IV-S-MBA -(FM) -4.

4-(ASIFRS)

2018
Full Marks -70
Time As in the
Programme
The questions are equal value.
Answer ALL questions.
Group-A
1. Answer all the bits serially in TWO or THREE
sentences each.
(a) Who prescribe accounting standards for the
company has India adopted IFRS or converged
IFRS?

(b) Why are Accounting policies disclosed in notes

toAccounts?
(c) What is the general principles of valuation of
inventories as laid down in AS-2?

[ Cont..
 21

and dividend
treat dividend paid
(d) How would you
cash flow statement
received while preparing

as perAS-3?

a car for its Managing Director

(e) Z Ltd. required
The interest payable
on hire purchase basis.
for late payment of
as well as penalty payable

installment was added to the cost of car.

Comment.
and non-
() Give two examples of monetary
monetary assets.

segment reports
(g) Why do the companies prepare
underAS-17?

What is the significance or financial effect of

(h)
related party transactions as per AS-18?

(i) How is right factor calculated?

G) What is recoverable amount as defined in

AS-28?

[ Cont...
 13

Group-B
Answer any FOUR questions: 9x4-36
2. During the year ended 31.3.2017 Moon Ltd.

determined that there had been a significant

decrease in market value of its equipment used

in manufacturing process. Moon Itd. complied

the information below

Original cost of equipment Rs. 60,000

Accumulated depreciation Rs. 40,000

Value in use Rs. 1,50,000

Rs. 1,60,000
Net selling price
of loss ? How
What is the amount of impairment
financial statements.
is it treated in the

Sun Ltd. had outstanding equity

shares 1,20,000
3
Compute ups from
of Rs. 10 each fully paid up.
the following information:

[ Cont..
 141
-
Income from operations before extra-ordinary
items and Tax. Rs. 13,00,000

-
Tax Rate 30 %

Extra- ordinary loss Rs. 3,00,000

-6% convertible preference shares of Rs.10 each.

-
No of shares is 1000

Number ofshare issued on 1.8.2016 Rs. 20,000

Bonus shares issued on 1.2.2017 Rs. 10,000

Pay back of equity shares on 1.1.2017

Rs. 10,000

4. Is segment reporting necessary for a company ?

If yes. How would you identify reportable
segments?

Cont...
 151

5 What is an intangeble asset as per AS-26 ?

Explain the criteria for recognizing interrogable
assets.

6 What is impairment of asset as defined in AS-

28? How is it determined ? Explain it.

7. What is merger as per AS-14 ? What method

ofaccounting is suggested in merger?

8. What is meant by revaluation of fixed assets as

laid down in AS-10? Where a fixed asset is
revalued. How would you deal with in the

accounts ?

Group-C
(compulsory)

9 Balance sheets of holding and subsidiary

company are as follows: You are required to

calculate:

[ Cont..
 I6

Goodwil!
(i) Cost of control of

(ii) Minority interest.

As on 31. 3.2016
H.Co S.Co
Liabilities
Rs. Rs
Equity share capital

(Face value Rs10 each) 6,00,000 4,00,000

General Reserve 1,60,000 80,000

Profit&Loss 20,000 25,000

8% debenture 60,000 50,000

Bank loan 30,000 40,000

Accounts Payable 1,00,000 80,000

Proposed dividend 60,000 40,000

10,30,000 6,15,000

[ Cont...
 171
Assets
Land&building 4,00,000 3,00,000
Plant&Machinery 2,00,000 1,00,000
Equipments 2.50,000 1,50,000
Investment in S.Co 150,000
Accounts receivables 30.000 65,000
10,30,000 6,15,000

Additional information:

() H.Co purchased 3/4 in shares of S.Co. on

31.3.2016 and remaining shares by minority
shareholders.

(i) Plant & machinery of S.Co. was revalued at Rs.

1,20,000.

IV-S -MBA -(FM) -4.4-(ASIFRS)

 IV-S-MBA -(FM) -4.1 -(CGBE)

2018
Full Marks -70
Time As in the
Programme
The figure in the right hand margine indicate marks.
Answer all THREE Sections.

