rd october.., 2020 - dsatm.edu.inthird semester – second assignment-(2019-21 batch)...

DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82

DEPARTMENT OF MANAGEMENT STUDIES

Third Semester – First Assignment-(2019-21 Batch)

18MBAFM301–Banking and Financial Services

Submission Deadline: 23rd October.., 2020

Course Outcomes:

1. Understand the functioning of Investment banking 2. Be aware of operation connected with depositories and custodians 3. Know how financial services like factoring, venture capital, leasing and hire purchase are provided in

the financial system.

4. Understand the working of Housing finance and non-banking finance companies. 5. Identify the developments happening in micro finance, credit rating and securitization system.

Note: Answerthe following Questions:

*Weightage CL* CO*

1. a. What is Underwriting? 2 1 1

b. Explain the features of SEBI (Depositary & Participant) Regulation Act. 6 2 2

c. Narrate specific SEBI guidelines touching upon issue management. 8 3 1

2. a. Define reverse Mortgage. 2 1 4

b. Distinguish Between commercial banking and merchant banking. 6 2 1

c. Discuss the guidelines for merchant bankers issued by SEBI. 8 3 1

3. a. What is housing finance? 2 1 4

b. Explain the services offered by a depository. 6 2 2

c. Explain the code of conduct for merchant bankers as per SEBI Act. 8 2 1

4. a. What is dematerialization? List its advantages. 2 1 2

b. Write a note on of NHB and LICHFL. 6 3 4

c. Write a note on regulation of Capital Market. 8 3 1

5. a. Write a note on NSDL. 2 3 4

b. Define a Depositary system & explain the advantages of its system. 6 2 4

c. Explain the procedure of housing finance 8 2 4

6. ABC Co. Pvt. Ltd. has been in the business of furniture manufacturing for the past 8 years and has been

growing steadily since 3 years with at least a return of 12% ROI on an average. The company wants to

expand further and become a public limited company by investing further 120 crores for expansion. The

CEO is contemplating on an IPO to raise about half of the requirement and the other half through issue of

6 lakh 8% debentures of Rs.1000 each at par.

a. Advice the CEO regarding the decision taken by him, as per the

regulations of SEBI. 2 3 1

b. Highlight the Pre & Post issue process of public issue of shares. 6 3 1

Note: *Weightage based on Marks allocated to questions during VTU Semester Exams

*CL-Cognitive Learning Levels (CL): Remember (1), Understand (2), Apply (3)

*CO- Course Outcomes



Third Semester – Second Assignment-(2019-21 Batch)

18MBAFM301–Banking and Financial Services

Submission Deadline: 12th November, 2020

Course Outcomes:

1. Understand the functioning of Investment banking 2. Be aware of operation connected with depositories and custodians 3. Know how financial services like factoring, venture capital, leasing and hire purchase are provided in

the financial system.

4. Understand the working of Housing finance and non-banking finance companies. 5. Identify the developments happening in micro finance, credit rating and securitization system.

Note: Answer the following Questions:

*Weightage CL* CO*

1. a. What is venture capital? 2 1 3

b. Distinguish between operating lease and financial lease. 6 2 3

c. Discuss microfinance delivery mechanisms in detail. 8 3 5

2. a. What is meant by leveraged lease? 2 1 3

b. Discuss the features of venture capital. 6 3 3

c. Explain the types of leases. 8 2 3

3. a. What is Pass Through Certificate? 2 1 5

b. Compare leasing and Hire purchasing. 6 2 3

c. What is securitization? Explain the process in detail. 8 1 5

4. a. What is credit rating? 2 1 5

b. Discuss the process of credit rating. 6 3 5

c. Explain the mechanism of international factoring 8 2 5

5. a. Mention the players involved in securitization of debts. 2 1 5

b. Discuss the mechanism of factoring. 6 3 3

c. Distinguish between factoring and forfeiting. 8 2 3

6. XYZ Builders Ltd. need to acquire the use of a crane for their construction business, and are considering

buying or leasing the crane. The crane costs Rs 1,000,000 and is subject to the straight line method of

depreciation to a zero salvage value at the end of 5 years. In contrast, the lease rent is Rs. 220,000 per

year to be paid in advance each year for 5 years. XYZ Builders Ltd can raise the debt at 14 percent

payable in equal installments, each installment due at the beginning of the year. The company is in the

50% tax bracket.

a. Should it lease or buy the crane. (Show all the calculations / workings

legibly) 8 3 3






Third Semester – First Assignment- (2019-21 Batch)

18MBAFM302–Subject name: Investment Management

Submission Dead line: 24/09/2020

Course Outcomes:

1. Understand the process of investments.

2. Get an insight into functioning of stock markets in India and abroad.

3. Have insight into the relationship of the risk and return.

4. Have familiarity of the fundamental and technical analysis.

5. Learn the Theories of Portfolio management and also the tools and techniques for efficient portfolio

management Note: Answer any the following Questions

Q.

No Questions

*Weight

age

C

L

C

O

1 a What do you mean by Investment? 3 1 1

b What are the various investment attributes? 7 1 1

c Discuss the investment process in detail. 10 3 1

2 A Differentiate between financial and economic investment. 3 1 1

B

The returns of two assets under 4 possible states of nature are given below:

Probability R1 R2

0.1 3% 4%

0.3 18% 4%

0.5 12% 16%

0.1 210% 222%

a. What is the standard deviation of the return of R1 and R2? b. What is the covariance between the returns on R1 and R2? c. What is the co-efficient of correlation between the return on returns on R1 and R2?

7 3 3

C

You have been given the following information:

Year Return (X) Return on (Y)

2000 0.2 0.1

2001 0.3 0.2

2002 0.4 0.3

2003 0.4 0.5

2004 0.6 0.5

a. What is the beta value? b. What is the alpha value? c. What is the coefficient of correlation? d. What is the coefficient of determination?

10 3 3

3 A Define securities market. 3 2 2

B Differentiate between Investment and speculation. 7 2 2

C Discuss the various participants in security market. 10 2 2

4 A Discuss the concept of risk and return. 3 1 3

B

A portfolio consists of 5 securities, A, B, C, D & E. The returns of these securities are as

follows; 17%, 18%, 23%, 15% and 14% respectively. The respective SD are 5%, 7%, 9%,

4% and 6%. The securities A, B, C, D and E are invested in proportion of 12%, 18%, 16%,

25%, 20%. The coefficients of correlation between securities are as follows:

A-B=0.8 B-C=0.65 C-D=0.65 D-E=0.75

A-C=0.6 B-D=0.5 C-E= 0.55

A-D= 0.7 B-E=0.7

A-E= 0.75

7 2 3

Calculate the risk and return of portfolio.

C Discuss the trading and settlement procedure adopted by exchanges. 10 2 2

5 A State the methods of Index calculation. 4 2 2

B

The returns on securities A and B under 5 possible situations are given below. Compute co-

variance between the returns of security A & B.

Situation Probability Return A Return B

1 0.1 -10% 5%

2 0.3 15% 12%

3 0.3 18% 19%

4 0.2 22% 15%

5 0.1 27% 12%

8 3 3

C

Given below are the financial data relating to two scrips in the pharmaceutical industry with a

paid up value of Rs. 10/- per share.

Year 2000 2001 2002 2003 2004

Particulars A B A B A B A B A B

Face value 10 10 10 10 10 10 10 10 10 10

Book value 15.12 26.29 17.60 28.99 19.98 36.73 23.26 41.05 25.04 47.18

EPS 2.78 2.26 5.48 2.96 5.87 8.97 8.06 6.90 6.28 9.13

DPS 2.40 1.00 3.00 2.00 3.50 3.00 4.00 4.00 1.50 3.00

a. Based on the data presented calculate(i) Standard deviation of scrip A (ii) Standard deviation of scrip B (iii)coefficient of variation of scrip A (iv) coefficient of variation

of scrip B

b. Identify the scrip to be selected giving reasons.

8 3 3

*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams





III Semester – Second Assignment- (2019-21 Batch)

18MBAFM302–Subject name: Investment Management

Submission Date: 20/11/2020

Course Outcomes:

1. Understand the process of investments.

2. Get an insight into functioning of stock markets in India and abroad.

3. Have insight into the relationship of the risk and return.

4. Have familiarity of the fundamental and technical analysis.

5. Learn the Theories of Portfolio management and also the tools and techniques for efficient portfolio

management Note: Answer any the following Questions

Q.

