M.Com

St. Joseph’s College of Commerce M.Com. 2014 III Sem Enterprise Resource Management Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examinations – March / April 2014

M.Com – IV Semester

 ENTERPRISE RESOURCE MANAGEMENT

Time: 3 Hrs                                                                                                         Max. Marks: 100

 

Section – A

  1. Answer any SEVEN Each carries 5 marks.                            (7 x 5 = 35)
  2. What is ERP? Elucidate the various Benefits of ERP
  3. Explain the concept of Human Capital management in people soft and SAP?
  4. Explain the phases essential for the successful performance of the BPR
  5. What are the steps involved in the ERP implementation life cycle?
  6. Explain the supply chain management?
  7. Write Short Notes on: (a) MRP II (b) Order Management
  8. Explain how EDI is integrated with Enterprise Resources Planning.
  9. Describe the present scenarios of Indian ERP market? Discuss with some examples on Indian ERP packages?
  10. Discuss the ERP selection criteria? Give some Examples.
  11. What are the Future Directions in an ERP?

Section – B

 

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

 

  1. Explain with examples the conceptual model of ERP and its evolution.
  2. Discuss in detail the various evaluating criteria to assess suitability of an ERP package.
  3. What is business Model? Create a model admission process system for a University?

 

  1. What are the factors that are very insecure for an organization faces while migrating to an integrated ERP system?
  2. Write Short Notes on:

(a) OLAP

(b) DSS

(c) Business   Process Re-engineering

Section – C

III) Case study – Compulsory question.                                                         (1 x 20 = 20)

16.

A new generation bank operates in three southern states of India. Its primary functions include operating customers savings, Current and fixed accounts and offering loans. It advances loans to individuals and organizations in the form of secured long and medium loans to business organizations, loans to individuals for buying durables and overdraft facilities to selected big business organizations. In addition, it has invested certain funds in Government securities. The operations of the bank are conducted through three regional offices and 100 branches across the states. The bank presently has manual information system. Now it wants to convert these system into well- designed and integrated computer based ERP Banking system. For this purpose, the bank authorities want to identify its subsystems to design the ERP Package.

 

Questions:

  • You are asked to design a suitable ERP Model and Subsystem for the requirement of bank.
  • You can make your own assumption about the functions of banking System.

 

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M.Com- End Semester Examinations – March / April’ 2014

Semester – IV

Subject: Enterprise Resource Management

 

Synopsis of Answer Keys

Section – A                                                                                                        7 x 5 = 35

  1. What is ERP? Elucidate the various Benefits of ERP

ERP is a computerized environment with a holistic view of the enterprise, aimed at seamless flow of information across the departmental barriers where by optimal planning and management of the resources is possible in the most efficient manner.

 

Enterprise Resource Planning (ERP) covers the techniques and concepts employed for the integrated management of businesses as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.

 

ERP packages are integrated (covering all business functions) software packages that support the above ERP concepts.

 

Benefits of ERP

  • Business process automation.
  • Timely access to management information.
  • Enhanced Technology
  • Efficiency
  • Integrated Information
  • Reporting
  • User friendly
  • Access to Data
  • Customer Service
  • Functionality
  • Communication
  • Security
  1. Explain the concept of Human Capital management in people soft and SAP?
  • Addresses a broad and complex set of ERP needs
  • Securely runs typical batch and transactional workloads with high availability
  • Faster response times and accelerated report and query generation increases productivity
  • Highly scalable systems
  • Integrated virtualization provides superior consolidation capabilities

 

  1. Explain the phases essential for the successful performance of the BPR

According to Hammer and Champy (1993) Business process reengineering (BPR) is defined as”… The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.”

Steps Involved in Business Process Reengineering

Davenport and Short (1990) prescribe a five-step approach to Business Process Reengineering. These are:

  • Develop the business vision and process objectives
  • Identify the processes to be redesigned
  • Understand and measure the existing process
  • Identity information technology (IT) levels
  • Design and Build a prototype of New Process

 

  1. What are the steps involved in the ERP implementation life cycle?
  • Implementation
  • Stabilization
  • Continuous Improvement
  • Transformation
  1. Explain the concept of supply chain management (SCM)?

Supply Chain Management is a set of synchronized decisions and activities utilized to efficiently integrate suppliers manufacturers, warehouses, transporters, retailers, and customers so that the right product or service is distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying customer service level requirements. The objective of Supply Chain Management (SCM) is to achieve sustainable competitive advantage.

Advantages of SCM

    • Delivery Improvement
    • Inventory Reductions
    • Improved fulfillment cycle time
    • Increased Forecast Accuracy
    • Increased Overall Productivity
    • Lower supply Chain Costs
    • Capacity Realization.

 

 

 

  1. Write Shore Notes on

(a) MRP II: Manufacturing resource planning which looks after production related things. The concept of MRP II was to look after shop floor and distribution management activities.

(b) Order Management: Capturing and entering the order (either in a call center or via electronic methods) performing a check of available inventory to produce the order. Order Management includes the capture, tracking and billing of customers’ orders for products.

  1. Explain how EDI is integrated with Enterprise Resources Planning.
  • Transactions are grouped together into one or more files and transmitted all the same time. Ability to become more efficient and productive.

Components:

  • Data Transport
  • Data Translation
  • Data Transformation
  • Data Integration and Business Applications
  1. Describe the present scenarios of Indian ERP market? Discuss with a few examples on Indian ERP success?

Weakness

  • Not available on many platforms
  • Does not support n tier architecture
  • Non robust software engineering
  • Lacks access to ‘‘world class practices”
  • Implementation Methodology not well developed
  • Blessing of Big Six consultants, Rating Agencies
  • Various Indian companies such as Radico Khaitan, Apollo Tyres, Tata Ryerson, HCL technology etc. have been benefited after implementing ERP system.
  1. Give some Examples of ERP selection criteria?
  • Is the software ready for production?
  • Is software includes all the modules required for your business?
  • Is the software supports smooth migration of your data from your existing system?
  • What is licensing policy for the software?
  • Is the software supports smooth integration with other software systems required for running your business?
  • How is community activity, how is community support, how innovative is the system?
  • You’re ready! Let’s select Business ERP software for your business.

 

  1. What are the Future Directions in an ERP?
  • New Markets, New Channels, Faster
  • Implementations Methodologies, Business Models and BAPIs,
  • Convergence on Windows NT, Application Platforms, New
  • Business Segments, More Features, Web Enabling, Market
  • Snapshot

 

Section – B                                                                                               3 x 15   = 45

  1. Explain with examples the conceptual model of ERP and its evolution.

ERP and its evolution

MRP-I: Material requirement planning, which was nothing but a historical background of ERP, the motive, was only to tap inventory i.e. raw materials planning.

  • MRP-II: Manufacturing resource planning which looks after production related things. The concept of MRP II was to look after shop floor and distribution management activities.
  • ERP: Enterprise resource planning whose role is very wider and not confined to one department but have a broader purview.
  • ERP-II or MRP-III: Money resource planning or ERP-II advent can be seen few years after ERP system origination
  1. Discuss in detail the various evaluating criteria to assess suitability of an ERP package implementation
  • Flexibility
  • Comprehensive
  • Integrated
  • Beyond the company
  • Best Business Practices
  • New Technologies

 Other Factors

  • Global Presence of package
  • Local Presence
  • Market Targeted by the package
  • Price of the package
  • Obsolescence of package
  • Ease of implementation of package
  • Cost of implementation
  • Post implementation support availability
  1. What is business Model & Create a model admission process system for a University?

Admission Model Contents

Admission Committee Setup

  1. What are the factors that are very unsafe for an organization faces while migrating to an integrated ERPsystem?
  2. Single point of failure
  3. Structural Changes
  4. Job Role Changes
  5. Online, real -time
  6. Change Management
  7. Distributed Computing experience
  8. Broad system access
  9. Dependency on external assistance
  10. Program interfaces and data conversions
  11. Data content quality
  12. Privacy and confidentiality
  13. Write Short Notes on

(a) OLAP– On-Line Analytical Processing (OLAP)

OLAP can be defined in five words-Fast Analysis of Shared Multidimensional Information.

OLAP describes a class of technologies that are designed for live ad-hoc data access and analysis. While transaction processing (OLTP) generally relies solely on relational databases, OLAP has become synonymous with multidimensional views of business data. These multidimensional views are supported by multidimensional database technology and provide the technical basis for calculations and analysis required by Business Intelligence applications.

OLAP is being used for applications such as product profitability and pricing analysis; activity based costing; manpower planning; and quality analysis, or for that matter any management system that requires a flexible, top down view of an organization.

(b) DSS – Decision support systems

Decision support systems were created to assist managers in this task. Decision support systems are interactive information systems that rely on an integrated set of user-friendly software and hardware tools, to produce and present information

The main characteristics of a DSS are:

  • DSS is designed to address semi-structured and unstructured problems.
  • DSS mainly supports decision-making at the top management level.
  • DSS is interactive, user-friendly can be used by the decision-maker with little or no assistance from a computer professional.
  • DSS makes general-purpose models, simulation capabilities and other analytical tools available to the decision-maker.

(c) Business   Process Re-engineering

“BPR is the rethinking of business processes to improve the speed, quality, and output of materials or services.”

Elements of BPR

  • Rethinking the theory of the business.
  • Challenging old assumptions and discharging old rules that are no longer applicable.
  • Breaking away from conventional wisdom and the constraints of organizational boundaries.
  • Using information technology not to automatic outdated process but to redesign new ones.
  • Externally focus on customers and the generation of greater value for customers.
  • Internally focus on harnessing more of the potentials of people and applying it to those activities.
  • Encourages training and development by building creative work environment.
  • Encourages training and development by building creative work environment

 

Section – C                                                                                                     1 x 20 = 20

  1. Compulsory Case study
  • (a) Any innovative model for banking industry with example
  • Check with relevant and appropriate information on the given issue

 

 

St. Joseph’s College of Commerce M.Com. 2014 III Sem Business Policy And Strategic Management Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examination- MARCH / April 2014

M.COM – IV Semester

 BUSINESS POLICY AND STRATEGIC MANAGEMENT

Duration:  3 Hours                                                                                      Max. Marks: 100

Section – A

  1. Answer any SEVEN questions out of TEN. Each carries 5 marks.          (7 x 5  = 35)
  2. Explain the relationship between a company’s strategy and its business model. What makes a strategy a winner?
  3. Distinguish between a managed corporation and governed corporation.
  4. What is a mission statement? What are the distinct features or characteristics of a mission statement? Write a mission statement of a hypothetical company?
  5. Differentiate between competence, core competence and distinctive competence with suitable examples.
  6. Explain the strategy implications of BCG Portfolio Model.
  7. What is the general strategy of market challengers? Differentiate and explain five attack or offensive strategies?
  8. Discuss the strategy orientation in SBU. What are the advantages and disadvantages?
  9. Discuss the functional policies, and plans in strategy implementation?
  10. What are the four pricing strategies implemented by the companies?
  11. Explain the balanced score card approach.

 

Section – B

 

  1. Answer Three questions out of five. Each carries 15 marks.                 (3 x 15 = 45)

 

  1. What are the different approaches to strategic decision making? Discuss the process of strategic decision making in companies.
  2. Enumerate the major environmental factors which influence a Company’s business? Which of these according to you, are more important and why?
  3. Discuss the merits of generic strategic options available to companies evolved by Michael Porter. What is the best-cost provider strategy? Explain with suitable examples.
  4. Define the features of Strategic alliance. What are the forms and objectives of strategic alliance?
  5. Analyze various quantitative criteria for performance evaluation of companies. Distinguish between financial criteria and non financial criteria.

 

 

Section – C

III).        Compulsory question –  Case study                                                     (1 x 20 = 20)

 

16.

Zhang Ruimin, Chairman, Haier Corporation

Zhang Ruimin has emphasized a focus strategy in first building Haier into a well-known maker of refrigerators in China and nowa significant force in the US market and beyond. The result has been a 40% annualized growth in sales so far in this century.

It all started several years ago in China with a sledge hammer. Appointed to run a marginal state owned refrigerator factory , Ruimin quickly saw that “the real problem was that workers had no faith in the company and didn’t care. Quality didn’t even enter into any body’s mind.” So after a customer complained, Ruimin lined up 76 defective models on the factory floor. He picked up a sledge hammer and told those who were responsible to smash them. He included himself in the task.  “The message got through that there is no A, B, C, and D quality,” said Ruimin, “There is only acceptable and  unacceptable.” Fast forward to taking Haier into the United States. Instead of trying to compete in the market for large, high-end refrigerators as it does in China, Ruimin chose a market focus strategy, introducing  a multi purpose mini refrigerator designed for use in college dormitories and as a small wine cellar. Haier’s niche products rapidly gained in popularity.

 

Combined with its legendary commitment to quality control that all started with sledge hammer-wielding Zhang Ruimin emphasizing the importance of quality to his employees, Ruimin’s  Haier has leveraged its FOCUS strategy to move into different product lines and grab market share in the United States by choosing market focus, Haier delivered a clear and unique value proposition to American consumers.

 

Questions:

 

  1. Which of the generic strategy has an association with Ruimin’s strategy initiative in Haier? Justify your Answer.

 

  1. What focus helped Haier in attaining competitive advantage in the market?

 

  1. Of the different levels of strategy orientation, which level was given a proper motivation by Zhang Ruimin. What are the various levels of strategy orientation?

 

 

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End Semester Examination –M.Com. IV Semester March-2014

Scheme-Business Policy and Strategic Management

  1. Business model: the revenue-cost-profit-economics of its strategy demonstrates its viability of the business enterprise as a whole. Company’s strategy: relates broadly to its competitive initiatives and business approaches (irrespective of financial outcomes it produces) E.g., contrasting business modes of Microsoft and Red Hat Linux. What makes a strategy a winner: i. how well does the strategy fit the company, (internal) situation, ii.is the strategy helping the company to achieve a sustainable competitive advantage (external), iii. Is the strategy resulting in better company performance.
  2. Managed corporation: more like traditional model of a company. Focus is on power equations between management and control (Board –CEO relationship).shareholders role is to throw out board. Governed corporation: answer to problems of corporate governance lies in the governed corporation. The focus is not on power- not in monitoring or controlling and controlling the managers- but in improving decision making.

Major differences between the two is in terms of board’s role, characteristics and policies.

  1. Mission statement: it embodies the business philosophy of a company’s decision makers, implies the image the company wishes to project for itself, reflects the company’s self concept; indicates the company’s self-concept; indicates the company’s principal product or service areas and the customers needs the company seeks to satisfy. Features:  i. it should be a declaration of organizational purpose, attitude or outlook. ii. it should have a clear customer orientation. iii. It should be a declaration of the  social objectives or policy. Mission statement of a hypothetical company:……………

4.Competence: is he ability to perform a task or achieve some objectives.  Core competence: special or unique internal competence. A core competence is a competitively important activity that a company performs better than other internal activities. Distinctive competence: A distinctive competence is a competitively valuable activity that a company performs better than its rivals.

  1. 1. Stars- continue to increase market share at the expense of short term earnings. 2. Cash cows: Maintain share and cost dealership until further investment becomes marginal. 3. Problem Children: Assess chances of dominating segment; If good, go after share; if bad, redefine business or withdraw. 4. Dogs: plan systematic withdrawal so as to maximize cash flow.
  2. Challengers are no. 2 and position and tend to challenge leaders of their supremacy. General strategy is attack. E.g., Samsung Vs. Apple (mobile). Offensive strategies: i. Frontal attack, ii. Flank attack, iii Encirclement attack, iv Guerilla attack, v leaping frog attack.
  3. Divisions closely approximate strategic business units in all multi-business organizations. The fundamental factor in SBU is to identify independent product/market segment which require distinct strategies. The divisional structure should be much broder with more than one SBU in each division. Advantage: facilitate strategic management of too many business units.- clear strategic focus- enables measurement of performance- easy to add a new business or and divest unprofitable ones. Disadvantage: with too many SBUs effective management becomes a problem –problems of defining autonomy – conflicts of interest likely.
  4. In working out functional policies and plans, companies should take care of alignment of strategies in terms of vertical fit and horizontal fit. Vertical fit: [Between Business strategy and Functional (alignment between higher level and lower level strategies)]. Horizontal fit: is alignment or fit between strategies or activities at the same level.
  5. i. cost – based pricing, ii. Demand- based pricing, iii. Competition – based pricing, and Value – based pricing.
  6. Balanced score card approach to strategy evaluation combines both quantitative and qualitative criteria. It incorporates the expectation of different stakeholders in relating performance to strategy. Perspectives of Balanced score card approach: i. Financial, ii. internal business perspective, iii. customer perspective, iv. Learning and growth perspective.

