(2 Hours) Marks: 75: Q1A Fill in The Blanks With Appropriate Option (ANY 8) 8

4 3C 1 E ED 0A F0 BB 4 9F
47 73C 91A AE8 8ED 0A F0 BB 44B B9F 306

3 91 E E 0 F B 44 9 3 E
3C C91 AE 8ED D0A AF0 0BB B44 B9F F30 06E 6B8
A 8 B 6
C9 91A E8 ED 0A F0B BB4 44B 9F3 306 6E6 B80 049
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473
1A E8 ED 0A F0B B4 4B 9F 306 E6 B8 049 473 C9
3 B 0
AE E8E ED0 0AF F0B B44 4B9 9F3 06E E6B 80 494 473C C91 1AE
8 D A 0 B B4 B F3 06 6 80 49 73 9 A 8E
E8 ED 0A F0 B 4B 9F 06 E6 B8 49 47 C9 1A E8 D
9
8
7
6
5
4
3
2
1
9
8
7
6
5
4
3
2
1
10
10
E 0 F BB 44 9 30 E B 04 4 3C 1 E ED 0A
ED D0A AF0 0BB 44B B9F F30 6E6 6B8 8049 947 73C 91A AE8 8ED 0A F0
B 4 6 3 9 B
68027
D0 0AF F0B B4 4B 9F3 306E E6B B80 0494 473 C91 1AE E8E ED0 0AF F0B B44
0 B 4 9 0 4 7 C D A 0 B
0A AF0 BB 44B B9F F30 6E6 6B8 8049 947 3C 91A AE8 8ED 0A F0B BB 44B B9F
F BB 44 9 30 6E B 04 4 3C 91 E ED 0A F0 B 44 9 30
assets.
F0 0BB 44B B9F F30 6E6 6B8 804 947 73C 91A AE8 8ED 0A F0 BB 44B B9F F306 6E6
BB 44 9 30 6E B 04 947 3C 91 E ED 0A F0 BB 44 9F 30 E B8
44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
F3 06E 6B 80 494 73 91 AE 8E D0 AF 0B 44 B9 F3 6E 6B 804 94 73C
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
B8 04 47 3C 1A E8 ED 0A F0 B 4B 9F 306 E6 B8 49 47 C9 1A E8
04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
73 9 AE 8E D0 AF 0B 4 B9 F3 6E 6B 80 94 73 91 AE 8E 0 F
C9 1A 8 D A 0B B4 4B F3 06 6 80 49 73 C9 A 8E D0 AF 0B
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473 C9 1A E8 D A 0B B4
a. 77 b. 75 c. 80 d.100
a. 18 b 19 c. 21 d. 9
E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 ED 0A F0B B4 4B
ED 0A F0 BB 44B 9F 30 E6 B8 049 47 3C 1A E8 ED 0A F0 B 4B 9F
0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED 0A F0B BB 44B 9F 306
F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
Going private is form of restructuring.

E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
EVA is decided on NOPAT of the company.

A new company is formed under_________
Page 1 of 5
Lease rent reduce the tax liability of the leasee.

One of objective of Take over is to reduce cost.
a. Operating b. Financial c. Leverage d. Domestic

a. Net assets b. Yield c. Relative d. Free cash flow
a. Leasee b. Leasor c. Seller d. None of the above.
MPBF refers to Minimum permissible bank finance.

a. Horizontal b Vertical c. Reverse d. Conglomerate.
Legal ownership of lease assets remain with _______
Q1A Fill in the Blanks with appropriate option (ANY 8)
Restructuring is the process of changing ___________

B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
(2 ½ Hours)
Combination of two or more company result into synergy.

Market value can be ascertained for unlisted company only.

06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
In Recourse Factoring risk of bad debts is born by the factor.

E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
a. Employee b. Shareholder c. Debenture holder d. Creditors
6E6B8049473C91AE8ED0AF0BB44B9F30
Accounting standard _____ Issued by ICAI deals with 'Lease'.
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Q1B State whether the following statement are True or False (ANY 7 )
In cross border lease the parties to lease are domiciled in __________
a. Absorption b. Reconstruction c. Amalgamation d. All of the above.

Paper / Subject Code: 85603 / Financial Management - III
Capital reduction is implemented as per Section ______ of Companies Act.

a. Same countries b. Different countries c. Same state d. None of the above.
In hire purchase ownership of assets is transfer immediately to hire purchaser.

a. Capital structure b. Staffing c. Organisation of business d. All of the above.