No Questions *Weightage CL CO

1 A State the bond characteristics. 3 1 3

B Discuss the changing complexion of Bond market in India. 7 2 3

C State the relation between covariance and correlation. 10 1 3

2 A State the valuation formula for a bond which pays interest semi-annually. 3 1 3

B Briefly describe the different types of corporate bonds. 7 3 3

C Describe the key features of the methodology used for debt ratings. 10 2 3

3 A

A Rs 100 par value bond bearing a coupon rate of 12 percent will mature after five

years. What is the value of the bond, if the discount rate is 15 percent? 3 3 3

B

The market price of a Rs. 1,000 par value bond carrying a coupon rate of 14

percent and maturity after five years is Rs. 1050. What is the yield to maturity on

this bond? What is the approximate YTM? What will be the realized yield to

maturity if the reinvestment rate is 12 percent?

7 3 3

C Discuss the following theories: expectations theory, liquidity preference theory,

and preferred habitat theory. 10 2 4

4 A What is efficient portfolio? 3 1 5

B

The stocks of LG limited perform relatively well compared to other stocks during

recessionary periods. The stock of Samsung ltd., on the other hand does well

during growth periods. Both the stocks are currently selling for Rs. 100/share. The

financial analyst’s assessments of the rupee return (dividend plus price) of these

stocks for the next years are as follows:

Economic Condition

High Growth Low growth Stagnation Recession

Probability 0.3 0.4 0.2 0.1

Return (LG) 100 110 120 140

Return (Samsung) 150 130 90 60

7 3 5

C

The following table gives an analyst’s expected return on two stocks for particular

market returns:

Market Return Aggressive stock Defensive stock

6% 2% 8%

20 30 16

a. What are the betas of the two stocks?

b. What is the expected return on each stock if the market return is equally likely

to be 6% or 20%?

c. If the risk free rate is 7% and the market return is equally likely to be 6% or

20%, what is SML?

d. What are the alphas of the two stocks?

10 3 3

5 Following information is provided regarding the performance of Blue-chip fund,

Leading sector fund and Contra fund for a period of last 6 months. Risk free rate of

interest is assumed to be 5%, Rank the find with the help of:

a) Sharpe index and discuss

b) Treynor’s index and discuss

c) Discuss between open ended and close end mutual funds

d) Give a brief explanation of NSE nifty

Rp SDp Beta

Blue Chip 25.38 4 0.23

Leading Sector 25.11 9.01 0.56

Contra 25.01 3.55 0.59

20 3 4




DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT

UDAYAPURA, KANAKAPURA ROAD, BANGALORE-82


Third Semester – First Assignment--(2019-21 Batch)

18MBAFM303--Direct Taxation

Submission Dead line: 30th October 2020

Course Outcomes:

The students will be able to

1. To provide the students the comprehensive understanding of basic concepts of Income Tax.

2. To understand the computation of Total Income under Different heads.

3. To know the deductions available while computing the Income.

4. To Understand Corporate Taxation System in India.

Note: Answer the following Questions

Q. No Questions *Weightage CL CO

1. a. Explain Tax Planning and Tax Management 2 1 CO1

b. Differentiate between capital expenditure and capital receipt. 6 1 CO1

c. What are the income that does not become part of Total Income 8 3 CO2

2.

a. Define Salary and Explain the different Perquisites. 2 1 CO1

b. What are the Taxable allowances? 6 2 CO2

c.

Dr. Satish is medical practitioner. He gives you the following summary

of cash book for the year ended 31/3/2020:

Rs Rs

To Balance 10,000 Rent of clinic 18,000

To Consultant fee 60,000 Purchase of

medicine

38,000

To Visiting fee 45,000 Staff salaries 24,000

To Gifts and presents 8,000 Surgical

equipments

40,000

To Sale of medicine 42,000 Motor car

expenses

8,000

To Dividend from

UTI

6,000 Purchase of

motorcar

1,40,000

To Life Insurance

Maturity

1,00,000 Household

expenses

7,000

To Interest from

National defence

bonds

6,000

Closing balance 2,000

2,77,000 2,77,000

Other information:

I. 50% of the motor car expenses incurred in connection with profession. Car was purchased in December 2019.

II. Household expenses include Rs 6,800 for life insurance premium.

III. Gifts and presents include Rs 3,000 from relations.

8 3 CO2

3. a. Define the term Capital Asset with examples. 2 1 CO1

b.

Mr. Nixon an American citizen was appointed as a senior scientific

officer in India on 1st April 2012. On 31st Jan 2015 he went to Uganda

on deputation for a period of 3 years but left his wife and children in

India. On 1st may 2018, he came to India and took with him his family

to Uganda on 30th June 2018. He returned to India and joined his

original job on 15th Feb. 2019. What would be the residential status of

Mr Nixon for the income tax purpose for the A.Y 2020-2021?

6 3 CO3

c. Explain the allowances and Dis-allowances with respect to Income

from Business and Profession. 8 2 CO3

4. a. State the provision relating to Sec 32 of Income Tax Act. 2 2 CO3

b.

After serving for 33 years and 9 months in Bharath chemicals ltd. Mr.

X who is covered under the payment of Gratuity Act retires from

service on 30th November 2019. The employee gets a Gratuity of

Rs 9, 00,000. His monthly Basic Salary is Rs 30,000, DA Rs 9000 pm

and HRA Rs 4500/-.You are required to calculate the taxable Gratuity

for the AY 2020-2021.

6 3 CO3

c.

1. Smt Kumudha is drawing a monthly salary of Rs 10,000/- and entertainment allowance of Rs 1750pm from a ltd company. She

is also getting conveyance allowance of Rs 1200pm. Bonus equal

to 2 months salary and Commission equal to one month pay.

During the PY she paid Rs 2000 as employment tax. She is

provided with a rent free furnished house by the company at

Jaipur. The company is paying Rs 60,000 p.a as Rent for this

house and Rs 9000 pa for furniture and fittings. The electric and

water charges amounting to Rs 18,000/- are also borne by the

company in respect of this house. She is also provided with lunch

by the company during the working hours at work place. The cost

of meals Rs 80/- per meal for 3000 days. During the PY the

company recovered Rs 20/- per meal from her. From the above

information calculate the taxable Salary of Smt Kumudha for AY

2020-2021.

8 3 CO2

5. a. Explain the Residential Status of the Individual as per IT Act. 2 1 CO1

b.

X owns the following assets on April, 1 2019:

Assets Written down

value on April 1,

2019 {Rs}

Rate of

depreciation

Furniture 20,170 10%

Building 9,00,500 10%

Plant and

Machinery

2,10,000 20%

Plant and

Machinery

64,00,000 15%

Plant and

Machinery

2,05,000 40%

During the PY 2019-2020, the following assets are purchased by

X:

Determine the amount of deprecation for the AY 2020-2021

.

Date of

purchase

Date when

the assets is

put to use

Asset Cost Rs. Rate of

depreciation

(%)

October 1,

2019

October 9,

2019

Trade mark 15,000 25

June 20,

2019

June 22,

2019

Plant

(Second-

hand)

1,90,000 40

November

30, 2019

December

1, 2019

Foreign made

car

1,40,000 15

December

6, 2019

December

10, 2019

Books for

professional

use

2,700 100

6 3 CO2

c.

Mr. Om Prakash was a manager in a company. He retired from service

on 30/11/2019 after completing 25 years of service. From 01/08/2019

his pay scale was Rs 18,000-700-24300 and he was getting DA of Rs

1800 pm which was treated as Salary for the purpose of retirement

benefits. He had 7 months earned leave to his credit. On the basis of 30

days per year which was accrued, He was paid Rs 1, 32,300 as Salary

and Rs 12,600 as DA. Compute the taxable earned leave for the AY

2020-2021.

8 3 CO2

6 a.

Explain the computation of Taxable House Property and Define

Sec(24) in detail.

4 2 CO2

b.

2. The following is the P&L account of Mr. X for the year ended on 31/3/2020. Compute his taxable income from business for that

year:

Rs Rs

Opening stock 15,000 Sales 1,80,000

Purchases 40,000 Closing stock 20,000

Wages 20.000 Gift from father 10,000

Rent 46,000 Sale of car 17,000

Repairs of car 3,000 Income tax

refund

3,000

4 3 CO3

Medical expenses 3,000

General expenses 10,000

Depreciation of car 4,000

Profit for the year 89,000

2,30,000 2,30,000

Following further information is given:

a) Mr. X carries on his business from a rented premises half of which is used as his residence.

b) Mr. X bought a car during the year for Rs 20,000. He charged 20% depreciation on the value of the car. The car was sold

during the year for Rs17,000. The use of the car was 3/4th for

the business and 1/4th for personal use.

c) Medical expenses were incurred during the sickness of Mr. X for his treatment.

d) Wages include Rs 250 per month on account of Mr. X’s driver for 10 months.







