M.Com. (Sem.

I) EAFM (II)
M.Com. First Semester Examination,Dec.-2018
(Faculty of Commerce)
Economic Administration & Financial Management
Second PAPER
Financial Management
Paper Code: 73102
Time Allowed: Three Hours Maximum Marks: 70
(1) No supplementary answer book will be given to any candidate. Hence the candidates should write the answers
precisely in the main answer book only.
fdlh Hkh ijh{kkFkhZ dks iwjd mÙkjiqfLRkdk ugha nh tk;sxhA vr% ijh{kkfFkZ;ksa dks pkfg;s fd os eq[; mÙkjiqfLRkdk esa gh leLr iz’uksa ds mÙkj fy[ksAa
(2) All the parts of one question should be answered at one place in the answer book. One complete question
should not be answered at different places in the answer book.
fdlh Hkh ,d iz’u ds vUrxZr iwNs x, fofHkUu iz’uksa ds mÙkj mÙkj&iqfLrdk esa vyx&vyx LFkkuksa ij gy djus ds ctk; ,d gh LFkku ij gy djsAa

Attempt five questions in all, selecting at least one question from each section. All questions carry
equal marks.
izR;sd [k.M ls de&ls&de ,d iz’u dk p;u djrs gq, dqy ikap iz’uksa ds mÙkj nhft;sA lHkh iz’uksa ds vad leku gSaA

Section-A
1. “The functional area of Financial Management is broadening day by day.” Explain the
statement with suitable reasons. 14
“foRrh; izca/k dk dk;Z {ks= fujUrj O;kid gksrk tk jgk gS”A mi;qDr dkj.kksa lfgr dFku dk o.kZu dhft;sA

2. What do you mean by ‘Analysis of Financial Statement’? Explain its objectives. 14

foRrh; fooj.kksa ds fo’ys"k.k ls vki D;k le>rs gSa\ blds mn~n’s ;ksa dk o.kZu dhft;sA

3. Complete the Balance Sheet in the form given below using the undermentioned information: 14
uhps nh x;h lwpuk dk mi;ksx djrs gq, fuEukafdr izk:i esa fn;s x;s fLFkfr fooj.k dks iw.kZ dhft;s%
Sales Rs. 36 Lakhs.
Total Assets Turnover Ratio 3
Current Assets Turnover Ratio 7.5
Fixed Assets Turnover Ratio 5
Inventory Turnover Ratio 20
Debtors Turnover Ratio 15
Total Assets /Net worth Ratio 2.5
Debts –Equity Ratio 1
All turnover ratios are based on sales.
Balance Sheet
Liabilities Rs. in Lakhs Assets Rs. in Lakhs
Net worth …………. Fixed Assets ……………
Debt …………. Current Assets ……………
Current Liabilities …………. Inventories…………
Debtors…………
Cash & Bank……..
……………. …………….

P. T. O.
 Section-B
4. Directors of a Company prepared the following budget for the coming year: 14
,d dEiuh ds lapkydksa us vkus okys o"kZ ds fy, fuEu ctV cuk;k%
Rs.
Sales 10,000 Units @ Rs. 10 per unit 1,00,000
Variable Cost @ Rs. 5 Per unit 50,000
Fixed Cost 40,000
(a) Find the P/V Ratio, Break-even point and Margin of Safety
(b) Evaluate the effect of
(i) 10% increase in selling price.
(ii) 20% decrease in physical sales volume
(iii) 10% decrease in selling price and 10% increase in physical sales volume
(iv) 5% decrease in variable costs.
(v) 10% increase in fixed Costs.
¼v½ ykHk&ek=k vuqikr] le&foPNsn fcUnq ,oa lqj{kk&lhek Kkr dhft;sA
¼c½ fuEu dk izHkko ewY;kafdr dhft;s%
(i) foØ; ewY; esa 10 izfr’kr o`f)
(ii) foØ; ek=k esa 20 izfr’kr deh
(iii) foØ; ek=k esa 10 izfr’kr deh rFkk foØ; ek=k esa 10 izfr’kr o`f)
(iv) ifjorZu’khy ykxrksa esa 5 izfr’kr deh
(v) LFkk;h ykxrksa esa 10 izfr’kr o`f)

5. From the following Balance Sheet of Maruti Ltd. prepare Funds Flow Statement: 14
ek:fr fy- ds uhps fn;s fpV~Bksa ls dks"k izokg fooj.k cukb;s%
Liabilities 31.3.2017 31.3.2018 Assets 31.3.2017 31.3.2018
Rs. Rs. Rs. Rs.
Equity Share Capital 3,00,000 4,00,000 Goodwill 1,15,000 90,000
Red. Pref Share 1,50,000 1,00,000 Land & Building 2,00,000 1,70,000
Capital
General Reserve 40,000 70,000 Plant 80,000 2,00,000
P&L a/c 30,000 48,000 Debtors 1,60,000 2,00,000
Creditors 55,000 83,000 Stock 77,000 1,09,000
Bills Payable 20,000 16,000 Bills Receivable 20,000 30,000
Prov. for Taxation 40,000 50,000 Cash in Hand 15,000 10,000
Proposed Dividend 42,000 50,000 Cash at Bank 10,000 8,000
6,77,000 8,17,000 6,77,000 8,17,000