In _________ lease all risk attached to the assets ownership is transfer to leasee
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
Negative EVA means company is generating value from the funds invested in it.
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9
EVA is calculated to find out contribution of the organisation to wealth of ________
Marks : 75
B8 04 47 3C 1A E8 ED 0A F0 B 4B 9F 306 E6 B8 49 47 C9 1
________ takeover is takeover of one company by another company in same industry.
04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A

In _______valuation method , valuation of assets is derived from pricing of comparable
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91
73 9 AE 8E D0 AF 0B 4 B9 F3 6E 6B 80 94 73 91 AE
C9 1A 8 D A 0B B4 4B F3 06 6 80 49 73 C9 A
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473 C9 1A E8
E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 E
ED 0A F0 BB 44B 9F 30 E6 B8 049 47 3C 1A E8 ED
0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED
F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0
7
8
BB 44 9 30 6E B 04 947 3C 91 E ED 0A
44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F
F3 06E 6B 80 494 73 91 AE 8E D0 AF 0
06 6B 80 49 73 C9 A 8E D0 AF 0B
E6 8 49 47 C9 1A E8 D A 0B
B 0 4 3 1 E E 0 F
4 3C 1 E ED 0A F0 BB 4 9F
47 73C 91A AE8 8ED 0A F0 BB 44B B9F 306
3 91 E E 0 F B 44 9 3 E
A 8 B 6
C9 91A E8 ED 0A F0B BB4 44B 9F3 306 6E6 B80 049
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473
1A E8 ED 0A F0B B4 4B 9F 306 E6 B8 049 473 C9
3 B 0
8 D A 0 B B4 B F3 06 6 80 49 73 9 A 8E
E8 ED 0A F0 B 4B 9F 06 E6 B8 49 47 C9 1A E8 D
E 0 F BB 44 9 30 E B 04 4 3C 1 E ED 0A
B 4 6 3 9 B
68027
0 B 4 9 0 4 7 C D A 0 B
F BB 44 9 30 6E B 04 4 3C 91 E ED 0A F0 B 44 9 30
terms:
Liabilities
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
4. Tax rate
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
a) Intrinsic value
General Reserve
Sundry Creditors
04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED Profit & Loss A/c
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
2. Period of H.P
5. Salvage Value
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473 C9 1A E8 D A 0B B4 Provision for Taxation
Securities Premium A/c
50,000 Equity Shares of

Rs. 20 each fully paid up
1. Flat rate of interest

3. Cost of debt after tax

B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
For the year ended 31st March 2019

Machinery is valued at Rs. 6,37,200.
12%
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
30%
15%
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
Which option company should accept?

3 years
32,06,000
3,96,000
8,18,000
3,14,000
4,78,000
2,00,000
10,00,000

taxation for the last three years as follows:
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Page 2 of 5
and avoid bad debts at 1% on the credit sales.
Rs. 2,00,000
Stock

Amount Assets
6. Depreciation as per Straight Line Method

OR
Debtors
Furniture
b) Yield basis c) Fair Value

Machinery

Calculate the value of the Equity Share on the basis of
Cash at Bank
Cash in Hand

Rs. 7,85,000
Rs. 7,32,000
Rs. 5,44,000
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
rate of 15%. However its processing fee will be at 1% on the debt.


Amount

32,06,000
8,68,000
6,000
4,12,000
12,40,000
2,00,000
4,80,000
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
Q2A The following is the summarized Balance Sheet of V Ltd. as on 31st March 2019
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9
B8 04 47 3C 1A E8 ED 0A F0 B 4B 9F 306 E6 B8 49 47 C9 1
Rs 9,61,000. The Face value is Rs 10,00,000. Find out the return on commercial paper.