 

Section B

  1. Approaches to strategic decision making: A. Intuitive-Emotional approach, B. Rational Analytical approach, C. Satisfying approach, D. Political –behavioral approach.  Strategic decision making Process:  i.  Problem awareness, ii. Problem diagnosis, iii. Development of alternative solutions, iv. The selection of a solution and v. Implementation of the solutions.
  2. Major external environmental factors: the external environment consists of a large number of factors which influence company’s business. They are: Political- Economic – Sociological – Government policies (Controls) – Technology – Competition – intermediaries and suppliers. Organizations should generally be concerned with relevant environment and operating environment. Operating environment , also known as competitive environment consists of factors in the immediate competitive situation like customer profile, level of competition, industry structure, technology, any specific regulation affecting company or industry so on.
  3. 1. Cost leadership: exploiting some aspect of the production process, and executing a cost significantly lower than that of competitors. 2. Focused cost leadership: company occupies a specific niche or niches serving only a part of he total market. 3. Differentiation strategy: offering superior performance (high scale advantage). 4. Focused Differentiation: strategy for small and specialist companies. 5. Best cost strategy: a central strategy striking a middle course between low cost advantage and differentiation advantage and broad market and or niche market on the other.
  4. Strategic alliance is co-operation between two or more organizations. Strategic alliance are delicate to manage. Features: common objective- shared control – pooling resource by the partners – contribute technology-process- product –designg –sharing specific individual strength.    Forms: i. Competitive, ii. Pre-competitive, iii.  Pro-competitive,  iv.  Non-competitive.     Objectives: i. Development of a new product, ii. Development of new technology, iii. Reducing manufacturing cost, iv. Entering new markets, v. Marketing and sales, Distribution.
  5. Measure results or performance in three ways: Comparing: i. current performance with past performance,  ii. performance with industry standards, iii. performance with competitors. Financial Performance:  ROI -ROE –EPS – Price-earnings – Profitability:  Profit/sales ratio – Profitability: Relative profit growth                     Non-financial Performance: Market share: absolute Market share – Market share: relative Market share – Sales Ratio: actual to target sales- Sales Ratio: relative sales growth

Section-C

  1. 1. (Differentiation strategy- seems to be the most appropriate)
  2. (Consumer oriented approach- seems to be the most appropriate)
  3. (Corporate level, business unit level, Functional level – functional level seems to be the most appropriate)

 

St. Joseph’s College of Commerce M.Com. 2014 II Sem Strategic Human Resource Management Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2014

M.COM – II SEMESTER

STRATEGIC HUMAN RESOURCE MANAGEMENT

Duration: 3 Hrs                                                                                     Max. Marks: 100

 

Section – A

 

  1. Answer any SEVEN questions. Each question carries 5 marks.       (7×5=35)
  2. State True or False for  the following statements.  If false, correct the statement.
  3. Human resource management is the same as personnel management.
  4. Human resource planning includes preparing a replacement chart.
  5. Job description describes important details of an employee’s compensation.
  6. E recruitment is suitable for all  kind of companies.
  7. Convention on the Rights of the Child relating to child labour is an ILO convention.

 

  1. Explain the concept of Strategic HRM in the context of growing organizations.
  2. Describe the environmental factors that influence human resource management.
  3. Explain the difference between recruitment and placement.
  4. What are the different methods employed to do a job analysis?
  5. State the different forms of work place violence?
  6. What are the guiding principles of wage fixation?
  7. Mention the ethical issues facing an HR manager?
  8. What are the consequences of substance abuse at work place?
  9. How can safety at workplace be ensured by the HR manager?

 

Section – B

 

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

 

  1. Describe the process of human resource planning. Relate it to the environmental factors affecting an organization.
  2. Discuss the principles of training and development in an organization. What may be the training needs of experienced employees vis a vis fresh recruits in an organization?
  3. Discuss the elements of Performance Management and what are the most common errors encountered while rating performance? What are the legal issues involved in performance appraisal?
  4. Explain in detail the various components and processes of wage fixation. What difficulties are encountered regarding the same?
  5. Examine the reasons for industrial disputes in recent times. What are the ways of resolving disputes involving trade unions?

 

Section – C

  • Compulsory Case study                                                                  (1 x 20 = 20)

 

  1. More women than ever are in the workplace. Women have made enormous advancements in education and professionally especially over the last 20 years. However not only do women on average earn less than men, they also seemed to have hit the so called “Glass Ceiling.” in trying to obtain top level positions and are subject to sexual harassment at work place. Rekha is well educated and is employed as the customer relations manager. Her assignment as a customer service manager was to conduct studies on the different kinds of customer complaints that were recurring and arrive at some conclusions and suggestions to reduce their recurrence. After a thorough job of the task assigned to her for which she was praised, she hoped to move up the ladder to become a senior manager in the organization.  However for reasons not explained, she was denied a promotion as the management assumed that since she was 32 she would be married soon.   When she came to know of this assumption on which the decision was taken, she was put into a confused state to decide whether to continue with the organization or not. She now recalled the sexual politics that she had to encounter when her senior manager, a married, middle-aged man made comments with sexual overtones to her and that she often felt humiliated but could not do much to over come it. This denial of promotion was the last straw and the organization lost a dedicated and sincere worker.

 

Questions:

  1. “Glass Ceiling” is indeed prevalent and a serious shortcoming in the workplace.

Explain.

  1. Does the fields women work in affect their climb in the ladder? Give reasons.
  2. Do you agree that women in management will have some advantage with their typical ‘Feminine Style of Management’? Give reasons to support your answer with reference to the case study.
  3. What would have been the role of an exit interview in this case?
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Scheme of valuation

  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

(Affiliated to Bangalore University)

Strategic Human Resource Management

End Semester Examinations – April  2014

M.Com. & MIB

 

Duration: 3 Hrs                                                             Max. Marks: 100

 

Section – A

 

Answer any SEVEN questions ( out of TEN)      7 x 5  = 35

  1. F,T,F,F,F
  1. guide and align philosophy, tactical planning and practice with the strategic and long term goals of the organization specially in the context of changing business environment focus on human capitalformation and management
  2. Internal and external factors- technology, competition, political economic, sociological internal unions, culture of orgn , leadership, quality of labor
  3. Recruitmentprocess of attracting, screening, selecting, a  qualified person for a  job, Placement proper positioning of an employee, task compensation and incentives
  4.   Job analysis Observation, interview, critical incidents, workshops, diary
  5. Physical assault, threatening behavior or verbal .Verbal harassment, abusive and offensive language, discourteous conduct towards superiors and subordinate at workplace including sexual harassment

7 . Internal equity -difficult jobs pay more, external equity- similar job paid elsewhere, individual equity-  equal pay for equal work

  1. Discrimination and Harassment, privacy in employee relations including hiring, firing, compensation, benefits and leaves,diversity and safety

9.Los of productivity, violence, insubordination

10.Organsing and  Providing training on safety procedures

 

Section – B

Answer any THREE  out of FIVE                          3 x 15   = 45

  1. Meaning, Organization strategies, internal and external envt factors, forecasting, need of the organization, survey availability of people, make suitable plans for the future
  2. To reduce randomness of work and behavioral patterns and align them to organization needs and culture. principles-openness, collaborations, trust, authenticity, proactive, autonomy and conformation. Experienced employee needs different from freshers- new managerial, leadership welfare, succession planning, and performance appraisal, grievance redressal, trade union related. fresher aligning values, attitudes, knowledge skills and behavior to that of the organization
  3. a scientifically based, data-oriented management system. It consists of three primary elements-measurement, feedback and positive reinforcement. Subjectiveness, lack of follow-up, Improper preparation, poor Pay, promotion, training, transfer and termination-common target of legal disputes by employees involving charges of unfairness and bias. documentation, biases effect of recent performance, poor interview
  4. wages . bonus,gratuity and allowances, inflation rate, experience qualification
  5. Mediation, voluntary and a compulsory arbitration board, tribuanals

 

 

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 II Sem Security Analysis & Portfolio Management Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2014

M.COM – II SEMESTER

SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

 

Duration: 3 Hrs                                                                                                Max. Marks: 100

Section – A

 

  1. Answer any SEVEN questions. Each question carries 5 marks.              (7×5=35)

1) What is the difference between Capital Market Line    (CML)  and Security

Market Line (SML)?

2) What is the significance of beta (β) ? Give interpretations of negative, positive

and zero beta

3) In credit rating what does the symbols -AAA+, BBB & D signify?

4) A security has a beta of 1.4. What is the expected return as per CAPM if the

market is returning  12% and risk free rate is 10%

5) What do you mean by EMH?

6) With the help of the formula, explain the concept of bond duration?

7) What is a derivative? What is the fair 3 month forward price of gold for 10

grams, currently trading at Rs 28,000 per 10 grams, the cost of

insurance and storage for 10 grams are 0.1% per annum each and risk free

rate is 10% per annum.

8) With the help of an illustration, explain risk − return trade off?

9) Differentiate between systematic and unsystematic risk?

10) Mention at least 5 types of mutual funds ?

 

Section – B

 

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

 

11)  What is the YTM of a bond with the following characteristics?

Face value = RS 100. Coupon Rate = 14% (Per annum; paid annually)

Current Market Price = Rs 95.

Years remaining to maturity = 6 years. Maturity value = 105

12) What is fundamental analysis? Explain the significance (giving the

formula) of at least 5 ratios that are to be   evaluated as part of

fundamental analysis?

13) Explain with illustration: i) Candlestick charting & ii) Point & Figure chart ?

14) Define a futures contract? Explain the role of market participants in a

futures contract.

15) What is a swap? Explain the types of swaps?

 

 

 

 

Section – C

 

  • Compulsory question.                                                                                 ( 20 marks)

 

  2. Rate of return and risk for three growth oriented companies were calculated over the most recent 5 years and are as follows

 

FIRM RETURN -% Portfolio Risk -%
M 15 16
N 13 18
O 12 11

 

If the risk free rate is 7%, rank the companies as per Sharpe’s index of portfolio performance?

 

 

  1. Highlight the differences between Investing & trading through the concepts of Fundamental Analysis & Technical Analysis.  In this context mention the qualitative factors to be considered in fundamental analysis.

 

(10 +10)

 

 

St. Joseph’s College of Commerce M.Com. 2014 II Sem Research Methodology For Business Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2014

M.COM – II SEMESTER

RESEARCH METHODOLOGY FOR BUSINESS

Duration: 3 Hrs                                                                                                  Max. Marks: 100 

Section – A

  1. Answer any SEVEN questions. Each question carries 5 marks.              (7×5=35)
  2. What are the major categorizations of basic and applied research? What is of more value to the corporate world- Basic or applied? Justify your reasoning.
  3. Due to what reason is it considered mandatory for researchers to write a literature review? What makes a good literature review Explain?
  4. Explain what a research problem is. Describe the nature of problem identification process?
  5. Discuss briefly on the various non-probability sampling techniques.
  6. You have been approached by Mr Ashish, who wants to start an economy line and would like to know:
  7. How is fashion market composed?
  8. What is the profile of avid fashion followers?

iii. What are the potential segments you can convert into fashion followers?

  1. What is their buying behavior like?
  2. How can you approach and market to this segment?
  3. Would it be lucrative to move there?

What would be the nature of information required by you? Can you identify the source where data will be available?

  1. Explain the concept of pilot testing the questionnaire. What are the important aspects to be remembered before conducting pilot testing?
  2. Compare census survey and sample survey. Under what conditions is a sample preferred to a census?
  3. What is a bibliography? How will you write the bibliography in the following contexts?
  4. Books,              ii.  Chapter in an edited book      iii.  Periodicals in journal,
  5. News paper     v. Web site.

 

  1. The following data are collected from two cities as regards the starting stipend paid to new management trainees. Does the data give evidence that the stipend paid in city B is significantly more than that in city A? (Test at a significance of level of 1%).
City Monthly Stipend (Mean)  Sample Standard Deviation Sample
A Rs  1400 Rs    80 200
B Rs  1600 Rs  120 175

 

  1. The sales data of an item in six shops before and after a special promotional campaign are as under:
SHOPS A B C D E F
BEFORE CAMPAIGN 53 28 31 48 50 42
AFTER CAMPAIGN 58 29 30 55 56 45

Can the campaign be judged to be a success? Test at 5% level of significance.

 

Section – B

 

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

 

  1. Elucidate on the different types of Business research.
  2. To examine the effectiveness of a food supplements on weight reduction, a sample of respondents is selected at random. These respondents are divided randomly into two groups, each having the same numbers. Members of the group are weighed weekly for a period of three months. For the next two months, members of one group are given the diet drink. The weights of members of both the groups are taken weekly for the next one month.
  3. Discuss the purpose of this experiment.
  4. Diagram the experiment.

iii. Identify test units, dependent variable, independent variable and extraneous variables

  1. What purpose does each group serve?
  2. Comment on the internal and external validity of the experiment.

 

  1. Discuss how the interview method with observation method is used as a tool for primary data collection.
  2. The contingency table below summarizes the results obtained in a study conducted by a research organization, with respect to the performance of four competing brands of tooth paste among users:
  Brand A Brand B Brand C Brand D Total
No Cavities 9 13 17 11 50
One to five Cavities 63 70 85 82 300
More than five cavities 28 37 48 37 150
Total 100 120 150 130 500

Does the data reveal an association between cavities and the brand of tooth paste used?

 

  1. To study the performance of three detergents and three different water temperatures, the following “whiteness” readings were obtained with specially designed equipment:
Water Temperature Detergent   A Detergent   B

 

 Detergent  C
May 57 55 67
June 49 52 68
July 54 46 58

 

Perform a two way analysis of variance, using 5% level of significance

(Given F  5%  =  6.94)

Section – C

  • Compulsory Case study                                                                  (1 x 20 = 20)

 

Sham  joined Danish international as Vice President for a fortnight and  observed that the team in Danish international was apathetic and there could be multiple reasons for this apathy. Thus it was essential to study the group reaction to the working conditions  at Danish International. It is also important to identify what was perceived as the major problem area.  Sham was of the opinion that there might be difference between old and new employees. This view point was also given due recognition while conducting a survey.  Reghu, a Senior Consultant in Danish International said, “ this seems to be a logical approach to the problem, but don’t you think that before you go to the team members you must at least identify what could be the reasons  for the lackluster performance at Danish by looking at other organizations or by talking to the human resource consultants who have some experience of the same”.

Questions:

  1. What is the research design Sham is likely to recommend? Why?
  2. Identify the variables, hypothesis and the units under study.
  3. How could you improve the accuracy of the results obtained?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ESE – M.Com. 11 Semester– Business Research Methodology -APRIL 2014

 Scheme of Valuation:

Section – A

  1. Answer Any Seven questions out of Ten 5 x 7 = 35 Marks
  2. Business Research: A. Basic Research: Exploratory-conclusive- descriptive- causal. B. Applied Research: Exploratory-conclusive- descriptive- causal. Research is a quintessential tool, no matter what the field of learning is. It has special significance in areas of management by aiding more informed decision making. Basic research adds to management science and applied research is problem centric.
  3. To identify: what has already been written on a topic, ii. previous approaches to the topic, iii. central issues in the field, iv. integrate previous knowledge, v. important issues still unresolved. A good literature review: i. delimits the subject matter to be reviewed, ii. up-to-date  literature, iii. Provides an insight, iv. Points out similarities and differences, strengths and weaknesses in the literature, v. Identifies gaps in the literature for future research, vi. Identifies the context for which the literature is important.
  4. Research Problem is a gap or uncertainty which hampers the process of efficient decision making in a given body of knowledge. Problem identification process: management decision problem- discussion with subject experts-Review of literature- organizational analysis- qualitative survey- identifying variables
  5. Convenience sampling- Quota sampling- judgment sampling- snowball sampling.
  6. You have been approached by Mr Ashish, who wants to start an economy line and would like to know:
  7. How is fashion market composed? Secondary – government publications—socio-demographic profiles
  8. What is the profile of avid fashion followers: Secondary -government publications—socio-demographic profiles, trade magazines, focus group discussions

iii. What are the potential segments you can convert into fashion followers? Secondary -government publications—socio-demographic profiles, trade magazines, no. of young  people who may buy in future, floating public, focus group discussions…

  1. What is their buying behavior like? Primary & secondary analysis –test marketing. FGD
  2. How can you approach and market to this segment?: discussion with experts
  3. Would it be lucrative to move there?: conduct primary research studies

What would be nature of information required by you. Can you identify the source where data will be available?

  1. Pilot testing involves the testing and administration of the designed instrument on a small group of people from the population under study. Purpose: to cover any error- Avoid ambiguity- Important aspects: Always to be conducted on a face to face interaction – get inputs of academic or industry experts Every aspect of questionnaire has to be tested.- record al experience of conduction- including time taken to administer it.-advisable to use multiple investigators (should include experienced and seasoned field investigators)- debriefing: where after the completion of questionnaire, the person is asked to summarize his experience, in terms problems in answering, such as confusion- fatigue
  2. Census survey: suitable when phenomenon under the study is rare. Population is very small. When it is necessary to study every aspect of the population. Sample survey:  Sample survey is preferred under the following conditions: Speed and timeliness-Economy of cost and effort –accuracy of results- feasibility.

Bibliography: last section of report. Appears after appendices. Bibliography contains the source of every reference used and any other relevant work that has been consulted. It imparts authenticity regarding source of data to the reader.

 

  1. H0: there is no significant difference in the stipend paid in the two cities “A” and “B”

S.E.= (µ 1 – µ 2) =√σ12/n1  +  √σ22/n2  =                     σ1 =80,   σ2 = 120,    n1 = 200,      n2 = 175

S.E.= (µ 1 – µ 2) =√(80)2/200  +  √(120)2/175   =  √ 32+  √82.286  =    10. 69

Calculated value of Z =  1400-1600/10.69 = 18.71    Table Value Z 0.005 @ 5% LOS is 2.58 S.E.

