Smu mba sem 3 finance spring 2016 assignments
- 1. WWW.SMUSOLVEDASSIGNMENTS.COM EMAIL US AT- solvemyassignments@gmail.com GET SOLVED ASSIGNMENTS AT Rs.150 per subject or Rs.700 per semester VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at solvemyassignments@gmail.com SMU MBA SEM 3 FINANCE SPRING 2016 ASSIGNMENTS MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT 1 Describetheinvestmentprocess. Eachstep carries 2 marks forall the 5 steps 2 Defineprimarymarkets?DefineandExplaintheroleoffinancial intermediaries. Definition of primary markets Definition of financial intermediaries Role of financial intermediaries 3 Definetechnical indicatorsanditstypesand DiscussonCandlestickcharts? Definition of technical indicators Types of technical indicators Candlestick charts 4 BrieflyexplainAssumptionsofMarkowitzModel.ExplainEfficientFrontieror Efficientset. Explain Assumptions of MarkowitzModel Explanation on EfficientFrontier 5 Explain the assumptions of Capital Asset Pricing Model (CAPM). Give a short note on SeparationTheorem,Capital MarketLine(CML)andSecurityMarketLine(SML) Assumptions of CAPM Separation Theorem CML and SML 6 ExplaintheStructureof Mutual FundOperations.TypesofMutual Fund Structure of Mutual Fund Types of Mutual Fund MF0011 & MERGERS AND ACQUISITIONS 1 Explainthetypes ofmergersand acquisitions(M&A). Eachtype carries 2 marks. Explanation of 5 types 2 Explainbasicstepsinorganizingamerger.Explainfinancial aspectsofmergers Explanation of steps in organizing a merger Explanation of financial aspects of merger
- 2. WWW.SMUSOLVEDASSIGNMENTS.COM EMAIL US AT- solvemyassignments@gmail.com 3 ExplainaboutManagementbuyouts(MBO),itsmotivesand structure. Explanation of Management buyouts(MBO) Motives behind MBO Structure of a MBO 4 Write Shortnoteson : Ownershipdecision Locationdecision Roleofgovernmentpoliciesininternational M&A 5 Explainthetypes oftakeovers.Explaindefensesagainsttakeoverbids. Types of takeovers. Defenses against takeover bids. 6 Explainthevaluationapproaches.Explainthebusinessvaluationmethods. Explanation of valuation approaches Explanation of business valuation methods MF0012 & TAXATION MANAGEMENT 1 Mr. X (38 year) is employed by A Ltd. as marketing manager in Pune. The following informationisfurnishedbyMr.X forthe previousyearending31st March2015. Basic salary Rs. 12,00,000 p.a., DA Rs. 40,000 p.a. (36 % of DA is considered for gratuity and Pension, but not for Provident fund). Club allowance Rs. 5,000 p.m., Furnishing allowance Rs. 2,000 p.m. and HRA Rs. 40,000 p.m. Conveyance allowance is Rs. 2,000 p.m. which can be usedboth forofficeandprivatepurposes. Up to August 31, 2014, he resides with his parents and does not pay any rent. From September 1, 2015 he has been allotted a company accommodation at Pune (population 23 lakhs)inlieuof houserentallowance. Club allowance has been discontinued from January 1, 2015. AndMr. X has been provided by the company club facility for private (20 %) and office use (80%). Expenditure by the companyuptil 31st March2015wasRs. 20,500. On 20 Nov. 2014, Mr X has taken an interest free loan from the company (SBI lending rate for Similar loan being 18.5 % p.a.). Mr. X and his employer contribute @ 10 % of his salary to P.F. Interest Credited by the company in Provident Fund on June 1, 2014 @ 9.7 % is Rs. 2,11,200. Assuming that income of Mr. X from Other Sources Rs. (-30,000), find out the net income and liabilityofMr.X forthe AssessmentYear2015-16. Based on above Compute the taxable income and tax liability (before deducting TDS) of Ms. X for the A.Y. 2015-16 Rs. 2,600 (being Income-tax refund and Rs. 200 being Interest thereon) 2 a) Howisadvancemoney receivedagainstcostofacquisitionadjusted? b) State givingreasons,whetherthefollowingassetsareShorttermor Longterm: i) X purchasesa houseon10thMarch2012and transferson6th June 2014. ii) Y purchases unquoted shares in an Indian company on 10th March 2012 and transfers on 6th June 2012. iii)Z acquiresunitsofmutual fund on7th July 2013andtransfersthoseon 10th July2014.