94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91
The company transfers 20% of its profits after tax to General Reserve. Net profits before
Average yield in the type of business is 20%. The rate of tax is 50%. Use simple average.
73 9 AE 8E D0 AF 0B 4 B9 F3 6E 6B 80 94 73 91 AE
C9 1A 8 D A 0B B4 4B F3 06 6 80 49 73 C9 A
E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 E
month to clear off the dues. A factoring company is willing to advance 80% of the bill raised
Ltd as a result of this arrangement is likely to save Rs 48,000 annually in management costs
A bank has come forward to make an advance equal to 80% of the debts at an annual interest
on credit for a fee of 1% a month plus a commission of 5% on the total amount of debt. Zenith
0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED
Q2P The turnover of Zenith Ltd is Rs 100 lakhs of which 72% is on credit. Debtors are allowed one 08
F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0
Q2Q Amar Finance Ltd offers a H. P proposal for a machine costing Rs 20,00,000 on the following 07
Q2B Mr. Ramesh has purchase the commercial paper of Tata company for 90 days in the market for 05
10
BB 44 9 30 6E B 04 947 3C 91 E ED 0A
44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F
F3 06E 6B 80 494 73 91 AE 8E D0 AF 0
06 6B 80 49 73 C9 A 8E D0 AF 0B
E6 8 49 47 C9 1A E8 D A 0B
B 0 4 3 1 E E 0 F
4 3C 1 E ED 0A F0 BB 4 9F
47 73C 91A AE8 8ED 0A F0 BB 44B B9F 306
3 91 E E 0 F B 44 9 3 E
A 8 B 6
C9 91A E8 ED 0A F0B BB4 44B 9F3 306 6E6 B80 049
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473
1A E8 ED 0A F0B B4 4B 9F 306 E6 B8 049 473 C9
3 B 0
8 D A 0 B B4 B F3 06 6 80 49 73 9 A 8E
E8 ED 0A F0 B 4B 9F 06 E6 B8 49 47 C9 1A E8 D
E 0 F BB 44 9 30 E B 04 4 3C 1 E ED 0A
B 4 6 3 9 B
68027
0 B 4 9 0 4 7 C D A 0 B
F BB 44 9 30 6E B 04 4 3C 91 E ED 0A F0 B 44 9 30
Tax rate
amount.
Creditors
Particulars
Liabilities
Debenture
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
D.F
Year
Rs 100 each.
Rs 100 each
agreed upon:
Bills Payable
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
1
35%
Cost of debt 15%
Cost of equity 18%
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Debt Equity ratio 1:4

0.893
Capital emp 1000 cr

1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473 C9 1A E8 D A 0B B4 8000, Equity shares of
2
0.797

Amount
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
Balance sheet after reconstruction.

3

06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
7. P.V of Rs 1 at 12% as follows
EBIT (operating profit) Rs 300 crores

E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
0.712
26,40,000
Find out the present value of cash outflow.
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Q3B Calculate EVA from following information

Page 3 of 5
Assets

13,80,000 Debtors
OR
Inventory

4,50,000 Investment

8,00,000 Fixed Assets
10,000 Cash & Bank

B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
Profit & Loss account
4. The assets are to be reduced to the revalued figure as follows

94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Q3A The Balance sheet of Ajay ltd as on 31st December 2019 given as follows.

Amount
26,40,000
10,70,000
13,000
17,000
30,000
80,000
14,30,000
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9
B8 04 47 3C 1A E8 ED 0A F0 B 4B 9F 306 E6 B8 49 47 C9 1
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91
73 9 AE 8E D0 AF 0B 4 B9 F3 6E 6B 80 94 73 91 AE
C9 1A 8 D A 0B B4 4B F3 06 6 80 49 73 C9 A
Fixed Assets Rs 11,00,000 , Inventory Rs 50,000 , Debtors Rs 20,000, Investment Rs 7,000
1. The equity shares are prepared to have their claims reduced to 5% of their present holding.
E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 E
3. Creditors are prepared to forgo 20% of their dues in exchange for equity shares of like
Give the journal entire for the completion of the scheme, prepare Capital reduction account and
half by the issue of 7% mortgage debentures and half by the issue of 8% preference shares of
The company being in a bad way, an arrangement on the following lines has been mutually
2. The debenture holders are agree to have their claims reduced to 50% which is to be satisfied
0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED
F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0
05
10
BB 44 9 30 6E B 04 947 3C 91 E ED 0A
44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F
F3 06E 6B 80 494 73 91 AE 8E D0 AF 0
06 6B 80 49 73 C9 A 8E D0 AF 0B
E6 8 49 47 C9 1A E8 D A 0B
B 0 4 3 1 E E 0 F
4 3C 1 E ED 0A F0 BB 4 9F
47 73C 91A AE8 8ED 0A F0 BB 44B B9F 306
3 91 E E 0 F B 44 9 3 E
A 8 B 6
C9 91A E8 ED 0A F0B BB4 44B 9F3 306 6E6 B80 049
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473
1A E8 ED 0A F0B B4 4B 9F 306 E6 B8 049 473 C9
3 B 0
8 D A 0 B B4 B F3 06 6 80 49 73 9 A 8E
E8 ED 0A F0 B 4B 9F 06 E6 B8 49 47 C9 1A E8 D
E 0 F BB 44 9 30 E B 04 4 3C 1 E ED 0A
B 4 6 3 9 B
68027
0 B 4 9 0 4 7 C D A 0 B
F BB 44 9 30 6E B 04 4 3C 91 E ED 0A F0 B 44 9 30
EAT
EBT
Sales
EBIT
P/E ratio
Creditors
-Tax 30%
Particulars
Liabilities
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
Particulars
Bills payable
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
10 % Bank loan
-Interest on loan
Number of shares
04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED Market price (Rs)
Reserve & surplus

