C ( ·t JN ｅ ｘａｍ ｾ Ｒ ｾ ＰＱＸ＠ fqq);;q DETACHABL E

EilfUI'ltt ｾ＠ cl& lfitttf ＨｾＭｴｲｮＧ＠ I)

COM U:RCE AND ａｃ ｾ ｏｕｎｔ＠ CY (Paper l)

ｾｴｦｵｬ＠ ｾＺ＠ m ｾ＠ dl"ftli:fiHij 3i1fi ; 250·

Time Allowed ; Three: Hom'$ Max.irmun ｍ｡ｲｾ ｾ＠ 250

ｾＭ＠ fltaitll ｾ＠ ｾ＠
ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ if ｾ＠ ｦｩａｾｒ､＠ ｾ＠ ｾ＠ lfit ｾｬｴＧｫｨ＠ q :
ｾ＠ mo ｾ＠ ｾ＠ ｾ＠ ｾ＠ i1 ｴｬ ｴｩｬ ｾ ｴ ｩｪ＠ Ｇｾ ｦｖ｣ｴ＠ ｡ｦｴ｜ ｾ ｾ＠ 'ij iR f 1

ｱ ｡ｾ Ｑ Ｎ ｾｬ ｭ ｭｾ＠ 1

Jrffl Wm 1 am s ＳＱｍｱ ｬ ｾ＠ ｾ＠ ｾ＠ ｾ＠ 1t Ｇﾫｾ｀ｉｓ＠ t ｃｦｩｬＭｴｾ＠ ｾ＠ Ｇｒｾ＠ ｾ＠ ｾ＠ ｾ＠

ｭｴｾ＠
ｾＯｭｲｔ＠ ｡ｦｩｰｾ ｾ ｾｬ＠
m ｾ＠ 4ffi: ldlit 1l1tWr it ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｲｮ Ｍ ｾ＠ ｾｴ＠ ｾ＠ 1NT -wl ｾ＠ ｾ＠
ｬｦｾ＠ W ｾ＠ ｾ＠ ｖａ Ｍ ｗＭｾ＠ ｻｾＧｴｲＮｬ［Ｉ＠ 9;f@&il ｾ＠ ｾＭ＠ ｾ＠ FdU ｾ＠ f.R tfnm ｾ＠
ｾ＠ I ｾｦｴｱ＠ ｾ＠ ｾ＠ Jtkif$ ｾ＠ fchm ｾ＠ ｾ＠ fffi} ｾ｜ｦｩｒ＠ ｾ＠ 'Uff ｾ＠ I

ｾＭｩｦ＠ "flhrr. ｾ＠ MDI[(e ｾＬ＠ C6J 3tje<o, 1%tn ｾ＠ ｾ＠ 1

ｾ ｾ｜＠ 'dtattSiti ｾ｣ｑｦｊＡｬｻ Ｌ＠ ｾｉ＠
m-;11 ｾ＠ ｾ ﾷ＠ ｾ＠ 1MiTI Siilil jEII{ ｾ＠ ｾ＠ I ｾ＠ ｾ＠ ｾ＠ lt, tiT ｾ＠ ｾ＠ ｾ＠ ｾ＠ lfD1ilf ｾ＠ ｾ＠
ｾ＠ ｾ＠ ｾ＠ :m10: ｾ＠ 'tm m,ｗｖｊＭｾ＠ ｾＪＧ ｃｦｬ ＠ lf ｾ＠ ｾ＠ ｾ＠ ｾ＠ llT ｾ＠ ｡ｲｾｴ＠ ｾ＠ ｾ＠
ｾＭＺ［ｷｲ＠ I
QUESTION PAPER SPECIFIC INSTRUCTION S
Please. read each of tbc foUo·w ing in ｢ｲｬｾｴｯｮｳ＠ ｾｯｲ･Ｎｦｵｬｹ＠ before attempting questions :
There arc EIGHT questions divided in TWO SFJCTJONS and printQd both in II.INnl and in
lEN GUSH.
ｃ ｡ｴｾ､ ｩ､｡ ｴ ･＠ has to attempt FJVF. questions in a11.
Questions No. 1 and 5 :uc compulsocy ::md CJUt. <.>f lhe remaining, any THREE are to be
attempted cl:loosing at least 0 E question from each ｳｯ｣ｴｩｾＮ＠
The number or ｭｾｲｫｳ＠ canied by a question/part is indicatod against iL
Answers muNl ｢ ｾ＠ written in the mOOrium authorimd in the Admir..sion Certificate which musL
be stated clearly on the cover of this ｑｵ･ｓｾｬｩｯｮＭ｣ｭ Ｍ ａｮｳｷ･ｲ＠ (QCA) Booklet in Lbe· space
provid-ed. o marks will be given for answers wntten in a mc::di'u:m olher than the authorized
1

one.
Word lim it in que:itions, whorevr;r peci tied, should be adhered to.
Assume ｾＧｕｩｴ｡｢ｬ＠ dam, if ｣ｯ ｮ ｳｩ､ｾ ･Ｎ､＠ 11:1ec:essary. 0111d indicate the same c'learly.
ａｴ｣ｭｰ ＠ ｌｾ of questions sball be counted in sequcntia1 ordt:f". Unless muck off. altcmpt of a
question shall be counled even if attempted partly. Any page or portion uf tile page left b1ank
in the Qucstmn-cum-AP!lWer Booklet must be clearly struck off.

1 EGT-P-COlviA
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 (§010\$ A' S CTION 'A'
1. -ij ｾ＠ ｾ＠
P,;;;;Pt Ps{l ｾ＠ CF.T ｾ＠ 1.. 0 ｾ＠
(i"tf'f111 -ij ｾ＠ ｾ＠
Answer the following in about ｾＵＰ＠ words each ｾ＠ 1Ox5=50

l.(a) ｾｦＨＬ ｕｻ ｉ＠ liFtcN ｾ＠ ｦｬＦｩｾ＠ ｾ＠ ｾ＠ ｾ＠ ｴＱＺｒ ｉ ｾ＠ I ｾ＠ ＳＱｃｴｾ Ｔｃｦｩ ＧｴＱ Ｑ＠ ｾ＠ ｾ＠ t ?

