UPSC Mains Commerce & Accountancy Optional PYQs, 2016-2026

What is Profit-Volume ratio? How does it help in Profit planning? Explain with suitable examples.

Distinguish between Amalgamation in the nature of merger and Amalgamation in the nature of purchase.

What do you understand by 'marginal costing'? How is marginal costing useful for solving various managerial problems?

Discuss the perquisites which are taxable for all employees..

Explain the major points to be considered by an auditor while auditing the accounts of a charitable trust.

X ltd. and Y agreed to amalgamate and form a new company Z ltd. which will take over all the assets and liabilities of the two companies. In the case of X Itd., the assets and liabilities are to be taken over at book value for shares in Z ltd., at the rate of 5 shares in Z Itd., at 0% premium (ie. per share) for every 4 shares in X Itd. In the case of Y Itd.: (i) The debentures of Y ltd. would be paid off by the issue of an equal number of debentures in Z ltd. at a discount of 0%. (ii) The holders of 0% preference shares of Y ltd. would be allotted four, 2% preference shares of 00 each in Z ltd. for every five preference shares in Y Itd. (iii) The equity share holders would be allotted sufficient shares in Z Itd., to cover the balance on their accounts after adjusting assets values by reducing plants and machineries by 0% and providing 5% on sundry debtors. 3 . The summarised balance sheets of the two companies just prior to amalgamation were as follows: Liabilities X ltd. Y Itd. Assets X ltd. Y Itd. Td Equity share 8,00,000 0,00,000 Plant and 6,00,000 6,00,000 capital of $0 machinery each 0% Preference - 6,00,000 Stock,30,000 |,20,000 shares of $200 each 4% Debentures 4,00,000 Debtors,90,000 |,00,000 Profit & 0,00,000 ~ Profit & ~ 2,80,000 Loss a/c Loss a/c Contingency,00,000 Bank,30,000 80,000 Reserve Creditors,50,000},80,000 |_| 20,50,000 2,80,000 20,50,000 2,80,000 You are required to: (i) Calculate the purchase consideration for X Itd. and Y Itd. (ii) Show journal entries in the books of Y Itd. (iii) Prepare balance sheet of Z ltd.

20 marks

What is service tax? Discuss its features. Explain the rationale behind changing the GST rates.

5 marks

How is special investigation different from regular investigation? Discuss the Key Points that an Investigator must consider in special investigation.

A of Agra submits the following particulars of his let out residential house: (A) Rent received for house as well as for various amenities provided to the tenant. Amount (i) For House 6,000 per month (ii) For lift maintenance,600 per month (iii) For security charges,400 per month (iv) For electricity and water,600 per month (B) Municipal valuation,70,000 per annum (C) Fair Rental value,52,000 per annum (D) Standard Rent,40,000 per annum (E) Municipal Taxes 0% of Municipal valuation (50% to be paid by tenant) 5 (F) Repair expenses met by tenant 0,000 (G) Insurance premium 2,000 (H) Interest on loan taken in 2014 for Renovation of the house 50,000 per annum (0) Unrealized rent recovered (Actual 748,000 but deduction allowed %36,000 only) 24,000 Compute Mr. A's income from house property and any other income for the Assessment year 2025-26, assuming that Mr. A spent ¥22,000 on providing facilities to the tenant.

20 marks

A manufacturer produces certain goods through three processes. Profit is not included in the process transferred but goods in godown are sold at cost plus 25% profit. In each process 5% of weight put in it is lost and 20% is scrapped, which from Process A and Process B realises ¥20 per ton from Process C %5 per ton.. The details of production of three processes are given below: Particulars Process Process Process A B Material 2000 20,000 100 30,000 400 4,000 Wages 8,000 4,000 2,000 Expenses 2,000 6,000 4,000 Passed to next process 60% 80% Carried to Godown 40% 20% 00% Prepare Process Accounts and Godown Accounts. i)

Explain the reasons and process of buy back of shares.

5 marks

What is Responsibility Accounting? How does it contribute in improving the organizational effectiveness?

5 marks

Global Itd., produces an article by blending two basic raw materials. It operates a standard costing system and the following standards have been set for raw materials: Standard Mix Standard rate per Kg a The standard loss is processing is 5%. During April 2026 the company produced 3400 kg of finished output. The position of stock and purchases for the month of April 2026 is as under:. Material Stock Stock Purchases during April L4.26 30.4.26 Kg Kg 'z= 8 80 2400 6000 Analyse material variance.

5 marks

Answer each of the following questions in about 50 words

Explain the CAPM approach for computing the cost of equity. Discuss the merits and demerits of the approach.

Discuss Gordon's model of dividend decision.

What is a Funds Flow Statement? Discuss its managerial uses.

10 marks

Discuss the reasons for the emergence of Innovative Debt Instruments.

Discuss the role of credit rating agencies in India.

Discuss the monetary policy of the Reserve Bank of India over the years. Explain the tools of monetary policy available with the Reserve Bank of India.

The following is the data regarding two companies X and Y belonging to the same equivalent risk class: Company X Company 7 Number of Equity Shares 2,00,000 3,00,000 0% Debentures,00,000 = Market price per share 7 -30 =-00 Profit before interest £40,000 %40,000 All profits after paying interest on debentures are distributed as dividends. Explain how under Modigliani and Miller approach, an investor holding 0% of shares in Company X will be better off in switching his holdings to Company Y.

5 marks

Describe the costs of maintaining receivables. Explain the factors which influence the size of receivables.

5 marks

Using the following information, complete the Balance Sheet given below: Total Debt to Net worth — 0-5: l Turnover of total assets (based on year end sales figure) — 2 Gross profit ratio — 20 percent Average collection period (based on 360 days) — 30 days Inventory turnover (based on cost of goods sold and year-end inventory) — 3 Acid-Test Ratio — 0-8: ] All sales are assumed to be on credit basis. Balance Sheet Liabilities and Equity. (®) Assets (%). Notes and Accounts Payable - Cash - Common Stock 9,00,000 Accounts Receivable — Retained Earnings 3,50,000 Inventory - Equipment = Total Total

20 marks

0-877 0769 0-675 0-592 0-59: l] A company is considering the proposal of installing a new equipment which requires an investment of ¥400 lakhs. The expected life of the equipment is 5 years without any salvage value. The project is expected to generate the following earnings before depreciation and taxes over the next 5 years: Years a 2 3 " 5 The cost of raising additional capital for the project is [4 percent. Assume that the company is allowed to charge depreciation on straight-line basis for tax purposes and that the tax rate is 40 percent. You are required to calculate the net present value of the project and advise the management to take appropriate decision. Present value of at the discounting rate of 4 percent is given below for 5 years: PV at 4% 0-877 0-769 0-675 0-592 0-59

5 marks

Explain the process of financing by the venture capitalists in India. In this context, discuss the types of investment instruments used by them for financing.

"Investing in securities through mutual funds is a better choice than direct investment" — explain the statement. Also discuss the types of mutual funds prevalent in India.

20 marks

The earning per share of a company is and the rate of capitalisation applicable is 2 percent. The company has before it, an option of adopting (i) 50, (ii) 60 and (iii) 00 percent dividend payout ratio. Compute the market price of the company's quoted shares as per Walter's Model if it can earn a return of (A) 5, (B) 2 and (C) 5 percent of its retained earnings.

5 marks

Discuss the types of mergers. Explain the financial objectives of mergers.

5 marks

Answer each of the following questions in about 750 words

"Technological environment is considered dynamic." Comment.

Explain the concept of organisational goals.

Elucidate organisational structure with reference to work from home and flexitime.

Explain the concept of quality circles.

Describe customer expectations and organisational changes.

Explain the various types of organisational culture.

Define organisational design. Explain in detail the salient features of organisational design that managers must consider.

20 marks

Critically examine in detail the various types of organisational structure.

20 marks

What is formalisation? Discuss its role in achieving organisational efficiency and mention the potential challenges of high formalisation.

20 marks

Differentiate between line and staff functions. Describe in detail the role of coordination and specialisation while designing functional organisational structure.

20 marks

Discuss the methods. of managing and changing organisational culture.

"Transactional analysis provides a useful but limited framework for understanding organisational communication." Comment.

20 marks

Analyse the role of modern leadership theories in shaping quality of work life in contemporary organisations.

20 marks

Evaluate critically the impact of Total Quality Management (TQM) on employees' behaviour and organisational effectiveness.

Paradoxes in Human Resource Management (HRM)

Technological innovations and employees' retention

Role of the International Labour Organisation (ILO) in the dynamic world order

Positive impact of liberalisation on Trade Union Movement (TUM)

Impact of employees' welfare on their performance

"Job rotation, job enlargement and job enrichment are merely attempts by managers to avoid individuals at work." Comment.

20 marks

Explain the sources of conflict at the following levels: 0 () Within individual (ti) Interpersonal conflict (iti) Structural conflict

"Geopolitical realignments, accelerating technological change and shifting organisational expectations are elucidating the challenges of human resource management and redefining the role of HR managers." Comment.

20 marks

"Many of the industrial conflicts have their roots in communication gap between management and workers." Discuss the statement and also give its solution.

20 marks

How will you deal with the problems of transfers and promotion in your organisation? Explain.

Critically examine the existing machinery for prevention and settlement of industrial disputes in India.

20 marks

"Over the last few decades, the relationships between workers and management have considerably changed." Comment.

"High labour turnover is a symptom of weaknesses within an organisation." Discuss the statement. How can the management in collaboration with different stakeholders reduce the labour turnover? Comment.

20 marks

What is the present status of workers' participation in management in Indian context? Explain its rationale and future prospects in the era of contemporary world.

Answer each of the following questions in about 750 words

Discuss the key points that an Auditor would take into consideration while auditing the books of accounts of an insurance company.

What role does accounting play in a financial information system? What type of information can be derived from it?

What is Cost Accounting? What are its objectives? How does it differ from Financial Accounting?.

Discuss the various variances in standard costing system. How are the material, labour and overhead variances different from one another?

Distinguish between VAT and Service Tax. How do they apply to goods and services, and what are the administrative challenges in these taxes?

[ P.T.O. ( From the following Trial Balance and other additional information furnished by AGN Ltd., prepare the Balance Sheet as at 31st March, 2025 as required by Schedule-III Division-I of the Companies Act, 2013 and show the Notes to Accounts below the Balance Sheet: Trial Balance Particulars Credit (₹) (₹) Equity Capital (Face Value of 00) 20,00,000 Calls-in-Arrears 2,000 General Reserve 4,60,000 Loan from SBI (Long-term) 3,00,000 Land 4,00,000 Building 8,00,000 Plant & Machinery,00,000, Furniture,20,000 Raw Materials,00,000 Finished Goods 4,00,000 Trade Receivables 3,80,000 Advances (Short-term) 90,000 Provision for Taxation,38,000 Dividend Payable,20,000 Profit & Loss A/c,80,000 Loans (Unsecured) 2,590,000 Trade Payables 4,00,000 Cash at Bank 3,86,000 Cash in Hand 70,000 38,48,000 Additional Information:, (i) 6000 Equity Shares were issued for consideration other than cash (ii) Loan from SBI includes € 8,000 for interest accrued but not due. The loan is secured by hypothecation of building (iti) The cost of assets: Building 9,60,000 Plant & Machinery 4,00,000 Furniture,80,000 (iv) Trade Receivables of £,80,000 are due for 8 months 0+l0=20 oh

It is observed that at a monthly sale of €,20,000, a firm suffers an operating loss of © 30,000. The management apprehends that any increase in sale will further rise the loss. However, the Accountant of the firm analyzed the situation based on cost, volume and profit, and showed that the firm may earn € 30,000 operating profit by doubling the sale. Based on the above information, you are required to measure— 9 P/V ratio; (ii) monthly fixed costs; (iii) BEP; MOS for profit of * 40,000; (v) profit for monthly sale of €3,00,000.

5 marks

Explain in brief the principles of inventory valuation based on AS

Describe in brief the permissible methods of depreciation based on the relevant Accounting Standard.

5 marks

Explain in brief the deductions that are expressly allowed in computing the income from business under the Income-tax Act, 96l.

5 marks

Harish sold jewellery on 15th June, 2023 for €0,0,000 (cost of jewellery to Harish on 25th May, 2002 was 94,500 and brokerage paid on the sale of jewellery was 0,000). On 5th December, 2023, he purchased a residential house for €5,00,000. On 15th June, 2023, he did not own any residential house. The cost inflation index for 2002-03 was 05 and for 2023-24, it was 348. Compute the amount of capital gains chargeable to tax for the Assessment Year 2024-25. () Assuming that Harish sells the new residential house before 5th December, 2026, what will be the taxable capital gains and for which year? (i) Assuming that Harish purchases any other residential house before 15th June, 2025 or constructs any other residential house before 5th June, 2026, what will be the taxable capital gains and for which year?

5 marks

Sky Ltd. invited application for issuing 200000 Equity Shares of € 0 each at a premium of €2 per share, payable as follows: £6 per share (including premium) on application and allotment Balance on the first and final call Applications for 600000 Equity Shares were received. Applications for 300000 shares were rejected and money refunded. Shares were allotted on pro rata basis to the remaining applicants. The first and final call was made and all the amount was received except on 2000 shares, which were forfeited and reissued at ©7 per share. Pass necessary Journal Entries in the books of Sky Ltd.

20 marks

State the duties of an Auditor with regard to payment of dividend. Discuss the audit procedure to be followed by the Auditor in respect of checking of payment of dividend.

5 marks

Discuss the important points that an Investigator must consider in the beginning and during the conduct of an Investigation. How should an investigator draft his report?

5 marks

A by-product 'Beta' is derived in the course of manufacturing a product 'Alpha'. The by-product is further processed for sale. From the following data available from the records, prepare an account showing the cost per kg of product 'Alpha' and the by-product 'Beta'. The quantities produced during the period under consideration were—'Alpha' 00 kg and 'Beta' 50 kg. The selling price of 'Beta' was ©20 per kg on which the profit earned was estimated at 30%: 4 Separate Expenses Joint Expenses (=) Alpha Beta (₹) (₹) Materials 0,000 6,000 500 Labour 7,000 5,000 2,000 Overheads 2,500,500 600 20 each 7

Answer each of the following questions in about 750 words

Explain the concept of optimal capital structure. How does a company decide on the right mix of debt and equity?