The Calculated value of  Z =  18.71    >  Table Value Z 0.005 @ 5% LOS is 2.58   S. E.

Hence Reject H0,.  There is significant difference  in the stipend paid in the two cities “A” and “B”

  1. H0 : the promotional campaign has not been successful.
SHOPS BEFORE CAMPAIGN AFTER CAMPAIGN                  d             ∑d2
A 53 58 +5 25
B 28 29 +1 1
C 31 30 -1 1
D 48 55 +7 49
E 50 56 +6 36
F 42 45 +3 9
              ∑d =21   ∑d2 = 121

 

t =                                                        =    =3.5

S  =                          =      3.08

v = n-1 = 6  -1 =  5,                 t =     =2.78

The Calculated value t is greater  than the Table Value. The hypothesis is rejected. Hence  the promotional campaign has been  successful.

Section – B

Answer Three questions  out of Five                                                                        3 x 15 = 45 Mks

 

  1. 1. Basic-applied – 2. Exploratory: (literature search – experience survey – focus group – analysis of selected cases)- 3.  Descriptive research: (case studies- observational  -survey research – archival research) 4. Quantitative Research: (correlational study –Ex-post facto study-longitudinal study – Survey- Meta analysis) – 5. Qualitative Research, 6. Action Research, 7. Diagnostic Research, 8. Experimental Research.
  2. i. Purpose: any logical purpose /objective constructed (3 marks)
  3. Diagram: experimentation: A. – experiment group (diet drink) – Duration of weight check  B. control group ()No diet drink) – Duration of weight check (3 marks)

iii. Identify test units : dependent variable (Weight increase), independent variable (diet drink) and extraneous variables:  no exercise, Health issues  [ Any logical variable](3 marks)

  1. Purpose each group serve: impact of diet drink on health(3 marks)
  2. Internal validity of the experiment: See that no rival hypothesis crops in to meddle with the study.

External validity of the experiment:                (3 marks)

  1. Interview method: verbal conversation between two people with objective of collecting research information. i. Personal interview, ii. telephone interview, iii. Focus Group interview, iv. Depth interview, v. Projective technique. Observation method: refers to monitoring and recording of behavioural and non-behavioural activities in a systematic manner to obtain information on phenomenon of interest.
  2. H0: Cavities are independent of the brand of tooth paste used.

Ha:  Cavities are dependent of the brand of tooth paste used.

Applying  X2 test =

 

Table of Expected Frequency

10 12 15 13 50
60 72 90 78 300
30 36 45 39 150
100 120 150 130 500

 

O O E (O-E)2
9 10 1 0.100
63 60 9 0.150
28 30 4 0.133
13 12 1 0.083
70 72 4 0.056
37 36 1 0.028
17 15 4 0.267
85 90 25 0.278
48 45 9 0.200
11 13 4 0.308
82 78 16 0.205
37 39 4 0.103
                                                                                                                     ∑[(O-E)2/E =   1.911      

 

X2 = ∑[(O-E)2/E =   1.911

v = (r-1) (c-1) =  (3-1) (4-1) = 6.   For v =3, X20.05  =12.59

the Calculate Value of X2 <  Table Value X2 0.05 @ 5% LOS. The null hypothesis is accepted. Conclusion: Cavities are independent of the brand of tooth paste used

 

  1. H0: 1. Sales made by the four salesmen do not differ significantly

H0: 2. Sales made during different months do not differ significantly

 

To facilitate easy computation deduct 50 from each given value

 

 

Water Temperature Detergent   A Detergent   B

 

 Detergent  C   Total
May +7 +5 +17 29
June -1 +2 +18 19
July +4 -4 +8 8
  10 3 43 56

 

Correction factor, i.e., CF= T2/N  = (56)2 /9 = 348.44

 

Sum of squares between Detergents  (SSC)=

(∑X1)2/N) + (∑X2)2/N) + (∑X3)2/N) –C.F.

[(10)2/3] + [(3)2/3]+ [(43)2/3] -CF  = 33.33 +3+ 616.33 –  348.44  = 304.22

Mean Sum of Squares  Between Columns (MSC)=       SSC/c-1 =     304.22/3-1 = 152.110

 

Sum of Squares BetweenWater Temperatures  (SSR)=    [(29)2/3]+ [(19)2/3]+ [(8)2/3]-348.44

= 280.33 + 120.33  + 21.33 – 348.44 = 73.55

Mean Sum of Squares between rows (MSR) = SSR/r-1 = 73.55/ 3-1 = 36.775

 

Total sum of squares (SSE) = [(7)2 +(-1)2 +(4)2 +(5)2 +(2)2 +(4)2 +(17)2 +

(18)2 +(8)2  – 348.44  = 439.56

 

Source of Variation Sum of Squares v Mean Sum of Squares F
Between Columns (Detergents) 304.22 2 152.11 152.11/15.4475=

9.85
Between Rows (Temperatures) 73.55 2 36.775 36.775/15.4475=

2.38
Residual 61.79 4 15.4475  
Total 439.56 8    

 

  1. The Table Value of F0.05 for v1 =2 and v2 =3, F0.05 = 6.94

The Calculated Value is greater than the Table Value. Reject Null Hypothesis. There is significant difference in the three varieties of detergents

  1. The Table Value of F0.05 for v1 =2 and v2 =4, F0.05 = 6.94.

The Calculated Value is less than the Table Value. Accept Null Hypothesis. Hence water temperatures do not make a significant difference.

Section – C

  1. Compulsory Case study                                                 1 x 20 = 20 Mks

Questions:

  1. What is the research design Sham is likely to recommend? Why?
    2. Identify the variables, hypothesis and the units under study

3 How could you improve the accuracy of the results obtained?

employee perception about the current organizational climate at Danish International

Variable Employee who is he employee

perception

Danish International provides adequate growth opportunities for workers (SA, A, DA)

OPEN END QUES

Organizational climate

Exploratory research design, case study method Focus group discussion

Unit of analysis – employee who works at Danish International

Hypotheses 1: there would be no significant difference between the new and old employees on the perception of the existing organizational climate at Danish International.

secondary resource analysis

expert opinion survey with human resource consultants

Descriptive design study:  Here again the students might argue for a cross-sectional design.

 

 

 

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 II Sem Operations Research For Business Decisions Question Paper PDF Download

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  1.      JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – MARCH / APRIL 2014

M.com – ii semester

OPERATIONS RESEARCH FOR BUSINESS DECISIONS

 

Duration: 3 Hrs                                                                                            Max. Marks: 100

SECTION – A

 

  1. I) Answer any SEVEN Each carries FIVE  marks.                        (7 x 5 = 35)

 

  • A) Explain the rules for constructing a dual.

 

  1. B) M/s Vikram Engineering Works have obtained a large contract for the supply of an alloy steel. The alloy needs three metals X, Y and Z. If the minimum requirement of the metals per week would be: 12 units of X, 10 units of Y and 14 units of Z. The metals are available from dealers who supply them in standardized boxes containing the metals in three different proportions. The boxes are called by code numbers: 221, 321 and 421 respectively. Box 221 contains 1 unit of X, 2 units of Y and 1 unit of Z. Box 321 contains 3 units of X, 2 units of Y and 1 unit of Z whereas Box 421 contains 1 unit each of X and Y and 5 units of Z. The cost of one Box of type 221,321 and 421 is respectively, Rs 1200, Rs 900 and Rs 1500.

Draft the problem as a linear programming problem and also fine its dual.

 

  1. Define Operation Research. Explain the main phases of an OR study.

 

  1. Maxi Taxi Service operates every day four routes with four taxies and the relevant data is given below:
Trucks                                       Routes
  A B C D
1 5.2 5.5 5.0 5.6
2 4.9 5.1 5.2 5.4
3 4.8 5.2 4.9 5.3
4 5.0 5.0 5.2 5.4
Distance to be covered 220 320 360 250

The table contains the kms per litre of diesel consumption by each of the taxies when run is given in the four routes. Find out the assignment of taxies to routes in order to reduce the consumption of diesel per day.

 

  1. What are the various methods to develop the initial feasible solution to a transportation problem? Give the steps involved in VAM. Explain with the help of an example.

 

  1. A branch of Punjab National Bank has only one typist. Since the typing work varies in length (no. of pages to be typed), the typing rate is randomly distributed approximating a Poisson distribution with mean service rate of 8 letters per hour. The letters arrive at a rate of 5 per hour during the entire 8 hour work day. If the type writer is valued at Rs 1.50 per hour, determine
  2.  a) Equipment utilization
  3. b) Average system time
  4. c) Average idle time cost of typewriter per day

 

  1. Use graphical method to solve the following problem

Max Z = 7x1+ 3x2

Subject to:

x1 + 2x2> 3

x1 +  x2< 4

0 < x1< 5/2

0< x2< 3/2

And x1, x2> 0

 

  1. Define dynamic programming with suitable examples. List and explain the terminologies of dynamic programming problem.

 

  1. Explain the following terms:
  2. i) linear programming ii) surplus variable iii) prohibited assignment
  3. iv) queue discipline  v) collusion

 

  1. A Production Manager is planning to produce a new product and he wishes to estimate the raw material requirement for that product. On the basis of usage for similar product introduced previously, he has developed a frequency distribution of demand in tonnes per day for a two month period. Use this data to simulate the raw material usage requirements for 7 days.

Random numbers are: 27,13,80,10,54,60,49,78,66,44

Demand tonnes/day      10      11        12        13        14        15        total

Frequency no. of days   6       18        15        12        6          3          60.

 

  1. A company has three production facilities S1, S2 and S3 with production capacity of 7,9 and 18 units( in 100s) per week of a product, respectively. These units are to be shipped to four warehouses D1, D2, D3 and D4 with requirement of 5, 6, 7 and 14 units (in 100s)per week respectively. The transportation costs ( in Rs)per unit between factories and warehouses per unit between factories and warehouses per unit between factories and warehouses per unit between factories and warehouses are given in the table below
  D1 D2 D3 D4 CAPACITY
S1 19 30 50 10 7
S2 70 30 40 60 9
S3 40 8 70 20 18
DEMAND 5 8 7 14 34

Formulate this transportation problem as an LP model to minimize cost.

 

SECTION –  B

 

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

  1. A firm has a single channel service station with the following arrival and service time probability distribution:
Inter arrival Time (min) Probability Service time (min) Probability
10 0.10 5 0.08
15 0.25 10 0.14
20 0.30 15 0.18
25 0.25 20 0.24
30 0.10 25 0.22
    30 0.14

The customer’s arrival at the service station is a random phenomenon and the time between the arrivals varies from 10 min to 30 minutes. The service time varies from 5 min to 30 min. the queuing process begins at 10 am and proceeds for nearly 8 hours. An arrival goes to the service facility immediately if it is free. Otherwise it will wait in a queue. The queue discipline is first come- first serve.

If the attendants wages are Rs 10 per hour and the customers waiting time costs Rs 15 per hour then would it be an economical proposition to engage a second attendant? Use the following random numbers, the first for arrival and second for service and so on: 20, 26, 73,43, 30, 98, 99, 87, 66, 58, 83, 90, 32, 84, 75, 60, 04,08, 15, 50, 29, 37, 62, 42, 37, 28, 68, 84, 94, 65.

 

  1. A Cheese Company has factories F1, F2 and F3 which supply to warehouses at W1, W2 and W3. Weekly factory capacities are 200, 160 and 90 units respectively. Weekly warehouse requirements are 180, 120 and 150 units respectively. Unit shipping costs in RS are as follows:
                                  Warehouse
 

 

Factory

   W1 W2 W3 SUPPLY
F1 16 20 12 200
F2 14 8 18 160
F3 26 24 16 90
DEMAND 180 120 150 450

 

Determine the optimal distribution for this company to minimize total shipping costs. Use North West Corner rule to find initial solution.

 

  1. Mc Donald’s chain wants to build four stores.in the past, the chain has used six different construction companies and having been satisfied with each, has invited each to bid on each job. The final bids ( in 000 rupees) were as shown in the following:
STORE                                 CONSTRUCTION COMPANIES
  1 2 3 4 5 6
1 853 900 875 824 891 913
2 789 845 994 804 893 884
3 820 313 285 665 804 1097
4 843 346 862 833 850 855

 

Since MC Donald’s wants to have each of the new stores, ready as quickly as possible, it will award, at most one job to a construction company. What assignment results in minimum total cost to the fast food chain?

 

  1. The extension counter of the Citizen’s bank in the premises of a state university has one drive-in counter.it is estimated that cars arrive according to Poisson distribution at the rate of 2 every 5 minutes and that there is enough space to accommodate a line of 10 cars. Other arriving car can wait outside this space, if necessary. It takes 1.5 minutes on an average to serve a customer, but the service time actually varies according to an exponential distribution. You are required to find:

 

  1. Proportion of time the facility remains idle
  2. The expected number of customers waiting but currently not being served at a particular point of time
  3. The expected time a customer spends in the system and
  4. The probability that the waiting line will exceed the capacity of the space leading to the drive-in counter.

 

  1. Discuss the important techniques used under operation research for business decisions.

 

Section – C

 

III)  Compulsory Question.                                                                              (1×20=20)

 

  1. A company produces three products P1, P2 and P3 from two raw materials A and B, and labor L. one unit of product P1 requires one unit of A,3 units of B and 2 units of labor.one unit of product P2 requires 2 units of A and B each and 3 units of L, while one unit of P3 requires 2units of A, 6 units of B and 4 units of L. The company has a daily availability of 8 units of A, 12 units of B, and 12 units of L. It is further known that the unit contribution margin for the products is Rs 3, 3 and 5 respectively for P1, P2 and P3.

Formulate this problem as a linear programming problem and then solve it to determine the optimum product mix. Is the solution obtained by you unique? Identify an alternate optimum solution if any.

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 II Sem Marketing Strategies And Planning Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2014

M.COM – II SEMESTER

MARKETING STRATEGIES AND PLANNING

 

Duration: 3Hrs.                                                                                       Max. Marks: 100

Section – A

  1. Answer any SEVEN questions. Each question carries 5 marks.         (7×5=35)
  2. Explain the concepts / the characteristics of industrial demand.
  3. Discuss the system followed by the government customers while purchasing goods and services.
  4. Briefly explain the scope of business marketing research.
  5. How are industrial products and services classified?
  6. Using a diagram, explain the BCG Matrix and its applications.
  7. Explain the purpose of negotiating with business customers and the styles of negotiation.
  8. What is PLC? Explain its purpose and the stages involved in it.
  9. What are the functions of business marketing intermediaries?
  10. Explain the meaning and scope of logistics in business marketing.
  11. What is e-Commerce? What are its classifications?

Section – B

  1. Answer any three Each carries 15 marks. (3×15=45)
  2. Discuss how business market is different from consumer market, based on major characteristics.
  3. Explain the Webster and Wind Model of organisational buying behaviour.
  4. What is market segmentation strategy? Explain the sequential segmentation process and the variables (or bases) used for segmenting business markets.
  5. Why is new product development considered as a growth strategy? Discuss the steps in new product development process, in B2B context.
  6. Explain the factors influencing pricing decision for business markets.

Section – C

  • Case Study – Compulsory question.     (20 marks)
  1. Deciding Business Strategy

Sunil Shetty, Director, KK Autotech Pvt. Ltd., was not sure what kind of competitive strategy the company should adopt in the face of growing competition. The company was one of the leading manufacturers of service station equipments for two- wheeler service stations in southern region of India. KK  Autotech started its operations in 2002 in Bangalore and by 2012, it had become a dominant player in southern India.

The company adopted a focus strategy, by concentrating on superior quality of the equipment to the geographic segment of the four southern states of India – viz. Karnataka, Tamil Nadu, Andhra Pradesh and Kerala.

Sunil Shetty discussed with the other two directors to invest in the new three-wheeler service station equipment and to launch the product in the market by end 2013. The company had the advantage that the new equipment would be needed by the existing two-wheeler service stations. This would minimise the cost of launching the new product.

The major players in the three-wheelers market were Bajaj Auto (65 per cent market share) and Mahindra & Mahindra (17 per cent share). However, TVS and Hero Honda were also planning to launch their three-wheeler commercial vehicles in 2013.

KK Autotech did not find it necessary to have a marketing department. The company did not have any promotional strategy. The directors thought the company could not afford the marketing expenditure. The relationships with the existing customers were built by their service engineers. Sunil Shetty felt there was no need to develop new customers, since the existing customers were giving adequate business.

However, in the three-wheeler service station equipment there was already a dominant competitor and also there was a possibility of new players from other parts of India entering the southern regional market. Therefore, the question uppermost in the minds of Sunil Shetty and the other two directors was what kind of competitive strategy the company should now adopt in the changing marketing environment?

Questions:

  1. Explain the major issues involved in this case.
  2. Do you agree to the company’s existing business strategy? Justify your answer.
  3. Should the company continue with the existing strategy or not? Give reasons.
  4. Assuming the company should change its strategy to meet growing competition, what strategy do you suggest and why?

