4th semester mba (december-2014) question papers

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MBfr I2IIBAFM428 Fourth Semester MBA Desrce Examination! Dec.2011/ Jan.2O15 Tax Mana9ement r;ote: 1 . A$N.r aa! THREE ful quenio s ftun ONo.l to 2, Arcstion No. 7 & I ar. u,npulsotr. I a. D.line rhe temr'PeNon'asper lTAct. b What are the various heads.fim.me and discus ns imtonancel c. Discuss thc sy$em oaCE\VATI 2 r What is indeaed co$olicquisirion' b Brieily discuss tu prolision ol Sec 54, Sec 54EC & Sec 54F under liom.atiraleain. c. Cofrpute the$.itteo down\"luc fro.r thc foUoBnlg inbmarion iirr the o\b.6. ,e :a i2 =d.1 ai ai ': i) wDV on 4p il 1..:0 l t.00.000 2.60.000 2.00,000 BuildirB( &D 100% Date Parti las I Rs ti 000 ?,00.000 60,000 60.000 01,10 20ll r0.00,000 b. Ftutu the follo\ring data. comput hc busincss piolit lbr rhe,\Y-2014 15 \c pofi.or d -' r.R '000n,rc' J b' n r'tc fo l.rrngar 'oLn' l) Salaryro A, wh. is nol a*orkimpafrner Rs.50.000 ii) Sal,rv io B, \,ho r a working partner Rs.5,00.000 for the whole year liom 0l'0111013 ro llr0li20l,1. Thc r.DnndationBas piovidcd by thc decd darDd ()l,07120lr. iii) InteEst ro paftneN (ir l8r; Rs.90,000. Concci interes payable $orks our r. Rs 72,000 (07Niirkn ,,fr, ..#\uos,- il:l, cErri^L r. [r.l'*'*"7-'l

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Page 1: 4th Semester MBA (December-2014) Question Papers

MBfr

I2IIBAFM428

Fourth Semester MBA Desrce Examination! Dec.2011/ Jan.2O15Tax Mana9ement

r;ote: 1 . A$N.r aa! THREE ful quenio s ftun ONo.l to2, Arcstion No. 7 & I ar. u,npulsotr.

I a. D.line rhe temr'PeNon'asper lTAct.b What are the various heads.fim.me and discus ns imtonancelc. Discuss thc sy$em oaCE\VATI

2 r What is indeaed co$olicquisirion'b Brieily discuss tu prolision ol Sec 54, Sec 54EC & Sec 54F under

liom.atiraleain.c. Cofrpute the$.itteo down\"luc fro.r thc foUoBnlg inbmarion iirr the

o\b.6.

,e

:a

i2

=d.1

aiai

':

i) wDV on 4p il 1..:0 l

t.00.0002.60.000

2.00,000BuildirB( &D

100%

Date Parti las I Rsti 000

?,00.000

60,000

60.000

01,10 20ll r0.00,000

b. Ftutu the follo\ring data. comput hc busincss piolit lbr rhe,\Y-2014 15\c pofi.or d -' r.R '000n,rc' J b' n r'tc fo l.rrngar

'oLn'l) Salaryro A, wh. is nol a*orkimpafrner Rs.50.000ii) Sal,rv io B, \,ho r a working partner Rs.5,00.000 for the whole year liom 0l'0111013 rollr0li20l,1. Thc r.DnndationBas piovidcd by thc decd darDd ()l,07120lr.iii) InteEst ro paftneN (ir l8r; Rs.90,000. Concci interes payable $orks our r. Rs 72,000

(07Niirkn

,,fr, ..#\uos,-il:l, cErri^L r.