94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Equity share capital

-Cost of production
Earning after tax (Rs)
Other current liabilities

2. What will be EPS after merger?
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
B

35
10
recommended by Tandon committee

06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
Lakhs
655
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
4,00,000
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
14,00,000
50 Stock
Page 4 of 5
Rs in Assets
1. What is existing EPS of both the companies?
150 Debtors
Income statement for year ended 31st March 2019

5 Cash in hand
4. Determine the market value of share after merger?
25 Bank balance
10
447
A
1043
1490
1500
4500
6000
35
14
300 Land & Building

B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
125 Plant and machinery
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
8,00,000
20,00,000

94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
5. Ascertain the gain accruing to the shareholders of both the firm?
3. What is the change in EPS for the shareholder of A ltd and B ltd?
Amount in lakhs

Lakhs
Rs in
655
50
125
100
150
225
Q4B XYZ ltd is engaged in textile business. The income statement is given below
Q3P You have been provided the following financial statement of two companies.
Q4 A Following is the Estimated Balance Sheet of XYZ Ltd as on 31st March 2019

B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
ltd share. The exchange ratio is based on market price of share of two companies.

06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9
B8 04 47 3C 1A E8 ED 0A F0 B 4B 9F 306 E6 B8 49 47 C9 1
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91
73 9 AE 8E D0 AF 0B 4 B9 F3 6E 6B 80 94 73 91 AE
C9 1A 8 D A 0B B4 4B F3 06 6 80 49 73 C9 A
A ltd is intending to acquire B ltd. Exchanging its share on one for one basic for company B
E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 E
From the above balance sheet calculated the MPBF as per first and second method of lending
0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED
F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0
10
05
15
BB 44 9 30 6E B 04 947 3C 91 E ED 0A
44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F
F3 06E 6B 80 494 73 91 AE 8E D0 AF 0
06 6B 80 49 73 C9 A 8E D0 AF 0B
E6 8 49 47 C9 1A E8 D A 0B
B 0 4 3 1 E E 0 F
4 3C 1 E ED 0A F0 BB 4 9F
47 73C 91A AE8 8ED 0A F0 BB 44B B9F 306
3 91 E E 0 F B 44 9 3 E
A 8 B 6
C9 91A E8 ED 0A F0B BB4 44B 9F3 306 6E6 B80 049
1A E8 ED 0A F0B B4 4B 9F 06 E6 B8 49 473
1A E8 ED 0A F0B B4 4B 9F 306 E6 B8 049 473 C9
3 B 0
8 D A 0 B B4 B F3 06 6 80 49 73 9 A 8E
E8 ED 0A F0 B 4B 9F 06 E6 B8 49 47 C9 1A E8 D
E 0 F BB 44 9 30 E B 04 4 3C 1 E ED 0A
B 4 6 3 9 B
68027
0 B 4 9 0 4 7 C D A 0 B
F BB 44 9 30 6E B 04 4 3C 91 E ED 0A F0 B 44 9 30
Calculate
Creditors
Liabilities
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
4. EVA
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
10% Bank loan
Reserve & surplus
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Equity share capita
Q5A Answer the following

1. The value of firm

2. Types of takeover
1. Types of factoring
Q5 B Write Short Notes (Any Three)

3. Feature of lease financing

50
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
500
100
150
200

2. EVA
Lakhs
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
5. Sources of working capital finance

94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
Page 5 of 5
Stock
Rs in Assets
Debtors
OR
OR
the machine. The company is in 40% tax bracket.
Balance sheet as on 31/03/2019
Cast at bank
rent of Rs 1,10,000 is to be paid at the end of the year.

3. MVA
1. What are the benefits of merger & acquisition?
----------------------------
Land & Building
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73 91
Plant and Machinery
2. What is difference between Hire purchase and Lease?

E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9 A
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91 E ED 0A
25
75

500
100
200
100
The weighted average cost of capital is 15% and has P/E ratio of 6 times
Rs in
Lakhs


B9 F3 6E 6B 80 94 3C 91 E 8E 0 F BB 44 B9 30 6E B 04 94
Advise the company which option should go for if internal rate of return is 12%.