&&&&&&&&&&&&&&&&&&&&&&

 

 

 

 

 

 

 

 

Answer Key – Marketing Strategies and Planning.  MCom – II Sem ESE

Section A

  1. Derived demand- fluctuating demand – joint demand – cross elasticity of demand – reverse elasticity of demand – Bull whip effect.
  2. Registration of suppliers. Competitive bidding – closed/sealed tenders, open tenders, reverse bidding, Govt contracts.
  3. Development of market potential, market share analysis, sales analysis, forecasting, competition analysis, bench marking, new product acceptance and potential, business trend studies, sales quota determination.
  4. Materials and parts, capital items, supplies and services.To explain each.
  5. Boston consulting groups model. Products or businesses classified into one of four cells named stars, cash cows, question marks and dogs according to market growth and a products relative market share. To explain each.

              

  1. A process that tries to maximise benefits to both buyer and seller and takes a long term view of their relationship. Focuses on customer satisfaction through interactions. Styles: I win, you lose, Both of us win (win-win), you win I lose, both of us lose.
  2. Product life cycle is a concept to trace the sales and profit of a product through time. Purpose to understand in which stage a product is and evolve suitable marketing strategies. Stages: Introduction, growth, maturity, decline. Explain each.

 

  1. Buying, promotion and selling, assorting, financing, warehousing, grading, transportation, information, risk taking, technical service.
  2. Logistics refers to the design and management of all activities (mainly transportation, warehousing, and inventory control) necessary to make materials available for manufacturing and to make finished goods/products available to customers as needed and in condition required. Scope: Inventory management and control, customer service, transportation, warehousing, plant and warehouse locations, order processing, logistics communications, packaging, and material handling.
  3. Modern business methodology that addresses needs of organisations and customers to cut costs, improve quality of goods and services, and increase the speed of service. Process of using digital technology for transmitting information between organisations. Buying and selling of products and services via computer networks. Classifications: B to B, B to C, C to C, Collaborative eCommerce, intra organisational commerce, mobile commerce, e-goverment, Govt to citizens, Govt to Govt, Govt to Business.

Section B

  1. Market characteristics, product characteristics, service, buyer behaviour, channel, promotional, price. To explain each difference.
  2. Environmental variables, organisational variables, buying centre variables, individual variables. To explain each.
  3. The process of dividing a market into groups of customers who have similar requirements for a product or service offering. Consists of segmenting, deciding on target market and positioning. Bases: Macro variables – type of industry, company size, customer location, end use or application. Macro variables – buying situations, organisational capabilities, purchasing policies, personal characteristics. To explain each briefly.
  4. Products become obsolete due to change in technology, change in customer preferences and choice, etc, If new products are not introduced, company will not grow. Process: Idea generation, idea screening, concept development and testing, business analysis, product development, market testing, commercialisation. To explain each.
  5. Pricing objectives, demand analysis, cost analysis, competitive analysis, and Govt regulations. To explain each.

Section C

      Case study: Students to analyse case and give relevant answers with justifications.

 

St. Joseph’s College of Commerce M.Com. 2014 II Sem Advanced Management Accounting Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – MARCH /APRIL 2014

m.com – ii semester

ADVANCED MANAGEMENT ACCOUNTING

Duration: 3 Hrs                                                                                               Max. Marks: 100

Section – A

  1. Answer any SEVEN out of 10 questions. Each carries 5 marks.       (7 x 5  = 35)

 

  • XYZ Ltd. has on hand 5,000 units of a product that cannot be sold through regular sales. These were produced at a total cost of Rs. 1,50,000, and would normally have been sold for Rs. 40 per unit. Three alternatives are being considered:
  • Sell the items as scrap for Rs. 2 per unit
  • Repackage at a cost of Rs. 20,000, and sell them at Rs. 8 per unit
  • Dispose them off at the city dump at removal cost of Rs. 500.

Which alternative should be accepted?

 

  • Fine Garments Ltd. manufactures readymade garments and uses its cut-pieces of cloth to manufacture dolls. The following statement of cost has been prepared:
Particulars Readymade garments Dolls Total
Direct materials Rs. 80,000 Rs. 6,000 Rs. 86,000
Direct labour 13,000 1,200 14,200
Variable overheads 17,000 2,800 19,800
Fixed overheads 24,000 3,000 27,000
Total cost 1,34,000 13,000 1,47,000
Sales 1,70,000 12,000 1,82,000
Profit(loss) 36,000 (1,000) 35,000

The cut-pieces used in dolls have a scrap value of Rs. 1,000 if sold in the market. As there is a loss of Rs. 1000 in the manufacturing of dolls, it is suggested to discontinue their manufacture. Advise the management.

 

  • The Premier Chemicals Ltd manufactures two chemical solvents, A and B, in fixed proportions of 1:2 respectively. During one month, 60,000 litres were produced and common processing costs of Rs. 2,40,000 were incurred. A and B solvents could be sold in their present form for Rs. 6 and Rs. 8 per litre respectively. However, solvent A can be sold as A-plus for Rs. 8 per litre by adding an extra ingredient costing Rs. 1.50 per litre. Solvent B can be sold as Super-B for Rs.12 per litre if it is processed at an additional cost for Rs. 4 per litre plus an additional Rs. 40,000 per month for hiring a special filtering machine with a capacity of 40,000 litres per month.

Should the solvents be sold at the split-off point or be processed further?

  • Garden Products Ltd. manufactures the ‘Rainpour’ garden spray. The accounts of the company for the year 2013 are expected to reveal a profit of Rs. 14,00,000 from the manufacture of ‘Rainpour’ after charging fixed costs of Rs. 10,00,000. The ‘Rainpour’ is sold for Rs. 50 per unit and has a variable unit cost of Rs. 20.

Market sensitivity test suggest the following responses to price changes:

Alternatives Selling price reduced by Quantity sold increased by
A 5% 10%
B 7% 20%
C 10% 25%

Evaluate these alternatives and state which, on profitability consideration, should be adopted for the forthcoming year, assuming cost structure unchanged from 2013.

 

  • The following particular are given to you:
Particulars Product A Product B
Units produced 20 20
Material handling per product unit 6 14
Direct labour hours per unit 870 870

Budgeted material handling costs are Rs. 1,74,000. You are required to determine cost per unit of the products under ABC method.

 

  • ABC Ltd. is producing a spare part no. 009, for its product. The cost of manufacturing 5000 units of 009 is as under:

Direct material           Rs. 11,750

Direct wages Rs. 94,000

Variable overheads    Rs. 47,000

Fixed overheads         Rs. 58,750

 

Another manufacturer is offering to sell the same spare part for Rs. 41. It is estimated that by avoiding the production of this spare part, the company has to incur Rs. 35200 as fixed overheads.

Should the company make or buy this spare part?

 

  • What is a balance score card? What are the perspectives under the balance score card?

 

  • What is decentralization? What are the advantages of decentralization?

 

  • Write a note on Business Process Outsourcing and value chain management in Indian companies.
  1. What do you understand by capital rationing?
  2. What are the uses of WACC?

Section – B

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

11) A company manufactures and markets three products A,B, and C. All the three products are made from the same set of machines. Production is limited by machine capacity. From the data given below indicate priorities for products A,B and C with a view to maximizing profits:

particulars Product A (Rs.) Product B (Rs.) Product C (Rs.)
Raw material cost per unit 2.25 3.25 4.25
Direct labour cost per unit 0.50 0.50 0.50
Other variable cost per unit 0.30 0.45 0.71
Selling price per unit 5.00 6.00 7.00
Standard machine time required per unit 39 mts 20 mts 28 mts

In the following year, the company faces extreme shortage of raw materials. It is noted that 3 kgs, 4 kgs, and 5 kgs of raw materials are required to produce one unit of A,B, and C, respectively. How would products priorities change?

 

12) Anand Furnishing Ltd. Manufactures a variety of premium board room chairs. Its job-costing system is designed using an activity-based approach. There are two direct cost categories of direct materials and direct manufacturing labour and three indirect costs pools representing three activity areas at the plant:

Manufacturing

Activity area

 Budgeted costs Cost driver used as

Allocation base

 Cost allocation

rate
Material handling Rs.  2,00,000 parts Rs.0.25
Cutting Rs. 21,60,000 parts 2.50
Assembly Rs. 20,00,000 Direct manufacturing labour-hours 25.00

Two styles of chairs were produced in March: executive chair and chairman chair. Their quantities, direct material costs and other data for March are as follows:

Type of chair Units produced Direct material costs Number of parts Direct manufacturing labour-hours
Executive 5000 Rs. 6,00,000 1,00,000 7,500
chairman   100 Rs.    25,000      3,500    500

The direct manufacturing labour rate is Rs. 20 per hour. Assuming no beginning/ending inventory, compute the total manufacturing costs and units costs of the two type of chairs.

 

13) Ambitious Enterprises is currently working at 50% capacity and produces 10,000 units. At 60% working, raw material cost increases by 2% and selling price falls by 2%. At 80% working, raw material cost increases by 5% and selling price falls by 5%. At 50% capacity working, the product costs Rs. 180 per unit and is sold at Rs. 200 per unit. The unit cost of Rs.180 is made up as follows:

Material                                  Rs. 100

Wages                                     Rs.  30

Factory overheads                 Rs. 30 (40%fixed)

Administration overheads    Rs. 20 (50% fixed)

Prepare a marginal cost statement showing the estimated profit of the business when it is operated at 60% and 80% capacity.

 

14) What is transfer pricing? What are the different methods of transfer pricing?

 

15) Write a note on the following:

  1. a) Life cycle costing
  2. b) Target costing
  3. c) Business Process Re-engineering
  4. d) Cost of quality

Section – C

 

  • Compulsory Case study.                                                                               (1 x 20 = 20)
  • a) Royal industries Ltd. Manufactures three different products from single raw materials and by a common process.

Budgeted data for the coming years are presented below. The production costs identified with the individual products are only the separate processing costs incurred after the split-off point.

particulars Product A B C Joint cost
Out put (units) 45,000 30,000 15,000  
Selling price per unit 6 12 18  
Production units:        
Direct material ——- ——— ——- 3,00,000
Direct labour 24,000 36,000 30,000 1,50,000
Variable manufacturing overheads 12,000 18,000 12,000 48,000
Fixed manufacturing overheads 18,000 30,000 24,000 96,000

 

The sales manager has suggested the following sales-mix of products – A: 30,000; B:  40,000 and C: 20,000 involving additional joint processing costs of Rs. 1,00,000.

Comment on the economic feasibility of the proposed mix.                                       (10 Marks)

 

  1. b) Olive Ltd.(OL) is a shoe manufacturing company that started two year back. Their target group of customers is kids below age of five. Its production capacity is 6,500 pairs of shoes per month and there is inventory of 200 pairs of shoes on hand. Expected sales at regular prices for the coming month are 6,000 pairs of shoes. Price and cost data per unit are as follows:

Selling price                                                     Rs. 500

Variable cost:

Production                  Rs.240

Selling                                     Rs.   60                                300

Profit contribution                                                 200

The OL has received an order from a store to buy 1000 pairs at Rs. 350 each. The variable selling costs on the special order would be Rs. 10 per unit. The delivery is to be mad within 30 days.

  • Should OL go for the offer or reject it straight away?
  • What should be the lowest price that the OL should charge on the special order and not reduce its income?
  • Suppose now that the shopkeeper offers to buy 800 pairs per month at Rs. 350 per pair. The offer would be for an entire year. Expected sales are 6000 pairs per month without accepting the special order. Assuming further that is no beginning inventory, determine whether the offer should be accepted by OL.                                              (10 Marks)    

St. Joseph’s College of Commerce M.Com. 2014 III Sem Strategic Financial Management Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – OCTOBER 2014

m.com – III semester

 STRATEGIC FINANCIAL MANAGEMENT

Duration: 3 Hrs                                                                                                  Max. Marks: 100

Section – A

 

  1. Answer any SEVEN Each carries 5 marks.                          (7 x 5  = 35)

 

  1. Write a short note on “Functions of Strategic Financial Management”.
  2. Write a short note on “Financial Planning”
  3. Explain the factors/determinants for determining Dividend Policy?
  4. Explain the traditional methods of Valuation.
  5. Following information of Zoya Limited is given:

Balance sheet as at 31st March, 2014

Liabilities Amount (Rs. mn) Assets Amount (Rs. mn)
Equity 100 Fixed assets 140
Debt 100 Net current assets 60
  200   200

                  Income statement for the year ending 31st March, 2011

Net sales 300
Cost of goods sold 258
PBIT 42
Interest 12
PBT 30
Tax (30%) 9
PAT 21

Company’s cost of equity is 18%. The interest rate on debt (pre-tax) 12%,  Calculate the Economic Value Added (EVA) of the company.

  1. Write short notes on reasons for merger.
  2. Give a brief note on Future Growth Value.
  3. Explain stock refunding as strategic planning.
  4. Explain the process of Shareholder Value Creation.
  5.      Write a note on Balanced Score Card.

 

Section – B

 

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

11) Explain dividend policies, Employee stock options and Indexed options and Buyback of shares as a value based management.

 

12) Explain five waves of merger and antitakeover strategies and defenses.

 

13) K. Ltd. is considering acquiring N. Ltd., the following information is available:

Company Profit after tax Number of Equity Shares Market value per share

  1. Ltd. 50,00,000 10,00,000 200.00
  2. Ltd. 15,00,000 2,50,000    160.00

Exchange of equity shares for acquisition is based on current market value as above.

There is no synergy advantage available   Find the earning per share for company K. Ltd. after merger. Find the exchange ratio so that shareholders of N. Ltd. would not be at a loss.

 

14) Write a note on Valuation of Intangible & Knowledge Assets.

 

15) Bring out the implications of Demergers.

 

Section – C

 

  • Compulsory Case study.                                                                               ( 20 marks)

16.

  1. Mr. PRATHEEK established the following spread on the Delta Corporation’s stock :
    1. Purchased one 3-month call option with a premium of Rs.30 and an exercise price of Rs.550.
    2. Purchased one 3-month put option with a premium of Rs.5 and an exercise price ofRs.450.

Delta Corporation’s stock is currently selling at Rs.500. Determine profit or loss, if the price of Delta Corporation’s:

  1. Remains at Rs.500 after 3 months.
  2. Falls at Rs.350 after 3 months.
  3. Rises to Rs.600.Assume the size option is 100 shares of Delta Corporation.

 

  1. XL  Ispat Ltd. has made an issue of 14 per cent non-convertible debentures on January 1, 2014. These debentures have a face value of Rs.100 and is currently traded in the market at a price of Rs.90.Interest on these NCDs will be paid through post-dated cheques dated June 30 and December 31. Interest payments for the first 3 years will be paid in advance through post-dated cheques while for the last 2 years post-dated cheques will be issued at the third year. The bond is redeemable at par on December 31, 2011 at the end of 5 years.

Required:

  1. Estimate the current yield at the YTM of the bond.
  2. Calculate the duration of the NCD.
  3. Assuming that intermediate coupon payments are, not available for reinvestment calculate the realized yield on the NCD.

(10+10)

 

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SCHEME

m.coM- III  semester

SUB: STRATEGIC FINANCIAL MANAGEMENT

Duration: 3 Hrs                                                                                Max. Marks: 100

 

 

Section – A

 

 

 

  1. Strategic Financial Management is the portfolio constituent of the corporate strategic plan-that embraces the optimum investment and financing decisions required to attain the overall specified objectives. In this connection, it is necessary to distinguish between strategic, tactical and operational financial planning. While strategy is a long-term course of action, tactics are intermediate plan, while operational are short-term functions. Senior management decides strategy, middle levels decides tactics and operational are looked after line management. Irrespective of the time horizon, the investment and financial decisions functions involve the following functions

– Continual search for best investment opportunities

– Selection of the best profitable opportunities

– Determination of optimal mix of funds for the opportunities

– Establishment of systems for internal controls

– Analysis of results for future decision-making.