.E plain lhe concept and nature of accountin g standards. Why arc these needed 1
10

L(b) ｾ＠ Ｍ ｾ＠ 'd't ｾ＠ ｑｩ ｾ｣ｨｬ＠ f'ioill'1 if ｾ＠ ｾＱｊｬ＠ ? ｾ＠ ｦ｣ｬｩｾ､ ｬ ｡ｩｬ＠ W ｾｰｊｱ＠ it

·a +=1 ｭｾ｡＠ 1
What are the costs used in manageria l decision·mHking '? .ExplainT in brief, their
dwractsristics. I0

l.{c) JHl1CfY( ｾ＠ ｾ＠ 3Rfikl, ｾ＠ "ttv"'l;:q d: 31Ptiiid\' ｾ＠ q;r ｾ＠ <fir ｾ Ｑ ＱｩＢＴ＠ ｾ＠

ｾｍｩｬｴＧｭ＠ ｾ＠ it f$6 ｾ＠ flr?r ｾ＠ ｾ＠ ?
In wbat way does the liability of tax of a Hnot ordJnarily resident' .. person differ from
tl1at of a .. residentn person under the ｬｮ｣ｯｭｾ＠ Tax Act ? 10

l.(d) uro 35 D ｾ＠ 35 E ｾ＠ 31o:(1'4 Rf, ＼ＦＮｾ＠ ｾ＠ ｾ＠

Efif ｾ＠ 34Hcw:f ｾ＠ a-€JICfitPJT 1R
ｾ＠ SUCitiHl qq ｦｮｴＤｵｾ＠ I
Explain the major provisions. of ｾ ｣ｯｭｰｵｬｳｲｹ＠ lax audit for claiming deduction under
section 35 D and 35 E. 10

1.(e) ｾ＠ \Mll&;(or ｾ＠ SICftlq'f cit mtq it ｦｬｩｾ［ｱ＠ I

Exr.,l ain. in brieft the functions of cost accowlting. 10

＼ＺｬｾＨＧｩ＠ Ｓｬ ｬ ｾｱ ｩ＠ ｾ＠

20,000 {ff.Mll ｾ＠ ＲＰＬｾ＠ ｾｧｦＴＨＱ＠ 25,000

Ｈｭｾ＠ 100) ｾｶＺｦＧｩｪｱｲ＠ 1750.000
ｾ＠ ｾ＠ ｬｦｾＮｲｴ＠ 3,00 000
12% r%4=« 5,00,000
t£f;f=q< 80,000
ｾ＠ ＲＬＷＰｾ＠
＠ｾ 60.000
ｾｩｓＡ＼＠ 1,20,000
fq; ｩｴｾ＠ 35,000
Ｂａｦｴｲｾ＠ ｾ＠ 20,000
ｾ［］ｪｇｈ＠ 3.00.000
"flTij ｾ＠ ｾ＠ 7.mil 19,80,000
. 29,20,000 29,20.000

EGT-P-COMA 2
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 (0 ｾｩＧｦｱｬＩ＠ ＠ｾ -wffi iPR ｾＹＵ＠ -6" ｾ＠ ｾ＠ ｾ＠ t I ｾ＠ ':Jffffi ｾ＠ ｾ＠ ｾ＠ ｾ＠
ｾＱＰ＠ it 10.000 Ｇｾｩｴ＠ iFRl it ｾ＠ firnl \if1'm t I

(u) ｦｩ､［ｱ＼ｾｲＨｴ＠ ＠ｾ ｾ＠ ＠ｾ Wl':lf 'ifi)' ｔｦｬｾ＠ ｾ＠ lift+fd ｾ＠ ｾ＠ 1 !;!ru'"iJ& ｾ＠ ｾ＠

it, 12% ｦｩ Ｎ ｾ＼＠ ｾ＠ 1.4o/o ｾ［ｲＨ＠ 1t ttf«tkfu ｾ＠ ｾ＠ ｾ＠ ｾＮ＠ ｾｳｪｯ＠ ｾ＠ ｾ＠
ｾ ｉ＠

<m>
ｾ＠
ｦｬＧｾｭ＠
ｾｩＦｴ
ｾ＠ ｾ＠
ｬ ﾷ ｾ＠ ｾ
·rqctiW
ﾷ ｡ｭｾ
ｾ＠ ｾ＠ t ｾ＠ -qf * ﾷ ｾ＠
ｾ＠ ｾ＠
<-srnt oo ｾｴｯＩ＠
-zyij ｾ＠ ｾ＠ ｾＴｴ､
1t q'R4Rm ｾ＠
ｬ ｬＱ＠ if ｳｯｾ＠

'H I ＧＭＢＲｾＰ ＬＰ＠ '$ ｾｩｈ＠ ｡ｾ＠ GTiit ｾ＠ ｾ＠ ｾ＠ ｾ＠ tm ｾ ｾ＠ ｾ＠ ｾ ｾ＠ I

(iv) \FT iiotG.t<1 ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾｲ｀＠ ｾ＠ ,'1riWJ 'll'T ｾＴｩｬＢＧｴ＠ ¥fT t ｾ＠ ｾｦｵ［ｲ＠

ｾ＠ ｾ＠ ｩｬ ＼Ｚｱｩ ｬ ｾ＠ '$ ｾ＠ ｃｦｩｗｾ＠ ｾ＠ ｾ＠ lR ＵＰｾ＠ ｾＸ＠ ｾ＠ Ｈｾ＠ ｾ＠ 10) CJit
frr4firn - at t, ｾ＠ ｾ＠ ｾ＠ ｾＺｴｬ､＠ ｾ＠ 'R ﾷ ｾ＠ l ｉ ｾ＠ ｦｲｴＴｬｾ＠ ｾ＠ Ｓ ｾ＠
1m I

(v) ｾ＠ ＠ｾ ｾ＠ q;r ｾＲ ＬＰ Ｎ Ｐ＠ 'lt: Ａｊｾｉｩｍ＠ -Rwn -;;;nm t "GN ｾ＠ ｭｾ＠ ｾ ﾷ＠ ｾ＠ ｾ＠

ｾＲ＠ 10,000 it.1: ｾ＠ \iffiff t' I tifG4tt ｾ＠ ｾ＠ ｾ＠ 5..000 qrr ｾ＠ ｾ＠ i:iliffil t: I
ｯ ｕｩＱｾｨ＠ ｾ＠ Ａ＾ ｍｾ＼ｦｬ＠ iflfGrtt ·aliT ｾｬｩｲｮｦ｡ｴ＠ ｾ＠ ｾ＠ ｱｾ＠ &fAJH1 'fil ¥rJ 'Q:f ｾ＠
ｾｉ＠

The fono,.villlg is the Balance Sheet of XYZ Ltd. aa at 3 15t March 20 l 7.

Liabilities ｾ＠ Assets if

ＲＰｾ＠ Equity shares 20.00"000 Goodwill 25,000

of ｾＱＰ＠ each L:md & Buildmgs 1,50,000
Plant .& Machinery 3.00,000
llo/o Debenture 5,00,000 F\lllliture 80,000
Stoc·k: 2,70,000
Outstanding
debentures ｩ ｮＮ ｴ ･ｮＺｾＮｳｬ＠ 1.20.000 Debtors 60,000
Cash at Bank 35!000
Creditors ＳｾＰＬ＠ Pre!im;nm-y expenses 20,000
Profit & U,ss Ale. ＱＹｾＸＰ｝＠

2-9,20,000 ＲＹｾＰ ｽ Ｐ＠

3
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 The following is the .schetne of reconstructio n :

(i) quity shares are reduced by 95 per share . They are. fhen. consolidated into
10.,000 equity ｳ｢｡ｮｾ＠ ｯｦｾ＠ 10 each.

(ii), Debenture holders agree 'to forego outstanding debenture interest As a

compensation, 12% debentures are conv,erted into 14% debentures, the amount
remaining ｾ＠ • .00,000.

