ISBM CFM ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
ACCOUNTING
Total Marks: 80
N.B. : 1) All questions are compulsory
Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to
manufacture air circulating fans itself or purchase them from outside. Its annual requirement is
25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition, ABC Ltd
will have to incur costs of Rs 1.50 per unit for freight and Rs 10,000 per year for quality inspection,
storing etc of the product.
{25 Marks }
In the most recent year ABC Ltd. Produced 25000 fans at the following total cost :
Material Rs. 50,00,000
Labour Rs. 20,00,000
Supervision & other indirect labour Rs. 2,00,000
Power and Light Rs. 50,000
Depreciation Rs. 20,000
Factory Rent Rs. 5,000
Supplies Rs. 75,000
Power and light includes Rs 20,000 for general heating and lighting, which is an allocation based on
the light points. Indirect labour is attributed mainly to the manufacturing of fans. About 75% of it
can be dispensed with along with direct labour if manufacturing is discontinued. However, the
supervisor who receives annual salary of Rs 75,000 will have to be retained. The machines used for
manufacturing fans which have a book value of Rs 3,00,000 can be sold for Rs 1,25,000 and the
amount realized can be invested at 15% return. Factory rent is allocated on the basis of area, and the
company is not able to see an alternative use for the space which would be released. Should ABC
Ltd. Manufacture the fans or buy them?
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
Page 1 Out of 1
Q2) Usha Company produces three consumer products : P, Q and R. The management of the
company wants to determine the most profitable mix. The cost accountant has supplied the following
data. {30 Marks }
Usha Company : Sales and Cost Data
Description Product Total
P Q R
Material Cost per unit
Quantity (Kg) 1.0 1.2 1.4
Rate per Kg (Rs) 50 50 50
Cost per unit (Rs) 50 60 70
Labour Cost per unit 30 90 90
Variable Overheads per unit 15 10 25
Fixed Overheads (Rs .000) 9,175
Current Sales (Units ,000) 100 50 60 210
Projected Sales (Units ,000) 109 55 125 289
Selling Price per unit (Rs) 150 200 270
Raw material used by the firm is in short supply and the firm can expect a maximum supply of 350
lakh kg for next year. Is the company’s projected sales mix most profitable or can it be changed for
the better?
Q3) DSQ Company Ltd, a diversified company, has three divisions, cement, fertilizers and
textiles. The summary of the company’s profit is given below : {25 Marks }
(Rs/Crore)
Cement Fertilizer Textiles Total
Sales 20.0 12.0 18.0 50.0
Less : Variable Cost 8.0 9.6 5.4 23.0
Contribution 12.0 2.4 12.6 27.0
Less : Fixed Cost (allocated to
divisions in proportion to
volumes of Sales)
8.0 4.8 7.2 20.0
Profit (Loss) 4.0 (2.4) 5.4 7.0
After allocating the company’s fixed overheads to products the Fertilizers, division incurs a loss of
Rs 2.4 crore. Should the company drop this division?
Corporate Finance
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. Explain in detail about Corporate Firm
2. Write a note on Short term solvency & Long-Term Solvency Measures
3. Explain Definition & Example of a Bond & Explain How to Value Bonds
4. Write a note on Growth Opportunities & Give one suitable example
5. You purchase a bond with an invoice price of $1,140. The bond has a coupon rate of 7.2 percent, and there are five months to the next semiannual coupon date. What is the clean price of the bond?
6. Explain in Detail about Monte Carlo Simulation
7. Calculating Future Values Compute the future value of $1,000 compounded annually for
a) 10 years at 5 percent
b) 10 years at 7 percent
c) 20 years at 5 percent
d) Why is the interest earned in part(C) not twice the amount earned in part(A)
8. Explain in Detail about Different types of Efficiency
Corporate Law
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. What are the functions of controller.
2. Distinguish cheque and bill of exchange
3. Discuss power to impose lesser penalty
4. State the miscellaneous provisions as regards charges.
5. How to convert public company in to a private company.
6. How to employ a controller and other officers.
7. What are the liability of members
8. How to determine the value of assets
Cost & Management Accountancy
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. Discuss the different methods of calculating depreciation.