 

  1. Financial planning is the backbone of the business planning and corporate planning. It helps in defining the feasible area of operation for all types of activities and thereby defines the overall planning framework. Financial planning is a systematic approach whereby the financial planner helps the customer to maximize his existing financial resources by utilizing financial tools to achieve his financial goals. Financial planning is simple mathematics. There are 3 major components:

Financial Resources (FR)

Financial Tools (FT)

Financial Goals (FG)

Financial Planning: FR + FT = FG

 

  1. The factors are

Legal Considerations

Stability of Earnings

Opportunities for Reinvestment and Growth:

Cash flow

Level of Inflation in the Economy

Effect on Market Prices

Tax Considerations

  1. EPS, RDI, EBIT, ROCE etc.
  2. EVA is computed as:

NOPAT = PBIT (1-t) = 42 (1-0.30) = 29.4

Post tax cost of debt = 0.12 (1-0.30) = 0.084

WACC = (0.5 x 0.18) + (0.5 x 0.084) = 0.132

ROC = NOPAT / CAPITAL = 29.4/200 = 0.147

1) EVA = NOPAT – (WACC x CAPITAL)

= 29.4 – (0.132 x 200)   = Rs. 3 million

2) EVA = (ROC – WACC) x CAPITAL

= (0.147 – 0.132) x 200 = Rs. 3 million

3) EVA = [PAT + INT (1-t)] – WACC x CAPITAL

= 21+ 12 (1-0.30)] – 0.132 x 200 = Rs. 3 million

4) EVA = PAT – (kE   x EQUITY)

= 21 – (0.18 x 100) = Rs. 3 million

  1. Tax advantages, Increases liquidity for owners, Gaining access to funds, Growth, Diversification, Related diversification, Synergistic benefits, Protection against a hostile takeover, Acquisition of required managerial skills, assets or technology.
  2. A social unit of people that is structured and managed to meet a need or to pursue collective goals is called an “Organization”. Organizational Structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational goals. A business organization makes changes in personnel and departments and change how workers and departments report to one another to meet market conditions. • Some companies shift organizational structure to expand to serve growing markets & other companies reorganize downsize or eliminate departments to conserve overhead.
  3. A bond that retires another bond before the first bond matures. A company may issue a refunding bond for a number of reasons, butmainly because of a decline in interestrates, which reduces the cost of funding. Refunding bonds deprive bondholders of the firstbond from future coupon payments to which they would otherwise of have been entitled. Most bonds are nonrefundable.
  4. Shareholder Value is driven by Long-term Free Cash Flows Shareholder Value is created when Long-term Returns, Cost of Capital and vice versa Stock price => market’s interpretation of value Stocks could be undervalued or overvalued. Profitability, Capital Efficiency, Growth, Real Options, Cost of Capital.
  5. Most companies have a performance measurement system that includes financial measures as well as non financial measures. The balanced scorecard approach pioneered by Robert Kaplan, David Norton and others to develop an integrated performance measurement system, The balanced scorecard is a strategy driven.The balanced scorecard covers four important perspectives in a business. They are:Financial, Customers, Internal business, Innovation & Learning. The balanced scorecard represents a linked a series of objectives and measures.
  6. A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.
  7. There are two main categories of buyers of companies: strategic buyers and financial buyers. Strategic buyers are corporations who want to acquire another company for strategic business reasons. Financial buyers are buyers who want to acquire another company purely as a financial investment. Financial buyers are typically LBO (Leveraged Buyout) Funds or other private equity funds.
  8. Earning per share for company K. Ltd. after Merger : Exchange Ratio 160 : 200 = 4: 5 That is 4 shares of K. Ltd. for every 5 shares of N. Ltd.

Total number of shares to be issued = 4/5 × 2,50,000 = 2,00,000 shares

 Total number of shares of K. Ltd. and N .Ltd.= 10,00,000 K. Ltd.+ 2,00,000 N. Ltd 12,00,000

Total profit after Tax = Rs. 50,00,000 K. Ltd. Rs. 15,00,000 N Ltd. Rs. 65,00,000

 E.P.S. (Earning per share) of K. Ltd. after Merger = Rs.12,00,000/65,00,000 = Rs.5.42 Per Share

 

To find the Exchange Ratio so that shareholders of N. Ltd. would not be at a Loss:

Present Earnings per share for company K. Ltd.= Rs.5.00 Rs.10,00,000  Rs.50,00,000

Present Earnings Per share for company N. Ltd.= Rs.6.00 Rs.2,50,000   Rs.15,00,000

Exchange Ratio should be 6 shares of K. Ltd. for every 5 shares of N Ltd.

Shares to be issued to N. Ltd.= 2,50,0006/5 = 3,00,000 Shares

Total No. of Shares of K.Ltd. and N. Ltd.= 10,00,000 K. Ltd. + 3,00,000 N. Ltd =13,00,000

E.P.S. After Merger 13,00,000/65,00,000 = Rs.5.00 Per Share

Total Earnings Available to Shareholders of N. Ltd. after Merger = Rs.3,00,000 × Rs.5.00 = Rs.15,00,000

This is equal to Earnings prior Merger for N. Ltd.

 Exchange Ratio on the Basis of Earnings per Share is recommended.

 

 

  1. Despite the relatively high value of knowledge, determining a precise figure for the value of knowledge has proven very difficult. One of the reasons that precise measures for the value of knowledge are in short supply is that knowledge, being an intangible, is often lumped in with other intangibles in valuation approaches. Another problem stems from not being able to distinguish between the effects of different knowledge assets.1. Determine an estimate of annual earnings. This can be, for example, an average of the past three years 2. Determine the expected earnings from tangible capital 3. Determine the expected earnings from intangibles. This is arrived at by subtracting earnings due to tangible capital from total earnings.4. Discount the figure in Step 3 to arrive at the present value of intangible capital.
  2. A demerger is a form of corporate restructuring in which the entity’s business operations are segregated into one or more components.[1] It is the converse of a merger or acquisition. A demerger can take place through a spin-off by distributed or transferring the shares in a subsidiary holding the business to company shareholders carrying out the demerger. The demerger can also occur by transferring the relevant business to a new company or business to which then that company’s shareholders are issued shares of. In contrast, divestment can also “undo” a merger or acquisition, but the assets are sold off rather than retained under a renamed corporate entity. Demergers can be undertaken for various business and non-business reasons, such as government intervention, by way of anti-trust law, or through decartelization.
  3. Solution
    1. Total premium paid on purchasing a call and put option

= (Rs.30 per share × 100) + (Rs.5 per share × 100).

= 3,000 + 500 = Rs.3,500

In this case, X exercises neither the call option nor the put optionas both will result in a loss for him.

Ending value = – Rs.3,500 + zero gain= – Rs.3,500

i.e Net loss = Rs.3,500

 

Since the price of the stock is below the exercise price of the call, the call will not be exercised. Only put is valuable and is exercised.

Total premium paid = Rs.3,500

Ending value = – Rs.3,500 + Rs.[(450 – 350) × 100]

= – Rs.3,500 + Rs.10,000 = Rs.6,500

Net gain = Rs.6,500

 

In this situation, the put is worthless, since the price of the stock exceeds the put’s exercise price. Only call option is valuable and is exercised.

Total premium paid = Rs.3,500

Ending value = -3,500 +[(600 – 550) × 100]

Net Gain = -3,500 + 5,000 = Rs.1,500

 

  1. Current yield =14/90 = 0.1555 or 15.55%

YTM can be determined from the following equation

14 × PVIFA (YTM, 5) + 100 × PVIF (YTM, 5) = 90

YTM = 17.14%

The duration can be calculated as follows:

 

 

 

Year    CashFlow PV at 17.14%        Proportion of NCD value Proportion of NCDvalue × time

 
1 14 11.952 0.1328 0.1328
2 14 10.203 0.1134 0.2268
3 14 8.710 0.0968 0.2904
4 14 7.435 0.826 0.3304
5 114 51685 0.5744 2.8720
    89.985   3.8524

 

Duration = 3.8524 years.

Realized Yield can be calculated as follows:

90

(1 R)

(14 * 5) + 100/(1+R)5   = 90

(1+R)5 =170/90

R= 0.1356 or 13.56%

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 III Sem Project Appraisal And Finance Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – OCTOBER 2014

M COM – III SEMESTER

PROJECT APPRAISAL AND FINANCE 

Duration: 3Hrs.                                                                                     Max. Marks: 80

 

Note – Your Answers should be brief & related to the Marks allotted

Practical reference to examples will be given due credit in Section B & C

 

SECTION – A

  1. Answer any Four Questions in brief.                                ( 4×5=20)

 

  • What do you understand by Ring-fenced & non-recourse Funding ?
  • List out Five types of Projects & indicate the Parameters which determine the types.
  • List out any two types of Equity & Three types of Debt.
  • Briefly outline the possibility of Conflict between Sponsors & Financial Institutions.
  • List out any Five Risks which a Company has to face during Operations & Completion & indicate who are expected to bear them.
  • List out any Five Drawbacks of strictly following a Project Finance Structure.

 

Section – B

  1. Answer any THREE questions, with details of a Practical Project you are referring to:                                                                                         (3×10=30)

 

  • Choose a Project, list out any Ten Activities within Three Stages & present the same in the Form of a Responsibility Matrix.
  • Choose a Project, identify any Three External & Two Internal Risks & explain how these risks could be mitigated through proper Planning of Financing.
  • Explain with a table to highlight the possibility of Risk Contamination in a Project & how they can be handled by the Project Sponsors.
  • Choose a Project & explain with a Diagram either a BOT or a Contractual Project finance Structure.

 

 

 

Section –C

 

III. Case Study  – Compulsory question.                                        (30 marks)

The Ministry of Civil Aviation is planning to improve Five Medium-sized Airports in India and is considering the following Options:

 

  1. Entrusting the entire Project to a single Company.
  2. Identifying Five different Companies for the Five Airports.
  3. Identifying one Company for the Airports & another for the Infrastructure around & leading to the Airport.
  4. Identifying one Company each for the Terminal Buildings, Runways, ATC, Infrastructure etc.

 

Firstly, choose any one of the above as the best for this Project & briefly justify the same.

 

Secondly, analyse & recommend the best combination for Financing the Project through any Five of the following Concepts / Methods:.

 

  • Balancing between Off-take & Input Supply Contracts
  • Project Structure with an SPV as the Core
  • Combination of Project Finance & Corporate Finance
  • PPP
  • Risk Allocation with the help of a Diagram
  • Inclusion of O&M ( to secure Equity & maintain Continuity of revenue )
  • Approach IFC or World Bank ( Five benefits to be listed out )
  • Analysis of Return Variance Vs. Size of Project ( with the help of a Graph )

 

 

St. Joseph’s College of Commerce M.Com. 2014 III Sem International Financial Management Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – OCTOBER 2014

m.com -III semester

INTERNATIONAL FINANCIAL MANAGEMENT

Duration: 3 Hrs                                                                                           Max. Marks: 100

Section – A

  1. Answer any SEVEN Each carries 5 marks.                        (7 x 5  = 35)

 

  1. Write a note on the various International business methods.
  2. Explain the components of International Financial system.
  3. Briefly explain the agencies that facilitate international flow.
  4. Explain the factors affecting international trade.
  5. Write a note on the exchange rate system in India.
  6. Mention the subjective factors to be considered while assessing a particular country for investment in Country Risk analysis.
  7. What are the issues involved in foreign investment analysis?
  8. What are the considerations an MNC has to keep in mind while investing in other country with special reference to tax?
  9. What are the various international project evaluation techniques considered for international investment.
  10. Calculate the Weighted average cost of capital when the capital structure shows:

(a)  existing debt of $5.0 million at 10% for 6 years (tax rate is 30%)

(b)  new debt of $ 3.0 million at 8 % for 10 years with a floating cost of $ 2,00,000

(c ) existing equity shares of $ 7.0 million ($ 15 per share), EPS $ 4, growth rate of 5% and dividend pay-out ratio of 50% and

(d) proposed equity share(1,00,000 shares) to be sold at $15 with $ 2,00,000 floatation cost.

 

Section – B

 

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

11) What are the components of Balance of Payments? What is meant by equilibrium and disequilibrium in balance of payment? What are the measures taken to overcome disequilibrium in the Balance of payment?

 

12) An Indian importer imports goods worth $62,500. He expects an appreciation of pound. So he goes for hedging the risk. The currency market has the following data:

(a) spot rate on the date of the contract Rs. 68,00/£

(b) three month forward rate Rs. 68.50/£

(c) Strike rate in a three-month call option Rs. 68.60/£ with 5% premium

(d) Strike rate in a three-month put option Rs. 68.80/£ with 5% premium

( e) spot rate on the date of payment/maturity Rs. 68.90/£

 

Will he go for a hedge? If so, which of the options he will select?

 

13)  Briefly explain the international working capital management policy from the point of view of a firm as well as units and also elucidate on the objectives aimed to be achieved through Working capital management for an international firm.

 

14) Explain the ways in which the inventory, receivables and cash in managed internationally by the parent as well as the subsidiary

15) Elucidate on the risks involved in international project and the ways to mitigate the same.

Section – C

  • Compulsory Case study.                                                                           (1 x 20 = 20)

 

  1. Sparton a US company is considering pre-development of a subsidiary  company in Singapore, that will manufacture and sell tennis rackets locally. Spartan management has obtained the following relevant information.

(i) Initial Investment :-

An estimated 20 million Singapore $ which includes funds to support working capital would be needed for the project. This is given at the existing spot rate of 0.50 USD/Singapore $

(ii)  Life cycle:-

The projects life cycle is expected to end in 4 years. The host government has promised to purchase the plant from the parent after 4 years

(iii) Price and Demand:-

Year Price/unit Demand (units)
1 Singapore $350 60000
2 Singapore $350 60000
3 Singapore $360 100000
4 Singapore $380 100000

 

 

 

 

 

 

 

The estimated price and demand schedule during each of the next 4 years is as follows:

 

(iv) Cost: – the variable cost for material,  labour etc.,  per unit are as follows;

Year Variable

Cost per unit
1 Singapore $ 200
2 Singapore $200
3 Singapore $ 250
4 Singapore $ 260

The expenses of leasing the extra office space is 1 million Singapore $ per year. Other annual overhead expenses are expected to be Singapore $ 1 million per year

(v)  The exchange rate:

The rate of exchange is USD 0.5 per Singapore $. Spartan uses the spot rate as its best forecast of exchange rate that will exist in future period.

(vi)  The host country taxes on income earned by the subsidiary:-

The Singapore government will allow Spartan to establish the subsidiary and will impose a 20% tax rate on income. In addition, it will impose a 10% withholding tax on any funds remitted by the subsidiary to the parent.

(vii) The US government taxes on income earned by Spartan subsidiary; the US government will allow a tax credit on taxes paid in Singapore.

(viii) Spartan subsidiary plans to send all the net cash flows received back to the parent at the end of the year

(ix) Depreciation on plant and equipment is at a maximum of 2 million Singapore $ per year.

(x) Salvage value of 12 million Singapore $will be paid by the Singapore government at the end of 4 years.

(xi) Discounting rate is 15%.

Calculate NPV.

 

 

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 III Sem Indirect Taxation Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – OCTOBER 2014

m.com – III semester

INDIRECT TAXATION

Duration: 3 Hrs                                                                                             Max. Marks: 100

Section – A

  1. Answer any SEVEN Each carries 5 marks.                        (7 x 5  = 35)

 

  1. Explain whether packing, relabeling and branding amounts to manufacture?

 

  1. Explain briefly the significance of trade parlance test with respect to classification of excisable goods under the central excise act, 1944.

 

  1. Explain briefly the various type of duties on which cenvat credit can be taken in terms of Rule 3(1)of Cenvat Credit Rules,2004.

 

  1. Explain briefly the provisions of Rule 19 of the Cenvat Credit Rules, 2004. Regarding export without payment of duty to a place other than Bhutan.

 

  1. What do you mean by point of taxation? How is it determined?

 

  1. Explain negative list in respect of renting of immovable property.

 

  1. Explain briefly transaction value of identical goods (Rule 4) and similar goods (Rule 5) .

 

  1. Briefly explain transshipment and transit of goods.

 

  1. Explain Goods under VAT. Also define Capital Goods under VAT.

 

  1. Explain due date of payment of service tax payment in case of LLP, Companies, Individuals and Public or Private limited companies.

 

 

Section – B

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

11) (a) Enumerate the procedure for e-payment of service tax .

(b) Calculate service tax on following after considering the provisions of  TDS

  1. i) Architect fees of Rs 4, 48,500 .
  2. ii) Commercial rent of a building situated in Chennai at Rs 16,85,400 per

 

12) Define “Input services “as per Cenvat Credit Rules,2004.Explain whether the following eligible for Cenvat Credit:

  1. a) Technical testing and analysis services.
  2. b) Commission paid to foreign agents
  3. c) Transportation of employees
  4. d) Landscaping of garden
  5. e) Telecommunication services to MD’s residence.

 

13) Compute the service tax liability

  1. a) Commission from acting as clearing and forwarding agents :Rs 3 lakhs.
  2. b) Commission from acting as commission agent of agricultural produce :Rs 14 lakhs.
  3. c) Commission from acting as commission agent of consumers goods Rs 10
  4. d) Margin earned from trading in derivatives Rs 3 lakhs.
  5. e) Margin earned from trading in futures Rs 4 lakhs.

 

14) C Ltd imported a lift from England at an invoice price of Rs 20 lakhs. The assessee had supplied raw materials worth Rs 5 lakhs to the supplier for the manufacture of said lift. Due to safety reasons ,the lift was not taken to jetty .This costed extra Rs 25,000 as unloading charges. The importer was also required to pay ship demurrage charges of Rs 10000.The lift was imported at an actual cost of Rs45000 and an insurance charges of Rs 20000.Compute the assessable value.

15) Compute net VAT liability from the following information:

a)Raw material form the foreign market                                   Rs 120000
b) Raw material form the local market                                      Rs 250000+
                                                                                                       Excise duty 40000+
                                                                                                       VAT @4% 11600
c) Raw material form the neighboring state                           Rs  51000
d) Storage and transportation cost                                           Rs  9000
e)Manufacturing expenses                                                        Rs 30000

The assessee sold goods at a profit of 12%on cost of production. Vat rate is 4%.

 

 

Section – C

  • Compulsory Case study.                                                                      (1 x 20 = 20)

 

  1. a) Explain briefly how value is to be determined for the purpose of rule 4 of the Central Excise Act,1944.

 

  1. b) From the following calculate the Assessable value.
Manufactures units 1000
Cleared for sister concern units  800
Stock lying units  200
Direct material  Rs 2,20,600
Direct labour  Rs 1,60,000
Works overhead  Rs 40,000
Research and development  Rs 25,000
Administration overhead  Rs 80,000 (75% related to production)
Input received  Rs 35,000
Abnormal loses Rs 24,000
VRS compensation to employees Rs 1,20,000
Realisable value of scrap Rs  20,000
Selling cost Rs 36,000

 

  1. c) Comment on the case law:

“Clearance of one type of retail pack for repacking into another type of retail pack known as assorted pack” cannot be said to be a wholesale package.