Write about Miller and Orr model of cash management.

Differentiate between capital market and money market in the context of Indian financial system.

Explain the concept of dividend policy. Discuss the various types of dividend policies followed by the companies.

Explain the concept of financial services. Discuss the concept of credit rating and its growing importance in Indian financial services.

Define and explain the concept of merger, takeover and amalgamation. What leads to the failure of a merger or an acquisition? How should a company ensure that merger or acquisition is successful?

20 marks

Rainbow Ltd. provides the following data for the year 2023-24: Sales—T 80 lakh Variable Cost—™ 56 lakh Fixed Operating Cost—%8 lakh Fixed Finance Cost—t 4 lakh Effective Tax Rate—25% EPS—T&9 () Compute the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of Combined Leverage (DCL) for the company and interpret the results. (ti) If the company can increase its sales by 20%, by what amount will EPS change? Give your answer on the basis of your results obtained in (i).

5 marks

A company provides the following information related to the capital structure planning: Leverage is measured as Debt/(Debt + Equity) At 20% leverage, cost of equity (K,) is measured at 8% () What will be the K, at 40% leverage, if Net Income (NI) model is followed? (i) If Net Operating Income (NOI) model is followed while overall cost of capital (K,) is 6%, what will be the K, at 40% leverage? Assume cost of debt capital (K,) to remain constant.

As a Financial Manager of an engineering company, you are required to compute the weighted average cost of capital of the company using () Book- value weights and (2) Market-value weights. The company's present capital structure is: t Equity Shares (€0 per share) 30,00,000 0% Preference Shares (€00 per share) 4,00,000 2% Debentures (© 00 per debenture) 4,00,000 48,00,000 All these securities are traded in the securities market. Their recent prices are: Debentures—% 0 per debenture Preference Shares—t 5 per share Equity Shares—t 40 per share Anticipated external financing opportunities are: (i) New ©00 Debentures can be sold at par at 9% coupon rate, reedeemable at 0% premium after 5 years. Flotation cost would be 2% (ii) New ©00 Preference Shares carrying 8% dividend can be sold at par, redeemable at premium of 5% after 0 years. Flotation cost would be €3 per share (tii) New © 0 Equity Shares can be sold at € 35. Flotation cost would be 2% of issue price. Expected dividend on Equity Shares is 20%. Anticipated growth rate in dividend is 8%. Corporate tax rate is 40%

20 marks

Discuss the present state of Indian capital market. Illustrate the role of SEBI in regulating the markets in the changing international investment scenario.

20 marks

How is Economic Order Quantity (EOQ) determined? How does quantity discount affect the EOQ?

Explain the structure of Indian financial system. Discuss the emerging role of RBI in the changing global scenario in this 21st century.

5 marks

[ E:T... ( A plant with a life of 3 years has the following projected cash flows: Year Cash Flows (₹) 0 (-) 20,00,000 8,00,000 2 8,00,000 3 9,00,000 There is no residual value at the end of the life of the plant. Calculate the— (i) Internal Rate of Return (IRR); (ii) discounted payback period. Applicable discounting rate is 0% p.a. Present values of € at the discounting rate of 10% and 2% are given below for 3 years: Year: 0 ] 2 3 PV at 0% i ] 0-909 0-826 PV at 2% i 0:892 0:797 0-72

20 marks

Discuss the role of insurance industry and IRDA in the economic development of the country.

Answer each of the following questions in about 50 words

Relationship between quality work life (QWL) and organisational performance.

Determinants of Personality

Types of external-environment of organisation

Types of Organisational Structure

Neo-classical theory of organisation

10 marks

"Organisational design is not merely about structure, but about strategically aligning people, processes, and objectives in an ever-changing environment." Discuss.

20 marks

Explain the concept of PDCA. State in detail its features, application, advantages and limitations.

20 marks

Explain the process of perception and discuss how perceptual distortions can influence managerial decision-making in changing organisational environment.

Explain the different leadership styles commonly found in organisations. Evaluate how such leadership styles can influence employee motivation, performance and organisational culture.

To what extent does a project based organisational structure enhances goal clarity and flexibility and how sustainable in this approach for long-term strategic growth?

20 marks

Discuss how mechanistic and organic structures affect decision-making, com- munication and flexibility within an organisation.

10 marks

How do different sources of power influence the formal and informal power structures within an organisation, and what are the implications for leadership effectiveness and ethical decision-making?

20 marks

"Organisations often pursue multiple and sometimes conflicting goals." Critically evaluate this statement. How these conflicting goals affect organisational strategy, decision-making and performance? Elaborate.

20 marks

What are the major challenges in achieving effective coordination in an organisation and how does it impact overall performance? Discuss

10 marks

Answer each of the following questions in about 50 words

Job evaluation and internal equity

Impact of traditional job specifications

Impact of absenteeism

10 marks

Factors influencing salary and wage administration.

10 marks

Causes of Industrial Disputes 0 3

"Performance appraisal is not merely for appraisal but is for accomplishment and improvement of performance." Elaborate.

"Workers' participation democratises workplaces, while collective bargaining institutionalises conflict." Critically evaluate this statement.

20 marks

Examine the scope of industrial relations in the light of modern labour market. transformations, including the impact of changing work patterns, globalisation and technological advancement.

20 marks

What is the role of International Labour Organisation (ILO) and how has it influenced labour and social policies in India? Elaborate.

20 marks

Define recruitment. Describe the various methods of recruitment. Which method, in your opinion, will be more suitable to recruit a higher post like marketing manager? Explain in detail.

20 marks

"Training programmes are helpful to avoid personnel obsolescence." Elucidate.

10 marks

What should be done to improve the work culture in our country? Give suitable suggestions.

Define trade union. What are the challenges faced by trade unions in present time? Elaborate.

20 marks

Is there any difference between union participation and employee participation? Discuss the pros and cons of both and suggest whether and how they can coexist.

20 marks

Briefly explain the significance of Accounting Standard-7 (AS-7).

Explain why the companies issue right shares. How are right shares different from bonus shares?

Discuss the main aspects of audit of a banking company in India.

Define fair rent and annual rent under income from house property as per Indian Income Tax Act, 96. Explain it with an example.

TASTE What is job costing? How is it different from process costing? Explain.

A Ltd. has acquired the business of B Ltd., whose Balance Sheet as at 35t March, 2024 is as under: I - Equity and Liabilities: l. Shareholders' Funds (a) Equity Share Capital (= 00 each) 6,00,000 6% Preference Share Capital (= 00 each) 8,00,000 24,00,000 (b) Reserves and Surplus Capital Reserve 2,00,000 Profit and Loss Account,00,000 Workmen Compensation Reserve (expected liability = 0,000) 6,000 3,6,000 2. Non-Current Liabilities 6% Debentures 4,00,000 3. Current Liabilities Trade Payables 2,40,000 Other Current Liabilities (Interest payable on 24,000 2,64,000 debentures) Total 33,80,000 II - Assets: l. Non-Current Assets (a) Property, Plant and Equipment Land and Building 8,00,000 Plant and Machinery 2,00,000 20,00,000 (b) Intangible Assets Goodwill 4,80,000 Patents,00,000 5,80,000 2. Current Assets (a) Inventories 3,00,000 (b) Trade receivables 3,60,000 - (ce) Cash and Cash equivalents,40,000 8,00,000 Total |... 933,80,000 a A Ltd. was to take over all assets (except cash) and liabilities (except for interest due on debentures) and to pay the following amounts: (i) *₹ 4,00,000, 7% Debentures (= 00 each) in A Ltd. for the existing debentures in B Ltd.; for the purpose, each debenture of A Ltd. is to be treated as worth = 05. (ii) For each preference share in B Ltd. = 0 in cash and 9% preference shares of = 00 each in A Ltd. (iii) For each equity share in B Ltd. = 20 in cash and one equity share in A Ltd. of = 00 each having market value of = 40. (iv) Expenses of liquidation of B Ltd. are to be reimbursed by A Ltd. to the extent of = 20,000. Actual expenses amounted to = 25,000. A Ltd. valued Land and Building at =,00,000, Plant and Machinery at © 3,00,000 and Patents at = 40,000 of B Ltd. for the purpose of amalgamation. Pass necessary journal entries in the books of A Ltd. and B Ltd.

20 marks

A Ltd. furnishes the following Balance Sheet as at 357 March, 2024: I - Equity and Liabilities: l. Shareholders' Funds (a) Share Capital 6,00,000 Equity shares of 6,000 = [0 each fully paid up 40,000, 9% Preference shares of = 00 each 4,000 0,000 (b) Reserves and Surplus Capital Reserve 20 Revenue Reserve 8,000 Securities Premium,000 Profit and Loss Account 3,600 2,620 2. Non-Current Liabilities 0% Debentures 800 3. Current Liabilities Trade Payables 80 II - Assets: l. Non-Current Assets (a) Property, Plant and Equipment 5,500. (b) Non-Current Investments (at cost) 0,000 5,500 2. Current Assets (a) Inventories 2,000 (b) Trade receivables 4,000 (c) Cash and Cash 2,000 8,000 equivalents The company passed a resolution to buy back 20% of its equity capital @ = 5 per share. For this purpose, it sold its investments of = 60 lakhs for = 50 lakhs. You are required to pass necessary journal entries in the books of A Ltd. and prepare Balance Sheet after buyback of shares.

State the methods of computation of Short-term and Long-term capital gains under Indian Income Tax Act, 1961.

State the rules of capital gains in case of transfer of depreciable assets under Section 50 of the Indian Income Tax Act, 1961.

PHKM--LOM g During the month of May 2024, total 2000 units were introduced into Process-I. The normal loss was estimated at 5% on input. At the end of the month, 400 units had been produced and transferred to the next process, 460 units were incomplete and 40 units had been scrapped. It was estimated that incomplete units had reached a stage in production as follows: Material 75% completed Labour 50% completed Overheads 50% completed The cost of 2000 units introduced was = 5,800. Direct material introduced during the process amounted to =,440. Production Overheads incurred were =,670 and Direct Labour was = 3,340. Each unit scrapped was realized at = each unit. The units scrapped have passed through the process, so were 00% completed as regards material, labour and overheads. You are requested to prepare the following statements: (i) Statement of Equivalent Production; (ii) Statement of Cost and Evaluation; (iii) Process-I Account; and (iv) Abnormal Loss Account.

20 marks

"Cost Accounting is a system of foresight and not a post-mortem, it turns losses into profits, speeds up activities and eliminates waste." Explain the statement along with your viewpoints.

What are the key differences between Special Audit and Accounts Investigation? Give your viewpoint along with examples.

5 marks

(59 years) receives = 7,90,000 as basic pay and =,8,000 as bonus during the previous year 2023 - 24. Besides, she gets = 52,000 as Dearness Allowance (forming part of salary) and 4 percent commission on turnover achieved by her. During the year, turnover achieved by her is ₹ 90 lakh. The employer contributes = 2,24,240 towards recognised provident fund. The amount of interest credited to provident fund on 30 November, 2023 at the rate of 0 percent comes to ₹ 40,000. She also gets child education allowance of = 450 per month (for daughter) and ~ 80 per month (for son). Cost of education is approximately ₹,80,000 for two children (out of which =,0,000 is tuition fees paid by Mrs. Y). The employer company provides 800 cc car to her for official and private purpose and incurs the entire expenditure on running and maintenance of the car. Personal use of the car as per log book is approximately 65 percent. With effect from November, 2023, she gets a driver to whom the company pays = 6,000 per month. Her income from house property is =,65,000.: During the year she makes the following contributions and investments: (i) Own contribution towards provident fund = 3,36,360. Hi Gi) Insurance premium on own life 9,000 (sum assured ₹ 80,000, policy taken in December 208). (iii) Contribution towards NSC VIII issue =,000. (iv) Insurance premium on the life of major son (not dependent on her) = 4,000 (sum assured =,00,000). (v) Insurance premium on the life of her mother (age 80 years) dependent on her = 2,000. (vi) Repayment of loan taken to purchase house property = 2,000. Determine the taxable income of Mrs. Y for the assessment year 2024-25 under regular tax regime. Also calculate Gross Qualifying amount under Section 80 C.

20 marks

What are the conditions required for availing of additional depreciation as per the Indian Income Tax Act, 96l? Explain with a detailed example.

Discuss in detail the important checklist points for a smooth and effective audit of non-profit making organisations. How is it different from the audit of modern day business organisations?

Define corporate restructuring. Differentiate between mergers and acquisitions. Also give suitable examples.

Distinguish between money market and capital market. Explain the present state of RBI policy for the money market.

Discuss the objectives of financial management. Why is wealth-maximization the preferred objective?

20 marks

"Indian capital markets are sound and well-structured under SEBI's supervision." Explain this statement.

"Investment decisions are more important than financing and distribution decisions in financial management." Discuss this statement. i ee eee ee 0-909 0-826 0-75 0-683 0:62 0-564 0:53 0-467 Six years ago, a machine was purchased for = 3,00,000. It has been depreciated to a book value of =,80,000. Its economic life was 5 years with no salvage value. If this machine is replaced by a new machine costing 4,50,000, the operating cost would be reduced by = 60,000 for the next 0 years. The old machine could also be sold for = 0,000. The cost of capital is 0%. The new machine will be depreciated on straight line basis over eight years life with = 50,000 as salvage value. Assuming the company's tax rate to be 55% and using the NPV method, state whether the old machine should be replaced or not. The present value factor at 0% is as follows: 20 6 [7 0-909 0:826 0-75 0-683 0:62] 0-564 0:53 0-467

Discuss the risk-return trade-off in financial decisions. Give examples.

How will you measure the degree of combined leverage? Also describe the effects of combined leverage along with suitable examples.

The Board of Directors of a company asks to prepare a statement showing working capital estimates for a level of activity of 5,600 units of production. The following information is available for calculation: (A) Per Unit Cost and Selling Price: Raw materials = 90 Labour = 40 Overheads e 75 = 205 Profit = 60 Selling Price = 265 (8) (G) Raw materials are in stock on an average for one month.: (ii) Raw materials are in process on an average for two weeks. (iii) Finished goods are in stock on an average for one month. (iv) Credit allowed by suppliers — one month. (v) Credit allowed to debtors — two months. (vi) Lag in payment of wages — l 5 weeks. (vii) Lag in payment of overheads is one month. 20% of the production is sold against cash. Cash in hand is expected to be ₹ 60,000. It is to be assumed that production is carried on evenly, throughout the year, wages and overheads accrue similarly and the time period of 4 weeks is equivalent to one month.

