Output PDF

Total No. of Questions : 5] SEAT No.
P1950 [4770] - 2002

[Total No. of Pages : 5
M.B.A. (Semester - II)

202 : FINANCIAL MANAGEMENT
(2013 Pattern)
Time : 2½ Hours] [Max. Marks : 50
Instructions to the candidates:
1) All questions are compulsory.
2) Each question has an internal option.
3) Each question carries 10 marks.
4) Figures to the right indicate marks for that question/sub-question.
5) Your answers should be specific and to the point.
6) Draw neat diagrams and illustrations supportive to your answer.
7) Use of simple calculator is permitted.
Ql) a) “Financial Management is closely related to Economics”. Explain. [10]

OR
b) “The Finance Manager’|'s primary task is to plan for acquisition and use
of funds so as to maximize the value of the firm”. Do you agree with
the statement? Comment.
Q2) a) The ratios of two leading firms in the heavy Commercial vehicles (HCV)
sector namely; Tetra Motors and Rapid Auto are provided for the year
ended on 31st March 2013. Interpret these ratios and comment on the
relative financial. [10]
Performance of these companies
Ratios Tetra Motors Rapid Auto
Current Ratio 0.62 0.89
Quick Ratio 0.43 0.47
Gross profit margin% 4.73 6.78
Net profit margin% 2.26 4.24
Total debt to equity 0.56 0.82
Fixed assets turnover Ratio 1.66 2.01
Inventory Turnover Ratio 11.54 6.63
EPS (Rs) 3.91 2.13
P.T.O.
OR
b) From the following balance sheets as on 31st March 2012 and 31st
March 2013 of Dayanand Ltd. You are required to prepare funds flow
statement.
Balance Sheet
Amount (Rs.) Amount (Rs.)
Liabilities 31/03/2012 31/03/2013 Assets 31/03/2012 31/03/2013
Equity Capital 3,00,000 4,00,000 Goodwill 1,15,000 90,000
8% Redeemable 1,50,000 1,00,000 Land &
Pref. Shares Building 2,00,000 1,70,000
General Reserve 40,000 70,000 Plant 80,000 2,00,000
Profit & Loss A/c 30,000 48,000 Debtors 1,60,000 2,00,000
Proposed 42,000 50,000 Stock 77,000 1,09,000
Dividend
Creditors 55,000 83,000 Bills Receivable 20,000 30,000
Bills payable 20,000 16,000 Cash in Hand 15,000 10,000
Taxation 40,000 50,000 Cash at Bank 10,000 8,000
Provision
Total a,77,000 8,17,000 Total a,77,000 8,17,000
Following additional information is provided :-
i) Interim Dividend of Rs. 20,000 has been paid in 2012-
13. i ) Income Tax paid during the year 2012-13 is Rs. 35,000
Q3) a) i) What are the different types of capital budgeting decisions? [5]
i) A leading apparel Mfg. Co. is considering a replacement of its
existing cutting machine with a new automatic machine to
improve
the productivity. The cost of new machine is (Rs.) 25 lakhs. The
cost of the company’|'s capital is 10%. The incremental cash flows
projected during five year period are estimated as follows.
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flows (Rs. in Lakhs) 2.5 5.00 8.00 10.00 12.5
PVF@10% 0.909 0.826 0.751 0.683 0.621
Comment on the suitability of the project by using NPV and PI. [5]
[4770] - 2002 2
OR
b) i) Why capital expenditure budget is required for corporate
organizations? [5]
i) A leading company in the infrastructure contracts is considering a
proposal for the purchase of earth moving equipment. The data on
the proposal is given below : [5]
Cost of the Machine (Rs.) 30,00,000
Life of the Machines 6 years
Depreciation Straight line method
Salvage value (Rs.) Nil
The estimated cash flows before depreciation and income tax in

different years as follows.
Year Amount (Rs.)
1 7,50,000
2 8,00,000
3 8,50,000
4 10,00,000
5 12,00,000
6 14,00,000
Total 60,00,000
The corporate tax rate is 30%. You are required to calculate the cash
flows after tax but before depreciation and comment on the suitability
of the machine bases on pay-back period.
Q4) a) A proforma cost-sheet of a company provides the following particulars:

[10]
Element of Cost Cost per unit (Rs.)
Raw Material 80
Direct labour 30
Overheads 60
Total cost of production 170
Profit 30
Selling price 200
Following further particulars are available :
i) Raw Materials are in stock on an average one
month. i ) Materials are in process on an average half
a month.
iii) Finished goods are in stock on an average one month.
iv) Credit allowed by suppliers is one month.
v) Credit allowed to debtors is two months.
vi) Lag in payment of wages and overheads are 1 month.
vii) One fourth of the output is sold against cash.
viii) Cash on hand and at bank is expected to be Rs.25,000.
You are required to prepare a statement showing the working capital needed
as per total approach method of working capital to finance a level of activity
of 60,000 units of production annually. The production is carried out evenly
throughout the year.
OR
b) The cost structure of a company’|'s product is as follows :-
Cost Per Unit Amount (Rs.)
Raw Material 20
Direct Labour 5
Overheads 15
Profit 10
Selling price 50
i) The annual production is 2,40,000 units.
i) It is the policy of the company is to maintain the stock of raw
materials equivalent to one month’|'s production.
iii) Half a month’|'s production will remain in process throughout the
year (Stage of completion 50%).
iv) The finished goods remain in warehouse on an average for a
month.
v) The company sells its goods on credit and allows two months credit to
its customers.
vi) The suppliers of raw materials provide 3 months credit to the
company. vii) The period of lag for wages and overheads is one
month.
viii) A minimum cash balance of Rs. 25,000 is expected to be maintained.
You are required to prepare a statement showing working capital
requirement as per cash cost approach method of working capital
estimation.
Q5) a) i) A leading company manufacturing cosmetics is in need of a

capital for it’|'s expansion plans. Which factors do you think are
required to be considered for raising the long-term funds to
i) finance the capital
The entire plan?[5]structure of a company is provided along with
the tax adjusted cost of each component. Determine the weighted
average cost of capital (WACC). [5]
Components of Amount (Rs) Tax adjusted cost of
Capital Capital
12% Debentures 30,00,000 8%
9% Preference shares 20,00,000 9%
Equity Shares 50,00,000 14%
OR
b) i) State the various assumptions made in capital structure theories.
i) [5]
Rajaram Ltd. Has the following capital structure. [5]
Particulars Market values Book values Component cost
%(Post - Tax)
Equity Capital 80 120 18
Pref. Share Capital 30 20 15
Secured Debentures 40 40 14
Calculate weighted average cost of capital (WACC) of the company
based on both book and marked values.
ØØØ
Total No. of Questions : 5] SEAT No. :
P1951 [Total No. of Pages : 2
[4770] - 2003
(203) : HUMAN RESOURCE MANAGEMENT
(2013 Pattern)
1) Answer all the questions.
2) All questions carry equal marks.
Ql) a) Define HRM & explain various functions of HRM. [10]

OR
b) What are the strategic functions of HRM understood and implemented
in the company. Discuss.
Q2) a) What is need of man power planning in an organization? Discuss its

benefits & process in detail. [10]
OR
b) Explain in your own language internal & external sources of
recruitment.
Q3) a) Define training and explain the significance & steps of training needs
assessment. [10]
OR
b) Design a training programme. For newly inducted employees in the
sales department of a pharmaceutical company.
Q4) a) Explain the concept of performance appraisal & discuss how it is

different from performance management system. [10]
OR
b) Explain the advantages & problems of linking compensation with
performance.
P.T.O.
Total No. of Questions : 9]
SEAT No. :
[52a5] - 22
M.B.A. - I
(Semester - II) (2008 Pattern)
Time : 3 Hours] [Max. Marks :70

1) Question No.1 is compulsory.
2) Attempt any two questions from section I and Section II.
3) Figures to the right side indicate full marks.
4) Use of non programmable calculators are allowed.
Ql) Explain the evolution of Financial Management? [10]
SECTION - I
Q2) What is Overcapitalization? Explain the causes of overcapitalization. [15]
Q3) Explain in detail the various factors affecting dividend policy of the firm?
[15]
Q4) Explain in detail the demerits of raising the fund by way of the following:
[15]
a) Equity.
b) Debentures.
c) Public deposits.
Q5) Write short notes on (Any 3) [15]

a) Performa of Balance Sheet as per companies act 1956.
b) Types of Budget.
c) Management of Receivables.
d) Bonus Share.
e) Types of leverages.
f) Performa of Fund Flow Statement.
[52a5] - 22 1 P.T.O.
SECTION - II
Q6) A company is considering an investment proposal to install a new machine.
The project will cost Rs. 50,000 and will have life and no salvage value. Tax
rate is 50 percent, The company follows SCM of deprication. The net
earnings before deprication & tax is as follows:
[15]
Year 1 2 3 4 5
EBDT 10,000 11,000 14,000 15,000 25,000
Evaluate the project using
a) PBP
b) NPV at
12Y. c)
ARR.
Q7) Vijay is a finance consultant. His client “Yes Infotech”, is about to open a
new branch in Mumbai. Finance has been provided with respect to fixed
assets. Guru is the Managing director of yes infotech. He himself ask vijay
about the working capital requirements of the company. Following
information is provided
to Vijay by Guru. [15]
Particular Average Credit Period Estimate for 1st year(Rs.)
Purchase of Material 6 weeks 26,00,000
Wages 1½ Weeks 19,50,000
Overheads
Rent 6 Months 1,00,000
Director’|'s Salary 1 Month 3,60,000
Office staff salary 2 Months 4,55,000
Other Overheads 2 Months 6,00,000
Cash Sales - 1,40,000
Avg. amt. of stock & WIP - 3,10,000
Travellers Commission 3 Months 2,00,000
Credit Sales 7 Weeks 65,00,000
Avg.amt. of undrawn profits - 3,10,000
[52a5] - 22 2
Note: Sales were made even throughout the years & Calculate working
capital requirement of the company.
[52a5] - 22 3
Q8) VITS Comp. has currently, an ordinary share capital of Rs. 25 Lakhs,
consisting of 25,000 shares of Rs. 100 each. The management is planning to
raise another Rs. 20 Lakhs to finance major expansion programme,
through one of the possible four alternatives.
[15]
a) Entirely through ordinary shares.
b) Rs. 10,00,000 through ordinary shares and Rs. 10 lakhs through long
term borrowings at 8% interest per annum.
c) Rs. 5 lakhs through ordinary shares and Rs 15 lakhs through long term
borrowings at 9% interest per annum.
d) Rs. 10 lakhs through ordinary shares and Rs. 15 lakhs through
preference shares with 5% dividend.
The company’|'s expected EBIT is Rs. 8 lakhs. Assume tax rate 50%.
Determine
EPS and suggest which alternative should be prefered and why?
Q9) Calculate the ratios from the data given : [15]

