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Saturday 30 June 2018

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Course: Taxation – Direct and Indirect
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1. Mr. Kumar is a small trader. His annual turnover has never exceeded Rs. 1500000 during the last 5 years. In the earlier indirect tax regime, he did not have any VAT or Service Tax registration. He is undecided whether to register for GST, and has approached you for guidance. Prepare a detailed report, advising him regarding benefits of GST Registration. (10 Marks)
2. Ravi has two houses, both of which are self occupied. The particulars of the houses for Previous Year 2017 – 18 are as under:
Particulars
House I
House II
Municipal Value per annum
100000
150000
Fair Rent per annum
75000
175000
Standard Rent per annum
90000
160000
Date of Completion
31.03.1999
31.03.2001
Municipal taxes paid during the year
12%
8%
Interest on money borrowed for repair of property
NIL
55000
Compute Ravi’s income from house property for the Assessment Year 2018 – 19 and suggest which house should be opted by Ravi to be assessed as self occupied to minimize his tax liability. (10 Marks)
3. A) Joseph, a foreign citizen, visits India since 1995 every year for a period of 100 days. Determine the residential status of Joseph for the assessment year 2018-19? (5 Marks)

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        N.B.: 1)    Attempt any Four Questions
             2)    All questions carry equal marks.
NO. 1
COOKING LPG LTD
DETERMINATION OF WORKING CAPTIAL
Introduction
Cooking LPG Ltd, Gurgaon, is a private sector firm dealing in the bottling and supply of domestic LPG for household consumption since 1995. The firm has a network of distributors in the districts of Gurgaon and Faridabad. The bottling plant of the firm is located on National Highway – 8 (New Delhi – Jaipur), approx. 12 kms from Gurgaon.  The firm has been consistently performing we.”  and plans to expand its market to include the whole National Capital Region.
    The production process of the plant consists of receipt of the bulk LPG through tank trucks, storage in tanks, bottling operations and distribution to dealers.   During the bottling process, the cylinders are subjected to pressurized filling of LPG followed by quality control and safety checks such as weight, leakage and other defects.  The cylinders passing through this process are sealed and dispatched to dealers through trucks.  The supply and distribution section of the plant prepares the invoice which goes along with the truck to the distributor.
Statement of the Problem :
Mr. I. M. Smart, DGM(Finance) of the company, was analyzing the financial performance of the company during the current year.  The various profitability ratios and parameters of the company indicated a very satisfactory performance.  Still, Mr. Smart was not fully content-specially with the management of the working capital by the company.  He could recall that during the past year, in spite of stable demand pattern, they had to, time and again, resort to bank overdrafts due to non-availability of cash for making various payments.  He is aware that such aberrations in the finances have a cost and adversely affects the performance of the company.  However, he was unable to pinpoint the cause of the problem.
    He discussed the problem with Mr. U.R…….
•     10 per cent.  However, during other months the power consumption remains the same as the decrease owing to reduced production is offset by increased consumption on account of compressors /Acs.
•    Additional amount of Rs. 3 lakh is kept as cash balance to meet exigencies during winter.
•    No change in time schedules for any payables / receivables.
•    The storage of finished goods inventory is restricted to a maximum 5,000 cylinders due to statutory requirements. 












NO. 2
M/S HI-TECH ELECTRONICS
M/s. Hi – tech Electronics, a consumer electronics outlet, was opened two years ago in Dwarka, New Delhi. Hard work and personal attention shown by the proprietor, Mr. Sony, has brought success.  However, because of insufficient funds to finance credit sales, the outlet accepted only cash and bank credit cards.  Mr. Sony is now considering a new policy of offering installment sales on terms of 25 per cent down payment and 25 per cent per month for three months as well as continuing to accept cash and bank……
– off basis.  The proprietor feels that the new policy will lead to bad debts of 1 per cent.
(a)    As a financial consultant, advise the proprietor whether he should go for the extension of credit facilities.
(b)    Also prepare cash budget for one year of operation of the firm, ignoring interest.  The minimum desired cash balance & Rs. 30,000, which is also the amount the firm has on January 1.  Borrowings are possible which are made at the beginning of a month and repaid at the end when cash is available.




