2. Bring out the difference between FIFO and LIFO method.
3. What are the components of the Standard Costs ?
4. Differentiate between the Direct Labour Costs and Indirect Labour costs.
5. Explain the methods of preparing the Cash Flow Statements.
6. Discuss the various Accounting concepts & What are the various Accounting Principles ?
7. What do you mean by depreciation & Explain the requirement of depreciation.
8. Explain the causes of differences between the cash book and pass book.
Finance Institution
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks (10 Marks)
1. What is the implication for cross-border trades if it can be shown that interest rate parity is maintained consistently across different markets and different currencies ?
2. What forms of protection and regulation are imposed by regulators of CBs to ensure their safety and soundness ?
3. How has the composition of the assets of U.S. life insurance companies changed over time ?
4. Describe the difference between a defined benefit pension fund and a defined contribution pension fund.
5. Why is the length of time selected for repricing assets and liabilities important when using the repricing model ?
6. Contrast the use of financial futures options with the use of options on cash instruments to construct interest rate hedges.
7. What is a mortgage-backed bond ? Why do financial institutions issue MBBs ?
8. What is the difference between loan participations and loan assignments ?
Financial Accountancy
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks (10 Marks)
1. What are the foreign currency transaction and translation exposures ? Describe the accounting treatment for these exposures.
2. How is MODVAT credit availed shown in financial statements ?
3. Distinguish between funds flow and cash flow statement.
4. Study journalisation process of a manufacturing company. Show the process with the help of a flow diagram.
5. Discuss the salient features of Accounting Standard 6 (AS-6) on Depreciation Accounting.
6. Collect financial statements of ten companies in a fast moving consumer goods industry and critically analyse their depreciation policy.
7. What is deferred tax liability ? How is it different from current tax liability ?
8. Discuss the accounting treatment of government grants relating to depreciation fixed assets.
International Financial Management
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. Explain the possible reasons for growth in international business
2. What risks confront dealers in the foreign Exchange Market? How can they cope with those Risks?
3. Why do companies go in for interest rate swaps? Give The advantages of Interest rate swaps.
4. What are the Advantages and Disadvantages of GDRs
5. What do you understand by the term,’ Inter-national Cash Management’ ? Briefly elucidate its objectives.
6. What are the advantages and Disadvantages of joint ventures
7. Differentiate between Transaction and economic exposure?
8. Discuss the market imperfections for derivatives that characterize the Indian Markets.
Investments
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks (10 Marks)
1. What is the relationship between securitization and the role of Financial Intermediaries in the economy? What happens to financial intermediaries as securitization progresses?
2. Balanced funds, life-cycle funds, and asset allocation funds all invest in both the stock and bond markets? What are the differences among these types of funds?
3. Using historical risk premiums over the 1980-2008 periods as your guide, what would be your estimate of the expected annual HPR on the sensex portfolio if the current risk-free interest rate is 6%?
4. If prices are as likely to increase as decrease, why do investors earn positive returns from the market on average?
5. The monthly rate of return on T-bill is 1%. The market went up this month by 1.5%. In addition, Amb Chases, Ins., which has an equity beta of 2, surprisingly just won a lawsuit that awards it Rs.1 million immediately.
a. If the original value of Amb Chaser equity were Rs. 100 million, what would you guess was the rate of return of its stock this month?
b. What is your answer to (a) if the market had expected Amb Chaser to win Rs. 2 million?
6. Why would you expect securitization to take place only in highly developed capital market?
7. Why do bond prices go down when interest rates go up? Don’t lenders like high interest rates?
8. Which of the following factors reflect pure market risk for a given corporation?
a. Increased short-term interest rates.
b. Fire in the corporate warehouse.
Take Over & Merger
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. What are some reasons why a merger can increase & decrease value?
2. Define target run-up. What are some possible reasons for run-up?
3. List four methods of valuation, and briefly set forth the advantages and Limitations of each
4. What are the advantages and disadvantages of joint ventures?
5. What were the significant tax changes involving MLPs?
6. Explain the difference between flip-in and flip-over poison pills.
7. What are the three primary forms of corporate restructuring and divestitures?
8. Discuss the effect of the following variables on merger activity:
a) The growth rate of GDP
b) Interest rate risk premiums.
CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
ACCOUNTING
Total Marks: 80
N.B. : 1) All questions are compulsory
Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to
manufacture air circulating fans itself or purchase them from outside. Its annual requirement is
25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition, ABC Ltd
will have to incur costs of Rs 1.50 per unit for freight and Rs 10,000 per year for quality inspection,
storing etc of the product.
{25 Marks }
In the most recent year ABC Ltd. Produced 25000 fans at the following total cost :
Material Rs. 50,00,000
Labour Rs. 20,00,000
Supervision & other indirect labour Rs. 2,00,000
Power and Light Rs. 50,000
Depreciation Rs. 20,000
Factory Rent Rs. 5,000
Supplies Rs. 75,000
Power and light includes Rs 20,000 for general heating and lighting, which is an allocation based on
the light points. Indirect labour is attributed mainly to the manufacturing of fans. About 75% of it
can be dispensed with along with direct labour if manufacturing is discontinued. However, the
supervisor who receives annual salary of Rs 75,000 will have to be retained. The machines used for
manufacturing fans which have a book value of Rs 3,00,000 can be sold for Rs 1,25,000 and the
amount realized can be invested at 15% return. Factory rent is allocated on the basis of area, and the
company is not able to see an alternative use for the space which would be released. Should ABC
Ltd. Manufacture the fans or buy them?
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
Page 1 Out of 1
Q2) Usha Company produces three consumer products : P, Q and R. The management of the
company wants to determine the most profitable mix. The cost accountant has supplied the following
data. {30 Marks }
Usha Company : Sales and Cost Data
Description Product Total
P Q R
Material Cost per unit
Quantity (Kg) 1.0 1.2 1.4
Rate per Kg (Rs) 50 50 50
Cost per unit (Rs) 50 60 70
Labour Cost per unit 30 90 90
Variable Overheads per unit 15 10 25
Fixed Overheads (Rs .000) 9,175
Current Sales (Units ,000) 100 50 60 210
Projected Sales (Units ,000) 109 55 125 289
Selling Price per unit (Rs) 150 200 270
Raw material used by the firm is in short supply and the firm can expect a maximum supply of 350
lakh kg for next year. Is the company’s projected sales mix most profitable or can it be changed for
the better?
Q3) DSQ Company Ltd, a diversified company, has three divisions, cement, fertilizers and
textiles. The summary of the company’s profit is given below : {25 Marks }
(Rs/Crore)
Cement Fertilizer Textiles Total
Sales 20.0 12.0 18.0 50.0
Less : Variable Cost 8.0 9.6 5.4 23.0
Contribution 12.0 2.4 12.6 27.0
Less : Fixed Cost (allocated to
divisions in proportion to
volumes of Sales)
8.0 4.8 7.2 20.0
Profit (Loss) 4.0 (2.4) 5.4 7.0
After allocating the company’s fixed overheads to products the Fertilizers, division incurs a loss of
Rs 2.4 crore. Should the company drop this division?
Corporate Finance
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. Explain in detail about Corporate Firm
2. Write a note on Short term solvency & Long-Term Solvency Measures
3. Explain Definition & Example of a Bond & Explain How to Value Bonds
4. Write a note on Growth Opportunities & Give one suitable example
5. You purchase a bond with an invoice price of $1,140. The bond has a coupon rate of 7.2 percent, and there are five months to the next semiannual coupon date. What is the clean price of the bond?
6. Explain in Detail about Monte Carlo Simulation
7. Calculating Future Values Compute the future value of $1,000 compounded annually for
a) 10 years at 5 percent
b) 10 years at 7 percent
c) 20 years at 5 percent
d) Why is the interest earned in part(C) not twice the amount earned in part(A)
8. Explain in Detail about Different types of Efficiency
Corporate Law
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. What are the functions of controller.
2. Distinguish cheque and bill of exchange
3. Discuss power to impose lesser penalty
4. State the miscellaneous provisions as regards charges.
5. How to convert public company in to a private company.
6. How to employ a controller and other officers.
7. What are the liability of members
8. How to determine the value of assets
Cost & Management Accountancy
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. Discuss the different methods of calculating depreciation.