20 marks

A company has earnings of =,00,000. The capital structure of the company contains debt as well as equity in which debt is of = 4,00,000 borrowed at the rate of 0%. Presently, the cost of equity capital of the company is 2-50%. Find out the total value of the company and the overall cost of capital using Net Income approach. If debt is increased or reduced by =,00,000, what will be the effect on the value of the company and on overall cost of capital as per the Net Income approach?

Discuss the leading financial market instruments and innovative debt instruments in the Indian financial system. Also give suitable examples.

Explain the key classification of the Indian financial system. Make a diagram that depicts the entire financial system and its key components.

20 marks

"The insurance industry in India is growing very fast under the direction and control of IRDA." In the light of this statement, discuss the emerging trends in life and health insurance. Also explain the government policy initiatives in this regard.

Define working capital management in a manufacturing firm. What are the key components of working capital? How does inventory management hold importance over cash management in modern business organisations?

Answer each of the following questions in about 150 words

How does sensation differ from perception?

Explain the major differences between transactional and transformational leaders.

Why do we need to coordinate formal and informal organizations?

What are the limitations of matrix organization?

How does socialization help in maintaining organizational culture?

How have organizations been defined? Compare different perspectives of organizations in India and Western countries.

20 marks

What are the 'big five personality traits'? Which one seems to have the biggest impact on performance? How would the knowledge of these help the manager in his job?

20 marks

Explain the phases of developing quality circle.

10 marks

What are the major criticisms levelled against Herzberg's two-factor theory of motivation? Explain its contribution for the better understanding of motivation at the workplace.

20 marks

Examine the different approaches for designing organizational structure. Evaluate the process involved in it.

20 marks

How does organizational transition differ from organizational change and renewal?

10 marks

Why does organizational politics emerge? What are its consequences? Suggest measures to avoid them.

20 marks

"There is a need for integrating individual and organizational goals." Examine this statement. How does it affect organizational effectiveness?

20 marks

Distinguish between delegation of authority and decentralization.

10 marks

Answer each of the following questions in about 150 words

Discuss the problems faced in human resource planning.

Elaborate the merits and limitations of 360° feedback.

Why is collective bargaining not effective in India? Explain its reasons.

How is voluntary separation different from involuntary separation?

Explain the productivity implications of labour turnover.

"Tests are useful in predicting the failure rather than success of the candidate on the job." Comment.

20 marks

Explain the rationale of workers' participation in management. Suggest measures to make it more effective.

20 marks

"Multiplicity of unions has retarded the effective working of trade unions in India." Discuss.

10 marks

What do you mean by a model employer? Critically examine the role of public enterprises in acting as a model employer.

20 marks

Elucidate the executive development techniques relating to interpersonal and decision-making skills.

20 marks

How is job design different from job analysis?

10 marks

Examine this statement. Also evaluate their individual effectiveness.

20 marks

"An experiment in profit-sharing scheme on a wide scale would be definitely undertaking a voyage on uncharted seas." Discuss this statement.

20 marks

Explain the organs of International Labour Organization.

10 marks

What is meant by buyback of shares by companies? Explain the reasons and sources of buyback of shares.

SPITE "Cost Accounting is becoming more and more relevant in the emerging economic scenario in India." Comment.

Explain the major points to be considered by an auditor while auditing the accounts of a non-profit organization.

SIRS Briefly explain the accounting treatment of Government Grants as per AS-12.

"An assessee is not only liable in respect of his own incomes for tax purposes but his liability may extend to some other incomes also." Explain.

The Balance Sheet of AB Ltd. as on March 31, 2022 is as under

Equity and Liabilities 1. Shareholders' Funds: (a) Share Capital: 16000 Equity Shares of? 100 each fully paid 16,00,000 (b) Reserves and Surplus (-) 21,40,000 2. Non-Current Liabilities: 8% Debentures 28,00,000 Accrued Interest 1,40,000 3. Current Liabilities: Sundry Creditors 9,00,000 Income Tax Liability 20,000 Total 33,20,000 II. Assets 1. Non-Current Assets: Land, Building and Machinery 28,00,000 2. Current Assets: Stock 2,00,000 Sundry Debtors 80,000 Investments 30,000 Cash at Bank 2,06,000 Cash in Hand 4,000 Total 33,20,000 The fixed assets are heavily overvalued. A scheme of reorganization was prepared and passed. The salient points of the scheme are the following: (i) Each share shall be sub-divided into ten fully paid Equity Shares of? 10 each (ii) After such sub-division, each shareholder shall surrender to the company 90% of his holding, for the purpose of re-issue to debenture holders and creditors so far as required and otherwise for cancellation (iii) Of those surrendered, 100000 Equity Shares of %10 each shall be; converted into 8% Preference Shares of? 10 each fully paid for debenture holders (iv) The debenture holders' total claim shall be reduced to 10,00,000. This will be satisfied by the issue of 100000 Preference Shares of ® 10 each fully paid (v) The claim of sundry creditors shall be reduced by 80% and the balance shall be satisfied by allotting them Equity Shares of 10 each fully paid from the shares surrendered (vi) Shares surrendered and not re-issued shall be cancelled Assuming that the scheme is duly approved by all parties interested and by the Court, draft necessary Journal Entries and Balance Sheet of the company after the scheme has been carried into effect.

20 marks

A newly setup manufacturing company is planning to produce a product that will be sold for ®150 per unit. The demand of the product is estimated at 10000 units per year. The company has the choice of two machines (i.e., Machines—A and B), each of which has a capacity of producing 10000 units per year. Machine—A would have fixed costs of ¥ 4,00,000 per year and would yield a profit of ®5,00,000 per year on sale of 10000 units. Machine—B would have fixed costs of ®2,80,000 per year and would yield profit of ®3,20,000 per year on sale of 10000 units. Variable costs behave linearly for both machines. Calculate the volume of sales at which the costs of two machines will be indifferent.

15 marks

What is the relevance of residential status as per the Indian Income-tax Act, 1961? Discuss in detail how the residential status of an individual is determined for income tax purposes. art gfaen at (24 fag stan)

15 marks

A, resident of Chennai, owns two houses, the particulars of which are as under: House—I House—I Standard Rent (under the Rent Control Act) (in?) 38,000 36,000 Municipal Valuation (in %) 40,000 45,000 Fair Rent (in?) 50,000 60,000 De facto Rent (in?) 45,000 Municipal Taxes paid during previous year (in?) 6,000 7,250 Fire Insurance Premium (in?) 500 4,500 Water Benefit Tax (due but outstanding) (in?) 600 750 Interest on Loan taken to construct the house (in?) 22,500 5,750 Rent of Lease (due but outstanding) (in #) 750 750 Use of Assets Self-occupied Rented for Residence Compute the Taxable Income of Mr. A for the Assessment Year, 2022-23. House—! is constructed in February 2022, whereas House—J in 2012. How will the outcome of this situation be treated as per the provisions of the Income-tax Act?

Municipal Taxes paid during previous year (in?) 6,000 7,250 Fire Insurance Premium (in?) 500 4,500 Water Benefit Tax (due but outstanding) (in ¥) 600 750 Interest on Loan taken to construct the house (in?) 22,500 5,750 Rent of Lease (due but outstanding) (in #) 750 750 Use of Assets Self-occupied Rented for Residence Compute the Taxable Income of Mr. A for the Assessment Year, 2022-23. House—! is constructed in February 2022, whereas House—J in 2012. How will the outcome of this situation be treated as per the provisions of the Income-tax Act?

15 marks

"An audit is not essentially an investigation." Why? Explain the general procedure followed in an investigation.

15 marks

A Limited invited applications for 160000 shares of? 10 each at a premium of?% 2:50 per share payable as follows: On Application—? 3 per share On Allotment—? 4:50 per share (including premium) On 1st Call—? 2 per share On 2nd and Final Call—? 3 per share Applications were received for 340000 shares, out of which applications for 20000 shares were rejected and money refunded to them. The allotment was made pro rata to the remaining applicants. Money overpaid on application was used against allotment money due. Kapil to whom 4000 shares were allotted failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Ramu, the holder of 2400 shares, failed to pay the two calls and his shares were forfeited after the final call. Of the forfeited shares, 4800 shares were re-issued at the rate of ® 8 per share credited as fully paid, including the whole of Kapil's forfeited shares.. You are required to give the necessary Journal Entries.

20 marks

Discuss the concept of a division as an independent profit centre. Compare the Rate of Return Method with the Residual Income Method of performance evaluation of a division.

15 marks

Explain the following as per the Indian Income-tax Act, 1961

Leave encashment at the time of retirement 9+6=15 5. Prafettad weal A a wets a TR TAT 150 weal H Afar

Explain the 'Financial Indifference Point' in the context of EBIT-EPS analysis by giving suitable example.

What is meant by capital structure? Discuss the major determinants of capital structure.

Explain the objectives of monetary policy of the RBI.

What is capital market? Discuss the role of capital market in the economic development of a country.

What is merger? Explain various types of merger.

Moon Ltd. wants to replace its labour-intensive manufacturing facility. The company is evaluating a project to install a machining system. It is estimated that the system will result in annual savings of *13,50,000 in wages, %4,50,000 in supervisory cost, *1,50,000 in material losses during production, % 1,20,000 in inventory cost and ¥ 90,000 in other operating costs. The machining system is likely to cost *%22,50,000 and will require an installation cost of ¥ 1,50,000. Its useful life is estimated at 5 years. To operate the system, the company requires the services of two trained operators at an annual salary of? 4,50,000 each. Its annual repairs and maintenance cost is likely to be ¥ 1,20,000. Assuming that the corporate tax rate is 30% and the required rate of return is 12%, suggest Moon Ltd. whether it should accept the project or not. The PVF of an annuity @ 12% for 5 years is 3:605.

20 marks

The following information has been extracted from the records of X Ltd. engaged in large-scale customer retailing. You are required to forecast its working capital requirements for the year 2022-23. One year constitutes 52 weeks: Projected annual sales—? 87,81,500 Percentage of net profit on cost of sales—30% Average credit allowed to debtors—14 weeks Average credit allowed by creditors—7 weeks Average inventory carrying (in terms of sales requirements)—12 weeks Add 15% of the computed figures to allow for contingencies

15 marks

What is a mutual fund? Discuss the types of mutual fund prevalent in India.

15 marks

The following Balance Sheet is given as on 31st March, 2022: Particulars Amount

Assets 1. Non-Current Assets: Fixed Assets: (a) Tangible Assets: Plant & Machinery 2,80,000 Land & Building 2,00,000 Furniture & Fittings 1,56,000

Less: Provision for Depreciation 1,48,000

Total 13,32,000 From the given Balance Sheet, calculate the following: () Debt-equity Ratio

Fixed Capital Ratio from Proprietary Capital (v) Capital Gearing Ratio

20 marks

What is the importance of Funds Flow Statement to the management? How is it different from a Cash Flow Statement?

15 marks

What is credit rating? Discuss its objectives, functions and limitations.

15 marks

X Limited has its present annual sales amounting to % 60 lakhs at ¥ 24 per unit. Variable costs are? 16 per unit and fixed costs amount to ® 5 lakhs per annum. Its present credit period of one month is proposed to be extended to either two or three months whichever appears to be more profitable. The following estimates are made for the purpose: Increase in sales (%) — 8 30 Percent of bad debt to sales 1 2 6 Fixed costs will increase by %1,00,000 annually after an increase in sales above 25% over the present level. The company requires a pre-tax return on investment of at least 20% for the level of risk involved. What will be the most rewarding credit policy in case of X Limited under the above circumstances?

20 marks

Details regarding three companies are given below: A Limited B Limited C Limited r=l5% r=l0% r=8% k=0% k =0% k =0% E =?0 E=?0 E =?0 Using Walter's model, you are required to calculate the value of an Equity Share of each of these companies when dividend payout ratio is (i) 20%, (ii) 50% and (iii)

Using Walter's model, you are required to calculate the value of an Equity Share of each of these companies when dividend payout ratio is (i)

What is venture capital? Explain the functions of venture capital for the development of economy. Also discuss the various stages of venture capital financing.

15 marks

Answer each of the following in about 50 words

What are the external environmental factors that are essential to an organisation?

Describe the main propositions of the neo-classical organisational theory.

Describe the relationship between organisational culture and climate.

'How does the policy of 'Flexitime' affect organisational functioning?" Explain.

Explain the three forms of intra-personal conflict.

How is power used as a tool of organisational control? Elaborate in detail the various sources of power.

20 marks

"Profit maximization as a goal, is being gradually considered less important in many organisations." Express and justify your opinion on the above statement.

20 marks

Critically analyze the Path-Goal Theory of Leadership.

How is Herzberg's "Motivation-Hygiene Theory" useful to organisations? List any five 'Hygiene Factors' applicable to Indian organisations.

20 marks

Describe the importance of 'Quality of work life' in improving employee work efficiency.

20 marks

Delineate any five complementary transactions in relation to Transactional Analysis.

Describe 'Perceptual Process.' Explain the selection, organisation and interpretation of stimuli.

20 marks

Identify some changes observed in the demographic composition of the Indian IT sector. Describe the impact which these changes have on organisational design and structure.

20 marks

How can the practice of Organisational Behaviour help in reducing production costs? Explain.

Answer each of the following in about 50 words

"A good job-description leads to improved employee satisfaction." Explain.

Explain the purpose of employee orientation.

Why is controlling absenteeism necessary for organisations? Explain.

Write a note on 'Collective Bargaining'.

"Competition among industries often leads to labour turnover." Do you agree with the statement? Justify your answer.

How do Trade Unions contribute to the betterment of Employer-Employee relations? Describe.

20 marks

"Employee Welfare is the joint responsibility of the State, Employers and Trade Unions." Comment on the above statement.

20 marks

Describe the relationship between the activities of Performance Appraisal and Job-Analysis.

"ILO is still relevant for Modern India." Elaborate in detail.

20 marks

"Industrial Democracy functions in India through the demarcation of levels of participation and accordingly, matters of participation." Explain.