(iii) Creditors are given the option to either accept 500/o of their claim in cash in fUll
settlcnnent or to convert their claim into equity shares ｯｦｾ＠ 10 each. Cnlditors
for ｾＲ ＬＰ ＰＬ＠ op,t for sbar.cs in satisfaction of lheir d aims.

(L\') To make payment to "'Teditors opting for cash paymm1t and to augment working
cap1tat the con1pany iss_ues 50.000, equ1ty shares ｯｦｾ＠ 10 each at par the ｾ ･ｮｴｩｲ＠
amount being payable along with applications. The tssue was fully .subscribed,

( ) Land and Buildings are revalued at v2.00,000 whereas plant and machinery is
to be written down to 2. ]0 000. A provision amounting to - 5,000 is to be
made for doubtful debts.

Pass necessary jownal entries and prepare the compa_ny s balance sheet immediately
1

after the reconstruction. 20

2.(b) ﾷ ｾ＠ <ifiU1rf1 Ef1l ｾ＠ cfR ｾｩｴ＠ -6- ｾ ｉ＠ ＧｻＴｩ ﾷ ｉｍｾｩｬ＠ ｾ＠ -R

ｾ＠ qar ｾ＠ ｾ＠ f$ ｾ＠ SI&AI lr flt¥l l<"ll ｾ＠ ＨｾＩ＠ ｾ＠ ｾ＠

ｾ＠ ｾ＠ ｾ＠ tllf ｾ＠ lflJ
. ﾷ ｾＨａＩ＠ 2%, 25 ｾ＠ Jfftr ｾ＠
:it (B) 4% ＵＰｾ＠
m(C) 2·5% Ｖｯｾｭ＠

ｾｱ＼Ｚｏｉ＠ ｍｦ［ｬＱｾ＠ ｬ｀Ｎｩｾ＠ 'mf.lfit

{i lli il"l 12t000 Ｑ Ｐｾ＠ 9,000
)RlffS l)J1i 16,000 5.000 4,900
ｾ＠ 2,000 3,.400 3,590
｡ｒｾｃｩｱ＼ｦ＠ 3 500 ＲｾＰＵ＠ 2 004

4
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 -mnr:r ｾ＠
ｾ＠
....
］［ＺｾｲＮｴ＼ｪｦｔＧ＠
*w
C:r::l"'l
13,560 ｾ＠
w:nR qr
ｾ＠
ｾ＠
% !lli(fil(ti l?tJ it 4.000 ｾｃｦｩ ｬ ｾｩ＠ ｾ＠ ｾ＠ ｾ＠ I ｾ＠ ｾ＠

ｾ＠ ］Ｓ ｻＢｱｾ＠

...
ｾ＠ 3.850 ＤＱｅｨｬｾＧ＠ I
__l,
"iff 3 ,600 !R! 11'1 1
lit :tsoo ｬＡ［ｱｩｾｦ＠
ｾ＠ ?§lit· ｩ ｈｉ ｾ＠ lzyi tl1t 'ifi 41k1 ｾ＠ "f41 ｾ＠ ｾ＠ ｾ＠ 200./o ｾ＠ 1I1m ｾ＠ ｾＬ＠ ｾ＠
ｾ＠ ｾ＠ ｾ＠ Ｂ｡ＧｾＱ､＠ ｾ＠ ｾ＠ f<Rirn mII 15

The product of a rompany passes through three distinct processes to completion.

From past ｯｸｰ｣ｲｩｮｾＬ＠ it js ascertained tbat the normal wastage in each process is
as under ;

Process \Vastage· Sa]e value of wastage

A 2% 25 paise per uoj l

B 4% 50 paise per unit
c 2·5% 60 paise per urut

The expenses were as fo] lows ::

Particulars Process A Prooess. B Process C

Materials .1.2;000 ＱＰ ｾＰ＠ ＹｾＰ＠

Direct fabour 16t000 5.000 4,900
Manufacturing expenses 2,000 3.400 3 590
Other factory expenses 3,50Q 2,005 2,004

4,000 units were ·initiaJ ly introducecl in process A at a cost of ｾ＠ t 3..560. The output
of each ｰ ｲｯ｣･ｳ ｾ＠ was as undeT :

Process Ou.tput

A ＳｾＸＵＰ＠ unics
B 3,600 unii.S
c 3t500 units

Prepare process accounts and also work out the sale price per unit of finished stock
so as to reaJize 20% pmflt on selling price. 15

5
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 ｾ＠ c€t Cf.(i ｾ＠ il Ｓｦｾｗｩ＠ ｾ＠ c6t 3lR ｾ＠ ｾ＠ ｾ＠ ｾ＠ q;l ｾｲｗｭＭ ｾ＠ ｾ＠ ｾ＠
Z.(c)
ｾＷ＠
-·
\Vhat are the provisions of ·iuclusmn of the moome of a minoT child and the wife of
an assessee in h1s total mcome ? 15

&1''4R if ｾ＠ 3llll1

'ffOI'•tsl '$' ｾｦｻＨｏｉ＠ ｾ＠ ｾＱｊｬＧ＠ t""•IH m'l1

Ｈｾ＠ fcr.fr ｾ＠ ..｡ｾ＠ ｾ＠ ｴＴｾＱ＠ ｯｾｭ＠ ｾ＠ ｾｽ＠

ｴｩｦｬｾｏｇＺ＠ Ｎｶｦｴｾ＠ｭ ｍｾ ｩ ｴＱ＼ＰＧ＠

ｾ＠ ｾ＠ ｾｑｊＴｩｬｴｦａ＠ ｾ＠ ｾ＠
(ｾ ＬＮ ｧｦｬ＠ M ｾ＠ G11G 1f!llifT)
Ｈｾ＠ m ｾＲＬＵＰ＠ q:iT 20% *' ｾ＠ -R 16( 3IGT ｾ＠ ｾ＠ ':t fcfi
6 00000 w 10%. ｾｩｦＩ＠ 2tSO,OOO

ｾ＠ ｾ＠ v:'li, M«Cfif ｾ＠ ｾ＠ t, ｾ＠ 1rrn 3lFl Cfir w 82,000

m« ｾＭ｡＠ (3oP/G ｩｲｴｾ＠ ｾ＠ ｾＩ＠ 70,000

ｾ＼ｴｩＺ＠
Ｍ ｾＷｴｩＧｇｦｭ＠ 1' 17,000
- ＧＴｴｳｕｾ＠ ｾ＠ ｾ＠ ｾ＠ IA50
- Ｂｩｬｾ ｴ ｬ ｬｦ ｐｉ＠ ｾ＠ i1l1i 8,000
- 1111fa•1 ［･ ｦｩＴｱｬ ｾ､＠ ｾ＠ ｾ＠ ｾ＠ 70,000

