00,000
Loan (long-term)	50,000	Stock	50,000
Creditors	40,000	Debtors	50,000
B/P	10,000	B/P	15,000
Other current liabilities	7,500	Cash and Bank Balance	15,000
Provision for Doubtful Debts	2,500
	3,30,000		3,30,000

15) The following data relates to Wipro Ltd.

	2006	2007	2008	2009	2010	2011
	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
Capital	2,00,000	2,50,000	2,80,000	3,00,000	3,50,000	4,00,000
Fixed Assets	1,50,000	1,80,000	2,00,000	2,10,000	1,90,000	2,00,000
Current Assets	90,000	1,40,000	1,50,000	1,70,000	2,60,000	2,90,000
Current Liabilities	40,000	70,000	70,000	80,000	1,00,000	90,000

From the above figures

Calculate trend ratios for each item taking 2006 as the base year.
Establish relationships (i.e., ratio) between

Current Assets and Current Liabilities, and
Capital and Fixed Assets and convert these two ratios into trend percentages for all the six years

16) “There are no externally imposed generally accepted accounting principles for management accounting”. In light of the above statement discuss the nature of Management Accounting.

SECTION – C

Answer any THREE Each carries 15 marks. (3×15=45)

Following are the Balance Sheets of M.S. Sales Corporation as on 31^st March 2012 and 2013:

Liabilities	2012 Rs.	2013 Rs.	Assets	2012 Rs.	2013 Rs.
Equity share Capital	3,10,000	3,60,000	Goodwill	10,000	15,000
General Reserve	50,000	55,000	Buildings	3,00,000	2,90,000
Profit & Loss A/c	30,500	35,600	Machinery	1,50,000	1,69,000
Bills Payable	70,000	–	Stock	1,00,000	74,000
Creditors	1,50,000	1,35,200	Debtors	80,000	64,200
Provision for Tax	30,000	35,000	Cash & Bank	500	8,600
	6,40,500	6,20,800		6,40,500	6,20,800

The following transactions took place during the year 2013

Dividend of Rs.25,000 was paid during the year.
Assets of another company were purchased for Rs.50,000 payable in shares-assets purchased were stock Rs.20,000, machines Rs.25,000.
Machine was further purchased for cash Rs.6,000.
Taxes paid during the year Rs.28,000.

You are required to prepare a statement of Sources and Application of funds.

18) Following are the Balance Sheets of Deon and Co., as on 31.12.2011 &

31.12. 2012

Liabilities	2011	2012	Assets	2011	2012
Equity Share capital	2,00,000	3,00,000	Land	80,000	1,20,000
12% Deb.	1,00,000	2,00,000	Plant	3,00,000	6,25,000
10% pref. Capital	2,00,000	2,50,000	Investment	1,00,000	2,00,000
Reserve & Surplus	1,00,000	1,20,000	Stock	1,50,000	2,00,000
Sundry Crs.	1,50,000	4,10,000	S. Debtors	1,00,000	1,20,000
Bank O.D.	–	50,000	Bank Bal.	70,000	1,35,000
Dividend O/S	50,000	70,000
	8,00,000	14,00,000		8,00,000	14,00,000

Compare the financial position of the two companies with the help of a Comparative Balance Sheet.
Analyse the changes in the working capital position of the firm.

Has the firm used long term or short term funds to finance its fixed assets?

Comment on the overall profitability of the firm after a detailed analysis of its short and long term financial position.

19) From the following information, prepare the Balance Sheet of R.K. Motors Ltd.

Current ratio 2

Working capital Rs.4,00,000

Capital block to current assets 3 : 2

Fixed assets to turnover 1 : 3

Sales cash/credit 1 : 2

Stock velocity 2 months

Creditors velocity 2 months

Debtors velocity 3 months

Share capital Rs.6,00,000

Debenture / share capital 1 : 2

Net profit 10% of sales

Gross profit 25% of sales

Reserves 2.5% of sales.

20) i) Inspite of increasing profits of Infotel & Co., for the last three years, the company is having shortage of cash due to which dividends cannot be paid, Draft a report to management diagnosing the situation and suggesting the appropriate action to improve the situation. (10 marks)

ii) Briefly explain the different classification of management reports.

