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Practice Exercise-10

Directions (Q. 1-3): Answer the questions on the basis of the information given below.
The data below shows the rankings of twenty-five companies on the basis of various parameters as
shown below.
Rank

Total Income

Net Profit

Net Worth

NPM

RONW

ROCE

2004

2004

2004

2004

2004

2004

Companies

2004

Rs Crore

% chg

Rs Crore

% chg

Rs crore

% chg

Tata Sons

4410.86

35.39

863.29

20.97

3396.38

25.91

19.57

25.42

14.55

Tata International

1970.32

-9.28

-830

108.15

-7.13

-0.42

-7.67

-2.92

Teech Pacific (India)

1772.39

40.95

26.9

-9.1

87.79

43.76

1.52

30.64

12.11

TV Sundram
Iyengar & Sons

1754.07

4.79

34.28

101.7

130.95

7.76

1.95

36.18

11.96

Nirma Consumer Care

1604.4

-12.76

0.39

77.27

3.13

13.82

0.02

12.46

0.99

Bennett, Coleman & Co.

1457.18

19.95

49.73

-75.85

910.14

5.52

3.41

5.46

5.46

Haldia Petrochemicals

1434.91

15.686

-501.55

614.09

-44.96

-35

-81.67

-9.24

Toyota Kirloskar Motor

1695.26

22.25

-102.01

452.38

-18.41

-6.02

-22.55

-12.25

Adani Wilmar

1166.78

179.11

11.63

5.73

58.42

58.84

1.00

19.91

11.67

10

Ford India

1064.79

-60.52

321.87

-15.83

-5.68

-18.8

-3.87

11

Gitanjali Gems

1032.47

-74.87

21.9

-51.72

207.94

11.77

2.12

10.53

4.71

12

Hero Cycles

985.04

5.38

68.56

83.46

264.36

24.06

6.96

25.93

16.4

13

Riddisiddhi Bullions

952.67

130.67

0.21

505.5

1.85

190.41

0.02

11.55

3.12

14

Samsung Electronics

941.81

44.36

4.91

-4.11

34.94

16.36

0.52

14.06

6.43

15

Godrej & Boyce Mfg Co.

889.54

5.07

11.45

-5.99

280.65

3.75

1.29

4.08

1.57

16

Allanasons

562.87

-0.4

4.78

33.87

64.51

1.82

0.55

7.42

5.75

17

Honda Siel Cars India

855.45

18.89

26.48

235.3

12.68

3.1

11.25

5.22

18

Bharat Aluminium Co.

826.96

-17.88

18.76

588.06

-2.98

2.27

3.19

2.42

19

Lafarge India

816.46

69.31

-14.39

649.73

137.02

-1.76

-2.21

-1.06

20

Reliance Ports &


Terminals

806.67

49.23

-20.97

491.38

-4.09

-2.6

-4.27

-0.69

21

Tractors & Farm


Equipment

805.42

-6.13

23.83

-0.96

416.18

5.16

2.96

5.73

4.51

22

Bhushan

805.12

34.38

26.18

13.28

240.84

12.16

3.25

10.87

4.06

23

Jaypee Cement

1200.44

117.88

63.39

245.05

26.05

5.28

25.87

6.88

24

Essar Power

1140.51

-15.21

62.39

-34.35

781.71

21.29

5.47

7.98

2.77

25

Bharti Cellular

725.73

38.96

98.63

16.05

287.89

42.15

13.59

34.26

4.64

1. In how many companies was the percentage change for net worth greater than the percentage
change for total income?
1) 13
2) 20
3) 12
4) 16

2. Which of the following is true?


1) The percentage ROCE for the top five companies is always less than the percentage RONW.
2) The percentage ROCE for the top five companies is always greater than the percentage RONW.
3) The percentage ROCE for the top five companies is greater than the percentage RONW for only
one company.
4) None of the above is true.
3. Which of the following statements is not true?
1) As many companies are ranked above RiddhiSiddhi Bullions as below it.
2) The net worth as a percentage of total income for Hero cycles is 26.8%
3) If the top ten companies were ranked on the basis of net profit, from highest to lowest, the fifthranked company would be Adani Wilmar.
4) All are true

Profit

Directions (Q. 4-6): Answer the questions on the basis of the information given beow.
Each point in the graph below shows the profit and turnover for a company. Each company belongs
to one of the three industries: Service, Shipping and Banking.