Third Semester – Second Assignment--(2019-21 Batch)

18MBAFM303--Direct Taxation

Submission Dead line: 30th November 2020

Course Outcomes:


1. To provide the students the comprehensive understanding of basic concepts of Income Tax.

2. To understand the computation of Total Income under Different heads.

3. To know the deductions available while computing the Income.

4. To Understand Corporate Taxation System in India.


Q. No Questions

*Weightage CL CO

1. a.

What are the conditions allowing for the deductions in Interest on

borrowed Capital u/s 24. 2 2 CO3

b.

Shri Anil Bhushan Gupta, working in Western India Limited, Mumbai,

has furnished the following details of his income for the year ended

March 31, 2020:

a) Salary Rs. 12,000 p.m. b) Bonus equal to Six months’ of salary. c) Transport Allowance (for coming to office & going back to his

residence) at Rs.650 p.m.

d) Entertainment Allowance @ Rs.500 p.m. e) Received House Rent Allowance of Rs.3,000 p.m from the

employer. But he paid a rent of Rs. 4,000 p.m.

f) Personal medical bills of Rs.10,000 were reimbursed by the employer. His treatment has been done in a private nursing home

not belonging to the employer.

g) His contribution to the company’s Recognised Provident Fund is Rs.18,000 and the employer contributes an equal amount. The

interest credited to the Provident Fund Account 9.5% p.a Rs.

12,000.

h) Interest on Government securities Rs.3,000. i) Income from units of Mutual Fund Rs.5,500 (Gross) j) Interest on Post office savings bank Rs.6,500 k) Donation paid to Prime Minister's Drought Relief Fund Rs.2,500

by cheque.

l) Donation paid to the Government for the promotion of family planning Rs.2,000.

m) Life Insurance Premium paid during the year Rs.4,200. Compute the total income of Shri Anil Bhushan Gupta for the A.Y

2020-21 and, also state the amount entitled to deduction u/s 80C.

6 3 CO2

c.

The following are the Particulars of Income of Mr Raman during PY

19-20

(i)Income from House Property Rs 1,11,200

(ii) Business income Rs 80,000

(iii) Dividends from co-operative society Rs 500

(iv) Long-term capital gain from

(i) Land Rs 1,27,000 (ii) Listed Shares sold through a recognised stock exchange Rs

45,000

(v) Life Insurance premium on his life on policy of

Rs.3,00,000 is Rs 28,000

(vi) Donation to charitable institution approved u/s 80G Rs

20,000

(vii) Deposit in a scheme notified u/s 80C Rs 10,000

(viii) Deposit in National Saving Scheme, 1992 Rs 12,500

(ix) Interest accrued on National Saving Certificate VIII issue

purchased in May, 2016 Rs 1,840

(x) Interest on saving bank deposit Rs 30,000

Compute his total income and tax payable for assessment year

2020-21.

8 3 CO2

2.

a. List out any seven property incomes that are exempted from tax. 2 1 CO1

b. Explain Intra head and Inter head setoff with Examples 6 2 CO2

c. Explain the tax Provision under Sec 16, Sec 24, sec 32,sec 54 , Sec

80C , Sec 80GGB and 80 U

8 2 CO3

3. a.

Name any six incomes taxed under the head income from Other

Sources. 2 1 CO1

b. Explain the Exemptions sec 54 under capital gains. 6 2 CO3

c.

From the following information compute the tax payable by Z & Co.

keeping in view the provision of MAT u/s 115JB for the A.Y 2020-21:

Profit and loss a/c

Particular Amount Particular Amount

Exp. Related to

export sales

Exp. Related to

other sales

Security

transaction tax

paid relating to

LTCG

Depreciation

Proposed

dividend

Income-tax

Net profit

7,20,000

16,00,000

5,000

1,50,000

2,50,000

1,00,000

4,00,000

Export sales

u/s 10A

Other sales

LTCG

[exempt u/s

10 (38)]

Interest on

Govt,.

securities

10,00,000

20,00,000

2,00,000

25,000

32,25,000 32,25,000

The company revalued its assets from Rs.3,00,000 to Rs.6,00,000 and provided depreciation on Rs. 6,00,000. The

depreciation allowable under the I.T Act is Rs.80,000.

B/F loss as per book of account Rs. 2,00,000.

8 3 CO4

B/F depreciation as per books of account Rs. 50,000.

B/F unabsorbed depreciation Rs. 1,00,000.

The company received export turnover u/s 10A Rs. 10,00,000 in India in convertible foreign within prescribed

time.

4. a. State the provision relating to Sec 80 E of income Tax Act. 2 1 CO3

b. Explain briefly the Provision u/s 80. 6 2 CO3

c. How to compute Taxable Income of the Company. Explain in detail. 8 2 CO4

5. a. Who is a specified employee. 2 1 CO1

b. What are the Income taxed under the Income from other Sources. 6 2 CO2

c.

Hari Kiran, a Chief Executive appointed on contract period of two year

by the company, furnishes the following particular of his income for

the financial year ending 31st March, 2020:

Compute his total income for the A.Y 2020-21. Rs

a}Basic pay and Dearness Allowance

…………………….4,80,000

b}Other allowances:

Education allowance for 2 children of the assessee…………4,200.

HRA………………………………………………………… 12,000.

Servant Allowance……………………………………………. 1,500

Gas, Electricity, Water Supply……………………………….. 1,500

Conveyance Allowance for private purpose………………… 6,000.

A. He resides in his own house, the annual letting value of which is Rs.18,000. The Municipal Tax thereon Rs.3,000 p.a.

B. Interest Income: Public Provident Fund Rs.1,000 National Saving Certificate VIII Issue (Accrued)

Rs.750.

On Fixed Deposit with Banks Rs.11,000 (Gross). D. He has invested the following amount out of his income:

a) deposited into Public Provident Fund (PPF) Rs.5300 b) Insurance premium paid on the life of:

Dependent son 2,000 Wife 2,000 Rs. 4,000

c) Deposit in National Saving Certificate VIII issue Rs. 5,000

3 CO2

6 a. Define MAT and how to compute Book Profit Under MAT . 4 2 CO4

b.

Mr. Ram had been living in a house which he purchased in 2000-2001

for Rs. 2,00,000. The house was acquired by the Government in July,

2019 and compensation of Rs.18, 00,000 was paid to him . He

4 3 CO3

purchased a residential house in Feb., 2020 at Rs. 4,40,000. The

additional compensation of Rs. 70,000 was given to him in March,

2020. If he sells the new residential house in October, 2020 at

Rs.5,60,000, compute the amount of capital gain , chargeable to tax for

the assessment year 2020-21.






III Semester – First Assignment (2019-21 Batch)

18MBAFM304– Advanced Financial Management


Course Outcomes:

1. Get an overview of capital structure theories 2. Understand and assess the dividend policy of the firm 3. Realize the importance of management of working capital in an organization. 4. Be aware of the techniques of cash, inventory and receivables management


Weightage * CL CO

1. a. Explain various short term sources to finance working capital. 3 1 1

b.

Assuming no tax and given the earnings before interest and taxes (EBIT),

interest @ 10% & equity capitalization rate (ke) below, calculation the total

market value of each firm.

Firm EBIT Interest Ke(%)

X 200000 20000 12

Y 300000 60000 16

Z 500000 200000 15

W 600000 240000 18

Also determine the weighted average cost of capital for each firm.

7 1 1

c. What are demerits of excess and inadequate investment in current assets? Show

how you will determine level of current assets with the help of graph. 10 3 1

2.

a.

The operating income is Rs 50000, cost of debt 10% and outstanding debt

200000. If the equity capitalization rate is 12.5%. What would be the total value

of the firm and the overall capitalization rate?

3 1 1

b. A debt financing is advisable to certain level and after that it is not, though the

cost of debt is cheaper to equity. Do you agree? Explain. 7 1 2

c.

The following information is available for two companies.

Particulars A ltd B ltd

Fixed assets 200000 800000

Current assets 800000 200000

Total assets 1000000 1000000

EBIT 100000 100000

You are required to compare the sensitivity of earnings of the two companies for

25% change in the level of current assets by calculating working capital

leverage.

10 2 2

3.

a.