3I1Trt 67 ｾ＠ ｾ＠ ｾ＠ ｾ＠ ?Jf:g<h<"l Mfit;ee• 1R ｾ＠ 11UT C!flf

Ｈｾ＠ "'« ｾ＠ ｾｃＴｩＱ＠ arftn) 8,000

ｾ＠
ii11W141
ｾ
ｾ＠
ﾷ＠ qrqffi Ｈｾ＠
* ｾ＠ ir
ｾ＠
to11Mi ｾ＠
ｾＭ＠
* ｾ＠
ｾｉｌＱｊｩｲ＠
Ｇｅｩｾｲ Ｑ＠ ｾ＠
ＳＱｾｴ
ｾ＠
Ｌ ｩｴ＠ ｾ＠
ｾ＠
'ft.ltt 1ftr
t}
ｾ ｱ＠ gffi ｾ＠ '« "Qt1T\if CliT !11'1 ffi't
ｩ､ｱｾ＠ ｾ＠ emftf lfMPf qi) ｾ＠

ｾ＠ ｾ＠ 2014-15 lt ｾ＠ ｾ＠ ｾ＠ ｏｑｱｾｗＺｴ＠ "« 3BHmq wA

'tcttiii< 10, 2017 cR ｾ＠ ｾ＠ ｾ＠ 'l L,IS,OOO it ｃｦｬｴＱ Ｑｴｩｾ＠ ｾ＠ CfiT ｾ＠
＼ｾ ﾷ＠ ｾ＠ ｾ＠ ｾ＠ ｾ ＱＮＷ Ｐ Ｌ Ｐ＠ t) 1, Ｑ Ｕ ｾＰｕｏ＠

m ｾ＠ ｾ＠ "tfl"ffJ iT QJf{Tｾ＠ ｾ＠ ｾ＠ m- rx ｾ＠ ｾ＠ SFi1:f t.63.000

EGT-P-COMA 6
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 C.om.pute the mxahie tnoome of X {40 years) {OT the assessment year 20 18- 19.
'f
Net income from trndmg ｢ｵｳｩｮｾＮ＠ 8,00.000
Lo.ng-t.cm1 capital gain transfer of dclJentures
·OD
(if computed without inde;t:ation)> -6,00,000
Long-term capita] gain on transt<:r of listed debentures
(cotnputed after indexation) (X wants to pay tax at the Tate of
20% of ｾＲ＠ 50!000 and not at the rate of ]0% of ｾＶ ｾ Ｐ＠ 000) 2,50,000
Share of incorne from HUF in which he is a member 82,000
\V-inning from horse races (net of TDS of 30 JXJr cent) 70.000
Interest om1 bank fixed deposits :
- DeposLt in. his own name l ; l 7,000
- In the name of minor son l ,450
- In the ame of minor dal!.lghter 8;000
- In lhe: nat:nc of maj ot unmarried daughter 70,000
!Expenditure incWTcdl fo:r medical treatment of his 67 years
old elder brother (dependent or X. bei"rJ g a penon with disability) 8,000
Repayment of loao taken for patt-time studies. of
major da11..11ghter for graduate: Col.ll:'Sc im. managenmnl
(loan is taken from a notified cbarhable institute) Ｖ＿ＹＰｊｾｏ＠

Poymt..."tlt of interest from tbe aforesaid loan 76JJOO

DoiJation to l:bc aforesaid nottfied chruitabJo institute 51000
ｂ ｾ ｯｵｧｨｴ＠
forward Joss of a discontinued b 1siness
pertaining to the assessment year ＲＰＮｾＴＭｬＵ＠ 26.000
Pl!lfcbase of a work of art on November 10.. 2017 from a friend
for ＱＬ Ｑ ＵｾＰ＠ (market va1uo is; howcve£) l. 70,000) 1,15,000
Deposit in Public Provident Fund accou.n.t and purchase of
NSC IX issue ＱＬＶＳｾＰ＠

25

J.(b) ｾ＠ ｾ＠ ｾ＠ ｾ＠ 1t \ToT ﾷ ｾｭ＠ w ｡ｷＱｾＲｴ＠ ｾ＠ ｾ＠ rtnrr'itl c;rrrrr ｾ＠ Pt!li<o• % ｾ＠

ｾ＠ ｾ＠ ｾ＠ t 1 4l"AI41 ｾ＠ ｾｮ＠ ｾ＠ ｾ Ｑ Ｑ ＰＱＧ＠ -t ｾ＠ it ｾ＠ ｷｾ＠ ｾ Ｍ
ｾｩｻＱ＠ ?
State Uae points lo be considered v/bile determining div1sible profits in ease of a
company. ｾ Ｇ ｨ｡ｴ＠ are the ｡ｵ､ｩｾｯｲ＠ 's duties in fegard to payment of dividends by a
company '? 15

7
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 ﾷ＠ ｦｬｲｱｾｯ＠ ｾ＠ ｾ＠ ｾ＠ SfWIIofl "iil) ｾ＠ it
Ｑ
J.{c) ｾ＠ ｾ it '' ij ((ffl'l mtiCMUI JiH<fi1

ｾｐｈｉ＠ I
E in bdef, the rnain provisions of lndian Accou_nting Standards regard]ng ｰｾ｡ｭＬ＠
cash flow statement. I0

ｾＨＩ＠ ｾ＠ \ifJIT ＨｾＩ＠ ｾ＠

ｾ＠ ＳＰｾＷＲ ｾ ＨＱＩ＠ ｾ ｔ＠ ｾ＠ ( 4,00,000 40,00,000

ｾ＠ 1'fci ＱｾｦｩＰｵ＠ 33 00,000 ｾ＠ ｾＱＰＩ＠
ｾ＠ 750,000 12% 'fi0 1q71 30,00,000

ｦｩｴｾＧｗ＠ ｾ＠ ＸｾＷＰＮ＠ ｾＭ＠ lnffi 2J62.SOO

.
ＳＶｾ＼Ｑ＠ 2,50JOOO ｾｭ＠ 3,70,000
ｾｩｴ＠ 4,06,500 ｾＢｩＨｴ ｬ ｻ＠ 4,00,000
...._ ｾ＠ ＴＱ ｾ ＵＰＮ＠
ｾ＠ l11lT 75,000
ｾ＠ lH'I f\11 iinriQT 3 ＹＲｾＵＰ＠ ｾｴ ｲ ｾ＠ fllilfd 2,.50,000

Ｑ＼ｩｾｬｦｴ＠ 18..50..000 ＳＱｾ＠ JS,OOO

Sfl ＨｾＴｩ＠ 'OrFf 50,000 (01.04.2015 ifiT ｾ＾＠
ＦｾＱﾣｴｦ｣ｩ＠ 9, 79,.8 00
tii411FQ ｾ＠ 68.350
ｾ＠ 2.02,250
ｆｾ＠ 21.100
ｾ＠ ?Jtlllq '!f ｾ＠ Qi!Jfojf l;80000