Section-
1.(A)Please re-write the full question on your answer
sheet and fill in the blank.
(Choose from among
-
the following words to fill
up the blanks
change,
confidence, compliance, govemance, employees,
establishes, responsibilities, oversees, capital,
govemment.
(i) Acorporation is a conglomeration of various stake
holders, namely, customers,
investors, vendor partners, and
society.

[ Cont..
 12

(i) Corporate govemance 'a system and

process' where by directors are entrusted with

duties and in realtion to the direction

of company's affairs.

(ii) The Director's role is in improving effectiveness

of a company's and he or she can
be described as an 'agent of
(iv) Corporate governance system the
work of the designated managers responsible
for ensuring with corporate
governance procedures and company policies.

(v) Good corporate governance generates

among investors and helps generate
for operations and growth of the
corporation.
(B) Please mark True or False after re-writing the
questions on your answer sheet.

(i) A Board is responsible for defining the roles of

the corporate authorities.... Ture/ False

[ Cont...
 13
(ii) The vision statement of the corporation reflects
the collective wisdom of the Board and not

necessarily the philosophy of the Chairman

owner of the corporation... True False

(Gii) Positioning of lady members on the Board is more

to meet the feminist demand of women

empowerment rather than necessity of good

corporate governance... .. True False

(iv'Social Good' doing orCSR has become a slogan

rather than a powerful competitive differentiator
. True False

(v) The corporate govemance framework is required

to ensure protection and facilitation of rights of
all types of shareholders including that of minority

and FEs... True/ False.

Section-
2. Please with short notes any FOUR (4) of the
following SEVEN (7) questions. All questions
carry equal marks (9) each please be specific

[ Cont...
 41
answer to 200-4250
restrict your
and brief and
onyour
write the ful questions
words. Please do
of the
a n s w e r sheet
before commencing writing
(36
answer
Define a Director's role in a
corporation
2.1
Board and mention and describe
the criteria

of selection of a person to the Board.

2.2 What is the key objective of introducing

CSR as legislation in India.
2.3 Describe the impact of positioning women

directors on the Board. You can express

your views either supporting or not

supporting the issue.

2.4 Describethe difference in the role played

by the Board and Management in Corporate
Governance.
2.5: Describe the relationship between Good'
Corporate governance and Business
prospects of a company.

[ Cont..
 51
2.6: Describe the
concept, relevance and
significance of statement of Ethics' in the
Corporate govenance policy of a
2.7:
company.
In terms of'Good'
corporate governance,
describe the
objectives set by
Confederation of industries (CI1) OR
Kumar Mangalam Commitee
(Either/ OR).
Section-ll
3. Case Study. Please read the case
carefully and
answer any TWO questions at the end of the
case. Each question carries 7 marks. Please be
brief and to the point.
Sample Code of Conduct statement for Directors
&Senior Managementofa company XYZLimited.
"The members of the Board of Directors of XYZ
Ltd., acknowledge and accept the scope and
extent of their duties as Directors. They have

responsibility to carry out their duties in an honest

and business like manner and within the scope

[Cont...
 161

of their authority, as set forth in the laws of India,

as well as laid out in the Memorandum and Article

of Association of the Company. They

are

with and are responsible for the oversight

entrusted

of the assets and business affairs of XYZ

Ltd., in
ethical manner. As
an honest, fair diligent and
the bounds of
Directors, they must act within
to
authority conferred on the by with the duty

make and enact informed decisions

and policies
The Board of
in the best interest of the company.
conduct for
Directors has adopted a code of
themselves and Directors and senior managers
standards of care,
are expected to adhere to the
avoidance of conflicts of
loyalty, good faith and
interest that follow."

The above is a preamble to a long

list of code of
conduct which the Board of Directors are expected

to adhere to. The list does not seem to

differ much
the
example
Company to Company. However, taking
from recent times, numerous instances of fraud
and causing financial losses to the country through
working around loop holes is regulations and laws
of the land have come to light.

[Cont..
 171
Questions:
1. Pick up any one instances of corporate fraud of
recent times and and present briefly the part
failure of Governance system in terms of the
'Ethics Clause' the Board members had signed
at the time of assuming their charge as Directors.

