St. Joseph’s College of Commerce

St. Joseph’s College of Commerce Service Management And Insurance Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESER EXAMINATION – MARCH/APRIL 2016
B.COM – VI SEMESTER
C1 11 603: SERVICE MANAGEMENT AND INSURANCE
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Name the 7 P’s of Service Marketing.
  2. Explain the term ‘People Processing’. Give two examples.
  3. Define ‘Insurance’.
  4. What do you mean by ‘Service’?
  5. In Life Insurance, How do Underwriters classify the potential insured?
  6. Name any four advantages of Empowerment of Employees.
  7. Mention the problems of Service Quality Control.
  8. Bring out the days of grace privilege provided to an assured.
  9. How is Health Insurance a boon to Salaried Class?
  10. Expand IRDA. When was IRDA Act passed?
 

SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Like human life, most of the creations follow a pattern with different ups and downs. On this note, bring out the Service Life Cycle.
  12. What is Underwriting? Narrate the process of Underwriting in Non-life Insurance.
  13. Explain in detail, the classification of vehicle and the different types of Motor Insurance Policies.
  14. Evaluate the characteristics of Service.
  15. Explain the Economic and Legal principles pertaining to Life Insurance.
  16. Elucidate the functions of IRDA.
 

SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                 
  17. Due to Globalization, trade between different countries of the world is an inevitable scenario and business houses have to safeguard their interest, particularly while the goods are being transported. Water Transport being one of the prominent modes being used by large businesses; bring out the different classifications of Marine Insurance and evaluate the different types of Marine Insurance Policies.
  18. Explain the factors influencing the location of Service Premises. Also, discuss the factors that guide the look of the premises.

 

 

 
  19. Mr. Nasir is running a hotel and is unable to understand the concept of Service Quality Management. As a well wisher of Mr. Nasir, help him understand Gap Analysis in Service and the process in which Service Quality Management is normally initiated in a firm.

 
  20. Mr. Ravi is an employee of BHEL, aged about 32 years and is planning to take up a life insurance policy. As a learned person in Life Insurance and being a friend of Mr. Ravi, explain him the concept of Life Insurance and its different types.

 
  21. In a service firm, the most important aspect is to classify the customer under the right tire and nurturing them appropriately, to help the firm attain its profitability in a fruitful manner. In this regards, explain the analysis of customers and evaluate the steps in Building Customer Loyalty.
 

SECTION – D
IV) Case Study                                                                                                           (1×15=15)                                                                                          
  22.

 

 The British airways, in 1982 were one of poor quality airlines with heavy losses. There had been major redundancies in the airlines with heavy reduction in staff. Their reputation among the travelling public was poor, their planes were often late, there were frequent industrial relations problems and generally passengers found British Airways staff cold, aloof, uncaring and bureaucratic, even though professionally competent.

 

However, by 1990, the airline had been turned around and was able to report record profits. Much of this success can be attributed to the implementation of two key visionary strategies, initiated and led by Sir. Colin Marshall, CEO, who was appointed in January 1983. These visionary strategist focused on:

  1. An obsession with improving customer service.
  2. An obsession with improving British Airways approach to management.

 

Experience with another airline had shown that a passenger rating of an airline depended on thousands of ‘moments of truth’. The customer’s perception therefore, derived from a whole array of small experiences such as disinterested staff, smell toilets, sloppy food and so on. British Airways research confirmed that a customer’s view of the airline depended not solely on product, but their intuitive reactions to the ambience, environment and culture they experienced with the airline.

 

In their drive to achieve a greater number of positive ‘moments of truth’ for the customers. British Airways initiated a major training programme called ‘Putting People First’, which virtually everyone in the airline went through. It exposed the airline employees to the new thinking about customer service and stressed the critical role they had in contributing this. Colin Marshall was so committed to this approach that he attended 97 percent of the courses. The courses were followed through with the establishment of Customer First Team, whereby small groups were encouraged to contribute their ideas for improving customer service. Over 100 teams were set up and of the thousands of ideas generated; over 700 were followed through and implemented. British Airways recognized that customer care was to a degree, a reflection of the care shown by the managers towards its employees.

 

 

 

Questions:

  1. In light of the above case, bring out the points to succeed by empowering employees.

 

  1. Evaluate the advantages of empowerment of employees and bring out the different methods of rewarding employees.

 

(7.5+7.5)

 

 

 

 

St. Joseph’s College of Commerce VI Sem Operation Research Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.Com – VI Semester
 C1 11 602 :OPERATION RESEARCH
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Name any four techniques of Operation Research.
  2. Give any two merits of linear programming.
  3. What is a key element in Simplex Method?
  4. With the help of a diagram, show what is a redundant constraint?
  5. How will you solve maximization case in assignment problem?
  6. Give the procedure of tracing a closed loop.
  7. What is independent float?
  8. How do you proceed in simplex, if there is a tie for the key column?
  9. What is a dummy activity?
  10. Differentiate between CPM and PERT.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. A  BPO requires different numbers of employees on different days of the week. Union rules state each employee must work 5 consecutive days and then receive two days off. Find the minimum number of employees needed. Formulate the problem

Mon        Tue       Wed        Thur      Fri       Sat      Sun

Staff Needed           17            13           15            19         14         16       11
  12. A construction company has four large bulldozers located at four different garages. The bulldozers are to be moved to four different construction sites. The distances in miles between the bulldozers and the construction sites are given below.

Buldozer/site A B C D
1 90 75 75 80
2 35 85 55 65
3 125 95 90 105
4 45 110 95 115

How should the bulldozers be assigned to the construction sites in order to minimize the total distance traveled?
  13. Find the initial solution to the transportation problem with the help if LCM method and NWCR

  D E F G Available
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 10 400
Required 200 225 275 250  

What is unusual about the solution that is derived?

 
  14. Draw a network diagram for the project whose activities and their predecessor relationships are given below:

Activity:         A          B         C       D         E         F         G       H

Predecessor

Activity-        –           –          –         A         B          C       D,E     F,G

 
  15. What do you understand by the term duality? Solve the dual given below:

Min Z= 2X1 + 3 X2 + 4X3

Subject to

2X1 + 3X2 + 5X3  ≥ 2

3X1 + X2 + 7X2  = 3

X1 + 4X2 + 6X3 < 5

X1, X2,X3 > 0
  16. “Operation Research is a decision science which helps management to make better decisions.” Discuss.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. a. What are the different types of Models used in OR?  Explain in detail.
    b.  The products A, B and C are produced in three machine centres X, Y and Z. Each product involves operations involves on each of the machine centres. The time required for each operation for unit amount of each product is given below:

 

 

Products

                               Machine Centres
  X Y Z
A 10 7 2
B 2 3 4
C 1 2 1

There are 100, 77 and 80 hours available at machine centres X, Y and Z respectively. The profit per unit of A,B and C is Rs 12, Rs 3 and Rs 1 respectively. Formulate the LPP .                                                               (10+5)
  18. Solve by Simplex Method

Maximize    Z= 3x +4y +z

Subject to constraints,

x + 2y +3z ≤ 90

2x  +y +z ≤ 60

3x + y + 2z ≤ 80

Where x,  y,  z ≥ 0
  19. Five lathes are allotted to five operators (one for each). The following table gives weekly output figures (in pieces).

         Weekly output in lathe
OPERATOR L1 L2 L3 L4 L5
P 20 22 27 32 36
Q 19 23 29 34 40
R 23 28 35 39 34
S 21 24 31 37 42
T 24 29 31 36 41

Profit per piece is Rs 25. Solve the assignment problem and find the maximum profit per week.
  20. Solve the following transportation problem in which cell entries represent unit costs

  D1 D2 D3 AVAILABLE
Q1 2 7 4 5
Q2 3 3 1 8
Q3 5 4 7 7
Q4 1 6 2 14
REQ 7 9 18 34

Apply Modi Method to test optimality and find the optimal solution.

 
  21. An engineering project has the following activities, whose time estimates are listed below:

Activity               Estimated duration(in months)
  Optimistic Most Likely Pessimistic
1-2 2 2 14
1-3 2 8 14
1-4 4 4 16
2-5 2 2 2
3-5 4 10 28
4-6 4 10 16
5-6 6 12 30

1.      Draw the project network and find critical path.

2.      Find expected duration and variance for each activity.

3.      Calculate the variance and standard deviation of the project length.

4.      What is the probability that the project will be completed at least eight months earlier than the expected time?

5.      If the project due date is 38 months, what is the probability of not meeting the due date?

 
SECTION – D
IV) Case Study                                                                                                              (1×15=15)                                                                                           
  22. A farmer is engaged in breeding pigs. The pigs are fed on various products grown on the farm. Because of the need to ensure nutrient constituents, it is necessary to buy additional one or two products which we shall call A and B. The nutrient constituents (vitamins and proteins) in each of the products are given below:

Nutrient constituents Nutrient in the product Minimum requirement of nutrient constituents
  A B  
X 36 6 108
Y 3 12 36
Z 20 10 100

Product A costs Rs 20 per unit and Product B costs Rs 40 per unit. Determine how much of products A and B must be purchased so as to provide the pigs nutrients not less than the minimum required, at the lowest possible cost. Solve graphically.

 

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

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESER EXAMINATION – MARCH/APRIL 2016
B.COM – VI SEMESTER
C1 11 601: INCOME TAX – II
Duration: 3 Hours                                                                                        Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                   (10×2=20)
  1. Explain the term Block of Assets.
  2. How to treat bad debts recovered but disallowed earlier?
  3. Define Capital Asset as per Income tax Act of 1961.
  4. What do you mean by Indexed cost of acquisition and Indexed cost of improvement?
  5. State the Standard deduction for Family Pension.
  6. What is Casual Income? What is the rate of TDS for casual incomes?
  7. Explain provisions relating to Deduction u/s 80TTA.
  8. Compare the provisions of the sections 80 QQB & 80 RRB.
  9. Write a note on the different types of Assessments.
  10. Write a note on the powers of the CBDT.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                          (4×5=20)
  11. Written Down Value (W.D.V) of the block having two machines namely X and Y as on 1.4.2014 is Rs. 6,00,000. Machine Z was acquired on 5.11.2014 for Rs. 3,00,000 and put to use on the same date. Machine Z is sold on 28.3.2015 for Rs. 4,00,000.

(a)      Compute the depreciation allowable for the assessment year 2015-16.

(b)      What will be the amount of depreciation allowed, if machine ‘X’ is sold instead of machine ‘Z’.
  12. An analysis of the profit and loss account and the balance sheet of X as at 31.3.2015 reveal that the following expenses which were due, were though debited to the profit and loss account but have been paid after 31.3.2015.  What will be the tax treatment of the expenses?

1. Sales tax 50,000 20,000 paid on 14.7.2015

30,000 paid on 1.10.2015
2. Excise-duty 1,20,000 40,000 paid on 14.7.2015

40000 paid on 1.10.2015

40,000 paid on 1.11.2015
  13. Dinesh purchased jewellery worth Rs. 80,000 during the year 1984-85. During the year 1990-91, he further purchased jewellery worth Rs. 90,000. All the jewellery was sold by him on 15.5.2014. The jewellery purchased in 1984-85 was sold for Rs. 7,90,000. He purchased a plot of land for Rs. 3,55,000 on 4.1.2015 for construction of residential house. On 15.6.2015 he deposited Rs. 5,00,000 in the Capital Gains Accounts Scheme and further sum of Rs.2,00,000 as on 15.11.2015. He owns only one residential house as on 15.5.2014.

Compute the capital gains for the assessment year 2015-16.
  14. X(42 years ) gives the following information for the previous year 2014-15:

(a)   On 1.12.2014, he gets gift of House A from his friend B (stamp duty value is determined at Rs. 6,00,000)

(b)   On 3.12.2014, he gets gift of House B from C (who is father-in-law of his elder brother) (Stamp duty value is Rs. 40,000, however, current market value is Rs. 65,000).

(c)    On 7.12.2014, X purchases a second hand car for Rs. 70,000from D (market value is however Rs. 3,00,000)

(d)  On 14-12-2014, X purchases a work of art for Rs. 5,00,000 from E (FMV is 5,30,000).

(e)   On 20-12-2014, X purchases Jewellery for Rs. 7,00,000 from F (FMV is Rs. 7,25,000). F is not a registered Dealer.

Write the tax treatment for the above mentioned information.
  15. A submits the following information regarding his income for the previous year 2014-15.

Salary (Computed) 4,15,000
Income from Rent (computed) 48,000
Winnings from lottery (Gross) 15,000
He makes the following deposits/payments during the year:

Contribution towards PPF

 1,10,000
Premium paid in cash on mediclaim policy for his dependent father 8,000
Purchase of listed equity shares of notified company as new retail investor 40,000
Amount paid in cash for preventive health check of himself and spouse 6,000

He has a son being a person with disability, dependent on him, for whom he incurs expenses for his medical treatment and rehabilitation. He also deposits a sum of Rs. 25,000 for the benefit of his son under a scheme framed by the UTI for such a purpose.

Compute his total income and tax liability for the assessment year 2015-16.
  16. From the following particulars of Pankaj from the previous year ended 31st March 2015, compute the income under the head “Income from Other Sources”:

  `
Directors Fee from a company 10,000
Interest on bank deposits 3,000
Income from undisclosed source 12,000
Winnings from lotteries (net) conducted on 25.12.2014 35,000
Royalty on a book written by him 9,000
Lectures in seminars 5,000
Interest on loan given to a relative 7,000
Interest on debentures of a company (listed in a recognized stock exchange) net of taxes paid on 01.01.2015 7,200
Interest on Post Office Savings Bank Account 500
Interest on Government Securities 2,200
Interest on Monthly Income Scheme of Post Office 33,000

He paid Rs.1,000 for typing the manuscript of the book written by him.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                      (3×15=45)                                                                                                
  17. Sri Ram Gopal is the owner of a business. Following is his P/L account for the year ended on 31.3.2015:

Establishment charges 5,110 Gross profit 50,870
Rent rates & taxes 2,900 Interest on Government securities (gross) 5,350
Sundry expenses 7,050 Rent form property 5,400
Household expenses 1,880    
Provision for bad debts 1,200    
Loss of sale on motor car (used for private purpose) 1,800    
Insurance premium (including life insurance for Rs. 1,790) 2,880    
Interest on bank loan 1,380    
Provision for depreciation 6,400    
Net profit 31,020    
  61,620   61,620

Additional Information:

(1)   Bad debts written off during the year Rs. 650

(2)   Admissible depreciation as per income tax rules Rs. 1,600

(3)   The Assessee is running his business in a rented property, half of which is used by him for his own residence. Rent of Rs. 2,400 in respect of entire house is included in rent, rates and taxes. The balance of Rs. 500 is on account of municipal tax paid for property given on rent.

Compute the Business Income  of Shri Ram Gopal for the assessment year 2015-16.
  18. A had the following assets which were sold/compulsorily acquired during the previous year.

Particulars Date

Of Acquisition

 Mode

Of

Acquisition

 Date of sale/

Compulsory acquisition

 Sale price/ compensation Cost of acquisition by assessee or previous owner
Gold 1981-82 Self 31.10.2014 12,00,000 1,00,000
Urban agricultural land 1986-87 Self 15.11.2014 17,80,000 2,00,000
Rural agricultural land 1978-79 Gift from father on 1.5.1982 15.12.2014 4,00,000 50,000
Motor car for personal use 1990-91 Self 15.1.2015 1,50,000 80,000
Land and building forming part of Industrial undertaking 15.10.1995 self 15.2.2015

(compulsorily

Acquired)

 6,00,000 4,00,000

(WDV as on 1.4.2014)

A purchased a residential house property on 20.2.2014 by investing Rs. 5,00,000. He purchased an agricultural land on 13.4.2015 for Rs. 1,40,000. He also purchased building for Rs. 1,50,000 on 31.7.2015 to be used for industrial undertaking.  Compute the Income from capital Gain.

 
  19. The following incomes are received by Mr. Mohan during financial year:

Director’s fees 2,000
Income from agricultural land in Pakistan 5,000
Ground rent for land in Pathankot 10,000
Interest on Postal savings bank account 100
Interest on deposits with Industrial Finance Corporations of India 500
Dividend form a foreign company 700
Rent from subletting a house 26,250

 
Rent payable  by Mr. Mohan for the Sub-Let house 12,000
Other expenses on Sub-let house 1,000
Winnings from Horse race (Gross) 12,300
Interest on securities (Gross) 4,000

You are required to calculate income from other sources of Mr. Mohan for the assessment year 2015-16.
  20. Find the net income  in the following cases for the assessment year 2015-16:

  Mrs. X (Rs.) Mrs. Y (Rs.)
Business Income 24,75,000 –
Speculative business income form dealing in equity shares (securities transaction tax of Rs. 1,874 deducted) – 24,75,000
Interest on company deposit 1,00,000 1,00,000
Contribution towards public provident fund 90,000 90,000
Life insurance premium (sum assured: Rs. 6,00,000) (policy taken in June 2014 70,000 70,000
Amount invested in debentures of a notified infrastructure company 6,000 6,000
Donation to a notified public charitable institution 18,000 18,000
Rent for residential house paid at Delhi 2,39,000 2,39,000
Mediclaim insurance premium 30,000 30,000
Age during 2014-15 59 years 50 years
  21. X (32 years), a part-time college lecturer at Bombay, furnishes the following particulars for the assessment year 2015-16:

Rs.

Computed Salary 5,37,600
Examinership remuneration 84,000
Royalty on books for university students 1,92,000
Income from house property 2,10,000
Long term capital gain 2,15,000
Short term capital gain 1,10,000
Interest on government securities 48,000
Bank interest 20,000
Income from tuitions 1,16,000
Contribution of X to Statutory provident fund 46,000
Contribution to public provident fund 41,000
Expenditure on mediclaim insurance premium of dependent grandmother who is resident (age: 67 years) 26,000
Donation to government for the purpose of promoting family planning 1,24,000

 

Determine the net income and tax liability for the assessment year 2015-16
 

  SECTION – D
IV) Case Study                                                                                                             (1×15=15)                                                                                          
  22. From the following Receipts & Payments A/c for Dr. I a medical practitioner, ascertain his taxable income from profession.