Ｑ ＮＲ Ｔ ｾ ﾷ ＶＷ＠ tsoo 1,24,67 ,500

ｾ＠ ｾ＠ ｾｦｴ［ｒ＠ lR 15% ｾ＠ Cfil&ll

ｾｩＨｲｱ＠ ｾ＠ ｾ＠ 5,000 q;) ｾ＠ ｾ＠ ｾ＠
(c) mit Cf!f q;J ｦｓｾ＠ ｾ＠ ｾ＠
(d) ｾ＠ ｾ＠ ｾ＠ ｾ ﾷ＠ "wfi 1R 5% '\'jfJtT qjl ｓｬｱ ｾ ｈ＠
(e) 3JilT ｾＵＰＥ＠ ｾ＠ ｾ＠ lt SHCitllrt ｾ＠
(t) 3 1 lfflf,, 2016 Cf)) Rfcli 9,50,000 !fl
<&> q;tf:;rrit ｾｒｬ｣ｲ＠ %s ｾＱｳＬｯ＠ 'it ｾ＠ ｾ＠ ｾ＠ C6il4::ft itrOtr ｾ＠ ｾ＠ ｾ ﾷ＠ 1
ｱｾｳＺｦＱ＠ ｾ＠ ｾ＠ ｾ＠ ＦＱ Ｑｾ ｾ ｾ＠ I

EGT-P-CO MA 8
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 nte following .are the balanc·es of Bht1shan Co. Ltd. as on 3 ·1st Matich. 2016 :
Ｎ ｄ･｢ｾｴ＠ CTedit

.Land & Buildings ＳＰｾＷＲ ｾ Ｐ＠ Share Capital 40,00,000

Plant & Machinery 33'00,.000 4,00,000 shares @ ｾ｝＠ 0 eacb
Stock 7,50,000 ｾ＠ 2% Debenluces 30;00/.100
Snndry Debtors 8,70,CHJO P/L Ale. 2,62,500
Goodwill 2_,50,000 Bnl Payable 3,70,000
Casb at B81lk. Ｔ ｾ ＰＶＮＬＵ＠ Creditors 4,00,.00}
｣ｾｬｳ＠ fn arrear 75,000 Sales 41 ,50,000
r.ntcrim Dividend paid 3,92.500 General reserve 2}50.000
Purchases [8.•50,000 Bad Debt 35,000
Pr·elinunary Expenses ＵＰ ｾ Ｐ＠ (Provision on OL04.20lS)
\Va&res 9t79.&00
·General Expenses 68 350
'
Salaries ＲＬＰｾＵ＠
Bad debts 2 1, 100
Debentures Ｑｮ ｾ･ｲｳ ｴ＠ fJaid ｝ｾＸＰＬ＠ .
l ｾＲ Ｔ ＬＶＷ＠ ,5UO 1,24,67 500

The following additional infonnadon •i s ｡ｶｩｬ｢ｾ･＠ :

(a) Depreciate Plant & Machinery by 15%
(b) Write off ｾＵＰ＠ from Preliminary Expenses
(c) Half-year's D·e benture interest due
(d) Credit 5%. provision on Debtors for doubtful deb$
(e) Provide for lnoome Tax@ 500.-b
(t) Stock on 3·lst March 1016 was ｾＹＬＵＰ ＬＮ ＨＩＰ＠

(g) A •claim of ｾＲＵＬＰ＠ foT woda:nen's compensation js being disputed by the

company.
Prepare fina] Accounts of the company. 20

4.(b) ＮＬｾ＠ ｾ＠ ｾＦｬｱ＼ｷ＠ ｾ ｾ＠ Ｍ ｾ＠ ｾ＠ ｾ＠ ｾＢｏａ＠ matt ｾﾷｴ＠ ｩｪｊＱｾｴ ｬ＠ ｾ＠ ｾＦｬｴｦＮ＠

ｾ＠ ｾＭｐｬｴｓｇ Ｌｩｴｦ＠ ｾｦｵＱｴｬｩＴ＠ ｩｴｾ＠ ｩ＼ｬｇｾ＠ ah)f.nq_ I
"The a11dit of banks is tbe audit of baJance sheet and advances." Explain_ Distingu1stil
｢･ｴｷ｣ｾ＠ perfom1ing and non·perfor.ming assoets_ 20

EGT-P-coMA
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4.( c) ｾ＠ Ｂｊｒｃｾｬ＠ ({[iffi ｾ＠ ｾ＠ ＧＳＮｾ Ｑｾ＠ i1 ii· ｾ＠ 1li ｐｬＭＱｾ＠ 01 ｾ＠ ＠ｾ 1J.Cil ｾ＠ tmFF ifi lPl ii
ｾ＠ ｾ ｉ ＼＠ ｾ＠ '\iffii1 Ｑ Ｇｾ＠ wa ｾ＠ iii ｾｬ＠ it, 1ff.1Cfi ｾ＠ ＠ｾ % ｾ＠ ｾ＠
"61f$11 Ｊ｡ ｾ＠ ｾ＠
ｾＧｓ ｴ｡ｮ､ｲ＠
costing i.s universally a,ocepted as an effective instrument fo• controlling
costs m 1ndustrics.ifi. In the light of this statement, cxplam the objt.'IC'hvcs of standard
costing. 10

?JO:S 'B'
s. ｩｴｾ＠
Plutf<-tf®o qiJ ｾ＠ ｴＱ ｾ＠ 1 ｾｩｦ＠ so :
Answer the fo1lo\•.rm g in about 150 words each : IOx5=50

5.(a) ｾ＠ fircfrn ｾＧ＠ ｱｬＱ｟｣ｾ＠ ＨｾＩＮｦ＠ '3tlf<i"' ｾ＠ ｾ＠ ｾ＠ m ilM ｾ＠ Cfif

ｗＧｈｦｬｴｾｷ I Ｍ ＴＰＱｾ＠ ｱｻ ｉ ｾｕｔ＠ €JP!:q
Critic.a]ly examine the relationship bet\\teen the key flnancial decisions, return. ris'k
and market value. I.0

5.(b) ｵＢｑ［ Ｎ ｾＮｭ＠ .. MZJclttU I, ｾﾷ＠ ｦｵｾ＠ ｾ＠ ＫｉｈＱｾ＠ ｾ＠ 31:!4fd ( ｾＺ｣Ｎ＠ . ca ｾ＠ ｾ＠

ｾＩ＠ tUHJft lraf"..t:T. 'fir « Ian;:;q ｾ＠ "ff ｾ＠ ｾ＠ ｾ＠ ｾ＠ I'' ｾ＠ mtf.1 cfii ｬｦｾ＠ ll
･ｬＺｍ ｉ ｾ＠ ｾ＠ ｾ＠ ｡ｭ［ ｾ ｾ､ ｬ＠ ｾ＠ Chi('Jn cn1 ｾｴ＠ ,
""ABC Analysis, FSN Anal)rsjs and lrwentory Tumo\·er Ra-tio are the most commonly
u.soo. Looll s or lLWentor.y management,, Explain each tool in brief .and SttLlC the
reasons for their ｰｯｵ ｬ ｡ｲｾｴｹＮ＠ I0