Current Ratio = 2.6
Liquid Ratio = 1.4
Working Capital = Rs. 1,10,000
Calculate
a) Current asset. [4]
b) Current Liabilities. [4]
c) Liquid assets. [4]
d) Stock. [3]
SEAT No. :
[5165]-22
M.B. A. - I (Semester - II)
(2008 Pattern)
Time : 3 Hours] [Max. Marks : 70
1) Question No. 1 is compulsory.
2) Attempt any two questions from Section-I and two questions from Section-
II.
4) Use of non-programmable calculator is allowed.
Q1) Explain the scope of Financial Management. [10]
SECTION - I
Q2) What is working capital? Explain the factors which affect the working
capital requirement of a firm.
[15]
Q3) Discuss in detail the various factor affecting the dividend policy of the
company. [15]
Q4) Explain in detail the merits and limitations of raising the funds by way of
the following : [15]
a) Equity shares
b) Debentures
c) Preference shares
Q5) Write short notes on (any three) : [15]

a) Proforma of Balance sheet as per companies Act 1956.
b) Undercapitalization.
c) Trading on Equity
d) Types of leverages.
e) Proforma of funds flow statement
P.T.O.
SECTION - II
Q6) Mr. Vijay Traders is the purchase manager of orient pharma company is
considering to purchase a machine for production of new life saving drug.
As per the finance managers proposal the new drug will generate an annual
profit of K15,00,000 per year for first 5 years. Material cost for production
is expected to be K4,50,000 p.a., Labour Cost will came to K5,50,000 p.a.,
other expenses will be K1,50,000 p.a. Cost of machine is K5,00,000 with
expected. Scrap value is NIL, with a life of 5 years. Company uses straight
line method of depreciation. Income Tax is 50% and cost of capital is 12%.
Machine will require an investment of working capital of K75,000 which
will be recovered at the end of 5th year.
Advise the company about purchase of the machine by using NPV method.
[15]
Q7) A proforma cost sheet of a company provides the following information.[15]
Particulars Amt
(Cost per unit)
Raw Material 38.5
Direct Labour 11.8
Overheads (including
depreciation K5) 32.0
Total Cost 82.3
Profit 17.7
Selling price 100.0
Additional information :
a) Average raw material in stock four weeks.
b) Average materials in processes (RM 100% and Direct Labour &
overheads 50%) Half a Month.
c) Average finished goods in stock four weeks.
d) Credit allowed by suppliers one month.
e) Credit allowed to customer eight weeks.
f) Lag in payment of wages two weeks.
g) Cash at bank is expected to be L 1,00,000.
All sales are credit sales and add 10%. contingency margin. You
may assume that production is carried on evenly throughout the year
and wages and overheads accure similarly.
[5165]-22 2
Q8) The present EBIT of ABC Ltd. is K20,00,000. The company is planning to
raise K50,00,000/- to finance its expansion plan. The following alternatives
are available [15]
a) Issue of 12% debentures.
b) Issue of K2,50,000 equity shares at par and the balance by debentures
at 12% interest.
c) Issue 10% preference shares of K25,00,000 and balance at 15% term
loan.
The present capital structure of the company consists of
K5,00,000 equity shares of L 10 each.
Advise the company which one of the above alternative is
profitable.
Q9) Following is the Balance sheet of xyz Ltd. [15]

Liabilities Amt. Assets Amt.
Equity capital 10,00,000 Good will (at cost) 5,00,000
6% preference capital 5,00,000 Plant & machinery 6,00,000
General Reserve 1,00,000 Land & Building 7,00,000
Profit and Loss 4,00,000 Furniture 1,00,000
Provision for Taxation 1,76,000 Inventories 6,00,000
Bills payable 1,24,000 Bills Receivable 30,000
Bank over draft 20,000 Debtars 1,50,000
Creditors 80,000 Bank 2,00,000
12% Debentures 5,00,000 Short term Investment 20,000
29,00,000 29,00,000
Calculate :
a) Current ratio
b) Liquid ratio
c) Absolute liquid ratio
d) Debt to equity ratio
e) Current asset to fixed asset ratio.
GGG
Total No. of Questions :7]
SEAT No. :
[53a5]-22
M.B.A-I
(2008 Pattern) (Semester-II)
1) Attempt any five questions.
2) All questions carry equal marks.
Ql) Explain the functions of Financial Management. [14]
Q2) Write short notes (Any Two) : [14]

a) Dividend Policy
b) Causes of under
capitalization c) Types of
leverages
d) Internal Rate of Return
Q3) ABC Limited is considering an investment in project costing Rs. 12,00,000.

Expected cash flow (Before tax & depreciation) are as under. [14]
Year Rs.
1 3,00,000
2 3,00,000
3 4,50,000
4 4,50,000
5 7,50,000
Calculate :
a) Pay Back Period
b) NPV it cost of capital is 10% P.V
Factors at 10% are
Year
1 0.909
2 0.826
3 0.751
4 0.683
5 0.621
[53a5]-22 1 P.T.O.
Q4) Complete the Balance sheet from the given data : [14]
G. Profit (20% of sales) Rs. 60,000
Shareholder’|'s Equity Rs. 50,000
Credit sales to total sales 80%
Total Assets Turnover 3 times
Inventory Turnover 8 times
(To cost of sales)
Average collection period 18 days
(360 days a year)
Current Ratio → 1.6
Long Term Debt to Equity 40%
Balance Sheet
Liabilities Rs Assets Rs
Creditors ? Cash ?
Debtors ?
Long Term Debts ? Inventory ?
Equity 50,000 Fixed Assets ?
? ?
Q5) Prepare a statement showing working capital requirement for a level of

activity of 156000 unit.
R. M. @ Rs. 90 per unit
Direct Labour @ Rs. 40 per unit
Overheads@ Rs 75 per unit
Profit @ Rs. 60 per unit
Selling price @ Rs. 265 per unit
a) R. M. in stock on an average for 1 month.
b) W/P (50% complete) on an average for two weeks.
c) Finished goods on an average for one month.
d) Credit allowed by supplies is one month
e) Debtors are allowed 2 months credit.
f) Wages time lag in payment 1½
weeks. g) Overheads time lag is one
month.
h) 20% of sales are for cash.
i) Cash in hand and at bank are expected Rs. 60,000
(Assume 4 weeks is equal to one month)
[53a5]-22 2
[14]
[53a5]-22 3
Q6) Balance sheets of ABC Ltd.
Equity capital 30,00,000 400000 Goodwill 1,15,000 90000
8% Redeemable 1,50,000 100000 Land & Building 200000 170000
Pref. shares
Gen. Reserves 40,000 70000 Plant 80000 200000
P&L A/C 30,000 48000 Debtors 160000 200000
Prop. Dividend 42,000 50000 Stock 77000 109000
Creditors 55000 83000 Bills Receivable 20000 30000
Bills Payable 20000 16000
Taxation provision 40,000 50000 Cash in hand 15000 10000
Bank Balance 10000 8000
Total 677000 817000 Total 6,77000 817000
a) Depreciation charged on plant & land and Bldgs. 10,000 & 20,000
respectively for 2010-11
b) Interim dividend of Rs. 20000 has been paid in 10-
11. c) Income tax paid during 2010-11 is Rs. 35,000
Prepare funds flow statements [14]
Q7) Explain the concept of leverages. Briefly explain the types of leverages. [14]
¼¼¼¼
SEAT No. :
P380a [Total No. of Pages : 9
[52a5]-202
M.B.A.
202 : - FINANCIAL MANAGEMENT
(2013 Pattern) (Semester - II)
2) Each question has an internal options.
7) Use of Simple Calculator is permitted.
Ql) a) “The Financial Manager’|'s primary task is to plan for acquisition and
use of funds so as to maximize the value of the firm”. Do you agree?
Comment. [10]
OR
b) Explain the role of Finance Manager in detail. [10]
Q2) a) Following are the summarized Balance Sheet of Prakash Ltd. as on 31st
March, 2015 and 2016. You are required to prepare a Funds Flow
Statement for the year ended 31st March, 2016. [10]
Balance Sheet
Liabilities 2015 2016 Assets 2015 2016
Amount Rs. Amount Rs. Amount Rs. Amount Rs.
Share Capital 20,000 25,000 Goodwill - 500
General Land and
Reserve 5,000 6,000 Building 20,000 19,000
Profit & Loss Plant and
A/c 3,050 3,060 Machinery 15,000 16900
Long Term
Bank Loan 7,000 13,520 Stock 10,000 7,400
Creditors 15,000 - Debtors 8,000 6,420
Provision for
Tax 3,000 3,500 Cash in Hand 50 860
Total Rs. 53,050 51,080 Total Rs. 53,050 51,080
P.T.O.
Additional Information:
i) Depreciation written-off on Plant and Machinery Rs. 1,400 and on
Land and Building Rs. 1,000.
i) Provision for Tax was made during the year Rs. 3,300.
iii) Dividend of Rs. 2,300 was paid.
OR
b) The standard ratios for the industry and the ratios of Pratibha Ltd. are
given below. Comment on the financial position of the company
compared to industry standards and give suggestions for improvement:
[10]
Ratio Industry Standard Ratio Ratio of Pratibha Ltd.
Inventory turnover Ratio 8 5
Average Collection Period 36 42
Debt Equity Ratio 2:1 1.40:1
Net Profit Ratio 17% 17.7%
Price to Earnings Ratio 16 5.88
Q3) a) Shruti Ltd. is planning an investment in new project. The investment