2. Bring out the difference between FIFO and LIFO method.
3. What are the components of the Standard Costs ?
4. Differentiate between the Direct Labour Costs and Indirect Labour costs.
5. Explain the methods of preparing the Cash Flow Statements.
6. Discuss the various Accounting concepts & What are the various Accounting Principles ?
7. What do you mean by depreciation & Explain the requirement of depreciation.
8. Explain the causes of differences between the cash book and pass book.
Finance Institution
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks (10 Marks)
1. What is the implication for cross-border trades if it can be shown that interest rate parity is maintained consistently across different markets and different currencies ?
2. What forms of protection and regulation are imposed by regulators of CBs to ensure their safety and soundness ?
3. How has the composition of the assets of U.S. life insurance companies changed over time ?
4. Describe the difference between a defined benefit pension fund and a defined contribution pension fund.
5. Why is the length of time selected for repricing assets and liabilities important when using the repricing model ?
6. Contrast the use of financial futures options with the use of options on cash instruments to construct interest rate hedges.
7. What is a mortgage-backed bond ? Why do financial institutions issue MBBs ?
8. What is the difference between loan participations and loan assignments ?
Financial Accountancy
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks (10 Marks)
1. What are the foreign currency transaction and translation exposures ? Describe the accounting treatment for these exposures.
2. How is MODVAT credit availed shown in financial statements ?
3. Distinguish between funds flow and cash flow statement.
4. Study journalisation process of a manufacturing company. Show the process with the help of a flow diagram.
5. Discuss the salient features of Accounting Standard 6 (AS-6) on Depreciation Accounting.
6. Collect financial statements of ten companies in a fast moving consumer goods industry and critically analyse their depreciation policy.
7. What is deferred tax liability ? How is it different from current tax liability ?
8. Discuss the accounting treatment of government grants relating to depreciation fixed assets.
International Financial Management
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. Explain the possible reasons for growth in international business
2. What risks confront dealers in the foreign Exchange Market? How can they cope with those Risks?
3. Why do companies go in for interest rate swaps? Give The advantages of Interest rate swaps.
4. What are the Advantages and Disadvantages of GDRs
5. What do you understand by the term,’ Inter-national Cash Management’ ? Briefly elucidate its objectives.
6. What are the advantages and Disadvantages of joint ventures
7. Differentiate between Transaction and economic exposure?
8. Discuss the market imperfections for derivatives that characterize the Indian Markets.
Investments
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks (10 Marks)
1. What is the relationship between securitization and the role of Financial Intermediaries in the economy? What happens to financial intermediaries as securitization progresses?
2. Balanced funds, life-cycle funds, and asset allocation funds all invest in both the stock and bond markets? What are the differences among these types of funds?
3. Using historical risk premiums over the 1980-2008 periods as your guide, what would be your estimate of the expected annual HPR on the sensex portfolio if the current risk-free interest rate is 6%?
4. If prices are as likely to increase as decrease, why do investors earn positive returns from the market on average?
5. The monthly rate of return on T-bill is 1%. The market went up this month by 1.5%. In addition, Amb Chases, Ins., which has an equity beta of 2, surprisingly just won a lawsuit that awards it Rs.1 million immediately.
a. If the original value of Amb Chaser equity were Rs. 100 million, what would you guess was the rate of return of its stock this month?
b. What is your answer to (a) if the market had expected Amb Chaser to win Rs. 2 million?
6. Why would you expect securitization to take place only in highly developed capital market?
7. Why do bond prices go down when interest rates go up? Don’t lenders like high interest rates?
8. Which of the following factors reflect pure market risk for a given corporation?
a. Increased short-term interest rates.
b. Fire in the corporate warehouse.
Take Over & Merger
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks 10 Marks
1. What are some reasons why a merger can increase & decrease value?
2. Define target run-up. What are some possible reasons for run-up?
3. List four methods of valuation, and briefly set forth the advantages and Limitations of each
4. What are the advantages and disadvantages of joint ventures?
5. What were the significant tax changes involving MLPs?
6. Explain the difference between flip-in and flip-over poison pills.
7. What are the three primary forms of corporate restructuring and divestitures?
8. Discuss the effect of the following variables on merger activity:
a) The growth rate of GDP
b) Interest rate risk premiums.
No comments:
Post a Comment