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 III Sem Ethics For Business Decisions Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – OCTOBER 2014

M COM – III SEMESTER

  ETHICS FOR BUSINESS DECISIONS

Duration: 3Hrs.                                                                                          Max. Marks: 100

Section – A

  1. Answer any SEVEN questions. Each carries 5 marks.                          (7×5=35)
  2. What is insider trading? What is unethical about it? Give 2 examples.
  3. Explain the significance of the RTI Act. Give 2 examples.
  4. Why is surrogate advertising unethical? Explain with examples.
  5. What is whistle blowing? What is its role in corporate ethical behaviour?
  6. Outline the concept of distributive justice and compensatory justice.
  7. Discuss the basic objectives of SEBI.
  8. Explain two cases of unethical practices in HRM in Indian context.
  9. Explain Green Production and Green Washing.
  10. Discuss CSR and its role in business ethics.
  11. Briefly explain Kantianism and its relevance to business organisations.

Section – B

  1. Answer any THREE questions. Each carries 15 marks.                      (3×15=45)
  2. Discuss the six stage model of Kohlberg. In which stage will a whistle blower be, and why?
  3. Explain the areas in marketing ethics (the 4 Ps) with suitable examples.
  4. What is the role of Board of Directors in ensuring ethical business?
  5. Discuss consumerism and its role in society. List out five laws passed in India in the context of consumerism.
  6. Discuss the different possibilities of bank frauds in India with examples.

 

 Section –C

 

  • Case Study – Compulsory                                                              (20 marks)
  1. Marketers targeting Children – the ethical aspects

During the last ten years, there have been several controversies surrounding marketers and advertisers targeting children.  Though there are strict guidelines and laws against advertising many products targeted at children in USA and UK, in India, there are no such regulations. In USA, for example, there are strict restrictions on promoting fast-food for children, in view of the social concerns of obesity- related health problems. President Obama has introduced even a ‘Sin Tax’ to curtail fast-food sales and consumption especially by children.

Every advertisement has a target audience. The question is whether there should be stricter regulations for advertising that focus on more vulnerable sections, especially children. Is it alright to show smart looking middle class mothers, usually played by popular actresses or models, serving their children a meal of instant noodles or cereals fortified with small quantities of vitamins? Is it ethical for marketers to persuade children to eat Burger or French-fries instead of the traditional cereal food?

A WHO report mentions that there has been intense lobbying by the private sector against proposals restricting ads of food products for children. Everything from chocolates to consumer durables and even cars are advertised targeting children, mainly because of their pestering power to influence the buying decisions of their parents. This sector of marketing has been growing in tandem with globalisation and the fastest growth has been registered in China and India, in spite of the fact that many people consider it as unethical marketing practices.

 

Questions – (explain with examples)

  1. Why do marketers target children? Explain with Indian examples. (10 marks)
  2. What are the pros and cons of this strategy? (10 marks)

 

St. Joseph’s College of Commerce M.Com. 2014 III Sem Corporate Tax Planning Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examinations – SEPT /Oct. 2014

M.Com – III Semester

CORPORATE TAX PLANNING

 

Duration: 3 Hrs                                                                                              Max. Marks: 100

 

Section – A

 

  1. Answer any SEVEN Each carries 5 marks.                        (7 x 5  = 35)

 

  1. Examine and explain in the context of provisions contained in the Act as to correctness of the action taken by the Assessing Officer of marking adjustments for the following items while assessing the Book Profits of Sonu Pvt. Ltd., for the year ended 31.03.2014 –
  • Prior Period Expenses of Rs. 3 Lakhs debited in Profit and Loss Account.
  • Depreciation at 9.5% as per Rates prescribed under Schedule XIV of the Companies Act, 1956 charged for whole of the year on the Car valuing Rs. 20 Lakhs purchased on 01-01-2014 in Profit and Loss Account.

 

  1. Specify with brief reasons, whether the following acts can be classified as Tax Planning or Tax Evasion, Tax Management or Tax avoidance
  • P deposits Rs.50,000 in PPF Account so as to reduce Total Income from Rs.3,40,000 to Rs.2,90,000
  • PQR Industries Ltd., installed an Air Conditioner costing Rs.75,000 at the Residence of a Director as per terms of his appointment, but treats it as fitted in Quality Control Section in the factory. This is with the objective to treat it as Plant for the purpose of computing depreciation.
  • SQL Ltd maintains a register of Tax Deduction at Source effected by it to enable timely compliance.
  • R Ltd., issues a Credit Note for Rs.40,000 for Brokerage payable to Suresh, who is son of R, Managing Director of the Company. The purpose of this is to increase his Income from Rs.1,40,000 to Rs.1,80,000 and reduce its income correspondingly.

 

  1. JJ Limited, a company incorporated in Australia, has entered into an agreement with KK Limited, an Indian Company, for rendering Technical Services to the latter for setting up a Fertilizer Plant in Orissa. As per the agreement JJ Limited rendered both off – shore Services and on-shore Services of KK Limited, at fees of Rs.1 Crore and Rs.1.5 Crore respectively.  JJ Limited is of the view that it is not liable to Tax in India in respect of fee of Rs. 1 Crore, as it is for rendering services outside India.  Discuss the correctness of the view of JJ Limited.

 

  1. What is the significance of “Arm’s length Price” in an International transaction?

 

  1. R Ltd., has accumulated profits of Rs.3,00,000 excluding capitalized profits i.e., bonus shares of Rs.1,00,000 issued in the past. The company distribute assets of Rs.2,50,000 to the share holders.  Compute the amount taxable as dividend if the market value of the assets on the date of the distribution is:
  • 2,00,000
  • 3,50,000
  • 4,50,000

Also explain the details of taxation of this amount.

 

  1. MNO Ltd., has one undertaking at Special Economic Zone (SEZ) and another at Domestic Tariff Area (DTA). Following are the details given to you for the Previous Year 2013 – 2014:
Particulars Unit in SEZ Rs. In Lakhs
Unit in DTA
Total Sales 200 100
Export Sales 150 80
Net Profit 40 10

Compute the eligible deduction u/s 10 AA for the Assessment Year 2014 – 2015 in the following situations –

  • Both the units were set up and began manufacturing from 25.07.2008
  • Both the units were set up and began manufacturing from 10.04.2010.

 

  1. Draw a small note on the conditions to the satisfied and the amount of deduction available to an undertaking U/S 80 IAB.
  2. Explain the provisions of set off and carry forward of losses in case of demerger.
  3. What is a double taxation avoidance agreement (DTAA)? Elaborate on the purpose of a DTAA.
  4. Explain with a case law, “form and substance” in tax planning.

 

Section – B

 

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

 

  1. The Net Profit as per Profit and Loss of XYZ Ltd., a Resident Company, for the year ended 31.03.2014 is Rs.190 Lakhs arrived at after following adjustments:
(i) Depreciation on Assets Rs.100 Lakhs
(ii) Reserve for Currency Exchange Fluctuations Rs.50 Lakhs
(iii) Provision for Tax Rs. 40 Lakhs
(iv) Proposed Dividend Rs. 120 Lakhs

Following further information are also provided by the Company

  • Net Profit includes Rs.10 Lakhs received from a Subsidiary Company.
  • Provision for Tax includes 16 Lakhs of Tax payable on distribution of profit and of Rs.2 Lakhs of interest payable on Income Tax.
  • Depreciation includes Rs.40 Lakhs towards Revaluation of Assets.
  • Amount of Rs.50 Lakhs credited to P & L Account was drawn from Revaluation Reserve.
  • Balance of Profit and Loss A/c shown in Balance Sheet at the Asset side as at 31.02.2014 was Rs.30 Lakhs representing Unabsorbed Depreciation.

Compute the Income of the Company for the year ended 31.03.2014 liable to tax under MAT.

  1. ABC Ltd is a manufacturer of steel and allied products. Its Income for AY 2014 – 2015 is as follows –
1. Profits and Gains from Business computed under the provisions of Income Tax Act 19,50,000
2. Book Profit 1,00,40,000

Compute the Tax Payable by the Company and the MAT Credit available to the company

 

  1. (a) R Ltd., a manufacturing company needs a generator for its activities. The cost is Rs.1,00,000.  On making enquiries it is learnt that the company has two options.  The first one is buying the asset by taking a loan of Rs.1,00,000 repayable in five equal installments of Rs.20,000 each along with interest @12% p.a.  The second option is leasing the asset for which annual lease rental is Rs.30,000 up to five years.  The lessor charges 1% as processing fees in first year.

As the tax manager advise the company management on the better option to be selected.

Additional information:

  • Tax rate applicable to the company is 30.9%
Yr. 1 Yr.2 Yr.3 Yr.4 Yr. 5
0.909 0.826 0.751 0.683 0.621

(b) R Ltd., manufactures electric pumping sets. The company has the option to either make or buy from the market component ‘X’ used in the manufacture of the sets.

 

The following details are furnished:

The component will be manufactured on an existing machine costing Rs.1,00,000 with a life of 10 years.  Materials required cost Rs.2 per Kg. and wages Re.0.30 per hour.

 

The salary of foreman employed is Rs.1,500 p.m. and other variable overheads include Rs.20,000 for manufacturing 25,000 nos. of component.  Material requirement is 25,000 kg and requires 50,000 labour hours.

The component is available in the market at Rs.4.30 per piece.

Will it be profitable to make or buy the component?  Discuss.

 

  1. R Ltd., produces most of its own parts and components. The standard wage rate in the parts department is Rs.12 per hour.  Variable manufacturing overhead is applied at a standard rate of Rs.9 per labour hour and fixed manufacturing overheads are charged at a standard rate of Rs.10.50 per hour.

 

For its current years output, the company will require a new part.  This part can be made in the parts department without any expansion of existing facilities.  Nevertheless, it would be necessary to increase the cost of product testing and inspection by Rs.15,000 per month.  Estimated labour time for the new part is half an hour per unit.  Raw materials cost has been estimated at Rs.24 per unit.

The alternative choice before the company is to purchase part from an outside supplier at Rs.36 per unit. The company has estimated that it will need 2,00,000 new parts during the current year.

Advise the company whether it would be more economical to buy or make the new parts.

 

  1. Vivitha Bio Medicals Ltd., is engaged in the business of manufacture of biomedical items. The following expenses were incurred in respect of activities connected with Scientific Research.
Year ended Particulars Amount (Rs.)
30.04.2011 Land 10,00,000
(Incurred after 01.09.2009) Building 25,00,000
31.03.2012 Plant and Machinery 5,00,000
31.03.2013 Raw Materials 2,20,000
31.03.2014 Raw Materials and Salaries 1,80,000

The business was commenced on 01.09.2013

In view of availability of better model Plant & Machinery, the existing Plant & Machinery were sold for Rs.6,00,000 on 01.03.2014

  1. Elaborate on Sec. 35
  2. Discuss the implications of the above for AY 2014 – 2015 along with brief computation of deduction permissible u/s 35, assuming that necessary conditions have been fulfilled. You are informed that the Assessees line of business is eligible for claiming deduction u/s 35 at 200% on eligible items.
  3. Compute the monetary implications of sale of the capital asset in question.

 

 

Section – C

 

  • Compulsory Case study.                                                                         (1 x 20 = 20)

 

  1. Case I:
  2. a) A company wants to raise capital of Rs.20,00,000 for a project where earning before tax shall be 30% of the capital employed. The company can raise debt fund@12% p.a. Suggest, which of the following 3 alternatives should it opt for:
  • 20,00,000 to be raised by equity capital
  • 16,00,000 by equity and Rs.4,00,000 by loans
  • 4,00,000 by equity capital and Rs.16,00,000 by loans.

Assume the company shall distribute the entire amount of profits as dividend and tax rate is 30%

 

Case II: What will be the option, if the earning before tax is 10% of capital employed?

  2. What is deemed dividend u/s 2(22) (e)?
  3. List down the tax planning considerations in a repair/renewal or replacement decision of an asset.

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 I Sem Quantitative Techniques For Business Desicions Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – OCTOBER 2014

m.com – i semester

QUANTITATIVE TECHNIQUES FOR BUSINESS DESICIONS

Duration: 3 Hrs                                                                                           Max. Marks: 100

 

Section – A

  1. Answer any SEVEN  Each carries 5 marks.                    (7 x 5  = 35)

 

  1. The average number of depositors in a Post Office Savings Bank Account for the year 2008, 2009, 2010, 2011 was 2506. The number of depositors in the year 2013 was 11% higher than those in the year 2012, while the average for the six years from 2008 to 2013 was 3007. Find the number of depositors in the year 2012 and 2013.
  2. Skewness measures the extent of symmetry in a distribution and Kurtosis measures the peakedness of a normal curve. Elaborate with appropriate figures.
  3. The profit of a trader increases in the ratio 4:5 for the first five years but from the 6th year his profit declines in the ratio 4:3 in the three subsequent years. His profit in the first year was 2,40,000. Find the increase in profit at the end of 8th year as compared to first year.
  4. A leading publishing house finds that the production cost directly attributed to each book is Rs.40 and the fixed cost is Rs.80,000. Assuming the cost function to be linear, find the cost function. The books can be sold for Rs.60. Find the revenue function. What is the break even point?
  5. What is the probability that a non-leap year should contain 53 Sundays?
  6. Calculate the Coefficient of correlation using concurrent deviation method    from the following data and interpret the result.
X 360 364 372 382 366 370 378 392 386
Y 492 480 460 434 466 454 430 390 400

 

  1. With the help of following data prove that Fisher’s index number satisfies both Time reversal and Factor reversal test.
Commodity Base Year Current Year
Price Quantity Price Quantity
A 5 10 6 12
B 7 12 10 8
C 10 8 12 8
D 4 5 5 6
E 8 7 8 8

 

  1. Given below are the figures of production (tonnes) of a sugar factory. Fit a straight line trend by the method of least squares. What is the yearly increase in the production of sugar?
Year 2005 2006 2007 2008 2009 2010 2011
Production

(tones)

 77 88 94 85 91 98 90

 

  1. “Decision criteria under situation of uncertainty is governed by the attitude of the decision maker”. Explain

 

  1. A person wants to invest in one of the three alternative investment plans: Stocks, Bonds, Savings account. It is assumed that the person wishes to invest all of the funds in a plan. The conditional payoffs of the investments are based on three potential economic conditions: accelerated, normal or slow growth. The payoff matrix is given below. What will be the person’s decision if he uses the following criterion. i)Maxi-Max Criterion ii)Maxi-Min Criterion iii) Mini-Max Regret Criterion   iv)Laplace Criterion

 

Events

Economic

Conditions

 Acts

Alternative investments
Stocks Bonds Savings

Account
Accelerated

Growth

 10000 8000 5000
Normal Growth 6500 6000 5000
Slow Growth -4000 1000 5000

 

 

                                                   Section – B

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

11)  Total cost of production of a firm is given by  C= 300x -10x2+ (x3/3) . Where C stands for cost and x for output. Calculate

  1. a) Output at which marginal cost is minimum.
  2. b) Cost and average cost when 50 units are manufactured.
  3. c) Output at which marginal cost is equal to average cost.

(5+5+5)

12) a) From the prices X and Y of shares A and B respectively given below, find standard deviation, coefficient of variation and state which share is more stable in value?

 

Price of Share A (X) : 55 54 52 53 56 58 52 50 51 49
Price of Share B (Y): 108 107 105 105 106 107 104 103 104 101

 

 

 

 

 

 

  1. b) Find the missing information in the following table:

 

  Groups Combined
A B C
Number of

values

 10 8 – 24
Mean 20 – 6 15

(10 + 5)

 

13) a) An office has 4 secretaries handling respectively 20%, 60%, 15% and 5% of the files of all government reports. The probability that they misfile such reports are respectively 0.05, 0.1, 0.1 and 0.05.  Using Baye’s theorem find the probability that the misfiled report can be blamed on the first secretary.

  1. b) In class there are 5 students who often come late. A teacher has studied the situation over a period of time and determined that there is a 0.4 chance of any one student being late. They arrive independently of each other. Using binomial distribution find the probability of three or more students coming late to class.
  2. c) In a test on electric bulbs it was found that the lifetime of a particular brand was distributed normally with an average life of 2000 hrs and standard deviation of 60 hrs. If a firm purchases 2500 bulbs find the number of bulbs that are likely to last between 1900 and 2050 hrs.

(5+5+5)

 

14) Calculate Karl Pearson’s coefficient of correlation between advertising expenditure and sales from the data given below. It is observed that advertising expenditure incurred has impact on sales  after two months. Find probable error. Is coefficient of correlation significant?

Advertising

Expenditure

(‘000 Rs.)             39    65    62    90    82    75    25    98    36    78

_________________________________________________________

Sales

(Lakh Rs.)            47    53    58    86    62    68    60    91    51    84

 

15)  A group of students raise money each year by selling souvenirs outside the stadium after a cricket match between team A and B. Their sales are mostly dependent on which team wins the match. A conditional pay off table is given as under. If the probability of Team A winning is 0.6, Calculate  i)EVM   ii) EOL  iii) EPPI  iv) EVPI.  Which type of souvenir should the students buy?  Convert the pay off table into a decision tree and identify the best decision.