06 6B 80 49 73 C9 A 8E D0 AF 0B B4 B F3 06 6B 80 94 73
E6 8 49 47 C9 1A E8 D A 0B B4 4B 9F 06 E6 80 49 73 C9
B8 04 47 3C 1A E8 ED 0A F0 B 4B 9F 306 E6 B8 49 47 C9 1
94 3C 91 E 8E 0 F BB 44 9 30 6E B 04 94 3C 91
73 9 AE 8E D0 AF 0B 4 B9 F3 6E 6B 80 94 73 91 AE
C9 1A 8 D A 0B B4 4B F3 06 6 80 49 73 C9 A
E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 E
12 % five year loan where installment are same. Each installment becoming due at the end of
either acquire the machine to the leasing arrangement or it can borrow money at 12 % to buy
In case of purchasing the machine which cost Rs 3,60,477 .The company would have to repay
each year . Machine would be depreciate on straight line basic with no salvage value. Lease
0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED
F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0
15
7
8
Q4 P ABL ltd is planning to have an access to a machine for a period of five years. The company can 15
BB 44 9 30 6E B 04 947 3C 91 E ED 0A
44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A
B9 F3 6E 6B 80 94 3C 91 E 8E 0 F
F3 06E 6B 80 494 73 91 AE 8E D0 AF 0
06 6B 80 49 73 C9 A 8E D0 AF 0B
E6 8 49 47 C9 1A E8 D A 0B
B 0 4 3 1 E E 0 F

(2 Hours) Marks: 75: Q1A Fill in The Blanks With Appropriate Option (ANY 8) 8

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4 3C 1 E ED 0A F0 BB 4 9F

47 73C 91A AE8 8ED 0A F0 BB 44B B9F 306

Going private is form of restructuring.

EVA is decided on NOPAT of the company.

Lease rent reduce the tax liability of the leasee.

a. Operating b. Financial c. Leverage d. Domestic

MPBF refers to Minimum permissible bank finance.

44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04

Combination of two or more company result into synergy.

Market value can be ascertained for unlisted company only.

In Recourse Factoring risk of bad debts is born by the factor.

E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 ED 0A F0B B4 4B

Capital reduction is implemented as per Section ______ of Companies Act.

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

In hire purchase ownership of assets is transfer immediately to hire purchaser.

44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04

04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A

E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 ED 0A F0B B4 4B

1. Flat rate of interest

3. Cost of debt after tax

For the year ended 31st March 2019

Machinery is valued at Rs. 6,37,200.

Which option company should accept?

04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED

E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 ED 0A F0B B4 4B

6. Depreciation as per Straight Line Method

0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED 0A F0B BB 44B 9F 306

b) Yield basis c) Fair Value

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04

rate of 15%. However its processing fee will be at 1% on the debt.

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04

04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0

04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED

Debt Equity ratio 1:4

Capital emp 1000 cr

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

Balance sheet after reconstruction.

F3 06E 6B 80 494 73 91 AE 8E D0 AF 0B 44 B9 F3 6E 6B 804 94 73C

EBIT (operating profit) Rs 300 crores

Q3B Calculate EVA from following information

E8 ED 0A F0 B 4B 9F 306 E6 B8 049 47 C9 1A E8 ED 0A F0B B4 4B

0A F0 BB 44B 9F 30 6E6 B8 049 47 3C 91A E8 ED 0A F0B BB 44B 9F 306

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04

4. The assets are to be reduced to the revalued figure as follows

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED Market price (Rs)

Reserve & surplus

Equity share capital

Other current liabilities

F3 06E 6B 80 494 73 91 AE 8E D0 AF 0B 44 B9 F3 6E 6B 804 94 73C

recommended by Tandon committee

Income statement for year ended 31st March 2019

300 Land & Building

04 947 3C 91A E ED 0A F0 BB 44B 9F 30 E6 B8 04 47 3C 1A E8 ED

F0 BB 44B 9F 30 6E6 B8 04 47 3C 91A E8 ED 0A F0 B 44B 9F 306 E6

44 B9 F30 6E 6B 804 947 3C 91A AE 8ED 0A F0 BB 44 B9F 30 6E6 6B8 04

F3 06E 6B 80 494 73 91 AE 8E D0 AF 0B 44 B9 F3 6E 6B 804 94 73C

Q5A Answer the following

1. The value of firm