Ques 1 FAM Text Book Mini Case (within 100 words only) #1

Answer: Factors for considering a particular company:

1) Financial Performance: To analyze to business performance of company in past 10 years.
2) Industry Rivalry: Intense competition will lead to decreased profit.
3) Strong Leadership: Adjust the mindset of customers to rely on the company and stay with it.
4) Volatility of Market: Holistic approach for investing in any company
5) Shareholders of the company: Type of shareholders often define the growth of the company.

Ques 2 FAM Text Book Mini Case (within 100 words only) #3

Answer:

a) Type of business entities for Amar, Akbar, Anthony and Amarpreet

Amar
Company, it would
require more number to
run the franchise and
more number of
shareholders.
Akbar Anthony Amarpreet
OPC, Believes in self LLP, as it team work. So Company, hospital require
dependence so don’t amount of investment will huge investment and has
require any partner be limited to partners. to be registered in
Companies act, 2013

b) Yes, the type of business has influenced the type of business entity.

c) Factor affecting the type of business entity are scale of operation, capital required, degree of management, stability
of business, and division of profit and government procedure involvement.

Ques 3 Show the proof of fundamental concept of accounting and name of specific stakeholder of GMM Pfaudler Ltd
as per the latest annual report?

Answer:

Fundamental concept of accounting:

Concept
1 Property Rights
2 Business entity
3 Going Concern
4 Monetary expression in
account
5 Matching concept
6 Realization concept
7 Consistency period
8 Conservatism
9 Materiality
1 Timeliness in financial
0 reporting
1 Dependability of data
1 through Internal Control
Referenc Comment
e
Page 167 Details about fixed asset and intangible asset
Page 10 Explains about the business as company and its acquisitions.
Page 28 Report says it has a well-documented book for risks and concern
Page 167 All type of asset has been declared in Rupees.
Page 111 Interest expense has been less to show profit/loss.
Page 118 Revenue is recognized upon transfer of control to of product customers
Page 115 It says financial reports are made on basis on historical cost method at the
end of each reporting period.
Page 50 Point b of Key Managerial Personnel tells estimates that are reasonable
and prudent to give true and fair view.
Page 134 Trivial assets have accrued under Other Expense head
Page 107 Report says “timely preparation of reliable financial information, as
required under the Companies Act, 2013”
Page 29 Report says “In accordance with Section 143(3) (i) of the Companies Act,
2013, the effectiveness of the internal financial control systems over
financial reporting”

Stakeholders Name:
Name Reference Comment
1 SEBI Page 83 Company met the requirements set by SEBI under Regulations, 2015.
2 Central Page 60 Company has to take approval from central government if remuneration exceeds
government 11%.
3 Customers Page 103 There is a separate chapter for value of customers (Chap 9)
4 Employee Page 75 Report says company maintains integrity to benefit customer
5 Supplier Page 75 Report says company maintains integrity to benefit supplier
6 Shareholder Page 69 Includes Trust, individuals, NRI’s, promoters etc
7 Banks Page 130 Report say about cash credit taken from bank and total 5 banks name is mentioned.
8 Society Page 95 Company is committed for sustainable growth of society
9 MCA Page 167 Through Companies Amendment Rules, 2019