budget of the company is Rs. 2,800. The company has following two
investment alternatives: [10]
Particulars Year Project P Project Q
Initial Investment Rs. 0 2,800 2,800
Cash Inflows (in Rs.) 1 400 2,000
2 800 1,600
3 1,200 800
4 1,800 400
5 2,400 400
[52a5]-202 2
Compute the Profitability Index and Net Present Value at 10% cost of
capital and suggest which project is profitable for the company.
OR
b) Shlok Ltd. is considering an investment proposal to install a new
machine.
The project will cost Rs. 50,000 and will have a life of 5 years and no
salvage value. The company’|'s tax rate is 35% and no investment
allowance is allowed. This firm uses straight line method of
depreciation. The estimated net income before depreciation and tax
from the proposed investment proposal are as follows:
[10]
Year Net Income before Depreciation & Tax (Rs.)
1 10,000
2 11,000
3 14,000
4 15,000
5 25,000
Compute the following:
i) Pay Back period.
ii) NPV
iii) Profitability index
Q4) a) A proforma cost sheet of a Ramachandra Ltd. provides the following

data: [10]
Cost Per Unit Rs.
Raw Material 10
Direct Labour 4
Overheads 3
Total cost 17
Profit 3
Selling Price 20
The following is the additional information
available: Average raw material in stock: one
month;
Average works in process: half a month,
Finished goods in stock: on average one month.
Credit allowed to debtors - one month.
Credit allowed by suppliers - one month. Time
lag in payment of wages - one month. Time lag
in payment of overheads - one month.
Cash balance is expected to be Rs. 10,000.
needed to finance a level of activity of 60,000 units of output as per
Total cost
Approach Method of Working Capital Estimation. You may assume
that production is carried on evenly throughout the year and wages and
overheads accrue.
OR
b) The cost structure of a company’|'s product is as follows: [10]
Raw Material 20
Direct Labour 5
Overheads 15
Total Cost of Production 40
Profit 10
Selling Price 50
i ) It is the policy of the company is to maintain the stock of raw
year.
month. v) The company sells its goods on credit and allows two
months’|'
credit to its customers.
company.
vii) The period of lag for wages and overheads is one month.
viii) A minimum cash balance of Rs. 25,000 is expected to be
maintained. You are required to prepare a statement showing
working capital requirement as per Cash Cost Approach method of
Working Capital
Estimation.
Q5) a) Explain the different factors affecting the capital structure. [10]
OR
b) Write a note on NI and NOI Approach. [10]
SEAT No. :
[5165]-202
(2013 Pattern) (Revised)
Time : 2:30 Hours] [Max. Marks : 50
Q1) a) What are the key strategies of financial management? [10]
OR
b) Define financial management. Write goals of financial management. What

are the various approaches to financial management.
Q2) a) From the following information of "ABC Ltd." Write down the
interpretation of each ratio given below. [10]
Sn. Particulars of Ratio for the Ratio for the
No the ratio year - 2016 year - 2017
1. Current Ratio 2:1 2.5:1
2. Stock turnover Ratio 6 times 8 times
3. Quick Ratio 0.80:1 0.75:1
4. Net project Ratio 20% 25%.
OR
P.T.O.
b) You are required to prepare funds flow statement and statement
showing changes in working capital.
You are also required to compute "funds from operation".
Balance sheets of "R-Ltd. is given below
Liabilities 2015 2016 Assets 2015 2016
(Rs) (Rs) (Rs) (Rs)
Sundry creditors 39,500 41,135 Cash at bank 2,500 2,700
Bills payable 33,780 11,525 Sundry debtors 87,490 73,360
Bank overdraft 59,510 - Stock 1,11,040 97,370
Provision for taxation 40,000 50,000 Land & Buildings 1,48,500 1,44,250
Reserves 50,000 50,000 Plant & m/c 1,12,950 1,16,200
profit & Loss A/c 39,690 41,220 Good will - 20,000
Share captial 2,00,000 2,60,000
4,62,480 4,53,880 4,62,480 4,53,880
Additional information :
1) During the year 2016, an interim dividend of Rs. 26,000 was paid.
2) The assets of another Co. were purchased for Rs.60,000 payable in
fully paid up shares of the company. The assets consisted of stock Rs.
22,000, machinary Rs. 18,000 & Goodwill Rs. 20,000.
3) Purchase of plant for cash Rs. 5,600 was made in 2016.
4) Income tax paid during 2016 Rs. 25,000.
Q3) a) From the following information of 'PQR Ltd.' calculate : [10]

1) NPV 2) PI
3) Pay Back Period 4) ARR
Year CFAT p/v factor at 10%
1 20,000 0.909
2 30,000 0.826
3 40,000 0.751
4 60,000 0.683
5 50,000 0.621
OR
[5165]-202 2
b) A company is considering to purchase a machine. Two machines are
available "M/c-X" & "M/c-Y" costing Rs. 50,000 each. Earnings after
taxation are expected to be as follows:
Year CFAT "M/c-x'' CFAT ''M/c-y'' P/v factor at 10%
1 15,000 5,000 0.9090
2 20,000 15,000 0.8264
3 25,000 20,000 0.7513
4 15,000 30,000 0.6830
5 10,000 20,000 0.6209

Evaluate the two alternatives according to:
i) Pay back period method
ii) Net present value method (NPV)
Suggest the company which M/c should purchase.
Q4) a) From the following data, compute the duration of "operating cycle".[10]
Particulars Amount
1) Stock of Raw materials 40,000
2) Stock of W/p 28,000
3) Stock of finished goods 42,000
4) Purchases 1,92,000
5) Cost of goods sold 2,80,000
6) Sales 3,20,000
7) Debtors 64,000
8) Creditors 32,000
Assume 360 days per year for computation purpose.
b) Calculate the working capital requirement of "R-Ltd."
Particular Cost per unit (Rs.)
Raw material 800
Direct labour 300
Over heads 600
Total Cost 1700
project 300
Selling price 2000
Additional informations:
1) Output 60,000 units per annum.
2) Raw material in stock - Aug. 1 month.
3) W/p - Aug. half. month
(consider 100% Raw material & 50% labour & OH).
4) Finish goods in stock - Aug 1month.
5) Credit allowed by suppliers - Aug. 1 months.
6) Credit allowed to debtors - Aug. 2 months.
7) Delay in payment of wages - Aug. half month.
8) Dalay in payment of over heads - Aug half month.
Assum that production is carried out evenly throughout a year.
All the sales are credit sales.
Q5) a) Discribe the factors affecting on capital structure. [10]

OR
b) Short notes (any two)
i) NI approach
ii) NOI approach
iii) MM approach
[5165]-202 4
SEAT No. :
P1673
[4970]-202
(2008 Pattern)
Time :3 Hours] [Max. Marks : 70
Instructions to the candidates :
1) Q. No. 1 is compulsory.
2) Solve any two questions from section-I and section - II each
SECTION - I
Q1) What do you understand by financial system? Explain the role of financial
system in Indian economy. [10]
Q2) Primary goal of financial Management is said to be maximization of

shareholder’s wealth. Whether this objective is realistic in a world where
corporate ownership and control are often separate. Discuss. [15]
Q3) Describe various provisions of Companies Act, 1956 regarding the

preparation of financial statements of a business organization.
[15]
Q4) What is dividend policy? Describe various theories of dividend with suitable
examples? [15]
Q5) Write short notes on any three of the following. [15]

a) Financial statements
b) Cost of capital
c) Time value of Money
d) Working capital
e) Operating leverage
P.T.O.
SECTION - II
Q6) Following are the ratios in respect of the financial year -2013-14. [15]
a) Debtors turnover ratio 4 times
b) Creditor turnover ratio 8 times
c) Capital turnover ratio 2 times
d) Stock turnover ratio 8 times
e) Fixed asset turnover ratio 8 times
f) Gross profit ratio 25 %
g) Gross profit during the year Rs.1,00,000
h) Reserve and surplus Rs. 35000
i) Closing stock is more by Rs. 20,000 than the opening stock.
j) There are no long-term liabilities towards the outsiders.
You are required to prepare a Balance Sheet as on 31st March 2014
with the help of above information.
Q7) From the following particulars prepare a statement showing working Capital
requirements. [15]
Budgeted sales Rs.2, 60,000 p a.
Analysis of sale
Raw material 30%
Direct Labour 40%
Overheads 20%
90%
Profit 10%
Sales 100%
It is assumed that:
a) Raw materials are carried in stock for 3 weeks and finished goods for 2
weeks.
b) Factory processing will take 3 weeks.
c) Customer will require 8 weeks credit.
It is assumed that production and overheads accrue evenly throughout
the year.
[4970]-202 2
Q8) Ashoka Ltd. is considering the purchase of a new machine. Two alternatives
machine are available having cost price Rs. 2, 00,000 each. The following
inflows are expected during the five years. Life of both the Machines is 5
years each. [15]
Year Machine A(in Rs.) Machine B (in Rs.)
1 20,000 60,000
2 60,000 80,000
3 80,000 1,00,000
4 1,20,000 60,000
5 80,000 40,000
The company is expecting 10% return on its capital. The net present values
of
Re. 1 @10% are given as follows;
1st year 0,909
2nd year - 0.826
3rd year - 0.751
4th year - 0.683
5th year - 0.620
You are required to appraise the proposals on the basis of;
a) Payback Period Method
b) Average Rate of Return Method
c) Net Present Value Method.
Q9) From the following information, calculate the weighted average cost of
capital on the basis of weights assigned as per,
[15] a) Book value and
b) Market Value.
Source of capital Book Value (Rs.) Market Value (Rs.)
Equity Capital 5,00,000 7,50,000
Long term debt 4,00,000 3,75,000
Preference capital 1,00,000 1,00,000
Total 10,00,000 12,25,000
\\\
SEAT No. :
P38a0 [Total No. of Pages : 4
[52a5] - 2001
M.B.A.
(CBCS) (201a Pattern) (Semester - II)
Time : 2¾ Hours] [Max. Marks :50
Ql) a) Describe the finance functions as divided into three broad categories.
[10]
OR
b) Define Financial Management. Explain goals of Financial Management.
[10]
Q2) a) i) Write a note on importance of Capital Structure. [5]

i) Compute (WACC) Weighted Average Cost of Capital based on
following for a Company. [5]
Source Rs. in Lakh
1) Equity Share Capital (20,000 shares) 40
2) 16% Preference share capital 10
3) 14% debentures 30
The company pays dividend at 10%.