5.(c) ｾ＠ ｒｵｬｴｾ＠ ｾ ﾷ＠
lt ｾ＠ ｾ＠ (l'lli4E ｾ＠ ｾ＠ ｾ＠ ｾ＠ icfi1 ｍｾｩＱ＠ cAf.ill( :.
1lli1ftl4 ﾫｴｾｬＧｦ［ｲ｡＠ ｦｍ＿ＢＡｩｴ､ｾ ｬ＠ ｾＱ ＱＧＢ＠ -FW.f I W fffu ｾ＠
Discuss the following ways of incorporating risk in tbc m"·cstnte11t decision mnking
process : The Risk-Arljusted. Discount Method and The Certainty Equivalent
Method. 10
5.(d) ＢＧﾷｾ＠ <il lVI t<l q)J qtffet,(DI ｾ＠ ＠ｾ ｾ＠ "w.ti1if' GFif ｾ＠ q R4<ttidl; ｾ＠ ｾ＠ ｾ＠ ｾｦｵＺ＠
ｾ＠ CfB zyft lJT Oi4&iiQI ｾ＠ "!fj$fl iliT ｾ＠ Uff ｾ＠ ·fl{'tlii l *t • it ｾ＠ 1l{

ｾ＠ 1'' ｾｩｴ＠ ｴＺｬｾ｛ｦﾫｍｵ ｾ＠

ｬ＠ -.r ｾ ｔ＠ ｾ＠ ｾ＠ ｾ＠I ｾ＠
L'Fi nancial markets can be classified based on ｴｹｰＮｾ＠ of financial claims, maturity of
dain'ls.., claims ｲ･ｰｾｮ ｴｩｮｧ＠ new issl.lCS or outstandh11g ;ssues, liming of delivery ｾｮ､＠
namrc of [:ts organisation ｳｴｲｵ｣ｬ･ Ｎ ｾＧ＠ Summarise lhc classification in bdef. 10

ｾ＠ €:fai11fo=f if, ｦﾧｬＺ［ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ oftq1 Cf1 IzfSl Ul lJt <i1f ｾ＠ ｾ＠ I ｾ＠

1
5+( e ), w:r.f $
ｵｲｾ＠ ｾ＠ ｾ＠ ｾ＠ ili ｾ＠ Rlifa,=t ｾ＠ ｾ Ｍ ｾ＠ ｾ＠ ﾷ ｾｫｩＱ Ｑ ｈ＠ ｾ＠ ｾ＠ ｾ＠ 1

Explain the rating methodology used by CRlSU.. in debt ratmg. \Vhat symbols are
used by CRISll... far detcrmirung the risk le-v,el of a debt instrument? 10

EG -P-COMA 10
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 f!f'tt'U'i ｦＨＢｩｾ＠ F<l<ti<-4
ｦＴ｣ｴｾ＠
-;ftfu - 'fi - li

ＨａＩｾ＠ ( ｾ＠ li) 10-00 '9·60 12·00

(B) ｾ＠ ｾ＠ (iWft ｾＩ＠ 30 45 60

(C) ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾｭＩ＠ 5 4 6

(D) \3tlR ｾｔｗｦ＠ ｾ＠ ｾ＠ ( tmj -if) 0·40 0·25 0·50

(E) 3fnm. ｾ＠ (iWfi it) 45 50 70

Cfl&qrfi fcrnn 1R 40% ｊｬｓ ｩ ｾｈ＠ 1mf ｾ ﾷ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ I ｾ＠ ｾ＠ 'R ＳＱｃｉｾＴｦｬ＠

qft;;;{Ja "« (tl :ffii:o ｾＩ＠ Sl fd q t{ 20% t I 1ffi ｾ＠ ＠ｾ ＠ｾ it 365 i¢;:r ｾ＠ I 3iN ｾ＠ ｾ＠
ｾ＠ ｾ＠ ｾ＠ ｾｬ＠ % fffit Ｍｭ＠ｾ ｾ Ｍ ｾ Ｍ ｦＶＱｩｬｷｑ＠ ＠ｾ :aq3"fl, t 1

ABC Ltd. is considering the foHowing credit policy alternatives :

Ex istmg Option Option

Particulars .Policy -A - 8
(A) Credit Sales Ｈｾ ｩ ｮ＠ lakhs) 10·00 9·60 f2·00

(B) Credi1· P'e n od (days) 30 45 60

(C) Bad Debt(% of sa'les) s 4 6
(D) Cost of Coc-'dit AdministraJion ( ｾ＠ in laths) OAO 0·25 0·50
(E) Aver-age Collection Period (days} 45 50 70

The company expects to acl1ieve a contribution of 4()(1/o on sales. It has the required
rate of return on investment of20% p.a. Assume 365 days in a year. You .a rc required
to suggest which credit p<!riod option is more suitable to the company. 20

'6.( b) ｾｒｦ＠ cnR<iih'A' t€t ｦＮｴｾ］＠ RifQcl ＺＭｲＮｾ＠

- m ｾ＠ .lTJ%1 4·00

- ｾｮ＠ tR qfiC'1Rr ｾ＠ 18%

- ｾｴｒ＠ If<41 '{tm q i Md q ft9 fill ｾ＠ ｻｾ＠ ｾ＠ ftof) ｾ＠ 5°/t}

ｾ＠ ｾ＠ ｾｪＴｈＱ＠ 40 Y'fu:mt ? 50 mRf ? 60 1fimm ｾ＠ ? cfr ｾ＠ ｾ＠ JljflR
1ffir 00 Cfq1 ｾ＠ ｾ＠ ?

11 EGT-P'.COMA
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 The followiflg information is available for KRJSHJV Oorporatjon :

- Earning per share · ｾ＠ 4·00

- Rate of return on m.vestmellls 18 per cent

- Rate of return required by shareholders 15 per oent
\Vhat wm be the price per ｳｨ ｡ｲｾ＠ as per the \Va1ter Model if the payout ratio is
40 per cent ? 50 per cet)t ? 60, per cent ? lS

6.(c) ｵＮｾ Ｌ＠ -q:;q ｾ＠ mfur 311ml ｾ＠ ｾ＠ Ｈｾ Ｎ ｭＮＩ＠ ｾ＠ q!l{ctil'R ｾ＠ iW'fi

-;;fl ｾ＠ ｾ＠ ｾｔ＠ 3ft< f4=«lll'1 'ilffil4l ｾ＠ ｾ＠ ma f I" "ff!;)q ｾ＠ ｦｬｩｾｈＡＴ＠ I

'The Weighted Average Cost of Capital (WACC) of a finn. depends on many factors
which are beyond the control on the invcsr:rnent and financing policies of a f'inn ''
E!'..rplain in brief. 15

7.(a) ｾ＠ ｾ＠ ＠ｾ ｾ＠ ｒＺｩｦｬｴ ｾ＠ ｾ＠ ｊｬｔ･ｦｾ＠ ｾ＠ ｩｦｾ＠ MMJilo1ｾ＠ ｾ＠ ｭｾ＠

llHIIil oqltffl ｾ＠ J ｾ＠ qm' WｦＴｃｩｴｾｱ＠ ｾ Ｍ ｾｴ＠ ｾ＠ ｾＺｴｨｬｲ＠ ＳｩｬＧｻｦ＼ｾ＠ Ｚ｡Ｍｾ＠ ｾ＠ 'lfr

ｾ＠ ... f4+iP4 1"1(1 r;,rm, ｾ＠ '