 

 

Particulars Rs. Particulars Rs.
To Balance b/d 58,500 By Cost of Medicines 2,20,000
To Loan from Bank 1,00,000 By General Expenses 4,500
To Sale of Medicines 2,65,000 By Motor Car Expenses 60,000
To Consultation Fees 1,60,000 By Salary 12,000
To Visiting Fees 30,000 By Rent of Dispensary 24,000
To Interest on Govt. Securities 36,000 By Telephone & Cell Phone Expenses 5,000
To Rent from House property 80,000 By Household Expenses 16,000
To Gift from Father-in-law 50,000 By Life Insurance Premium 25,000
To Gift from patients 20,000 By Interest on loan 2,000
    By Car Insurance Premium 7,000
    By House property Insurance Premium 5,000
    By Municipal Tax on House property 8,000
    By Travelling Expenses 10,000
    By Charity 1,000
    By Books purchased 25,000
    By Repayment of Housing Loan 88,600
    By Fixed Deposit of SBI 2,50,000
    By Balance c/d 36,400
  7,99,500   7,99,500

Additional information:

a.      ½  of Motor Car expenses are in respect of personal use.

b.      Consultation fees includes a receipt of Rs.60,000 as advance for attending a medical camp in April 2014.

c.       WDV of Motor Car as on 1-04-2014 was Rs.2,50,000 and the rate of depreciation is 15%.

d.      Traveling expenses is not admissible to the extent of 30%

e.       Dr. I is eligible to claim depreciation on surgical equipments and furniture to the extent of Rs.12,500.

f.        Closing stock of medicines Rs.40,000

g.      Books purchased are not annual publications and are eligible for 60% depreciation.

 

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St. Joseph’s College of Commerce VI Sem Corporate Knowledge Integration Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESER EXAMINATION – MARCH/APRIL 2016
B.COM – VI SEMESTER
 c111604 : CORPORATE KNOWLEDGE INTEGRATION
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer any five questions.  Question No. 1 is compulsory. Each carries 20 marks.

                                                                                                                              (5×20=100)                                                                                                                            
  1. Summer started very early in Bangalore in the month of March 2016. Early rain was a quick relief to a Bangalurian. However, I am in deep trouble as I had constructed three story apartments two years back with a single bore well. I had spent Rs. 3,00,000 for the bore well having a depth of 600 feet.  Half tank of water is insufficient for the entire apartment. One of my friends has advised me to drill the existing bore well for a further depth of 500 feet which will cost me further Rs.2,50,000.  Another friend suggested to drill another bore well for a depth of 900 feet which will cost Rs. 3,00,000. My neighbour drilled a bore well just one month back and was forced to close down due to mud sliding.  In case of mud sliding, cementing of mud sliding is possible by spending additionally Rs. 1,00,000.

On 24th March 2016, Kannan Borewell arrived, drilled 600 feet. I had paid advance of Rs. 1,90,000 for 600 feet. There was 2 inch water which is more than sufficient for the apartments. The existing driller can not go beyond 600 feet, therefore Kannan Borewell started removing the driller one by one. While removing the last leg of 100 feet, the driller was stuck due to mud sliding. They  panicked and tried for two days to remove  it  but could not do so. Kannan Borewell went off without their driller.

I tried to call them again and again over a phone and spoke to the general manager about the incidents. Finally he had agreed to drill another borewell upto 600 feet on 4th April 2016. I have agreed to spend additionally upto 600 feet Rs. 50,000 more. This time I have decided to cement the mud sliding from the beginning which will cost me additionally Rs. 1,00,000.

Required with reason(s):

i)                   What costs are relevant before 24th March 2016 for decision making?

ii)                 Identify the costs that are irrelevant before 24th march 2016.

iii)              Identify costs that are relevant  and irrelevant on 24th march 2016 before drilling and after drilling the bore well.

iv)               Identify costs that are relevant and irrelevant on 4th April 2016.

 
  2. Progen BPO has a capacity to process 50,000 accounts per month because of liquidation of one of the European clients the company has excess capacity. For the next quarter current monthly accounts processes is expected to be 35,000 accounts at a selling price of 4 pounds per account. The expected cost and revenues for the next month at an activity level of 35,000 accounts are as follows

Particulars Pounds Pounds per accounts
Direct labour 42,000 1.2
Variable processing overheads 35,000 1.0
Processing non variable overheads 28,000 0.8
Marketing costs 10,500 0.3
Total costs 1,15,500 3.3
Sales (Collection) 1,40,000 4.0
Profit 24,500 0.7

 

a) Another European client has asked his 3,000 accounts to be processed every month for 3 months at a price of 2.3 pounds per account. Do you advice the company to go for this proposal?

b) The existing labour force is not reduced but as per labour agreements minimum 3 months notice has to be given. The company feels that the jerk is a temporary phenomenon. Do you advice the company to go for 2 pounds?

c)  If upsurge is going to be permanent the future sales will be 35,000 accounts for next one year. How much would be the price advisable to accept this offer?

d) If the demand will remain for 35,000 accounts for the next one year and the permanent employees will be sent out after 3 months, What would be the best price to accept?

e) If the labourers are contract labourers do you accept to process at 2 pounds per account?

 
  3. Platinum  airways is planning to begin a new fleet of Domestic flights. The following information with regard to its proposed operations is provided.

PARICULARS BUSINESS CLASS (M) ECONOMY CLASS

(M)
Revenues 8,18,40,000 53,61,76,000
Total available seats 6200 72850
Average utilisation rate 60% 80%
Average variable cost per seat 14,960 4,968
Fixed costs 22,53,04,576
Depreciation 96, 81,056
Total Investment 34, 32,37,440

 

They require you to estimate the following for the Co.

a)      The Breakeven point in terms of seats

b)     The Cash Break even in terms of seats

c)      The Break Even seats to target a post tax return of 6% on investments if  tax rate is 40%.
  4. A cement manufacturer has provided you with the details of the two grades of cement manufactured and sold for a given period

(in Rs)

Particulars Cement Grade 53 Cement Grade 43
Sales amount

Sales quantity (kg)

Variable cost

Fixed cost

Product mix

 1,23,000

1500

 

93,000

24960

60%

 1,63,800

2100

 

1,17,600

 

40%

 

·         Estimate their respective break even quantity

·         The margin of safety in units and value

·         The revised break even if the overall profit after tax estimated by the company is 20%

 
  5. Mr. D had completed 12th standard, securing 200 marks in Accountancy and commerce. Due to poor economic conditions in the family he could not go for higher studies but did a diploma in printing and designing. With high level of inclination to further studies he joined BBM by correspondence and completed it successfully. With high level of ambition he started a small business with a simple capital by supplying furniture worth Rs. 25,000, Computer Rs. 30,000, and paid advance for rented building Rs. 50,000 in Coimbatore. Under self employment scheme he borrowed Rs. 50,000 from the bank for working capital @14% per annum. Following are the transactions on a day to day basis.

Day 1 Purchased stationary Rs. 4,000
Day 2 Purchased software Rs. 2,000
Day 3 Received an order for Rs. 10,000. Cost to fulfill the order is Rs. 6,000
Day 4 Printed Materials and supplied the order received on day 3
Day 5 Received cash for the supply of the order received on day 3
Day 6 Purchased ink for printing Rs. 2,000
Day 7 Rest day

 

Required: assume interest occurs once in a year. Prepare a daily balance sheet incorporating changes in the balance sheet.

 
  6. A company is considering two alternative proposals for conveyance facilities for its sales personnel who have to do considerable travelling; every sales person approximately  travels 20,000 kilometres every year.

The proposals are as follows:

i)             Purchase and maintain its own fleet of cars. The Purchase  cost of a car is Rs. 4,00,000. Each sales personnel will be provided one car.

ii)                                                                                                        Allow the executive use his own car and reimburse expenses at the rate of Rs. 9.7 per kilometre and also the company bears insurance cost.

The following further details are available:

Diesel Rs. 4.5 per kilometre.,

Repairs and maintenance Rs. 1 per kilometre.,

Tyre Rs. 0.80 per kilometre.,

Insurance Rs. 6,000 per car per annum

Taxes Rs. 4,000 per car per annum

Life of the car: 5 years with annual mileage of 20,000 kilometres

Resale value Rs. 80,000 at the end of 5th year. Depreciation  is as per straight line method.

Work out the relative costs of two proposals and rank them.

What are the other factors that have to be considered while deciding the alternatives?

 

 

 

 

 

 
  7. Bombay steel manufactures four products, namely A,B,C and D, using the same plant and process. The following information relates to a production period:

Product Volume Material cost per unit (Rs.) Direct labour per unit Machine time per unit Labour cost per unit
A 500 5 ½ hour ¼ hour 3
B 5,000 5 ½ hour ¼ hour 3
C 600 16 2 hours 1 hour 12
D 7,000 17 1 ½ hours 1 ½ hours 9

Total production overhead recovered by the cost accounting system is analysed under the following headings:                                                                                                                                                       (Rs)

Factory overheads applicable to machine oriented activity 37,424
Set up costs are 4,355
Cost of ordering materials 1,920
Handling materials 7,580
Administration for spare parts 8,600

These overhead costs are absorbed by products on a machine hour rate Rs. 4.80 per hour giving an overhead cost per product of:

A=Rs1.20, B=Rs.1.20, C=Rs.4.80, D=Rs.7.20

However, investigation into the production overhead activities for the period reveals the following totals:

Product Number of set-ups Number of materials orders Number of times material was handled Number of spare parts
A 1 1 2 2
B 6 4 10 5
C 2 1 3 1
D 8 4 12 4

You are required:

(i)                 To compute an overhead cost per product using Activity based costing, tracing overheads to production units by means of cost drivers

(ii)              To comment briefly on the differences disclosed between overheads traced by the present system and those traced by Activity based costing.

 
  8. An agriculturist has 480 hectares of land on which he grows potatoes, peas, Tomatoes and carrots.  Out of the total area of land 340 hectares are suitable for all four vegetables but the remaining 140 hectares of land are suitable only for growing peas and carrots.  Labour for all kinds of farm works is available in plenty.

The market requirement is that all the four types of vegetables must be produced with the minimum of 5000 boxes of any one variety.  The farmer has decided that the area devoted to any one crop should be in terms of complete hectares and not in fractions of a hectare.  The only other limitations is that not more than 1, 13,750 boxes of any one vegetables should be produced.

The relevant data concerning production, market prices and costs are as under:

Particulars Potatoes Peas Carrots Tomatoes
Annual yield:

Boxes per hectare

  

350

  

100

  

70

  

180
Cost:

Direct Material per hectare

 `

952

 `

432

 `

384

 `

624
Direct Labour:

Growing per hectare

  

1792

  

1216

  

744

  

1056
Harvesting and packing per box 7.20 6.56 8.80 10.40
Transport per box 10.4 10.40 8.0 19.20
Market price per box 30.76 31.76 36.80 44.55

It is possible to make the land presently suitable for peas and carrots, viable for growing potatoes and tomatoes if certain land development work is undertaken.  This work will involve a capital expenditure of  `6,000 per hectare which a bank is prepared to finance at the rate of 15% per annum.  If such improvement is undertaken, harvesting cost of the entire crop of tomatoes will decrease on an average by  `2.60 per box.

Required:

i)                   Calculate the area to be cultivated with respect to each crop within the constraints and profits before land development work is undertaken.

ii)                 After development of land, find the acres of land for each product and also find maximum profits.

 

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St. Joseph’s College of Commerce VI Sem Tax Planning For Business Decisions (Finance Elective P-Iv) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION –MARCH/APRIL 2016
B.B.M. – VI SEMESTER
FIN 606:TAX PLANNING FOR BUSINESS DECISIONS (FINANCE ELECTIVE P-IV)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. What is tax planning?  How is it different from tax avoidance?
  2. Explain the conditions to be satisfied in order to avail deduction under section 10A
  3. How is inter-corporate dividend taxed in the hands of the declaring company.
  4. Explain the deductions in relation to Sec. 35D (Preliminary expenses)
  5. Elucidate on the provisions relating to Sec. 36(1)(ii) with respect to any sum paid to the employee as bonus or commission for services rendered.
  6. Explain the provisions relating to Sec. 36 (1)(ix) which highlights on the expenditure by a company for the purpose of promoting family planning amongst its employees.
  7. Write the provisions relating to Sec. 40A (2) with regard to Payments made to relatives.
  8. What is the eligible expenditure as per section 35ABB in respect of License fee for Telecommunication services?
  9. What is presumptive taxation?  Explain the need for the same.
  10. Write a note on provisions relating to section 10(23FB)- Income of Venture capital fund.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Write a note on provisions relation to Sec 80 JJA
  12. Explain provisions relating to Sec.  40(a) – Salary Payable outside India
  13. X ltd., is an Indian closely held company in which Mr.Param is a shareholder, who is holding 17% of the equity shares. The accumulated profits of the company as on 31-3-2014 amounted to Rs. 6,00,000. The company has given a loan of Rs. 1,00,000 to Param by an account payee cheque on 15-9-2014. The company does not have the business of advancing loans. Param repaid the loan to the company by an account payee cheque on 25-3-2015.

Discuss the tax treatment of the above loan and its repayment in the hands of Param for assessment year 2015-16.
  14. Mr. A owns commercial vehicles and uses them for carriage of goods. He provides the following information:

(A) On 1-4-2014, he was owner of 8 vehicles out of which 2 were heavy goods vehicles and 6 were other than heavy goods vehicles.

(B)  On 15th October 2014 he sold 2 other than heavy goods vehicles and purchased one new heavy goods vehicle on 20-10-2014

(C)  He purchased 2 new other than heavy goods vehicles on 10-1-2015

(D) Due to strike he could not use any of the vehicles for full month of February 2015.

Find out his income for the assessment year 2015-16 if he opts for scheme u/s 44AE.
  15. X and Co, a firm, is engaged in the business of paper trading (turnover of 2014-15 being Rs. 57,80,000) it wants to claim the following deductions-

Salary and interest to partners (as permitted by Sec. 40(b) 60,000
Salary to employees 4,90,000
Depreciation 2,70,000
Cost of material used 45,90,000
Other expenses 3,45,000
Total 57,55,000
Net profit (Rs. 57,80,000 minus Rs. 57,55,000) 25,000

Determine the net income of X & Co. For the assessment year 2015-16 assuming that:

(a) Long term capital gain  is Rs. 40,000 and

(b) the firm is eligible for a deduction of Rs. 5,000 under Sec. 80G.
  16. Write Write   a note on provisions relating to 801B with special reference to setting up of Business of an Industrial undertaking.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Fiesta Ltd., established its undertaking for manufacturing of computer software in STP. The company provides the following particulars of its 5th year of operations ended on 31-3-2014.

Domestic sales 25,00,000
Export sales 75,00,000
Profit of the business 10,50,000

Out of the total export sales, the company realised Rs. 25,00,000 in India and brought into India Rs. 47,00,000 within stipulated period. Due to insolvency of a foreign customer, the company suffered a loss due to bad debt amounting to Rs. 3,00,000. The Plant and Machinery used in the business had been depreciated @15% on straight line basis and depreciation of Rs. 3,00,000 was charged in profits and loss account. The machine was purchased on August 2010.

Calculate:

(a) Deduction u/s 10A and

(b) Taxable income of the company
  18. XYZ Ltd., a paper manufacturing concern, purchases a machine on March 1, 2002 for Rs. 6,10,000 for its Laboratory with a view to improving the quality of art paper manufactured by the company.

a.      What will be the amount of deduction under section 35 on account of capital expenditure of Rs. 6,10,000 for the assessment year 2002-03

b.      If the research activity for which the aforesaid machine is purchased ceases in 2013 and the machinery is brought into business proper on November 1, 2013 (Market value of the machine Rs. 2,30,000); depreciation is admissible at a rate of 15%; depreciated value of the ,relevant block of assets on April 1, 2013 is Rs., 14,07,860, the scientific research machine is sold for Rs. 1,90,000 on April, 4, 2014, what will be the amount of depreciation and amount of chargeable profit under section 41(3).

c.       If the research activity for which the machine was purchased ceases on November 1, 2013 (market value of the machine: Rs. 2,30,000) and the machine is sold on April 4, 2014 without using it for another purpose, sale price being Rs. 1,90,000 or Rs. 5,40,000 or Rs. 8,10,000 or Rs. 15,00,000.
  19. X Ltd., a company which provides telecom services, acquires telecom license on April 5, 2014 for a period of 15 years which ends on March 31,2029 (license fees being Rs. 15 Lakh paid on May 6/5/2014.

The license is transferred by X Ltd. On December 20, 2016 for;

(a) 6, 92,000

(b) 13, 70,000 or

(c) Rs. 15, 60,000.

Compute the amount chargeable to tax.
  20. Chirag Ltd., (incorporated in 1999-2000) requires Rs. 50,00,000 to finance an expansion project. The expected rate of return before interest and tax is 30% of the investment in project. The debt can be raised by issuing 11% debentures. The company has following 3 options:

 

 

  OPTION I OPTION II OPTION III
Equity share capital 50,0,000 35,00,000 15,00,000
11% Debentures – 15,00,000 35,00,000

The tax rate applicable to company is 30% plus surcharge 5% (if total income > 1 Crore) and 3% education cess (2% + 1% SHEC)

The company has decided to distribute the entire earnings as dividend. The rate of corporate dividend tax is 15% + 5% surcharge + 3% education cess (2% +1% SHEC).

Suggest the best options out of the three options.
  21. SABU Ltd., wants to acquire an automatic machine costing Rs. 12,00,000 for its manufacturing division and is considering the following two options:-

Option 1: to buy the machine by taking a loan of Rs. 12 Lakhs repayable in 6 instalments of Rs. 2,00,000 each together with interest @ 15% per annum.

Option II: to take it on lease rent of Rs. 3,00,000 payable at each year end. The lessor will charge 1% of cost of machine as file charges payable along with the lease rent of 1st year

Other information:

(1)   Tax rate 30%

(2)   After-tax cost of capital 14%

(3)   Rate of depreciation 25% on WDV basis

(4)   Present value for Re. 1 @ 14%

At the end of year 1 Year 2 Year 3 Year 4 Year 5 Year 6
.877 .770 .675 .592 .519 .456

Suggest which option company should accept.
SECTION – D
IV) Case Study                                                                                                              (1×15=15)                                                                                          
  22.   XYZ   Ltd. Is considering the purchase of a new machine costing Rs.60,000 with an expected life of 5years with salvage value of Rs.3000 in replacement of an old machine purchased 3years ago for Rs.30,000 with expected life of 8years .The present market value of this old machine is Rs.35,000. Because of the purchase of new machinery, the annual profits before depreciation are expected to increase by Rs.12,000. The relevant depreciation rate for the machine is 15 percent on written down value basis and the tax rate is 32.445 percent . Assume the after Tax cost of capital (discounting rate) to be 14 percent and additional deprecation is not available .Advise the company suitably.