20 marks

Placement Problems' arise more in larger and geographically scattered organisations. Comment.

Describe the scope and relevance of HRM in organisations today.

20 marks

Describe the status of Industrial Relations in the Indian Public Sector Undertakings.

20 marks

How do organisations identify the training needs of their employees? Explain.

What are Sweat Equity Shares? Under what conditions can these shares be issued by a company?

What is Activity-Based Costing (ABC)? How does ABC system support corporate strategy?

What is Interim Dividend? Specify the duties of an auditor in this regard.

Explain briefly the steps involved in preparing the budget for an industrial organization.

State the exceptions to the provision under the Income Tax Act regarding set-off of loss from one source against income from another source under the same head.

Balance Sheets of A Ltd. and B Ltd. as on March 3, 202] are as follows: ee I - Equity and Liabilities: l. Shareholder's Funds _(a) Share Capital Authorised Capital Share of = 00 each -5,00,000 i Share of = 0 each anv 0,00,000 Issued capital fully paid 5,00,000 4,00,000 (b) Reserve and Surplus Capital Reserve,00,000 a General Reserve 35,000 4,00,000 2. Non-Current Liabilities; Secured Loans — 2,50,000 Unsecured Loans,00,000 — 3. Current Liabilities Sundry Creditors,55,000,80,000 Total II - Assets: 2 l. Non-Current Assets =m Goodwill 40,000 — 2. Current Assets Stock —,00,000 Others 4,50,000 3,30,000 It. was proposed that A Ltd. should be amalgamated in B Ltd. Following arrangements were accepted by both the companies: (i) Goodwill of A Ltd. is considered as valueless. (ii) Arrears of depreciation in A Ltd. amounted to ₹ 20,000. (iii) The holder of every 2 shares in A Ltd. was to receive: () As fully paid at par, 0 shares in B Ltd.; and (2) So much cash as is necessary to adjust the right of the shareholders of both the companies in accordance with the intrinsic value of the shares as per their balance sheets subject to necessary adjustments with regard to goodwill and depreciation in A Ltd's Balance Sheet. You are required to: (I) Determine the composite of purchase consideration; and: (II) Show the balance sheet after amalgamation.

20 marks

Great Ocean Ltd. is currently buying a component from a local supplier @ = 30 each. As the supply is irregular, the company is considering the following two proposals: (i) Buy and install a semi-automatic machine for manufacturing this component, which would involve an annual fixed cost of = 18,00,000 and variable cost of *12 per manufactured component. ' Gi) Buy and install an automatic machine for manufacturing this component, incurring an annual fixed cost of = 30,00,000 and variable cost of = 10 per manufactured component. The annual requirement of the company is expected to be 5,00,000 units and the volume is expected to increase to 6,00,000 units thereafter. Would you recommend the automatic or semi-automatic machine?: Justify your recommendation with necessary computations.

What is Annual Value? Illustrate the procedure of computing the annual value of a house property which is let out throughout the previous year.

X, an employee of a firm, furnished the following particulars of his income for the year ended March 3, 202]:: z: Basic Salary 2,88,000 Dearness Allowance 57,600 Own contribution to recognized Provident Fund 40,320 Employer's contribution to the above fund 40,320 Interest on balance in recognized Provident Fund 28,000 Bonus 24,000 Additional Information: (i) X was provided with a small car for which the employer paid all the running and maintenance costs. The car was used for official as well as personal purposes. (ii) He was also provided with rent-free accommodation at Kolkata for which the employer paid a rent of = 2,500 pm. He was allowed to use one refrigerator and an air-conditioner costing = 6,000 and = 24,000 respectively, while their written-down values as on 0.04.2020 were = 9,000 and = 4,000 respectively. (iii) Life insurance premium of = 24,000 was paid by his employer on: an Insurance Policy for = 4,80,000 on the life of X. Compute the taxable salary of X for the Assessment Year 202 — 22.

20 marks

Explain the term 'Revenue' as per AS-9. State the items not included in the term 'Revenue'. When should revenue from sale of goods be recognized?

Explain the concept and features of Responsibility Accounting. Discuss the steps involved in implementing such an Accounting System.

The following details have been extracted from the cost records of a company: Material: 5 lbs @ = 5 — = 25 Labour: 4Hrs@ = 3-F 2 The production schedule for the month of January, 2022 required the completion of 7000 units; however 800 units were actually produced during the month. Purchase of materials of 40000 Ibs was made at a total invoice price of =,65,000. Production record for the month of January, 2022 revealed the following: Materials requisitioned and used — 35800 lbs, Direct labour — 7200 Hrs — = 59,400. Calculate the appropriate material and labour variances.

20 marks

Discuss the impact of behavioural sciences on Accounting.

Discuss the major points to be considered by an auditor while conducting the audit. of charitable institutions.

25 marks

Explain 'Capital Asset Pricing Model'..

5 marks

Briefly explain any five risks faced by the financial institutions in India.

Discuss Walter's model of dividend decision.

Discuss the problem of multiple internal rates of return in relation to capital budgeting decision.

Explain the objective of maximising the wealth of shareholders.

From the following data, you are required to prepare a Balance Sheet and a Statement of Profit and Loss: 20 z= (a) Share Capital 9,60,000 (b) Working Capital 3,64,000 (c) Bank Overdraft 60,000 Additional information: (i) Current Ratio - 2 (ii) Quick Ratio - 4-5 (iii) Proprietary Ratio - 0°80 (Fixed Assets/ Proprietary Fund) (iv) Gross Profit Ratio - 0:20 (v) Inventory Turnover Ratio - 4 (vi) Trade Receivables Turnover - 36 days (vii) Net Profit to Paid-up Capital - 0% Assume there are no fictitious assets. In the case of current assets, there are no assets other than inventories, trade receivables and cash. Closing inventory is 20% higher than the opening inventory. Also assume 360 days in a year. rf Capital structure of a company consists of the following

Equity Share Capital: (Shares of =00 each) — 40,00,000 Retained Earning — 20,00,000 8% Preference Shares — 20,00,000 7% Debentures — 4,00,000 Total — 84,00,000 The company requires = 50,00,000 to finance the expansion programme for which the following alternatives are available: (i) Issue of 40,000 equity shares at a premium of = 25 per share (ii) Issue of 0% Preference Shares (iii) Issue of 8% Debentures It is estimated that in the case of equity shares, preference shares and debentures financing, the PE ratios would be 2-4, 7 and 5-7 respectively. Assume the company earns 2% on its capital with the income tax rate of 50%. You are required to evaluate the three financing alternatives and recommend the best alternative suitable for the company.

What is money market? Explain the features of a developed money market.

A company wishes to raise additional finance of = 20 lakh for meeting its investment plans. It has = 4,20,000 in the form of retained earnings available for investment purposes. Following are the additional details: (i) Debt/Equity mix — 30%/70% (ii) Cost of debt upto = 3,60,000 is 0% before tax; Beyond = 3,60,000 is 6% before tax; (iii) Earnings per share is = 8 2 (iv) Dividend payout is 50% of earnings (v) Expected growth rate in dividend is 0% (vi) Current market price per share is = 88 (vii) Tax rate is 50% You are required to determine the pattern for raising the additional finance, the post-tax average cost of additional debt, the cost of retained earnings and the cost of equity. Also compute the overall weighted average after-tax cost of additional finance.

20 marks

From the following Summary Cash Account of Z Ltd., you are required to prepare Cash Flow Statement for the year ended March 31, 2022 in accordance with AS-3 using the Direct method. 15 Summary Cash Account (for the year ended March 31, 2022)

What is corporate restructuring? Explain the techniques of corporate restructuring.

From the following information as contained in the Trading and Profit & Loss Account and Balance Sheet of X Ltd., you are required to calculate the operating cycle period. 20 Trading and Profit & Loss Account (for the year ended March 3], 2022) (= in lakh) ia oe Ae ee To Opening Stock: By Sales 640 Raw Materials 28 By Closing Stock: Work-in-Process 60 Raw Materials 32 Finished Goods 40 Work-in-Process 80 To Purchases 480 Finished Goods 60 To Wages 50 To Manufacturing Expenses 30 To Gross Profit 24 To Office & Administrative Expenses 32 By Gross Profit 24 To Selling & Distribution Expenses 6 To Net Profit 76 ae a Balance Sheet (as on March 3, 2022) (= in lakh) Share Capital 600 Land & Buildings 300 Loans 320 Plant & Machinery 480 Profit & Loss Account 76 Stocks: Creditors 84 Raw Materials 32 Work-in-Process 80 Finished Goods 60 Debtors 04 Cash 24 Additional Information: (i) Closing balance of debtors is = 8 lakh more than the opening balance of debtors. (ii) Opening balance of creditors is 24 lakh. (iii) Purchases and sales are made on credit basis only.

Discuss the role of commercial banks in the economic development of a country.

Explain the Arbritrage process as per the M&M Model.

Answer each of the following in about 150 words

"MBO is a mixed blessing." Elucidate the statement.

Explain how the matrix structure breaks the unity-of-command concept.

Critically discuss the impact of personality traits on the behaviour in organizations.

Write a brief note on 'systems approach' in the context of the evolution of organization theory.

Briefly explain the main systems of organizational effectiveness.

"The choice between centralization and decentralization cannot be made in isolation, none is good or bad." Critically evaluate this statement.

20 marks

Explain the causes of distortion in perception. Give suggestions for improving perceptual capabilities of managers in organizations.

20 marks

Briefly review how conflict can provide benefits to the organization.

10 marks

Explain, with the help of the expectancy theory, why a lot of workers are not motivated on their jobs and do only the minimum necessary to get by.

20 marks

"Organizational culture is the set of assumptions, beliefs, values and norms. which are shared by an organization's members." Explain. Discuss the positive and negative impacts of organizational culture.

20 marks

Critically examine the Freudian stages of personality development.

10 marks

Critically evaluate the contingency theory of leadership propounded by Fiedler. How is this theory different from situational leadership theory propounded by Paul Hersey and Kenneth Blanchard?

20 marks

Despite the complementary and supplementary relationship of line and staff, why is there a conflict between them? Give sound suggestions to minimize this conflict.

20 marks

"The implementation of information technology produces change in organizational structure as their relationship is dynamic." Explain in brief.

10 marks

Answer each of the following in about 150 words

Distinguish 'transfer' from 'promotion'/'demotion' and state the purposes of resorting to 'transfer'.

Briefly discuss the four integrated components of 360° feedback.

"Excessive turnover of labour is neither in the interest of the employer nor in the interest of the employees." Explain this statement.

Discuss the essential conditions for congenial industrial relations.

State the responsibilities of Industrial Relations Managers.

"The approach towards Human Resource Management has undergone transformation through different stages and this process of transformation is still going on." Explain this statement.

20 marks

Discuss the weaknesses of a conciliation machinery in settling industrial disputes. Suggest suitable measures to make conciliation machinery effective.

Explain briefly how the process of job specification is dependent on job analysis and related to job requirements.

10 marks

"Human Resource Planning is a prerequisite for effective management of human resources." In the light of this statement, analyze the significance of Human Resource Planning.

20 marks

"Recruitment process is often very strenuous, time-consuming and expensive, as also equally frustrating from the point of view of the organization." Suggest the methods which can improve the objectivity of recruitment process.

20 marks

"Rapid industrialization in India is heavily dependent on harmonious industrial relations." Explain the impact of globalization on industrial relations.

10 marks

Critically examine the strengths and weaknesses of industrial relations in public sector.

20 marks

State the criteria for the recognition of Trade Unions in India. Also point out the rights of a recognized Trade Union.

20 marks

"Collective bargaining in India has not been very successful." Comment. Discuss the suggestions to be made to make the functioning of collective bargaining effective.

10 marks

Briefly explain the significance of Accounting Standard-3 (AS-3).

Discuss the importance of Employee Stock Option Plan (ESOP).

What are sunk cost opportunity cost? Explain with example.

What is the relationship between residential status and incidence of tax?

Discuss the key aspects in respect of audit of insurance company.

X Ltd. and Y Ltd. were in telecom business. Both the companies took a decision to amalgamate and a new company XY Ltd. is to be formed with an authorized capital of ®20,00,000 divided into 200000 equity shares of *0 each. The Balance Sheets of the companies as on 3.03.202] were as under: Particulars Y Ltd. () ®) I. Equity and Liabilities: l. Shareholders' Fund: (a) Share capital 2,80,000 5,00,000 (b) Reserves and Surplus (Profit and Loss A/c) 60,000 3,0,000 2. Non-current liabilities: 8% Secured Debentures 2,20,000 — 3. Current Liabilities: Trade Payables,08,000 2,80,000 Total 0,90,000 II. Assets: l. Non-current Assets: Property, Plant and Equipment 2,50,000 5,90,000 2. Current Assets: (a) Inventories 2,70,000,00,000 (b) Trade Receivables 88,000 2,84,000 (c) Cash at Bank 60,000,6,000 Total 0,90,000 The Assets and Liabilities of the existing companies are to be transferred at book value with the exception of some items detailed below: (3) The debentures of xX Ltd. are to be discharged by issue of 8% debentures of XY Ltd. at a premium of 0% (2) Property, Plant and Equipment of Y Ltd. was valued at *6,0,000 (3) The Trade Receivables of X Ltd. are realised fully and bank balance of X Ltd. are to be retained by the liquidator and the Trade Payables are to be paid of the proceeds thereof (4) Goodwill of X Ltd. was worth #,00,000 and Y Ltd. was worth % 3,00,000 You are required to— (i) compute the basis on which shares in XY Ltd. will be issued at par to the shareholders of the existing companies; (ii) draw up a Balance Sheet of XY Ltd. as at lst April, 202l, the date of completion of amalgamation; (iii) pass necessary Journal Entries including bank entries for closing the books of X Ltd.

20 marks

Explain the principles and steps in setting up a good costing system in a manufacturing unit.

5 marks

Define short-term capital assets and long-term capital assets. (i) How to compute tax on short- and long-term capital gains?