OR
b) i) Explain various factors affecting Capital Structure of the
organization. [5]
i) The entire capital structure of a company is provided. Determine
the after tax Weighted Average Cost of Capital (WACC),
assuming
the tax rate of 25%. [5]
Components of Capital Amount (Rs.)
Equity Capital (Expected dividends 11%) 15,00,000
10.5% Preference shares 10,00,000
9% debentures 20,00,000
P.T.O.
Q3) a) The following is Balance Sheet on 31st March 16 of the company. [10]
Liabilities Rs. Assets Rs.
Equity shares of Fixed Assets 35,00,000
Rs. 10 each 6,00,000 Less : Depreciation
Reserve fund 4,00,000 5,00,000 30,00,000
Proft & Loss A/c 5,00,000 Stock 6,00,000
Long term loans 20,00,000 Debtors 5,00,000
Creditors 4,50,000 Cash 1,00,000
Other current liabilities 2,50,000
42,00,000 42,00,000
Additional Information :
i) Profit earned during the year is Rs. 4,50,000.
i ) Market price of share is Rs. 500.
iii) Ignore provisions regarding taxations.
Calculate the following ratios :
1) Debt - Equity Ratio.
2) Current Ratio.
3) Acid Test Ratio.
4) Earning per Share.
5) Price Earning Ratio.
OR
b) From the following balance sheets prepare fund flow statement & also
prepare statement showing changes in working capital.
Balance Sheets
Equity Share Capital 1,00,000 1,20,000 Building 55,400 1,13,200
Preference share capital - 10,000 Machinery 35,600 51,300
General Reserve 6,000 11,000 Furniture 2,400 2,500
Profit & Loss A/c 7,500 20,700 Stock 36,500 38,000
5% Debentures - 26,000 Debtors 32,100 38,000
Sundry Creditors 43,500 48,400 Bank 4,800 4,000
Bank Overdraft 9,800 10,900
1,66,800 2,47,000 1,66,800 2,47,000
Adjustment:
Depreciation written off during the year on machinery Rs. 12,800 &
furniture Rs. 400. [10]
Q4) a) From the following information of a Company suggest which of the

machine to be purchased Expected earnings after tax are given below.
Each machine requires investment of Rs. 4,00,000. [10]
[52a5] - 2001 2
Year Machine A Machine B
Cash Flow Cash Flow
0 (4,00,000) (4,00,000)
1 40,000 1,20,000
2 1,20,000 1,60,000
3 1,60,000 2,00,000
4 2,40,000 1,20,000
5 1,60,000 80,000
Cost of Capital is 10%. Calculate Net present value & profitability
Index.
OR
b) M/s. Balkrishna Industries Ltd. has following investment proposal which
requires investment of Rs. 53,00,000 & has following income as cash
inflows;
Year Cash Inflows
1 16,00,000
2 18,00,000
3 20,00,000
4 15,00,000
5 15,00,000
6 10,00,000
Assume cost of capital as 10% Calculate payback period, Net Present
Value and Profitability Index. [10]
Q5) a) Prepare a statement showing working capital requirement to finance a

level of activity of 10,400 units per year. The cost structure is provided
below;
Particulars Cost / unit (Rs.)
Raw material 10
Direct Labour 5
Overheads 7
Profit 5
i) Average raw material in stock-one month.
i ) Average material in process - 2 weeks (Assume 50% of
completion stage with full material consumption).
iii) Average finished goods in Stock-one and half month.
iv) Credit allowed by suppliers - one month.
v) Credit allowed to debtors - one month.
vi) Time lag in payment of wages - 2
weeks.
vii) Time lag in payment of overheads - 1 month.
[52a5] - 2001 3
viii) Cash basis sales - 25%.
ix) Cash balance is expected to be Rs. 15,000.
The production is carried out evenly throughout the year. [10]
OR
[52a5] - 2001 4
b) From the following information, you are required to estimate the net
working capital
Particulars Cost per Unit (Rs.)
Raw material Rs. 400
Direct Labour Rs. 150
Overhead (Excluding depreciation) Rs. 300
Total Cost 850
• Selling price : Rs. 1000 per unit.
• Output - Rs. 52,000 units per annum.
• Raw material in Stock-Average 4 weeks.
• Work in progress (Assume 50% of completion stage with full
material consumption) - Average 2 weeks.
• Finished goods in stock - Average 4 weeks.
• Credit allowed by suppliers - Average 4 weeks.
• Credit allowed to Debtors - Average 8 weeks.
• Cash at Bank - Rs. 50,000/-.
Assume that production is carried out evenly throughout the year.
Assume
52 weeks equal to one year. All sales are on credit basis. [10]
SEAT No. :
[53a5]-2002
M.B.A.
(Semester-II) (201a Pattern)
Time : 2¾ Hours] [Max. Marks : 50
2) Each questions has an internal option.
Ql) a) Describe modern approaches to financial management. [10]

OR
b) Explain functions of finance manager and key strategies of financial
management. [10]
Q2) a) i) Explain factors affecting capital structure. [5]

i) Mamta limited has following capital structure. [5]
Source Rs.
Equity capital (Expected dividend 12%) 5,00,000
10% Preference Shares 2,50,000
8% Loan 7,50,000
You are required to calculate the WACC, Assuming 50% as the rate of
Income tax before and after tax.
OR
b) i) Explain concept and measurement of cost of capital. [5]
i) The entire capital structure of a company is provided along with
the tax adjusted cost of each component. Determine the WACC.
[5]
Source Amount (Rs.) Tax adjusted cost of capital
12% Debenture 30,00,000 8%
9% Preference share capital 20,00,000 9%
[53a5]-2002 1 P.T.O.
Q3) a) The following data are extracted from the published accounts of two
companies, ABC Ltd. and XYZ Ltd. In an industry.
Particulars ABC Ltd XYZ Ltd
Sales Rs. 32,00,000 Rs.30,00,000
Net profit after tax 1,23,000 1,58,000
Equity Capital (Rs. 10 per
share fully paid) 10,00,000 8,00,000
General reserves 2,32,000 6,42,000
Long-term debt 8,00,000 5,60,000
Creditors 3,82,000 5,49,000
Bank credit (short-term) 60,000 2,00,000
Fixed assets 15,99,000 15,90,000
Inventories 3,31,000 8,09,000
Other current assets 5,44,000 4,52,000
Prepare a statement of comparative ratios showing liquidity,
profitability, activity and financial position of the two companies. [10]
OR
b) Prepare fund flow statement. [10]
Bank OD 1,16,000 55,000 Fixed Assets 62,000 70,000
Creditors 99,800 1,19,200 Addition 8,000 17,000
Prop. Div. 16,000 24,000 70,000 87,000
Debentures 10,000 Depreciation 25,000 36,000
P&L 35,200 48,500 Net 45,000 51,000
Gen. Reserves 26,000 38,000 Investment 10,000 15,000
Share capital 75,000 1,00,000 Stock 1,81,500 1,90,000
Debentures 1,31,500 1,38,700
3,68,000 3,94,700 3,68,000 3,94,000
[53a5]-2002 2
Q4) a) ABC Ltd. is planning investment in new project. The investment of the
company is Rs. 30,00,000. The company has following two
alternatives. Assume cost of capital at 12%
Particulars Project A PV at 12%
1 7,00,000 0.893
2 10,00,000 0.797
3 9,00,000 0.712
4 8,00,000 0.636
5 4,00,000 0.567
Find out Payback period, Net present value and Profitability of index. [10]
OR
b) A leading apparel Mfg. Co. is considering a replacement of its existing
cutting machine with a new automatic machine to improve the
productivity. The cost of new machine is Rs. 25 lakhs. The cost of the
company’|'s capital is 10%. The incremental cash flows projected during
five years period are estimated as follows.
Year 1 2 3 4 5
Cash flows
(Rs. In lakhs) 2.5 5.0 8.0 10.0 12.5
PVF at 10% 0.909 0.826 0.751 0.683 0.621
Q5) a) From the following projections of XYZ Ltd. for the next year, you are
required to work out the Working Capital (WC) required by the
company. [10]
Annual Sales Rs. 14,40,000
Cost of production including 12,00,000
depreciation Rs. 1,20,000
Raw material purchases 7,05,000
Monthly expenses 30,000
Anticipated opening stock of raw
materials 1,40,000
Anticipated closing stock of raw
materials 1,25,000
Inventory Norms :
Raw Materials (month) 2
Work-in-progress (days) 15
Finished goods (month) 1
The firm enjoys the credit of 15 days on its purchases, and allows 1
month’|'s credit on its supplies. The company has received an advance of
Rs. 15,000 on sales orders. You may assume that production is carried
on evenly throughout the year, and minimum cash balance desired to
be maintained is Rs. 10,000
OR
b) From the following information you are required to estimate the net
working capital.
Particulars Cost per unit (Rs.)
Raw Material Rs. 400
Overhead (Excluding depreciation) Rs. 300
Total Cost 850
i) Selling price : Rs. 1000 per unit
i ) Output : Rs. 52,000 units per annum
iii) Raw materials in stock : Average 2 weeks
iv) Work in progress (Assume 50% of completion stage with material
consumption) Average 2 weeks
v) Finished goods in stock : Average 4 weeks
vi) Credit allowed by suppliers : Average 4
weeks vii) Credit allowed to Debtors : Average
8 weeks viii) Cash at Bank : Rs. 50,000
Assume that production is carried out evenly throughout the year.
Assume
52 weeks equal to one year. All sales are on credit basis. [10]
¼¼¼¼
SEAT No. :
[4375] - 202
(2008 Pattern)
Time : 3 Hours] [Max. Marhs :70
1 ) Q.No. 1 is compulsory.
2 ) Folve any two questions from Fection - I and Fection - II.
3 ) Figures to the right side indicate full marks.
4 ) Use of non programmable calculator is permitted.
Ql) Explain in detail the role of a finance manager. [10]
SECTION - I
Q2) Define over capitalization? Explain the causes of over capitalization. [15]
Q3) a) Briefly discuss the different types of dividend. [5]