[r.l'*'*"7-'l

Page 2: 4th Semester MBA (December-2014) Question Papers

l2MBAfll428

c. Mr. Mrlresh.oircs ro l ia. forlncirsltime..nApnl16.2011. Hesarsi. Chcn.aiuttoApil 10.2011 and rhereafter shilts to Mumbai He depans fionr Mumbai ibr hn.ariveconnrvonoclobe.2,20ll Dererfriic hi\ rcsdcnrial $arN lor the AY l0l.t l5 lr0yarrn

Dhringunh betrveen de e\cise dury and cn(oms duiyMrxL snbnits thc follo$ins paniculars of his income lioh variousPY-loll 14. Determinethe total incone oftheasessee lor thc AY 2014 I

ar.$ ala Fronr \ LTD

1l IDcoDe nom tlouse propeny:50.000

(.) 10.0n0c

(.) 20,000

iii) Crowine ord mnuladuEoltea.iv) spemlorioninbnllioDv) Specuhrior in sblEs

c)6 00 000( )2,00.000(-)i.00.000

l\ Shod Em.ip rrlsain(+) 2.00,000

( ) 80,000long tcm caDrtal loss fioD lard ( ) r.10.000

( ) 50,000(ii) Crcs*innnrs nompuzzle (+) s0,000(iii) lo$ iiom lclli.g our P a.d Nlachi.e, y

a. Name at least six nems $hich crn be in.ludcd under rhelre3d lncome lio.l.rser \.nn..r

a sros salan ol Rs.6.00.000. He scs

, owi llle mured lirRs60 000

Coqutchis rotal iiconlq aorthcAY 2014-15.

the f.ll.$ino inve*nrnis / den.snc nnnn

lv Renr)mcnrollnJn ro SBI Th.lorn(d\!k.ni.nnr.h,P, ts\id.nrh.,Ll. 48.000

V Inti?ructlFb.ndsofdn i.dia.tubhc Co U/S

VI He has nrld edu.ati.n Le tbr'l chlldrdn12.000

BI

Page 3: 4th Semester MBA (December-2014) Question Papers

'/

l2IIBAF]U428

s c. Mr loslri is a ChliicBd AccounlaDl, foloniD-q is his rcceiph aDd paynens aocount for thevear endcd :l I /0:120I .l

B!I 60,000 B!

BY5,000 By

BvI eresl P.soii.e S,B AIC BY t2,000

8.000I'1ered.tr G.vi !e.nrni.c Dd$ iogs 1.tn,000

1,00,000 l].0001t.000

I n0 f00

Addniondl infornrarionsi) Cohputer was purhascd on JLrll l,20lr and depreciatioD is allowed (s 60% on dre

n) OpeDine wDv ol blo.k or@tor cam consistins ol2 motor, cxr {as 2,50,000 arddcpreciauon isallo$ed (i 20% on thc same

iii)Pe^onaluse olthemotorceise inarcd ro be 259iir) Fees lion clien* are atift l Ds orRr 2,000.v) Odreml expen*s includc a sum otRs..1.000 given ro hn daughtcr as btrh dayginvi) Dia{res include a sum of Rs30.000 gireD predun hr sell and tjrtuily ol

R ,0.000 ",J R.. .u, , n-fr fa,rqConpurethenett,xablcincomeolMrroshilbrdreAY 1,1-15 (r0!,,

6 a Wh.t n meant by 'goodt uDder rhe cenral excise act? (03 rhr!,b. N,Ir 'R'- a cbartercd accounranr \yas appoined $ linance danager rnh ABC bad( or

lAz0l I in dre salaryemdc ofRs.l2,000-500-20.000-1,000 10,000He *as entitled to lealc tavcl conccssio. ibr pioceeding on leave ofRs.rlooo. His actualexpendituE on rhn acc.unt amuntdd r. Rs.5000As the bank is situted at a place where homc food is availabie. R (ai offe.ed Trffinallowance Rs 6000- hn adual Iunch erpenses rmountcd ro Rs.i0,000.Rembtrrsemcntolftedi.rlerte.ses for rreitmcnt of R a.d hh thmil! in privarc cli.ic tras

Ihe ba.k hrs proyided nee nn-turnished ial ar Mumbai (rent paid by banhs : Rs.80,000).HoNcler $e pel,quists Hhc ol thar flat Nrs Rs30,000. The e.ployer nrovided n\o{atchnrn Galary Rs.1,000 per nondr each). Fee Ne olSanro car for oficial nse. car ca.bc trscd h r lourne y betseen olficc and rcsidenceFe. relieshment prclidcd ar placc ofNork (Rs.l00 per Jiy for 200 day,C.npute salary income lirr t|e AY-10l4-l5. (0ilk t