2. In selection of Directors for the Board of a Private

Limited Company, discuss the role ofthe "Owner
Chairman'" in upholding the ethics and regulatory
framework to which he or she is supposed to be
the principal custodian. In ase of failure of ethical
should be
governance of the company, who
held guilty, the Chairman alone or the
primarily
collective of Directors, including the Chairperson?

Explain your views on the

above with reasoning.
had been engaged in
3. The company XYZ Ltd.
work since its
charityand religious and social
1960s. The CSR act
inception in the early
times has given a legal
implemented in recent
social up-lift work they
framework to the kind of
the Board to
were already dong and empowered
oversee and regulate
the same. Consider yourself

Cont...
 8

as a member of the Board ofXYZ Ltd. and in the

light of the regulatory directives from GOI

regarding conduct of CSR in the Company, what
initiatives would you suggest to put in place a
formal organization and system to organize CSR
activities of the Company ?

4. In the MOA of the company, it is recorded that

"For the purpose of minimi.zing the risk of conflict
of interest, the Board shall adopt a policy providing
for the review of transaction with the company or
any of its affiliates in which any Director, inculding
his or her immediate family has direct or indirect
interest." Comment, why such kind of directive
are put ina MOA and on the impact on company's
Governance system could take place in case the
above regulation is violated.

IV-S MBA -(FM)

-4.1-(CGBE)
 IV-S-MBA-(FM)-4.2-(CMF)

2018
Full Marks - 70

Time-As in the Programme

The questions are of equal value

Answer questions from all Sections as directed therein.

Section-A
1. Answerallquestions. Each question carries TWO
marks. [2x10-20
(a) Clearing Member

(b) Cash Settlement

(c) Price discovery

(d) Spread
(e) Curb Trading
(6) Open Interest

(g Cash -
and carry arbitrage
(h) Normal Backwardation

(i) Outright Position

G) Commodity Fund

Cont..
 121

Section-B 7.
Answer any FOUR questions. (4x9-36
2 Does eliminating the middlemen from the supply
chain guarantee a high price realisation for the
farmer and low buying cost for the end user ?
How RMCs can answer these questions ? Explain
the functioning of RMCs in light of the above
questions and suggest same answers to the
problemms of RMCs.

3 "Everything under the sun can be traded in

futures market." Explain the above statement in
regard to Indian commodity futures market and
suitability of commodities.
A What is a commodity futures exchange ? What
are its functions ? Explain its role in economic
development of a nation.
5 What is hedging
? What are the different types
of hedges? Distinguish between static and
dynamic hedging.
6. What do you mean by
arbitraging ? Distinguish
between cash-and carry-Arbitrage and Reverse
cash-and-carry Arbitrade.
[ Cont..
 131

7. What is the information that basis carries and

how is it relevant for hedgers ? Is it possible for
the normal market to turn into inverted or vice
versa ? Explain when might this happen.
8. Asume gold has a spot price of Rs. 30,000 per
10 gms. on 01-10-2017. Given below are the prices
on its futures contracts for the next few months

Nov. 2017 Rs. 30,100

Dec. 2017 Rs. 30,150

Jan. 2018 Rs. 30,300

for January, what is
(a) If a jeweller wants to hedge
thebasis?
the spot price of gold has
(b) If by 15 Oct. 2017,
moved to Rs. 30,080 per 10 gms. and the Jan.

2018 futures
are priced at Rs. 30,200, what has
basis ?Why ?
happened to

need for regulation of futures market

Explain the
instruments
used in regulating futures
and the
market.

[ Cont..
 41
Group-C

Compulsory [1x14 14
to sow
In November, a wheat farmer planning
is
10.
late
wheat, which will be ready for harvesting by
March and delivery in April. The farmer expects
to harvest 500 tonnes of wheat and the prevailing
which he
spot price is Rs. 11,800/- per tonne,
wishes to lock in, since he fears price may
fall

below this level by the time his wheat is ready for

sale in April. At that time, April wheat future are
trading at Rs. 12,000 per tonne. To protect his
selling price, the farmer enters a short hedge by
selling same April wheat futures.
By lat March, his wheat crops are ready for
harvesting but the price of wheat has since then
faller to Rs. 11,500 per tonne. Correspondings
the price ofApril wheat futures have are faller are
nowtrading at Rs. 11,700/-per tonne. Assuming
one futures contract covers 10 tonnes find his
net loss from farming business, net gain in futures
market and overall profit.