Following information relating to MNC ltd as on 31st Dec 2007, CA=25000,

FA=75000. You are required to compute working capital leverage.

a) CA as on 31st Dec 2017 Rs 50000 b) CA as on 31st Dec 2017 Rs 15000.

3 1 1

b.

. In considering the most desirable capital structure of a company, the following

estimates of the cost of debt and equity (after tax) have been made at various

levels of debt-equity mix:

Debt as % of total capital

employed

Cost of debt (%) Cost of equity (%) 7 2 2

0 5.0 12.0

10 5.0 12.0

20 5.0 12.5

30 5.5 13.0

40 6.0 14.0

50 6.5 16.0

60 7.0 20.0

You are required to determine the optimal debt-equity mix for the company by

calculating the composite cost of capital.

c. State the sources of long term and short term working capital finance. 10 2 2

4. a. What do you mean by dividend policy? 3 1 2

b.

. Following information is available in respect of the firm:

Capitalization rate: 10%

Earnings per share EPS: 10

Assume rate of return on investment: 15%, 8% & 10%

Show the effect of dividend policy on the market price of shares using Walter

Model (dividend payout ratio can be 0%, 25%, 50%, 75%, and 100%.

In this model, assume cost of equity = Cost of capital

7 1 2

c. Following is the information relating to AB ltd, PQ ltd and XY ltd.

Particulars Rs in million

AB PQ XY

Current assets CA 350 400 480

Net fixed assets FA 200 250 120

Total assets TA 550 650 600

EBIT 800 900 1000

You are required to compute the working capital leverage (WCL)

30% decrease in the level of current assets of AB ltd

20% decrease in the level of CA of PQ ltd

10% decrease in the level of CA of XY ltd

10 3 2

5. The following information is available in respect of the rate of return on investment:

12%, the capitalization rate and earnings per share: 20 of H ltd.

Determine the value of the its share as per Gordon’s Model of dividend relevance,

Assuming the following:

Sl.No D/P ratio(1-b) Retention ratio(b) Ke(%)

1 10 90 20

2 20 80 19

3 30 70 18

4 40 60 17

5 50 50 16

6 40 60 15

7 30 70 14

20 3 1







III Semester – Second Assignment (2019-21 Batch)

18MBAFM304– Advanced Financial Management


Course Outcomes:

1. Get an overview of capital structure theories 2. Understand and assess the dividend policy of the firm 3. Realize the importance of management of working capital in an organization. 4. Be aware of the techniques of cash, inventory and receivables management


Weightage * CL CO

1. a. Define cash management. 3 1 1

b.

The management popular trader anticipates 1500000 in cash outlays during the next year

to convert marketable securities to cash. The marketable security currently earns 8%

annual return. The fixed cost for transaction amount 30. Find the total cost of managing

cash according to Baumols model.

7 3 3

c.

The ABC limited requires Rs 30lakh in cash to meet its transaction need during the next

3 months cash planning period. It holds marketable securities of an equal amount. The

annual yield on these marketable securities is 20% the conversion of these securities into

cash entails a fixed cost of Rs 3000 per transaction. Using Baumol model compute the

amount of marketable securities converted into cash per order. Assuming ABC limited

can sell its marketable securities in any of the five lot sizes Rs 150000, 300000, 600000,

750000&1500000. Prepare a table indicating the economic lot size using numerical

analysis.

10 3 3

2. a. Define Inventory Management. 3 1 4

b.

B ltd provides the following information about its liquidity:

Annual yield available on marketable securities is 12% on a daily basis. The yield ‘I’ using a 360 day in a year.250

The fixed cost affecting marketable securities; transaction is 1600.

Standard deviation = 5000

The management of B would like to maintain a minimum cash balance of 50000. Calculate RP and UCL.

7 3 3

c. Discuss and define the different cash management models. 10 2 4

3. a. What do you mean by lock box system? 3 1 4

b.

Solomon industries feel a lock-box system can shorten its accounts receivable collection

period by 3 days. Credit sales are estimated at Rs 365 lakh per year, billed on a

continuous basis. The firms opportunity cost of fund is 15%. The cost of lock box

system is Rs 50000.

Will you answer Solomon to go for lock-box system?

Will you answer be different if account receivables collection is reduced by 5 days?

7 3 4

c.

The current sales of pioneer company are Rs 100 million. The company classifies its

customers into 4 credit categories. Credit rating diminishes as one goes from category

one to four. It presently extends unlimited credit to customers in categories one and two.

Limited credit to category 3 and no credit to category 4. As a result of the credit policy

the company is foregoing sales to the extent of Rs 10 million to customers in category 3

and Rs 10 million to category 4. The firm is considering the adoption of more liberal

credit policy under which customers in category 3 would be extended unlimited credit

and category 4 with limited credit. Such relaxation would increase sales by Rs 15 million

on which the bad debt losses would be 10%. The contribution margin ratio for the firm is

20% and average collection period is 40 days past tax cost of fund is 10% and tax rate is

40%.What is the effect of relaxing credit policy on residual income?

10 3 3

4. a. What do you mean by EOQ? 3 1 3

b. 1. Economic enterprises require 90000 units of certain items annually. The cost

per unit is Rs. 3. The cost per purchase order is Rs. 300 and the inventory 7 3 4

carrying cost is Rs. 6 per unit per year.

a) What is the EOQ? b) What should the firm do if the supplier offers discounts at detailed below?

Order quantity Discount

4500-5999 2%

6000- above 3%

c. 1. Zeenath corporation currently provides 30 days of credit to its customers its present

level of sales is 50 million. The cost of capital is 10% and the ratio of variable cost

to sales is 0.85, it is considering extending its current period to 60 days. Such an

extension is likely to push sales up by Rs 5 million. The bad debt proportion on

additional sales would be 8%. The tax rate is 40% what is the effect of lengthening

the credit period on residual income.

10 3 4

5. On the basis of the following information. Prepare a cash budget for Khanna manufacturing

company for the first six month of 2008.

Prices and costs are assumed to remain constant.

Credit sales are 75% of the total sales.

The 60% of credit sales are collected after one month, 30% after two months and 10% after 3 months.

Actual and forecasted sales are as follows:

Actual Amount Forecast Amount

Oct.2007 120000 Jan.2018 60000

Nov.2007 140000 Feb.2018 80000

Dec.2007 160000 March. 2018 80000

April.2018 120000

May.2018 100000

June.2018 80000

July.2018 120000

The company expects a profit margin of 20%.

Anticipated sales of each month are purchased and paid in the preceding month. The anticipated operating expenses are as below:

Particulars Amount Particulars Amount

Jan 12000 April 20000

Feb 16000 May 16000

March 20000 June 14000

Interest on 12% debentures 100000 is to be paid in each quarter.

An advance tax of 20000 is due in April.

A purchase of equipment of 12000 is to be made in June.

The company has a cash balance of 40000 on 31st December 2017, which is the minimum balance to be maintained funds can be borrowed in multiples of 2000 on a

monthly basis at 18% per annum.

Interest is payable on the first of the month after borrowing.

Rent is 800 per month.

20 3 4




DEPARTMENT OF MANAGEMENT STUDIES DAYANANDA SAGAR ACADEMY OF TECHNOLOGY & MANAGEMENT BANGALORE -82

THIRD SEMESTER MBA Subject: Cost Management Subject code 18MBA FM305

FIRST ASSIGNMENT Due date: 24th October 2020

CO1 Understand various cost methods and techniques with their features, merits and demerits).

CO2 Demonstrate the application of cost sheet, marginal costing, budgetary control techniques, Activity based costing etc. with numerical problems .

CO3 Analyze the results after applying various costing methods and techniques.

CO4 Critically evaluate all traditional and non-traditional costing methods such as absorption costing, marginal costing and activity based costing.

1 Mks. CO

1a Write a note on Cost Accounting and Cost Management 3 1

b The following data has been extracted from the books of M/s.XYZ Ltd. for the year 2018.

Opening Stock: (Rs.000) Closing Stock: (Rs.000)

Raw materials 25,000 Raw materials 40,000

Work-in-progress 10,000 Work-in-progress 6,000

Finished goods 9,000 Finished goods 7,800

Other information

Purchases: Raw materials Carriage inwards

85,000 5,000

Office furniture Salary-Office Salary-Salesmen

100 2,500 2,000

Wages-Direct

Wages-Indirect

Other direct charges

75,000 10,000

15,000

Other factory expenses

Other office expenses

Advertisement

5700

900

2,000

Rent & rates – Factory

Rent &rates-Office

5,000 500

Sales

Carriage outward

250,000

1,000

Depreciation – Plant

Travelling expenses (Salesman)

Managing Director’s remuneration

1,500

1,100

12,000

Other selling expenses

Advance income tax paid

1,000

15,000

The MD’s remuneration is to be allocated as Rs 4,000,000 to the factory; Rs 2,000,000 to

the office and Rs 6,000,000 to the selling department. Prepare ‘cost sheet’ showing prime

cost, works cost, cost of production, cost of sales and net profit May/June 2010

7 1



C 8.Following information has been obtained from the records of ABC Co., for the period

December 2018. Prepare cost sheet.