(5 marks)

i) From the following particulars calculate cash from operating activities for the year ending 31^st March 2012 using the direct method. (10 marks)

Income Statement
Income
Sales		20,000
Stock Adjustment:
Closing Stock	8,000
Less: Opening Stock	6,000	2,000
Income from Investments		2,400
		24,400
Expenditure
Raw material Consumed:
Opening Stock	4,000
Add: Purchases	10,000
	14,000
Less: Closing Stock	3,000	11,000
Wages a Salaries		5,000
Other Expenses		4,000
Depreciation		1,000
		21,000
Profit Before Interest and Tax		3,400
Interest		1,600
Profit Before Tax		1,800
Provision for Tax		200
Profit After Tax		1,600

Balance Sheet

Liabilities	31.3.2012	31.3.2011	Assets	31.3.2012	31.3.2011
Share Capital	8,000	6,000	Fixed Assets(Gross)	16,000	12,000
General Reserve	2,000	1,500	Less: Acc Dep.	(3,000)	(2,000)
				13,000	10,000
Profit Loss Account	100	200	Investments (long-term)	2,400	1,600
Loans	12,000	8,000	Investments (Risk-free, Liquid)	600	400
Sundry Creditors	8,700	9,600	Inventories	11,000	10,000
Provision for Tax	200	300	Trade Debtors	4,000	3,000
Proposed Dividend	1,200	900	Cash & Bank Balances	1,000	1,200
Other current liabilities	200	300
	32,200	26,500		32,200	26,500

ii) Following is the Profit and Loss Account to Electro Matrix Ltd. for the year ended 31^st December 2012:

Particulars	Rs.	Particulars	Rs.
To Opening Stock	1,00,000	By Sales	5,60,000
’’ Purchases	3,50,000	’’ Closing Stock	1,00,000
’’ Wages	9,000
To Gross Profit c/d	201000
	6,60,000		6,60,000
To Administrative expenses	20,000	By Gross Profit b/d	201000
’’ Selling & Distribution Expenses	89,000	’’ Interest on Investments (Outside business)	10,000
’’ Non-operating expenses	30,000	’’ Profit on Sale of Investments	8,000
To net profit	80,000
	2,19,000		2,19,000

You are required to calculate:

Gross Profit Ratio
Net Profit Ratio
Operating Ratio
Operating Profit Ratio
Administrative Expenses Ratio. (5 marks)

Section – D

Compulsory question – Case study (15 marks)

The following are the summarized Balance sheet of a company as on

December 31, 2012 and 2013

Liabilities	2012 Rs.	2013 Rs.	Assets	2012 Rs.	2013 Rs.
Share Capital	2,00,000	2,50,000	Land & Buildings	2,00,000	1,90,000
General Reserve	50,000	60,000	Machinery	1,50,000	1,69,000
Profit & Loss A/c	30,500	30,600	Stock	1,00,000	74,000
Bank Loan (long-term)	70,000	–	Sundry Debtors	80,000	64,200
Sundry Creditors	1,50,000	1,35,200	Cash	500	.600
Provision for Taxation	30,000	35,000	Bank	–	8,000
			Good will	–	5,000
	5,30,500	5,10,800		5,30,500	5,10,800

P.T.O……

Additional information: During the year ended 31^st December 2013.

1) Dividend of Rs.23,000 was paid.

2) Assets of another company were purchased for consideration of Rs.50,000

payable in shares. The following assets were purchased:

Stock Rs.20,000; Machinery Rs.25,000

3) Machinery was further purchased for Rs.8,000

4) Depreciation written off machinery Rs.12,000

5) Income-tax provided during the year Rs.33,000

6) Loss on sale of machinery Rs.200 was written off to general reserve.

Questions:

You are required to analyse the above information and prepare the Cash Flow Statement.
What was the amount of tax that the company had paid.
Calculate the amount of cash the company had earned or lost solely from operations.
How much money did the company transfer to reserves during the year.
State the activities of the company that have resulted in the biggest inflow and outflow of cash.