5 marks

P.T.O. Mr. 8 (49 years), a resident individual, furnishes the following particulars pertaining to the year ending 31st March, 202]: Analysis of his bank account in his ledger reveals the under-mentioned data— €) — Rent received for a vacant plot of land 4,00,000 ¢ Amount received from X (P) Ltd. for a house at Pune for which he had been in negotiation for rent enhancement since last 4 years (this has not been taxed in any earlier year. However, this house is transferred during March, 2020) 3,00,000 ¢ Gift received from Alekhyo, his best friend,20,000 e Gift received from mother's father,60,000 ¢ Winning from a TV game show (net),40,000 ¢ Amount forfeited (initially paid by a buyer of his vacant plot, since the buyer could not finalise the deal as per agreement) 6,20,000 ¢ Amount received under Keyman Insurance Policy 4,40,000 Other information: (i) Donation given in cash to a charitable trust registered under (ii) Interest credited in the Public Provident Fund (PPF) account during the year 7,800 (ii) Public Provident Fund paid in the name of his minor daughter,50,000 (iv) He owns agricultural lands at Malaysia. He has derived agricultural income therefrom 3,60,000 Compute the taxable income of Mr. B for the assessment year 202-22.

20 marks

What is right share? Explain its advantages.

5 marks

In a factory, the product passes through two processes, A and B. Loss of 5% is allowed in process A and 2% in process B. Nothing being realised by disposal of the wastage. During July, 202l, 0000 units of material costing 6 each were introduced in process A. The other costs were as follows: Process A Process B ) ®) Materials 6,40 Labour 0,000 6,000 Overheads 6,000 4,600 The output was 9300 units from process A. The output of process B was 9200 units. Prepare Process Accounts and Abnormal Loss/Gain Accounts.

ABC company produces tables. An analysis of their accounting reveals— Fixed cost 00,000 for the year Variable cost %40 per table Selling price 7 40 per table Capacity 2000 tables per year (i) Find the break-even point (BEP). (ii) Find the number of tables to be sold to get a profit of ₹ 60,000. (iii) What will be the answer for (i) and (ii), if selling price changes to %20 per table? (iv) If the company can manufacture 600 tables more per year with an additional fixed cost of *4,000, what should be the selling price to maintain the profit per table as (ii) above?

20 marks

"Accounting is an information system for decision making." Explain. State its characteristics.

What is tax audit? Explain its objectives. Who can be a tax auditor?

What is risk-return trade-off? Explain its significance in financial decision making.

Define optimum capital structure. Discuss its determinants.

What is capital rationing? Explain the principles of capital rationing.

Briefly explain any five innovative debt instruments.

Explain the importance of venture capital financing (VCF) in promoting start-up enterprises.

The Zenith Enterprises Ltd. has two investment proposals—project X and project Y. These are mutually exclusive. Project X requires an initial outlay of % 3-4 crores and project Y requires an initial outlay of 3:3 crores. The risk-free rate is 8% for both the projects. The risk premium rate for project X is 2% and project Yis 4%. The expected cash inflow and certainty equivalent coefficient for projects are given below: Project X Project Y Year ] ].8 crores "85 ₹ ].8 crores '90 2 2.0 crores yf 7 -8 crores '85 3 ₹ 2.0 crores '60 2-0 crores 'TS The PVF for 3 years: 73 Year2 Year 3 PVF @ 8% 926 '857 "794 PVF @ 0% '909 826 'TSi PVF @ 2% 893 '797 "fin From these details, determine which of the two projects should be accepted by using— (i) risk-adjusted discount rate method; (ii) certainty equivalent approach method.

20 marks

What is credit policy? Explain the criteria involved in assessing the credit- worthiness of a customer.

Discuss the phases of operating procedures of monetary policy framework in India.

5 marks

Co. is operating on 60% capacity, producing 48000 units per annum at the following cost price structure: Raw material 75 per unit Wages #3 per unit Overhead (variable). %2 per unit Overhead (fixed) 7 per unit Profit 72 per unit Selling Price ¥3 per unit The current assets and liabilities were as follows: ®) Raw material 4000 units at cost 20,000 Work-in-progress 000 units at cost 8,000 Finished goods 3000 units at cost 33,000 Sundry debtors 78,000 Creditors for goods 30,000 Liability for wages 3,000 Liability for expenses 6,000 In view of the increased demand for the product, it has been decided that from..202l the unit should operate at 80% capacity. You are required to ascertain the additional working capital as would be necessary in view of additional production. The price of materials, rates of wages and expenses and selling price per unit will not be changed. The period of credit allowed to customers, credit allowed by suppliers and also time lag in payment of wages and expenses shall remain the same as before.

20 marks

Shasun Ltd. has the following capital structure: = each 0,00,000 08 The company is expected to declare 20% dividend on its equity share with a growth rate of 5%. The corporate tax rate is 30% and corporate dividend tax is 0%. Calculate Weighted Average Cost of Capital (WACC) of the company using— (i) book value as weight; (ii) market value as weight.

Discuss the role of IRDA in Indian insurance sector.

5 marks

A company has a capital of ¥ |00 crores with shares of ¥ 00 each. The shares are currently quoted at par in the market. The company is planning to declare a dividend of ®6 per share at the end of current financial year which has just started. The rate of capitalisation for the risk class to which the company belongs is 0%. Using Modigliani-Miller (MM) model, answer the following: () Calculate the price of the shares at the end of the year, if ([7) dividend is declared and (2) dividend is not declared. (ti) Calculate the number of shares to be issued assuming the company pays dividend, has net income of *l0 crores and make new investment of?20 crores during the year. (iti) Find out the value of the firm, if (7) dividend is declared and (2) dividend is not declared.

20 marks

Briefly explain the different techniques of inventory management in a manufacturing unit.

5 marks

Discuss the key reforms in banking sector in line with BASEL norms.

Non-Verbal Communication

10 marks

Factors Affecting Quality of Work Life

10 marks

Sources of Resistance to Change

10 marks

Power and Authority

10 marks

"The environment is a major contingency for which an organisation must plan and to which it must adapt." Explain.

20 marks

Discuss the important structural dimensions of organisations.

10 marks

"Rules are different from norms." In the light of this statement, explain the importance of rules and norms from the organisational design perspective.

20 marks

"An organisation without goals is like a rudderless ship." Comment and explain the importance of goals.

20 marks

Explain the objectives and the phases involved in establishing a Quality Circle system for an organisation.

20 marks

"Organic structures are opposite to mechanistic structures." Discuss.

10 marks

Explain how promotion can be used as a tool to enhance job performance.

10 marks

What is the relevance of Transactional Analysis in modern organisations? Explain the key types of transactions.

20 marks

Describe the Path-Goal theory of leadership and its associated leadership styles.

20 marks

Performance Management

10 marks

Philosophy of Workers' Participation in Management

10 marks

Scope of Industrial Relations

10 marks

Describe the importance and types of training.

20 marks

What is a good job description? List some methods of collecting job description information.

10 marks

What is Placement? Explain the components of an Employee Induction Programme.

20 marks

Arise "Different types of tests are used in the selection of employees." Discuss.

20 marks

Discuss the implications of Maslow's need hierarchy theory and Herzberg's two-factor theory in relation to employee motivation and compensation.

20 marks

Differentiate between the traditional and modern methods of Performance Appraisal.

10 marks

"Trade unions are an impediment to the growth of industry." Do you agree? Critically evaluate the role of trade unions in the present context.

20 marks

"Industrial conflict is basically a struggle between management and workers." Examine this statement.

10 marks

What is the importance of industrial relations? Explain how Industrial Relations (IR) can be enhanced in organisations.

20 marks

Distinguish between Net Profit and Cash from Operating Activities.

What are the various components of cost of fixed assets?

10 marks

Distinguish between cost control and cost reduction.

State the provision of law relating to carry forward and set off of business loss.

Discuss the special points that an auditor would take into consideration while auditing the accounts of a banking company.

Z Ltd issued a prospectus offering 2,00,000 equity shares of ₹]0 each on the following terms: On application — per share On allotment — _&5 per share (including premium of ¥2) On first call —¥3 per share: (3 months after allotment) On final call — per share = months after first call) Application money was received for 3,27,000 shares on 23rd April and allotment made on 30th April was as under: Shares allotted (i) Allotment in full — 38,000 (ii) Allotment of 4 of shares applied for —,60,000 (iii) Allotment of + of shares applied for — 2,000 Cash amounting to ¥4,000 (for 4,000 shares applied for upon which no allotment was made) was returned to applicants forthwith. The amounts due were received on due dates except with the final call on !00 shares. These shares were forfeited on 15th November and reissued to A on the 16th on payment of €9 per share. You are required to give the necessary journal entries (without narratives).

20 marks

AB Ltd manufactures auto parts. The costs incurred for processing,00,000 units of a component are as follows: (= in lakhs) bad material — 5 Direct labour — 8 Variable factory overhead — 6 Fixed factory overhead — 5 The purchase price of the component is ¥22. The fixed overhead would continue to be incurred even if the component is bought from outside although there would be a reduction of ¥2,00,000. Required: (i) Should the part be made or bought when the present facility released remains idle in the event of purchase? and (ii) If the released capacity can be rented out to another company for =,50,000, what would be the decision?

5 marks

Define perquisite. How are rent free accommodation and medical facility valued under income tax rules?

5 marks

Y has two houses in Chennai. He has self-occupied both the houses. The particulars of the houses are as follows: House House (II) =: Municipal value per year —,20,000,5,000 Fair rent per annum —,50,000,75,000 Standard rent per year —,00,000,65,000 Date of completion of construction — 3.3.2009 3.3.2009 Municipal taxes payable during the year — 12% 8% Interest on amount borrowed for repair of both the houses during the current year — Nil 55,000 Y has paid the municipal taxes for House II only. It is due for House I. Compute the house property income of Y for the assessment year. Advice: (i) Which house should be opted by Y to be assessed as self-occupied? and (ii) State the reasons for it.

20 marks

What do you mean by P/V ratio? How is it computed? What are its uses in BEP analysis?

15 marks

What is meant by normal wastage and abnormal wastage? State how are they treated in process costing.

The following information relates to Cloud Ltd as on 3.03.20XI: z 2000 Equity shares of ¥00 each = 2,00,000 000 6% Debentures of ¥00 each —,00,000 - Interest on Debenture outstanding 2,000 Trade Creditors < 50,000 Fixed Assets 2,00,000 Current Assets — 65,000 Fixed Assets revalued at —,06,000 Current Assets revalued at — 48,000 The following scheme was duly agreed and approved by the court: (i) The shares were sub-divided into shares of $5 each and 90 per cent of the shares were surrendered. (ii) The total claims of debenture holders were reduced to 59,000 and in consideration of this, they were also allotted shares (out of surrendered shares) amounting to %20,000. (iii) The creditors agreed to reduce their claims to ¥30,000, 7 of which was satisfied by issue of equity shares out of those surrendered. (iv) The shares surrendered but not re-issued were cancelled. You are required to draft the necessary journal entries for the reconstruction.

20 marks

Briefly discuss the important methods of measuring divisional performance.

5 marks

What is divisible profit? How could an auditor ensure that the dividend is not paid. out of capital?

5 marks

Explain Gordon's share valuation model and state in which case dividend policy is irrelevant under this model.

10 marks

Discuss the Decision-Tree approach for evaluating risky investments.

Out of cost of equity and cost of debt, which one is lower and why?

Briefly explain the components of Indian financial system.

Enumerate the methods of issue of securities in the primary market.

The expected cash flows of a project are as follows: Year Cash flows (®)

20 marks

Explain how with managerial intervention cash balance is maintained within limits using Miller and Orr model.

15 marks

Define and compare the following ratios: (i) Return on Assets (ROA) (ii) Return on Capital Employed (ROCE) (iii) Return on Equity (ROE)

15 marks

Calculate degree of (i) operating leverage; (ii) financial leverage (iii) combined leverage, from the following data under situations I and II and financial plans A and B.

X Ltd is contemplating taking over Y Ltd by issue of shares based on market price of shares. The following data are available: (00000) ed Car No. of equity shares (in lakhs) es: Find: (i) Market price of shares of X Ltd and Y Ltd (ii) Number of shares to be issued by X Ltd for taking over Y Ltd (iii) Number of equity shares of X Ltd after merger.

7 i are the powers vested with the SEBI to protect the interests of investors in the stock market?

5 marks

Zenith Corporation provides 30 days credit to its customers. Its present level of sales is ¥50 lakhs. The firm's cost of capital is 0 per cent and the ratio of variable costs |; to sales is 0-85. |; Zenith is considering extension of credit period to 60 days. Such an extension is likely to push sales up by &5 lakhs. The bad debt proportion to sales would rise from l per cent to 2 per cent. Evaluate impact of extension of credit period on profits. Ignore tax and assume 360 days a year.

20 marks

Explain NOI (Net Operating Income) model of capital structure. A firm's cost of equity at zero leverage is 5 per cent. What would be its overall cost |. of capital at 40 per cent leverage under NOI model?

15 marks

What do you mean by credit rating? State the credit rating methodology followed by CARE (Credit Analysis and Research)

Explain each of the following in about 50 words: 40)<65-60

Line and Staff Conflicts and their resolution

Social Systems Approach of Management

Problems of Management by Objectives (MBO)

Assumptions of Theory X and Theory Y

"A manager while delegating authority should observe certain principles." Elaborate.

20 marks

Explain the different types of conflicts in an organisation. What are the different styles of handling interpersonal conflicts?

20 marks

"Perception consists of three elements: the perceiver, the context and the target." Elaborate.

Discuss the different factors determining the degree of decentralisation.

20 marks

What are the reasons for adopting a matrix organisation? Discuss the various problems involved in it.

20 marks

Explain Likert's four r of management in terms of leadership Styles.

What are the determinants of personality? Explain the major attributes influencing organisational behaviour.

20 marks

"Creation of organisational culture is a long-term process." In light of this statement, discuss the process involved in creating organisational culture.

20 marks

Discuss the different tactics which are used to gain power in an organisation. 29 " CLC wars

8 marks

Explain each of the following in about 50 words

Adjudication and Collective Bargaining

Principles of Wage and Salary Administration

Transfers and Separations /0

Computerised and Web-based Method of Performance Appraisal

What are the different barriers to an effective training programme in an organisation?

20 marks

"The main concern of trade union is that such unionism will lead to fragmentation and weakening of the trade union movement." In light of this statement, discuss the challenges faced by different trade unions.

20 marks

Discuss the influences of ILO on Indian labour legislation and the system of labour relations.