1000

4. For how many companies does the profit exceed 10% of the turnover?
1) 8
2) 7
3) 6
4) 5
5. For how many banking companies with a turnover of more than 2000 is the profit less than 300?
1) 0
2) 1
3) 6
4) 7
6. An investor wants to buy stocks of only banking or shipping companies with a turnover of more
than 1000 and profit exceeding 10% of turnover. How many choices are availiable to the investor?
1) 6
2) 7
3) 4
4) 5
Directions (Q. 7-9): Answer the questions on the basis of the information given below.
The following table shows the data about ages, height and weight of randomly selected 100 children of CATMOS Montessori. Table 1 provides data about ages of the children. For the age given in the
first column, the second column gives the number of children not exceeding that age.
For example, the first entry indicates that there are 9 children aged 4 years or less. Tables 2 and
3 provide data on the heights and weights respectively on the same group of 100 children in a similar
format. Assuming that an older child is always taller and weighs more than a younger child, answer
the following questions.

TABLE 1

TABLE 2

TABLE 3

Age (years)

Number

Height (cm)

Number

Weight (kg)

Number

4
5
6
7
8
9
10
11
12
13
14

9
12
22
35
42
48
60
69
77
86
100

115
120
125
130
135
140
145
150
155
160
165

6
11
24
36
45
53
62
75
81
93
100

30
32
34
36
38
40
42
44
46
48
50

8
13
17
28
33
46
54
67
79
91
100

7. What is the number of children of age 9 years or less whose height does not exceed 135 cm?
1) 48
2) 45
3) 3
4) Cannot be determined
8. How many children of age more than 10 years are taller than 150 cm and do not weigh more than
48 kg?
1) 16
2) 40
3) 9
4) Cannot be determined
9. Among the children older than 6 years but not exceeding 12 years, how many weigh more than 38
kg?
1) 34
2) 52
3) 44
4) Cannot be determined

K
KUNDAN

Directions (Q. 10-12): Answer the questions on the basis of the information given below.
Natures Best Juices (NBJ) is in the business of manufacturing fruit juices. NBJ buys APPLE,
MANGO, GRAPE, ORANGE and LITCHEE juice. ORANGE juice can be made by adding artificial flavour
to APPLE and MANGO juice in equal proportions. Similarly, LITCHEE juice can also be made by APPLE
and GRAPE juice. Among other juices, NBJ sells MIXED JUICE (formed by mixing GRAPE and MANGO
juice in the ratio 70 : 30), TROPICAL DELIGHT JUICE (formed by mixing equal amounts of ORANGE
and LITCHEE juice) and SUMMER SONG juice (formed by mixing equal amounts of ORANGE and GRAPE
juice). The following table provides the price at which NBJ buys the juices.
FLAVOUR
Rs/Litre
APPLE
20.00
MANGO
25.00
GRAPE
15.00
ORANGE
22.00
LITCHEE
18.00
10. The cheapest way to manufacture TROPICAL DELIGHT juice would cost
1) Rs 19.50 per litre
2) Rs 19.75 per litre
3) Rs 20.00 per litre
4) Rs 20.25 per litre
11. SUMMER SONG can be manufactured by mixing
1) MIXED JUICE and APPLE in the ratio 14 : 10
2) MIXED JUICE and APPLE in the ratio 3 : 1
3) MANGO and LITCHEE in the ratio 1 : 1
4) APPLE, MANGO and GRAPE in the ratio 1 : 1 : 2
12. Assume that TROPICAL DELIGHT, MIXED JUICE and SUMMER SONG each sell for the same price.
Which of the three is the most profitable to the manufacturer?
1) TROPICAL DELIGHT
2) MIXED JUICE
3) SUMMER SONG
4) Data is insufficient