 

 

 

 

 

 

St. Joseph’s College of Commerce VI Sem International Human Resource Management (Elective P – Iv – Hr) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.B.M. – VI SEMESTER
HRM 606: INTERNATIONAL HUMAN RESOURCE MANAGEMENT

(ELECTIVE P – IV – HR)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Define IHRM.
  2. What do you mean by Expatriate Training?
  3. Mention two objectives of International Compensation.
  4. What do you mean by Repatriation?
  5. Mention the approaches to International Relations.
  6. What is Global Talent Search?
  7. Give the meaning of Training in an Organisation.
  8. What is cultural Shock?
  9. Mention any two issues involved in International Performance Management.
  10. Define PCN with an example.
 

SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. International Human Resource Management is different from Domestic Human Resource Management in various dimensions. Explain.
  12. State the different types of International Human Resources.
  13. State the areas to be appraised for Host Country National.
  14. Explain Repatriation Process.
  15. State the influence of Trade Unions on HR Practices of MNCs.
  16. Explain the recent trends in International Staffing.
 

SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Explain the various areas of Global Training and Development.
  18. What are the various HR Practices in the United States?
  19. Write the Objectives of MNC’s Compensation Management.
  20. Explain the various sources of International Recruitment.
  21. What are the various factors influencing International Industrial Relations.
 

SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                          
  22. When a major international software developer needed to produce a new product quickly, the project manager assembled a team of employees from India and the United States.  From the start, the team members could not agree on a delivery date for the product.  The Americans thought the work could be done in two to three weeks; the Indians predicted it would take two to three months.  As time went on, the Indian team members proved reluctant to report setbacks in the production process, which the American team members would find out only when work was due to be passed to them.  Such conflicts,

 

of course, may affect any team, but in this case, they arose from cultural differences.  As tensions mounted, conflict over delivery dates and feedback became personal, disrupting team members’ communication about even mundane (routine) issue.  The project manager decided he had to intervene – with the result that both the American and the Indian team members came to rely on him for direction regarding minute operational details that the team should have been able to handle itself.  The manager became so bogged down by issues that the project careened hopelessly off even the most pessimistic schedule – and the team never learned to work together effectively.

 

Questions:

 

  1.  What mistakes did the project manager commit while constituting the team?
  2. Which of the strategies do you recommend to bring the team back on track?
  3. What are the cultural aspects of US making it different from Indians?

 

 

 

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St. Joseph’s College of Commerce VI Sem Creative Advertisement And Media Management (Marketing Elective P –Iv) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.B.M. – VI SEMESTER
mkt505 : CREATIVE ADVERTISEMENT AND MEDIA MANAGEMENT (MARKETING ELECTIVE P –IV)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. ‘CID’ in Sony TV has received very high TRP. What do you mean by TRP?
  2. What is meant by flighting?
  3. What is the role of Ad Campaign in Advertising?
  4. What copy elements are involved in a Radio commercial?
  5. Mention two examples of death appeals.
  6. What do you mean by Bandwagon advertisement?
  7. Expand USP and its contribution to the manufacturers.
  8. What is competitive parity method used and for what?
  9. What is it Puffery? How important is it in advertisements?
  10. Mention two differences between small and large advertising agencies.
 

SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Mr. Ramachander, the marketing manager of Colour flow cosmetics wants to approach an outside advertising agency for the new series of woman’s lip sticks. Explain the different types of advertisement agencies that Mr. Ramachander can approach.
  12. Is emotional appeal a very good medium to influence customers? Explain different types of appeals with their pros and cons.
  13. Briefly explain social and ethical issues in Advertising.
  14. Expand and explain in detail the various steps in DAGMAR approach.
  15. Write a short note on the Evolution of advertising
  16. Black silk, hair oil has been doing well in the market. As a marketing head, to keep pace with the changes in order to survive and prosper, What are the various advertising strategies you need to look into to place the product again and again in minds of customers?
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. “Speed track” Private limited is already an established company in the world of Office bags. They are planning to launch a new series of College bags for the youngsters, as the marketing head of the company what different types of advertisement you would suggest to capture the youth market in India.

 
  18. Explain in detail the various steps involved in the advertising campaign plan.
  19. What is Ad Copy? How to write an Ad Copy? What are the elements in a Ad Copy? Explain with suitable examples.
  20. Explain the “appeal factor” of advertisement.  Also explain the demerits of advertisements.
  21. Define Media Planning? Explain media planning, selection and scheduling strategies to tap the target customers.
SECTION – D
IV) Case Study                                                                                                              (1×15=15)                                                                                           
  22. The following print ad is aimed at Indian consumers . Write your assesement of each  of them justifying your assement as good or bad commenting on its creativity, strategy and recommend an alternative advertising media for this.

 

(8 marks)

 

 

(7 marks)

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St. Joseph’s College of Commerce VI Sem Accounts Of Other Companies(Elective P-Iv-Accounts) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH /APRIL 2016
B.Com  – VI Semester
 ACC 606: ACCOUNTS OF OTHER COMPANIES(ELECTIVE P-IV-ACCOUNTS)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. The life assurance fund of a company stood at Rs 5, 25,000 on 31/3/2015 and the valuation of its net liability in respect of policies on that date revealed a figure of Rs 4, 86,000.How much would the policy holders stand to get by way of bonus?
  2. Distinguish between ‘cash bonus’ and ‘reversionary bonus’.
  3. State the purpose of creating reserve for unexpired risk. State its accounting treatment?
  4. Differentiate between annuities and consideration for annuities granted?
  5. Calculate rent to be charged per day per room from the following information for a three Star Hotel at Delhi, if occupancy rate is a) 100% b) 80%.

a)      Number of rooms available for occupancy = 50

b)     Estimated total cost for April, 2008 = Rs. 12,00,000

c)      Return expected = 50% on cost.
  6. Explain the plans available to classify resident guests of a hotel.
  7. What do you mean by a ‘statutory corporation’? How does it differ from a joint stock company?
  8. In the context of accounts of electricity companies, what is ‘reasonable return’?
  9. What is meant by ‘night audit’? Explain the job of a night auditor.
  10. What is double account system?  State the special features of Double account system.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Calculate the net claim to be shown in Revenue Account of Insurance Company;

Claims paid during the year ended 31-3-2015 5,60,000
Claims outstanding on 1-4-2014 52,000
Claims outstanding on 31-3-2015 92,000
Claims covered under reinsurance 25,000
  12. The Life Fund of a Life Insurance Company on 31.03.2015 showed a balance of Rs. 54,00,000. However, the following items were not taken into account while preparing the Revenue A/c for 2014-15. Ascertain the correct life fund balance.

a) Interest and dividends accrued on investments                       Rs. 20,000

b) Income Tax deducted at source on the above                           Rs.   6,000

c) Reinsurance claims recoverable                                                   Rs.   7,000

d) Commission due on reinsurance premium paid                      Rs. 10,000

e) Bonus in reduction of premiums                                                 Rs.   3,000

 

 
  13. The life fund of a life Assurance Company was Rs.86,48,000 as on 31-3-2015. The interim bonus paid during the inter-valuation period was Rs.148000. The periodical Actuarial valuation determined the net liability at Rs. 74,25,000. Surplus brought from the previous valuation was Rs.8,50,000. The directors of the company proposed to carry forward Rs.9,31,000 and to divide the balance between the shareholders and the policy holders in the ratio of 1:10.

Show a) The valuation balance sheet b) The net profit for the valuation period and c) The distribution of the surplus.
  14. Following balances relate to an electricity company and pertain to its accounts for the year ended 31st March, 2015:

Particulars Rs. in Lakhs
Share capital 100
Reserve fund (invested in 5% Government Securities at par) 60
Contingencies Reserve –( invested in 6% State Government loans) 20
Loan from State Electricity Board 30
11% Debentures 8
Development Reserve 10
Fixed Assets 200
Depreciation Reserve on fixed assets 80
Consumers’ Deposits 75
Amounts contributed by consumers towards fixed assets 2
Intangible assets 5
Tariffs and Divided control reserve 6
Current assets – Monthly average 20

The company earned a post tax (clear) profit of Rs.9 lakhs. Calculate Capital base under the provisions of Electricity Act.
  15. A five star hotel in Madras has 320 lettable rooms on a particular day. 240 rooms are occupied by 300 guests. Calculate the double occupancy rate.
  16. Define the duties and responsibilities of Comptroller & Auditor General of India.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                 
  17. From the following balances extracted from the books of the LIC as at 31.03.2015, Prepare a Revenue A/c for the year ending 31.03.2015 in the prescribed form.

Claims by death 3,30,000 Life Assurance Fund (1.4.2014) 63,31,000
Claims by maturity 2,15,000 Premiums 20,65,000
Salaries 44,200 Bonus in reduction of premiums 1,000
Travelling Exp 1,200 Income Tax on Interest & Dividends 5,700
Directors’ fees 8,700 Agents & Canvasser’s allowance 26,500
Auditor’s Fees 1,000 Printing & Stationery 13,900
Medical fees 52,000 Postage & Telegrams 14,300
Commission 2,18,000 Receipt from sale of Stamps 2,300
Rent 2,800 Reinsurance premiums 40,950
Law Charges 200 Interest & Dividend (Gross) 2,72,000
Advertising 4,300 Policy Renewal Fees 9,600
Bank Charges 1,500 Assignment Fees 540
General Charges 2,000 Endowment Fees 690
Surrenders 47,500 Transfer Fees 1,400

 
  18. From the following Trial Balance of Bharatiya Hotel Ltd , prepare Profit & Loss account for the year ended 31/12/2015 and balance sheet as on that date:

  Debit (Rs) Credit(Rs)
Hotel buildings 37,400  
Vehicles 2280  
Furniture & fixtures 3520  
Glass, cutlery- 1/1/2015 2000  
Glass, cutlery purchased during the year 1000  
Printing & stationery 225  
Hire of Hall for seminars   3670
Room rent   18850
Entertainment cost 345  
Billiard room receipt   3845
Billiard board 10400  
Billiard room expenses 2135  
Profit on sale of beer, wine, cigars etc   1200
Arrears of room rent 1/1/2015 1125  
Honorarium 1500  
Sale of tickets for moonlight dinner   1600
Moonlight dinner expenses 1875  
Salaries to staff 2700  
Audit fee 600  
Income from beauty parlor   8500
Repairing, cleaning and washing 350  
Newspapers and magazines 180 95
Interest on bank deposits   25
Bank charges 20  
Income from laundry   225
General expenses 2995  
Stock of wine, beer, cigars, etc on 31/12/2015 300  
Sundry creditors   3135
Cash in hand 1400  
Cash at bank 1735  
Share capital   32940
  74,085 74,085

Other information:

a)Stock of stationery & printing 0n 31/12/2015- Rs 35

b) Out of the total room rent, Rs 1125 represented arrears collected and Rs 760 received in advance.

c) An amount of Rs 500 was outstanding on account of room rent.

d) Unpaid salary amounted to Rs 200

e) Depreciation to be provided as under:

i) Vehicles 10%

ii) Furniture & fixtures 15%

iii) Hotel buildings 5%

 
  19. The following balances are extracted from the books of City Light Supply Corporation as on 31-3-2015:

  Rs. Rs.
Equity shares   1,64,700
Debentures   60,000
Sundry creditors on open accounts   300
Depreciation fund   75,000
Capital Expenditure on 31-3-2014 2,85,000  
Capital Expenditure during 2014-15 18,300  
Sundry Debtors for current supplied 12,000  
Other debtors 150  
Stores in hand 1,500  
Cash in hand 1,500  
Cost of Generation of Electricity 9,000  
Cost of Distribution of Electricity 1,500  
Rent, Rates and Taxes 1,500  
Management expenses 3,600  
Depreciation 6,000  
Interest on debentures 3,000  
Interim dividend 6,000  
Sale of current   39,000
Meter rent   1,500
Balance of Net Revenue Account as on 1-4-2014   8,550
  3,49,050 3,49,050

Prepare a) Capital account b) Revenue account c) Net Revenue account and

d) General balance sheet from the above Trial Balance.
  20. Define a Government company. Explain briefly the various provisions of sections 209,210 & 211 of Company’s Act, applicable to Government Company.

 
  21. a) Following information is extracted from the books of Modern Electricity Co for the year ended 31/3/2015:

Net profit before charging debenture interest – Rs 67, 50,150

10% debentures interest paid during the year – Rs 11, 25,000

Capital base arrived at by the company – Rs 3, 10, 89,000

Reasonable return calculated by the company – Rs 40, 68,450

You are required to show the disposal of surplus of the company.

 

a)                  b) Mr. Ganpath Checks into a five star hotel on 10th Jan 2016 at 9 a.m. on American plan @ Rs. 300 per day. The hotel also levies a service tax @ 12% in addition to the room rent. Find the duration of stay and amount payable by Mr. Ganpath if he checks out at:

b)

  1. 6p.m. on 10th Jan
  2. 8a.m. on 11th Jan
  3. 4p.m. on 11th Jan
  4. 11.a.m. on 12th Jan

When the duration of day is ascertained by the hotel on

  • 24 hours or part thereof basis
  • Fixed check out time of 12 noon basis

 

 
SECTION – D
IV) Case Study – Compulsory question.                                                                     (1×15=15)                                                                                           
  22. Zaldi pay Insurance Company Limited has furnished the following information for preparation of revenue account for fire insurance business for the year ended 31.3.2015 and its profit and loss a/c for the year.

Particulars Rs. (in ‘000) Particulars Rs.( in ‘000)
Claims admitted but not paid 42,376 Bad debts. 2,500
Commission paid 50,000 Claims paid 15,000
Commission on re-insurance received 12,000 P&L Appropriation A/c 10,000
Share transfer fees 5,000 Premium received 5,52,000
Expenses of management 78,000 Less : re-insurance claims outstanding as on 1.4.2014 27,000
Reserve for unexpired risk as on 1.4.2014 2,30,000 Dividend on share capital 18,500
Additional reserve on 1.4.2014 40,000    

 

The following further information has also to be considered:

a.      Premium outstanding at the end of the year Rs. 40,000.

b.       Additional reserve at 10% of net premium to be maintained.

c.       It is the policy of the company to maintain 50% of premium towards reserves for unexpired risks.

 

 

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St. Joseph’s College of Commerce VI Sem Security Analysis And Portfolio Management (Finance Elective) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.B.M.  – VI SEMESTER
FIN 605: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

(FINANCE ELECTIVE)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. “Investment is current commitment of funds in anticipation of returns in future”. Comment.
  2. What is speculation?
  3. What is non-diversifiable risk?
  4. Define market risk.
  5. State any four ratios that are found to be strong fundamentals of company
  6. What is YTM?
  7. What is technical analysis?
  8. What is semi-strong form of efficient market hypothesis?
  9. What is CAPM?
  10. What is efficient frontier?
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Distinguish between investment and speculation.
  12. Discuss the attributes that one should consider while evaluating an investment.
  13. Following are the returns on stock ABC

Year Return on stock ABC(%)
2010 11.82
2011 12.54
2012 10.84
2013 -3.45
2014 7.46
2015 10.93

 

            Calculate mean, standard, variance  and deviation of the return.

 
  14. Differentiate between fundamental analysis and technical analysis.
  15. The current dividend on an equity share of SBI is Rs.3/- is expected to enjoy an above normal growth rate of 40% for 5 years.  Thereafter, the growth rate will fall and stabilize at 12%.  Equity investors require a return of 15% from SBI’s stock.  What is the intrinsic value of the equity share of SBI?
  16. The market price of  Rs.1000/- par value bond carrying a coupon rate of 14% and maturing after 5 years is Rs.1050.  What is the yield to maturity (YTM) on this bond?  Also compute the approximate YTM.  What is the realized YTM if the reinvestment rate is 12%?
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Examine investment alternatives available for a rational investor.
  18. Discuss the macroeconomic factor that would impact the stock market returns.
  19.  Following are the data in respect of stocks A and B

State of economy Probability of occurrence Rate of return (%)
    A B
Boom 0.25 19 38
Normal 0.50 21 13
Recession 0.25 7 -17

Calculate (i) expected returns,  (ii) standard deviation

 
  20. An investor has 7 portfolios yielding the following results during a five year period.

Portfolio Average annual return (%) Standard deviation (%) Beta
A 15 27 .82
B 11 18 .53
C 9 14 .40
D 18 19 .73
E 10 7 .44
F 21 15 .62
G 15 9 .61
Market 6 11  
91 Day T-Bills 5    

 

Rank these portfolios using (1) Sharp’s model, and (2) Treynor’s model.

 
  21. Explain SML with suitable diagram.
SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                          
  22. You are appointed as a fund manager in SMART Consultancy Ltd. Mr. Piyush, an IT professional approaches you with an investment proposal for Rs.1 lakh.  Mr. Piyush has heard something about CAPM and Fama-French model through his colleagues.  He wants to know in detail from you:

  1. What is CAPM?
  2. Does CAPM hold its ground in the present context?
  3. What are the CAPM anomalies?
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St. Joseph’s College of Commerce VI Sem : International Marketing (Elective P Iii: Marketing) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION –MARCH/APRIL 2016
B.B.M.  – VI SEMESTER
MKT 605: INTERNATIONAL MARKETING (ELECTIVE P III: MARKETING)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. What is meant by Cartel?
  2. Define the term International Marketing.
  3. List any two trade barriers.
  4. What is meant by Globalization?
  5. What is meant by Market Segmentation?
  6. Mention any two problems in International Marketing Communication.
  7. Briefly explain Marketing Mix.
  8. What is meant by Countertrade?
  9. Write short notes on Trading Houses.
  10. What is meant by Dumping?
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Briefly explain Trade Related aspects of Intellectual Property Rights (TRIPS).
  12. What are the merits and demerits of the EURO?
  13. Briefly explain the requisites of sound International Marketing segmentation.
  14. Write short notes on the importance of Balance of Payment in International Marketing.
  15. With a neat sketch briefly explain the International Product Life Cycle.
  16. Write short notes on the importance of International Logistics in International Marketing.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Explain the various risks faced by an International Marketer. Suggest ways in which these risks can be managed.
  18. Explain the function of WTO and highlight its role liberalizing international trade.
  19. Elaborate the problems in International Marketing Communication. Highlight the effect of regulations on Advertising on International Marketing Communication.
  20. Explain export price structure. Briefly explain the steps involved in export pricing.
  21. Explain any five market entry strategies followed in international business. State each of them with examples.
 

SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                          
  22. International Marketing: Unilever vs. Nestle

Unilever:

Unilever was established in 1948 and produces house hold products like; detergents, toiletries, cosmetics, and food products. Unilever is a large corporation that has over 500 firms worldwide. Their products are sold in more than 170 countries. Unilever originated in Europe and then expanded to the United States, starting with two U.S. factories. They can be located in parts of Asia, Africa, North America, the Middle East, Western Europe, and South America. Unilever has a very impressive portfolio that includes eleven brands that annually gain revenue of more than one billion dollars each.

Unilever is aiming for global processes and alignment of their human resource activities. “Unilever is working with Accenture to identify supply opportunities within the marketplace and will look to develop longer term relationships with a rationalized base of preferred suppliers. We seek to do business with those who can supply goods and services in a reliable and cost effective manner.” (2010) there is even a way to apply to be one of Unilever’s suppliers that will provide human resource goods and services. Unilever gained a lot of their success because of the ability to adapt to new markets and technology.

In order to help with the increase in revenue, Unilever changed companies focus to places with higher potential for growth. Concentration on new emerging markets like China, who had a high young population with increasing incomes, caused their developing world sales to increase by substantial amounts. Even while the company was facing struggles such as the Great Depression of the 1930’s, they were concentrating on diversification and expansion of their food markets. Unilever put great efforts into research and development. Unilever’s marketing efforts only varied slightly from the 1950’s until the 1980’s. In this time frame Unilever focused on technology, new products, new global markets, and keeping up with the world economies expansion. By the time the 1980’s arrived Unilever was one of the biggest global corporations which allowed them to focus their marketing efforts on their existing portfolio. By the 1990’s Unilever chose to keep its focus on its portfolio and even eliminated some of their brands so they could keep a strong focus on the top global sales products. In the 2000’s the company implemented a new five year strategic plan that focuses on the needs of consumers and a better future.

 

Nestle:

Nestle is one of the largest consumer packaged goods company in the world that focuses on increasing the nutritional value of the food that is consumed while increasing the taste. The company is classified as a nutrition, health, and wellness company. Nestle was a Swiss company that was founded in 1866. Just like Unilever, they devote a lot of time to research in development. Nestle invest around 1.5 billion in research and development every year. Nestle markets nearly ten thousand different products to 130 different countries across the globe.

Nestle has always been about nutrition, so their global marketing over the years has been based off of demographics that show the changes in living standards and life styles. In the long history of the company, the times have changed. People live longer, and the global population has increased. This has had a huge influence on the way the Nestle runs their business and what products have been the main marketing focal points.

Nestle and Unilever both focus on health and wellness, but instead of focusing on the actual needs of the consumers like Unilever, Nestle focuses on their corporate wellness unit to bring good food, and good life to all of the consumers. Other words, they devote more time and effort into ingredients then the actual consumer.

The corporate wellness group is a global network that is globally placed to help promote the value of nutrition. Their strategy is to make sure to provide better tasting products that are better for everyone.

The two corporations also differ in marketing because Unilever is sticking to its profile and even eliminated products, but Nestle is creating and enhancing hundreds of Nestle products. Nestles’ packaging plays a big role in their marketing. Each package has what is called the “Nestle Nutritional Compass”, to show consumers what they will benefit if they purchase the product. Nestles’ philosophy is that nutritional information is not enough. The compass has three elements: Good to Know; which gives factual information on nutritional contents. Good to remember; which gives tips for healthy lifestyles, cooking, and diet. Good to talk; which invites the consumer to call the Nestle consumer service team or log on to the Nestle website. (2006)

Just like Unilever, Nestles marketing strategy is looking towards the future of their products. They are working on products that will be geared towards gestational issues, Alzheimer’s, diabetes, obesity, and other items that will contribute to the health and wellness of the consumers.

 

Questions

a.      Discuss the practical and legal consequences of both Unilever’s and Nestles’ approach of expansion in international markets.        (7.5 marks)

b.      Discuss the trade barriers that MNC’s like Unilever and Nestle tend to face while operating in international markets. Suggest some recommendations to overcome these objections.                                                        (7.5 marks)

 

 

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St. Joseph’s College of Commerce VI Sem Industrial Psychology And Industrial Relations (Elective : Hr) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION –MARCH/APRIL 2016
B.COM. – VI SEMESTER
HRM 607: industrial psychology and industrial relations

(ELECTIVE : HR)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. How men and women differ in the type of leadership roles they assume in work groups? Explain.
  2. What is ‘Presenteeism’?
  3. Highlight the main functions of ILO.
  4. Mention any four traits of a leader.
  5. What kind of financial and non financial reward power could influence an employee to perform better?
  6. What do you mean by Social Loafing?
  7. Define Industrial Democracy.
  8. Expand AITUC and BMS.
  9. Who make a part of cliques in an organization?
  10. What is group Cohesiveness?
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Mr. Stephen needs to solve a crucial crisis in his department by forming a temporary group. What stages of group formation and development will he witness?
  12. Explain difference between Distributive and Integrative bargaining

 
  13. Write the different forms in which the organization Culture is transmitted to employees.
  14. Define strike and explain different types strikes.
  15. Write a short note on National Commission on Labour.
  16. Explain the process of Conflict.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Mr. Tom was disappointed with the management and had a strong grievance to be taken against his superior. What could be the various reasons leading to a grievance for an employee? Also explain the need for grievance machinery in an organization.
  18. Briefly explain the preventive methods of Industrial disputes.
  19. Industrial Psychology is the study of people at work and is concerned with the entire spectrum of humans. Briefly explain its scope, principles and techniques.

 
  20. Define Industrial Relations. Write its objectives and explain in detail the approaches to Industrial Relations.
  21. Ms. Shalini never felt any more pride in mentioning the name of place where she worked. She was tired of travelling and being away from her family for days. In what ways can her boss measure and evaluate morale of Ms. Shalini. Mention some other general signs of low morale. Also briefly explain the measures to overcome it.
SECTION – D
IV) Case Study                                                                                                              (1×15=15)                                                                                          
  22. “Motivational Spillovers from Awards: Crowding Out in a Multitasking Environment”

The study is led by Timothy Gubler, assistant professor of management in UCR’s School of Business Administration, together with Ian Larkin from the University of California, Los Angeles, and Lamar Pierce from Washington University in St. Louis.

For years, researchers have studied the unintentional side effects of monetary rewards that tie pay with performance. Such rewards can reduce employees’ intrinsic motivation, cause workers to focus less on tasks not recognized financially, and lead to a tendency for employees to play or “game” the system. Conversely, non-monetary recognitions and small nominal awards like gift cards are widely believed to avoid these unintended consequences and present a costless way to motivate employees.

“The common knowledge is that non-monetary awards can subtly motivate people in ways that are fundamentally different to financial reward programs, such as by increasing organizational loyalty, encouraging friendly competition, or increasing employees’ self-esteem,” Gubler said. “In fact, past research has focused almost exclusively on the benefits of these programs, and the costs have been considered negligible.”

To explore the potential downsides of award programs, the researchers used field data from an attendance award program implemented at one of five industrial laundry plants in the Midwest United States. With the plant relying heavily on worker efficiency for overall productivity, the program was designed to recognize all employees with perfect attendance — defined as coming on time to work and not having any unexcused absences. Each month, employees with perfect attendance were recognized at a plant-wide meeting, with one person receiving a $75 gift card through a random draw.

They found:

  • Reward-motivated employees responded positively to the awards by reducing tardiness, but gamed the system to maintain eligibility using sick days and reverted back to poor attendance behavior when they lost eligibility in a given month.
  • The awards crowded out intrinsic motivation in internally-motivated employees, who were already performing well by coming on time in the absence of rewards. These employees had increased tardiness after the program was implemented and they lost eligibility.
  • The awards decreased motivation and productivity for internally-motivated workers, suggesting these employees were unhappy because of fairness and equity concerns.
  • In total, the award program cost the plant 1.4 percent of daily productivity, mainly because of the lost productivity by internally-motivated employees.

Gubler said the research is among the first to show that motivational awards can be costly to firms, rather than beneficial.

“Conscientious internally-motivated employees who were performing well before the award program was introduced felt the program was unfair, as it upset the balance of what was perceived as equitable or fair in the organization. So their performance suffered — not just in terms of their attendance but also through a motivational spillover that affected other areas of their work — including productivity,” he said.

Gubler said firms should carefully consider not only the benefits but also the costs of implementing such programs, and realize an award can cause the same issues as a bonus or other compensation.

“Employees value workplace fairness and they care about how they’re perceived relative to others in the organization. To be effective, companies offering award programs need to consider not only the group they are targeting — such as those that are coming late to work — but also those that are already doing the right thing, as there is a possibility of demotivating some of their best employees.”

Answer the following questions                                           ( 7.5 marks for each)

 

a. Does the role of reward power motivate employees to perform better? Express your views.

b. Awards are cheap and can provide a subtle way to motivate employees, these programs might be reducing firms’ overall productivity; Will the scenario be different in Indian context? Comment.

 

 

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Answer Scheme

 

B.COM V SEMESTER
HRM 607: industrial psychology and industrial relations
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. men and women differ in the type of leadership roles they assume in work groups: men display more task leadership and women exhibit more social leadership
– leadership styles vary by gender: women are more democratic and men are more autocratic and directive
– female and male leaders are equally effective
– men are perceived as more effective than women when the job is defined in masculine terms, and women are more effective than men in roles defined in less masculine terms
– male leaders are perceived as more effective than females when there are a greater percentage of male leaders and male direct reports; the same positive bias is not true for women leaders

 
  2. “presenteeism,” which is when employees show up for work and do the minimum required to get through their day
  3. The functions of the ILO

·         Include the development and promotion of standards for national legislation to protect and improve working conditions and standards of living.

·         The ILO also provides technical assistance in social policy and administration and in workforce training; fosters cooperative organizations and rural industries; compiles labour statistics and conducts research on the social problems of international competition, unemployment and underemployment, labour and industrial relations, and technological change (including automation);

·         And helps to protect the rights of international migrants and organized labour.

 

·         In its first decade the ILO was primarily concerned with legislative and research efforts, with defining and promoting proper minimum standards of labour legislation for adoption by member states, and with arranging for collaboration among workers, employers, government delegates, and ILO professional staff.

 

·         During the worldwide economic depression of the 1930s the ILO sought ways to combat widespread unemployment. With the post war breakup of the European colonial empires and the expansion of ILO membership to include poorer and less developed countries, the ILO addressed itself to new issues, including the social problems created by the liberalization of international trade, the problem of child labour, and the relationship between working conditions and the environment.

 

·         National representatives meet annually at the International Labour Conference.

 
  4. Traits of Leaders

• Intelligence• Physical Features• Inner Motivation• Maturity• Vision & Foresight• Acceptance of Responsibility• Open-Minded and adaptability• Self-confidence• Human Relations Attitude• Fairness and Objectivity

 
  5. Reward power: People comply with the wishes or directives of another because doing so produces positive benefits; therefore, one who can distribute rewards that others view as valuable as controlling pay rates, raises, and bonuses; or non financial –including recognition, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories
  6. Social Loafing:  Choice of some members of a group to take advantage of doing less work, working slow.
  7. Industrial democracy

 

Workers are given the right of self-expression and an opportunity to communicate their views on framing the polices of the company.

 

In industrial democracy, worker are treated as responsible partners of the enterprise and are allowed to participate in the decision -making process through different methods.

 

The concept of industrial democracy is a complete departure from the traditional concept of autocratic management or one-man governance. “It means the application of democratic principal in managing industrial units.”

 
  8.

All India Trade Union Congress (AITUC)

Bharatiya Mazdoor Sangh (BMS)
  9. Cliques: These groups consist of colleagues and companions who normally observe certain   norms and standards. Object is to provide recognition and exchange information of mutual trusts.

 
  10. Cohesiveness:

The degree to which members are attracted to each other and are motivated to stay in the group. Some work groups are cohesive because the members have spent a great deal of time together or group’s small size facilities high interaction or group has experienced external threats that have brought members close together
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. STAGES OF GROUP FORMATION AND DEVELOPMENT

 

Tuck man’s five stage model of group formation and development

1. Forming:  Individuals during the initial stage are not clear of the purpose. This stage is characterized by uncertainty and confusion. This stage is the initial source for intra-group conflicts as individuals feel that individual preferences shadowed by those of the group as well as other members of the group. Members are confused of the hierarchy and the control points.

2. Storming: This stage is characterized by conflict among.  The group members, confusion over relationship, hierarchy, purpose and direction. There would be conflict over the leadership objectives.

3. Norming: During this stage members are clear of their leader, group hierarchy, purpose of the group and group relationships. So members settle start cooperating and collaborating with each other develop close relationship among them and prefer to identify themselves with the group. Members formulate common goals and expectations of the group.

 

4. Performing: Group members during this stage exert all their energies towards functioning and performing the tasks in order to attain the group goals. They share their ideas, skills, knowledge.

5. Adjourning: Temporary groups like committees, teams reach this stage after completing their task which is purely temporary setup. This causes loss of friendship and effective leaders. Informal groups reach this stage rarely and that too in the long run.

 
  12. DISTRUBUTIVE VERSUS INTERGRATIVE BARGAINING

Bargaining characteristic Distributive bargaining Integrative bargaining
Goal Get as much of the pie as possible Expand the pie so that both parties are satisfied
Motivation Win/Lose Win/Win
Focus Positions (“I can’t go beyond this point on this issue”) Interests (“Can you explain why this issue is so important to you?”)
Interests Opposed Congruent
Information sharing Low (sharing information will only allow other party to take advantage) High (sharing information will allow each party to find ways to satisfy interests of each party)
Duration of relationship Short term Long term

 

 
  13.

How employees learn culture?

 

Culture is transmitted to employees in a number of forms the most potent being stories, rituals, material symbols, and languages.

Stories: Nike has a number of senior’s executives who spend much of their time serving as corporate story tellers. And the stories they tell are meant to convey what Nike is about. When they tell the story of how co- founder Bill Bower man went to his workshop and poured rubber into his wife’s waffle iron to create a better running shoe, they’re talking about Nike’s spirit of innovation.

Rituals: Rituals are respective sequences of activities that express and reinforce the key value of organization what goals are most important which people are important and which people are expandable. One of the better known corporate rituals is Wal – Mart’s company chant. Begun by the company’s founder Sam Walton as a way to motivate and unite his workforce “ gimme a W, gimme an A, gimme an L, gimme a squiggle, give me an M, A, R, T !” has become a company rituals that bounds Wal – Mart workers and reinforces Sam Walton’s belief in the imporantance of his employees to the company success. Similar corporate chants are used by IBM, Ericsson, Novell.

Material Symbols: The headquarters of Alcoa doesn’t look like your typical head- office operation. There are few individuals’ offices, even for senior executives. It is essentially made up of cubicles, common areas, and meeting rooms. The informal corporate headquarters conveys to employees that Alcoa values openness, equality, creativity, and flexibility. The layout of corporate headquarters the types of automobiles top executive are given and the presence or absence of corporate aircrafts is a few examples of material symbols. These material symbols convey to employees who are important the degree of egalitarianism desired by top management and the kinds of behavior that are appropriate.

Languages: Many organization and units within organization use languages as a way to identify members of a culture and in so doing help to preserve it.

Training

The first step to passing along your organizational culture is through training. With an effective teacher and strong written materials, the employee will immediately find himself immersed. Your selected trainer should reflect the best qualities of your organization. He should be able to accurately and effectively begin to pass the culture along to new hires. Your written material should be equally as strong, written in a tone that highlights the culture you want to pass along to new recruits.

Guidance

Early on, an employee may understand the culture of your organization, but he may be unsure of how to embrace it. Talk to your employees about what you expect from them, especially if it extends beyond their primary duties. If you expect your employees to get involved in the community, don’t just tell them — show them. Give them examples of ways they can contribute that will promote your company’s culture.

Incentives

At first, a new employee is not fully invested in promoting organizational culture. Initially, he will be in a period of adjustment, feeling out his new responsibilities. Providing incentives and rewards for participating in activities that foster organizational culture will have a two-fold effect. It will encourage him to better understand the organizational culture while giving him an example of exactly how it works. He will see that your organization promotes a culture that rewards employees for their work. Hopefully, he will pass this along to others while remaining in your employ.

 
  14. Strikes : Strikes are a result of more fundamental adjustments, injustices and economic disturbances. Strike is a temporary cessation of work by a group of employees in order to express grievances or to enforce a demand concerning changes in work conditions. Strikes are divided into three types .They are Primary strikes, secondary strikes and other strikes.

Primary strikes are generally against the employer with whom the dispute exists. They are :

(i) Stay Away Strikes: In this strike workmen stay away from the work place. They organize rallies, demonstrations, etc.

(ii) Stay-in or sit Down Strikes : In this strike, workmen come to the place , they stay at the work place but they don‘t work.

(iii) Tools Down, Pen Down Strike : Here the strikers lay down their tools in case of factory workers , office workers lay down their pens,

(iv) Token or Protest Strikes : It is of very short duration and is in nature of signal for the danger ahead. In this strike workers do not work for an hour or a day.

(v) Lightening or Wild cat strike : In this strike, the strike is done without any prior notice or with a shortest notice.

(vi) Go –Slow : In this strike, the workers intentionally reduce the speed of work.

(vii) Work to rule : In this strike, the strikers undertake the work according to rules or job description.

(viii) Picketing : It is an act of protesting by the workmen in front of the premises of the employer.

(ix) Boycott: It aims at disrupting the normal functioning of the enterprise.

(x) Gherao : It is a physical blockade of a target either by encirclement, intended to block from and to a particular office, workshop etc.

(xi) Hunger Strike : This type of strike is resorted to either by the leaders of the union or by some workers all at a time for a limited period or up to the period of settlement of disputes.

