SMU MBA SEM 3 FINANCE WINTER 2014 ASSIGNMENTS

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MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

1 Financial markets bring the providers and users in direct contact without any intermediary. Financial markets permits the businesses and governments to raise the funds needed by sale of securities. Describe the money market/capital market – features and its composition.

Money market- features and composition

Capital market-features and composition

2 Risk is the likelihood that your investment will either earn money or lose money. Explain the factors that affect risk.

Mr. Rahul invests in equity shares of Wipro. Its anticipated returns and associated probabilities are given below:

Return	-15	-10	5	10	15	20	30
Probability	0.05	0.10	.15	0.25	0.30	0.10	0.05

You are required to calculate the expected ROR and risk in terms of standard deviation.

Explanation of all the 4 factors that affect risk

Calculation of expected ROR and risk in terms of standard deviation

3 Explain the business cycle and leading coincidental & lagging indicators. Analyse the issues in fundamental analysis.

Explanation of business cycle-leading coincidental and lagging indicators

Analysis and explanation of the issues in fundamental analysis all the four points

4 Discuss the implications of EMH for security analysis and portfolio management.

Implications for active and passive investment

Implications for investors and companies

5 Explain about the interest rate risk and the two components in it.

An investor is considering the purchase of a share of XYZ Ltd. If his required rate of return is 10%, the year-end expected dividend is Rs. 5 and year-end price is expected to be Rs. 24, Compute the value of the share.

Introduction of interest rate risk

Explanation of two components of interest rate risk

Calculation of value of the share

6 Elucidate the risk and returns of foreign investing. Analyse international listing.

Explanation of all the points in risks and returns from foreign investing

Introduction of international listing

MF0011 & MERGERS AND ACQUISITIONS

1 Elaborate on the basic steps in organizing a merger and explain on the five stage model of mergers and acquisitions.

Explanation of basic steps in organizing a merger

Explanation of five stage model of mergers and acquisitions.

2 Synergy is the additional value that is generated by the combination of two or more than two firms creating opportunities.

Explain the role of industry life cycle and pre requisites for creation of synergy.

Explanation of the role of industry life cycle

Explanation of prerequisites for creation of synergy

3 Corporate restructuring is a broad based business initiative that results in major change of size, ownership, control and/or management.

Write down the characteristics of corporate restructuring and explain the types of corporate restructuring.

Explanation of characteristics of corporate restructuring

Explanation of types of corporate restructuring

4 Leveraged Buyouts (LBO) is a financing technique of purchasing a private company with the help of borrowed or debt capital.

Explain the modes of LBO financing and governance aspects of LBOs.

Explanation of modes of LBOs

Governance aspects of LBOs

5 Joint Ventures (JV) have become an important strategic option for many businesses. Give the meaning of JV with example. Explain the characteristics of Joint Ventures. Also explain the Rationale for Joint Ventures and alternatives to JV’s as expansion strategy options with example.

Meaning of JV with example

Characteristics of JV

Explanation of rationale for JVs

Explanation of alternatives to JVs as expansion strategy options with example

6 Amalgamation is the nature of merger is an amalgamation/consolidation which satisfies/ meets the following conditions. Explain the two methods of amalgamation.

Explain the treatment of Goodwill arising on Amalgamation and treatment of reserves of amalgamation.

Explanation of two methods of amalgamation

Explanation of treatment of goodwill arising in amalgamation

Explanation of treatment of reserves of amalgamation

MF0012 & TAXATION MANAGEMENT

1 Explain the objectives of tax planning. Discuss the factors to be considered in tax planning.

Objectives of tax planning

Factors in tax planning

2 Explain the categories in Capital assets.

Mr. C acquired a plot of land on 15th June, 1993 for 10,00,000 and sold it on 5th January, 2010 for 41,00,000. The expenses of transfer were 1,00,000.

Mr. C made the following investments on 4th February, 2010 from the proceeds of the plot.

a) Bonds of Rural Electrification Corporation redeemable after a period of three years, 12,00,000

b) Deposits under Capital Gain Scheme for purchase of a residential house 8,00,000 (he does not own any house)

Compute the capital gain chargeable to tax for the AY2010-11.

Explanation of categories of capital assets

Calculation of indexed cost of acquisition

Calculation of long term capital gain

Calculation of taxable long term capital gain

3 Explain major considerations in capital structure planning. Write about the dividend policy and factors affecting dividend decisions.

Explanation of factors of capital structure planning

Explanation of dividend policy

Factors affecting dividend decisions

4 X Ltd. has Unit C which is not functioning satisfactorily. The following are the details of its fixed assets:

Asset	Date of acquisition	Book value (Rs. lakh)
Land Goodwill (raised in books on 31st March, 2005) Machinery Plant	10th February, 2003 5th April, 1999 12th April, 2004	30 10 40 20

The written down value (WDV) is ` 25 lakh for the machinery, and 15 lakh for the plant. The liabilities on this Unit on 31st March, 2011 are 35 lakh.