ｾ＠ ｾ＠ 311l'ffitCfl('lt ｾ＠ ＵＡＱｫｴｱｾ＠ 6000 ｾ＠ tfit ｾ＠ qir 125 ｾＨ｜ｻｩｴ＠
ＳｦｬＱ｀ｾ＠ ｾｦ｡＠ t I
ｾ＠ ｾ＠ q;r ｴ＼］ｩｾ ﾷｾ､＠ ｾｦｴＫｩ｡ｬ＠ ｾ＠ t m ｾ＠ ｾ＠ ｾｦｱＢＮＨ ﾣｦｃｬ＠ :aqcwm ｾ＠ ｾ＠
ｾ＠ 10 'ffifY tml iQ!i ＠ｾ ｾ＠ iF ｬＺａｾｉｴ＠ atjliiHd ｾ＠ ｾ＠ ｾ＠ ｾＲ＠ ｾ＠ "$rJ I
31 fdf<tti ｾ＠ t=rrrm ｾ＠Ｈ ｾ＠ JlJ ｾ ｃｦＱ＼ｽ＠ Jlj+i PHi: ｾ＠ "if l ｾ＠ >ffif qtf "tPft ｾ＠ ｾ＠
"'ERCfi ｾ＠ Plt1TOI ｾ＠ ｱｦｻｩ＼ｍｾｴＮ＠ ｾ＠ ＳＰ＠ｾ 1ffir ｾ＠ ｉｾ＠ mm 35 ｷｒｴｾ ｬ ､＠ CR ｾ＠ ｾ＠
ｾ＠ t I W ｱｦｻｾＢＩ［＠ I ｾ＠ ｾ＠ ｾ＠ ｾ Ｍ 15 ｾｒｲ＠ ｾ＠ I ifit:q;fl ｾ＠ ｾｪｬ＠ Pld ql fttq;
3U4:ftr4idl f1i:9 m{ ｾ＠ 7.500 ｾ＠ 1fRr Gfti t I WDV ｾ＠ ｾ＠ 3l1tTR "tR ｾ＠ CfiT ｾ＠
ｓｬ ｬ ･ｾＧＢ＠ ｾ＠ 2s Ｑ ｦｴｬｾｭ＠ 1
ci;q';ft q;) ｾ＠ ｾ＠ ｾ＠ ＠ｾ ｾ＠ arJ'lfdq;af if ｾ＠ ｾ＠ \€AT ｾ＠ ｾ＠ ｾ＠ q;r
Pitiful ｾ＠ ｾ＠ Ｂｩ ｩ ｾ＠ I if:IT anq qif ｾ＠ fmf W1JJ ｾ＠ ｾ＠ fdq tf ｾ＠ -r$r futil 6000
ｾ＠ Tit ｾ＠ if, -m ｾ＠ 1

Cf'f 1 2 3 4 5

'f J qn 15o/o "tR ｾｬｦａ＠ ｾ＠ 0·870 0·756 0 ·658 0·572 0-497

ｾ｝＠ ｾ＠ 1fiT i4J'liH ｾ＠ 0-&70 1·626 2-283 2·855 3·352

1.5% 'tR

EGT-P-COMA 12
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 amya Ltd wants to prepar·e the feasibility of manufacturing one of t'hc components
needed for its finished product. U has two opti011S of purchasing fTom its present
supplier or to manufacture it in-house.

Its present supplier has sho\ n ｾｨ･＠ willin,gncss lo provide at ｾ＠ 125 per unit for the
company's r·e quirement of 6000 units per year.

If the component is manufactured in-house, it requires equipmc:nts costing

10 lakh and is expected to have salvage v alue of ｾＲ＠ lakh after the expiry of five
years. Additional fixed cost (excluding depreciation} are estimated to increase by
ｾ＠ 1 lakh per year. The variable cost of manufacturing each component will be
ｾＳＰ＠ per unit. The company is subject to a 35 peT cent tax rate. Us cost of capital
is 15 per cent for this project. The company's projected annual needs is at 7500 units
.. per year tor S years. The tax relevant rate of depreciation is 25 per cent based on
WDV method.
Ad'trisc rhe companyT whether it should continue buying from outside supplier or
start ;s:s own rmmnfactun ng. Will your answer be different if tho requirement of the
.c ompany is only 6000 units, per year ?

ｙ ｾ ･ ｡ｲ＠ I 2 3 4 5

The present value of 0·870 0 ·756 0-658 0 ·572 0·4·97

ｾ Ｑ＠ at 15%

Th€ proscnt val ue of an 0 ·870 1·626 2-283 2-855 3 ·352

Annuity of ｾ＠ 1 at l5%
20
7ｾＨ｢Ｉ＠ ｾ＠ f(41 ｾｳ＠
ｾ＠ ｲﾣｌｱｊｾ＠ cfit (f.Mtl ＠ｾ ＠ｾ f 5,00,000 ｾＧ＠ (3ifcfa ｾ＠ ｾ＠ 10) 1
Pt("d l( 4lGFII ｾ＠ Ｓｔ ｩ ｾｴＴ ＼ｍＱ Ｑ＠ cit ｾ＠ ｾ＠ ＠ｾ ＠ｾ • • .....,..n ｾＳＰ＠ ｾ＠ =ql(fffi ｾ＠ I
f.tftM q;) ｾ＠ ｾＧ＠ ｃｦｩＦｲｴ ｾ＠ PrfHM<!la 'ifR ｾＧｦｊｗＺｉ｣ｴｩ＠ mar 1R fiRR ｾ＠ \tft t :
ｾ＠ li : "1f ｾ ｔ＠ ｾ･ｬ＠ ｾ＠ if 1jffif 'R"fr I

ｾ ］＠ ｾ Ｑｾ ｾＭﾫ＠ Ｒｾｴ ｩｏ ｾｋｊｓｩｦ､ｱ ﾷｾ ｴｒＺ＠

ｾ ｉ＠

ｾ ｾＡ＠ Ｂｩｴｾ＠ ｾＳＬ＠ ｾＧｩｴ ｬ ｏ Ｅ＠ ｾｦ｡｣ｗ［｜ｬｒ＠ I

ｾ＠ CJ : 'f L ｾ＠ ｾｩＩ＠ ｾ＠ ｾ＠ ｾＲ＠ ｾ＠ 8% ｓｬｦ､ｱｾ＠ ｾｬ＠ t:R cRiift{.ft ｾ＠ %f14tttt %1

Mffil( ｾ＠ ｴｦｩｬｾＴ＠ ｾ＠ 4{i4Rt if;IXI;ft ｾｬ Ｌ ｓＰ ｾ Ｐ Ｓ Ｑｗｊｭｦｾｴ＠ I q;tq;ft ｾ＠
ＳＵＥｾＭｴＢ＠ I ｜､ｾｱ［ｊ＠ I

13 EGT-P-COMA
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 Mayur Manufacturing Ltd. has equity share capimal of 5,00,000 (face value
ｾ＠ 10). To meet tbe requirement of expansion plan. the company wishes to r-aise
ｾＳＬＰ Ｎ＠ The company is considering the following four altemattve s ources to
raise· the funds ｾ＠
Plan A : To bave full money from the equity ｳｨ｡ｲ･ｾ Ｎ＠

Plan B : To raiS<e ｾ ｉ＠ lakh from equity and ｾＲ＠ lakhs by borrowing from financial
.. insti tution @ l 0% rate of ｪｮ ｴ･ ｮ ｾｳｴ＠ per ｭｾ ｮｵｭ＠ .

