BBA- LLB (Hons) fab - Financial Manegement Cine) Examinetion Date - Sen — ji] Q. P. Code: 25809 27h 17 Time 2 hour 30 mins. Attempt Q-1 compulsory and Any 4 from remaining as per instructions Working note is required as per questions Mention your answer numbers as given Each question is of equal Marks 15 Qu From the following annual statements of Aarsh Lid, calculate the following ratio Marks 75 (a) GP Ratio : b) Operating Profit Ratio ; (c) Net Profit Ratio ; (d) Current Ratio ; (e) Liquid Ratio (f) Debt Equity Ratio ; g) Return on Investment Ratio ; (ht) Debtors Turnover Ratio (i) Fixed Assets Turnover Ratio. ‘Trading and Profit and Loss Account for the year ended 31st March 2015 _ Particulars ‘Amt. Particulars ‘Amt. [To Materials Consumed By Sales 85,000 pening Stock - 9,050 By Profit on Sale of Investments 600 narchases - 54,525 By Interest on Investments 300 63,575 [closing Stock ~ (14,000) 49,575 [To Carriage Inwards 1,425 Po Office Expenses 15,000 [To Sales Expenses 3,000 [To Financial Expenses 1,500 [To Loss on Sale of Assets 400 [To Net Profit 15,000 [Total 85,900 | Total 85,900 Balance Sheet as at 31st March 2015 Liabilities Amt. Assets. Amt, Share Capital: 2000 equity shares of Fixed Assets Rs.10 each fully paid up 20,000 Buildings 15,000 Reserves 3,000 Plant 8,000 Profit & Loss Account 6,000. | Current Assets: Secured Loans 6,000 Stock in Trade 14,000 Bank Overdraft 3,000 Debtors 7,000 Sundry Creditors: Bills Receivable 1,000 For Expenses 2,000 Bank Balances 3,000 For Others 8,000 Total 48,000 | Total 48,000 Q-2 You are required to prepare a statement showing the working capital required to finance the level of activity of 120,000 Units per year from the following formation: 1, Raw materials are in stock on an average for 2.5 months 2. Materials are in process on an average for month. 3. Finished goods are in stock on an average for 2 month, Page Lof 3 (C624DB4COIF29DB656CD4E6D6151890A,Q. P. Code: 25809 4, Credit allowed by the suppliers is ¥¢ months of purchase of raw materials and credit, allowed to the customers is 1Y4 months, 5. Lag in payment of wages and overheads is one month, 6. Cash and Bank balance is expected to be 10% of Net working Capital before considering the Cash and Bank balance.also Margin of safety to be created 10% 7. Activities are spread evenly through out the year: * Cost Per Unit: Raw Material Rs. 10 Wages Rs. 5 Rs. 30 Total Cost Including All Direct overheads © Profit is 20% on Selling price Q3 Prepare a Comparative Revenue Statement in Vertical Form from the following details: ‘Amal 1d. ‘Trading, Profit and Loss Account for the year ended 31st March 2016 [2017 | Particulars 2016 | 2017 Rs. Rs. Rs. Rs. To Opening Stock 2.25,000_| 3,00,000_| By Sales 45.00,000 | 60,00,000 To Purchases 22,50,000 | 32,10,000 | By Closing Stock 3,00,000 | 3,60,000 To interest on 150,000 [1,50,000 | By Dividend 12,000 [39,000 Debenture To Depreci By Profit on Sale of [24,000 = Machinery Furniture 15,000 | 15.000 Machine 36,000 | 30,000 To Administrative 2,94,000_| 4,41,000 Expens To Sellin (6,000 _[7.53,000 ToC: 75,000__ | 3,15,000 To Loss by Fire = [15.000 To Wages 1,95,000_| 3,00,000 To Provision for Tax | 5.70,000_| 4,35,000 =i] To Net Profit 5,170,000 | 4,35,000 48,36,000 | 63,99,000 48,36,000 | 63,99,000 Q-4 From the following information which are furnished for four companies prepare Income statement of each company, and comment on it. Particulars Al x Ag Aq Financial leverage 3:1 41] 2: 25:1] [interest Rs.40, Rs.60, R5.1,004 RS.80.04 rating Teverage 4:1 5 3a 3: income Tax 30% 30% 30% 30% ariable Cost 50% 55% 60% 70% Page 2 of 3 (€624DB4C01F29DB6S6CD4E6D61518908,Q. P. Code: 25809 Q-5 Ankit enterprises wants to set up a project with capital investment of Rs, 8,00,00,000. It is considering three alternatives of financing:~ Alternative | = 60% Equity Financing and 40% Debt fund @ 8% Alternative If = Equity share : 11% Preference share Ratio 50% : 50% Alternative II = 7% Debt : Equity : 10% Preference 30%:40%:30% ‘The estimated net cash inflow annually is Before interest and tax estimated to be Rs. 2,00,00,000 on the project. Calculate EPS for three different alternatives ,analyse the capital structure decision. Tax rate 30%. Equity share @ Rs100 per shares ‘Also Find Financial break even point for Alternative Il and Alternative IIL Q-6 a) Find the Loan payments per annum for the following Cost of Machinery Rs.1,00,00,000 Borrowing rate 15% Term of Loan 5 Years Prepare amortisation table if a) Amount of loan is paid equally over the period of 5 years PVIFA @ 15% .5 years is 3.3521 b) Bank X GBP/NR —_82.4510/00 Bank Y GBP/INR — 82.4626/00 Find out Spread % for both the quotation and also Arbitrage gain from both quotations for 1 million investment Q-7 (a) What is Financial Management what is it’s Importance? (b) What is the need of Working Capital Finance? Q8 Write short note any 2 i) What is Financial break even point how itis acheived ii) Distinguish between Operating, Financial and Cimbined leverage iii) Ratio analysis and Financial statement iv) Cost of Capital for company and its calculations? Page 3 of 3 (C624DB4COLF29DBGS6CD4E6D61S1890A,—-