"Human Resource Planning (HRP) is essentially concerned with the most effective use of scarce talent." Justify.

20 marks

"Job analysis is mainly and essentially a data collection process." In light of this statement, elaborate the different methods of data collection. Compare Position Analysis Questionnaire (PAQ) with Management Position Description Questionnaire (MPDQ).

20 marks

"A good incentive plan should have sufficient incentives for workers to raise their output and also should not put undue burden on management." Elaborate.

"Management Development Programmes (MDPs) are understood as a conscious effort to improve managerial effectiveness through a planned and deliberate learning process." In light of this statement, discuss the two broad methods of developing managers and supervisors in an organisation.

20 marks

"Management should try to remove the irritants which encourage exit of workers." In view of this, discuss the different methods of reducing labour turnover.

20 marks

"The objective of workers' participation has been to bring labour and management closer and work for achieving organisational goals." In this context, discuss the various reasons responsible for the failure of workers' participation schemes in India.

Explain why the companies buy back their own shares. How is it different from issue of bonus shares?

"Recognition of revenue presents two basic problems, namely timing and measurement". Do you agree? How would you solve these two basic problems?

10 marks

What do you understand by the term Annual Value of house property? How would you determine the annual value of let out house property which remained vacant for part of previous year?

Explain with suitable examples how 'Shut-down Cost' is different from 'Sunk Cost'.

10 marks

Explain five major points that an auditor shall keep in mind while conducting audit of a Charitable Trust.

Sun Ltd and Moon Ltd were amalgamated on and from April 0l, 209. A new company called Black-Hole Ltd was formed to take over the business of the above two companies. The balance sheets of Sun Ltd and Moon Ltd as on March 3, 209 are given below: (% in lakhs): Particulars Sun Ltd Moon Ltd (A) Liabilities: (i) Share Capital: Equity shares of each 2,000,600 15% preference shares of each 800 600 (ii) Revaluation Reserve 200 60 (iii) General Reserve 400 300 (iv) Surplus Account 60 20 (v) 2% Debentures of 100 each 92 60 (vi) Current Liabilities 408 90 4,60 3,30 (B) Assets: (i) Fixed Assets 2,400 2,000 (ii) Current Assets, Loans and Advances,760 9300 4,60 3,]30 2 Additional Information: (l) Preference shareholders of Sun Ltd and Moon Ltd have received the same number of 5% preference shares of ¥00 each in the new company. (2) 2% Debentures of Sun Ltd and Moon Ltd are discharged by the new company by issuing adequate number of 6% Debentures of ¥00 each to ensure that they continue to receive the same amount of interest. (3) Black-Hole Ltd has issued -5 Equity shares for each Equity share of Sun Ltd and Equity share for each Equity share of Moon Ltd. The face value of shares issued by Black-Hole Ltd is ¥00 each. You are required to prepare the balance sheet of Black-Hole Ltd as on April 0, 209 after the amalgamation has been carried out using the "Pooling of Interest Method".

20 marks

Two manufacturing companies which have the following operating details, decide to merge:: Particulars Company X Company Y Capacity Utilization 90% 60% Sales (₹ in lakh) 540 300 Variable Cost (₹ in lakh) 396 225 Fixed Cost (¥ in lakh) 80 50 Assuming that the proposal is implemented, calculate: (i) Break-even sales of the merged plants and capacity utilization at that stage. (ii) Profit of the merged plant at 80% capacity utilization. (iii) Sales of the merged plant to earn a profit of 75 lakh. (iv) When the merged plant is working at a capacity to earn a profit of 75 lakh, what percentage increase in selling price is required to sustain an increase of 5% in fixed overhead.

Discuss how the residential status of an assessee is determined for income tax purposes?

5 marks

Mr. X is a Government employee at Ludhiana and is getting following emoluments: (i) Salary — ¥ 30,000 per month (ii) Dearness Allowance (enters) — 60% of salary (iii) Contribution in Notified Pension Scheme - ¥ 3,000 per month (iv). Employer's contribution to Pension Scheme — ¥ 3,000 per month (v) Transport Allowance for commuting between home and office — ¥ 2,800 p.m. (vi) Deputation Allowance (for 2 months) — ¥ 3,000 per month (vii) Entertainment Allowance - ¥ 2,000 per month (During the year, he spent ¥ [2,000 on entertainment of official guests) (viii) He has been provided with a rent-free accommodation. The licence fee for the - accommodation has been fixed at ¥ 2,000 per month. The government has also provided him with furniture items costing 4,00,000 (WDV — ₹ 75,000) ei for his personal use. (ix) He has been provided with the facility of a servant and watchman w.c.f. 0.0.208 and the government is paying ¥ 3,000 per month to each of these servants. (x) A laptop costing = 50,000 has been given to him for his official as well as personal purposes. (xi) On 0.0.208 he took a loan of ¥ 2,00,0C0 from his employer to buy a car at a concessional rate of interest of 6-25%. The repayment of loan started w.e.f. 0.0.209 @ ₹ 0,000 per month. SBI rate of interest as on 0.04.208 was 9-25%. (xii) During the year savings made by Mr. X were: i (a) LIC Premium:: For Self ¥ 0,500 (sum assured ¥ 2,00,000) For Spouse ¥ 2,000 (sum assured ₹,00,000) For Mother 8,000 (sum assured ₹,00,000) For Major Son ¥ 8,000 (not dependent on him but is suffering from disability) (sum assured ¥ 50,000) All life insurance policies were taken in the previous year 204-5. (b) PPF Deposits: ¥ 5000 (c) Tuition Fees of Second Son studying in a College ¥ 6,000 (6) Repayment of Housing Loan from LIC'(Principal Portion) — ¥ 36,000 Calculate: (i) Salary Income (ii) Qualifying amount for deduction U/S 80 C.

20 marks

What do you understand by budgeting? What are the essentials of effective budgeting system? What are its limitations?

5 marks

What is Activity Based Costing (ABC) system? How is it different from Traditional Costing System? Explain the Steps to implement ABC system.

5 marks

Explain the nature and need for depreciation. Distinguish between straight line method and diminishing balance method of depreciation. What disclosures are required to be made in financial statements as per AS-6 on depreciation accounting?

20 marks

What is Responsibility Accounting? Explain the prerequisites and the problems in its implementation.

5 marks

Explain how investigation is different from that of Auditing. Under what. circumstances the Central Government can order for investigation of a company?

"Maximization of profits is regarded as the proper objective of investment decision, but it is not as exclusive as maximizing shareholders' wealth" — Comment.

"A firm should follow a policy of very high dividend pay-out". Do you agree? Why or why not?

Explain 'Indifference Point' (IP) in EBIT-EPS analysis.

10 marks

Distinguish between Primary Market and Secondary Market.

10 marks

"Investing in securities through Mutual Fund is a better choice than direct investment" — examine the statement.

A proforma cost sheet of a company provides the following particulars: Raw Material Cost per Unit - 70 Direct Labour Cost per Unit - © 35 Overhead Cost per Unit - 39 Total Cost per Unit - 60 Profit per Unit = 2 Selling price per Unit - 85 Additional Information: (0) Raw Materials are in stock on an average for month. (ii) Materials are in process on an average for 4 month.; (7) Finished goods are in stock on an average for month. (iv) Credit allowed by Suppliers is month. (v) Credit allowed to Debtors is 2 months. (vi) Lag in payment of wages is 4 weeks. (vii) Lag in payment of Overhead expenses is month. (viii) 4th of the output is sold against cash. (ix) Cash in hand and at bank is expected to be ₹ 2,50,000. You are required to prepare a statement showing the working capital needed to finance a level of activity of,04,000 Units of production. You may assume that production is carried on evenly throughout the year, wages and overheads accrue similarly and a time period of 52 weeks is equivalent to a year and 4 weeks is equivalent to a month.

20 marks

Illustrate the Net Income Approach relating to capital structure decision making.

Akash Limited wishes to raise additional finance of ¥ 0 lakh for meeting its investment plans. It has ¥ 2,0,000 in the form of retained earnings available for investment purposes. The following are the further details: (i) Debt — Equity Mix — 30% - 70% j (iii) Cost of Debt beyond ¥,80,000 — 6% (before tax) (iv) Earnings per share — <4 (v) Dividend pay out — 50% of earnings (vi) Expected growth rate in dividend — 10% (vii) Current market price per share - 44.|. (viii) Tax Rate — 50% You are required to: ' (a) Determine the pattern for raising the additional finance. (b) Determine the post-tax average cost of additional debts. (c) Determine the cost of retained earnings and cost of equity. (d) Compute the overall weighted average after tax cost of additional finance.

20 marks

From the following information, you are required to prepare the balance sheet of A Ltd as on March 3, 2019: Current Ratio - 60:i Liquid Ratio - 440:] Inventory Turnover — 6 times Gross Profit Ratio — 20% Debt Collection Period — |-92 months Fixed Assets Turnover — -25 times Reserves and Surplus to Capital - 0:25: ! Long Term Loan to Net worth —- 05:] Fixed Assets to Net worth — -20:I Sales for the year - 7,50,000

15 marks

What is CAPM? What are the components cf CAPM equation? Explain the meaning of each component. What does it tell us about the required return on a risky investment?

5 marks

What.do you mean by corporate restructuring? Outiie its objectives. Explain the. various techniques used for corporate restructuring.

20 marks

What is 'Money Market'? Discuss its features and functions.

Discuss the various functions of a commercial bank.

Span of Management

10 marks

Managerial Grid

10 marks

Quality Circles

10 marks

Perceptual Selectivity

10 marks

Explain the concept and rationale of decentralisation. What are the factors which influence decentralisation?

20 marks

"The line managers' orientation differs considerably from that of expert advisors." Examine this statement.

10 marks

What are the main features of Neo-Classical organisation theory? Explain the implications of this theory for organisational design.

20 marks

"There is a need for integrating individual and organisational goals for effective performance." Explain this statement.

10 marks

"With a view to taking advantage of personality characteristics of organisational members, it is desirable to measure their personality." Elucidate this statement and explain the various methods for measuring personality.

20 marks

Explain the nature of perception. How does management affect perception in the organisation?

20 marks

"Organisational change has to be managed on technological, social and economic dimensions." Elaborate this statement. What precautions should be taken in a democratic set-up to make a change acceptable to the personnel?

20 marks

What do you understand by role conflict? What are its causes? Discuss the methods to overcome role conflict.

10 marks

He or Terr Hise "Transactional analysis is a method of analysing and understanding interpersonal behaviour." Examine this statement.

20 marks

Human Resource Planning

10 marks

Trade Union Rivalry

10 marks

Explain the concept of 'Management by Exception'. What are its limitations? Suggest measures to overcome them.

10 marks

"The fundamental aim of industrial relations is to maintain sound relations between employees and employers." Elucidate. What are the various approaches to industrial relations?

20 marks

"The compliance with the statutory labour welfare provisions in India is half-hearted and inadequate." Do you agree with this statement? Comment.

20 marks

"The Trade Union movement in India has not developed on healthy I lines." Examine this statement.

10 marks

"Job analysis is useful for overall management of all personnel activities." In the light of this statement, explain the purpose and methods of job analysis.

20 marks

"Performance appraisal is not merely for appraisal, but also for accomplishment and improvement of performance." Comment.

20 marks

"Selection is virtually a kind of elimination process." In the light of this statement, explain the objectives and process of selection.

20 marks

What are the recommendations of the International Labour Organisation for minimising the labour problems related to international workforce? To what extent have these recommendations been fulfilled in the Indian context?

20 marks

What are the causes of industrial disputes? Explain the steps taken for preventing and settling industrial disputes in India.

10 marks

Explain the concept and nature of accounting standards. Why are these needed?

What are the costs used in managerial decision-making? Explain, in brief, their characteristics.

In what way does the liability of tax of a "not ordinarily resident" person differ from that of a "resident" person under the Income Tax Act?

Explain the major provisions of compulsory tax audit for claiming deduction under

Explain, in brief, the functions of cost accounting.

10 marks

The following is the Balance Sheet of XYZ Ltd, as at 31st March 207, 20,000 Equity shares 20,00,000 Goodwill 25,000 of #I00 each Land & Buildings,50,000 Plant & Machinery 3,00,000 Outstanding Stock 2,70,000 debentures interest 20,000) Debtors 60,000 Cash at Bank 35,000 Creditors 3,00,000 Preliminary expenses 20,000 Profit & Loss A/c. 9,80,000 3 The following is the scheme of reconstruction: (i) Equity shares are reduced by ₹95 per share. They are, then, consolidated into 0,000 equity shares of $]0 each. (ii) Debenture holders agree to forego outstanding debenture interest. As a compensation, |2% debentures are converted into 4% debentures, the amount remaining *5,00,000. (iii) Creditors are given the option to either accept 50% of their claim in cash in full settlement or to convert their claim into equity shares of each. Creditors for #2,00,000 opt for shares in satisfaction of their claims. (iv) To make payment to creditors opting for cash payment and to augment working capital, the company issues 50,000 equity shares ]0 cach at par, the entire amount being payable along with applications. The issue was fully subscribed, (v) Land and Buildings are revalued at ¥2,00,000 whereas plant and machinery ts to be written down to #2,0,000. A provision amounting to #5,000 is to be made for doubtful debts. Pass necessary journal entries and prepare the company's balance sheet immediately after the reconstruction.

20 marks

The product of a company passes through three distinct processes to completion., From past experience, it is ascertained that the normal wastage in each process ts as under + Wastage Sale value of wastage A 2% 25 paise per unit B 4% 50 paise per unit Cc 25% 60 pase per unit The expenses were as follows: = Process A Process B Process C Materials 12,000 L0,000 9,000 Direct labour L6,000 §,000 4.900 Manufacturing expenses 2,000 3,400 3,590 Other factory expenses 3,500 2,003 2,004 4,000 units were initially introduced in process A at a cost of %3,560. The output of each process was as under: A 3,850 units B 3,600 units Cc 3,500 units Prepare process accounts and also work out the sale price per unit of finished stock so as to realize 20% profit on selling price.

What are the provisions of inclusion of the income of a minor child and the wife of an assessce in his total income?