 Secondary Strike : Secondary strikes are against a third party. These strikes are sympathetic strikes.

 
  15. National Commission on Labor

 

National Commission on Labor was established by Central Government under the Labor Act 2003, Act 651, the Industrial Relations Act, 299 of 1965 and the Labor Decree of 1967 for the betterment of the labor forces in the country. All the laws which governed the industrial relations were brought into its ambit while a step was taken for the Commission formation.

 

Justice P.B. Gajendragadkar was the chairman of the first National Commission on Labor which was setup on December 24, 1966. The then National Commission on Labor submitted its report to the government in August 1969. The report it had submitted were mainly to deal with the factors which could examine various aspects and issues of the labor force especially the problems they would have faced. This Commission suggested mechanisms for both organized and unorganized sectors for which effective steps were taken.

 

Main purpose of setting up the National Commission on Labor was that country’s industrial relations come at the more organized manner and all sorts of disputes for settlements etc. are taken care of under the proper legal system. This Commission has causal relation with the Ministry of Labor and reports its Labor Department to improve the conditions of all labor forces.

 

 

Mandate

·         National Commission on Labor has been mandated to work and suggest all types of measures that could make things easier for the labor force.

·         The Commission has been given the powers to explore, evaluate and suggest measures which could prove worthwhile to make the life of the labor force worthwhile.

·         This Commission submits its reports to the Chief Labor Officer in the Ministry of Labor.

·         Some of the important mandates that are prescribed for National Commission on Labor include developing an effective process after thorough consultation with the various authorities concerned for development purpose to initiate a workable and effective national level voice of the labor force under the law which tackles all the issues concerned to them.

·         National Commission on Labor advises the Ministry of Employment and Social Welfare as well for thorough assessment of the conditions and welfare of the labor force in the entire country. Consultations continue and newer steps are taken for the betterment of system and governance.

·         As National Commission on Labor had been given the status of a statutory body which recommended changes in the labor laws its impact is powerful for the sustainable labor related reforms.

 
  16. The conflict process:

Stage1: potential opposition      Stage2: Cognition &      Stage3: Intentions      Stage4: Behavior      Stage5:Outcomes

 
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                 
  17. CAUSES OR SOURCES GRIEVANCES

From a practical point of view, it is probably easier to list those items that don’t precipitate grievances than to list the ones that do. just about any factor involving wages, hours or conditions of employment has and can be used as the basis of grievances.

An employee is dissatisfied and harbors a grievance when he feels that there has been an      infringement of his rights, that his interests have been jeopardised.This sense of grievance generally arises out of misinteretation of company policies and practices.

Calhoon observes.”Grievances exits in the minds of individuals are produced and dissipated by situations, are fostered or healed by group pressures, are adjusted or made worse by supervisors, and are nourished or dissolved by the climate in the organization which is affected by all the above factors and by the management.”

(1)Concerning wages

àdemand for individuals adjustment; the worker feels that he is underpaid

àcomplaints above incentives; piece rates are too low or too complicated

àmistakes in calculating the wages of a worker

(2)Concerning supervisor

àcomplaints against discipline; the foreman picks on him; inadequate instructions given for job performance

àobjection to having a particular foreman; the foremen playing favorite; the foreman ignores complaints

àobjections to the manner in which the general methods of supervision are used; there are too many rules; regulations are not clearly posted; supervisor indulge in a great deal of snooping.

(3)Concerning individual advancement

àcomplaint that the employee’s record of continuous service has been unfairly broken

àcomplaint that the claims of senior person have been ignored; that seriously has been wrongly determined ;that younger worker have been promoted ahead of older and more experienced employee

àcharges are made that disciplinary discharge or lay-off has been unfair; that the penalty is too severe for the offence that is supposed to have been committed, that the company wanted to get rid of the employee; hence the charges against him

(4)General working conditions

àcomplaints about toilet facilities been inadequate; about inadequate and/or dirty lunch rooms;

àcomplaints about working conditions; dampness, noise, fumes, and other unpleasant or unsafe conditions, which can be easily corrected; overtime is unnecessary; an employee loses too much time because materials are not supplied to him in time

(5)Collective bargaining

àthe company is attempting to undermine the trade union and the workers who belong to that union; the contract with labour has been violated; the company does not deal effectively or expeditiously with union grievances

àthe company does not allow the supervisors to deal with, and settle, grievances of the employee

àthe company disregards precedents and agreements already arrived at the workers trade union.

In study undertaken by S.Chandra,the following causes have been given employee grievances

(1)promotions,(2)amenities.(3)continuity of service.(4)compensation,(5)nature of job.(6)disciplinary action,(7)fines,(8)increment,(9)leave,(10)medical benefits,(11)payment of wages,(12)acting promotion,(13)recovery of dues,(14)safety appliances,(15)superannuation,(16)supersession,(17)transfer(18)condition of work

Two American experts are of the view that there are three main factors which contribute to the grievances of the employee-management policies and practices, trade union practices and personality traits

NEED FOR A GRIEVANCE PROCEDURE

The adaptation of the grievance handling procedure is essential for a variety of reasons for example:

·         Most grievances seriously disturb the employees. This may affect their morale, productivity and their willingness to co-operative with the organization.

·         It is not possible that all the complaints of the employees would be settled by the first-line supervisors, there may be personality conflicts and other causes as well.

·         It serves as an outlet for employee gripes, discontent and frustrations. It acts like a pressure value on a steam boiler. The employees are entitled to legislative, executive and judicial protection and they get their protection from the grievance redressal procedure, which also act as a means of upward communication. The top management becomes increasingly aware of the employee problems, expectations and frustrations.

·         Trade union or the employees do not like the way the management functions, they can submit their grievance in accordance with the procedure laid down for that purpose.

 
  18. Preventive Measures Of Industrial Disputes

 

1]Labor Welfare Officer : Section 49 (1) and (2) of the Factories Act, 1948 specifies that every factory wherein500 or more workers are ordinarily employed at least one welfare Officer must be appointed, where the number of workers are in excess of 2500,the assistant and / or additional welfare officers are required to be appointed to assist the Welfare Officer .

The functions of Labor Welfare Officer includes :

(I) Labor Welfare Functions :Advice and assistance in implementing legislative and non-legislative provisions relating to :

(a)Health &Safety(b)Working conditions(c)Sanitation & Cleanliness(d)Recreation(e)Welfare Amenities(f) Workers Education(g)Services like Co-operative grain shops, housing cooperatives.(h)Formation of welfare committees.(i) Housing(j) Implementation of welfare Acts.

(II) Labor Administration Functions :These may cover:(a)Organizational Discipline(b)Safety & Medical administration(c)Wage& salary administration(d)Administration of Legislation covering Industrial Relations

(III) Labor Relations Functions: These may consist of :(a)Administration of standing orders.(b)Settlement of Grievances.(c)Settlement of Disputes through statutory procedures.(d)Trade unions& union management relations(e)Steps to increase productivity efficiency.

2]Tripartite and Bipartite Bodies :Industrial relations in India have been shaped largely by the policies and practices of Tripartite and Bipartite bodies. The purpose of consultative machinery is to bring the partners together for mutual settlement of differences in spirit of cooperation and goodwill. Bipartite consultative machinery comprises two parties i.e. employees and employer, the important bipartite body is works committees.

Works Committee : Works committees greatly contribute in prevention of industrial disputes. It is represented by an equal number of representatives of each party and the method of their appointment are also laid down in agreements or enactments. Objectives and Functions :(a)To promote industrial goodwill.(b)To secure cooperation from employers and employees.(c)To ensure the cooperation of private concerns.(d)To provide for a popular agency for supervising the management of nationalized undertakings.

For the successful working of the works committee, the employers are required to abstain from doing anything that is likely to hamper various facilities to workers. The Trade unions on the committees also have to abstain from doing things that upset the operations of the undertaking.

Standing Orders : Majority of the industrial disputes are related to conditions of employment. To prevent this, Standing orders are formulated. It was made obligatory that standing orders should govern the conditions of employment under the Industrial Employment (Standing Orders ) Act of 1946. The Standing Orders regulate the conditions of employment from the stage of entry to the stage of exit.

Grievance Procedure : Grievance generally arise from day – to- day working relations. Grievances of the employees are readdressed by the management. Management can prevent the occurrence of industrial disputes by solving the individual problems.

Collective Bargaining :Collective bargaining helps for settlement of issues and prevention of industrial disputes. It occurs when representatives of a labor union meet management representatives to determine employees wages and benefits, to create or revise work rules and to resolve disputes or violations of the labor contract.

Strong Trade unions :Trade union is the most suitable and effective agency to conduct collective bargaining on behalf of the workers. A powerful bargaining may be achieved by strong trade unions, which enable the workforce to maintain harmonious relations with the management.

Labor Co-partnership and profit sharing :Good industrial relations can be maintained through proper partnership and profit sharing; employer gives a portion of total profits to workers in addition to their normal wages. This sort of attitude of management would create psychological conditions favorable for industrial peace.

Joint Consultation : Joint Consultation involves a continuous relationship between labor and management and expects willingness of management and the participation of workers in discussing common problems of interest. This is the result of collective bargaining relations on a stable basis when parties know each other well and have a mutual trust.

Collective Bargaining:

Collective bargaining helps for settlement of issues and prevention of industrial disputes. It occurs when representatives of a labor union meet management representatives to determine employees wages and benefits, to create or revise work rules and to resolve disputes or violations of the labor contract. The bargaining is collective in the sense that the chosen representative of the employees (i.e. union ) acts as a bargaining agent for all the employees in carrying out negotiations and dealings with the management. On the employer side, it is collective in those common situations in which the companies have joined together in an employer association for the purposes of bargaining with a union.

 
  19. Scope, Principle and Techniques

Since Industrial Psychology is the study of people at work and is concerned with the entire spectrum of human. Its scope is the entire process of management dealing with people at work. There is hardly a field in industry where human understanding is not required; there is hardly a problem in industry and business where human aspect is not involved and hence there is hardly an area in which industrial psychology cannot play its role. Industrial psychology is a useful aid to the efficient management of people at work. The principles and techniques of industrial psychology may be applied to the following areas of management:

(1) Recruitment—Appropriate matching of job requirement with the employee’s abilities lead to reduction in the cost of hiring, supervision and production. Accurate job analysis, standardised application forms, scientific screening of applications, use of psychological tests for vocational fitness, final overall rating and continuous review and check-up of the entire programme are some of the spheres where the psychologist can make an important contribution several psychological tests may be developed for the proper screening of the people. In this way, psychology may help in recruiting the right man to the right job.

(2) Selection and Placement-Right man should be selected for the right job and industrial psychology helps in this effort also. It develops various devices such as interviews and psychological tests in order to achieve the objective of the selection. It also helps the placement of workers at different jobs scientific assignment of job is possible only with the help of industrial psychology.

(3) Executive Development and Training—A psychologist by studying and investigating managerial problems like delegation, communication and supervision vitalises the already practiced managerial psychology. Individual differences can well be measured by psychological study of the people for training purposes. Continuous and effective use of the capabilities of workers necessitates training of the workers and supervisors. Psychology determines what type of training should be given to the workers.

(4) Promotional Schemes—Why should a man be promoted or transferred or demoted or discharged. These employment situations should be based on abilities, usefulness and seniority. Performance appraisal is one of the psychological techniques to recognise the peoples’ ability mere seniority should not be the guiding principle for promotions.

(5) Motivation—The psychologists assume that the causes of different types of human behaviour in industry and business are the needs or the motives that drive an individual to behave in a particular way. Industrial psychology problems into behaviour of people at work to determine the conditions in which an individual or people at work to determine the conditions in which an individual feels motivated and is willing to work whole-heartedly to maximise the productivity. Industrial psychology has identified the financial and non-financial incentives which are used by the management to motivate the personnel.

(6) Attitude and morale—The psychologists have established the relationship between the attitudes of the employees and their performance. Psychological studies outline the major factors favourable or detrimental to good morale and give some class as to the steps which can be taken to give further understanding of needs, perceptions, satisfaction and motivation of people in relation to their working situations.

(7) Wages and salary administration-The wage rates in the industry should be fixed on some suitable and scientific formula. The psychologists have developed the techniques of job evaluation, merit-rating and job analysis as basis for rational wage and salary structure. Job evaluation and merit-rating are the techniques which evaluate the worth of the job and of the man respectively. Merit-ratings technique evaluates the men while the job analysis determines the job description and worth of the job.

(8) Human relations—Human relations may briefly be described as the relations or contacts among individuals in an organisation and the group behaviour that emerges from these relations. The modern industrial psychologists treated people in industry as human being and have made significant contribution to industrial management by developing concepts and techniques of effective leadership. They suggest the possible ways and means to solve the industrial strife.

(9) Human engineering-It is designing and laying out equipment in order to get the greatest efficiency of man-machine system. The industrial psychologists working in human engineering provides data on which management can decide to improve the design and the product for the comfort and to increase the sale to the satisfaction of customers. It also helps in reducing machine breakdowns, wastage of raw materials and training time to workers, to minimise accidents and introduce better performance and job satisfaction. Industrial psychology has humanised the management and opened the way to a much fuller utilisation of the human factor in industry.

(10) Accident prevention—The psychological studies show that 98% of the accidents in industry are preventable. It means personal or psychological factors play an important role in any programme of accident prevention. Monotony and fatigue studies help in minimising the accidents. Psychologists have made the contribution of signals to the development of safety programme and the preservation of human factor in industry.

 
  20. Industrial Relations

encompasses a set of phenomena, both inside and outside the workplace, concerned with determining and regulating employment relationship Relationship between management and employees or among employees and their organization that characterize and grow out of employment.

 

Objectives

 

·         To enhance economic status of worker

·         To avoid industrial conflicts and their consequences

·         To extend and maintain industrial democracy

·         To provide an opportunity to the worker to have a say in the management decision making

·         To regulate production by minimizing conflicts

·         To provide forum to the workers to solve their problems through mutual negotiations and consultations with management

·         To encourage and develop trade union in order to develop workers collective strength

 

 

Approaches To Industrial Relations

 Unitary Approach

is grounded in mutual cooperation, individual treatment, team work and shared goals. Work place conflict is seen as temporary aberration, resulting from poor management Employees who do not mix well with organization culture Unions cooperate with the management. Management’s right to manage is accepted because there is no ‘we they” feeling Underlying assumption is that everyone benefits when the focus is on common interest and promotion of harmony. Based  on reactive strategy. Direct negotiation with employees. Participation of Govt, tribunals and unions are not sought or are seen as being necessary for achieving harmonious employee relation

Pluralism (Conflict Approach )

Pluralism is belief in the existence of more than one ruling principle, giving rise to a conflict of interests. The pluralist approach to IR accepts conflict between management and workers as inevitable but containable through various institutional arrangements ( like collective bargaining, conciliation and arbitration etc) and is in fact considered essential for innovation and growth. It perceives organizations as coalitions of competing interests , where the management’s role is to mediate among the different interest groups. It perceives trade unions as legitimate representative of employee interests It also perceives stability in IR as the product of concessions and compromises between management and unions. Employees join unions to protect their interests and influence decision making by the management. Unions thus balance the power between management and employees. In pluralistic approach a strong unions is not only desirable but necessary

Marxist Approach

Marxists like pluralists also regard conflict as inevitable but see it as a product of capitalistic society where as pluralist believe that the conflict is inevitable in all organizations For Marxists IR has wider meaning. For them conflict arises not because of rift between management and workers but because of the division in the society between those who own resources and those who have only labor to offer. Marxist approach thus focuses on the type of society in which an organization functions. Industrial conflict is thus equated with political and social unrest. Trade Unions are seen both as labor reaction to exploitation by capitalists, as- well-as a weapon to bring about a revolutionary social change. Wage related disputes as secondary For them all strikes are political and they regard state intervention ( via legislations and creation of Industrial Tribunals ) as supporting management’s interests, rather than ensuring a balance between the competing groups.

Systems Approach

a social sub-system within the economy &  contexts (influences actorspoliticalsystems Components& constraints on decisions &  rules – regulatory elements i.e. the terms ideology – beliefs affecting actor views – shared or in conflictaction e.g. market, technology, demography, industrial structure) & nature of the employment relationship developed by IR processes

Other Approaches Of Industrial Relations ( Different Schools Of Thought )

Psychological Approach Differences in the perceptions of labor and management with factors influencing their relations i.e. wages. Benefits, services and working conditions etc Dissatisfaction compels workers to turn aggressive and resort to strike, lockouts and gherao etc.

Sociological approach Sociological factors such as value system, customs and traditions etc affect the relations between labor and management

Human Relations Approach Human behavior is influenced by feelings, sentiments and attitudes. As per this approach humans are motivated by variety of social and psychological factors like economic and non-economic awards to be used.

Giri Approach Collective bargaining and joint negotiations be used to settle disputes between labor and management. Outside interference to be avoided.

Gandhian Approach workers right to strike but cautioned that this right be exercised in just cause and in a peaceful and non- violent manner for minimum wages etc like ‘satyagrah’- Non violent non- cooperation

 

 

 
  21. MEASUREMENT AND EVALUATION OF MORALE

A properly designed programme has, thereof to be utilized to test the morale of individuals. The most commonly used methods for measuring morale are :

i)                   observation

ii)                 attitude or morale surveys

iii)              company records

iv)               counseling

 

i)                   Observation – by this method executives observe the behaviour of their employees listen to them they talk and note their actions the shrugging of shoulders a change in facial expression a shuffling of feet a nervous futtering of hands a change in work habits or avoidance of company. Any departure or deviation from the normal is likely to tell them that something is wrong and needs to be set right.

ii)                  Attitude of morale surveys –

a)      Interview method – by this method employees are interviewed so that a judgment may be arrived at about their feeling and opinions about different aspects of their jobs and company for which they work. An interview may be face- to –face affair; it may be oral; may be in the form of an evaluation that is put down in writing. If interview are to be relied upon, they must be employer – oriented.

b)     The Questioner method – this method is generally used to collect employees opinions about the factors which affect morale and their effect on personal objectives. Morale attitude surveys are generally conducted with a view to :

1.      finding out what employees really think.

2.      finding out about the kind of education and information they need.

