ITM322
IT Applications in Non-Banking Financial Services
Assignment - I
Assignment Code: 2015ITM322A1 Last Date of Submission: 15th April 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Explain the organization and functions of OCTEI.
2. Describe various risks being faced under portfolio management and suggest methods to eliminate them.
3. A company purchased an equipment costing Rs. 5,00,000 on hire purchase basis payable in 4 equal yearly installments of Rs. 2,05,000 each. Split the installments into interests and principal.
4. Define mergers and acquisitions. What are the motives and economic advantages of merger and acquisitions?
Section-B
Case Study
The following is the data regarding two companies ‘A’ and ‘B’ belonging to the same equivalent risk class:
Company A Company B
Number of Ordinary shares 1,00,000 1,50,000
8% Debentures 50,000 ----
Market price per share Rs.1.30 Rs.1.00
All profit after paying debenture interest is distributed as dividends.
Case Question:
5. You are required to explain how under Modigliani and Miller approach, an investor holding 10% of shares in company ‘A’ will be better off in switching his holding to company ‘B’.
ITM322
IT Applications in Non-Banking Financial Services
Assignment - II
Assignment Code: 2015ITM322A2 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Why do companies issue share in the market? What is the relationship between the new issue market and the secondary market?
2. Explain the various regulatory frameworks on Merchant Banking.
3. Discuss in Brief some important recent development in the merchant banking establishments in India.
4. Describe the important instruments and their features through which capital can be raised by a corporate from the Capital Market.
Section-B
Case Study
GPC Ltd. Has received an offer to either purchase a building for Rs. 4 Lakhs or take it on lease for an annual rent of Rs. 40,000. Cost composition of the building includes Rs. 40,000 for land. If building is purchased, renovation will cost another Rs. 60,000.
However, if the building is leased, GPC ltd. has agreed to pay the property tax and insurance, and make necessary repairs.
It is estimated that annual cost will be as follows:
Repairs and maintenance Rs.12,000. Property taxes Rs.8,000. Insurance @1.11% (Rounded off to the nearest Rs. 10) to be calculated on the value before renovation and is expected to remain constant at that level. The building has an estimated life of 20 years and to be depreciated on a straight line method. The salvage value would be equal to the cost of demolition. The amount required to purchase and remodel the building will yield 8% interest free of tax invested in good marketable securities.
Case Question:
5. You are required to prepare a statement showing the annual savings or extra cost involved if the building is purchased as compared to leasing.
IT Applications in Non-Banking Financial Services
Assignment - I
Assignment Code: 2015ITM322A1 Last Date of Submission: 15th April 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Explain the organization and functions of OCTEI.
2. Describe various risks being faced under portfolio management and suggest methods to eliminate them.
3. A company purchased an equipment costing Rs. 5,00,000 on hire purchase basis payable in 4 equal yearly installments of Rs. 2,05,000 each. Split the installments into interests and principal.
4. Define mergers and acquisitions. What are the motives and economic advantages of merger and acquisitions?
Section-B
Case Study
The following is the data regarding two companies ‘A’ and ‘B’ belonging to the same equivalent risk class:
Company A Company B
Number of Ordinary shares 1,00,000 1,50,000
8% Debentures 50,000 ----
Market price per share Rs.1.30 Rs.1.00
All profit after paying debenture interest is distributed as dividends.
Case Question:
5. You are required to explain how under Modigliani and Miller approach, an investor holding 10% of shares in company ‘A’ will be better off in switching his holding to company ‘B’.
ITM322
IT Applications in Non-Banking Financial Services
Assignment - II
Assignment Code: 2015ITM322A2 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Why do companies issue share in the market? What is the relationship between the new issue market and the secondary market?
2. Explain the various regulatory frameworks on Merchant Banking.
3. Discuss in Brief some important recent development in the merchant banking establishments in India.
4. Describe the important instruments and their features through which capital can be raised by a corporate from the Capital Market.
Section-B
Case Study
GPC Ltd. Has received an offer to either purchase a building for Rs. 4 Lakhs or take it on lease for an annual rent of Rs. 40,000. Cost composition of the building includes Rs. 40,000 for land. If building is purchased, renovation will cost another Rs. 60,000.
However, if the building is leased, GPC ltd. has agreed to pay the property tax and insurance, and make necessary repairs.
It is estimated that annual cost will be as follows:
Repairs and maintenance Rs.12,000. Property taxes Rs.8,000. Insurance @1.11% (Rounded off to the nearest Rs. 10) to be calculated on the value before renovation and is expected to remain constant at that level. The building has an estimated life of 20 years and to be depreciated on a straight line method. The salvage value would be equal to the cost of demolition. The amount required to purchase and remodel the building will yield 8% interest free of tax invested in good marketable securities.
Case Question:
5. You are required to prepare a statement showing the annual savings or extra cost involved if the building is purchased as compared to leasing.
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