- 3. WWW.SMUSOLVEDASSIGNMENTS.COM EMAIL US AT- solvemyassignments@gmail.com iv) A purchases diamonds on 12 September 2011 and gifts the same to his friend B on 31st December2014andB transfersthe asset on20 October2014. 3 Ms. A purchases a house property on 1st January 1976 for Rs. 95,000. She enters into an Agreement for sale of the same property to Mr. X on 1st November 1983 and receives Rs. 10,000 as advance. Following the demise of Mr. X immediately thereafter, the money was forfeited by Ms. A. Later Ms. A gifts her property to her friend Ms. B on 15th May 1985. The followingexpensesareincurredbyMs.Aand Ms. B forimprovementofthe property: Particulars Cost(Rs.) Additionsoftwo roomsbyMs. A during1978-79 25,000 AdditionoffirstfloorbyMs.A during1983-84 40,000 AdditionofsecondfloorbyMs.Bduring1990-91 1,15,000 Ms. B enters into an agreement for sell the property for RS. 8,50,000 to Mr. P on 1st April 1993after receiving an advance of Rs. 50,000. Mr. P could not pay the balance amount within the stipulatedtime oftwo monthsand Ms. B forfeitstheamount ofadvance. Ms. B finally transfers the property to Ms. C for Rs. 14,75,000 on 1st December 2014. Given the Fair Market Value of the property on 1st April 1981 being Rs. 1,15,000; Cost Inflation Index for 1981-82 : Rs. 100; for 1983-84 : Rs.116; for 1985-86 : Rs. 133; for 1990-91 : Rs. 182; for 1993-94 : Rs. 244 and 2014-15: Rs.1,024 compute the Capital gains in the hands of Ms. B forthe AssessmentYear2015-16. Compute the Capital gains in the hands of Ms. B forthe Assessment Year 2015-16. 4 i) Ms. Brinda, a U.S. citizen visits India on 1st January 2014 to study and conduct research on Indian folk culture. She has been regularly visiting India for 100 days in the past five consecutive years to carry the research. Advise the residential status of Ms. Brinda under extant rulesreferringto section6 ofthe Income-taxAct 1961. ii)What arethe provisionsof Advancetaxundersection2(1)? 5 Explain the need of Service tax in India. What are the different approaches to Service tax in India? 6 Mr. X (aged 59 years) furnishes the following Profit and Loss account for the year ended 31st March, 2015. Compute the Gross Total Income of Mr. X under respective heads, his Net TaxableIncomeandTaxliabilityinthe assessmentyear 2015-16. Particulars Rs. Particulars Rs. General Expenses 13,400 Grossprofit 3,15,500 Baddebts 22,000 Commission 8,600 Advancetax 2,000 Brokerage 37,000 Insurance 600 MiscellaneousIncome 2,500 Salaryto Staff 26,000 BadDebt Recovery 11,000 Salaryto Mr. X 51,000 Interest onDebenture (Net interest Rs.22,500+ TDS Rs.2,500) 25,000 Interest on Cash Credit 4,000 Interest onFixed Deposits (Net interest Rs. 11,700+ TDS Rs.1,300) 13,000 Interest on loan to Mrs. X 42,000 Interest on Capital of Mr. X 23,000
- 4. WWW.SMUSOLVEDASSIGNMENTS.COM EMAIL US AT- solvemyassignments@gmail.com Depreciation 48,000 Advertisement 7,000 Contribution to Employees’ ProvidentFund 13,000 Net Profit 1,60,600 Total 4,12,600 Total 4,12,600 Supplementaryinformation: Permissible depreciation as per CBDT circular is Rs. 37,300 which includes depreciation of permanentglowsignboard. i. Advertisement expenditure includes Rs. 3,000, being cost of permanent glow sign board affixedoutsidetheofficepremises. ii. CommissionaccruedbutnotreceivedRs.4,500 isnot creditedto P & L Account. iii.Mr. X payspremiumofRs. 6,000 onhis ownlife. iv. General expensesincludes: a) Rs. 500spent forarrangingaparty forMr. X’s sonwho arrivesfromCanada. b) Rs. 1,000for contributionto apolitical party. v. Loan availed fromMrs.X was forpayment ofarreartax. A Mr. X (aged 59 years) furnishes the above Profit and Loss account for the year ended 31st March,2015. Compute the Gross Total Income of Mr. X under respective heads, his Net Taxable Income and Taxliabilityin the assessmentyear2015-16. MF0013 & INTERNAL AUDIT AND CONTROL 1 Distinguish between Government audit and Specific audit. Explain types of Government AndSpecificAudit? Distinguish between Government audit and Specific audit. Explain types of Government And Specific Audit? 2 Write the similarity and dissimilarity of Internal and External Audit? Explain the Cooperationbetweenexternal andinternal auditor. Similarity and Dissimilarity of Internal and External Audit Co-operation between external and internal Auditor 3 The audit firm follows certain policies and procedures. Explain the quality control policies adoptedby an auditfirm. Explanation of all the 12 points under audit firm 4 Explainthebasicprinciplesofgoverninginternal control Basic principles of governing internal control 5 Discuss the specific problems of Electronic Data Processing (EDP) relating to internal control. Explanation of all problems of EDP 6 Explainthefactorsforhavingthe effectiveinternal control systemfora bank. Explanation of various aspects of having the effectiveinternal controlsystem
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