Special Studies in Finance Prelims Question Paper 2013 – Shreya Classes

SSF

Note: Section 1 is compulsory and attempt Any 3 from section 2.

Section 1

Q1)  Explain the following Concept Questions:                                                            (15)

(a)  Technical Feasibility

(b)  Capital Markets

(c)   Prospectus

(d)  Book Building process

(e)  CRISIL.

Q2. (A) On 1^st Jan 2001, A Ltd. Purchased a machine from B Ltd. On hire purchase basis on following terms:                                                                                                             (5)

(a) Cash Price Rs: 8925

(b) Cash Down Payment:  20%

( c) Four annual Equal installments of Rs. 25,000 each to be paid at the end of

Each year.

Required: Compute the amount of interest pertaining to each accounting year.

( Depreciate Machinery @ 10% RBM. Prepare Machinery A/c.)

Q2) (B) you are required to pass journal entries in the books of X Ltd. in respect of following transactions:                                                                                                            (5)

a)    800 sweet equity shares of Rs. 10 each were issued free of cost to employees for providing Technical Knowhow,. Market price was Rs. 350

b)    1000 equity shares of Rs. 10 each were issued to vendor for purchase of popular brand name. Market price per share was Rs. 450

c)    500 sweat equity shares of Rs. 10 each were issued at Rs. 100 to Directors. Market price was Rs. 275.

Q2) (C) A company has its share capital dividend into shares of Rs.10 each. On 1^st April, 2009 it granted 10,000 employees stock options at Rs. 50, when market price was Rs. 130. The options were to be exercised between 16^th Dec, 2009 & 15^th March, 2010. The employees exercised their options for 9,500 shares only, the remaining options lapsed. The company closes its books on 31^st March every year. Pass necessary journal entries in the books of company                                             (5)

Section 2

Q3) Compute EVA of BPCL Ltd. For 3 years from the information given (in Rs. Lakhs)                                                                                                                                  (10)

Q4) M/s Inward Technology has shortlisted two Projects A and B for final consideration. It wants to take up only one Project of two and not both. The investment required fro Project A is Rs 190 Lakhs and for B is Rs 400 Lakhs. The other details related are as follows:                                                                       (10)

Project A:

Project B:

The cost of capital is 12%.

(A) Calculate NPV and recommend the Project.

(B)  Calculate Pay back period and recommend the Project.

Q5) ABC ltd a company Incorporated under the Indian companies act 1956 exported good s worth $ 80000 to crow inc. of New York on 15^th dec.2009. on that date exchange rate for $ 1  was Rs 47.50. The Payment for above export (after adjusting 25% down payment) was made as under:                                                                (10)

The accounting year of the company ends on 31/03/2010 (Exchange rate is Rs 45).

A)   Compute Foreign exchange Loss or Gain as AS-11.

B)   Prepare Foreign Exchange A/c.

Q6) Short Notes (Any 2)                                                                                                    (10)

(a)  Functions of Credit Rating Agencies.

(b)  Advantages of Mutual Fund

(c)   Explain Types of Underwriting.