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St. Joseph’s College of Commerce B.B.M. 2013 VI Sem Income Tax II Question Paper PDF Download

April 6, 2018 by prasant kumar

St. Joseph’s college of Commerce (Autonomous)

End semester examination – April 2013

B.B.M – VI SEMESTER

Income Tax – II

Duration: 3Hrs Max.Marks:100

Section – A

Answer ALL the following questions. (10X2=20)

1) How to treat bad debts recovered but disallowed earlier?

2) What is depreciation U/S 32 (1) of the act?

3) Define the term transfers.

4) Mention any four assets which do not come under the term capital asset.

5) What is composite rent?

6) Under what circumstances the speculation losses can be allowed to be set

off.

7) What is the deduction allowable U/S 80GG.

8) Expand abbreviations-CCIT&CBDT

9) Explain the provisions of section 54EC of Income Tax under the head

capital gains.

10) What do you mean by less Tax NonGovernment securities?

Section – B

II) Answer any FOUR (4X5=20)

11) Mr. Vijayan had the following incomes during the year 2011-12:

Rs.

Interest on Bank deposits 4, 000

Income from units of a Mutual Fund 5, 000

Interest on Govt. Security 8, 000

Winning from lottery 10, 000

Winning from horse race 5, 000

He claimed the following deductions:

Collection charges of interest on Govt. Security by Bank 100

Expenses for buying lottery tickets 1, 000

Compute income from other sources of Mr. Vijayan for Assessment year

2012-13.

12) Mr. Prabhath Bhat transfers a plot of land for a consideration of Rs.

40,00,000 on 10.10.2011. This plot of land was purchased by him in 1980-81

for Rs. 3, 50,000 (FMV as on 1.4.81 was Rs. 4, 00,000). Brokerage paid for

sale of plot of land was Rs.10, 000. He purchased a residential house for Rs.

5, 00,000 on 1.11.2011 and deposited Rs. 50, 000 in capital gain account

scheme. Compute Mr. Prabhath Bhat’s taxable capital gain for the AY

2012-13. (CII for 1981-82=100 2011-12=785)

13) State, giving brief reasons, whether the following items are allowable

while computing profits and gains of business or profession

(i) Donation to a political party.

(ii) Fees paid to the Lawyer for drafting a new Partnership Deed.

(iii) Sums paid to a labour leader to call off the strike.

(iv) Salary paid to son, who is working in the office. The salary is reasonable.

(v) Rent paid to daughter for office block which was gifted to her at the time

of her marriage.

14) Explain the rules regarding inter head set of losses.

15) Write short notes on the following:

a) Recovery of tax.
b) Refund of tax.

1 6) The gross total income of Mrs. Usha amounted to Rs. 6, 00,000 in the

previous year ending on 31^st March, 2012. She has made the following

donations:

Rs.

(i) To prime minister’s Gujarat Earthquake Relief Fund (100%) 40,000

(ii) To Africa (public contribution India) fund (100%) 10,000

(iii) To approved educational institutions(50%) 15,000

(iv) To approved temples 35,000

(v) Clothes distributed to poor 5,000

(vi) To Municipal Corporation for promotion of family planning 20,000

Compute the amount of deduction admissible u/s 80G for the

assessment year 2012-13.

Section – C

III) Answer any three questions. (3×15=45)

From the below given profit and loss account and additional information of Mr. David compute his taxable business income for the assessment year 2012-2013.

Particulars	Rs.	Particulars	Rs.
Opening stock	40,000	Sales	5,00,000
Purchase	2,20,000	Closing stock	50,000
Wages	15,000
Freight	10,000
Gross profit	2,65,000
	5,50,000		5,50,000
Establishment expenses	15,000	Gross profit	2,65,000
Salaries	25,000	Dividend on shares(Gross)	6,000
Rent and taxes	12,000	Rent from house property	15,000
Income tax	10,000	Refund of income tax	2,000
Household expenses	14,000	Interest on Govt. Securities	1,000
Reserve for bad debts	5,000	Bad debts recovered	5,000
Advertisement	15,000	Profits on sale of machinery	3,000
Donation	6,000	Miscellaneous income	9,000
Sale tax	20,000
Provision for Income tax	8,000
Carriage outwards	11,000
Drawings	4,000
General expenses	16,000
Interest on capital	9,000
Bad debts	7,000
Repairs	7,500
Taxes and insurance	2,500
Car expenses	11,000
Audit fees	12,500
Depreciation	20,500
Net profit	75,000
Total	3,06,000	Total	3,06,000