Additional Informations (Relating to year 2017-18)

(a) Depreciation of Rs. 10,000 and Rs. 20,000 has been charged on Plant and Land & Building
respectively
(b) An interim dividend of Rs. 20,000 has been paid, and
(c) Income tax Rs. 35,000 has been paid
vfrfjDr lwpuk;sa ¼2017&18 o"kZ ls lacaf/kr½
¼v½ la;a= rFkk Hkwfe ,oa Hkou ij àkl Øe’k% 10]000 :- ,oa 20]000 :- pktZ fd;k x;k gSA
¼c½ varfje ykHkka’k 20]000 :- pqdk;k x;k gS] rFkk
¼l½ vk;dj 35]000 :- pqdk;k x;k gSA

6. Explain the principle of ‘Trading on Equity’. Describe its utility to the management and
point out its limitations. 14
lerk ij O;kikj ds fl)kUr dks le>kb;sA izca/k dks bldh mi;ksfxrk ij o.kZu dhft;s rFkk bldh lhekvksa
ij izdk’k Mkfy;sA
 Section-C
7. ABB Limited plans to manufacture and sell 400 units of a domestic appliance per month
at a price of Rs. 600 each. The ratio of costs to selling price are as follows: 14
Raw Material 30% ; Packing materials 10%
Direct labour 15% ; Direct Expenses 5%
Fixed overheads are estimated at Rs. 4,32,000 per annum.
The following norms are maintained for inventory management;
Raw materials 30 days; Packing Materials 15 days
Finished Goods 200 Units; Work in progress 7 days.
Additional informations:
(i) Credit sales represent 80% of total sales and the dealers enjoy 30 working days credit.
Balance 20% are Cash sales.
(ii) Creditors allow 21 working days credit for payment.
(iii) Lag in payment of Overheads and expenses is 15 working days.
(iv) Cash requirements table 12% of net working capital
(v) Working days in a year are taken as 300 for budgeting purpose.
Prepare a working capital requirement forecast (at cash cost) for the budget year.
,chch fyfeVsM dh ;kstuk ij ?kjsyw midj.k dh 400 bdkb;k¡ izfrekg 600 :- ds ewY; ij fuekZ.k djus ,oa cspus dh gSA
ykxr dk foØ; ls vuqikr fuEukuqlkj gS%
dPpk eky 30 izfr’kr ; iSfdax lkexzh 10 izfr’kr
izR;{k Je 15 izfr’kr ; izR;{k O;; 5 izfr’kr
LFkk;h mifjO;;ksa dk vuqeku 4]32]000 :- izfr o"kZ gSA Lda/k izca/k ds fy;s fuEufyf[kr ekud j[ks x;s gSa%
dPpk eky 30 fnu ; iSfdax lkexzh 15 fnu
fufeZr oLrq,sa 200 bdkb;k ; izxfr esa dk;Z 7 fnu
vfrfjDr lwpuk,sa
(i) dqy foØ; dk 8 izfr’kr m/kkj foØ; gS rFkk MhylZ dks 30 dk;Z’khy fnol dh m/kkj nh tkrh gSA
'ks"k 20 izfr’kr udn foØ; gSA
(ii) ysunkjksa }kjk Hkqxrku ds fy;s 21 fnu dh m/kkj nh tkrh gSA
(iii) mifjO;;ksa rFkk [kpksZa ds Hkqxrku esa 15 fnu dk foyEc gSA
(iv) jksdM+ vko’;drk,sa 'kq) dk;Z’khy iwt a h dk 12 izfr’kr gSA
(v) ctVu mn~n’s ; ds fy;s ,d o"kZ essa 300 dk;Zfnol ekuus gSA ctV o"kZ ds fy;s dk;Z’khy iwt a h dh
vko’;drkvksa ¼jksdM+ ykxr ij½ dk vuqeku yxkb;sA

8. What is meant by Leverage? How would you compute the degree of operating
and financial leverage? Explain with suitable examples. 14
mRrksyd ls vki D;k le>rs gSa] ifjpkyu ,oa foRrh; mRrksyd dh ek=k dh x.kuk vki fdl izdkj djsx
a s\
mnkgj.k lfgr le>kb;sA

9. “Indequate working capital is disastrous whereas redundant working capital is a criminal

waste.” Critically examine this statement. 14
“vi;kZIr dk;Z’khy iwt
a h vuFkZdkjh fLFkfr dk izrhd gksrh gS tcfd vko’;drk ls vf/kd dk;Z’khy iwat
w h
n.Muh; viO;; dk izrhd ekuh tkrh gS ”A bl dFku dk vkykspukRed ijh{k.k dhft;sA

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