c. Nrh. K in\.esled Rs.1,00.000 in omament & Rs.50,000 nr equiry shares on L'r \,larh 20llHcsoldrh.Je{ellrryforRs.1.20.000mdshaEsforRs.80,000o.lrAug.20ll.Thcrcrasa%% brckcEcc on boththe inlesnn.nts. both ar thc timc olpurchaj. and salc. Clloularc d1c

tasbleamou.r ofcaFnxlgnin {torrrrk,l.f.l

Page 4: 4th Semester MBA (December-2014) Question Papers

l2MBAF:!t428a. \-1r Puie* Knmr has inlc$ed somc amour ir ABC Ltd. and drc conprny has paid hnn

inreEstof2.70.000a,lsdedu.tinslExalsour.e(,t0%.Ihechequ.was.oUectcdbythebaDt a.d the banh charses were l%. Hc nas aho receircd dividcnd ftom domenic canp,n]ol 65,000 and bank charees are l% compute his tax liabihty atrd lax rcbond rorAY 2014-201s. (0sv kn

b. J- aJapanesenatiomldncbses lho rollosnrspafiiculam oihis incohe durir! inan.iat yedr20ll - 14. Compute tod income for P.Y.2013-1,1.,) Jncome &om house property in JapaD, remiftcdby reMntto hnn in l.dia ltrolgh statc

hink.Iridi. R\ r00n00ii) Los liombusinessin Indi!Rs. ( I500,000,ii) Pron.s 60m spesularion business inlndia Rs 200.000.iv) Interest received on bonds olldirn conpanies oursdc hrdia Rs.15.000v) Nd dividc.dreelved lion.rapanese.o panies ouhide lndia (ta\ deducrcd ar souc.

c. Rnfra Murihy had 4 he!!y goods vehiclcs as on l/04/2013 Ee acruned 7 hca\.y eoodslehicles o.26/612013 He sold 2 heavy goods \rLi.les on ll,rosrolr He has brouslrrtuNard busines los oi Rst0,000 relarine to Assessmenr \qr 2010 l0ll ot ao \o iin,ed o.hn e* q!u,,1e rFJ, r op' iu o'.,.'.p n"','i o- or,.o',. .. p., s.4.1AI. conplre his tolllincornc chareeable ro rax for ihe AY 201,1-ls

d Derermln. thesmosofthe follosingunder income rd aci:

(!5c StudJ: DEF Ld '{ demrl\ oimLunre tor nnancDt

iii) Bo d forcricker contol in Indiav) Reliancc iiiusfies Lkl

Lc$ d !idend (Popose,ll

Tbe compant is cligible ibi ibllownrs DednctionUls 80.BDcpr.ciationUlS 12

ii) Rarn broth.^ doing busincs inparners[ip.iv) Pune canronmcnt board.

exrlier hy Dr P & L AC) r hdrtr\ r bori

2i,0oLl

Thc coopary wants ro set oft lhefollorvins: B/llo$olFY.200?,2003

As per inc.me ra\ Acl,iU n- absoibed depre cia tio n as per.

Compuic rhc lotal income And rax liabihyoaDEF Lrd. forthcA.Y.20t.1t5. (20r{rkt

wit hdBwl lro m !e ncml reserle

!ess denreciation (includinq deF .n revaluation o1Rs.70.000

12,100n.300

Page 5: 4th Semester MBA (December-2014) Question Papers

8l2MB,tHR446

Fourth Semester MBA Degree Examination, June /July 2014PeGonal Growth and lnterpersonal Effectiveness

,"

i1

.'4z1:.

a

\ote: 1 . Ahstet oh! THREE qteslio"r fio t Patt - ).2.Part R anl?u Carz aDptle.r-,

Whar do you mean byscllaNrEn.sslwritc abotrr lire role, organizrional ole and so.ial role of an individual.wh$ is Pereonal lrosdr? Explain rhe.o.cep! olpeaonal sb*d

Whd is peho.al chanle? Do you thinktc^o.al changeDescribc rhe se!en habits oihighlyelGctive peoplc.

whalis Conllici' w1) rhe), anse?Whxr are the esenrial skilk to rcso\c confl icl?Disctrs ihc dilleEnt lypesollife position.

wh, is Pcsohalnyl Menrion dre tundahental chracrerisrics ofpeNonsiitr. (03y!rk,whd is MBTI? Expliin ns use as peson.lrtl invenlory rool (07\r,rk,E\plabr.urrrcfiorJohaiL ndos Ilox ir helps indiscoverinl: selfand odres? O0rlrr,

(0r \srr1)isFquirdlExphnr (o7u'rk,

(r0]rrrks)

a. WIarh Cr.dlniq? Wbyit isinpondt in busines orgmiTurions?b \\,har are rh. blocLs ro cr.aliv ]?c Erilaih rhe popul{leclmiques to enhance c Eatir ny.