Additional information:

a) Salaries include payment to a relative employee, which is considered to be

unreasonable up to Rs. 6, 000.

b) Purchases include two payments of Rs.30, 000 and Rs. 10, 000 paid in cash to a supplier
c) Opening stock is valued at 10% above the cost
d) Allowable depreciation is Rs. 22, 500
e) 60% of expenses are for business purposes.

18) Dr. Surendra is a renowned medical practitioner who maintains books of account on cash basis, furnishes his Receipts and Payments Account for the financial year 2011-12:

Income	Rs.	Expenditure	Rs.
Balance b/d	14,000	Rent of Clinic:2010-11	600
Consultation Fees 2010-11	3,000	2011-12	4,800
2011-12	15,000	2012-13	600
2012-13	2,000	Electricity and Water bills	2,000
Visiting Fees	30,000	Professional Books (Annual pub.)	4,000
Loan from Bank for professional purposes	25,000	Collection Charges on Dividend Income	100
Sale of medicines	60,000	Household expenses	7,800
Gift and Presents	5,000	Motor-car purchased	30,000
Remuneration from Articles Published in Professional Journal	6,000	Surgical Equipments	4,800
Dividend	10,000	Income tax	10,000
Interest on Post office Savings Bank A/c in joint names	7,000	Salary of staff	15,000
		Life Ins. Premium	15,000
		Gift to wife	5,000
		Interest on loan	2,000
		Car expenses	15,000
		Purchases of medicines	40,000
		Balance c/d	20,300
Total	1,77,000	Total	1,77,000

Compute his Taxable Professional Income for the assessment year 2012-13, after taking into account the following additional information:

(i) 1/3^rd of the use of car relates to his personal use.

(ii) Depreciation on Motor-car allowable is 15%, on books it is @ 100% and on surgical equipments it is 15%.

(iii) Gifts and presents include Rs. 3,000 from patients in appreciation of his medical service and Rs. 2, 000 received as Birthday Gifts from relatives.

(iv) Closing stock of medicines amounted to Rs.5, 500.

19) From the following particulars, compute taxable capital gains of Mr. Shankar (resident) for A.Y. 2012-13.

Asset	Date of purchase	Cost (Rs.)	FMV on 1-4-81	Date of sale	Sale price	Selling expenses
House property	1-12-87	75,000	–	1-10-11	15,00,000	20,000
Personal Jewellery	1-12-78	12,000	20,000	1-11-11	3,00,000	4,500
Listed debentures	1-12-06	50,000	–	1-02-12	2,00,000	1,000
Personal car	1-12-02	30,000	–	1-01-12	12,000	–
Urban agriculture Land	1-12-75	48,000	45,000	1-03-12	4,50,000	30,000

He purchased a new agriculture land on 31.03.2012 for Rs. 1, 00,000.

( CIIs: 1981-82 =100; 1987-88=150; 2002-03=447; 2006-07=518;2011-12=785)

20) Compute income from other sources of Dr.Gokak who held the following investments in P.Y. 2011-12.

a) 1, 10,000, 10% central Government Securities.
b) 4, 00,000, 10% commercial securities.
c) 8, 000 (gross) received as interest on public Ltd. Co., securities. (listed)
d) 7, 200 received as interest on Karnataka Govt., securities.
e) 3, 600 received as interest on XYZ Ltd., (listed).
f) 3, 00,000, 13.5% securities of X Co Ltd. (Unlisted).
g) 3, 50,000, 11% securities on a paper mill Co., (listed).
h) Interest on post office savings Bank A/c- Rs. 6, 500.
i) Dividend received from Carona Ltd., (Gross) Rs. 32, 000

For purchasing securities of X Co., Ltd., he took a loan of Rs. 2, 50,000 at 12% p.a. This loan was taken from his friend in. UK. The interest has been paid in UK but, no TDS is made. Bank charged Rs. 2, 000 as collection charges.