b) Explain the various factors affecting dividend policy of a firm. [10]
Q4) What are specific cost of capital? How will you calculate Weighted Average
Cost of Capital (WACC)? [15]
Q5) Write short notes on : (Any Three) [15]

a) Factoring.
b) Operating cycle.
c) Limitations of ratios
d) Bonus shares
e) Proforma of Balance sheet as per schedule VI of companies Act 1956.
P.T.O.
SECTION - II
Q6) Assume that a firm has owner’|'s equity of 7 100000. The ratios for the firm
are, [15]
Short - term debt to total debt = 0.4
Total debt to owner’|'s equity = 0.6
Fixed Assets to owners equity = 0.6
Total Assets turnover = 2 times
Inventory turnover = 8 times
Compute the following Balance sheet
Balance Sheet
Liabilities 7 Assets 7
Short term debt Cash
Owners equity Inventory
Long term debt Fixed Assets
Q7) A company is considering the replacement of its existing machine which is

obsolete. The company has two alternatives. [15]
a) to buy machine A which is similar to the existing machine or.
b) to go in for machine B which is more expensive and has much greater
capacity.
The cash flow at the present level of operations under the two
alternatives are as follows.
Cash flow (in lach of 7) at the end of the year
Machine 0 1 2 3 4 5
Machine A −25 − 5 20 14 14
Machine B −40 10 14 16 17 15
P/V factor @10% .909 .826 .751 .683 .621
The company’|'s cost of capital is 10%. The finance manager tries to
evaluate the machines by calculating
i) NPV ii) PI
iii) PBP & iv) Discounted PBP.
At the end of his calculations, however, the finance manager is
unable to make up his mind as to which machine to recommend.
You are required to make these calculations and in the light there
of to advise the finance manager about the proposed investment.
[4375]-202 2
Q8) From the following information. Prepare estimated working capital
requirement statement. [15]
Projected annual sales 26000 units
Selling price per unit 7 60.
Analysis of selling price.
Material − 40%
Labour − 30%
Overheads − 20%
Profit − 10%
Duration & various stages of operating cycles are expected to be as follows.
1) Raw material in stock 4 weeks
2) Production process 4 weeks
3) Debtors − 5 weeks
4) Creditors − 3 weeks
5) Lag in payments of wages and overheads 2 weeks
6) Finished goods 2 weeks
7) Cash in hand 32000.
8) 52 weeks to be considered in a year.
Q9) Calculate DOL, DFL & DCL for the following firms & Comment on the
results. [15]
A B C
Output (units) 60,000 15,000 1,00,000
Fixed costs (7) 7,000 14,000 1,500
Variable cost per unit (7) 0.20 1.50 0.02
Interests on borrowed funds 4,000 8,000 −
Selling price P.U (7) 0.60 5.00 0.10
Tax rate is 30% in all cases.
GGG
SEAT No. :
[4175] - 202
M.B.A.
202 : FINANCIAL
MANAGEMENT (2008 Pattern)
(Sem. - II)
Time :3 Hours] [Max. Marks :70
Instructions to the candidates:-
1 ) Question number 1 is compulsory.
2 ) Attempt any two questions from section I & section II.
3 ) Use of simple calculator is allowed.
4 ) Figures to the right indicate full marks.
Q1) What is Financial system? Explain its functions. [10]
SECTION - I
Q2) Explain in detail various sources of finance available to support working
capital needs? [15]
Q3) What are the limitations of financial statements? What do you understand
by analysis of financial statement? Describe the uses of such analysis. [15]
Q4) Define capitalization. Explain the various theories of capitalisation. [15]
Q5) Write short notes (Any Three) [15]

a) Capital Rationing.
b) Bonus shares
c) Time value of money.
d) Cash Management.
e) Financial planning.
SECTION - II
Q6) Prepare an estimate of working capital requirement from the following data
of a trading concern.
[15] a) Projected annual sales 80,000 units.
b) Selling price Rs. 8 per unit.
c) Percentage net profit as sales 20.
d) Average credit period allowed to customers – 10 weeks.
P.T.O.
e) Average credit period allowed to suppliers – 8 weeks.
f) Average stock holding in terms of sales requirement – 10 weeks.
g) Allow 20% for contingies.
Assuming 52 weeks in a year.
Q7) The directors of Bharucha Enterprises Ltd ask you to ascertain : [15]
a) Proprietor’s fund
b) Fixed Assets.
c) Closing Debtors.
d) Closing Creditors.
e) Closing Stock.
f) Share Capital.
g) Cash and Bank Balance.
From the following information
:
i) Inventory turnover ratio is 6 times.
Year end debtors are outstanding for 2 months.
Year end creditors are outstanding for 73 days.
ii) Ratios of cost of goods sold to :
1) Proprietor’s funds is 2 : 1.
2) Fixed Assets is 4 : 1.
iii) Ratio of gross profit to sales is 20%
iv) Closing stock is greater than opening stock by Rs. 10,000 /-
v) The gross profit for the year ended 31st March 2011 is Rs. 1,20,000.
vi) Reserves and surplus appearing in the Balance sheet as at 31st March
2011 total to Rs. 40,000/-
Q8) A company is considering an investment proposal to install a new machine.

The project will cost Rs. 50,000 and will have a life of 5 years and no salvage
value. The company’s tax rate is 35% and no investment allowance is
allowed. This firm uses straight line method of depreciation. The estimated
net income before depreciation and tax from the proposed investment
proposal are as follows :[15]
Year Net income before depreciation & tax (Rs.)
[4175]-202 2
1 10,000
2 11,000
3 14,000
4 15,000
5 25,000
[4175]-202 3
Compute the following :
a) Pay back period.
b) Average Rate of Return.
c) Net present value at 10% discount Rate. d)
Profitability index at 10% discount Rate.
Following are the present value factors @ 10%.
Year P.V. Factors at 10% Year P.V. factors at 10%
1 0.909 4 0.683
2 0.826 5 0.751
3 0.621
Q9) Calculate operating, financial and combined leverage under financial plan X
and financial Plan Y when the fixed costs are Rs. 50,000 and Rs. 1,00,000
in two different situations. The information regarding capital structure and
other data are as under.
[15]
Rs.
Total Assets 5,00,000
Total Assets turnover based on sales 2
Variable cost as percentage of sales 60
Financial Plan ‘X’ Financial Plan ‘Y’

(Rs) (Rs)
Equity 5,00,000 1,00,000
10% debenture 1,00,000 5,00,000

SEAT No. :
[4870]-202
M.B.A.

1) Question No. 1 is compulsory.
2) Attempt any two questions from Section I and Section II.
3) Use of simple calculator is allowed.
4) Figures to the right indicate full marks.
Ql) Explain in detail the scope and functions of financial management? [10]
SECTION - I
Q2) What is financial planning? Explain the characteristics & process of
Financial
Planning. [15]
Q3) What do you mean by undercapitalization & overcapitalization? Explain the

causes & effects of the same. [15]
Q4) Define dividend. Explain the various factors affecting the dividend policy of
a firm. [15]
Q5) Write Short Notes on (Any 3): [15]

a) Time value of Money.
b) Management of Cash.
c) Fund Flow Analysis.
d) Trading on Equity.
e) Bonus Shares.
P.T.O.
SECTION - II
Q6) Estimate working requirements for financing an activity of 52,000 units of
production at the following cost. [15]
Particulars Cost per unit
Raw Material Rs. 60
Overheads Rs. 40
Total Cost Rs. 125
Profit Rs. 40
Selling Price Rs. 165
Additional information:
a) Raw Material in stock - 4 weeks.
b) Work in progress - 2 weeks.
c) Finished goods - 4 weeks.
d) Credit period allowed to customer - 2 months
e) Credit period allowed by Suppliers - 1 month
f) Delay in payment of wages - 2 weeks.
g) Delay in payment of overheads - 1 month
Out of total sales, cash sales is 50%
Cash balance is expected - Rs. 12,500.
(Assume 1 year is equivalent to 52 weeks)
Q7) Calculate the operating, financial & combined leverage from the following
details: [15]
Selling price per unit = Rs. 150
Variable Cost per unit = Rs. 100
Fixed Costs = Rs. 6,00,000
Production & Sales = 20,000 units
The capital structure of the company under alternate financing plan is as follows:
Particulars Plan I Plan II
Equity Capital 20,00,000 10,00,000
16% Debentures 10,00,000 20,00,000
Total: 30,00,000 30,00,000
[4870]-202 2
Q8) Using the following data, prepare the balance sheet. [15]
Gross profit (20% of sales) Rs. 60,000
Shareholder’|'s Equity Rs. 50,000
Credit Sales to total sales 80%
Total assets Turnover 3 times
Inventory Turnover (to cost of sales) 8 times
Average collection period (360 days a year) 18 days
Current Ratio 1.6
Debt Equity Ratio 40%
Q9) A company has to select one of the following two projects. [15]
Project A Project B
Investment 11,000 10,000
Total Inflows
Year 1 6,000 1,000
Year 2 2,000 1,000
Year 3 1,000 2,000
Year 4 5,000 10,000
Calculate
a) Pay Back Period
b) NPV @ 12%.
³ ³ ³
SEAT No. :
P1724 [Total No. of Pages :5
[4970] - 2002
M.B.A.
(Semester - II) (2013 Pattern) (CBCS)
Time : 2½ Hours] [Max. Marks :50

7) Use fo Simple Calculator is permitted.
Ql) a) “Financial Management is something more than an art of accounting

and book-keeping”. Explain. [10]
OR
b) ‘A Finance Manager is a person who is responsible in a significant

way to carry out the finance functions’|'. Justify. [10]
Q2) a) Following are the summarized Balance Sheet of Abhijit Ltd. as on 31st
March, 2014 and 2015. You are required to prepare a Funds Flow
Statement for the year ended 31st March, 2015. [10]
Balance sheet
Liabilities Amount Rs. Amount Rs. Assets Amount Amount