5 marks

Compute the taxable income of X (40 years) for the assessment year 20] 8-9, ¥ Net income from trading business §,00,000 Long-term capital gain on transfer of debentures (if computed without indexation) 600,000 Long-term capital gain on transfer of listed debentures (computed after indexation) (X wants to pay tax at the rate of 20% of $2,50,000 and not at the rate of 0% of *6,00,000) 250,000 Share of income from HUF in which he is a member 82,000 Winning from horse races (net of TDS of 30 per cent) 70,000 Interest on bank fixed deposits: — Deposit in his own name L,. 7,000 — In the name of minor son,450 — In the name of minor daughter 8.000 — In the name of major unmarried daughter 70,000 Expenditure incurred for medical treatment of his 67 years old elder brother (dependent of X, being a person with disability) 8,000 Repayment of loan taken for part-time studies of major daughter for graduate course in management (loan is taken from a notified charitable institute) 690,000 Payment of interest from the aforesaid loan 76,000 Donation to the aforesaid notified charitable institute 5,000 Brought forward loss of a discontinued business pertaining to the assessment year 20]4-I5 26,000 Purchase of a work of art on Novermber 20/7 from a friend for (market value is, however, I,/5,000 Deposit in Public Provident Fund account and purchase of State TX issue,63,000

25 marks

State the points to be considered while determining divisible profits in case of a company. What are the auditor's duties in regard to payment of dividends by a company '?

Explain, in brief, the main provisions of Indian Accounting Standards regarding cash flow statement.

"The audit of banks is the audit of balance sheet and advances." Explain. Distinguish between performing and non-performing assets.

"Standard costing is universally accepted as an effective instrument for controlling costs in industries." In the light of this statement, explain the objectives of standard costing.

Critically examine the relationship between the key financial decisions, return, risk and market value.

"ABC Analysis, FSN Analysis and Inventory Turnover Ratio are the most commonly used tools of inventory management." Explain each tool in bnef and state the reasons for their popularity.

Discuss the following ways of incorporating risk in the investment decision making process: The Risk-Adjusted Discount Method and The Certainty Equivalent Method, IO

"Financial markets can be classified based on types of financial claims, maturity of claims, claims representing new issues or outstanding issues, timing of delivery and nature of its organisation structure." Summiarise the classification m brief.

Explain the rating methodology used by CRISIL in debt rating. What symbols are used by CRISIL for determining the risk level of a debt instrument?

10 marks

ABC Ltd. is considering the following credit policy alternatives: Existing Option Option Particulars Policy sar (A) Credit Sales (% in lakhs) L000) O60) 2-(M) (B) Credit Period (days) 30 45 60 (C) Bad Debt (% of sales) 5 4 6 (D) Cost of Credit Administration (¥ in lakhs) 0-40 0:25. 0-50 (E) Average Collection Period (days) 45 50) 70 The company expects to achieve a contribution of 40% on sales. It has the required rate of return on investment of 20% p.a. Assume 365 days in a year. You are required to suggest which credit period option is more suitable to the company.

20 marks

The following information is available for KRISHIV Corporation: — Earning per share: 4-00 — Rate of return on investments: 36 per cent — Rate of retum required by shareholders +: per cent What will be the price per share as per the Walter Model if the payout ratio iS 40 per cent? 50 per cent? 60 per cent?

15 marks

"The Weighted Average Cost of Capital (WACC) of a firm, depends on many factors: which are beyond the control on the investment and financing policies of 8 firm." Explain in brief.

Namya Ltd. wants to prepare the feasibility of manufacturing one of the components needed for its finished product. It has two options of purchasing from its present supplier or to manufacture it in-house. lis present supplier has shown the willingness to provide at [25 per unit for the company's requirement of 6000 units per year. If the component is manufactured in-house, it requires equipments costing ||) lakh and is expected to have salvage value of %2 lakh after the expiry of five years. Additional fixed cost (excluding depreciation) are estimated to increase by lakh per year. The variable cost of manufacturing each component will be 30 per unit. The company is subject to a 35 per cent tax rate. Its cost of capital is |5 per cent for this project. The company's projected annual needs is at 7500 units per year for 5 years. The tax relevant rate of depreciation is 25 per cent based on WDV method. Advise the company, whether it should continue buying from outside supplicr or start its own manufacturing. Will your answer be different if the requirement of the company is only 6000 units per year 7? Year = 2 3 4 5 The present value of 0-870 0-658 0-572 0497

Mayur Manufacturing Ltd. has equity share capital of &5,00,000 (face value ₹]0]), To meet the requirement of expansion plan, the company wishes to raise =3,00,000. The company is considering the following four alternative sources to raise the funds; Plan A: To have full money ftom the equity shares. Plan B: Toraise lakh from equity and #2 lakhs by borrowing from financial institution @ rate of interest per annum, Plan C: 'To raise full money of #3 lakhs from bank at |0% rate of interest per annum. Plan D: # lakh in equity and #2 lakhs issue of preference shares at 8% per annum dividend,: The company is expected to have earnings of ¥,50,000 after the expansion programme. The tax rate applicable to company is 35%. Suggest the suitable aa

Define and evaluate the following ratios used for analysis of financial statements:. (i) Acid-test ratio (ii) Interest coverage ratio (iil) Average collection period (iv) Return on capital employed (v) Price — earning ratio

15 marks

What are the different bases for establishing the exchange ratio in case of a merger? How the boundaries for exchange rate is determined from the view point of acquiring, acquired and combined firm?

Discuss the state of the venture capital industry in India.

15 marks

State the assumptions made in Modigliani and Miller Proposition-I that the capital structure is independent of capital mix. Explain with an example that how arbitrage process justifies the theory, using the following data. Shyam Ltd. and Ram Ltd. belong to same risk class. Ram Ltd. has no debt capital. Shyam Ltd. has both debt and equity capital. Other details are as under: Net Operating Income (®) 10,00,000 10,00,000 Debt Interest (¥ )

Adaptive Coping Cycle

10 marks

How does a learning organisation differ from a traditional organisation? What impact do these differences have on the way people are managed?

20 marks

"The political power game is very real in modern organisations." Comment on this statement. Also examine its postulates of power in organisations that help focus on the political realities.

20 marks

What is meant by impression management? Also distinguish between impression motivation and impression construction.

10 marks

What are some of these? Also, what can organisations do to help break the glass ceiling?

20 marks

What are the major contributions of Herzberg's theory of motivation? Do you think it makes a contribution to the better understanding of motivation in the workplace? Comment and give arguments in support of your answer.

20 marks

What is the nature of 'selfs' in the Johari Window? What implications does each have for interpersonal conflict?

10 marks

"The overriding purpose of Quality of Work Life (QWL) is to change the elimate at work so that the human — technological — organisational interface leads to a better quality of work life." Examine this statement. bi How do gaps create problems for this interface?

20 marks

What are some styles of charismatic leadership? Critically examine the Robert House theory of charismatic leadership in the context of Indian Brenario.

Examine the attributes of virtual organisation. Also assess their implications in the Indian corporate sector.

10 marks

(b>) avon are (firs)

Golden Handshake

10 marks

Standing Orders

10 marks

Dissolution of Trade Union

10 marks

"Merit-based promotion leads to dissatisfaction of all except one, hence the resulting effect is negative; seniority-based promotion has the distinctive advantage of satisfying all in due course of time." Critically evaluate this system. Also suggest a suitable promotion policy for Indian enterprises.

20 marks

"Demand forecasting of human resource is the process of estimating the future quantity and quality of people required." In the light of this statement, evaluate various techniques specially applicable to the service industry.

20 marks

What is meant by attrition rate? Why and how are Indian information technology and marketing companies facing this growing attrition rate? Develop a suggestive framework to overcome these problems.

Tits a = =a Ay aa wan sedge fear ar Gena é How is performance management system different from performance appraisal system 7 Also explain how customised performance appraisals can be used as a strategic tool for performance management system.

20 marks

"Collective bargaining is important to both employers and employees but measures to make the process more effective.

20 marks

"The basic aim of talent management is to develop and maintain a talent pool consisting of a skilled, engaged and committed workforce." Do you agree with this comment? Assess its implications in the context of recent government initiatives for the development of talent management in the country.

10 marks

"In India, workers' participation in management is a farce and an ineffective mechanism but it can be reinforced with suitable legal initiatives." Comment and offer your suggestions to make the legal framework more effective and viable.

20 marks

Discuss the objectives and functions of International Labour Organisation (ILO). Also critically examine its pattern of structure and contribution in the field of Indian labour market.

20 marks

"It is often argued that reward systems should be adjusted in line with changing organisational strategic objectives — yet in the real world, this is not often the case." Comment on this statement.

10 marks

State the provisions of Indian Accounting Standards regarding Foreign Exchange Transactions.

Distinguish between Internal Reconstruction and External Reconstruction of Companies.

Define 'Responsibility Centre'. Explain its various types.

Write a note on 'Service Tax'.

"Verification of Advances is an important function of an auditor of a Bank." Explain.

P| The Balance Sheets of Rakesh Ltd. and Lokesh Ltd. as at 3.2.20i3 were as follows: Rakesh Lokesh Rakesh Lokesh Liabilities Ltd. Ltd. {Assets Ltd. Ltd. z x = = Equity Share Capital Fixed Assets (other (Sharesiof exch 6,00,000} 4,00,000 feat 5,00,000| 3,50,000 Profit and Loss A/c 75,000} 60,000,40,000},00,000 Sundry Creditors 37,500 30,000|Cash and Bank,7,500 60,000 Preliminary Expenses 0,000 5,000 |. [5,62500| 590,000 862,500) 5,90,000 Rakesh Ltd. took over and absorbed Lokesh Ltd. as on.7.204. No - balance sheet of Lokesh Ltd. was prepared on the date of takeover, but the following information is made available to you: (i) In the six months ended 30.6.204 Lokesh Ltd. made a net profit of = 60,000 after providing for depreciation at 0% per annum on fixed assets. (Gi) Rakesh Ltd. during that period made a net profit of =,45,000 after providing for depreciation at 0% per annum on the fixed assets. (iii) Both the companies had distributed dividends of 0% on.4.204. (iv) Goodwill of Lokesh Ltd. on the date of takeover was estimated at 25,000 and it was agreed that the stocks of Lokesh Ltd. would. be appreciated by = 5,000 on the date of takeover. (v) Rakesh Ltd. to issue shares to Lokesh Ltd. on the basis of the intrinsic value of the shares on the date of takeover. Prepare the Balance Sheet of Rakesh Ltd. after absorption.

20 marks

How is Differential Cost Analysis helpful in decision-making?

"Residential status has its effect on computation of taxable income under the Income Tax Act, 96." Discuss.

A company manufacturing two products furnishes the following data for a year: Product Annual Total Machine| Total Number of Total Number roduct Output (units) Hours Purchase Orders of Set-ups 5,000 20,000 60 20 8 60,000 _| _2,20,000 The annual overheads are as under: i Volume related activity costs 5,50,000 Set-up related costs 8,20,000 Purchase related costs 6,8,000 You are required to calculate the cost per unit of each product 'A' and 'B' based on (i) Traditional method of charging overheads (ii) Activity based costing method 6

Discuss the provisions of Indian Accounting Standards on Accounting for Depreciation.

& Mr. '*X' owns two house properties, 'A' and 'B'. Property 'A' is used by him for his own residential purpose, whereas property 'B' is let out to a tenant for a monthly rent.of = 5,000 throughout the financial year 206-—7. The other particulars in respect of the properties are as under: Municipal Valuation = 30,000 = 50,000 Standard Rent under Rent Control Act ₹ 40,000 =,00,000 Municipal Taxes paid by Mr. ₹ 8,000 ₹ 24,000 Maintenance Charges paid 6,000 ₹ 8,000 Date of completion of construction 3.3.200 3.8.203 Interest on home loans for construction of properties from Nationalised Bank ₹ 70,000 ₹ |,20,000 Fire Insurance Premium Payable = I,500 ₹ 3,000 The following further information is available: (i) Out of interest of =,20,000 on home loan taken for construction of property 'B', an amount of = 30,000 was outstanding payable as at 3.3.207. (ii) Mr. ' was employed by ABC Ltd. on a monthly salary of = 50,000 plus monthly travelling allowance of ¥ 0,000. (iii) He donated during the year =,50,000 to a charitable trust approved under Section 80G of the Income Tax Act, 96]. (iv) Hespent = 7,500 for his health check-up during the year. You are required to compute Total Taxable Income of Mr. 'X' for the Assessment Year 207 - 8.

20 marks

A bank has received an application from a customer for a loan. You have to investigate on behalf of the bank the accounts of the customer. Highlight those points you would like to concentrate upon.

Define 'Normal Wastage', 'Abnormal Wastage' and 'Abnormal Effectiveness'. State how these are treated in Process Costing.

Mr. 'A' inherited a residential house from his father in January 205. His father had bought the said house in the year 979 at a cost of = 70,000. Mr. 'A' sold the house in June 206 for a sale consideration of 7,00,000 and the registered valuer has valued the said house at =,00,000 as at.4.98. The Cost Inflation Index (CID) is as under: Financial Year CII 98l - 82 00 You are required to compute the income from capital gains for the Assessment Year 20i7 - 8. Also suggest the actions, if any, that may be taken by Mr. 'A' to avoid tax on capital gains.

20 marks

"Profit maximisation is the goal of Financial Management." Critically examine.

Discuss the Risk-Return Trade-off in financial decisions.

Distinguish between Money Market: and Capital Market.

Discuss the various methods of deciding exchange ratio in merger of companies.

State the valuation formula put forward by James Walter. Also explain the logic behind it.

A company sells 2600 units of 'Mixer' at = 2,000 each, annually. The details of cost per unit are as follows: = Raw and Packing Materials 800 Direct Wages 400° Overhead Expenses 400 Overhead expenses include = 2-60 lakhs on depreciation. Production is evenly maintained over the year, on a weekly basis. All sales are on credit. Materials are introduced at the beginning of the process. The following additional information is also available: Average Period Raw Material and Packing Materials in stock 4 weeks Work-in-Progress (Material 00%, Labour and Overheads 50%) week Finished Goods l week Credit Allowed to Debtors 6 weeks Credit Allowed by Suppliers 4 weeks Cash balance to be maintained is = 60,000. Calculate the Net Working Capital Requirements of the company.

20 marks

Discuss the role of SEBI in regulating the Capital Market.

Define Capital Rationing. Explain the factors leading to Capital Rationing and also state the situations of Capital Rationing.