IV-S-MBA-(FM)-4.2-(CMF)
 IV-S-MBA-(FM)-4.5-(RM)

2018
Full Marks -70
Time As in the
Programme
The figure in the right hand margine indicate marks.
AnswerALL questions.

Section-A
1. Answer all.
[2x10-20
(a) Differentiate merchandise and
assortments.
(b) What do you mean by"market penetration"?
(c) Explain.the term "market development".
(d) What do you mean by free standing location?

(e) Whatis interactive kiosk?

[ Cont..
 121

(f) Define "category killer"

(g) What do you mean by Bait and switch
pricing ?
(h) Write the meaning of 'Flea Market.
) What do you mean by "hyper market" ?
g) Give example of two retailers, who are into
beauty
care products?
Section-B
Answer any FOUR [4x9-36
1. "Indian Retailer sector suffered a lot because of
many road blocks". Give you opinion.

2 Write in detail about different non store based-

retail formats available in India.

3 Write on any two theories of retail development

and their uniqueness.

A "Retailers need to make a definite plan to tap the

market and build a long term relationship with
consumer". Discuss.

[ Cont..
 131
5 Write the importance of "store
location" in retail
business with types of location and their
features.
6 Discuss the growing
importance of store design
and store layout in
attracting customers.
7 As a store manager of 'Vishal
Mega Mart.
Suggest different in-store and out of store
communication strategies for coming Raja festival
in Bhubaneswar.

8. "Information Technology helps retailers to

manage costs and deliver better value to
customers". Elucidate.

Section-C
With the advent of digital ecosystem,
traditional consumer purchase decisions are
being disrupted. Companies need to recognise
the underlying change that is taking place and
adapt to become the product or brand of choice

in this new consumer decision making journey

[ Cont...
 141
moment look at traditional
Let's for a
decision process in the pre-
consumer purchase
Which included problem recognition,
digital era.

information search, looking at alternatives,

purchase decision, buying and post purchase
like a
evaluation. Imagine a high value purchase
car, most of the comparison of models, design,
consumer
features, demo videos, prices,
feedback is done online. Therefore, consumer's
search intent is available to platform agents like
Google. Facebook, Amazon and the like. They
have now started playing a huge role in infiuencing
consumer purchase decision in the evaluation
phase. Consumer purchase decision, now have
a discover phase where 'search and discover' go
together. What was a planned and considered
purchase is now being driven almost like an
impulse purcahse through these platforms. So the
days of competing for space in aisles and getting
into the shopping bags in becoming increasingy

[ Cont..
 151
tougher. Therefore many of the steps in the
traditional purchase decision process have
collapsed due to digital ecosystems and
platforms.
The new consumer purchase decision
making process has now changed to what we
can term as DECIBEL -discover, explore, collate,
do
inquire, buy, experience, loyalty. So, how
companies or brands prepare for these changing
consumer purchase decisions era ?
brands need to
Companies or marketers or
like how platform agents
reimaging and think
architectures with these
Work and integrate their
in thé early two stages. So, if
platform agents
travel brand, how
can one help
one were a
discover their proposition and get
consumers

what one has to offer or if one

them to explore
there is a need to
was a tea or a beauty brand,
discover the tea drinking
consumers
help
beautiful experience rather
experience or getting

Cont...
 61
on the product or the brand.
than must focussing
and building proprietary intent data
Integrating
next
become critical at this stage. The
platforms
is to think, how can
firms help c o n s u m e r s
step
collect more information. Building an information
contextural and personalisedis key
engine that is
of
this phase. The third step is to be a part
during
Imagine brands having
their inquiry process.
assistants where
virtual personal shopping
consumers can ask questions to their beauty,
assistants. This is where
the
travel and banking
Firms
of Al and Machine learning comes.
power
to know how to integrate
technology and
need
rule algorithms in this phase with the purchase
is an area that will evolve in the
process. This

coming years.
phase, the
During the buy and experience
and the like becomes
integration with mobile apps
and
they can serve as an purchase
in
critical as
where either purchase
post purchase experience,
online. Post
is made frictionless- both offline and
purchase experience can be managed better

Cont..