Opening stock Rs. Closing stock Rs.

Raw materials 60,000 Raw materials 50,000

Work in progress 12,000 Work in progress 15,000

Stock of finished goods 90,000 Stock of finished goods 110,000

Other information

Purchase of raw material 480,000 Wages 240,000

Factory overheads 100,000 Administration overheads 50,000

Selling &distribution OH 25,000 Sales 1,000,000

10 1

2a Write a detailed note on classification of overheads 03 1

b M2-01 DEC09/Jan 10---08MBA32—1.C (simple direct method-adapted)

The following particulars have been extracted from Mayur Engineering works for the year ending 31.3.2018

Particulars Production department Service department

A B C X Y

Direct wages Rs 30,000 45,000 60,000 15,000 30,000

Direct materials Rs 15,000 30,000 30,000 22,500 22,500

Staff number 1,500 2,250 2,250 750 750

Electricity kwh 6,000 4,500 3,000 1,500 1,500

Asset value Rs 60,000 40,000 30,000 10,000 10,000

Light points 10 16 4 6 4

Area sq. mts 150 250 50 50 50

The expenses for the period were as follows

Power = Rs 1,100;; Stores overhead = Rs 800;; Depreciation = Rs 30,000

General overheads = Rs 12,000; Lighting = Rs 200; Welfare to staff Rs3,000

Repairs Rs 6,000; Rent and taxes Rs 550

Apportion the expenses of service department X in the ratio of 5:3:2 and that of Y in

proportion to direct wages to department A, B and C respectively.

07 1

c M2 04. Jan/Feb 2002, (adapted) From the following information work out the production hour rate of recovery of overheads in departments P1, P2 & P3:

Particulars Total Production Departments Service Departments

Rs. P1 Rs. P2 Rs. P3 Rs. S1 Rs. S2 Rs.

Rent 1,000 200 400 150 150 100

Electricity 200 50 80 30 20 20

Fire Insurance 400 80 160 60 60 40

Plant depreciation 4,000 1,000 1,500 1,000 300 200

Transport 400 50 50 50 100 150

Estimated working hours 1,000 2,500 1,800

10 1



Expenses of Services Department S1 and S2 are apportioned as under : P1 P2 P3 S1 S2

S1 30% 40% 20% --- 10%

S2 10% 20% 50% 20% ---

3a Write a brief note on allocation and apportionment of Overhead 03 1

b Write a detailed note on BEP-Application-advantages and disadvantages 07 1

c

M3 02 MBA 401 NS—June/ July 2004—(adapted)

From the following data calculate

1. BEP expressed in amount of sales in Rs. (BEP Rs.)

2. No of units that must be sold to earn a profit of Rs. 60,000/yr

3. How many units are to be sold to earn a net income of 10% of sales?

a. Sales price Rs 20/unit b. Variable mfg. costs Rs 11/unit c. Variable selling costs Rs 3/unit

d. Fixed factory overheads 540,000/yr e. Fixed selling costs 252,000/year f. SP 20/unit

10 2

4a Write a note on applications of marginal costing and how does it differ from Absorption costing.

03 1

4b Write a detailed note on Segmental reporting. 07 4

4c M3 06MBA32-Dec06/Jan07—5.C (adapted)

Y Ltd has just been incorporated and plans to produce a product that will sell for Rs 10/unit.

Mkt survey shows that the demand will be around 10,000 units per year.

The company has a choice of buying one of the two machines each of which has a capacity

of 10,000 units per year. M/c ‘A’ would have a fixed cost of Rs 30,000 per annum and would

yield profit of Rs 30,000 on sale of 10,000 units. M/c ‘B’ would have a fixed cost of Rs 18,000

per annum and would yield profit of Rs 22,000 per annum on sale of 10,000 units. Variable

costs behave linearly for both machines. Calculate

i) Break even sales for each machine

ii) Sales level where both machines are equally profitable

iii) Range of sales where one m/c is more profitable than the other

10 2

5 M3 10 2002 scheme-July 2007-08. Case Study (adapted) Bangalore International Products Ltd produces and sells 3 types of products A, B and C. A newly appointed manager Mr. Raj is of the opinion that one of the three products is not doing well and therefore discontinuing the same shall improve the profit of the organization. The company after going through the recommendations of Mr. Raj approached Ms. Sahana for advice. She is a qualified management accountant and has around 20 yrs of experience as consultant. She was of the opinion that discontinuing the product is not only non-profitable but also decreases the overall profits of the organization. Both of them relied upon the following information

10 2



Product SP/unit Rs Direct material/unit Rs

Direct wages/unit

Dept A Rs Dept B Rs Dept C Rs

P 300 60 20 15 10

Q 275 30 20 20 10

R 305 70 12 10 20

The absorption rates of overheads on direct wages are

Dept A Dept B Dept C

Variable overhead 150% 120% 200%

Fixed overheads 200% 240% 150%

1. Do you think Raj is justified in forming such a opinion ? How? 2. How prudent is the opinion of Sahana 3. If you were to be the Managing Director of the company, what will be your decision and why? 4. Why do you think that there was difference in their opinion? Note: Calculations must form part of your answers

- - - X - - -



SECOND ASSIGNMENT Due date: 14th November 2020

CO1 Understand various cost methods and techniques with their features, merits and demerits).

CO2 Demonstrate the application of cost sheet, marginal costing, budgetary control techniques, Activity based costing etc. with numerical problems .

CO3 Analyze the results after applying various costing methods and techniques.

CO4 Critically evaluate all traditional and non-traditional costing methods such as absorption costing, marginal costing and activity based costing.

1 Description Mks. CO

1a Write a brief note on Budgetary control 3 3

b M4-15-PRODUCTION AND SALES BUDGET A manufacturing company submits the following figures for the 1st quarter of 2018

Product X Product Y Product Z

Sales in units Jan Feb March

25,000 20,000 30,000

30,000 25,000 35,000

10,000 10,000 10,000

Selling price/unit Rs 10 Rs 20 Rs 40

Stock position 1st Jan2018 % of Jan 2018 sales

50%

50%

50%

Stock position 31st March, 2018 20,000 25,000 5,000

Stock position-end Jan & Feb % of subsequent month’s sales

50% 50% 50%

You are required to prepare the sales and production budget for the 1st quarter of 2019 with workings

07

c M5-01 :ABC Manufacturing Co has been using a cost system that allocates all factory overhead costs to products based on 350% of direct labor cost. The company has just decided to use Activity Based Cost system (ABC) that traces indirect costs to products based on consumption of major activities as indicated below

Activity Annual cost driver quantity

Cost Rs Product cost driver consumption

Labour Rs 3,00,000 30,000 Rs 10,000

Machining 20,000 hours 500,000 800 hours

Setup 10,000 hours 100,000 100 hours

Production order 2,000 orders 200,000 12 orders

Material handling 1000 requisitions 20,000 5 requisitions

Parts administration 12,000 parts 480,000 18 parts

Required Compare the total annual costs of the product using both the traditional volume-based and new ABC system

10 CO3



Solution

Cost system Pool rate Cost driver consumption

Cost assignment

Traditional cost system 35% Rs 10,000 Rs 35,000

ABC system

1. Labour 10% Rs 10,000 Rs 1,000

2. Machining Rs 25 per hour 800 hours 20,000

3. Setup Rs 10 per hour 100 hours 1,000

4. Production order Rs 100 per order 12 orders 1,200

5. Material handling Rs 20 per requisitions 5 requisitions 100

6. Parts administration Rs 40 per part 18 parts 720

Rs 24,020

2a Write a brief note Cost Audit 03 4

b Write a detailed note on Activity based costing 07 2

c M4-04 05MBA32 5C A company working at 50% capacity has incurred the following expenditure during the year

2005.

Rs.

