Ques 1 FAM Textbook Ram Lottery Ticket

Answer:
a) Following are the ratios:
City A B C D E
Rent earned to amount Invested 0.05 0.02 0.07 0.13 0.1
Market value to amount invested 2.1 3.3 1.5 0.2 2
Market value to rent earned ratio 42 165 21.43 1.54 20
b) Digboi is that property as the market value is lowest among all. Also the ratio of market value to amount invested is
lowest.
c) Bangalore has the highest ratio of market value to amount invested. Thus, Bangalore is that property.
d) Market value to Amount invested is that ratio.
e) We know that in industrial balance sheet, net worth is owner’s equity, so:
Particulars Corporate Reflection Remarks
Amount Invested + Net worth Net worth is total of all assets minus all
Estimated market liabilities.
value
Rent earned Net Profit Net profit is the amount of money after
deducting total business expenses from total
revenue.
Estimated market Market Market capitalization, is the market value of
value Capitalization company's outstanding shares.
f) Ratios which shows replica in corporate context:
Ratios Required Ratio Remarks
Rent earned to amount invested Return on Equity This measures the net income as a
ratio percentage of shareholders'
investments
Rent earned to amount invested Price to Book Value ratio This is the ratio of the market value of a
ratio company's shares (share price) over its
book value of equity.
Market value to rent earned Price to EPS ratio This ratio for valuing a company that
ratio measures its current share price to its
per share earnings (EPS).

Ques 2 FAM Textbook Drivers of Financial Structure

Answer:
a) Mapping of firm based on Balance sheet:
Company Ram Ram Ram Ram Ram Ram Ram Ram
Jhulewala Rasoiwal Bhelpuriwala Gubbarewala Tutionwala Vanwal Cycle Library
a a mechani wala
c
Mapping D H B C A F G E
b) Mapping of firm based on Profit and Loss:

Company Ram Ram Ram Ram Ram Ram Ram Ram

Panwal Raddiwal Saloonwala Dalal Doodhwala Chakkiwal Rickshaw Dosa
a a a wala wala
Mapping D C G A B F H E

Driver of Financial
Structure.xlsx

Ques 3 GMM PFaudler Limited

Answer:
 Common Size
Comparison GMM Pfaudler.xlsx

In the P&L statement, we see that COGS has been decreased by 4% from previous year. PAT has increased by 2.4%
from previous year. Equity contributes 63% of the total liabilities which directly relates to the profit increase as shown
in P&L statement. Labor charges has decreased by 0.6%.
 As compared to Carborundum universal, GMM Pfaudler also has same share of total expense of approximately
85%. Carborandum Universal has 36% of COGS whereas GMM Pfaudler has 45% of COGS. There is a decrease in
depreciation expense of Carborundum whereas there is an increase in the depreciation expense of GMM Pfaudler. We
can infer that GMM Pfaudler has bought new assets. Current asset of Carborundum is comparable to GMM Pfaudler.
Non-Current asset of Carborundum is more as compared to GMM Pfaudler. Data shows that Tangible asset contributes
more to carborundum.
 Based on Index Analysis of P&L statement, major increase has been in total income, finance cost, profit of the year,
actuarial gain, employee benefit expense. Major decrease has been in other income, change in inventories. In Balance
sheet, major increment has been in other intangible asset, PPE, other current asset, non-current liabilities, and current
liabilities provisions. Major decrease has been in WIP, Trade payable of Micro and small enterprise, and current
investments.