During the year he also got a prize in Karnataka State lottery. The net amount received by him was Rs. 2, 80,000. Interest is payment on 1^st July and 1^st January, every year.

21) Sh. S.K. Basu is in service in Calcutta (Population above 25 lakhs) drawing a monthly salary of Rs. 15, 000 p.m. He is also provided with a free unfurnished flat, for which employer pays a rent of Rs. 2, 500 p.m. He contributes 10 percent of his salary to recognised provident fund. The interest @8% on his provident fund account for the year ended 31^st March 2012 amounted to Rs. 2, 500. He is also the owner of a house which is let out a monthly rent of Rs. 2, 500. His expenses for above here:

Rs.

(a) Municipal taxes 3, 000

(b) Interest on loan for construction of the house 6,600

He has also interest on Govt. securities amounting to Rs. 14,000 ( Gross).

He has also received a share from a firm assessed as firm of Rs. 5, 000 and his share of firm’s tax amounts to Rs. 600. He has paid life insurance premium for a policy on his own life Rs. 700. He paid to P.M. National Relief Fund Rs. 200.

Compute the Total income of Shri S.K.Basu.

Section – D

IV) Answer the following compulsory question. (1X15=15)

22) Miss Ashitha submits the following details for the PY 2011-2012

Rent received from let out house Rs. 6, 000 per month.

Municipal taxes Rs. 500 p.a.

She is also employed in a private organisation

Where she gets a salary of a Rs. 14,000 per month

Taxable short term capital gain Rs. 15, 000

Taxable long term capital gain Rs. 35,000

She earned a lottery income of Rs. 10,000.

She donated Rs. 5,000 for National Relief Fund.

She paid a LIC premium on her life Rs. 8, 000

She contributed Rs. 10, 000 towards mediclaim insurance policy.

Compute her Total Taxable Income & Tax liability for the A.Y:2012-13

St. Joseph’s College of Commerce B.B.M. 2013 VI Sem Business Law Question Paper PDF Download

April 6, 2018 by prasant kumar

St.Joseph’s college of commerce (autonomous)

End semester examination – APRIL 2013

BBM – VI SEMESTER

BUSINESS LAW

Duration : 3 hours Marks: 100

SECTION – A

Answer ALL the following questions. (10 x 2 = 20)

Explain the Doctrine of Ultra Vires.’
Who is a ‘defendant’?
Distinguish between surrender and revocation of patents.
State two objectives of FEMA.
Define 1) Consumer 2) Deficiency as per the Consumer Protection Act of 1986.
State two differences between conditions and warranties.
What are the rights of a patentee?
A plumber accidentally installs a sprinkler system in the lawn of the wrong house. The owner of the house had learned the previous day that his neighbor was getting new sprinklers. That morning, he sees the plumber installing them in his own lawn. Pleased at the mistake, he says nothing, and then refuses to pay when the plumber hands him the bill. Will the man be held liable for payment?

What is meant by General Lien?
Explain the doctrine of ‘stare decisis”

SECTION –B

Answer any four from the following: (4 X 5= 20)

“Impossibility of performance is a rule, not an excuse for non-performance of a contract.” Discuss.
What are the exceptions to the rule of ‘no consideration, no contract’?
What are some of the rights of an unpaid seller?
Distinguish between FERA and FEMA.
Discuss the doctrine of ‘caveat emptor’. State its exceptions.

SECTION –C

Answer any three of the following: (3X15=45)

Enumerate the sources of Indian Business Law.
What are the remedies available to an aggrieved party on the breach of a contract?

Discuss the procedure to be adopted by the District Forum on receipt of a complaint.
Define ‘Memorandum of Association’. What does it contain?
Define ‘Invention’. What are not considered to be ‘inventions’ as per the Patents Act, 1970?

SECTION –D

IV) Case Study -Compulsory question. (5×3=15)

A offered to sell a stereo to B for Rs 15,000 but B was willing to pay Rs 10,000. A refused. B then offered Rs 15,000 which A refused. Was it a valid contract?