 

 

Events Acts

Type Of Souvenir
I II III
Team A wins Rs.1200 Rs.800 Rs.300
Team B wins Rs.250 Rs.700 Rs.1100

 

 

Section – C

 

  • Compulsory Case study.                                                                             (1 x 20 = 20)

 

  1. The following table shows a portion of the human resource data on a client company.

 

Client company human resource data by gender

Type of position Gender
Male Female
Managerial 8 3
Professional 31 13
Technical 52 17
Clerical 9 22
Total 100 55

 

  1. i) If a worker is randomly selected from the client company what is the probability that the worker is a woman?
  2. Suppose a special bonus is being given to one person in the technical area, if the bonus is randomly awarded what is the probability that it will go to a man?
  • If a worker is randomly selected what is the probability that the worker is either technical or clerical.

Suppose at the annual holiday party an employee will be randomly drawn to win a trip to Hawaii, what is the probability that:

  1. a professional person will be a winner.
  2. The winner will be either a man or a clerical worker?
  3. The winner is a woman and in management?
  • Suppose the winner is a man, what is the probability that he is from the technical group?

 

  1. “Karl Pearson’s measure of skewness of a distribution is 0.5. Its median and mode are respectively 42 and 36.  Find Mean, Standard deviation, Variance & Coefficient of variation.                                                                                                                  (14 +6)

 

 

St. Joseph’s College of Commerce M.Com. 2014 I Sem Organizational Behaviour Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – OCTOBER 2014

m.com – i semester

ORGANIZATIONAL BEHAVIOUR

Duration: 3 Hrs                                                                                           Max. Marks: 100

 

Section – A

  1. Answer any SEVEN Each carries 5 marks.                    (7 x 5  = 35)

 

  1. What composes the SMART Goals? Explain in detail.
  2. Identify and comment on the factors which contribute to low creativity in work groups.
  3. “A happy employee is generally that employee, who is satisfied in his job.” Explain.
  4. Explain the meaning and types of Values.
  5. Highlight the differences between Job Enlargement and Job Enrichment.
  6. Explain Carl Rogers Self Theory.
  7. Give the meaning of “Strong Culture” and “Weak Culture”.
  8. “Classical Theory was found on four pillars”. Explain the classical pillars.
  9. Explain Kurt Lewin’s model of change.
  10. With the help of a diagram, explain the formation of a team.

 

Section – B

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

11) “Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out”. Highlight the stages in the change process, causes of resistance and how to overcome it.

 

12) Discuss Theory X Y and Theory Z.  Which theory – if any – do you believe in? Explain the reasons for the same.

 

13)  Give the meaning and features of OB. Explain the four models of OB.

 

14)  Explain (a) Herzberg’s two-factor theory, (b) Equity theory of motivation.

 

15) Define “Power”, and “Politics”. Explain the techniques and functions of Organizational Politics.

 

 

 

 

Section – C

 

  • Compulsory Case study.                                                                  (1 x 20 = 20)

 

16)                         Surviving Plant World’s Hard Times

In ten years, Plant World had grown from a one-person venture into the largest nursery and landscaping business in its area. Its founder, Myta Ong, combined a lifelong interest in plants with a botany degree to provide a unique customer service. Ong had managed the company’s growth so that even with twenty full-time employees working in six to eight crews, the organization culture was still as open, friendly, and personal as it had been when her only “employees” were friends who would volunteer to help her move a heavy tree.

To maintain that atmosphere, Ong involved herself increasingly with people and less with plants as the company grew. With hundreds of customers and scores of jobs at any one time, she could no longer say without hesitation whether she had a dozen arborvitae bushes in stock or when Mrs. Carnack’s estate would need a new load of bark mulch. But she knew when Rose had been up all night with her baby, when Gary was likely to be late because he had driven to see his sick father over the weekend, and how to deal with Ellen when she was depressed because of her boyfriend’s behavior. She kept track of the birthdays of every employee and even those of their children. She was up every morning by five-thirty arranging schedules so that John could get his son out of daycare at four o’clock and Martina could be back in town for her afternoon high school equivalency classes.

Paying all this attention to employees may have led Ong to make a single bad business decision that almost destroyed the company. She provided extensive landscaping to a new mall on credit, and when the mall never opened and its owners went bankrupt, Plant World found itself in deep trouble. The company had virtually no cash and had to pay off the bills for the mall plants, most of which were not even salvageable.

One Friday, Ong called a meeting with her employees and leveled with them: either they would not get paid for a month or Plant World would fold. The news hit the employees hard. Many counted on the Friday paycheck to buy groceries for the week. The local unemployment rate was low, however, and they knew they could find other jobs.

But as they looked around, they wondered whether they could ever find this kind of job. Sure, the pay was not the greatest, but the tears in the eyes of some workers were not over pay or personal hardship; they were for Ong, her dream, and her difficulties. They never thought of her as the boss or called her anything but “Myta.” And leaving the group would not be just a matter of saying good-bye to fellow employees. If Bernice left, the company softball team would lose its best pitcher, and the Sunday game was the height of everyone’s week. Where else would they find people who spent much of the weekend working on the best puns with which to assail one another on Monday morning? At how many offices would everyone show up twenty minutes before starting time just to catch up with friends on other crews? What other boss would really understand when you simply said, “I don’t have a doctor’s appointment, I just need the afternoon off”?

Ong gave her employees the weekend to think over their decision: whether to take their pay and look for another job or to dig into their savings and go on working. Knowing it would be hard for them to quit, she told them they did not have to face her on Monday; if they did not show up, she would send them their checks. But when she arrived at seven-forty Monday morning, she found the entire group already there, ready to work even harder to pull the company through. They were even trying to top one another with puns about being “mall-contents.” 

Case Questions:

  1. How would you describe the organization culture at Plant World? Would you like to be a part of such an organization? Give reasons. (10 marks)
  2. How large can such a company get before it needs to change its culture and structure? What are the structural changes that are required in an organization as it grows from a small to a big company?                                            (10 marks)

 

 

 

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m.com- i semester

organization behaviour

 

ANSWER KEY

 

1.SMART – specific, measurable, attainable, realistic and timely.

  1. 2. Factors which contribute to low group creativity are:
  2. The group has no common goal or core focus.
  3. No standard method of making decisions is followed.
  4. The process of generating ideas is not separated from the evaluation of ideas.
  5. Ideas are not evaluated on their own merits. They are evaluated in terms of which group members suggested them.
  6. Ideas do not become the property of the group once they are suggested.
  7. Conclusions are an individual product instead of a group product.
  8. The group does not perceive members’ time as a valuable and scarce resource.
  9. Some members do not feel sufficiently at ease to participate and submit their ideas (they fear derision or reprisal).
  10. Some members dominate or deflect the group from its stated purposes.
  11. 3. Job Satisfaction – it is the extent of positive feelings or attitudes that individuals have towards their jobs.

According to Keith Davis and Newstorm– “job satisfaction is the set of favourable and unfavourable feelings with which employees view their work”.

Factors influencing job Satisfaction –

Organizational factors

Work environmental factors

Work itself

Personal factors

 

  1. Values

Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.

Types –

Terminal Values

Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime.

Instrumental Values

Preferable modes of behavior or means of achieving one’s terminal values.

  1. Job Enlargement –

Involves a horizontal expansion of a job.

Its purpose is to reduce the monotony in performing the repetitive jobs.

May not call for the acquisition of higher level or new skills on the part of job holders.

Job holder may need more external direction and control.

Job Enrichment –

Involves vertical loading of functions and responsibilities.

Its purpose is to make the job more lively, challenging and satisfying.

Requires development and utilization of higher skills on the part of job holders.

The employee uses his own capabilities of self direction and control.

 

  1. Carl Rogers Self Theory –
  • The self-concept includes three components: Self worth, self image and ideal self
  • Self worth(or self-esteem) – what we think about ourselves. Rogers believed feelings of self-worth developed in early childhood and were formed from the interaction of the child with the mother and father.

Self-image – How we see ourselves, which is important to good psychological health. Self-image includes the influence of our body image on inner personality. At a simple level, we might perceive ourselves as a good or bad person, beautiful or ugly. Self-image has an affect on how a person thinks feels and behaves in the world.

  • Ideal self– This is the person who we would like to be. It consists of our goals and ambitions in life, and is dynamic – i.e. forever changing. The ideal self in childhood is not the ideal self in our teens or late twenties etc.

 

  1. Strong cultures
    • Organizations that have clear values that are shared to the extent of similar behavior.

Weak cultures

  • Organizations that have no stated values and do not enforce behavior.

 

  1. Classical theory was founded on four pillars
    • Division of labour – based on an assumption that more a particular job can be fragmented into smaller, simpler components, more specialized and skilled a worker becomes.
    • Scalar and functional process – The scalar and functional process – rests on the assumption that there is a chain of command through out an organization.
    • Structure –
    • Span of control.

 

  1. Kurt Lewins model – Unfreezing–àmoving-àrefreezing. (explanation)

 

  1. Team formation –

 

 

 

  • Forming – The team meets and learns about the opportunity and challenges, and then agrees on goals and begins to tackle the tasks.
  • The forming stage of any team is important because in this stage
  1. the members of the team get to know one another,
  2. exchange some personal information, and make new friends.
  3. This is also a good opportunity to see how each member of the team works as an individual and how they respond to pressure.
  • Storming – The storming stage is necessary to the growth of the team. It can be contentious, unpleasant and even painful to members of the team who are averse to conflict. Tolerance of each team member and their differences needs to be emphasized. Without tolerance and patience the team will fail. This phase can become destructive to the team and will lower motivation if allowed to get out of control.

Norming – At some point, the team may enter the norming stage. Team members adjust their behaviour to each other as they develop work habits that make teamwork seem more natural and fluid.

  • Performing: Some teams will reach the performing
  • These high-performing teams are able to function as a unit as they find ways to get the job done smoothly and effectively without inappropriate conflict or the need for external supervision.
  • Adjourning/Mourning – Mourning: Project teams usually exist only for a fixed period. The break up of the team can be particularly hard for members who like routine or have developed close working relationships with other team members, particularly if their future roles or even jobs look uncertain.

 

 

 

 

SECTION B

 

  1. Stages in the change process.

 

 

CAUSES OF RESISTANCE

Individual resistance –

Economic factors

Habits

Insecurity

Lack of communication

Extent of change

Psychological factors

Social factors

Group Resistance

Organizational Resistance –

            Threat to power

Group Inertia

Organizational structure

Threat to specialization

Resource constraints

Sunk costs

 

OVERCOMING RESISTANCE TO CHANGE –

Participation and involvement

Effective communication

Facilitation and support

Leadership

Negotiation and Agreement

Manipulation and co-optation

Coercion

Timing of change.

 

12. McGregor’s Theory X and Theory Y

Theory X says that most people don’t like to work and will avoid it if they can.  Theory X managers believe that they need to force and threaten people to work.

Theory Y says that people can direct and control themselves, working towards the goals set by a company.

Ouchi’s Theory Z says that workers, managers and can share control, work as a team to accomplish the company’s goal.

 

Theory X                       Theory Y                                  Theory Z

Employees dislike work and will try to avoid it.

Employees prefer to be controlled and directed.

Employees seek security, not responsibility.

 

Employees must be intimidated by managers to perform.

Employees are motivated by financial rewards.

 Employees view work as a natural part of life.

Employees prefer limited control and direction.

Employees will seek responsibility under proper work conditions.

Employees perform better in work environments that are not intimidating.
Employees are motivated by many  different needs.

 Employees like work

 

 

Employees help make decisions

 

Employees take individual responsibility
Employers and managers share control

 

Employees expect long term employment, slower rates of promotion

 

 

  • OB – Acc. to John. W. Newstrom and Keith Davis – “the study and application of knowledge about how people as individuals and as groups – act within the organization. It strives to identify ways in which people can act more effectively”.
  • Thus it can be defined as studying, predicting and managing human behaviour caused by individuals, groups and structures towards the requirements of organizational strategies.

 

FEATURES

  • Deliberate and conscious creation.
  • Attainment of common objectives.
  • Aggregation of interrelated individuals.
  • Division of work
  • Coordination
  • Well defined Authority Responsibility relationship.
  • Group behaviour

MODELS

Autocratic model

  1. Custodial model
  2. Supportive model
  3. Collegial model
  • Autocratic model  – In an autocratic model’, the manager has the power to command his subordinates to do a specific job. Management believes that it knows what is best for an organization and therefore, employees are required to follow their orders. The psychological result of this model on employees is their increasing dependence on their boss. Its main weakness is its high human cost

            Custodial Model

  • This model focuses better employee satisfaction and security. Under this model, organizations satisfy the security and welfare needs of employees. Hence, it is known as custodian model.
  • This model leads to employee dependence on an organization rather than on boss. As a result of economic rewards and benefits, employees are happy and contented but they are not strongly motivated.

SUPPORTIVE MODEL

  • The supportive model depends on ‘leadership’ instead of power or money. Through leadership, management provides a climate to help employees grow and accomplish in the interest of an organization. This model assumes that employees will take responsibility, develop a drive to contribute and improve them if management will give them a chance. Therefore, management’s direction is to ‘Support’ the employee’s job performance rather than to ‘support’ employee benefit payments, as in the custodial approach. Since management supports employees in their work, the psychological result is a feeling of participation and task involvement in an, organization.

COLLEGIAL MODEL

  • The term ‘collegial’ relates to a body of persons having a common purpose. It is a team concept. Management is the coach that builds a better team. The management is seen as joint contributor rather than as a boss. The employee response to this situation is responsibility. The psychological result of the collegial approach for the employee is ‘self-discipline’. In this kind of environment employees normally feel some degree of fulfillment and worthwhile contribution towards their work. This results in enthusiasm in employees’ performance.
  1. Herzbergs theory – Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction, and

Hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not motivate if present, but, if absent, result in demotivation.

The name hygiene factors is used because, like hygiene, the presence will not improve health, but absence can cause health deterioration.

Hygiene/maintenance factors –

  • Job context
  • Extrinsic factors
  • Company policy and administration
  • Quality of supervision
  • Relation with superiors
  • Working conditions
  • Salary
  • Peer relation
  • Status
  • Job security

 

Motivating factors –

  • Job content
  • Intrinsic factors
  • Achievement
  • Recognition
  • Work itself
  • Responsibility
  • Advancement
  • Possibility of Growth

(B). EQUITY THEORY OF MOTIVATION –

  • Equity theory in business, however, introduces the concept of social comparison, whereby employees evaluate their own input/output ratios based on their comparison with the input/outcome ratios of other employees (Carrell and Dittrich, 1978).
  • Equity theory proposes that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship.
  • It focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratios of contributions and benefits of each person within the relationship. 
  • Inputs in this context include
  • the employee’s time,
  • expertise,
  • qualifications,
  • experience,
  • intangible personal qualities such as drive and ambition, and
  • interpersonal skills.
  • Outcomes include
    • monetary compensation,
    • perquisites (“perks”),
    • benefits, and
    • flexible work arrangements.

 

 

  1. Power – “is the ability to influence people or things, usually obtained through the control of important resources”.

Politics –  refers to the way people gain and use power in organizations.

TECHNIQUES –

form the right alliance

expect reciprocal favours

try to be popular

be persuasive without being arrogant

control the decision criteria

use outside experts

 

FUNCTIONS

To overcome employees inadequacies

To cope with the change

To channel personnel contracts

Execution of decisions

To ensure full debate.

 

  1. case study – individual perceptions to be valued according to the justifications given/stated by a student.

 

 

St. Joseph’s College of Commerce M.Com. 2014 I Sem International Financial Institutions And Markets Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – OCTOBER 2014

m.com – i semester

INTERNATIONAL FINANCIAL INSTITUTIONS AND MARKETS

Duration: 3 Hours                                                                                          Max. Marks: 100

 

Section – A

  1. Answer any SEVEN    Each carries 5 marks.                   (7 x 5  = 35)

 

  1. Briefly explain the functions of IMF.
  2. What is FCCB?
  3. Calculate the arbitrage gains possible on Rs.10,00,000 from the middle rates given below. Assume there no transaction costs.

Rs. 76.200 = £1 in London          Rs.46.600 = $1 in Delhi        $1.5820 = £1

in New York

  1. What do you understand by Nostro and Vostro?
  2. Explain the following : FRA, Interest Rate cap and Interest rate floor.
  3. DLF has issued 9% Bonds @ par value of Rs.1000 each and redeemed at a premium of 10% after 10 years from the date issue. The prevailing inflation rate is 8%. Calculate the duration of bond.
  4. How does Forward contract differ from Future contract?
  5. Distinguish between Bond valuation and Bond duration
  6. On 03-11-2008 the spot rate is 1 US dollar = 45.36

The bank rates of interest in US and India are 8.5% and 4.5% respectively per annum. What would be forward rate for 3 months?

  1. State meaning of the terms LIBOR and Repo.

 

Section – B

  1. Answer any THREE Each carries 15 marks.                              (3 x 15   = 45)
  2. Mr. Johnson has bought the following options on 1st October 2014 as he predicts that the stock market will have bearish trend in the month of October 2014,

(a) TCS October call option at a strike price of Rs.500 with a premium of @ Rs.20  per share.