3l.3.20l4 3l.3.20l5 Rs. Rs.
Share Capital l,00,000 l,25,000 Goodwill ----- 2,500
General Reserve 25,000 30,000 Land and l,00,000 95,000
Profit & Loss A/c l5,250 l5,300 Building Plant 75,000 84,500
Long Term Bank 35,000 67,600 and Machinery 50,000 37,000
Loan Creditors 75,000 ------- Stock 40,000 32,l00
Provision for Tax l5,000 l7,500 Debtors 250 4,300
Total Rs. 2,65,250 2,55,400 Total Rs. 2,65,250 2,55,400
P.T.O.
i) Depreciation written-off on Plant and Machinery Rs. 7,000 and on
Land and Building Rs. 5,000.
i) Provision for Tax was made during the year Rs. 16,500.
iii) Dividend of Rs. 11,500 was paid.
OR
b) The standard ratios for the industry and the ratios of Anand Ltd are
given below. Comment on the financial position of the company
compared to industry standards and give suggestions for
improvement: [10]
Ratio Industry Standard Ratio Ratio of Mohit

Ltd.
Inventory turnover Ratio 6 3
Average Collection Period 40 45
Net Profit Ratio 9% 10%
Q3) a) i) Explain the importance of Capital Budgeting. [5]

i) Charulata Ltd. is planning an investment in new project. The
investment budget of the company is Rs. 2,80,000. The company
has following two investment alternatives:
[5]
Particulars Year Project A Project B

Initial Investment Rs. 0 28,000 28,000
Cash Inflows (in Rs.) 1 4,000 20,000
2 8,000 16,000
3 12,000 8,000
4 18,000 4,000
5 24,000 4,000
[4970] - 2002 2
Compute the Net Present Value at 10% cost of capital and suggest which
project is profitable for the company.
OR
b) i) Explain the factors influencing Capital Budgeting. [5]
i) From the following information you are required calculate ARR.

An investment costing Rs. 40,00,000 is expected produce
following profits: [5]
Year Amount Rs.
1 3,20,000
2 6,40,000
3 7,20,000
4 2,40,000
Q4) a) A proforma cost sheet of Deepali company provides the following data:
[10]
Cost Per Unit Rs.
Raw Material 10
Direct Labour 4
Overheads 6
Total cost 20
Profit 5
Selling price 25
The following is the additional information
available: Average raw material in stock: one month
Average works in process: half a month
Finished goods in stock: on average one month
Credit allowed to debtors − 2 months
Credit allowed by suppliers − one month
Time lag in payment of wages − one month
Time lag in payment of overheads − one month
Cash balance is expected to be Rs. 25,000.
You are required to prepare a statement showing working capital needed to
finance a level of activity of 40,000 units per Total Cost Approach method
of Working Capital Kstimation. You may assume that production is
carried on evenly throughout the year and wages and overheads accrue.
OR
b) Amey Ltd. is commencing a new project to manufacture a plastic
component. The following per unit cost information has been
ascertained for annual production of 1,00,000 units.
[10]
Cost per unit Rs.

Raw Material 40
Direct Labour 15
Overheads (including Depreciation of Rs. 5 per unit) 30
Total Cash Cost 85
i) Selling price Rs. 100 per unit
i) Raw Materials in Stock, average 4 weeks.
iii) Work in progress, average 2 weeks.
iv) Finished Goods in Stock, average 4 weeks.
v) Credit allowed to Customers, average 8 weeks.
vi) Credit allowed by Suppliers, average 4 weeks.
vii) Lag in Payment of Wages, 1.5 weeks
viii) Cash in hand is expected to be, Rs. 50,000.
You may assume that production is carried out on evenly throughout the
year (52 weeks) and wages and overheads accrue similarly. All Sales are on
credit basis only. You are required to prepare a statement showing working
capital requirement as per Cash Cost Approach method of Working
Capital Kstimation.
Q5) a) i) Write a note on factors affecting Capital Structure. [5]

i) Pradnya Ltd. has the following capital structure: [5]
Source Rs.
Equity Capital (Expected Dividend 12%) 50,000
10% Preference Shares 25,000
8% Loan 75,000
Your are required to calculate the WACC, assuming 50% as the rate of
Income Tax, before and after tax.
OR
b) i) Write a note on importance of capital structure. [5]
i) Madhuri Ltd. has its books on the following amounts and specific
costs of each type of capital. [5]
Type of Capital Book Value Rs. Market Value Rs. Specific Costs %
Equity 6,00,000 9,00,000 15
Preference 1,00,000 1,10,000 8
Debt 4,00,000 3,80,000 5
Retained Earnings 2,00,000 3,00,000 13
Total Rs. 13,00,000 16,90,000
Determine the WACC using-

i) Book Value Weights.
i) Market Value Weights.
eeee
[4970] - 2002 5
P1950 [4770] - 2002


(2013 Pattern)
Ql) a) “Financial Management is closely related to Economics”. Explain. [10]

OR
b) “The Finance Manager’|'s primary task is to plan for acquisition and use
of funds so as to maximize the value of the firm”. Do you agree with
the statement? Comment.
Q2) a) The ratios of two leading firms in the heavy Commercial vehicles (HCV)
sector namely; Tetra Motors and Rapid Auto are provided for the year
ended on 31st March 2013. Interpret these ratios and comment on the
relative financial. [10]
Performance of these companies
Ratios Tetra Motors Rapid Auto
Gross profit margin% 4.73 6.78
Net profit margin% 2.26 4.24
Total debt to equity 0.56 0.82
Fixed assets turnover Ratio 1.66 2.01
Inventory Turnover Ratio 11.54 6.63
EPS (Rs) 3.91 2.13
P.T.O.
OR
March 2013 of Dayanand Ltd. You are required to prepare funds flow
statement.
Balance Sheet
8% Redeemable 1,50,000 1,00,000 Land &
Pref. Shares Building 2,00,000 1,70,000
Proposed 42,000 50,000 Stock 77,000 1,09,000
Dividend
Bills payable 20,000 16,000 Cash in Hand 15,000 10,000
Provision
Total a,77,000 8,17,000 Total a,77,000 8,17,000
Following additional information is provided :-
i) Interim Dividend of Rs. 20,000 has been paid in 2012-
13. i ) Income Tax paid during the year 2012-13 is Rs. 35,000
Q3) a) i) What are the different types of capital budgeting decisions? [5]
i) A leading apparel Mfg. Co. is considering a replacement of its
existing cutting machine with a new automatic machine to
improve
the productivity. The cost of new machine is (Rs.) 25 lakhs. The
cost of the company’|'s capital is 10%. The incremental cash flows
projected during five year period are estimated as follows.
PVF@10% 0.909 0.826 0.751 0.683 0.621
[4770] - 2002 2
OR
b) i) Why capital expenditure budget is required for corporate
organizations? [5]
i) A leading company in the infrastructure contracts is considering a
proposal for the purchase of earth moving equipment. The data on
the proposal is given below : [5]
Cost of the Machine (Rs.) 30,00,000
Life of the Machines 6 years
Depreciation Straight line method
Salvage value (Rs.) Nil
The estimated cash flows before depreciation and income tax in

different years as follows.
Year Amount (Rs.)
1 7,50,000
2 8,00,000
3 8,50,000
4 10,00,000
5 12,00,000
6 14,00,000
Total 60,00,000
The corporate tax rate is 30%. You are required to calculate the cash
flows after tax but before depreciation and comment on the suitability
of the machine bases on pay-back period.
Q4) a) A proforma cost-sheet of a company provides the following particulars:

[10]
Raw Material 80
Direct labour 30
Overheads 60
Profit 30
Selling price 200
Following further particulars are available :
i) Raw Materials are in stock on an average one
month. i ) Materials are in process on an average half
a month.
iv) Credit allowed by suppliers is one month.
v) Credit allowed to debtors is two months.
vi) Lag in payment of wages and overheads are 1 month.
vii) One fourth of the output is sold against cash.
viii) Cash on hand and at bank is expected to be Rs.25,000.
You are required to prepare a statement showing the working capital needed
as per total approach method of working capital to finance a level of activity
of 60,000 units of production annually. The production is carried out evenly
OR
b) The cost structure of a company’|'s product is as follows :-
Raw Material 20
Direct Labour 5
Overheads 15
Profit 10
Selling price 50
i) It is the policy of the company is to maintain the stock of raw
year (Stage of completion 50%).
month.
v) The company sells its goods on credit and allows two months credit to
its customers.
company. vii) The period of lag for wages and overheads is one month.
viii) A minimum cash balance of Rs. 25,000 is expected to be maintained.
requirement as per cash cost approach method of working capital
estimation.
Q5) a) i) A leading company manufacturing cosmetics is in need of a

capital for it’|'s expansion plans. Which factors do you think are
required to be considered for raising the long-term funds to
i) finance the capital
The entire plan?[5]structure of a company is provided along with
the tax adjusted cost of each component. Determine the weighted
average cost of capital (WACC). [5]
Components of Amount (Rs) Tax adjusted cost of
Capital Capital
12% Debentures 30,00,000 8%
9% Preference shares 20,00,000 9%
OR
b) i) State the various assumptions made in capital structure theories.
i) [5]
Rajaram Ltd. Has the following capital structure. [5]
Particulars Market values Book values Component cost
%(Post - Tax)
Equity Capital 80 120 18
Pref. Share Capital 30 20 15
Secured Debentures 40 40 14
Calculate weighted average cost of capital (WACC) of the company
based on both book and marked values.
ØØØ
SEAT No. :
P4023 [Total No. of Pages :4
[5070] - 202
M.B.A.
202: FINANCIAL MANAGEMENT
Time : 3 Hours] [Max. Marks :70

