Special studies in Finance- Prelim 2
Solve any 2 questions from Q 1-4. Each carries 7.5 marks. Question 5 is compulsory.
Q 1.A. compute the deferred tax liability as per AS 22
Accounting profit Rs 2,00,000
MAT Profit Rs 1,50,000
Profit as per income tax Rs 50,000
Tax rate 35%
MAT rate 10%
B. State reportable segments as per AS 17
Particulars X Y Z P Q R S
Sales 22 26 8 9 2 18 21
Results 10 -2 8 -18 10 3 1
Assets 20 30 5 25 35 50 10
c. Compute EVA. Capital employed Rs 10,000 crs. Debt equity ratio is 1:1. Ke= 12%, Kd posttax= 8%. Tax rate 50%. EBIT= 500 crs.
Q 2A. Prepare an amortization table for amount borrowed Rs 10,00,000. Repayment period 6 years, Interest Rate- 6% and annuity rate is 4.111
B. A company plans to invest Rs 20 lacs in a project that gives the following inflows for the period of 5 years. Scarp value 0. Inflows are 9lacs, 10 lacs, 12 lacs, -8lacs, 16 lacs. Discounting factor is 12%. Compute NPV and PI.
c. What are the contents of a flash report.
Q 3 A. Randall Limited from India exports goods worth 1,00,000$ to Raquel Ltd in USA on October 11, 2015. The payment terms were as follows
20% spot on October 11 1$= Rs 60
20% on December 31 2015 1$= Rs 62
20% on January 30, 2016 1$= Rs 59
20% on March 1, 2016 1$= Rs 61
March 31st,2016 1$= 58 Rs
Pass journal entries for the period ended March 31st, 2016
Q 3 B. ABC limited imported goods worth 50,000$ from PQR limited on December 15th 2015. Payment to be made in 5 equal instalments beginning Jan 1st, 2016. Pass the necessary journal entries and prepare a FOREX account for period ended March 31st, 2016.
Exchange rate:- dec 15- 1$= 62 rs, Jan 1 1$= 63.5, Feb 1st 1$= 64 Rs, March 1 1$=58.5 Rs, March 31st= 1$=Rs 60
c. What are the ways a company raises equity funds
Q 4 A. Salman purchased a car from Shahrukh Limited on April 1st, 2015 on hire purchase. The value of the car was 10,00,000. Down payment was Rs 2 lacs and the balance to be discharged in 4 quarterly instalments of Rs 3 lacs along with interest beginning on June 30th, 2015. Prepare Shahrukh Account, car account and pass the necessary journal entries for the period 2015-2016.
b. What are the functions of a merchant bankers
c. What are the types of prospectus.
Q 5. A company plans to get into transportation business by purchasing 5 trucks each costing 20 lacs each. The entire loan would be sourced form banks and principal paid in 5 equal annual instalments. The bank charges 15%interest on a written down value method. The company does not have any other security to offer. The company is expected to earn 40% ROI. Each truck would be depreciated 20% WDV with scrap value 0. Tax rate is 40%. Compute an income statement for 5 years and compute the relevant ratios. Also prepare a detailed flash report for the same.

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Education Qualification: BMS- N M College (University Rank Holder) PGDBM- Sydenham College M Com- College topper Mr Vipin Saboo has been associated with the following institutes as a visiting faculty Lords college, Malad Patkar College, Goregoan Saraf college, Malad Dalmia college, Malad St Andrews College, Bandra Wilson College, Grant Road Thakur college, Kandivili L N College, Kandivili N K College, Malad Dhanukar College, Vile Parle St Xaviers College, Marine Lines Shroff College, Kandivili KES College, Khar Mr.Vipin Saboo also has more than 5 years of industry expertise with corporate like CRISIL, Motilal Oswal Investment Banking and Yes Bank. Mr. Saboo has also published a text book on Logistics and Supply Chain Management for TYBMS Students.

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