B, the purchaser of a car from A is compelled, after several months of purchase, to hand over the car to C, the real owner. What will be your advice to B?

Advise Asiatic Government Security Life Insurance Co Ltd, on whether it can seek an injunction against “The New Asiatic Insurance Co. Ltd” which was subsequently formed, restraining it from having in its name the word “Asiatic” on the ground that it has caused confusion and can deceive the public.

St. Joseph’s College of Commerce B.B.M. 2013 IV Sem Project Management Question Paper PDF Download

April 6, 2018 by prasant kumar

JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL2013

BBM– IV SEMESTER

Project Management

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the following questions. (10×2 = 20)

Enumerate the characteristics of a project.
What are crash projects?
What are the reasons for growth of Project Management?
What are the differences between Feasibility study and Business plan?
What are the various means of finance available to fund a project?
List the logical sequence of events as per project scheduling.
Define sick industrial company. What are the leading indicators of sickness?
What is the purpose of PMIS?
Mention the differences between Project Management and Functional Management.
What do you understand by cash flow estimate statement?

SECTION- B

Answer any FOUR (4 x 5 = 20)

Explain the Daming Cycle for Project Management.
What do you mean by Social Cost Benefit Analysis? How does it differ from financial analysis of a project?
Explain the role of Government as the regulator in industrial development.
Identifying a new worthwhile project is a complex problem. It involves careful study from many different angles. Hence explain the sources from which new project ideas may emerge.
Explain the concept of Project Risk Analysis.
Define contract. Explain the types of contract.

SECTION – C

Answer any THREE Each carries 15 marks. (3 x 15 = 45)

Explain the benefits of Project Management. How can one achieve effective Project Management?
What are the important phases of a project life cycle? Explain each phase with key issues involved in it.
Bring out the importance of pre- feasibility, feasibility studies in ensuring success in the operation phase of the project.

What is Matrix organisation? What are the advantages of this structure in terms of Project Management? Enumerate the disadvantages. Also, under which situation is Matrix structure suitable?
Write in detail about the data required for the calculation of discounted cash flow techniques.

SECTION – D

Case study – Compulsory Question. (1 x 15 = 15)

Zoozo, a mechanical engineering graduate from IIT, Chennai was a promising entrepreneur. His father owned a small scale industrial unit for the manufacture of mild-steel pressed components used in the manufacture of electrical panel boards. His father’s engineering unit M/S Zoozo Engineers was mainly catering to the requirements of local fabricators and electrical contractors. Mr. Zoozo, after his studies, took over the management of the unit from his father. After a few years of gaining firsthand experience of the trade, he decided to go in for large scale production, as he found the prospects for the industry good.

He formed a Private limited company by name M/S Senior Zoozo Engineers (P) Ltd, with his family members and close friends as the promoters. The entire investment for the proposed project was decided to be financed by share capital contribution of the directors. Mr. Zoozo’s dream project took off smoothly. He did not face any financial constraints as all the promoters were financially sound. The company gained market recognition due to high quality of its products and within a short span of time the company became an original equipment supplier to major machinery manufacturers.

The production capacity of the plant was ten tonnes per month. The order position was also about ten tonnes per month. Hence the plant capacity was to the requirement. Due to sudden spurt in the demand, the order position improved subsequently and Mr. Zoozo found an immediate need to increase the production capacity of the plant to twenty tonnes per month.

Out of the machinery available, the power press which is a major machine could produce thirty tonnes of pressed components per month. The other engineering fabrication machines like drilling machines, welding machines, punching machines and nibbling machines have been just adequate to handle orders to the tune of about fifteen tonnes per month. The powder coating machine which is used for giving surface finish to the pressed components could handle about ten tonnes per month. Two of the major customers have given orders to the tune of around twenty tonnes per month and are also willing to enter into contract for the regular supply of twenty tonnes of products per month for the next twelve months. There are also indications from other customers that their requirement would be about ten tonnes per month and they affirm that the order position is likely to be on the increasing trend.