1) Q. No. 1 is compulsory.
2) Solve any two questions from section - I and section - II each.
SECTION - I
Ql) What is business finance? Explain the functions of financial system of an
organization. [10]
Q2) What do you understand by analysis of financial statement? Discuss the

limitations of financial statement? [15]
Q3) Described the objectives of financial management. Explain the need and
importance of financial planning and forecasting for effective financial
control in business organization.
[15]
Q4) Explain the dividend policy considerations. Discuss various procedural

formalities involved in payment of dividend. [15]
Q5) Write short notes on any three of the following: [15]

a) Cost of capital
b) Cash budget
c) Fund flow statement
d) Corporate finance
e) Trading on equity.
[5070] -202 1 P.T.O.
SECTION - II
Q6) You are required to prepare a statement showing the working capital for a
level of activity of 1, 56,000 units of production for ZYX Co. The following
information is available for your consideration. [15]
Per Units (Rs.)
a) Raw Materials 90
Direct labour 40
Overheads 75
Total Cost 205
Profit 60
Selling Price per Unit 2a5
b) i) Raw materials are in stock on an average one month.
ii) Material in Process 50% complete on an average two weeks.
iv) Credit allowed by suppliers one month.
v) Time lag in payment from debtors two months.
1
vi) Lag in payment of wages 1 week.
2
vii) Lag in payment of overheads one month.
viii) 20% of the output is sold against cash.
ix) Cash in hand and bank expected Rs. 60,000.
Assume that the production is carried on evenly throughout the year,

wages and overheads accrue similarly and a time period of 4 weeks is
equivalent to a month.
[5070] -202 2
Q7) Calculate the operating leverage, financial Leverage and combined leverage
from the following details. [15]
Selling Price per units Rs. 150
Variable cost per unit Rs. 100
Fixed costs Rs. 6,00,000
Production & sales 20,000 units
The capital structure of the company under alternate financing plan is as
follow:
Rs. Rs.
Equity Capital 20,00,000 10,00,000
16% Debentures 10,00,000 20,00,000
Total 30,00,000 30,00,000
Q8) Assume that a firm has owner’|'s equity of Rs. 1,00,000 the ratios of the firm
are as follows: [15]
Short debt to total debt = 0.4
Total debt to owner’|'s equity = 0.6
Fixed assets to owner’|'s equity = 0.6
Total assets turnover = 2 times
Inventory turnover = 8 times
Complete the following Balance Sheet with the help of information given above;
Balance sheet
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Short term debt - Cash -
Long term debt - Inventory -
Total Debt - Total Current Assets -
Owner’|'s equity - Fixed Assets -
Total Capital & - Total Assets -
Liabilities - -
Q9) ABC Company, whose cost of capital is 10%, is considering two mutually
exclusive Proposals ‘X’|' and ‘Y’|', the details of which are as follows: [15]
Particulars Project ‘X’|' (Rs.) Project ‘Y’|' (Rs.)

Investments 15,00,000 15,00,000
Cash inflows at end of the
Year- 1 1,00,000 6,50,000
2 2,50,000 6,00,000
3 3,50,000 6,00,000
4 5,50,000 5,75,000
5 7,50,000 5,25,000
Total 20,00,000 29,50,000
Calculate:
a) Payback Period.
b) Net Present Value @ 10%.

c) Profitability index @ 10%.
d) Internal Rate of Return.
aeae
SEAT No. :
[4870]-2002
M.B.A.
(CBCS) (2013 Pattern) (Semester - II)
7) Use of Simple Calculator is permitted.
Ql) a) Describe the three broad areas of Financial Decision Making for a
Finance
Manager with respect to Business organizations. [10]
OR
b) “The objective of Financial Management is to maximize the wealth of
the shareholders by maximizing the value of the firm.” Explain. [10]
Q2) a) From the ratios forth below for the Manufacturing Ltd, Indicate your
interpretation of the Company’|'s Financial Position. [10]
Particulars 2015 2014 2013
Current Ratio 3.02 2.78 2.65
Quick Ratio 0.99 1.1 1.55
Working Capital Turnover 3.25 3.00 2.75
(Times)
Collection Period (Days) 50 43 37
Inventory to Working 110 100 95
Capital (%)
Net Profit to Net Sales (%) 2.0 5.09 7.03
Sales increase duirng the
Year (%) 23 16 10
Cost of Goods sold to Net
Sales (%) 73 71 70
OR
P.T.O.
March
2014 of Mahanand Ltd. You are required to prepare Funds Flow
Statement. [10]
Balance Sheet
8% Redeemable 1,50,000 1,00,000 Land & 2,00,000 1,70,000
Pref. Shares Building
Proposed 42,000 50,000 Stock 77,000 1,09,000
Dividend
Bills Payable 20,000 16,000 Cash in Hand 15,000 10,000
Provision
Total 6,77,000 8,17,000 Total 6,77,000 8,17,000
Following additional information is provided:

a) Interim Dividend of Rs. 20,000 has been paid in 2013-14.
b) Income Tax paid during the year 2013-14 is Rs. 35,000
Q3) a) i) Explain relevance of time value of money in investment decision.

i) [5]
A company is considering the process of replacement of an asset.
The cost of the asset is Rs. 15 lakhs. The cost of the company’|'s
capital is 10%. The expected cash flows projected during five year
period are estimated as follows:
PVF @10% 0.909 0.826 0.751 0.683 0.621
OR
[4870]-2002 2
b) i) How do you calculate net present value of a project? What are its
merits and demerits. [5]
i) A company is contemplating to purchase a machine. A cost of the

machine is Rs. 30 lakhs. A discounting rate of 10% is to be used
and machine is to be written off in 6 years by straight line method
of depreciation with no residual value. The estimated cash flows
after tax in different years are expected as follows:
Year Amt. (Rs.)
1 6,75,000
2 7,10,000
3 7,45,000
4 8,50,000
5 9,90,000
6 11,30,000
Comment on the Suitability of the machine using Payback period

method. [5]
Q4) a) A Proforma cost-sheet of a company provides the following

particulars: [10]
Raw Material 80
Direct Labour 30
Overheads 60
Total Cost of Production 170
Profit 30
Selling Price 200
Following further particulars are available:
i) Raw materials are in stock for one month.
i) Credit allowed by suppliers is one month.
iii) Credit allowed to customers is two months.
[4870]-2002 3
iv) Lag in payment of wages 1.5 months.
v) Lag in payment of overheads one month.
vi) Materials are in process for an average of half a month.
vii) Finished goods are in stock for an average of one month.
viii) 1/4th of output is sold against cash.
ix) Cash in hand and bank is expected to be Rs. 25,000
You are required to prepare a statement showing the working capital
needed to finance a level of activity of 60,000 units of production
annually. The production is carried out evenly throughout the year.
OR
b) The management of Royal industries has called for a statement
showing the working capital needs to finance a level of activity of
1,80,000 units of output for the year. The cost structure for the
company’|'s product for the above mentioned activity level is detailed
below:
Particulars Cost per Unit (Rs.)
Raw Materials 20
Direct Labour 5
Overheads 10
Cost of production 35
Profit 10
Selling Price 50
i) Minimum desired cash balance is Rs. 20,000.
i) Raw materials are held in stock, on an average for two months.
iii) Work in progress (assume 50% completion stage for Materials,
Labour & Overheads) will approximate to half a month’|'s
production.
iv) Finished goods remain in warehouse on an average for a month.
v) Suppliers of materials extend a month’|'s credit. Also, Debtors
collection period is two months. Cash sales are 25% of total sales.
vi) There is a time-lag in payment of wages and overheads are of a
month.
You are required to estimate the working capital requirements of the
company with assumption that production is carried on evenly
[10]
Q5) a) i) Explain in detail the various factors affecting the Capital
Structure. [5]
i) The entire capital structure of a company is provided along with
the tax adjusted cost of each component. Determine the
Weighted Average Cost of Capital (WACC).
[5]
Components of Amt. (Rs.) Tax Adjusted Cost of
Capital Capital
Equity Share Capital 20,00,000 13%
(2,00,000 Shares)
11.5% Preference 15,00,000 11.5%
Shares
10% Debentures 25,00,000 7.5%
OR
b) i) State the various assumptions made in Net Income and Net
Operating Income capital structure Theories. [5]
i) Calculate Weighted Average Cost of Capital (WACC) of the
company based on book value weights and market value weights.
[5]
Particulars Book Values Market Values Component Cost
% (Post-Tax)
Debentures 6,00,000 7,00,000 7.23
Pref. Share Capital 2,00,000 2,00,000 11.25
Equity Shares 14,00,000 21,00,000 16.5
³ ³ ³
SEAT No. :
[4770] - 202
M.B.A.
1) Question number 1 is compulsory.
2) Attempt any two questions from Section I & two questions from Section II.
3) Use of simple calculator is allowed.
4) Figures to the right indicate full marks.
Ql) Explain the various finance functions. [10]

SECTION - I
Q2) What is financial planning? What are the characteristics essential for a sound
financial plan & also explain the process of financial planning. [15]
Q3) What do you understand by under capitalization & over capitalization?