Plan C : To ra]sc full money of 'f3 ｾ｡ｫｨ ｳ＠ from bank at ｗｾＯｯ＠ rate of interest per
annum.
Plan D : l lakh in equity and ｾＲ＠ lakhs issue of preference shares at 8% ·per
annum d1vidend
The compatly 1s expected to have earnings of 1,50,000 after the expansion
programme. The tax rate applicable to company is; 35%. Suggest the suitable plan.
15

7.(c) ftrJrq ｦ｣ｬｱｾｮ＠ ｾ＠ ｾ＠ ｾ＠ ｾｴｷ ｦｩｃ Ｑ＠ ｾ＠ "G!"R ｾ＠ P.J:1a.R!1a 34"141ct1 ｾ＠ ｱｮ｟ｾｉｎ｣ｴ＠ ｾ＠

ｩＨｾ＠ iCf'i'1 If;) ｾｑ｜＠ ;

(i) t1ffli1C1 ｾ＠ Ｈｾ＠ ｾ＠ ＳｾＩ＠

(ii) ｾ＠
( L1i) aimcJ ｾ＠ 3fiffu
(iv} ｦＴｐｲｴｾＱ＠ 1?fi ·tR ｴｦｾ［ｕ＠
(v) ｾ Ｍ ｡ｮｴ＠ ｾ＠
Define and evaluate:: t'he foHowmg ratios used for ana1ysis of fmanci.al statements:
(i) Acid-test tatio
(ii) Interest coverage rat1o
(HO Average coUection period
(iv) Return on capital employed
(v) Pnce - earning rntio 15

s.(a) ｾ＠ ｾ＠ 11l1ffi it fC!frtA'lf atjGta ｾ＠ 1ti ｾ Ｍ ｾ＠ -R r4fiwt 3f1tm ｾ＠ ｾ＠ ? Ｓｬｾ＠

m, 3li'mtft<; ｾ＠ aq1Ma wf '4ir ｾ＠ 'fl: ｾ＠ ｾ＠ tw.'itt ｾ＠ cfiT ｾ＠ Froffu; ｾ＠
ｾ ＿＠
\¥bat arc tho different bases for ·e stablishing the excbangc ratio in case of a merger '?
How the boundanes for exchan ge rate js deterrruned from the v1ew point of
acquiring, acquired and combined flm 1 '! 20

EGT-P-CONIA 14
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s.(b) tm:a· ｩｴｾ＠ ｾ Ｑ＠ ｾ＠ cfit ｾｮ＠ ｾ＠ fcrffit Ｂｾ Ｇ ｣ｴ＠ 1

Discuss the state of the venture capital industry m India. 15

8.(c) ｾ＠ ｾ Ｑｲｦｬ＠ 3fR ｾ＠ Ｑｕ＿ＴｎｩｾＭｬ＠ fcfi tm" fi<=qlfl ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ t ｾ＠ ｾ＠ 4fQ;

ＳｩｴＱｬｊ ｬ＠ ｾ｣ｴ q;r 1fllH ＴＱＧｬ ｾ ｴ ｴ＠ 1 ｦｩｾ ｒＱＧ＼Ｓｾ＠ ｾ＠ cr;r ｾｦｩｬｴ ｴ ｴＧｬ＠ ｾ＠ ｾＧ＠ 3ft\ ｾ＠ ｡ｾ Ｑｾ＠
ｾ＠ ｾ､［ Ｑ ﾷ＠ ｴｬｩＦｾ＠ ＠ｾ ＳＱ Ｑ ｦＴｾ＠ ｾ＠ ｾ＠ 1FiiR ｾ＠ fil410 ｾ＠ ｾ＠ ｾｲ､＠ <fi\ill ｾ＠ II

ｾ＠ ｉａｾｴ＠ wi Uli ｦｴＮｾ＠ m ｾｩｬｒ ｾ＠ ｾ＠ ｾ＠ 1 ｾ＠ ｾｦｩｒｳ＠ ｾ＠ lffi1 ｾ＠ ｾ＠ ｾ＠

ｾ＠ 1 ｾ＠ ｦｩ［ｾｵ＠ ｾ＠ '1m ｾｲ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ ｾ＠ 1 3Fq" ｾ ﾷ＠ Prr141R:tWtd ｾ＠ :

ｾｃｉＱ［Ｎｬ＠ "UJf ｗｩｦｬｾ＠ ｾ＠ R=illtls

ｾ＠ ｱ ｒｾ ｴ ｾｲｊ＠ 3WJ < ) lO,OO,OOO ＱＰｾ＠

ｾ＠ ＨｾＩ＠ - 3 oojooo
ｾ＠ ｾ＼ｶ
.,. ,.,.
ｲ＠ ｾ＠ - [ ()0,.{,

ｾｦＫＺｴ･ Ｑ＠ 'fill Cf\ (O I ｾ＠ 14% l8%

ｾ＠ ¥ "ffilm 14% 14-52%

ｾ＠ ｾｆｦｩ＠ ｾ＠ Wi MftR::s iti 1,oo,ooo ｾ＠ ｾ＠ ｾｩＫｴ｡＠ ｾ＠ m -qm -«} ｾ＠ t 1 ｾ＠ ftfr«

31 ｈｾｏｊｉ＠ Cfit 3fq rtJ iMt ?
State the assumptions made m Modigliani and Millt..-r Propo-shi on-1 that the capital
strucrure is independent of capital mix. Explain whh an example 'that how arbitrage
process justifies che ｴｨ･ｯｲｹｾ＠ using the foJ lowing data.

Shyam Ltd and Ram. ltd. belong to same risk class. Ram Ltd has no debt c-apitaL
Sbyarn Ltd.. h as both debt and ｾ ･ ｱｵ ｩｴｹ＠ capital. Other details are as ｵｮ ､ ･ｲ ｾ＠

Particulars Ram ｌｴ､ ｾ＠ Shyam td.

'

. et Operating Income ( ) 10,00,000 I 0,00,000

Debt ltlterest ( ) - 3,00,000
Debt Capitalisaticm Rate - lO%
Hquity Capitalisatio n Rate 14% 18%
Average Cost of Capital 14% 14·52%

One mvestor is holding ｾ＠ 1,00.000 worth of equrty shares of Ram Lim1ted. What
arbitrage wm he resort to ? 15

l5 GT-P-COMA
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