The following information is related to 'Alpha Co. Ltd.' for the year ended 3.3.206: 4 Equity Share Capital (= 0 each) 50 lakhs 2% Bonds of =,000 each 37 lakhs Sales 84 lakhs Fixed Cost (excluding interest) 6:96 lakhs Financial Leverage:49 Profit Volume Ratio 27:55% Income Tax Applicable 40% You are required to calculate (i) Operating Leverage (ii) Combined Leverage (iii) Earning Per Share

20 marks

Explain the techniques used by the Credit Manager in monitoring the status and the composition of Accounts Receivables.

What is Commercial Paper? Explain its significance and the pre-conditions for the issue of Commercial Paper.

The Balance Sheets of 5.8. Ltd. as at 3.3.204 and 3.3.205 are as under: 0 ee ee z = a, The following additional information is available: (i) During the financial year 2014-—5, the company issued equity shares at par. (ii) Debentures were redeemed on.4.204 at a premium of 0%. (iii) 8076 investments were sold at a profit of = 75,000 and the profit was credited to General Reserve Account. (iv) During the year, an old machine costing = 23,50,000 was sold for 6,25,000. Its written down value was = 8,00,000. (v) Depreciation is to be provided on plant and machinery at 20% on the opening balance. (vi) There was no purchase or sale of land and building. (vii) Provision for tax made during the year was = 4,50,000. You are required to prepare a Cash Flow Statement for the year ended

Define 'Optimum Capital Structure'. Discuss the major considerations in the Optimum Capital Structure planning of a firm.

Explain the significance of the following Accounting Ratios: 6 (i) Debt-Equity Ratio (ii) Acid Test Ratio Gii) Inventory Turnover Ratio (iv) Operating Profit Ratio (v) Current Ratio

Explain the following

Management by exception

Principle of accountability

Empowered organization

Cynical puppeteering of people

"The critics of organizational theory are of the view that modern theory of organization is like 'an old wine in new bottle'." Examine the statement.

20 marks

Organizational environment decides the success or failure of an enterprise. Do you agree? Give arguments in support of your answer.

20 marks

Virtual organization emphasizes vitality and growth of an organization. Elucidate.

10 marks

The theories of motivation are not competitive to each other, their inter- relationship needs an understanding for integrating them. Suggest steps for the same.

20 marks

"Quality circles tend to show little or no effect on the productivity of an organization." Do you agree? Suggest a framework to make it more responsive and effective.

20 marks

"Leadership vacuum works as double-edged sword." What are the implications of this statement?

10 marks

Explain the technique of management by objective. Give suggestions for making it more effective.

20 marks

Explain the internal and external changes which must be taken into account by the management in framing its policies.

20 marks

Line and staff functions in a modern organization are irrelevant. Do you agree? Comment.

10 marks

Explain the following

360° feedback system

Merit rating vs. Job rating

"One thing is now universally accepted that in the long run the cost of not training is always more than the cost of training and the greater the training activity in an organization, the less the doubt about its utility." Comment.

20 marks

"In an organization, we pay for jobs but not for men." Do you agree? How does job evaluation affect human relations in industry?

20 marks

Suppose that your firm has gone outside of the organization to fill a position in middle management even though it has an announced policy of promotion from within. An employee has challenged this action on the basis of policy. What could be an appropriate reply?

10 marks

"Indian trade union movement has failed to serve the purpose of its own formation." In the light of this statement, develop a suggestive framework to improve the functioning of trade unions in India.

20 marks

What are the essentials of a satisfactory wage system? Briefly explain the various methods of wage payment and discuss the merits and demerits of each.

20 marks

"Mutual trust in an organization is the main key to collective bargaining." Comment.

10 marks

"One of the instruments of industrial democracy is workers participation in management." Comment on this statement and offer suggestions to make workers participation more relevant and effective.

20 marks

What is employee selection? Explain the different types of tests being used in the process of selection of employees.

20 marks

Examine the influence of human resource outsourcing on business entérprises. Suggest suitable measures to make it more relevant and effective.

10 marks

Discuss the provisions of Indian Accounting Standards regarding the accounting treatment of Research and Development costs.

Distinguish between the techniques of Cost Control and Cost Reduction and also explain their implications on decision-making.

Explain Pooling of Interest method of amalgamation of companies.

What are the various deductions made from Gross Total Income?

"Audit of divisible profits enables the stakeholders to judge the philosophy of majority shareholders." Comment.

20 marks

RS Ltd. issued a prospectus inviting applications for 20,000 shares of = 0 each at a premium of = 2 per share payable as under: On Application Ce On Allotment = 5 (including premium) On First call = 3 On Sevoud aud Pinal call Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. Excess money paid on applications was utilised towards allotment money. Kherwa, to whom 400 shares were allotted, failed to pay the allotment money. On her subsequent failure to pay the first call, her shares were forfeited. Suri, the holder of 600 shares, failed to pay the two calls, and her shares were forfeited after the second call. Out of these forfeited shares, 800 shares were reissued to Gopal, credited as fully paid for = 9 per share, the whole of Kherwa's shares being included. Pass the necessary Journal entries in the books of RS Ltd.

20 marks

Two manufacturing companies, which have the following operating details, decided to merge: Company Company No. l No. 2 Capacity Utilization (in %) 90 60 Sales (= lakhs) 540 300 Variable Cost (= lakhs) 396 225 Fixed Cost (= lakhs) 80 50 Assuming that the proposal is implemented, calculate: 86 (i) Break-even sales of the merged plant and the capacity utilization at that stage. (ii) Profitability of the merged plant at 80% capacity utilization. (iii) Sales turnover of the merged plant to earn a profit of = 75 lakhs.

"An assessee not only pays tax on his own incomes but also on others' incomes." Explain this statement.

5 marks

The Cost Accountant of a company was given the following information regarding the overheads for February, 206: (l) Overhead cost variance: =,400 adverse (2) Overhead volume variance: =,000 adverse (8) Budgeted hours for February, 206:,200 hours (4) Budgeted overheads for February, 206: ₹ 6,000 (5) Actual rate of recovery of overheads: ~ per hour You are required to assist him in computing the following for February, 2016: 20 (i) Overhead expenditure variance (ii) Actual overheads incurred (iii) Actual hours for actual production (iv) Overhead capacity variance (v) Overhead efficiency variance (vi) Standard hours for actual production

State four items which are not to be included in determining the cost of inventories in accordance with Paragraph 6 of Accounting Standards 2 (Revised).

5 marks

An NGO operating in Delhi had collected large scale donations for flood victims. The donations so collected were sent to different NGOs operating in Bihar for relief operations. The NGO operating in Delhi has appointed you to audit its accounts for the year in which it collected and remitted donations for flood victims. Draft a programme for audit of receipts of donations and remittance of the collected amount to different NGOs. Mention five points each, peculiar to the situation, which you would like to incorporate in your audit programme tor audit of the said receipts and remittances of donations.

Sharma is a Chief Medical Officer. He receives a salary of 5,000 per month and Dearness Allowance @ 25%. He contributes 5% of his salary to a Recognised Provident Fund. The employer also contributes an equal amount. He is provided with a Rent Free House in a city with a population of 5 lakhs. Fair rental value of the house is = 6,000 per month. He receives Hostel Allowance of = 500 per month for his child. He has let out his own house at = 500 per month and paid = 2,000 for Municipal tax of the house. He has the following incomes too: Dividend from a domestic company = 5,000 Interest on debentures of a cooperative society = 3,000 Dividend from a foreign company =,000 Share in the profits of A.O.P. = 2,000 He paid © 2,000 for his own medical health insurance by cheque. He donated =,500 to a national fund and =,500 for promoting family planning programmes. Compute the total income for the Assessment Year 2016 — 7.

20 marks

C4: ROP <A RST > LA Pot Pet 28 8

The information given below has been taken from the costing records of a company in respect of Job No. 303: Materials: = 4,00 Wages: Dept. A: 60 hours @ ₹ 3 per hour Dept. 8: 40 hours @ = 2 per hour Dept. C; 20 hours @ = 5 per hour Overhead expenses for these departments were estimated as follows: Variable overheads: Dept. A: = 5,000 for 5000 labour hours Dept. 8: = 3,000 for 500 labour hours Dept. C: = 2,000 for 500 labour hours Fixed overheads: Estimated at = 20,000 for 0,000 normal working hours. You are required to calculate the cost of Job No. 303 and also calculate the selling price to earn a profit of 25%.

Enumerate the steps to be taken by an auditor before declaring an account as Non-Performing Asset (NPA) in a bank audit.

Explain the relevance of time value of money in financial decisions.

Diagrammatically present the Du Pont chart to calculate return on equity.

Explain briefly the propositions made in Modigliani and Miller approach on cost of capital.

Explain the current Monetary Policy.

Evaluate the role of Credit Rating Agencies.

& Using the following information, prepare the Balance Sheet: 20 (i) Total debt to net worth L232 (ii) Total assets turnover 2 (iii) Gross profit on sales 30% (iv) Average collection period (Assume 40 days 360 days year) (v) Inventory turnover ratio based on cost of goods sold and year-end inventory 3 (vi) Acid test ratio 0-78 (vii) Equity share capital = 4,00,000 (viii) Reserves and Surplus = 6,00,000

X Ltd. and Y Ltd. have the same level of business risk and their market values and earnings are summarised below: arti X Ltd. Y Ltd. Particulars ¥ = Equity 6,00,000 3,00,000 Debt = 2,50,000 6,00,000 5,50,000 Earnings 90,000 90,000 Less: Interest 22,000 90,000 68,000; Calculate the post-tax cost of equity, cost of debt and weighted average cost of capital of both the companies. Assume that the income-tax rate on the company is 35% and the additional tax on dividend distribution is 20%.

5 marks

Write the important reforms that have taken place in the following sectors after 99]: 46 (i) Banking Sector (ii) Primary and Secondary Stock Market (iii) External Financial Market

Ltd. wants to install a new machine in place of an existing old one which has become obsolete. The company made extensive enquiries and from the proposals received, short-listed two offers. The two models differ in cost, output and anticipated net revenue. The estimated life of both the machines is five years. There will be only negligible salvage value at the end of the fifth year. Further details are as follows; ieee el Anticipated after-tax cash flow es Pe fof [w fe fe fo The company's cost of capital is 6%. You are required to make an appraisal of the two offers and advise the firm by using the following: 20 (i) Payback Period (ii) Net Present Value (iii) Profitability Index (iv) Internal Rate of Return

Shree Ltd. has current sales of = 20,00,000. The company is planning to introduce a cash discount policy of 2/0, net 30. As a result, the company expects the average collection period to go down by 0 days and 80% of the sales to opt for the cash discount facility. If the company's required return on investment in receivables is 20%, should it introduce the new discount policy?

Examine various measures taken by SEBI for the development of Foreign Institutional Investors and Venture Capitalists.

The share capital of a company is = 0,00,000 with shares of face value of = 0. The company has debt capital of € 6,00,000 @ 0% rate of interest. The sales of the firm are 3,00,000 units per annum at a selling price of = 5 per unit and variable cost is ¥ 3 per unit. The fixed cost amounts to ₹ 2,00,000. The company pays tax at 35%. If the sales increase by 0%, calculate: 20 (i) Percentage increase in EPS (ii) Degree of financial leverage at the two levels

Explain the Modigliani and Miller approach for corporate dividend policy.

876 insurance sector reforms that have taken place in India during the period of liberalisation?

Explain the following

Strategy-Structure Relationship

10 marks

Freudian Stages

10 marks

"Organisations are collectivities of people that have been established for the pursuit of relatively specific objectives on a more or less on continuous basis". Elucidate the implication(s) of this statement.

20 marks

The criticisms of Neo-classical organisation theory ranges from "human relations as a tool for cynical puppeteering of people' to 'human relations no more than a trifling body of empirical descriptive information'. Throw light on this statement.

"Political and legal environment works both as a promoting and as a restraining force in business operations". Examine this statement.

10 marks

"Informal organisation is detrimental to the interest of formal organisation and, therefore, it is an evil to be nipped in the bud itself." Comment on this statement and explain how managers should handle informal organisation.

20 marks

"The relative advantages of functional structure of organisations are like two-edged "swords." What are the implications of this statement?

20 marks

How 'power' differs from 'authority'? Discuss the sources of power in an organisation.

"When there is an accident in a factory, the supervisor may treat it as the carelessness of worker(s), while the worker(s) may treat it as the high-handedness of thatiayenient and lack of adequate provisions of security measures." What is the significance of this Phenomenon, and why people see the same situation differently?

20 marks

"Biological factors are important in determining the personality of a person." Comment on this statement.

10 marks

What are the various elements in the 'Porter-Lawler Model' of motivation? What are the implications of these elements in motivating a person?

20 marks

Explain the following

Versatility transfer

10 marks

Burack Smith Model forecasting Human resource needs

10 marks

Measures to control Absenteeism AQ

Industrial Jurisprudence

10 marks

"Human resource management practices are culture bound." Discuss this statement and show how different cultures adopt different human resource management practices.

20 marks

Placement is-a decisive step that affect both the employees and the organisation." Explain the statement.

20 marks

Discuss briefly the various on-the-job and off-the-job training and development méthods.

"A job description is a word picture of the organisational relationships, responsibilities and specific duties that constitute a given job or position." Discuss the major criteria for a well-made job description that link the underlined factors.

"The immediate objective of job-evaluation process is to obtain internal and external consistency in wage and salaries." Elucidate the statement and throw light on the effect of job-evaluation on human relation in an industry.

A manufacturing company has about 200 employees in its plant. It undertakes performance appraisal on informal basis. The company wants to adopt a formal appraisal system. Advice the company as to how it should proceed in the matter.

Why do employees join a trade union? Discuss a strategy which an organisation can adopt for dealing with the trade union with the possibility of making the company union free.

20 marks

"The objective of arbitration is not compromise but adjudication, though the parties are at liberty to compromise. A wise arbitrator will certainly promote such agreements, but as a rule, there is no place for compromise in the awards." In the light of this statement compare the advantages and disadvantages of settlement approach and arbitration. Also show at which stage of negotiation parties may opt for arbitration.

20 marks

Union demands and collective bargaining settlements in private industry and public sector industries differ significantly. List down the differences and suggest suitable