In order to cope with the orders of twenty tonnes per month finalised with two customers, Mr.Zoozo went for an expansion of his production facility. He doubled the production capacity of general fabrication facility by doubling the capacity of drilling, welding, punching and nibbling machines. As the investment on powder coating machine was slightly on the higher side, he added only one more powder coating machine, thus increasing its handling capacity to about twenty tonnes per month. By the time he completed the expansion works, orders have started pouring in and orders to the extent of thirty tonnes per month have been booked. Mr. Zoozo was happy that his power press could handle thirty tonnes quite easily. But, the machines downstream have inadequate capacity to handle thirty tonnes per month. The production engineer suggested to Mr. Zoozo to accept all the orders and to divert part of the fabrication and finishing works to outside engineering units if the entire work cannot be carried out in-house. However, Mr. Zoozo was very quality conscious; he was not prepared to accept orders beyond his production capacity.

His preference is to have all the required production facilities in house and he is even prepared to go for one more expansion plan to handle the increased orders.

Questions:

Was Mr. Zoozo right in his approach that all the required production facilities should be available in house? (7 marks)

Was the Production engineer’s view a right one and will it help the company to tie-over the situation? (8 marks)

St. Joseph’s College of Commerce B.B.M. 2013 IV Sem Financial Markets And Services Question Paper PDF Download

April 6, 2018 by prasant kumar

JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

SUPPLEMENTARY Examinations – APRIL 2013

bbm – iv semester

financial markets and services

Duration: 3 Hrs Max. Marks: 100

Section – A

Answer all the questions. Each carries 2 marks. (10×2=20)

What is meant by Forfeiting?
Mention any 2 reasons for the formation of OTCEI.
Who is an angel investor?

Choose the best answer:

Under forfeiting the client is able to get credit facility to the extent of:
100% of the value of the export bill
80% of the value of the export bill
75% of the value of the export bill
90% of the value of the export bill
Under factoring, the factor acts in the capacity of
An agent of his client
A trustee
A holder for value
An administrator

Expand : (a) ONICRA (b) CRISIL
Write any 2 tax implications to the Lessor in a leasing agreement.
What is a currency swap?
Comment in 4 lines as to how savings is the key element for rendering financial service.
Explain any two fees based financial service.
What is Private equity?

Section – B

Answer any FOUR questions out of 6. Each carries 5 marks. (4×5=20)

How has globalization brought about changes in the financial services industry? Elaborate.
What are the factors that are analyzed by the venture capitalists while deciding on investments?
How is hire purchase financing different from lease financing?
What are the main limitations of credit rating in a country like India?
Explain Option as a derivative instrument and what are the different types of options?
Explain the modus-operandi of factoring service.

Section – C

Answer any THREE questions out of 5. Each carries 15 marks. (3×15=45)

What do you understand by a stock market index? Why are there so many indices? What purposes do they serve?

Sriram Polymer Company Ltd. Wants to acquire machinery costing INR 5 million, which has an economic value of 8 years with zero, salvage value. The company is considering two alternatives- taking the machinery on lease or purchasing the asset outright by raising a loan. If the company acquires the asset on lease, it has to pay INR 0.7 million every year as lease rental. The company can borrow INR 5 million at an interest rate of 13% per annum. The loan has to be repaid in 8 equal installments. The company follows straight-line method of depreciation. The corporate tax rate is 35%. Which alternative is better for the company?

What are the exit routes available to a venture capitalist? What are the pros and cons of each one?

What is factoring and discuss in detail the different forms of Factoring?

What are the applications of derivative instruments in risk management? Explain with illustrations.

Section – D

Compulsory Question – Case study. ( 15 marks)

“Standard & Poor’s said on Thursday India’s budget for the 2013/14 fiscal year would have no impact on the country’s sovereign credit ratings, warning there was potential for the government to exceed its budgeted spending. S&P also said there had been “little progress” in structural reforms to reduce the “vulnerability” in the government’s fiscal position. S&P last year cut its outlook on India’s “BBB-minus” sovereign ratings to “negative,” threatening to push the country into sub-investment category.” (Reuters MUMBAI | Thu Feb 28, 2013 5:36pm IST)

How should India react to the statement made by S&P
Can S&P be the ultimate decider of fate for all the Indian companies?
Does S&P’s rating alter the way India is perceived by foreigners as an investment hub?