Friday, December 05, 2014

Dibrugarh University (M.Com Distance) - Financial Management (Nov - Dec' 2013)

2013 (November – December)

Paper: 201

Marks: 80

Time: 3 Hours

1.  (A) Give an overview on evolution of financial management.                                                16

Or

(b) Elucidate the assumptions underlying the financial objectives.                                            16

2. (a) from the following balance sheet of A ltd. Prepare a comparative balance sheet with comments.


Liabilities
2012
2013
Assets
2012
2013
Share capital
600000
600000
Fixed assets
500000
800000
Equity share capital
nil
400000
Less: Depreciation
67000
80000




433000
720000
General reserve
57500
90000
Investment(at cost)
50000
80000
Profit and loss
80000
82000
Stock
120000
300000
8% debenture
75000
50000
Debtor
200000
239000
Bank loan
25000
200000
Bank
80000
120000
Creditor
25000
50000
Cash
17000
37000
Outstanding expenses
7500
3000



Provision fro tax
30000
21000




900000
1496000

900000
1496000
   
Or

(b) Why is it necessary to calculate the profitability ratio in relation to sales? Illustrate your answer. 16

3. (a) The AB industries Limited has 900000 shares outstanding at current market price of Rs.130 per shares. The company needs Rs.225 crores to finance proposed modernisation cum expansion project. The board of company has decided to issue rights for raising the required money. The subscription (issues) price has been fixed at Rs. 75 per shares. The subscription price has set below the market price to ensure that the right issue is fully subscribed. How many rights required to purchase a new share? What is the value of a right ?                                   16

Or

(b) how does a term loan differ from a non- convertible debenture?

4. (a) In addition to trade credit, accrued expenses and deffered income are other spontaneous source of short term financing. Justify your answer.     16

OR

(b) Illustrate captive finance companies in relation to short term financing.                                    16

5. (a) elucidate the players in derivates trading and the functions of future markets.                               8+8

OR

(b) How for over the counter exchange of india is able to  fulfill the needs of the small companies.     16