3.      improving morale and keeping a check on the effectiveness

4.      determining the training needs of employees

5.      finding out what employees really like.

iii)              Company records and reports: these are usually prepared by the personnel department at regular intervals with the assistance of supervisors and department heads. The records and reports provide the following information:

Examples :(a)the number of workers who quit their jobs or are released every month or year in relation to the total work force-that is, labour turnover;

(b)the number and kinds of worker grievances communicated to supervisors or other  personnel, besides the suggestions received from employees for changes or improvements in company policies;

 (c)the quantity and value of spoilt goods and rejects, and the complaints of tht customer resulting from the substandard quality of products because of the carelessness on the part of workers; and

(d)personal interviews, ratings by supervisors, and information gleaned

iv)               Counseling: this method is used to find out the causes of the dissatisfaction of the employees and to take personal matter.

Warning signs of low morale

Perceptive managers are, therefore, constantly on the lookout for clues to any deterioration in the morale of the employees.

Among the more significant of the warning signals of low morale are:

1) Absenteeism

2) Labour turnover

3) Strike

4) Lack of pride

5) Wastage and spoilage

 

IMPROVING MORALE In the first place, it is essential to change the policy or to correct it immediately. Employees do not there respect for the boss who admits his mistake; but they cannot respect one who makes to many. Second, misconceptions should be removed, and the position should explained to be employees. Third, a reasonable attempt should be made to educate and convince the employees. Fourth, a morale-building programme should be based on a clear conception of the theory that underlines it. For example

1) Leadership

2) Policies and conditions

3) Effective communication channels suitable, consistent, equitable reward.

4) Training for employees

5) Specific performance goals

6) feed- back

Positive measures for high morale

1)      creation of whole jobs: job should be enlarged-that is, the complexity of a job should be increased so that it may appeal to their higher needs.

2)      Job enrichment: this involves a greater use of the factors which are intended to motivate the worker rather than to ensure his continuing satisfaction. Job enrichment also opens up for the employee and opportunity for greater recognition, growth, advancement and responsibity.

3)      Building responsibility into a job: employees should be encouraged to take risk decision. This can be ensured by delegating authority to them.

4)      Modifying the work environment: this involves the use of teams of work groups; developing the social contact of the employees; the use of

5)      Music;  regular rest breaks.

6)      Flexing working hours: that is, introducing flextime and flexible working hours so that an employee may have enough time look his children and his family as well as after his personal affairs. In this manner, the rate of absenteeism can be reduced.

7)      Job sharing or twinning: under this system, two workers divide a full-time job between themselves, splitting not only the hours of work but also the salary. Husband and wife, are old persons may prefer this procedure for sharing the job.

8)      Rotation of jobs: job rotation helps to reduce an employee`s boredom which arises out of the monotonous nature of his work. By the adoption of his procedure, jobs may also be found for mentally retarded and physically handicapped persons.

Imaginative managers can develop many more ways of making a job interesting for their jobs.

To ensure the success of morale-building techniques, it is essential to have top management support for them. Supervisors and employees are generally educates people. A climate of trust an understanding should, therefore, be created.

 
SECTION – D
IV) Case Study                                                                                                              (1×15=15)                                                                                          
  22 The answers could be marked as per the content and relativity with the  subject by the concerned evaluator.

 

 

 

St. Joseph’s College of Commerce VI Sem Auditing (Elective P-Iii: Accounts) Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.COM – VI SEMESTER
 ACC 605 : AUDITING (ELECTIVE P-III: ACCOUNTS)
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. What is meant by Corporate Governance?
  2. What does SA 620 deal with?
  3. What is VAT? State its purpose?
  4. What is meant by Service Tax and who is liable to pay?
  5. State the objectives of AASB (India).
  6. What does Section 31 of the KVAT Act, 2003, State?
  7. State any 2 difference between a black-box and a white box approach?
  8. What are the relevant factors used by auditors to evaluate the expert’s work in providing audit evidence?
  9. What is an Audit Committee?
  10. State the Engagement Standards of AASB (India).
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Explain the procedure in setting up the auditing standard board in India.
  12. State the responsibilities among the joint auditors as per SA 299.
  13. Explain EDI in auditing.
  14. State when the Input tax credit will be available for the taxable goods purchased.
  15. State in detail the types of market under NEAT system?
  16. Determine the need of an Audit Expert as per SA 620
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Briefly explain deductions under: a) 35D b) 35E c) 80HH d) 80 HHA e) 80HHC
  18. State in brief the various considerations for agreement between the Auditor and an Auditor’s External Expert.
  19. State in detail the factors that may affect external auditors in determining if the work of Internal Auditors is adequate or not  for the purpose of the audit as per SA 610
  20. Briefly explain as to why an auditor should have adequate knowledge about important aspects of functioning of stock exchanges and also the manner in which the transactions are entered into by the members of stock exchange.
  21. Briefly explain the various approaches to auditing in a CIS environment?
 

 

SECTION – D

 
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                           
  22. As an auditor, you are asked to audit the Service Tax of the company.  What are the different areas that you would consider in presenting the report while auditing the Service Tax and what is the role played by you in auditing the service tax.

 

 

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St. Joseph’s College of Commerce IV Sem Theory And Practice Of Banking Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.COM – IV SEMESTER
C1 12 403: THEORY AND PRACTICE OF BANKING
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Differentiate between RTGS and NEFT.
  2. What is a scheduled bank?
  3. What do you understand by the term sukuk?
  4. What is the impact of BASEL Norms on Indian Banking System?
  5. Mention the circumstances under which banker can disclose information of customer’s account.
  6. Who can cross a cheque?
  7. What is NPA? Give examples.
  8. What are the modes of creating charge on security?
  9. What is ECS? Is it same as Electronic Money?
  10. Define the term banking.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Write short notes on earning assets of banks.
  12. What is Investment Banking? Write its functions.
  13. How are the rights of a banker classified? Explain.
  14. What is a promissory note? Point out its features.
  15. Spell out the principals of sound lending.
  16. Write a short note on Payment Gateways.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Describe the functions of a commercial bank.
  18. Explain in detail, the credit control measures adopted by the Regulatory Authority of RBI.
  19. Who is a Paying Banker? Illustrate the precautions to be taken as Paying Banker in order to protect the customer’s interest while making payment of his cheque.
  20. a. How are the early warning signals of NPA classified?

b. How can a bank manage NPA successfully?
  21. What is risk? Explain the different types of risk with relevant examples.
 

 

 

 

 

SECTION – D

 
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                           
  22. In your role as the Branch Manager of a bank, how will you deal with the following situations? Give your reasons:

 

  1. Your customer sends a crossed cheque drawn by A in favour of your bank, for crediting to his account with you.
  2. D presents for encashment an uncrossed cheque payable to him or bearer and refuses to endorse the cheque. Will it make any difference if the amount is small?
  3. A bill dated 29th January, 2016 payable after a month (without grace) remains unpaid on the 28th of February, 2016.
  4. Mrs. Radha Dev sends for the credit of her account with you, a cheque drawn in favour of Mrs. R Dev and endorsed by her as Mrs. Radha Dev.
  5. A firm having A, B and C as partners enjoys an overdraft limit of Rs. 1 lakh with the bank. A communication is received by the bank that A died on the 15th of January, 2016. On 20th of January, 2016 two cheques signed by the deceased partner on 9th January, 2016 are presented for payment.

 

 

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St. Joseph’s College of Commerce IV Sem General English And Business Communication Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH / APRIL 2016
B.COM – IV SEMESTER
C1 14 4 GE: GENERAL ENGLISH AND BUSINESS COMMUNICATION

Duration: 3 hours                                                                                             Max.  Marks: 100

Section – A

  1. Read the below passage and answer the following questions.                    (20marks)

Will the GATS close on higher education?

In a GATS regime, there would be no means of ensuring that only high-quality universities enter the fray to set up shop, nor would there be any means of controlling the cost of education they provide

After extended talks in Nairobi, India and other member countries of the World Trade Organisation (WTO) signed the ministerial agreement on December 19. At the forefront of the talks was India’s struggle to get developed countries to agree to reduce their food subsidies, which are perceived to be adversely affecting farmers from developing nations. India and the U.S. resolved differences over public stockholding of food grains, with the U.S. agreeing to an indefinite “peace clause” which protects member countries from being challenged under other WTO agreements. The document released by the WTO also states that developed countries will remove export subsidies immediately, while developing nations will do so by 2018. Almost everything that has been agreed upon has qualifiers and is time-bound, and all this will be discussed by experts. But what has been stunning in the agreement is the lack of dialogue and social concern about the General Agreement on Trade in Services (GATS) agenda — of offering for global trade, as commodities, services such as higher education; health; life insurance; research and development in the physical sciences, social sciences, humanities; and so on.

The WTO document refers to a waiver, according to which the non-least developed country (LDC) members can give preference to services and service providers from LDCs. This will be in place for another 15 years. India is categorised as a developing country, a non-LDC. As of now, 35 countries which have been classified as LDCs by the United Nations have become members of the WTO, with Afghanistan being the latest to join as a member during the Nairobi conference. Commerce Minister Nirmala Sitharaman has said that India has negotiated hard to ensure that the interests of the LDCs and the developing countries are kept at the centre of the WTO agenda. With India looking to play a greater role in the South Asian region, this might be a persuasive argument. But while this is laudable, there are other pieces to the puzzle that do not add up.

India has the youngest population in the world. With half its people below the age of 25, it faces the challenge of educating its youth and preparing them for taking up employment both within the country and outside. In this context, it has been mooted that the entry of foreign education providers would help in a big way. Also, while such educational exchanges have already been happening, they have largely been unregulated. The usual argument favouring entry into the GATS rests on the need for foreign support in educating Indian youth and for regulating this as a trade. But much lies beneath these simple arguments. Talk of increasing the Gross Enrolment Ratio in Higher Education from the present 13 per cent to 30 per cent by 2020 may, for instance, remain a pipe dream.

A level playing field is what the GATS would enforce, but the field would be level only for the traders, not for society at large. In a country like India where a large fraction of people are still first-generation learners, ensuring equitable development is paramount. Yet, when education is treated as a tradable commodity, there can be no concessions on social justice mores. The government cannot even continue to subsidise its own institutions or support needy students through scholarships or reservation policies, as those would be interpreted as unfair trade practices. Hard-won policies of equity and constitutional guarantees would be reduced to mere rhetoric. Any disputes that arise in this regime would have to be referred not to the judiciary but to the WTO’s Dispute Settlement Body.

A horror story

The middle class cannot be too overjoyed either that the flouting of reservation norms would mean greater opportunities for them. In a GATS regime, there would be no means of ensuring that only high-quality universities do not enter the fray to set up shop, nor would there be any means of controlling the cost of education they provide. This has all the makings of a horror story in a country where education loans have become morale-sapping burdens in the process of acquiring the advantage of higher education, and student suicides happen frequently.

Developed countries with ageing populations, and which thus have a growing skill crunch, may try to succeed in siphoning away students from the affluent section, who manage to acquire skills, for employment. This will come at a cost, as it would also exacerbate the brain drain issue.

These offers are not new; they were made in 2005. However, these issues have not been taken up for re-examination, and, as a result, they have slowly been relegated to the back seat of public discourse. To be sure, the GATS works on the principle of progressive liberalization. It is unlikely that once an offer is made, it can be withdrawn in the next round of negotiations. Any withdrawal of, say, a sector or sub-sector, can only be compensated by making a comparable offer involving another sector.

The government has already been trying to introduce education reforms that indicate its own willingness to adopt the GATS agenda in education. These include the four-year undergraduate programme, the choice-based credit system, cutting down on the non-National Eligibility Test fellowships, and research funding. All of this has been met with opposition from the student community and educationists. But that was at a time when there was no international agreement binding the government from acting, or even rolling back decisions not popular with the stakeholders. All this leaves us with the big question: how can a democracy protest for its rights when its government has relinquished its power to concede?

  1. According to the above article what has been the significant achievements of GATS regime?                                                                                      (5 Marks)
  2. In commenting on GATS the writer also says that “…there are other pieces to the puzzle that do not add up.” What are these ‘other pieces of the puzzle’?

(5 marks)

  1. What are the relationships between globalization, trade and service agreements between nations and higher education? Comment with respect to the Indian context.  (10 Marks)

Section – B

  1. II) Answer the following questions in about 150 words each    (2×10=20)

4. “…I felt so sick, so miserable, so ashamed, somehow. Alongside of me, not three yards away, lived a human creature who had nobody in the world to treat her kindly, affectionately, and this human being had invented a friend for herself.” These lines convey the message that Mr. student revaluated his judgmental attitude and quick dismissal . Why do we become pre judgmental about people around us? How does this attitude hinder socialization?

  1. Is Anna and Gurov’s relationship simply a case of emotional infidelity? What does “The Lady with the Dog” say about relationships?

Section-C

III. Answer the following questions in about THREE paragraphs each.   (2×10=20)

  1. Suicide is an important theme inHamlet. Why does Hamlet believe that, although capable of suicide, most human beings choose to live, despite the cruelty, pain, and injustice in the world? (“To be, or not to be” soliloquy (III.i.56–88).

 

  1. ‘The seven stages of human life is a concept first devised by the ancient Greek philosopher Claudius Ptolemy. Ptolemy believed that the structure of the universe is dominated by spheres and therefore associated the classical planets with stages of life. The association of each planet and stage of life relates closely to the speed of their movement around the zodiac. The fastest sphere is associated with birth, and the slowest is associated with the last years of life’. The picture represents these stages. Discuss this image with respect Shakespeare’s soliloquy in ‘As You Like It’.

 

Section –D

  1. Answer the following questions.          (2×15=30)
  2. Create a print advertisement for the product of your choice and draft a sales letter.
  3. Draft a report
    You are a member of a committee that is campaigning for an international sports competition to be hosted in your home town. You have received the following memo:

To: Committee members
From: Chairman
I would be grateful if all members could write a short report giving their views on the following points:

  1. why our town would be a suitable host for the competition
    b. any objections to our campaign and how we can overcome them
    c. suggestions as to how we can make the best use of our budget
  2. Answer the following questions. Each carries 5 marks. (2×5=10)
  3. Discuss the various means of advertisements.
  4. Draft a notice for a team meeting to discuss the product launch.

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

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.COM –IV SEMESTER
C1 11 404: FINANCIAL MARKETS AND SERVICES
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
1. Name the institution which plays the role of a promotor, corporate advisor, financial expert, manager to the issue, underwriter and portfolio manager.
2. In mutual funds, what is the responsibility of the Asset Management Company?
3. What are Gilt funds?
4. What is a wet lease and a dry lease?
5. What is the name of the commercial arrangement whereby an equipment user has the right to use the equipment in return for a rental?
6. What is factoring without recourse?
7. What is Bridge Financing?
8. Outline the definition of a venture capital company.
9. Name the components of the capital market.
10. Name four non-fund or fee based financial services.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
11. Explain four ‘terms’ used in leasing and the steps involved in entering into a leasing transaction.
12. “Factoring helps to free up working capital tied up in the form of trade debts”.  Explain.
13. Explain in brief any two venture capital funding organizations in India.
14. Write a short note on

(a)   Pure growth mutual funds.

(b)   Off shore mutual funds.
15. Distinguish between Banking and Merchant Banking services.
16. Explain the relationship between the primary and secondary market and the differences between the two.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
17. “A financial system is a set of sub systems consisting of financial institutions, markets, instruments and services”.  Give an overview of the components of the Indian financial system.
18. Explain in detail any five money market instruments and their importance.
19. “A merchant banker acts as a Financial Engineer for a business”.  In this context explain the functions of Merchant Banks.

 
20. “Credit rating benefits both the Investors and the company which is rated”.  Explain.
21. Different leasing options exist according to the need of the customer. Explain.
 

SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                          
22. The 1991-92 Securities Scam (Harshad Mehta Scam)

In 1991, major changes in the government policy led to the emergence of a market-oriented private enterprise economy through the removal of controls.

The economic liberalisation package compelled banks to improve their profitability. With liberalisation entered the free interest rate regime, which meant that banks had to face interest rate uncertainty. Coupled with this was strict enforcement of SLR requirements for banks to keep the money supply under control. Hence, public sector banks were forced to undertake more trading in government securities. The increase in interest rates on government securities with a longer period of maturity meant capital loss (depreciation) on the holding of old securities. To partly offset this loss, banks began trading of a new instrument—repos or ready forward. Repo is a means of funding by selling a security held on spot (ready) basis and repurchasing it on forward basis.

 

Several banks, including foreign banks, were unwilling to purchase securities for maintaining SLR because of the risk of depreciation. They preferred ready forward contracts with other banks, which were surplus in securities. These ready forward contracts were turned around every fortnight depending on the banks’ deposit figures. Moreover, many banks had purchased public sector bonds which they could not sell due to the coupon rate hike. Many banks then violated the Reserve Bank advice and entered into ready forward deals in PSU bonds.

 

Repos are a legal and versatile instrument but the inter-bank repos in 1991-92 were based on some inside information obtained illegally. Besides obtaining information illegally, most of the ready forward deals were dubious and facilities like Bank Receipts (BRs) and SGL forms were misused. Bank receipts which were working smoothly as a mechanism (acknowledgement) for transfer of government securities amongst banks were highly misused. There were fake bank receipts in circulation and there was double counting of BRs, which led to an accelerated growth in money supply.

 

Most banks, with a view to increasing their profits, employed their clients’ funds in stocks through their brokers. This they did by offering higher returns through portfolio management.

 

 

The stock market index—BSE Sensex—rose by leaps and bounds. Harshad Mehta, by injecting the banks’ money into share trading, pushed up prices of selected scrips. Besides the banks’ funds, he tapped another source of money—mutual funds. The government was encouraging the creation of mutual funds. These mutual funds, in order to increase their popularity, assured higher returns which led to sizable flow of money to the stock market. Moreover, certain industrialists engaged themselves in ‘insider trading’ to raise the prices of their shares to prevent hostile takeovers.  Brokers, with so much money in their hands, were successful in raising the Sensex by 1,500 points in 15 days.

 

The boom, which began in July 1991, peaked in April 1992, before the bubble burst. Prices of many scrips such as Apollo Tyres, ACC, Castrol India, East India Hotels, GE Shipping, GNFC, Deepak Fertilisers, and Tata Chemicals shot up three times their usual value in just a year’s time.

