JINALL CLASSES
TIME: 2.5HRÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â SSF PRELIM Â EXAMÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â MARKS 75
NOTE:
WORKING NOTE SHOULD BE PART OF SOLUTION.
EACH QUESTION CARRY EQUAL MARKS.
Q1. (a) From the following information for 7Star ltd. For year ended 31st march 2013.Calculate the deferred tax asset/liability as per AS-22          5MKS
| Accounting Profit | 8,00,000 |
| Book as per MAT | 3,50,000 |
| Profit as per Income Tax Act | 35,000 |
| Tax Rate | 30% |
| Mate Rate | 10% |
(b) Following is the data regarding six segments of indigo Ltd. (Rs. In lakhs) 5MKS
| Segments | A | B | C | D | E | F |
| Segments revenue in Rs. | 50 | 80 | 50 | 30 | 20 | 10 |
| Segments results | 40 | (150) | 20 | 20 | (10) | 10 |
| Segments Assets | 500 | 600 | 200 | 40 | 100 | 40 |
Identify the reporting segments and advise the management of indigo ltd. keeping in view the provision of AS-17 on segment reporting as issued by the ICAI.
(c) Calculate the missing figure: 5MKS
| Particulars | Amount in Rs. |
| Sales value in Rs. | 5,00,000 |
| Income | 1,00,000 |
| Average investment in Rs. | 15,00,000 |
| Sales Margin in % | ? |
| Capital turnover (times) | ? |
| ROI(%) | ? |
| EVA (Economic value added in Rs.) | ? |
Q2. Answer the following                            ( Any2)                15MKS
(a) Prepare an amortization schedule from the following information
| Amount borrowed | 2,40,000 |
| Principal installment (in Rs.) | 48,000 |
| Annual Interest | 13% |
| Repayment period | 5 years |
(b) Delta co. ltd in considering the following 2 investments to the proposals X and Y requiring a net cash outlay of Rs. 1,20,000 and Rs. 1,70,000. The cash inflow are tabulated below rank this project in order of their profitability according to net present value and profitability index method. Assume that the firm cost of capital is 15%
| Year | Cash inFlow | PV of Rs. 1 at 15% discounted factor | |
| Project A in RS. | Project A in RS. | ||
| 1. | 15,000 | 55,000 | 0.870 |
| 2. | 35,000 | 70,000 | 0.756 |
| 3. | 50,000 | 90,000 | 0.658 |
| 4. | 70,000 | 60,000 | 0.572 |
| 5. | 4,50,000 | 40,000 | 0.497 |
(c) Explain the various components of project report:
Q3. Answer the following                                            Any 2                    15MKS
(a) Nandlal ltd. Imported goods from Alpha Inc a US co. worth US dollars 5,00,000 on 10th August 2013 when exchange rate was US $ 1= Rs. 42.90. Nandlal ltd agreed to pay 5 installments as below:
| Date | Installments (US$) | Rate of Exchange(RS.) |
| 10-10-2013 | 75,000 | 43.75 |
| 10-12-2013 | 1,50,000 | 44.50 |
| 10-2-2013 | 60,000 | 45.50 |
| 10-4-2014 | 75,000 | 43.90 |
| 10-6-2014 | 1,40,000 | 44.00 |
The rate of exchange was RS. 43.00 as on 31st march 2014 pass journal entries in the books of Nandlal ltd. In accordance with AS-11
(b) Happy ltd. Imported goods worth US $ 4,00,000 to M/s Hogg & co. of USA on 10th August 2013 when exchange rate was RS. 41.00 south ltd. Agreed to pay the amt in 4 equal installments as under
| Date | Exchange Rate in RS. |
| 10-9-2013 | 42.25 |
| 10-10-2013 | 43.00 |
| 10-11-2013 | 43.50 |
| 10-12-2013 | 43.70 |
You are required to prepare foreign exchange fluctuation A/c in the books of south ltd.
(c ) What are monetary and Non monetary items as per As- 11?
Q4. Ans the following                    Any 2                    15MKS
(a ) UFO ltd. Had purchased machinery(cash price 61700) on Hire purchase system from Hind machinery ltd. The terms are that they would pay RS. 20,000 down on 1-1-2014 and 4 half yearly installment of Rs. 11,000 each commencing from 1-7-2014. They charged depreciation on machinery @ of 100% p.a. Show Hind machinery Ltd. A/c to record the above transactions in the books of UFO ltd, til the installments are paid off.UFo ltd. Accounting year ended on 31stDecember each year.
(b) Royal limited IPO opened on 6thOctober , 2013 and closed on 8th October 2013. Co. issued 20 Crores share in the price band 1200-1300. Public applied for 200 crore shares. The co. announced issued Price of Rs. 1250. Average price of application receives is Rs. 1270. Pass necessary journal entries in the books of Royal ltd. Refund and allotment of shares was done on 20th October 2013. Face value of RS. 10.
(c ) Explain the various functions of merchant banking?
Q5. Solve the foll casestudy:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 15MKS
Satyam Ltd. Furnishing you the following information :
- Proposed setup at Dhanu B. Tax Rate is @40% C. Depreciation P.a RS. 2,500 lakhs
- Term loan required RS. 40 lakhs E. Expected ROI @ 30% F. interest rate @ 13%
- tenure of loan = 8years repayable with installments & Interest at the end of each year.
- Tax holiday for 1st 5 years
The cost of the proposed project and the means of finance are as follows:
| Proposed Project | IN lakhs |
| Cost of project:- | |
| Â Â Â Plant and machinery | 30,000 |
| Â Â Factory building | 12,000 |
| Â Â Margin Money for working capital | 2,000 |
| Total:- | 44,000 |
| Means of finance : | |
| Additional equity share capital | 3,000 |
| Retained earnings | 1,000 |
| Term loan | 40,000 |
| Total: | 44,000 |
As the bank executive of the term landing institute you are requested to :-
- Prepare flash report from the point of view of the term landing institution
- Evaluate the project for profitability in the next 3 years
- Calculate the DSCR and ICR for the 1st 3 years and offer comment
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