NO.3
SMOOTHDRIVE TYRE LTD
Smoothdrive Tyre Ltd manufacturers tyres under the brand name “Super Tread’ for the domestic car market.  It is presently using 7 machines acquired 3 years ago at a cost of Rs. 15 lakh each having a useful life of 7 years, with no salvage value.
    After extensive research and development, Smoothdrive Tyre Ltd has recently developed a new tyre, the ‘Hyper Tread’ and must decide whether to make the investments necessary to produce and market the Hyper Tread.  ……
debt will be a tax-deductible expenses.
    As a finance analyst, prepare a report for submission to the CFO and the Board of Directors, explaining to them the feasibility of the new investment.
No. 4
COMPUTATION OF COST OF CAPITAL OF PALCO LTD
In October 2003, Neha Kapoor, a recent MBA graduate and newly appointed assistant to the Financial Controller of Palco Ltd, was given a list of six new investment projects proposed for the following year.  It was her job to analyse these projects and to present her findings before the Board of Directors at its annual …..
of these sources of funds to determine its cost of capital.  In discussion with the current Financial Controller, the point was raised that while this served as an appropriate calculation for external funds, it did not take into account the cost of internally generated funds.  The Financial Controller agreed that there should be some cost associated with retained earnings and need to be incorporated in the calculations but didn’t have any clue as to what should be the cost.
    Palco Ltd is subjected to the corporate tax rate of 40 per cent.
    From the facts outlined above, what report would Neha submit to the Board of Directors of palco Ltd ? 







NO. 5
ARQ LTD
ARQ Ltd is an Indian company based in Greater Noida, which manufactures packaging materials for food items.  The company maintains a present fleet of five fiat cars and two Contessa Classic cars for its chairman, general manager and five senior managers.  The book value of the seven cars is Rs. 20,00,000 and …..
the PC, mobioe phone and so on.
    The company’s effective tax rate is 40 per cent and its cost of capital is 15 per cent.
Analyse the financial viability of the two options.  Which option would you recommend ?  Why ?

Friday 29 June 2018

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Course: Performance Management System
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1. Neerja is a First Time Manager and is bring trained on goal setting. You are her HR Coach. As her coach you are required to explain the concept of goal setting to Neerja along with 5 examples of goals covering the following functions / departments, i.e. HR, Accounts, IT, Sales and Operatoins. (10 Marks)
2. Sandeep is the Operations Head of Arihant Enterprises, an organization that manufactures fans and motors. Sandeep is always rated ‘’excellent’’ in his domain, i.e. operations. He is, however, an impatient, hasty person and a common complaint by all his team members is that he does not invest time to give them performance feedback. He rushes through the annual performance feedback process in less than 5 minutes. If you are to being about a change in Sandeep’s approach, what is the advice you would give him on performance feedback process. (10 Marks)
3. Natraj industries is a 5-year old company with apparel stores across major cities in India. The store has 500 retail staff who interact with customers. You are the HR manager at Natraj industries.
a. What steps will you take before introducing 360 degree feedback process (5 Marks)
b. Provide 2 illustrations of 360 degree questions for feedback from customers. (5 Marks)

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MASTER’S PROGRAM IN BUSINESS ADMINISTRATION

Note: Solve any Five Case studies















   



No. 1
The slogan for the movie Godzilla was “Size does matter.”  Should this be the slogan for America as well?  Many marketers seem to believe so.  The average serving size for a fountain drink has gone from 12 ounces to 20 ounces.  An industry consultant explains that the 32 – ounce Big Gulp is so popular because “people like something large in their hands.  The large the better.”  Hardee’s Monster Burger, complete with two beef patties and five pieces of bacon, weighs in at 63 grams of fat and more than 900 calories.  Clothes have ballooned as well: Kick wear makes women’s jeans with 40 – inch diameter legs.  The standard for TV sets used to be 19 inches; now it’s 32 inches.  Hulking SUVs have replaced tiny sports cars as the status vehicle of the new millennium.  One consumer psychologist theorizes that consuming big things is reassuring: “Large things compensate for our vulnerability,” she says.  “It gives us insulation.  The feeling that we’re less likely to die.”  What’s up with our fascination with bigness?  Is this a uniquely American preference?  Do you believe that “bigger’s better?”  Is this a sound marketing strategy? 