Explain the causes & effects of the same? [15]
Q4) Explain any 3 methods of evaluating capital expenditure proposals with an

appropriate example? [15]
Q5) Write short Notes on (Any 3): [15]

a) Factors affecting dividend policy.
b) Cash Budget.
c) Fund Flow Analysis.
d) Bonus Shares.
e) Disclosure requirements of Fixed Assets as per Schedule VI.
P.T.O.
SECTION - II
Q6) Estimate working capital requirement for a activity of 1,00,000 units. Add
10% contingency to the total working capital. All are credit sales.
Particulars Cost per unit (Rs.)
Raw Material 42.50
Direct Labour 14.80
Overheads 42
Total Cost 99.30
Profit 20.70
Selling price 120.00
Stock of raw materials held - 4 weeks work in Progress (50% completion
stage) - 2 weeks
Stock of finished goods - 4 weeks.
Purchases - 1 month credit allowed.
Credit sales - 2 months Credit period.
Delay in payment of wages - 2 weeks.
Cash at bank and in hand - Rs. 1,00,000. [15]
Q7) A company’|'s whose cost of capital is 12% is considering two projects ‘A’|' &
‘B’|'. The following data are available:
Project A Project B
Rs. Rs.
Investment 1,40,000 1,40,000
Cash flows
Year 1 20,000 1,00,000
Year 2 40,000 80,000
Year 3 60,000 40,000
Year 4 1,00,000 20,000
Year 5 1,10,000 20,000
3,30,000 2,60,000
Select the most suitable project by using Net Present Value method.
The present value of Re. 1 at 12% are:
Year 1 0.90
Year 2 0.80
Year 3 0.70
Year 4 0.60
Year 5 0.55
[15]
[4770]-202 2
Q8) From the following information Prepare a Balance sheet. [15]
Current Ratio = 2
Liquid Ratio = 1.5
Fixed assets to Net investments = 0.75
Working capital = Rs 1,00,000
Reserves & Surplus = 75,000 Rs.
Bank overdraft = 30,000 Rs.
The firm does not have any long term loans.
Q9) Calculate the operating leverage, financial leverage & combined leverage
from the following details:
[15] Selling price per unit = Rs. 150
Variable cost per unit = Rs. 100
Fixed Costs = Rs. 6,00,000
Production & sales = 20,000 units
The capital structure of the company under alternate financing plan is as follows:
Equity Capital 20,00,000 10,00,000
16% Debentures 10,00,000 20,00,000
Total 30,00,000 30,00,000
³ ³ ³
P1718 [4770] - 203
2
M.B.A.
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3
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0 Discuss
0 difference Q4) Define Recruitment.
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8 Personnel process of recruitment
Manage and selection.
P ment
and
a Q5) What is collective
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Q2) Explain of Industrial
e the Disputes.
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Succession
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Q3) What i
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Time : 3 Hours][Max. mance
Marks : 70 manag b
Instructions to the ement?
)
candidates: Elabor
1) Attempt Any ate any TQM.
Five questions. 3 c) Job analysis.
2) All questions method d) Rating errors.
carry equal marks. s of ³
perfor
mance ³
Ql) Define Human evaluat ³
Resource Management. ion.
SEAT No. :
[5070]-2002
M.B.A.
(2013 Pattern) (Revised) (Semester - II)
2) Each question carry 10 marks.
3) Figures to the right indicate marks for that questions.
Ql) a) Define Financial Management. Explain the various goals of it in detail.

[10]
OR
b) Explain the key strategies of financial management with suitable examples.

[10]
Q2) a) From the following Balance sheets of ABC Ltd prepare a statement
showing sources and application of funds for the year ended 31st
March[10]
2005 “BALANCE - SHEET”
Liabilities 2004(Rs.) 2005(Rs.) Assets 2004(Rs.) 2005(Rs.)
8% Pref. sh. capital 1,50,000 1,00,000 Land & Building 2,00,000 1,70,000

Proposed Dividend 42,000 50,000 Stock 77,000 1,09,000
Bills Payable 20,000 16,000 Cash in Hand 15,000 10,000
Tax Provision 40,000 50,000 Cash at bank 10,000 8,000
6,77,000 8,17,000 6,77,000 8,17,000
[5070]-2002 1 P.T.O.
i) Depriciation has been charged on plant & Land & Building Rs. 10,000
and Rs. 20,000 respectively in 2004-2005.
i) Interim dividend of Rs. 20,000 has been paid in 2004-2005.
iii) Income tax paid during 2004-2005 Rs. 35,000.
OR
b) The standard ratio for the industry and the ratios of “Prabhat Ltd” are
given labour. Comment on the financial position of the company
compared to industry standards and give suggestions for improvement.
[10]
Ratio Industry Standard Ratio Ratio of Prabhat Ltd
Inventory Turnover Ratio 9 3
Average collection period 34 42
Debt equity Ratio 2:1 1.35 : 1
Q3) a) Ashok Ltd. is planning to invest in a new project. The company has the
following 2 alternatives available for investment? [10]
Project Project
‘A’|' ‘B’|'
[5070]-2002 2
Investment 30,00,000 30,00,000
Project Life 5Years 6 years
Cost of capital 12% 12%
Cash inflow at the end of the year:
year 1 7,00,000 8,00,000
year 2 10,00,000 8,00,000
year 3 9,00,000 8,00,000
year 4 8,00,000 8,00,000
year 5 4,00,000 6,00,000
year 6 - 2,00,000
[5070]-2002 3
Calculate and suggest the company to select the alternative on the basis of
i) Pay Back Period.
i) Net Present Value.
OR
b) A company is considering an investment proposal to install new
machine.
This project will cost Rs. 1,00,000 and will have 5 years life with no
salvage value. Tax rate is 50%, the company follows straight line
method of depreciation.
[10]
Years EBDT(Rs.) Discount factor@ 10%
1 20,000 0.909
2 22,000 0.826
3 28,000 0.751
4 30,000 0.683
5 50,000 0.621
Evaluate the project using
i) Pay back period.
i) Profitability Index at 10%.
Q4) a) i) Suprakash company provided the following information and

requested you to compute operating cycle duration. [5]
(In lakhs)
Particulars Amount (Rs.)
Sales 2,000
Opening Inventor 510
Closing Inventor 375
Opening Receivables 815
Closing Receivables 875
Cost of Goods Sold 1675
OR
[5070]-2002 3
i) Briefly explain the determinants of working capital. [5]
OR
[5070]-2002 4
b) ABC Ltd sells its products on a gross profit of 20% on sales. The
following information is extracted from its annual accounts for the year
ended 31st December 2014. [10]
Particulars Amount(Rs.)
Sales at 3 months credit 40,00,000
Raw Material 12,00,000
Wages paid - average time lag 15 days 9,60,000
Manufacturing expensed paid - 1 month in arrears 12,00,000
Administrative expensed paid - 1month in arrears 4,80,000
Sales promotion expenses - payable half yearly in advance 2,00,000
The company enjoys one month credit from the suppliers of raw
materials and maintains a 2months stock of raw materials and one and
half month’|'s stock of finished goods. The cash balance is maintained
at Rs. 1,00,000 as a precautionary measure. Assuming a 10% margin,
find out working capital requirement of ABC Ltd.
Q5) a) i) Explain the concept of NI approach. [5]
i) From the following information calculate operating Leverage,

Financial Leverage and Combined Leverage. [5]
Units Sold 30,000
Unit Sale Price Rs. 10
Fixed Cost Rs. 40,000
Variable cost per unit Rs.6
10% Debt capital Rs. 1,00,000
Tax Rate 50%

b) i) Write a note on NOI approach. [5]
i) From the following capital structure of a company, calculate the

overall cost of capital using. [5]
A) Book Value Weights.
B) Market Value Weights.
Source Book Value Market Value
(Rs.) (Rs.)
Equity share capital 45,000 90,000
Retained earnings 15,000 -
Preference share capital 10,000 10,000

Debentures 30,000 30,000
The after tax cost of different source of finance is as follows:

Equity sh. capital = 14%
Retained earnings = 13%
Pref. sh. capital = 10%
Debentures = 5%.
[5070]-2002 5

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Total No. of Questions : 5] SEAT No.

P1950 [4770] - 2002

M.B.A. (Semester - II)

Ql) a) “Financial Management is closely related to Economics”. Explain. [10]

The estimated cash flows before depreciation and income tax in

Q4) a) A proforma cost-sheet of a company provides the following particulars:

month. i ) Materials are in process on an average half

v) Credit allowed to debtors is two months.

vi) Lag in payment of wages and overheads are 1 month.

vii) One fourth of the output is sold against cash.

viii) Cash on hand and at bank is expected to be Rs.25,000.

Q5) a) i) A leading company manufacturing cosmetics is in need of a

P1951 [Total No. of Pages : 2

Ql) a) Define HRM & explain various functions of HRM. [10]

Q2) a) What is need of man power planning in an organization? Discuss its

Q4) a) Explain the concept of performance appraisal & discuss how it is

Time : 3 Hours] [Max. Marks :70

Ql) Explain the evolution of Financial Management? [10]

Q5) Write short notes on (Any 3) [15]

Q9) Calculate the ratios from the data given : [15]

Q1) Explain the scope of Financial Management. [10]

Q5) Write short notes on (any three) : [15]

Q9) Following is the Balance sheet of xyz Ltd. [15]

Ql) Explain the functions of Financial Management. [14]

Q2) Write short notes (Any Two) : [14]

Q3) ABC Limited is considering an investment in project costing Rs. 12,00,000.

Q5) Prepare a statement showing working capital requirement for a level of

Q3) a) Shruti Ltd. is planning an investment in new project. The investment

Q4) a) A proforma cost sheet of a Ramachandra Ltd. provides the following

Q1) a) What are the key strategies of financial management? [10]

b) Define financial management. Write goals of financial management. What

No the ratio year - 2016 year - 2017

1. Current Ratio 2:1 2.5:1

2. Stock turnover Ratio 6 times 8 times

3. Quick Ratio 0.80:1 0.75:1

4. Net project Ratio 20% 25%.

Q3) a) From the following information of 'PQR Ltd.' calculate : [10]

1 15,000 5,000 0.9090

2 20,000 15,000 0.8264

3 25,000 20,000 0.7513

4 15,000 30,000 0.6830

5 10,000 20,000 0.6209

i) Pay back period method

ii) Net present value method (NPV)

Suggest the company which M/c should purchase.

1) Stock of Raw materials 40,000

2) Stock of W/p 28,000

3) Stock of finished goods 42,000

5) Cost of goods sold 2,80,000

Q5) a) Discribe the factors affecting on capital structure. [10]

Q2) Primary goal of financial Management is said to be maximization of

Q3) Describe various provisions of Companies Act, 1956 regarding the

Q5) Write short notes on any three of the following. [15]

Q2) a) i) Write a note on importance of Capital Structure. [5]

The company pays dividend at 10%.

Q4) a) From the following information of a Company suggest which of the

Q5) a) Prepare a statement showing working capital requirement to finance a

Ql) a) Describe modern approaches to financial management. [10]

Q2) a) i) Explain factors affecting capital structure. [5]

Ql) Explain in detail the role of a finance manager. [10]

Q3) a) Briefly discuss the different types of dividend. [5]

Q5) Write short notes on : (Any Three) [15]

Q7) A company is considering the replacement of its existing machine which is