Directions (Q. 13-17): Answer the questions on the basis of information given below.
The following radar graph shows the percentage increase in the sale of companies A, B, C, D and E in
year 2004 with respect to previous year.
A
80
60
40
E

20
0

K
KUNDAN

13. Which company has the maximum sale in year 2004?


1) A
2) C
3) E
4) Cant be determined
14. The ratio of sale of companies A, B, C, D and E in year 2003 is 5 : 4 : 3 : 2 : 6. Find the overall %
increase in the sale of all the five companies together in year 2004.
1) 46%
2) 54%
3) 59%
4) 64%
15. The overall % increase in the sale of company C and company D together is 55% in year 2004.
Find the ratio of sale of company C and D in year 2004?
1) 80 : 13
2) 192 : 17
3) 84 : 31
4) 192 : 53
16. If the ratio of sale of company C, D and E in year 2004 is 5 : 3 : 4 then find the overall % increase
in the sale of company C, D and E together from 2003 to 2004 (approx.).
1) 41%
2) 39%
3) 54%
4) 46%
17. The overall % increase in the sale of companies B & C together is 57% and that of companies C &
D together is 47% in year 2004. Find the ratio of sale of companies C, D and E in year 2003.
1) 3 : 7 : 23
3) 5 : 9 : 13
3) 6 : 7 : 11
4) None of these
Directions (Q. 18-20): Read the following information given below and answer the questions
that follow.
The Shyam Dairy company is setting up a plant for manufacture and sale of flavoured milk. The
investment of the plant is Rs 10 crores (to be invested in plant, machinery, advertising, infrastructure etc).
The following table shows the cost of different bottle sizes.

Bottle size

Bottling cost Cost of liquid

Transportation cost

Sale
Price

Dealer
Margin

300 ml

Rs 2

Rs 8

10 paise per bottle

Rs 14

Rs 1.5

500 ml

Rs 5

Rs 10

15 paise per bottle

Rs 21

Rs 2

1.5 lit

Rs 10

Rs 25

20 paise per bottle

Rs 52

Rs 5

18. For which bottle should Shyam Dairy try to maximise sale to maximise its profit (assume that the
total number of litres of flavoured milk sold is constant irrespective of break-up of the sales in
terms of the bottle size).
1) 1500 ml bottle
2) 500 ml bottle
3) 300 ml bottle
4) Cant say
19. If the company sells only 300ml bottles in the first year, how many bottles shoud it sell to recover
the investment made in the first year only?
1) 41.66 106

2) 35.84 10 6

3) 44.56 106
4) Cant say
20. If the ratio of sales of 300ml bottles to that of 500ml bottles is 4 : 1, and there is no sale of 1500ml
bottles, how many 500ml bottles will be required to recover the investment?
1) 17.96 106

2) 24.8 10 6

3) 7.43 10 6

4) Cant say

Answers and explanations

K
KUNDAN

1. 1; The percentage change to net worth is greater than the percentage change for total income in
13 companies.
2. 3; The percentage ROCE for the top five companies is greater than the percentage RONW for only
the company Tata International.
3. 3; 1st to 5th are: Tata Sons, Bharti, Hero, Jaypee and Essar respectively.
4. 2; Draw a line from the bottom left corner to top right corner. The symbols lying above the line are
ones in which profit exceeds 10% of turnover. There are 6 such companies.
5. 3; Six companies lie below 300 profit and more than 2000 turnover.
6. 4; Only five companies fulfil the requirement.
7. 2; Number of children aged 9 years or less = 48
Number of children having height 135 cm or less = 45
Thus 45 children satisfy both conditions.
8. 1;
Number of children

age > 10 years

40

height > 150 cm

25

weight > 48 kg

Thus required number of children = 25 9 = 16.