Fixed expenses :

Rent and taxes

Depreciation

Salaries and other

105,000

122,000

146,000

Semi-variable expenses :

Maintenance and repairs

Indirect labour

Salesmen’s salary

Sundry expenses

30,000

124,000

36,000

32,000

Variable expenses :

Material

Labour

Sales commission

300,000

350,000

40,000

Sales at 50% capacity 1,200,000

It is further stated that semi-variable expenses remain constant between 35% to 65%

capacity. Then increase by 10% of the above figures between 65% to 80% capacity and by

15% above 80% up to 100% capacity. Fixed expenses remain constant for all levels.

Prepare a flexible budget and find out the profit/loss when the company works at 50%,

60%, 80% and 100% capacity. (10 Marks)

10 3

3a Write a brief report on purposes of Segmental reporting 03 4

b Write a detailed note on cost reduction and cost control 07 4

c Write a detailed note on steps in ABC costing, its advantages and disadvantages 10

4a Write a brief note on Management Audit 02 4

4b Write a detailed note on target costing 06 4

4c Hind General Corporation produces only one product which has the following cost.



Variable manufacturing costs Rs. 4 per unit

Fixed manufacturing costs Rs. 200,000 per year

The normal capacity is set at 200,000 units. There are no work-in-progress inventories in

2001, the company produced 200,000 units and sold 90% of them at a price of Rs. 7 per

unit. In 2002, the company produced 210,000 units and sold 215,000 units at the same

price. You are required to prepare income statements for 2001 and 2002 based on

absorption costing and marginal costing. June/July 2009

5 M4-16- 05MBA32-JULY 2007(adapted) XYZ Ltd. Manufactures a product P, uses a standard costing system. For getting 1000kg of finished

products P, the following are the inputs:

Material Qty in kg Rate per kg Total cost (Rs.)

A

B

C

800

200

200

2.50

4.00

1.00

2000

800

200

Normal loss 200 - -

Output 1000 3000

For the month of January 2006 the following information is available: Actual output 200,000kg.

Material Quantity (kg) Rate

A 157,000 2.40

B 38000 4.20

C 36000 1.10

Case Study: 20 marks

Nubo Manufacturing Inc., is engaged in the manufacture of a patented electronic

component. Present sales are direct to retailers. But in recent years there has been a

steady decline in output because of increasing foreign competition. The accounting

records showed decline in profits for past five years. The company considers that a profit

of Rs.80,000 should be achieved. The marketing director after a thorough review passes

on three proposals to you for evaluation and recommendation, together with profit and

loss account, for the year ending 31st Dec. 2005.

Nubo Inc., profit & loss a/c for the year ending 31-12-2005. .

Sales revenue (100,000 units @ Rs.10) 1,000,000

Factory cost of goods sold:

Direct materials 100,000

Direct labour 350,000

Variable factory overheads 60,000

Fixed factory overheads 220,000 730,000

Administration overheads 140,000

Selling & distribution overhead:

Sales commission (2% of sales) 20,000

10 CO3



Delivery costs (variable) 50,000

Fixed costs 40,000 980,000

Profit 20,000

The three proposals recommended are as follows:

i) 1) To proceed on the basis of analysis of market research indicating that the demand for

the product is such that a 10% reduction in selling price would increase demand by 40%.

2) That a price reduction of 10% together with an intensive advertising campaign

costing Rs. 30,000 may increase sales to 160,000 units.

3) A mail order company intends to purchase 50,000 units and it would transport the

product from Nubo Ltd., to its own warehouse and no sales commission would be

paid on these sales by Nubo Ltd., if negotiated price is acceptable. Nubo Ltd., agrees

to contribute Rs.60,000 per annum towards the fixed cost and also provide an

additional packaging cost of Rs.0.50 per unit.

You are required : a. To calculate the break-even sales based in 2005 accounts.

b. A financial evaluation of proposal (i) and a calculation of the number of units Nubo

Ltd. would required to sell at Rs.9 each to earn a target profit of Rs.80,000.

c. A financial evaluation of proposal (ii).

d. Quote the selling price for proposal (iii) to earn a target profit of Rs.80,000.

May/June 2010

- - - X - - -




Third Semester – First Assignment--(2019-21 Batch)

18MBAFM306- Project Appraisal Planning and Control

Submission Dead line: 30th October 2020

Course Outcomes:


1. To screen and Assess project Ideas

2. To Plan appraise and Evaluate implementation of Project.

3. To assess financial and social risk concerned with implementation of projects.

4. To Understand various aspect of Project Management



1. a. What a firm can do to stimulate the flow of project ideas. 2 2 CO1

b. Explain porter model of Profit potential 6 2 CO1

c. Which Key issues would you examine in Project Preliminary

Screening? 8 3 CO4

2.

a. What are the three components of cash flow 2 1 CO2

b. Explain the level’s of Decision making in Capital Budgeting Process. 6 1 CO1

c. Explain different Steps in Simulation analysis. 8 2 CO2

3. a. What are the sources of Secondary information? 2 1 CO4

b. Describe in Detail the phases of capital Budgeting process. 6 2 CO4

c. Explain briefly the parameters considered in technical analysis for

manufacturing type of a project. 8 3 CO1

4. a.

What are the principles that should be followed while estimating the

cash flow of a project. 2 3 CO2

b. What are the types of Risk? 6 2 CO2

c. Explain the Elementary Investment Strategies in capital Budgeting. 8 3 CO1

5. a. What are the three element of cash flow stream of the project? 2 2 CO2

b. Explain Project Rating Index with Illustration. 6 3 CO1

c. How to estimate project cash flows. 8 2 CO2

6 a. How do you estimate the cost of the project? 4 2 CO2

b. Explain Sensitivity analysis and Scenario Analysis 4 2 CO2

*Note: *Weightage based on Marks allocated to questions during VTU Semester Exams8






Third Semester – Second Assignment--(2019-21 Batch)

18MBAFM306 --Project Appraisal Planning and Control


Course Outcomes:


1. To screen and Assess project Ideas 2. To Plan appraise and Evaluate implementation of Project. 3. To assess financial and social risk concerned with implementation of projects.

4. To Understand various aspect of Project Management


Q. No Questions

*Weightage CL CO

1. a. Explain various methods of Demand forecasting. 2 2 CO2

b. Explain the project Review and Administrative aspects. 6 1 CO4

c. Explain the methods of Ranking in case of multiple projects. 8 3 CO2

2.

a. Explain the rationale for SCBA. 2 2 CO3

b. What do you mean by Environmental, Appraisal of Projects 6 2 CO3

c. What are the types and Dimensions of Projects? 8 3 CO4

3. a. Explain Abandonment Analysis. 2 1 CO3

b. Explain the qualitative factors in Capital Budgeting 6 2 CO2

c. Explain the forms of Project Organization. 8 2 CO4

4. a. Explain the meaning of shadow price. 2 2 CO3

b. Explain the meaning UNIDO approach to SCBA 6 2 CO3

c. Explain Strategic Planning and Financial analysis. 8 3 CO3

5. a. What is Post audit analysis. 2 2 CO4

b. What is agency problem and what is its impact on Project Decisions. 6 3 CO4

c. Explain the human aspect of Project Management. 8 2 CO4

6 a. What are the prerequisite for successful project implementation 4 2 CO4

b. Explain the Environment Impact Assessment and Environment impact

Statement. 4 3 CO3








18MBAHR301 – Recruitment and Selection

Submission Dead line: 14th Oct 2020

Course Outcomes:


1. Gain the insights of various principles and practices of recruitment and selection in an industry

2. Equip students with various selection procedure practiced in industry.

3. Develop students with latest selection tools in the corporate sector.

4. Develop students with various testing of job recruitment and selection

Note: Answer any the following Questions


1. a. Define job analysis. 2 1 CO1

b. Explain the purpose of job analysis in the HR department. 6 2 CO1

c. Briefly explain the critical incident technique of job analysis. State its

merits and demerits. 8 2 CO1

2.

a. Differentiate between recruitment and selection. 2 1 CO1

b. Explain the term position analysis questionnaire. How is it used in

recruitment and selection? 6 2 CO1

c. Explain the internal sources of recruitment .state the advantages &

disadvantages in terms of time, cost, quality and suitability. 8 2 CO3

3. a. Differentiate between job description and job specification 2 2 CO1

b. Write a detailed note on full time hiring. 6 2 CO2

c. Explain the various nature of hiring employed in the present day. 8 2 CO2

4. a. Define task analysis inventory. 2 2 CO1

b. Discuss the advantage & disadvantage of internal hiring. 6 2 CO3

c. Explain the various methods of data collection for job analysis. 8 2 CO1

5. a. Define recruitment. 2 1 CO1

b. Explain the task analysis inventory method of job analysis. 6 2 CO1

c. Recruitment is an ongoing process. Comment 8 3 CO3

6. Case Study

Tropical Storm Charley

In August 2004, tropical storm Charley hit North Carolina and the Optima Air Filter Company. Many

employees’ homes were devastated and the firm found that it had to hire almost 3 completely new

crews, one for each of its shifts. The problem was that the “Old-timers” had known their jobs so well

that no one had ever bothered to draw up job descriptions for them. When about 30 new employees

began taking their places, there was general confusion about what they should do and how they should

do it.