NO. 2
Some die-hard fans were not pleased when the Rolling Stones sold the tune “Start Me Up” for about $4 million to Microsoft, which wanted the classic song to promote its windows 95 launch.  The Beach Boys sold “Good Vibrations” to Cadbury Schweppes for its Sunkist soft drink, Steppenwolf offered its “Born to be Wild” to plug the Mercury Cougar, and even Bob Dylan sold “The Times They Are A- Changin” to Coopers & Lybrand (now called price Waterhouse Coopers).  Other rock legends have refused to play the commercial game, including Bruce Springsteen, the Grateful Dead, Led Zeppelin, Fleetwood Mac, R.E.M. and U2.  According to U2’s manager, “Rock’ n roll is the last vestige of independence.  It is undignified to put that creative effort and hard work to the disposal of a soft drink or beer or car.”  Singer Neil Young is especially adamant about not selling out; in his song “This Note’s for you,” he croons, “Ain’t singing for Pepsi, ain’t singing for Coke, I don’t sing for nobody, makes me look like a joke”.  What’s your take on this issue?  How do you react when one of your favorite songs turns up in a commercial?  Is this use of nostalgia an effective way to market a product?  Why or why not?
















NO. 3
Some market analysts see a shift in values among young people.  They claim that this generation has not had a lot of stability in their lives. They are fed up with superficial relationships, and are yearning for a return to tradition.  This change is reflected in attitudes toward marriage and family.  One survey of 22 –24 year old women found that 82 percent thought motherhood was the most important job in the world.  Brides’ magazine reports a swing toward traditional weddings – 80 percent of brides today are tossing their garters.  Daddy walks 78 percent of them down the aisle.  So, what’s your take on this?  Are young people indeed returning to the value of their parents (or even their grandparents)?  How have these changes influenced your perspective on marriage and family?














NO. 4
Does sex sell?  There’s certainly enough of it around, whether in print ads, television commercials, or on Web sites.  When Victoria’s Secret broadcast a provocative fashion show of skimpy lingerie live on the Web (after advertising the show on the Super Bowl) 1.5 million visitors checked out the site before it crashed due to an excessive number of hits.  Of course, the retailer was taking a risk since by its own estimate 90 percent of its sales are from women.  Some of them did not like this display of skin.  One customer said she did not feel comfortable watching the Super Bowl ad with her boyfriend: “It’s not that I’m offended by it; it just makes me feel inferior”. 
Perhaps the appropriate question is not does sex sell, but should sex sell?  What are your feelings about the blatant use of sex to sell products? Do you think this tactic works better when selling to men than to women?  Does exposure to unbelievably attractive men and women models only make the rest of us “normal” folks unhappy and insecure? Under what conditions (if any) should sex be used as a marketing strategy? 










NO. 5
New interactive tools are being introduced that allow surfers on sites such as landsend.com to view apparel product selections on virtual models in full, 360 – degree rotational view.   In some cases the viewer can modify the bodies, face, skin coloring, and the hairstyles of these models.  In others, the consumer can project his or her own likeness into the space by scanning a photo into a “makeover” program.  Boo.com plans to offer – 3-D pictures that can be rotated for close looks, even down to the stitching on a sweater, as well as online mannequins that will incorporate photos of shoppers and mimic voice patterns.  Visit landsend.com or another site that offers a personalized mannequin.  Surf around.  Try on some clothes.  How was your experience – how helpful was this mannequin?  When you shop for clothes online, would you rather see how they look on a body with dimensions the same as yours, or on a different body?  What advice can give Web site designers who are trying to personalize theses shopping environments by creating life – like models to guide you through the site?









NO. 6
Religious symbolism increasingly is being used in advertising, even though some people object to this practice.  For example, a French Volkswagen ad for the relaunch of the Golf showed a modern version of the Last Supper with the tagline, “Let’s us rejoice, my friends, for a new Golf has been born.”  A group of clergy in France sued the company and the ad had to be removed from 10,000 billboards.  One of the bishops involved in the suit said, “Advertising experts have told us that ads aim for the sacred in order to shock, because using sex does work anymore.”  Do you agree? Should religion be used to market products?  Do you find this strategy effective or offensive?  When and where is this appropriate, if at all?