 

Between March 1991 and March 1992, the BSE sensitive index rose by more than three and a half times—from 1,168 to 4,285. At the peak level, the market capitalisation of Rs 3 lakh crore was about half of the GDP as compared to hardly one-fifth of the GDP the previous year. The market price-earning (P/E) ratio at 55 was not only higher than what it was in many other developing and developed countries but was far in excess of the fundamentals. The monetary size of the securities fraud was estimated to be Rs 3,542 crore. The Sensex dropped to 3,000 and the BSE was closed for a month when the scam came to light.

 

The scam highlighted the loopholes in the financial system, unfair trade practices in various instruments, widespread corruption, and wrong policies. The Reserve Bank banned inter-bank repos after the scam and the pace of reforms in the financial sector also increased.

 

Questions:

 

a.      Highlight atleast four loopholes in the Indian Financial System during the early 1990’s.

b.      Give a brief account of the unfair trade practice carried out by Harshad Mehta.

c.       Give your recommendations to avoid such a situation in the future.

 

(5+5+5)

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St. Joseph’s College of Commerce IV Sem Cost And Management Accounting – Ii Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.COM – IV SEMESTER
C1 12 401 :COST AND MANAGEMENT ACCOUNTING – II
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. What is Sunk Cost?  Give an example.
  2. Mention any two advantage of Standard Costing.
  3. How is Absorption Costing different from Marginal Costing?
  4. Differentiate between Normal Loss and Abnormal Loss in Process Costing.
  5. Mention any four components of Master Budget.
  6. From the following particulars, find out the Break Even Point in quantity and in Value.

Variable Cost per unit Rs. 75
Fixed Cost   Rs. 2,70,000
Selling Price per unit Rs. 100
  7. What are irrelevant costs?  Mention any two examples of irrelevant Cost.
  8. How do you calculate Idle Time Variance?  Can Idle Time Variance be Favourable?
  9. What are Opportunity Costs?  Are they relevant for decision making?
  10. The output of Process A was 2,500 units.  Normal loss allowed was 10% of input.  Abnormal loss was 200 units.  Calculate the number of units of input.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. 600 Kg. of a material was charged to Process A at the rate of Rs. 4 per kg.  The direct labour amounted to Rs. 200 and the other departmental expenses amounted to Rs. 760.  The normal loss is 10% of the input and the net production was 500 Kg.  Assuming that process scrap is saleable at Rs. 2 per Kg., prepare a ledger of Process A clearly showing the values of normal and abnormal loss.
  12. From the information given below, you are required to calculate the following:

a)      The P/V Ratio

b)     Break Even Point in Units

c)      Margin of Safety if actual sales is Rs. 75,000

d)     Net Profit when actual sales are 10% above BEP.

e)      Expected Sales in value to earn a profit of Rs. 25,000.

Direct Material per unit Rs. 3
Direct Labour per unit Rs. 2
Fixed Overheads (Total) Rs. 10,000
Variable overhead 100% of Direct Labour
Selling Price per unit Rs. 9.50
   

13.

  

The expenses budgeted for production of 10,000 units in a factory are furnished below:

Particulars Rs. Per unit
Materials 70
Labour 25
Variable Overheads 20
Fixed Overheads 10
Variable Expenses (direct) 5
Selling Expenses (10% fixed) 13
Distribution Expenses (20% fixed) 7
Administration Expenses (Rs. 50,000) 5
Total 155

Prepare a budget for the production of 7,000 units. Assume that Administration expenses are fixed for all levels of production.

 
  14. 10,000 shirts have been manufactured for export at a cost of Rs. 300 per shirt. These shirts were rejected because of defects and can be sold for Rs. 240 per shirt in the local market. If the defects are rectified by spending Rs. 60 per shirt, the same can be sold for Rs. 320.

i)                   What are the relevant costs?

ii)                 Should the rectification be done?

iii)              What is the gain or loss if not rectified?

iv)                What is the gain or loss if rectified?
  15. Calculate Variable Overhead Variances from the following and verify your result.

Particulars Budgeted Actual
Output in units 20,000 19,000
No. of Hours 5,000 4,500
Variable Overheads Rs. 5,000 Rs. 4,800
  16. Mention the differences between Fixed Cost and Variable Cost.
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Prepare Process Accounts and Calculate Total Cost of Production from the data given below:

Particulars Process A (Rs.) Process B (Rs.) Process C  (Rs.)
Materials 2,250 750 300
Wages 1,200 3,000 900
Direct Expenses:      
 Fuel 300 200 400
Carriage 200 300 100
Works Overheads 1,890 2,580 1,875

 

The indirect expenses Rs. 1,275 should be apportioned on the basis of wages.
  18. Prepare a Cash Budget for the three months ending 30th June, 2016 from the information given below:

a)

Month Sales (Rs.) Materials (Rs.) Wages (Rs.) Overheads (Rs.)
Feb 14,000 9,600 3,000 1,700
Mar 15,000 9,000 3,000 1,900
Apr 16,000 9,200 3,200 2,000
May 17,000 10,000 3,600 2,200
Jun 18,000 10,400 4,000 2,300

b) Credit Terms are:

Sales and Debtors:  10% of Total Sales are for Cash, 50% of the credit sales are collected next month and the balance in the following month.

Creditors:  Materials :  2 months;  Wages :  ¼ month  and  Overheads : ¼ month.

c) Cash and Bank balance on 1st April 2016 is expected to be Rs. 6,000.

d) Other relevant information are:

1 Plant and Machinery will be installed in Feb. 2016 at a cost of Rs. 96,000.  The monthly installment of Rs. 2,000 is payable from April onwards.
2 Dividend at 5% on Preference Share Capital of Rs. 2,00,000 will be paid on 1st June.
3 Advance to be received for sale of vehicles Rs. 9,000 in June.
4 Dividends from investments amounting to Rs. 1,000 are expected to be received in June.
5 Income Tax (advance) to be paid in June is Rs. 2,000.
  19. The standard mix to produce one unit of product is as follows:

Materials No. of units Cost per unit Total (Rs.)
A 60 Rs. 15 900
B 80 Rs. 20 1,600
D 100 Rs. 25 2,500
Total 240   5,000

During the month of July, 10 units were actually produced and consumption was as follows:

Materials No. of units Cost per unit Total (Rs.)
A 640 Rs. 17.50 11,200
B 950 Rs. 18.00 17,100
D 870 Rs. 27.50 23,925
Total 2,460   52,225

Calculate all the Material Variances- MCV, MPV, MUV, MMV, MYV

 
  20. Reliable Product Co. manufactures product MK.  The company earned a profit of Rs. 14,00,000 from the production of this product MK in the year 2015-16, after charging fixed cost of Rs. 10,00,000.  Product MK was sold for Rs. 50 per unit and has a variable cost of Rs. 20 per unit.

Market research suggest the following responses to price changes:

 

Alternative Selling Price reduced by Quantity sold increased by
A 5% 10%
B 7% 20%
C 10% 25%

Evaluate these alternatives and suggest on profitability considerations, which alternative should be adopted for the forthcoming year 2016-17, assuming there is no change in the cost structure.

 
  21. a) The product cost for a factory of a year are given below:

Particulars Rs.
Direct labour cost 75,000
Direct material cost 1,20,000
Production overhead-  
                     Fixed Rs. 45,000  
                     Variable Rs. 70,000 1,15,000

The production manager anticipates the following changes in the following year:

i)       The average rate of direct labour will increase from Rs.4 per hr to Rs.5 per hr.

ii)     Production efficiency would increase by 5%.

iii)  Direct labour hour will increase by 15%.

iv)   The purchase price per unit of direct material and other expenses will remain unchanged.

Prepare the production cost budget (overheads will be absorbed on basis of direct wages).                                                                                        (10 Marks)

b)     A machinery was purchased for Rs. 26,00,000. The operating cost is Rs. 130 per hour. When the machine was about to be installed it was found out that another machine which is more efficient was available in the market for Rs. 45,50,000. The operating cost of the machine being Rs. 91 per hour.

If this new machine is purchased for Rs. 45,50,000, the old machine could be disposed off for Rs. 15,60,000.

i)                    Identify the relevant cost

ii)                  How many hours does the new machine have to run for the benefit of the company?

iii)                Calculate the break-even hours of both the machines, Considering Revenue per hour as Rs. 195.

(5 Marks)

 
SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                          
  22. a) A manufacturer has planned his level of operation at 50% of his plant capacity of 30,000 units.  His expenses are estimated as follows, if 50% of the plant capacity is utilized:

 

a) Direct Materials Rs. 8,280
b) Direct Wages Rs. 11,160
c) Variable and other manufacturing exps Rs. 3,960
d) Total fixed expenses irrespective of  capacity of utilization Rs. 6,000

 

The expected selling price in the domestic market is Rs. 2 per unit.  Recently, the manufacturer has received a trade enquiry from an overseas organization interested in purchasing 6,000 units at a price of Rs. 1.45 per unit.

 

As a professional management accountant, what would be your suggestion regarding acceptance or rejection of the offer?

Support your suggestion with suitable quantitative information.

(7 Marks)

b)  A factory is engaged in the production of a chemical X and in the course of its manufacture, a by-product Y is produced, which after a separate process has a commercial value.  For the month of January, the following are the summarized costing data:

Particulars Joint Expenses (Rs) Separate Expenses
X  (Rs.) Y  (Rs.)
Materials 19,200 7,360 780
Labour 11,700 7,680 2,642
Overheads 3,450 1,550 544

The output for the month was 142 tonnes of X and 49 tonnes of Y.  The selling price of Y averaged Rs. 280 per tonne.

Assuming that the profit on Y is estimated at 50% of the Selling Price, you are required to:

a)      Calculate Y’s share of Joint Cost.

b)     Prepare Main Product X A/c and

c)      By-product Y A/c.

( 8 Marks)

 

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St. Joseph’s College of Commerce IV Sem Business Statistics & Research Techniques Question Paper PDF Download

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st. joseph’s college of commerce (autonomous)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.com – iV semester
C1 11 402: BUSINESS STATISTICS & RESEARCH TECHNIQUES
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Mention any four limitations of statistics.
  2. Define Correlation.
  3. What are the components of Time Series Analysis?
  4. Two coins are tossed. Find the probability of getting either heads or both tails.
  5. What is a null hypothesis?
  6. What is meant by an Index Number? State any two problems in construction of an Index Number?
  7. State any 2 differences between Classification and Tabulation?
  8. What is meant by Range? State any two uses of Range?
  9. Define secondary data. What are its chief sources?
  10. Arithmetic mean= 26.8, Median= 27.9. What is the value of Mode?
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. What is a pie diagram? Construct a pie chart for the following data:

Principal Exporting countries of cotton

U.S.A INDIA EGYPT BRAZIL ARGENTINA
6,367 2,999 1,688 650 202
  12. What do you mean by a questionnaire? State the essential points in drafting a good questionnaire.
  13. In a singing competition 7 candidates were ranked by judges A and B as follows:

Candidate: I II III IV V VI VII
Rank by A: 3 4 5 6 1 2 7
Rank by B: 2 1 7 5 3 4 6

Compute the coefficient of rank correlation.

 
  14. From the following data calculate Fishers index number.

  Price Quantity
Commodity 2010 2015 2010 2015
Rice 9.3 4.5 100 90
Wheat 6.4 3.7 11 10
Jowar 5.1 2.7 5 3
  15. Prepare a blank table showing the average wages of males and females, classified into two age-groups of eighteen and over, and under eighteen years in five industries at two different dates.
  16. Calculate 3 yearly moving average for the following data:

Year 2008 2009 2010 2011 2012 2013 2014 2015
Price (Rs.) 100 107 109 111 110 112 114 113
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                 
  17. Following data are available in respect of sales and advertisement expenditure:

Statistical Details Sales

(in Rs.)

 Advertisement Expenditure

(in Rs.)
Mean

Standard Deviation

 70,000

15,000

 15,000

3,000
Co-efficient of correlation +0.8

Find out:

(a)   Two regression equations;

(b)   If the company desires to achieve the target sales of Rs.1,00,000 then how much should be the advertisement budget?

(c)    If the company has budget for advertisement expenditure limited to Rs.10,000, then what would be the expected sales in Rs.?
  18.  The Aravind Store has its head office at Ahmedabad, Gujarat. It has a textile showroom in Karnataka. The following table shows daily sales of the branch  during January and February 2016  (Totally 50 days excluding holidays):

Branch Daily Sales (Rs. in thousands)
Jayanagar Branch, Bangalore 42 53 65 63 61 47 56 60 64 45
55 57 82 42 39 51 65 55 33 70
50 52 53 45 45 25 36 59 63 39
65 30 45 35 49 15 54 48 64 26
75 20 42 40 41 55 52 46 35 18

As a Marketing Manager of Aravind Store,

(a)   Calculate the frequency distribution table for sales figure using continuous series (0-10, 10-20, and so on)

(b)   Provide the data on Mean, Standard deviation and Coefficient of variation of sales to the Head Office of Aravind Store, Ahmedabad, Gujarat.

(5+10)
  19. a. Calculate the expected frequencies for the following data presuming the two attributes, i.e, conditions of home and condition of child as independent.

 

                                                                       Condition of Home
                                                                                 Clean                        Dirty
 

Condition of Child

 

 

 Clean 70 50
Fairly clean 80 20
Dirty 35 45
Total 185 115

Use chi-square test at 5% level of significance to state whether the two attributes are independent.

b) A sample of 400 male students of a college is found to have a mean height of 171.38 cm.  Can it be regarded as a sample from a large population with mean height 171.17 cm and standard deviation 3.30 cm?  Test at 5% level of significance.

(10+5)

 

                                                                                                             
  20. a) The monthly profits in Rupees of 100 textile shops in Bangalore City are distributed as follows:

Profits

(Rs. in ‘000s)

 No. of Shops Profits

(Rs. in ‘000s)

 No. of Shops
0-100

100-200

200-300

 13

18

27

 300-400

400-500

500-600

 20

17

6

Find the value of mode by drawing histogram of the given data. Check this value by the calculation, using formula.

b) A box contains 25 balls numbered 1 to 25.  Two balls are drawn from the box with replacement.  Find the probability of selecting:              

  • Both odd numbers
  • One odd and one even number
  • Atleast one odd number

(10+5)
  21. Given below are the figures of sales (‘000 rupees) of a certain shop:

Year 2009 2010 2011 2012 2013 2014 2015
Sales 125 128 133 135 140 141 143

a) Fit a straight line by the method of least squares and show the trend values

b) Estimate the trend value for the year 2016.
 

SECTION – D
IV) Case Study                                                                                                              (1×15=15)                                                                                          
  22. a. Discuss the scope of statistics in detail.

b. Calculate the mean of the following distribution using short cut method

Class-interval 50-60 60-70 70-80 80-90 90-100 100-110 110-120
Frequency 8 12 13 15 10 11 6

 

(7+8)

 

 

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St. Joseph’s College of Commerce IV Sem Additional English Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examination – MARCH /April 2016

B.COM – IV SEMESTER

 C1 12 4 AE: ADDITIONAL ENGLISH

Duration: 3 Hours                                                                                        Max. Marks: 100

Section -A

  1. Answer the following in a word, phrase or a sentence.            (5×2= 10)
  2. Who is Mr. Spencer? Why did Holden visit him?
  3. Who asked Holden to write an essay for him?
  4. Name any two siblings of Holden Caulfield.
  5. In which month does the novel take place?
  6. Mention if the following statement is true or false.

JD Salinger’s novel is semi-autobiographical.

  1. Write short notes on any FOUR of the following questions in about 100 words.                             (4×5 =20)
  2. Significance of the title of the novel.
  3. Holden’s fight with Stradlater.
  4. Character sketch of Phoebe.
  5. Holden’s disaffection with the adult world.
  6. Concept of phoniness as articulated by Holden Caulfield.

III. Answer the following questions in about 250 words each.                         (3×10 =30)

  1. What are Holden’s major complaints against grown –ups and their world? Do you think his perceptions are justified? Give reasons.
  2. Write an essay on adolescence in India and in America with respect to Holden’s experiences and your own.
  3. J. D Salinger’s novel is hugely popular and at the same time it has been banned from College curriculum in the past. What do you think are the reasons for these extreme opinions about the novel? Attempt your own analysis.

Section – B

  1. IV) Write short notes on any TWO of the following:  (2×5=10)   
  2. The portrayal of rural feudalism in Rudaali.
  3. The profession of Rudaalis and its socio-cultural implication.
  4. Ganju and Bhudwa

 

  1. Answer the following questions in about 200 words. (3×10=30)
  2. Attempt a character sketch of Shanichari. How is she a symbol of both oppression and resilience in Rudaali?
  3. What in your opinion are the true causes of the misery of Shanichari and other Rudaalis as seen in Mahashweta Devi’s novella? And what are the possible avenues for their emancipation?
  4. Discuss the nature of the relationship between Shanichari and Bhikni. In what way does it alter the life of Shanichari and what insights does it offer into caste and gender marginality as it is experienced by the women of bottommost strata of Indian society?

 

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St. Joseph’s College of Commerce II Sem General English Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examination – March /APRIL 2016

B.Com – II Semester

c1 15 2 ge: GENERAL ENGLISH

Duration: 3 Hours                                                                                      Max. Marks: 100

                                                                

Note:  Read the questions carefully and answer.

Do not exceed the paragraph limit.

            Each paragraph should contain at least four sentences.

 

SECTION – A

Read the passage below and answer the questions.

Freedom of speech: Is there really any difference between sedition and blasphemy?

Freedom of speech is one of the cornerstones of liberal government. In his famous philosophical work On Liberty, John Stuart Mill laid out the basic principle of how free speech should work:

If the arguments of the present chapter are of any validity, there ought to exist the fullest liberty of professing and discussing, as a matter of ethical conviction, any doctrine, however immoral it may be considered.

“However immoral”, though, is a high bar. What if a person’s speech and ideas are terribly odious to the people and society around him? Here Mill is even more emphatic:

If all mankind minus one were of one opinion, and only one person were of the contrary opinion, mankind would be no more justified in silencing that one person than he, if he had the power, would be justified in silencing mankind.

Of course, the one ideology that this sort of unrestrained freedom of speech runs smack into is religion. It is rather easy to talk of offending everyone as long the discussion is about the more banal facets of human existence. However, once talk turns to gods, goddesses, prophets and seers, believers tend to get a bit more heated. As a result, even self-proclaimed liberal democracies have allowed the criminalisation of speech that seem to hurt religious sentiments. For example, England had a law that penalised the blaspheming of the Christian religion, which was on its books right till 2008. This was in spite of the fact that its 17th century Bill of Rights protected free speech.

