Post Graduate Diploma-Post Graduate Diploma Business Management 4th Sem ADVANCED FINANCIAL MANAGEMENT(University of Pune, Pune-2013)

                               P.G.D.B.M. (Semester – IV) Examination, 2013
                                       403 : Specialization – II B : Finance
                                        ADVANCED FINANCIAL MANAGEMENT
                                                  (New) (2008 Pattern)

Time : 3 Hours                                                                  Max. Marks : 70

Instructions :

1) Question No. 1 is compulsory.

2) Attempt any two questions each from Section I and Section II.

3) Figures to the right indicate full marks.

4) Use of simple calculator is allowed.

5) Solve both the Sections in one and the same answer book.

SECTION – I

1. Financial ratios, indicate the financial health of the firm from profitability, liquidity and stability point of view. Explain the statement with the help of suitable illustration. 10 

2. Elaborate International Accounting Standards ? 15

3. Discuss Capital budgeting decision under risk and uncertainty ? 15

4. Write short notes on (any three) : 15

a) Working Capital cycle

b) Valuation of equity shares

c) Human resource accounting

d) Buy back of shares

e) Inflation Accounting

P.T.O.

[4387] – 408 -2- 

SECTION – II

5. Raju Brothers Private Limited sells goods on a gross profit of 25%. Depreciation is considered in cost of production. The following are the annual figures given to you : 15

Rs.

Sales (Two month’s credit) 18,00,000

Materials consumed (one month’s credit) 4,50,000

Wages paid (one month lag in payment) 3,60,000

Administration expenses (one month lag in payment) 1,20,000

Sales promotion expenses (paid quarterly in advance) 60,000

Income tax payable in 4 equal installments of which

one falls in next year 1,50,000

Cash manufacturing expenses (one month lag in payment) 4,80,000

The company keeps one month’s stock each of raw materials and finished goods.

It also keeps Rs. 1,00,000 in cash. You are required to estimate the working capital requirements of the company on cash basis assuming 15% safety margin.

 

6. Following details are made available to you : 15

Particulars Project X Project Y

Project Cost 1,40,000 1,40,000

Cash Inflows :

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

 

Total 3,30,000 2,60,000

 

Earning:  ₹ 7.05/-