NO. 7.
Boots with six – inch heels are the latest fashion rage among young Japanese women.  Several teens have died after tripping over their shoes and fracturing their skulls.  However, followers of the style claim they  are willing to risk twisted ankles, broken bones, bruised faces, and other dangers associated with the platform shoes.  One teenager said, “ I’ve fallen and twisted my ankle many times, but they are so cute that I won’t give them up until they go out of fashion.”   Many consumers around the world seem to be willing to suffer for the sake of fashion.  Others argue that we are merely pawns in the hands of designers, who conspire to force unwieldy fashions down our throats.  What do you think ?  What is and what should be the role of fashion in our society ?  How important is it for people to be in style ?  What are the pros and cons of keeping up with the latest fashions ?  Do you believe that we are at the mercy of designers.

Thursday 28 June 2018

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Course: Industrial Relations & Labour laws
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1. An industry in a rural part of Gujarat, has employed a total of 500 workers, which are spread over 3 units. The workers have faced different labour problems at various occasions. There is a manager who supervises the work carried in these 3 units. The employers travel to the industry once in 4-6 months. The employees find it difficult to meet the management. The manager also is incapable to effectively communicate the problems of the employees. The manager suggested that the employees to start a trade union and register it. The employees agree with the suggestion but are not convinced to register the union. The manager informs them that forming a trade union would be beneficial for them and registering the trade union would give them a legal status. Advise the workers. (10 Marks)

2. An employee filed a complaint against a cable manufacturing factory over alleged safety-related lapses at its manufacturing facilities at Solapur, in Maharashtra. Two persons were burnt to death in fire that broke out in one of the unit's at night. The deceased, were badli workers. They were carrying materials to the unit, when electrical sparks led to the fire which spread rapidly. According to the complaint filed, the occupier did not comply with the statutory safety provisions and accused him of using unskilled workers for skilled jobs. The company suspended the existing occupier pending the decision of the complaint filed and appointed a new occupier and instructed him to comply with all the statutory safety norms. Advise the occupier as to the statutory safety norms. (10 Marks)

3a. A workman drawing a monthly wage of Rs. 3000 meets with an accident while working on a machine and died on 12th April,2018. He was born on 14th July, 1982. Calculate the amount of compensation payable to the employee. (5 Marks)
b. An employee was murdered in communal riot when he was on his way to the workplace. His wife and children were depending on the wages earned by the employee. The employer refused compensation on the ground that he did not die in the workplace. Are the wife and children entitled to compensation? (5 Marks)

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SECTION I                                        
Any four:                                                 Marks: 20
1.    What a note on tender and tender notices.
2.    Discuss the different types of tenders?
3.    Write a note on EMD and SD.
4.    What are the procedures followed after the opening of a tender?
5.    Write a note on tender document.

Answer any two:                                      Marks:40
1.    Explain the importance of organization in construction activities.
2.    Enumerate the general principles to be followed in forming an organization system.
3.    Under what situations, a functional organization is suitable for construction management?

Compulsory question:                                 Marks: 40
4.    A multi-purpose river valley project across a major river is planned for construction. Irrigation, power development, fisheries and picnic development are all planned. Suggest a suitable organization structure for construction and maintenance of this project.
















Wednesday 27 June 2018

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Course: Strategic Management

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1. You are the Strategy Head of an automotive company in India. You propose to modernize your factory by bringing in Automation & Robots into your manufacturing plant. Devise a force field analysis by identifying atleast 4 drivers & 4 restrainers each & suggest ways & means to reduce the restrainers. (10 Marks)
2. You have been appointed as a Strategy Consultant to a Swiss luxury watch brand wanting to enter India. Which one of Porter s Generic Strategies would you choose to be operational in India & explain the reasons in detail behind your choice of strategy? Once the strategy has been chosen, explain the categories of customers you would target? (10 Marks)
3. You are the Chief Strategy Officer of Karbonn Mobiles, an Indian mobile device manufacturing company. You have been fast losing market share to Chinese brands which now account for 50% of the market share.
a. What turnaround strategies can you suggest to arrest the decline of revenues & profitability of your company? (5 Marks)
b. In your opinion, would it be considered appropriate to pursue a Combination Strategy? State your response with appropriate justifications & reasons. (5 Marks)
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Internal Assignment Applicable for SEPTEMBER 2018 Examination

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CONFLICT MANAGEMENT AND NEGOTIATION SKILLS

CASE I: MARUTI UDYOG LIMITED
PART A: Conflict

Case of Labour Unrest at Maruti Udyog Limited.