Interestingly, the other thing that is usually shielded from freedom of speech is the state. Even countries which have liberalism as their ruling ideology have, through history, penalised offensive speech against the state. The United States, a country that almost fetishes free speech, has a sedition law on its books that it used to target people branded “anti-national”. This law was used against Communists and Nazi sympathisers in the 1940s but, within a decade, its judiciary had ruled that ideas, no matter how seemingly harmful, can never be a basis for charging someone with sedition. As a result, the Unites States’ sedition law has remained unused since 1961.

Free speech in India

Matters in India are a bit less promising. Free speech is curbed by a fairly stringent blasphemy law, Section 295A of the Indian Penal Code, introduced by the British Raj in 1932. “Anti-national” speech is curbed by India’s sedition law, section 124A, also introduced by the Raj. There is however, a fair bit of opinion ranged against blasphemy laws. The United Nations, for example, recognises that blasphemy laws are incompatible with civil rights. In India too, while free speech has frequently been proscribed as a result of religion, ­there has also been a strong backlash against the blasphemy law within the framework of the modernist tradition that attempts to move beyond the irrationality of religion.

The question here, of course, is whether a liberal state should be in the business of outlawing speech just because people’s feelings are hurt? India’s sedition law itself has been read down and is fairly liberal on paper now, given that only speech that directly incites violence against the government is liable to be prosecuted as seditious.

(An edited excerpt of an article published in Scroll.in, Feb 12, 2016 by Shoaib Daniyal)

  1. Answer the following in about two paragraphs each. (2 x 10 = 20)
  2. What have you understood by the terms ‘morality’ and ‘ethics’? How is it relevant to Mill’s statement on free speech?
  3. In what cases does free speech come into direct conflict according to the above article? And, how are ‘liberalism’ and ‘free speech’ as ideas connected to each other?

Answer in about three or four paragraphs each.                                      (2 x 20 = 40)

  1. The word sedition means “the crime of saying, writing, or doing something that encourages people to disobey their government” and blasphemy means “great disrespect shown to God or to something holy”.

But Gandhi had this to say in a trial when he was charged under “Section 124A of the Indian Penal Code” in 1922 for sedition “Affection cannot be manufactured or regulated by law. If one has no affection for a person or system, one should be free to give the fullest expression to his disaffection, so long as he does not contemplate, promote, or incite to violence.”

Is expressing disaffection towards the government, nation or religion the same as being seditious or blasphemous?  State your opinion and prove it through arguments and explanations.

  1. Here is a quote from Rosa Luxemburg on free speech: “the freedom of speech is meaningless unless it means the freedom of the person who thinks differently”. In the above article the writer while commenting on free speech in India says “Matters in India are a bit less promising.”

What do you think is the status of ‘free speech’ in India? How would you make sense of Rosa Luxemburg’s quote on free speech in the Indian context? Use observations, readings and experiences in answering the question.

SECTION – B

  1. Answer the questions in about two paragraphs each. (2 x 10 = 20)

Read the extract from Amartya Sen’s “What Clash of Civilization?”

A person’s religion need not be his or her all-encompassing and exclusive identity. Islam, as a religion, does not obliterate responsible choice for Muslims in many spheres of life. Indeed, it is possible for one Muslim to take a confrontational view and another to be thoroughly tolerant of heterodoxy without either of them ceasing to be a Muslim for that reason alone.

The response to Islamic fundamentalism and to the terrorism linked with it also becomes particularly confused when there is a general failure to distinguish between Islamic history and the history of Muslim people. Muslims, like all other people in the world, have many different pursuits, and not all their priorities and values need be placed within their singular identity of being Islamic. It is, of course, not surprising at all that the champions of Islamic fundamentalism would like to suppress all other identities of Muslims in favor of being only Islamic. But it is extremely odd that those who want to overcome the tensions and conflicts linked with Islamic fundamentalism also seem unable to see Muslim people in any form other than their being just Islamic.

People see themselves—and have reason to see themselves—in many different ways. For example, a Bangladeshi Muslim is not only a Muslim but also a Bengali and a Bangladeshi, typically quite proud of the Bengali language, literature, and music, not to mention the other identities he or she may have connected with class, gender, occupation, politics, aesthetic taste, and so on. Bangladesh’s separation from Pakistan was not based on religion at all, since a Muslim identity was shared by the bulk of the population in the two wings of undivided Pakistan. The separatist issues related to language, literature, and politics.

Similarly, there is no empirical reason at all why champions of the Muslim past, or for that matter of the Arab heritage, have to concentrate specifically on religious beliefs only and not also on science and mathematics, to which Arab and Muslim societies have contributed so much, and which can also be part of a Muslim or an Arab identity. Despite the importance of this heritage, crude classifications have tended to put science and mathematics in the basket of “Western science,” leaving other people to mine their pride in religious depths. If the disaffected Arab activist today can take pride only in the purity of Islam, rather than in the many-sided richness of Arab history, the unique prioritization of religion, shared by warriors on both sides, plays a major part in incarcerating people within the enclosure of a singular identity.

  1. Do you agree with the statement “A person’s religion need not be his or her all-encompassing and exclusive identity.”? Comment on the concept of ‘singular identity’.

 

  1. Relate Mona’s Story with Amartya Sen’s idea of singular and multiple identities. Also, comment on the vachanas of Basavanna and Dasimmaiah that talk about gender identities.

 

SECTION – C

III. Answer the questions in about two paragraphs each.                      (2 x10 = 20)

  1. Write about any two themes/ideas/metaphors/images from the poems of Robert Frost and Faiz Ahmad Faiz.

 

  1. Write about a poem that you read in the class and that was very relatable to your experiences in life? What is your perspective on reading and writing poetry?

St. Joseph’s College of Commerce II Sem Corporate Accounting Question Paper PDF Download

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REG NO:

 

 

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.COM (Regular ) – II SEMESTER
C1 15MC201: CORPORATE ACCOUNTING
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Mention any two factors affecting the valuation of shares.
  2. What is Non-purchased Goodwill?  Mention any two features of Non-purchased Goodwill.
  3. Mention the four methods of calculation of Purchase Consideration.
  4. What is Minority Interest?  How do you calculate it?
  5. Can partly paid preference shares be redeemed? What is the procedure to redeem partly paid preference shares?
  6. Explain Pre-acquisition Profits and Post-acquisition Profits with respect to Consolidation of Financial Statements.
  7. Write any two accounting differences between an amalgamation in the nature of merger and amalgamation in the nature of purchase.
  8. Given that Yield Value of a Share is Rs. 188 and the Fair Value of a Share is

Rs. 194, find the Intrinsic Value per Share.
  9. During the year 2010-11, X Ltd. issued 50,000  11% Preference Shares of Rs. 100 each at a premium of 5%, which are redeemable at the end of 3rd year at par.  At the end of the 3rd year, the company did not have sufficient cash resources to redeem the preference shares.  Hence it issued 10,000 Equity Shares of Rs. 100 each at a premium of 10%.  Calculate the amount to be transferred to Capital Redemption Reserve at the time of redemption of Preference Shares.
  10. Find the value of Goodwill, if it is to be calculated at 3 years purchase of average profits of last four years.  The last four year’s profits are as below:

Year 1 Profit Rs. 25,000 Year 2 Loss Rs. 10,000
Year 3 Profit Rs. 35,000 Year 4 Profit Rs. 40,000
 

SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Balance Sheet Extract of H Ltd. and S Ltd. as at 31st March 2015 is as below:

Rs. In thousands

Liabilities H Ltd S Ltd Assets H Ltd S Ltd
Equity Shares of Rs. 10 each fully paid up 1,050.00 175.00 13,125 shares of S Ltd. 192.50 0
General Reserve 87.50 52.50      
Surplus A/c 140.00 70.00      

 

 

Additional Information:

At the time of acquisition of 13,125 shares by H Ltd in S Ltd, S Ltd had Rs. 42,000 in General Reserve and Rs. 66,500 credit balance in Profit and Loss A/c from which 15% dividend was paid by S Ltd and dividend received by H Ltd. on these shares were credited to Surplus A/c.

You are required to calculate:

A) Analysis of Profits of S Ltd B) Minority Interest
  12. Liabilities and Assets of Vivek Ltd. as on 31st Dec, 2015 stood as under:

Rs. In Lakhs

Liabilities Amount Assets Amount
10% Preference Shares of Rs. 100 each 25.5 Fixed Assets 110.5
Equity Shares of Rs. 10 each 51.0 Investments 20.4
General Reserve 30.6 Current Assets 17.0
12% Debentures 23.8    
Current Liabilities 17.0    
Total 147.9 Total 147.9

Karan Ltd. signified its agreement to take over the assets and liabilities of Vivek Ltd. as per the following terms and conditions:

a)      Fixed assets at 110% of the books value.

b)     Investments at 25% below the par value.

c)      Current assets and liabilities at book value except that stock in trade at cost amounting to Rs. 10 lakh was agreed to be taken over at a discount of 20%.

d)     12% Debentures are to be discharged at a premium of 10% by issuing 12% debentures of Karan Ltd.

Calculate Purchase consideration for the takeover under Net Assets Method.
  13. The Board of Directors of a Company decided to issue minimum number of equity shares of Rs. 10 each at 10% discount to redeem Rs. 15,00,000 preference shares.  The maximum amount of divisible profits available for redemption is Rs. 8,00,000.  Calculate the number of shares to be issued (if the company decides to issue shares in multiple of 50 only) by the company to ensure that provisions of the companies act is not violated.  Also pass the necessary Journal Entries.
  14. From the following information, calculate the value of an Equity share under the yield method.

a.      The paid up share capital of the company consists of 1,000, 15% preference shares of Rs. 100 each and 20,000 Equity shares of Rs.10 each.

b.      The average annual profit of the company, after providing for depreciation and taxation amounted to Rs. 1,01,250. It is considered necessary to transfer Rs.13,500 to general reserve before declaring dividend.

c.       The normal return expected by investors on Equity shares from this type of business on by the company is 12%.
   

 

 

15.

  

 

 

From the information given below, Compute Cost of Control.

Cost of Acquisition Rs. 5,00,000
Dividend from Post Acquisition Profits received by holding Co. Rs. 10,000
Dividend from Pre-acquisition Profits received by holding Co. Rs. 20,000
Paid up Share Capital held by the holding Co. in Subsidiary Co. Rs. 4,50,000
Holding Company’s share of Capital Profits in Subsidiary Co. Rs. 50,000
Holding Company’s share of Revenue Profits in Subsidiary Co. Rs. 75,000
   

16.

  

What is Goodwill?  Mention any four factors affecting the value of Goodwill.
 

SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                 
  17. The following is the balance sheet of XYZ Ltd as on 31-12-2015.

LIABILITIES Rs. ASSETS Rs.
11,520 15% Preference shares of Rs.100  each 11,52,000

 

 Sundry assets (book value) 34,56,000
17,280 Equity shares of Rs.100 each 17,28,000    
Bills payable 1,44,000    
Creditors 4,32,000    
       
Total 34,56,000 Total 34,56,000

The market value of 60% of the assets is supposed to be 15% more than the book value and that of the remaining 40% at 10% less than the book value. There is an unrecorded liability of Rs. 28,800.   Find the value of each Equity share.

 
  18. The Financial Position of Ojaswi Ltd. at 1st January was as follows:

Equity and Liabilities Rs. Assets Rs.
4,000  5% Redeemable Preference Share Capital of Rs. 10 each 4,00,000 Sundry Assets 8,40,000
20,000 Equity Shares of Rs. 10 each fully paid 2,00,000 Cash and Bank 3,00,000
Securities Premium 50,000    
Profit and Loss A/c 2,80,000    
Sundry Liabilities 2,10,000    
Total 11,40,000   11,40,000

As per the terms of issue of the Preference Shares, these were redeemable at a premium of 5% on 1st February, and it was decided to arrange this as far as possible out of the Company’s resources subject to leaving a balance of Rs. 50,000 in the credit of the profit and loss account.  It was also decided to raise the balance amount by issue of 17,000 Equity Shares of Rs. 10 each at a premium of Rs. 2.50 per share.

 

You are required to pass necessary Journal Entries and draft the balance sheet after redemption.
  19. XYZ Co. intends to purchase the business of ABC Co.  Goodwill for this purpose is agreed to be valued at 3 years purchase of the weighted average profits of the past 4 years.  The profits after tax for these years and the appropriate weights to be used are:-

Year Profits after tax (Rs) Weights
2012 1,80,000 1
2013 2,05,000 2
2014 2,75,000 3
2015 3,05,000 4

The following information was available:-

a.      On 1.1.2013 a major repair   was made in respect of a plant at a cost of Rs. 60,000 and was charged to revenue. The said sum is agreed to be capitalized for goodwill calculation, subject to adjustment of depreciation at 15% on diminishing balance method.

b.     The closing stock for the year 2012 was overvalued by Rs.13,000.

c.       The Closing Stock for the year 2014 was undervalued by Rs. 2,000.

d.      There was an abnormal loss of Rs. 38,000 in the year 2013.

e.      Abnormal gain in the year 2015 amounted to Rs. 3,500.

f.       To cover the management cost an annual charge of Rs. 25,000 should be made for the purpose of goodwill valuation.

Compute the value of goodwill for the company.  Tax rate = 50%.

 
  20. From the Balance Sheets given below as at 31st March, prepare a Consolidated Balance Sheet of H Ltd. and its subsidiary company S Ltd. as at that date.

Rs. In thousands

Liabilities H Ltd S Ltd Assets H Ltd S Ltd
Equity Shares of Rs. 10 each fully paid up 425.00 85.00 Fixed Assets 340.00 51.00
Surplus A/c 170.00 51.00 Stock 255.00 102.00
Reserve 51.00 34.00 Debtors 63.75 72.25
Bills Payable 0 12.75 Bills Receivable 17.00 0
Trade Creditors 93.50 51.00 Shares in S Ltd. (6375 share at cost) 63.75 0
      Preliminary Expenses

 

 0 8.50
Total 739.50 233.75 Total 739.50 233.75

 

Additional Information:

a.      The bills accepted by S Ltd. are all in favour of H Ltd.

b.      The stock of H Ltd. includes Rs. 21,250 bought from S Ltd. at a profit to the latter at 20% of sales.

c.       All the surplus of S Ltd. has been earned since the shares were acquired by H Ltd. but there was already the reserve of Rs. 34,000 at that date.

 

 
  21. Balance Sheets as at 31st March

Rs. In Thousands

Liabilities Ram Ltd. Rahim Ltd. Assets Ram Ltd. Rahim Ltd.
Equity Shares of Rs. 10 each 2,500 1,500 Building 1,250 775
14% Preference Shares of Rs. 100 each 1,100 850 Plant and Machinery 1,625 850
General Reserve 250 250 Furniture and Fixture 287.50 175
Export Profit Reserve 150 100 Investments 350 250
Investment Allowance Reserve 0 50 Stock 625 475
Profit and Loss A/c 375 125 Sundry Debtors 400 460
15% Debentures (Rs. 100 each) 250 175 Bills Receivable 50 55
Trade Creditors 150 75 Cash at Bank 362.50 260
Bills Payable 75 100      
Other Current Liabilities 100 75      
Total 4,950 3,300   4,950 3,300

 

All the Bills Receivables of Rahim Ltd. were having Ram Ltd’s acceptances.  Ram Ltd. takes over Rahim Ltd. on the above data.

The Purchase Consideration is discharged as follows:

a)      Issued 82,500 Equity Shares of Rs. 20 each at par to the Equity Shareholders of Rahim Ltd.

b)     Issued 15% Preference Shares of Rs. 50 each to discharge the Preference Shareholders of Rahim Ltd., at 10% premium.

 

c)      The Debentures of Rahim Ltd. will be converted into equivalent number of Debentures of Ram Ltd.

 

d)     The Statutory Reserves of Rahim Ltd. is to be maintained for two more years.

e)      Expenses of Amalgamation amounting to Rs. 50,000 will be borne by Ram Ltd.

You are required to:

i)                   Compute Purchase Consideration.

ii)                 Show the necessary Ledger Accounts in the books of Rahim Ltd. and

iii)              The Opening Balance journal entries in the books of Ram Ltd.  on the assumption that the amalgamation is in the nature of Purchase.
 

SECTION – D

 
IV) Case Study –                                                                                                    (1×15=15)                                                                                          
  22.  X Ltd. and Y Ltd. amalgamated on and from 1st Jan.  A new Company Z Ltd. was formed to take over the business of the existing companies.  Their Balance Sheets as on 31st December was:

Rs. In thousands

Liabilities X Y Assets X Y
Share Capital:

Equity Shares of Rs. 10 each

 4,500.00 5,250.00 Sundry Fixed Assets 6,375.00 5,625.00
General Reserve 1,125.00 1,500.00 Investments 787.50 412.50
Profit and Loss A/c 750.00 375.00 Stock 937.50 2,062.50
Investment Allowance Reserve 375.00 75.00 Debtors 1,350.00 3,000.00
Export Profit Reserve 37.50 75.00 Cash and Bank 337.50 300.00
12% Debentures 2,250.00 3,000.00      
Sundry Creditors 750.00 1,125.00      
Total 9,787.50 11,400.00 Total 9,787.50 11,400.00

Z Ltd. issued requisite number of shares to discharge the claims of the Equity Shareholders of the Transferor companies.

 

You are required to:

Draft the Balance Sheet of Z Ltd (after amalgamation in nature of Merger) as per Schedule III of the Companies Act 2013.  Notes forming part of the balance sheet need not be provided.

 

 

 

OR

 

You are required to calculate value of each Equity Share based on Discounted Cash Flow Method from the information given below:

i)       Free Cash Flow Estimates:

Year 1 2 3 4 5
Free Cash Flows (Rs) 3,00,000 3,20,000 2,80,000 2,10,000 1,80,000

 

ii)                 After tax Cost of Capital is 17.5%

 

iii)              Present Value factor at 17.5%

Year 1 2 3 4 5
PVF @ 17.5% 0.851 0.724 0.616 0.525 0.446

iv)               No. of Equity Shares = 50,000.

 

 

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