The storm quickly became old news to the firm’s out-of state customers- who wanted filters, not

excuses. Phil Mann, the firm’s President, was at his wits end. He had about 30 new employees, 10 old-

timers, and his original factory supervisor, Maybelline. He decided to meet with Linda Lowe, a

consultant from the local universities business school. She immediately had the old-timers fill out a job

questionnaire that listed all their tasks, duties & responsibilities. Arguments ensued almost at once-

Both Phil & Maybelline thought the old-timers were exaggerating to make themselves look more

important, and the old-timers instead that the list faithfully reflected their duties. Meanwhile, the

customers clamoured for their filters.

Questions

a.

Should Phil & Linda ignore that old-timers’ protests and write up the job

descriptions as they see fit? Why? Why not? How would you go about

resolving the differences? 4 3 CO1

b. How would you have conducted the job analysis? What should Phil do

now? 4 3 CO1







Third Semester –Second Assignment- (2018-20 Batch)

18MBAHR301 – Recruitment and selection


Course Outcomes:


1. Gain the insights of various principles and practices of recruitment and selection in an industry

2. Equip students with various selection procedure practiced in industry.

3. Develop students with latest selection tools in the corporate sector.

4. Develop students with various testing of job recruitment and selection



1. a. What do you mean by employee referral? 2 1 CO3

b. Explain the advantages and disadvantages of external hiring. 6 2 CO3

c. Describe the different types of tests in the recruitment. 8 2 CO5

2.

a. Define external recruitment. 2 1 CO3

b. Describe the contents of appointment letter. 6 2 CO5

c. Describe the sources of external hiring. 8 2 CO3

3. a. Define Applications Blanks. 2 2 CO4

b. Outline the importance of reference checking. 6 2 CO5

c. Explain the steps in the interview process 8 2 CO4

4. a. Define testing 2 2 CO4

b. Describe weighted application blank with advantages and disadvantages. 6 2 CO4

c. Bring out the difference between CV & resume. 8 2 CO4

5. a. Define reference check. 2 1 CO5

b. Write a note on methods of medical examination of a candidate. 6 2 CO5

c. Discuss job advertisement, drafting and size & contents. 8 2 CO4

6 a. Prepare a CV for your desired job for a reputed organization 4 3 CO5

b. Design a recruitment advertisement in a leading newspaper for the position

of senior tax analyst in a MNC. 4 3 CO5








18MBAHR302 – HR Analytics

Submission Deadline: 26th Oct 2020

Course Outcomes:

1. To enable the students, understand the importance of analytics in overall HR Management 2. To make the learners remember the various methods of measuring HR & reporting value 3. To enable the students, understand evaluation of HR Analytics, frameworks, models & typical

applications

4. To prepare the students, to analyze various data sources, challenges one can encounter & data cleaning methodology

5. To make the students understand preparation of HR scorecards


Q. No Questions *Weightage *CL *CO

1.

a. What is HR Analytics? 2 1 CO1

b. What are the challenges in HR Analytics? 6 2 CO1

c. Explain Role of HR Analytics with diagram. 8 2 CO1

2.

a. What is BSC (Balance Scorecard)? 2 1 CO1

b. Explain in detail the benefits of HR Analytics. 6 2 CO2

c. Explain 5stages of HR Maturity for analytics implementation. 8 2 CO2

3.

a. List of approaches to measure HR. 2 2 CO1

b. Explain how to choose skill assessment tool? 6 2 CO2

c. Explain how to create HR Management system? 8 2 CO2

4.

a. Write the benefits of HR Metrics. 2 2 CO2

b. Explain HR Scorecards with example. 6 2 CO1

c. HR Scorecards is different from HR Analytics… Explain 8 2 CO2

5.

a. Difference between strategic HR & Benchmarking 2 1 CO2

b. Explain the 5 steps involved in valuing HR Analytics in an

organization 6 2 CO2

c. Explain the benefits of workforce scorecards. 8 2 CO2

6.

Case Study

Sysco, the $36.8 billion Fortune 100 global food-service company. Sysco is a complex organization

made up of nearly a hundred autonomous operating units and about 51,000 fill time employees

servicing approximately 400,000 customers.

The company began its workforce analysis with three gross measures for each operating unit: work

climate and employee satisfaction, productivity, and retention. It has drilled deeper to understand,

measure, and manage seven other dimensions of the work environment, including frontline supervisor

effectiveness, diversity, and quality of life.

Sysco’s analysis revealed that operating units with highly satisfied employees have higher revenues,

lower costs, greater employee retention, and superior customer loyalty. The company can efficiently

identify what actions by management will have the greatest impact on the business. For an example, in

six years it has improved the retention rate for delivery associates --- who provide customer service and

build customer relationship--- from 65% to 85%. Sysco track the group’s satisfaction scores, and when

they dip, it institutes immediate improvements to go them back on track.

By retaining the key talent, Sysco saved nearly $50 million in hiring and training costs for new

associates.

Questions

a. What is the maturity level of this organization? What steps they

would have taken to track these metrics? 4 3 CO2

b.

How do you think the training & development department of the

company leverage these insights to predict future talent development

programs?

4 3 CO2







Third Semester – Second Assignment- (2019-21 Batch)

18MBAHR302 – HR Analytics


Course Outcomes:

1. To enable the students, understand the importance of analytics in overall HR Management 2. To make the learners remember the various methods of measuring HR & reporting value 3. To enable the students, understand evaluation of HR Analytics, frameworks, models & typical

applications

4. To prepare the students, to analyze various data sources, challenges one can encounter & data cleaning methodology

5. To make the students understand preparation of HR scorecards

Sl. No. No of

students Creative Assignment Topic Details Marks

Topic 1 2 Global and cultural awareness - As a HR Analyst explain through 7 tasks

and competencies. 5

Topic 2 2 Create a HR Metrics and explain by giving proper examples for each level. 5

Topic 3 2 As a HR Analyst – How do you handle HR Maturity in your organization.

Explain with proper example and diagram. 5

Topic 4 2 In a Hospital Sector how do you measure the performance of group D staff?

Explain with proper example. 5

Topic 5 2

In a manufacturing organization, what are the parameters for measuring the

performance of the workers. Create proper and suitable HR Metrics

accordingly.

5





18MBAHR303 – Compensation & Reward System


Course Outcomes:


1. Gain insights of various conceptual aspects of Compensation and Benefits to achieve organizational goals.

2. Determine the performance-based compensation system for business excellence and solve various cases.

3. Designing the compensation strategies for attraction, motivation and retaining high quality workforce.

4. Understand the Legal & Administrative Issues in global compensation to prepare compensation plan, CTC,

wage survey and calculate various bonus.


Q. No Questions *Weightage *CL *CO

1. a. What is compensation? 2 1 CO1

b. Explain the types of compensation management with relevant

examples. 6 2 CO1

c. Explain the pay model. 8 2 CO1

2.

a. Differentiate salary and wage with proper example 2 1 CO1

b. Explain Job description & Job specification. 6 2 CO2

c. Explain the common methods of job evaluation. 8 2 CO2

3. a. What is internal equity and external equity? 2 2 CO1

b. State the importance of Job evaluation. 6 2 CO2

c. Write short notes on i) Merrick’s Multiple Piece Rate Plan,

ii) Rowan Premium Bonus Plan 8 2 CO2

4. a. Define Job evaluation. 2 2 CO2

b. Discuss the internal alignment and internal pay structures. 6 2 CO1

c. Write short notes on i) Emerson Efficiency Plan ii) Bedeaux Point

Method 8 2 CO2

5. a. Differentiate between Job analysis & Job evaluation. 2 1 CO2

b. Explain Taylor Differential Piece Rate Method 6 2 CO2

c. Explain any 2 methods of compensation calculation employed. 8 2 CO2

6. Case Study

Salary inequities at Acme Manufacturing.

