University of Mumbai 2008-1st Year Diploma Financial Management Pgdfm fin mgt - Question Paper
FIN MGT 2008
glStHf08.437
*08
ntu/ j,-.--' -
BB-8500
[Total Marks : 100
>n. 2380-08.
Dwer.
(3 Hours)
.B. (1) Question No. 1 is compulsory and carries 20 marks. .
(2) Attempt any four from the remaining.
(3) Working to form part of the answers and make and state clearly assumptions where necessary. .
Following are the summarized balance sheet of XYZ Ltd. as at 31st December, 2000 20
and 31st December, 2001. '
BALANCE SHEET
31 -12-00 31-12-01 3,00,000 82,000
Assets
31-12-00 31-12-01
Liabilities
FA at cost 2,50,000
Less : Depr, till date 68,000
2,50,000
Share capital 2,00,000
(Share of Rs. 100 each)
2,18,000
1,35,000
3.000
52.000
50.500
14.000
5.000
60.500
1,82,000 1,25,000 6,000
41.000
53.000
12.000 10,000
80,000 87,000
Reserves and Surplus 13-5% convertible Debentures 1,00,000
Public Deposit 30,000
Current liab. and Provisions 62,000 Proposed dividend 20,000
Trade Invst.
Marketable invst.
Inventories Book Debts;
Cash and Bank Preliminary exp.
Capital work in piogress 63, 000 -
Total 4,92,000 5,38,000
80,000
25.000
71.000
25.000
3
osts
4,92.000 5,38,000
Total
You are informed that during 2001
(1) Rs. 20,000 of debentures were converted into shares at par.
(2) Rs. 20,000 shares were issued to the shareholders as bonus shares, fully paid
I
amount of reserves. Wv
(3) Rs.10,000 shares were issued io a *endui of fixed assets who has supplied a
machine costing Rs.12,030.
(4) A machine costing Rs. 5000 book value Rs. 3000 as on 31st December 2000
was disposed off for Rs. 2000.
0%
You are required to prepare the fund flow statement of the company and a statement
Showing changes in working capital.
20
Following is the Balance Sheet and Profit and Loss A/c. of Ashok Leyland :
Balance Sheet as on 31-12-2001 ________
nc
nS.
Assets
Rs.
IS*.
Liabilities
1,00,000 20 00
Building Less : Depre.
Equity share capital (Rs. 10) 1,00,000
10% Pref. Share Capita) 40,000
P & L A/c. 50,000
Mortgage Loan * 1,00,000
Creditors 60,000
Taxes payable 50,000
80,000
1*00,000
1,00,000
60,000
20,000
40,000
Plant
Stock
Debtors (Last year 80,000) Short term investment Cash
Total
I
t. so 20
Total 4,00,000
C:1StHf08,438
Con. 2380-BB-8500-08.
|
To Open Stock To Purchases To Gross Profit P & L A/c. for the year ended 31-12-2001 To Operating Exp. To Operating Profit To Interest on Loan To Profit before Tax To Income Tax To N. P. after Taxes |
By Sales By Stock 5.50.000 1.50.000 1,00,000 2,00,000 4.00.000 7.00.000 1.50.000 2.50.000 _t 4.00.000 ' 65,000 1.85.000 2.50.000 95.000 90.000 1.35.000 7.00.000 4.00.000 4,00,000 2,50,000 2.50.000 1.85.000 1,85,000 By Gross Profit b/d. By Operating Profit By P.B.T. |
(i) Represent the balance sheet and P & L A/c. in vertical form and
(ii) Calculate : '
(a) current ratio
(b) quick ratio
' (c) debtors turnover 111
(d) collection period 1 J !
(e) stock turnover
(f) debt service ratio
(g) earning per share
(h) dividend payment ratio
(i) creditors turnover.
Note : the company paid dividend on equity shares @ 20%.
3. Polly textile company has an investment opportunity involving an outlay of Rs. 80,000.
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|
Using 15% as rate of discount, you are required to compute the following (a) payback period (b) net pfespnt value (c) profitability index 5 f |
|
Year |
1 |
2 * |
3 |
4 ' |
5 |
6 |
7 |
8 |
9 |
1( |
|
15% Discounting |
0870 |
0756 |
0-658 |
0 572 |
0-497 |
0-432 |
0376 |
0327 |
0-284 |
0-2 |
5.50.000
1.50.000
(b)
<c)
(d)
(e)
(f)
(g)
(h) (i)
7,00,000
4.00,000
4,00,000
2.50,000
2,50,000
20
1.85,000
i .85,000
A Ltd., manufactures and sells radio components from the following particulars estimate the working capital required, assuming that the company maintains minimum cash and bank balance of Rs. 20,000 to meet contingencies (a) Estimated sales for the year 1,30,000 units Materials remain in process for two weeks Finished goods remain in stock on an average of two weeks Credit available from suppliers of materials for two weeks Credit allowed to customersfour weeks 1/4 of sales are on. cash basis Time lag in payment of wages and overheads two weeks.
Operations are evenly distributed through out the year Selling price per unit is Rs. t5 Cost per unit is estimated as follows :
Material Rs. 5/- -
Labors Rs. 31- , ? '
Overheads Rs. 2/- .
Assume that sales are only on credit basis and a year is of 52 weeks.
Write short notes on (any four) . ?
(a) Cost of capital i.
(b) Discounted payback period
(c) Trading on equity
(d) Limitations of ratio analysis
(e) Plough back profit.
(a) NPV and IRR
(b) Overcapitalization and Undercapitalization
(c) Vortical analysis and Horizontal analysis.
What is the ratio and explain how following ratios help the management in interpretation 2C
of financial data : x
9 i
10
3,000j
8,000