The following are two options as on 31st March, 2011:

Option 1: Slump sale to Y Ltd for a consideration of 85 lakh.

Option 2: Individual sale of assets as follows: Land ` 48 lakh, goodwill ` 20 lakh, machinery 32 lakh, Plant 17 lakh.

The other units derive taxable income and there is no carry forward of loss or depreciation for the company as a whole. Unit C was started on 1st January, 2005. Which option would you choose, and why?

Computation of capital gain for both the options

Computation of tax liability for both the options

Conclusion

5 Explain the Service Tax Law in India and concept of negative list. Write about the exemptions and rebates in Service Tax Law.

Explanation of Service Tax Law in India

Explanation of concept of negative list

Explanation of exemptions and rebates in Service Tax Law

6 What do you understand by customs duty? Explain the taxable events for imported, warehoused and exported goods. List down the types of duties in customs

An importer imports goods for subsequent sale in India at $10,000 on assessable value basis. Relevant exchange rate and rate of duty are as follows:

Particulars	Date	Exchange Rate Declared by CBE&C	Rate of Basic Customs Duty
Date of submission of bill of entry	25th February, 2010	45/$	8%
Date of entry inwards granted to the vessel	5th March, 2010	49/$	10%

Calculate assessable value and customs duty.

Meaning and explanation of customs duty

Explanation of taxable events for imported, warehoused and exported goods

Listing of duties in customs

Calculation of assessable value and customs duty

MF0013 & INTERNAL AUDIT AND CONTROL

1 Define and explain the term auditing. “Personal qualities of an auditor are important for the successful conduct of audit”. Comment

Definition of auditing

Explanation of auditing

Qualities of an auditor

2 Write the key objectives of a good internal audit system. Narrate the points of dissimilarities between external audit and internal audit.

Key objectives of a good internal audit system

Dissimilarities between external audit and internal audit.

3 Give the role of internal auditor in the Company’s Management. List down the duties of auditor Under Section 581ZG.

Role of internal auditor in the company’s management

Duties of auditor u/s 581ZG

4 The effectiveness of the internal control system can be ensured if the important aspects of the company’s operations are kept in mind.

Explain the characteristics of an effective internal control system. Write the elements of internal control.

Characteristics of an effective internal control system

Elements of internal control

5 Describe general EDP controls. Explain the appraisal of accounting system and related internal control.

General EDP controls

Appraisal of accounting system and related internal control.

6 Explain the internal control systems in insurance companies. Write down about the reporting internal control weaknesses.

Internal control systems in insurance companies

Reporting internal control weaknesses

MB0050 RESEARCH METHODOLOGY

1 Research is a sequential method of enquiry, directed towards a clear implicit or explicit objective. Describe in detail the steps to be carried out in a typical research study.

Meaning of Research

Listing the steps

Explanation of the steps in a research study

2 What are descriptive research designs? Explain the different kinds of descriptive research designs.

Meaning of Descriptive Research designs

Kinds of Descriptive research designs

3 The procedure of testing hypothesis requires a researcher to adopt several steps. Describe in brief all such steps.

Meaning of hypothesis

Steps in testing hypothesis

4 a. Distinguish between:

i. Schedules and Questionnaires

ii. Open ended and closed ended questions

b. Explain the questionnaire design process.

a. Differences

b. Questionnaire design process

5 a. What is the analysis of variance? What are the assumptions of the technique? Give a few examples where the techniques could be used.

b. The following data represents the number of units produced by four operators during three different shifts:

Shifts	Operator
	A	B	C	D
I	10	8	12	13
II	10	12	14	15
III	12	10	11	14

Perform a two-way analysis of variance and interpret the result.

a. Meaning, Assumptions and examples

b. Formulas, Calculation, Solution and Interpretation to the problem

6 Explain the Structure of the Research Report. What are the guidelines for effective report writing?

Explanation of the Structure of the Research Report

Guidelines for effective report writing

MB0051-Legal Aspects of Business

1 “Discharge refers to the termination of contractual relationship between the parties”. Explain the statement along with different modes of discharging a contract.

Explanation of service positioning

Explanation of modes

2 Explain the meaning of Power of Attorney, its types and clause related to registration.

Meaning

Types

Registration

3 Explain the procedure of registration of partnership firms.

Explanation

4 What are the circumstances under which breach of condition is treated as breach of warranty?

Explanation

5 Explain the procedure for filing a complaint and admission of complaint in consumer protection act.

Filing a complaint

Admission of complaint

6 Write short notes on:

a) Shares and its classification

b) Meetings and its classification

a) Meaning and classification

b) Meaning and classification