Joe Black was trying to figure out what to do about a problem salary situation he had in his plant. Black

recently took over as president of Acme Manufacturing. The founder and former president, Bill

George, had been president for 35 years. The company was family owned and located in a small

eastern Arkansas town. It had approximately 250 employees and was the largest employer in the

community. Black was the member of the family that owned Acme, but he had never worked for the

company prior to becoming the president. He had an MBA and a law degree, plus five years of

management experience with a large manufacturing organization, where he was senior vice president

for human resources before making his move to Acme.

A short time after joining Acme, Black started to notice that there was considerable inequity in the pay

structure for salaried employees. A discussion with the human resources director led him to believe that

salaried employees pay was very much a matter of individual bargaining with the past president.

Hourly paid factory employees were not part of this problem because they were unionized and their

wages were set by collective bargaining. An examination of the salaried payroll showed that there were

25 employees, ranging in pay from that of the president to that of the receptionist. A closer

examination showed that 14 of the salaried employees were female. Three of these were front-line

factory supervisors and one was the human resources director. The other 10 were non-management.

This examination also showed that the human resources director appeared to be underpaid, and that the

three female supervisors were paid somewhat less than any of the male supervisors. However, there

were no similar supervisory jobs in which there were both male and female job incumbents. When

asked, the HR director said she thought the female supervisors may have been paid at a lower rate

mainly because they were women, and perhaps George, the former president, did not think that women

needed as much money because they had working husbands. However, she added she personally

thought that they were paid less because they supervised less-skilled employees than did the male

supervisors. Black was not sure that this was true.

The company from which Black had moved had a good job evaluation system. Although he was

thoroughly familiar with and capable in this compensation tool, Black did not have time to make a job

evaluation study at Acme. Therefore, he decided to hire a compensation consultant from a nearby

university to help him. Together, they decided that all 25 salaried jobs should be in the same job

evaluation cluster, that a modified ranking method of job evaluation should be used, and that the job

descriptions recently completed by the HR director were current, accurate, and usable in the study.

The job evaluation showed that the HR director and the three female supervisors were being underpaid

relative to comparable male salaried employees. Black was not sure what to do. He knew that if the

underpaid female supervisors took the case to the local EEOC office, the company could be found

guilty of sex discrimination and then have to pay considerable back wages. He was afraid that if he

gave these women an immediate salary increase large enough to bring them up to where they should

be, the male supervisors would be upset and the female supervisors might comprehend the total

situation and want back pay. The HR director told Black that the female supervisors had never

complained about pay differences.

The HR director agreed to take a sizable salary increase with no back pay, so this part of the problem

was solved. Black believed he had for choices relative to the female supervisors:

1. To do nothing.

2. To gradually increase the female supervisors salaries.

3. To increase their salaries immediately.

4. To call the three supervisors into his office, discuss the situation with them, and jointly decide what

to do.

Questions

a. What would you do if you were Black? Give your recommendations. 4 3 CO2

b.

How do you think the company got into a situation like this in the

first place?

4 3 CO2







Third Semester – Second Assignment- (2019-21 Batch)

18MBAHR303 – Compensation & Reward System


Course Outcomes:


1. Gain insights of various conceptual aspects of Compensation and Benefits to achieve organizational goals.

2. Determine the performance-based compensation system for business excellence and solve various cases.

3. Designing the compensation strategies for attraction, motivation and retaining high quality workforce.

4. Understand the Legal & Administrative Issues in global compensation to prepare compensation plan, CTC,

wage survey and calculate various bonus.

Sl. No. No of

students Creative Assignment Topic Details Marks

Topic 1 2 Create a pay model for an Engineering Industry. Explain with diagram and

example 5

Topic 2 2 You are a HR Manager of a Retails outlet (Like BigBazar/Lifestyle). How

you will structure the reward model for the staffs. 5

Topic 3 2

You are a HR Manager of a IT industry and you are observing that last 2

years the attrition rate has increased around 20%. What you will do for your

employees to reduce the attrition rate? Explain with proper example

5

Topic 4 2

You are working in a hospital industry, how you will create the

compensation structure for Group D level, Hospital Desk job staffs, and for

the Doctors.

5

Topic 5 2

You are working in a hotel industry and you are the HR manager. In respect

of HR alignment, Job evaluation and Job Analysis how will your job

perfectly. Explain with proper example.

5



Third Semester – First Assignment (2019-21 Batch)

18MBAMM301–Consumer Behavior

Course Outcomes:

CO 1. Find out the contemporary retail management, issues, and strategies.

CO 2. Evaluate the recent trends in retailing and its impact in the success of modern business.

CO 3. Relate store management and visual merchandising practices for effective retailing


*Weightage CL* CO*

1. a. What is consumer behavior? 2 1 1

b. Discuss the role of situational influence on CB. 6 3 2

c. Explain the rights and responsibilities of consumers in India. 8 2 2

2. a. What is personality? 3 1 2

b. Explain the various types of perceived risks and also discuss how the

consumers handle the same. 7 2 1

c. Explain the Maslow’s hierarchy of needs as relevant to the study of

consumer behavior. 10 2 1

3. a. Differentiate between consumer and customer. 3 1 1

b. Discuss the various sources of primary and secondary data for

consumer research. 7 3 2

c. Explain theInput, process, output Model of CB. 10 2 3

4. a. What are qualitative and quantitative researches? 3 1 1

b. Explain the various levels of consumer decision making with

examples. 7 2 3

c. Discuss the nature and characteristics of Indian Consumers. 10 2 2

5. Case Study:

Ramesh is a vegetable vendor in a locality of Bangalore city and is into this business for more than 12

years in the same place. He initially started selling vegetables on a rented push cart and steadily grew

up witnessing the stages of owning a push a cart, an auto rickshaw, two more assistants and from

vegetables to fruits to flowers and the like. He is very popular in the locality and residents like to buy

from him (though he charges a premium price) for the quality of vegetables, fruits and flowers he

gets. An additional selling point for Ramesh is the relationship he has maintained with the residents of

locality.

Recently Ramesh was exposed to smart phones and android applications which made him think of

utilizing the same for his business purposes. As of now people call him on his mobile phone to place

orders and there were incidents of Ramesh forgetting the order content. He is now seriously thinking

of getting an application built for his business and enhancing business over a period of time.

a. What kind of low budget consumer research you can suggest

Ramesh? Justify. 4 3 2

b. What are the various variables you can think of which can be

considered for the business feasibility research? Discuss. 4 3 2

c. Evaluate the suitability of a model of consumer behavior suitable in

this case. 5 3 1

d. Discuss the intervention of elements of AIDA model affected by

elements of consumer behavior as relevant to this case. 5 3 3






Third Semester – Second Assignment (2019-21 Batch)

18MBAMM301–Consumer Behavior

Course Outcomes:

CO 1. Find out the contemporary retail management, issues, and strategies.

CO 2. Evaluate the recent trends in retailing and its impact in the success of modern business.

CO 3. Relate store management and visual merchandising practices for effective retailing


*Weightage CL* CO*

1. a. What is consumer perception? 2 1 1

b. Explain the classical conditioning theory of learning. 6 3 2

c. Explain the Sigmund Freud’s theory of personality as relevant to the

study of CB. 8 2 2

2. a. What are attitudes? 3 1 2

b. Discuss the characteristic features of various social classes in India. 7 2 1

c. Explain the various types of reference groups and their influence on

consumer behavior. 10 2 1

3. a. What is opinion leadership? 3 1 1

b. Discuss the key family roles and their influence on purchase and consumption decisions.

7 3 2

c. Explain the tri-component model of consumer attitude. 10 2 3

4. a. What is consumer motivation? 3 1 1

b. Explain the various types of CRM. 7 2 3

c. Describe the various elements of consumer perception. 10 2 2

5. Case Study:

A certain showroom dealing with refurbished cars used to put on display, various brands of cars. Both

automatic and manual transmission cars were displayed. The automatic versions of the cars were

usually bought by the software engineers and businessmen. Also these refurbished cars were bought

by the people who bought the cars for the first time.

It was observed that the customers who came to buy the cars came with their family members and

sometimes their friends and relatives also. It was noticed that most of them were interested to buy the

vehicle through finance. Most of the sales would take 3 – 4 weeks to close. The sales were observed

to be highest during end of the year and festival seasons. There was a great influence of housewives

and children in buying cars as they were the ones to enjoy the ride. Since the showroom is interested

in sales to materialize, rather than pushing any par

rd october.., 2020 - dsatm.edu.inthird semester – second assignment-(2019-21 batch)...

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