(b) TCS October put option at a strike price of Rs.550 with a premium of @ Rs.30 per share

Prepare the table showing tentative spot price for a period of ten trading days and net profit/loss for the same and at what tentative spot price, can call or put option be activated?

 

  1. What is ADR? Explain the types of ADR issues and issue mechanism.

 

  1. Explain the kinds of bonds that are offered in the international Bond Market?
  2. What are instruments that are issued in the International Money Market?

 

  1. Future – Long Position

Day                                               Today

Stock name                                  Infosys

Current market price                 Rs.2400 (also the purchase price)

Target                                           Rs.2500 (as per the analyst’s recommendation)

Time                                             1 week (expected time for the target to be achieved)

Lot size of Infosys                      125shares (minimum number of shares to be purchased)

Initial margin payable   15% on the contract value

Settlement date               26th October 2014 (last Thursday/ contract expiry date)

Possible scenario:

Closing price on day 1              Rs. 2375

Closing price on day 2              Rs. 2450

Closing price on day 3              Rs. 2500

Closing price on day 4              Rs. 2300

 

Prepare table showing Net profit or Loss and obligation or Marked – To Market margin at the end of each day for the period of four days.

 

Section – C

 

  1. Compulsory Case study.                                                                         (1 x 20 = 20)

 

  1. Futures Long and Short Positions

For a Future contract in Canadian dollar, the initial margin and maintenance margin prescribed by the exchange are USD 4,000 and USD 3,000 respectively. A contract is concluded at a price of USD 0.75. The settlement price in the exchange at end of four days subsequent days are as follows:

 

Day 1 USD  0.745
Day 2 USD  0.740
Day 3 USD  0.730
Day 4 USD  0.755

 

At the end of each day, the margin accounts of both the buyer and seller will be adjusted based on the settlement price for the day. Where the margin goes below the maintenance level, the buyer/ seller will be required to reimburse to bring the balance to the initial level. If the margin is more than the initial level, the member concerned is free to withdraw the excess. Tabulate the adjustments to be made in the margin money of buyer and seller assuming that the lot size of USD is 1,00,000 and opening price is USD 0.750.

 

  1. Kenwood Industries Ltd has $5,00,000 foreign loan outstanding at an interest rate at 8% p.a. The interest rate is reset every six months and interest is payable at the end of six months period on 30th September and 31st The treasurer expects that interest of 9% p.a will prevail for a period of starting from 1st April to September. He entered into a forward rate agreement for locking interest rate at 9%p.a.

 

What would be the financial implication?

  • if rate of interest is 8.2 % a.p. and

 

  • if rate of interest is set at 10 % a.p. (if LIBOR goes to 8.2% or 10%)?

 

 

St. Joseph’s College of Commerce M.Com. 2014 I Sem Computer Applications For Business Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXMAINATION – OCTOBER 2014

 M.COM – I SEMESTER

COMPUTER APPLICATIONS FOR BUSINESS

Time: 3 Hours                                                                                         Max. Marks: 100
Section – A

  1. Answer any SEVEN Each carries 5 marks.                   (7 x 5  = 35)

 

  1. How does MIS Supports Management? Explain the steps involved in the same?
  2. What are the different approaches of Information System Audit? Explain the same by taking the company as a same?
  3. Decode: EDI, SMTP, POP3, FTP, DOS with proper examples and its usability in real time?
  4. What do you mean by Web Publishing? Explain in the steps involved in publishing the content on the web?
  5. Enumerate the steps involved in Information System Development?
  6. Differentiate between E-Business and Ecommerce with Proper Examples?
  7. What is Cryptography and the techniques which are now in use?
  8. What do you mean by BCP? Brief in the four broad and sequential sections of Business Continuity cycle?
  9. What do you mean by Backup? Explain in detail the different types?
  10. Explain the concept “tunneling”? Discuss in brief about between Intranet, Extranet, Internet, and VPN?

 

Section – B

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

11) Enumerate the steps involved in Business Continuity Planning in detail by taking up the company as a case?

12) What are the different dimensions and security threats involved in Ecommerce Security?

13) Decode EDI and its benefits? What are the technical aspects involved in EDI in detail?

14) Explain in brief about OSI reference model? What are the different layers attached to this concept?

15) What are the Objectives of IS Audit? Explain in detail the relevant roles at each stage by taking company as a case?

 

 

Section – C

  • Case study – Compulsory question.                                                                  ( 20 marks)

A Major European Bank Implements MPVPN Solution for Complete Link Redundancy to Support its Mission Critical Virtual Private Network for at its North American Locations

A large banking institution based in Frankfurt, Germany initiated an IT solution that would provide link redundancy at its North American Locations due to growth in the region. Although the bank is concentrated primarily in Europe as one of Europe’s leading private-sector banks servicing roughly 6 million customers worldwide, it also operates in key international MARKETS including the United States.

The bank implemented a new IT policy at its North American locations to lend support to its mission critical VPN traffic that required failover “pipe” functionality. The bank needed complete link redundancy for each of its US branch offices to its US-based headquarters in New York City, and a site-to-site failover from its UT headquarters to its disaster recovery site. All critical data transmissions run across VPN connections, and domain controllers and application servers reside at the Headquarters.

The bank’s IT department chose to implement FatPipe’s MPVPN technology over a BGP solution because FatPipe was able to address its need for redundancy at a low cost without having to make major changes to its current network. The main deciding factors were seamless integration, along with easy installation and adaptation into its network, as well as achieving dynamic load balancing of VPN traffic over multiple VPN tunnels, and the flexibility to use any type of data line connectivity.

The bank’s IT department introduced two 50 Mbps MPVPN units – one at the US headquarters and one at the disaster recovery site — along with six 2Mbps units at three branch office locations to accomplish their objective. Each branch office has two, 2Mbps units for failover purposes. DSLs were aggregated at each branch office, and a combination of DSLs and T1s at the headquarters and disaster recovery sites

The bank was happy with the results. One of its managers commented, “When one of the two DSL lines went offline (at any of the US branch offices), FatPipe MPVPN equipment was able to auto-detect and route all VPN traffic to the next DSL line and not affect the branch office VPN connections.”

Its implementation of MPVPN for link redundancy is consistent with the bank’s overall IT strategy. All application servers are replicated and synchronized between the two sites. MPVPN ensures that applications and servers are accessible to all users at all times.

Questions:

  1. a) Explain in the current situation of the bank? What kind of solution and the benefits the bank can get after the implementation is done?
  2. b)  What do you mean by VPN? Explain its usability by taking company as an example?

 

 

St. Joseph’s College of Commerce M.Com. 2014 I Sem Business Perspectives Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OFCOMMERCE (AUTONOMOUS)

                              END SEMESTER EXAMINATION – OCTOBER 2014

M.COM – I SEMESTER

 BUSINESS PERSPECTIVES

Duration: 3Hrs.                                                                                          Max. Marks: 100

SECTION – A

  1. Answer any SEVEN questions. Each carries 5 marks.                          (7×5=35)

 

  1. Explain why ethics is important for any business.
  2. Discuss the social impact of technology in India.
  3. What is meant by the LPG policy?
  4. What is CSR? What are the pressures for CSR in businesses?
  5. Discuss corporate governance and the factors influencing it.
  6. Differentiate fiscal policy and monetary policy with examples.
  7. Explain the functions and recommendations of the Finance Commission.
  8. What are the agencies in India to rehabilitate sick industries? What are their initiatives?
  9. Briefly explain the process of analysis of environment by a business.

Section – B

 

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

 

  1. Discuss the reasons for poor performance of public sector enterprises in India.
  2. “A typical business unit seeks to achieve more than one objective.”
  3. Explain the reasons for government intervention and regulations in business. What are the types of controls by government?
  4. What is industrial sickness? What are its causes and remedies?
  5. Explain the objectives and important initiatives of the Industrial Policy 1991.

 

Section –C

  • Case Study – Compulsory         (20 marks)

                                                Privatisation is no ideology                                            

The former Prime Minister of India had ruled out privatisation of profit-making public sector undertakings (PSUs). In a press conference, he had specifically ruled out privatisation of GAIL and ONGC. Privatisation need not be an ideological pursuit, we agree. However, we have endorsed privatisation even of profit-making PSUs essentially on the ground that government ownership leads to sub-optimal efficiency. The political culture of the country has become such that PSUs are used by politicians and bureaucrats as a means of patronage and personal enrichment. Given the reality of this political culture, privatisation is indeed the solution. While ruling out privatisation of profitable enterprises in the state sector, the government cannot simultaneously be repudiating the goal of realising the maximum potential of the scarce production assets represented by the PSUs. While the political leaders in economic policymaking bodies have talked about autonomy for PSUs, talk is not enough. PSUs would have to be freed from control by ministries. And this freedom would have to be structured institutionally.

There is no reason for joint secretaries to the government of India to sit on the boards of state-owned companies. There is no reason for PSUs to be needlessly subjected to vigilance, CBI and other inquiries. Why should this country have two classes of owners, in terms of oversight of how well managements discharge their responsibility towards owners? The whole point is that company law, corporate governance, accounting and reporting norms for all companies, whether owned by the government or by the public at large, must ensure that the capital provided to company managements is put to optimal use. That goal can be met by the government acting as a portfolio investor, leaving the actual running of the company to professional management, who can be rewarded or sacked, depending on performance. Institutionalising such genuine autonomy must complement a policy of not privatising profit-making PSUs.

Questions:

16.

  1. What are the main issues in this case?
  2. What are the reasons for the sub-optimal efficiency of our PSUs?
  3. Should profit making PSUs be privatised? Justify your views.
  4. Suggest alternate remedial measures for making the PSUs efficient.

(5+5+5+5)

 

 

 

St. Joseph’s College of Commerce M.Com. 2014 I Sem Advanced Corporate Accounting Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – SEPT / OCT 2014

m.com – i semester

 ADVANCED CORPORATE ACCOUNTING

Duration: 3 Hrs                                                                                                       Max. Marks: 100

 

Section – A

  1. Answer any SEVEN Each carries 5 marks.                          (7 x 5  = 35)

 

  • Mention the five specific conditions, on fulfillment of which the event of two entities coming together is to be treated as “amalgamation in the nature of merger”.
  • What is Human Resource Accounting? Mention any two objectives and assumptions of Human Resource Accounting.
  • Write Short note on the Role of Public Accounts Committee.
  • What is the need for Segmental Reporting? How are the reportable segments classified?
  • Mention any 5 differences between Government Accounting and Commercial Accounting.
  • Mention the main objectives of Indian Accounting Standards. Who issues the Accounting Standards in India?
  • What is Cost of Control? How do you compute it?
  • Write the disclosure requirements of Operating Segments as per AS 17. (IFRS – 8).
  • Explain the need for corporate social reporting.
  • Briefly explain the concept of Environmental Accounting.

 

Section – B

  1. II) Answer any THREE Each carries 15 marks.                     (3 x 15   = 45)
  • The National Company Ltd. was incorporated on 1st July 2014 for the purpose of acquiring M Ltd. and N Ltd. and O Ltd.

The Balance Sheets of these companies as on 30th June 2014 are as follows:

Particulars M Ltd. N Ltd. O Ltd.
Asses      
Tangible Fixed Assets at cost less depreciation 5,00,000 4,00,000 3,00,000
Goodwill 0 60,000 0
Other Assets 2,00,000 2,80,000 85,000
Total 7,00,000 7,40,000 3,85,000
       
Liabilities:      
Issued Equity Share Capital (shares of Rs. 10 each) 4,00,000 5,00,000 2,50,000
Profit and Loss Account 1,50,000 1,10,000 60,000
10% Debentures 70,000 0 40,000
Sundry Creditors           80,000     1,30,000        35,000
Total       7,00,000     7,40,000     3,85,000

 

Average annual profits before debenture interest (July 2013 to June 2014 inclusive) 90,000 1,20,000 50,000
Professional valuation of tangible assets on 30th June 2014 6,20,000 4,80,000 3,60,000

 

  1. The directors in their negotiations agreed that:
  2. The recorded goodwill of N Ltd. is valueless;
  3. The “other assets” of M Ltd. are worth Rs. 30,000;
  • The valuation on 30th June 2014 in respect of tangible assets should be accepted.
  1. These adjustments are to be made by the individual company before the completion of the acquisition.

 

  1. The acquisition agreement provides for the issue of 12% unsecured debentures to the value of the net assets of companies M Ltd., N Ltd., and O Ltd. and for the issuance of Rs. 10 nominal value of equity shares for the capitalized average profit of each acquired company in excess of net assets contributed. The capitalization rate is established at 10%.

You are required to:

  1. Compute Purchase Consideration
  2. Show the discharge of Purchase Consideration.

 

  • The following is an extract of the Profit and Loss Account of Better and Best Ltd., for the year ended 31st March, 2014.
Particulars Rs. In thousands
Sales ( including excise duty recoveries) 727
Other Income 13
Total 740
   
Material 530
Excise Duty 62
Salaries, wages and employee benefits 19
Other Expenses 47
Interest and finance charges 7
Depreciation 5
Provision for taxation 31
Preliminary Expenses written off 5
Transfer to debenture redemption reserve 5
Proposed Dividend 5
Transfer to General Reserve 24
Total 740

Notes:

  1. Other expenses include fees and commissions to whole-time directors of Rs. 9,000 and loss on sale of fixed assets of Rs. 3,000.
  2. Interest and finance charges include interest on long-term loans of Rs. 4,000, balance being on short-term borrowings.

 

You are required to prepare a Value Added Statement for the year ended 31st March, 2014 and Reconcile total value added with Profit before taxation.

 

  • From the following date, determine in each case:

 

  1. Minority Interest at the date of acquisition and at the date of consolidation.
  2. Goodwill or Capital Reserve
  3. Amount of holding company’s profit in the consolidated Balance Sheet assuming holding company’s own profit and loss account to be Rs. 2,00,000 in each case.

 

Case No. Company Owned Share Holding Cost (Rs.) Subsidiary Company
Date of Acquisition 1.1.2013 Consolidation Date 31.12.2013
Share Capital (Rs.) Profit and Loss (Rs.) Share Capital (Rs.) Profit and Loss (Rs.)
1 A 90% 1,40,000 1,00,000 50,000 1,00,000 70,000
2 B 85% 1,04,000 1,00,000 30,000 1,00,000 20,000
3 C 80% 56,000 50,000 20,000 50,000 20,000
4 D 100% 1,00,000 50,000 40,000 50,000 55,000

 

  • What do you mean by segmental reporting? Mention the types of segment & also elucidate on the Quantitative threshold applicable to segmental reporting

 

  • Write Short notes on:
  1. Forms of Accounts in Government Accounting.
  2. Power of the Comptroller and Auditor General of India.
  3. Consolidated Fund as per AS-21.

 

 

 

 

Section – C

  1. Compulsory Case study.                                                                        (1 x 20 = 20)

 

  • Pradeep was appointed as a Senior Accountant of A Ltd. on 1st March 2014. The Management of A Ltd., wants to know the Minority Interest and the Value of Goodwill of A Ltd. to be reported in the Consolidated Balance Sheet of A Ltd.  Mr.  Pradeep was provided with the following:

A Ltd. acquired 8,000 shares of Rs. 100 each in B Ltd., on 30th September, 2013.  Liabilities and Assets of the two companies as on 31st March 2014

Liabilities A Ltd. B Ltd. Assets A Ltd. B Ltd.
Share Capital:     Fixed Assets 15,00,000 14,47,000
30,000 Shares of Rs. 100 each 30,00,000 0 Investment in B Ltd. at cost 17,00,000 0
10,000 Shares of Rs. 100 each 0 10,00,000 Stock in hand 4,00,000 2,00,000
Capital Reserve 0 5,50,000 Loan to A Ltd. 0 20,000
General Reserve 3,00,000 50,000 Bills Receivable (including Rs. 5,000 from B Ltd.) 12,000 0
Surplus Account 3,82,000 1,80,000 Debtors 2,50,000 1,80,000
Loan from B Ltd. 21,000 0 Cash and Bank 20,000 20,000
Bills Payable (including Rs. 5,000 to A Ltd) 0 17,000      
Creditors 1,79,000 70,000      
Note: On the Balance Sheet of A Ltd.:  There is a contingent liability for bills discounted of Rs. 6,000.          
TOTAL 38,82,000 18,67,000 TOTAL 38,82,000 18,67,000

 

He was also provided with the following additional information:

  1. B Ltd., made a bonus issue on 31st March, 2014 of one share for every two shares held, reducing the Capital Reserve equivalently but the accounting effect to this has not been given in the above Balance Sheet.
  2. Interest receivable for the year (Rs. 1,000) in respect of the loan due by A Ltd to B Ltd. has not been credited in the books of B Ltd.
  3. The credit balance in Surplus Account of B Ltd., as on 1.4.2013 was 21,000.
  4. The directors decided on the date of the acquisition that the fixed assets of B Ltd. were overvalued and should be written down by Rs. 50,000. Consequential adjustments on depreciation are to be ignored.

Mr. Pradeep, after considering the above details, arrived at the following figures:

  1. Goodwill 2,46,500/-
  2. Minority Interest Rs. 2,97,800/-

The Management of the company is not satisfied with the above figures, hence wants you to calculate the same and give your opinion on the accuracy of the above figures.  It also wants you to prepare Consolidated Balance Sheet as at 31st March, 2014 showing your workings.

 

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