9. 3;
Number of children
12 years > age > 6 years

55

weight > 38 kg

67

Required number of children = 67 23 = 44.


10. 2; TROPICAL DELIGHT juice would cost minimum when its constituents have the minimum possible price. TROPICAL DELIGHT is made by mixing equal amounts of ORANGE and LITCHEE.
We have the following possibilities:

From the table we have the minimum cost Rs 1975.


11. 4; The possible combinations for SUMMER SONG are given below.
Combination

Ratio

ORANGE + GRAPE

1:1

(APPLE AND MANGO) + GRAPE

1:1:2

K
KUNDAN

12. 2; From Q. 10 we have: the least possible price for TROPICAL DELIGHT is Rs 19.75 per litre.
Similarly, least possible price for MIXED JUICE is Rs 18 per litre (when GRAPE + MANGO are
mixed in the ratio 70 : 30). And least possible price for SUMMER SONG is Rs. 18.5 pre litre (when
ORANGE + GRAPE is mixed in the ratio 1 : 1).
Hence profitability is maximum for MIXED JUICE .
13. 4; Only the percentage increase in the sales of each of the company is given, not the previous
years sale. Hence data inadequate.
14. 2; The overall % increase in the sales of all the five companies together

5
4
3
2
6
80
50
60
30
40
20
20
20
20
20

20 10 9 3 12 54 %
15. 1; 55% increase in the sales of company C and D together is the weighted mean of 60% and 30% .
C
D
60%
30%
55%
25
5
5
:
1 (Ratio of sale in year 2003)

Now,

Sale of company C in year 2004


Sale of company D in year 2004

160
100 80
=
130 13
1
100
5

Required ratio = 176 : 13


16. 4; Let K be present in each of the ratios.

2004

2003
100
3.12
C
5K
5K
160
100
2.3
D
3K
3K
130
100
E
4K
4K
= 2.8
140
Total
12K
8.2K
12K 8.2K
3.8K
100 =
100 46%
The overall % increase =
8.2K
8.2K
17. 1; Similar to solution of Q. 15.
B
C
C
D
50%
60%
60%
30%
57%
37%
3
:
7
7
:
23
B : C : D 3 : 7 : 23
18. 3; Profit from one 300ml bottle = 14 (2 + 8 + 1.5 + 0.1) = Rs 2.4
Profit from one 500ml bottle = 21 (5 + 10 + 0.15 + 2) = Rs 3.85
Profit from one 1500ml bottle = 52 (10 + 25 + 0.20 + 5) = Rs 11.80
Selling 1500ml from 300ml bottles we get 2.4 5 = Rs 12 as profit.
Similarly, selling 1500 ml from 500ml bottles we get = 3.85 3 = Rs 11.55 as profit
Selling 1500ml from 1500ml bottle we get Rs 11.80 as profit.
Therefore, Shyam Dairy should maximise the production of 300ml bottles. (As the number of
litres is constant)
19. 1; Let no. of bottles it should sell be x.
Cost of production of x bottles = x (2 + 8 + 0.1 + 1.5) = 11.6x

K
KUNDAN

Fixed cost = 108


Now, to recover the cost

10 8 11.6x
10 8
14 x
41.66 10 6 bottle
x
2.4
Quicker Approach: From solution of Q. 18.
Profit per bottle = Rs 2.4

Total no. of bottles to sell =

108
2.4

20. 3; Let K be present in the ratio.


The overall selling cost of 300 ml and 500 ml (where they are sold in the ratio 4 : 1)
4 14 1 21 77

15 .4 .
=
4 1
5
Cost of production of 300ml bottle = Rs 11.6
Cost of production of 500ml bottle = Rs 17.15
Now, 15.4

4K 11.6 K 17.15 10 8
4K K

77K 46.4K 17.15K 108 13.45K 10 8

108
7.43 10 6 bottles
13.45