Name of Institution

AMITY INTERNATIONAL
BUSINESS SCHOOL
INDUSTRIAL RELATIONS
PROJECT WORK
MBA IB/3CBBA, Semester III

DR. DEEPMALA SONI 1

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PROJECT WORK
Rao was sleeping on night duty in a petrochemical complex. Later, in the same
company, Bose, on duty near the front desk, was also found sleeping. The same
company had a third incident within a week when Ghai, who was working in the
accounts section, where he does not normally have contact with external
customers, was found sleeping on duty.
Discuss whether the gravity of misconduct in each of the case is same? Should
punishment be the same or different in all the three cases? Discuss reason why
you consider all three cases as similar and deserving of the same punishment or
why you think that these acts are of different natures and merit different
punishment.
Seek permission from a company located near your place of study to observe
the conduct of domestic enquiry and write a report on what you have observed
and what learnt.

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Browse the net for more information about grievances and the disciplinary
procedures in different companies or countries and compare and contrast them.

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 Name of Institution

AMITY INTERNATIONAL
BUSINESS SCHOOL
ACCOUNTING & FINANCE
CASE STUDY

MBA IB/3CMBA, Semester I

DR. DEEPMALA SONI

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 Name of Institution

CASE STUDY
1) From the ratios and other data set forth below for the auto accessories ltd. Indicate your
interpretation for the company’s financial condition.
Particulars Year 3 Year 2 Year 1

Current ratio 302 278 265

Acid-test ratio(per cent) 99 110 155
Working capital turnover (times) 3.25 3.00 2.75
Receivable turnover (times) 7.2 8.41 9.83
Collection period (days) 50 43 37
Inventory to working capital (per cent) 110 100 95
Inventory turnover (times) 5.41 6.01 6.11
Income per equity share (Rs) 2.5 4.05 5.10
Net income to net worth (per cent) 7 8.5 11.07
Operating expenses to net sales (per cent) 25 23 22
Sales increase during the year(per cent) 23 16 10
Cost of goods sold to net sales (per cent) 73 71 70
Dividend per share (Rs.) 3 3 3
Fixed assets to net worth (per cent) 22.7 18.0 16.4
Net profit on net sales (per cent) 2.0 5.09 7.03

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2) On 1st Feb. 2004, M ltd. Issued 10,000 ten years 5% debentures of

Rs. Each bearing interest at 5% per annum. One of the term of issue
was that the debentures could be redeemed by M ltd., at a premium of
2% by giving six month notice at any time after five years, either by
payment of cash or by allotment of shares and/ or other debentures
according to the option of the debentureholders. The necessary notice
was given og 1st March, 2009, informing the debentureholders about the
intention of the company to redeem the debentures on 1st September,
2009 either by payment of cash r by allotment of 8% preference shares
of Rs.100 each at Rs. 120 per share or debentures of Rs. 100 each
bearing interest at 4% per annum issued at Rs. 98 each. Holders of
2000 debentures accepted preference shares, holders of 4,900
debentures accepted the offer of the 4% debentures and the rest
demanded cash. Pass the journal entries recording the above
transactions in the books of M Ltd.

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3) A company offers 10.000 shares to the public. The amount payable is

as follows:
On application Rs. 3 per share
On allotment Rs. 3 per share
On I call Rs. 2 per share
On II call Rs. 2 per share
Applications were received for 15,000 shares. The directors mamake
the allotment as follows:
No allotment to application for 3,000 shares
Rest allotted on pro rata basis.
All calls were duly made and paid except
A, a holder of 100 shares fails to the two calls with allotment
B, a holder of 200 shares fails to pay the I and II calls
C, a holder of 100 shares fails to pay the II call
Pass the necessary journal entries in the books of the company.

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 Name of Institution

AMITY INTERNATIONAL BUSINESS

SCHOOL

FINANCIAL MANAGEMENT
ASSIGNMENT

IMBA /3CBBA, Semester I

DR. DEEPMALA SONI

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 Name of Institution

1) Calculate the net present value for a small sized project requiring an' initial
investment of Rs.20,000,00 and which provides a net cash inflow of
Rs.4,00,,000 each year for six years. Assume the cost of funds to be 8% p.a.
and that there is no scrap value.

2) The Alpha Co. Ltd. is considering the purchase of a new machine. Two
alternative machines [A and B] have been suggested, each having an initial
cost of Rs.4,00,000 and requiring Rs.20,000 as additional working capital at
the end of the 1st year. Earnings after taxation are expected to be as follows:
Cash Inflows
Year Machine A Machine B
1 Rs. 40,000 Rs. 1,20,000
2 1,20,000 1,60,000
3 1,60,000 2,00,000
4 2,40,000 1,20,000
5 1,60,000 80,000

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The company has target of return on capital of 10% and on this basis, you are
required to compare the profitability of the machine and state which
alternative you consider financially preferable.

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3) S Ltd. has Rs, 10,00,000 allocated for capital budgeting purposes.

The following proposals and associated profitability indices have been
determined:

Project Amount Rs. Profitability Index

1 3,00,000 1.22
2 1,50,000 0.95
3 3,50,000 1.20
4 4,50,000 1.18
5 2,00,000 1.20
6 4,00,000 1.05
Which of the above investments should be undertaken?
Assume that projects are indivisible and there is no alternative use of
the money allocated for capital budgeting.

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4) Why is the consideration of time important in financial decision-making ?

How can time value be adjusted? Illustrate your answer.
5) “… the function of financial management is to review and control decisions
to commit or recommit funds to new or ongoing uses. Thus, in addition to
raising funds, financial management is directly concerned with production,
marketing and other functions within an enterprise whenever decisions are
made about the acquisition or destruction of assets” Elucidate.

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