Introduction of the company
   
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation (SMC) of Japan, manufactures cars in the 800cc range. The commercial production started in December, 83. The installed capacity has been gradually increased to 350000 units per annum. During the fiscal year 2007-08, the production was 680,000 units. Maruti has become the largest Asian car company (Outside Japan and Korea). In the first half of 2007-08, Maruti sold more cars in the Indian market than sold by Suzuki in the Japanese market.

Even though there was no real competition and Maruti was the dominant player, it has been regularly introducing new models to meet rapidly changing customer needs. Till now 9 major models, namely Maruti -800, Omni, Gypsy, Alto, Esteem, Swift, Zen, Estilo, SX-4, and Wagon R have been introduced.

 Maruti’s contribution as the engine of the growth of the auto industry indeed has its impact on the lifestyle and psyche of an entire generation of Indian middle class. Maruti has been instrumental in laying the foundation for strong vendor base in India. In 2000-01, J D Power, the reputed name in car market surveys, has rated Maruti as the number one car company in customer service. It has noted that this is the first instance anywhere in the world of a market leader topping in customer satisfaction as well. Shortly after that, J D Power’s Quality Survey rated Maruti has maintained the position since then.

Maruti has identified Pre-owned car business, leasing and fleet management, Car insurance and Auto finance as strategic areas of growth.

Source of Conflict

To motivate the workmen for higher productivity, in 1989, management introduced an incentive scheme valid for 4 years and this was modified form time to time in consultation with union. After expiry of the scheme on 31.03.1995, as no common understanding could be reached with union, management introduced a revised scheme through notification on 01.01.1996, effective from 01.04.1995 for 4 years, and was implemented and accepted by the workmen without any dispute.

As the scheme has lapsed on 31.3.1999, management has given a proposal of the revised incentive scheme to be effective from 1.4.1999. When the initial incentive schemes were formulated, the need of the day at that time was higher production. Accordingly, the focus in the earlier schemes was achieving higher productivity. However, in the current
Questions:

1.    Do you think that the conflict was resolved in proper manner? Give reasons?

2.    If you were the union leader how would you have solved this dispute?

3.    Amongst all the incentives schemes from the negotiated settlement which 3 skills are more effective? And why?



CASE STUDY 2: PHARMACEUTICAL INDUSTRY
   
The pharmaceutical industry has been growing at fast pace with the introduction of new molecule and newer brands of the existing molecule in market. The sale of a company is totally dependant on the prescription of a doctor. To promote their brand every company recruits their representatives, who are required to visit the doctor on a regular basis. A representative has to either take appointment with the doctor for visit or meet him on their convenient timings; this could be in morning, afternoon or evening.
Conflict between the sales representative and his manager on sales territory:
As per the norm of the company, every representative has to meet a specific number of doctors and chemist in a day. This case is of a newly recruited representative Sachin, who Sachin was new to industry Sachin, was recruited due to his good communication skills and his great interest to work for the organization.

Questions:

1.    Does role of power play a vital impact in negotiation? Take the base of case and explain?

2.    Explain the behavior during negotiation in this case (that is the opening move, negotiation dance & influence mechanism)?

3.    What was the main reason for the communication gap in this case? And also explain the classification of conflict?




















CASE STUDY 3: RESENTMENT OF LOCAL VILLAGERS TO PRESERVE THEIR INTEREST AND GOVERNMENT’S DRIVE TOWARDS DEVELOPMENT OF THAT AREA BY OPENING AN ENGINEERING COLLEGE

Conflict

It is common to hear of conflicts arising out of rural population getting displaced for development projects. They often charge government of taking over their lands at prices considerably lower then the market price. Though sometimes it is also true that for any future projects Government acquires land and the project may take years to take off. Meanwhile landowners, in most cases the poor farmers, continue to use their sold land as before and being unable to utilize money properly end up in this intervening period getting dependent on the produce from this land which was sold to Government. When the project does start these poor villagers find it as a direct attack on their livelihood. This results into a conflict of interest and for survival as far as villagers are concerned.

Questions:

1.    Who was the main reason for this conflict? Government or the rural population? Explain in detail?

2.    Was it possible to avoid this conflict? Give reasons to your answers?

3.    In this case, explain the different levels of conflict (That is low level, optimum level, high level)?