Name lhe drree elo iares rhd exisl hall peoplc.whalisTraDsadionalanaiFhrwn arelhcdlllcrcntl]pesorhnsotions?wbrt lre T grcups) Discus the i'nponance ot I ercups ond sensidrity

ADplication ol .noriona I inic ll igcncD b nrc trork place ls olgr.alerinporhnce D$cu$,o0\hrl,

Anallse the imponance oftime man4emenl ir inpo!ing the clliciscy olnanagcs.o0!h,

Raja and Suamr- 0E sreal clildhood i'iends md cl.s. rcilhborr Bul bodr are verydiflcrcm i. fiNno(onah]. Raja n rcry tuuch out spohen md used ro co municat. rreel).II. so.iali*r fan and makes niendr lery eally Hc is lhe pc6on uho ulsa,s like ro harrpeople arouDd inn. Hc s[arcs bh idc6 Fnd $ou8hG and hcn c his lcamin-g .bilit! hasi..rcrs.dalor Btrral r \anr rime Srvanry ls very sly xl very silenl peron.

Page 6: 4th Semester MBA (December-2014) Question Papers

I2MBAHRZI46

Hc is very nuch nishtd.d ofhis pareiG md always looks vcry scary. He.everexprsshn aeeling, rhoughb and emotions 10 myone. Hc had sonc poblens in comnunicalinewnh othe6. Hc has very?fe* fiiends and he alwals isolales linsetr tEm the srollP. BuiSwa6y is very hard Noili.g and alMrs rhiDking abour himseta Thcse rNo ariends clow upwith the sme lhns and lat€r Raja joi.s a very bis conptu! and bccones very succcstur inlife. Bur Swany never makes up hh mind io nove oui ofhis villaEe and be selttes lo be xvery ordinflry peson. He blahes his desliny and still he docs nor ni,rgk wnh dre

u. whaltlpenfpe onalities are Raja md Swany? Delne lhe pe6onah, types lhey depict.

b. Mnrion an, nne ra\ons rorswamyro iave such apeMnarity lSllllil:]c. Do you see people yho have Swary q,pe pcuonahies jn md around youl How shorld

rhe) ro.l roo\rrcome rhe trealn6{s

Page 7: 4th Semester MBA (December-2014) Question Papers

l2tllBAFM426/8r4r6

Fourth Semestcr MBA Degr on, June/Jult 2014

lnternational Finan; fuanagement

lt

t. Ansv.t o ! THREE fill .tuestio sIn aONo.I10ONo.6.2. Q:N'o.7 ahd Q:No.a ue lonpulson.

il

!

!.

,,

r What is intemarioial financial manaeemeDr? (03 vrrgb wrirc a bnefnote on IMF (or\trrk,c. Erplain different erchange 'ateresimes. 110:[!rL,

a what nbalanccofpatmefisolacountiig? {or\rrrL,b Horv do'ndstio ltuancial nanaseme n diflcr.fl totu inremr ioml nnarcial managcmcnr l(07iu,rk,

!xte.na1 c.mmdrcial borcfi lss

Otaft capita ransactio.s

55,1831.865

t41.t232,133

3,5127

38,28515,720

123\7,672)2,U4

1.207r,9:l l

B lxplain Swl FI hechanism. (03 rr.rt$)b what de the.hallenscs involved in InernarionalCapnal Budgetins? (071r,,rr9c. xYZ company h cxpecring io re.eire 1250 million Yen atler 3 monrlrs. lt dccidcs ro hedge

the ld.eisn cxchaDse risk using rhc turures barhet. Thc $andard size oI$e yen furuEscorrract is l2.s hillion CurenlLy bodr spot and fuiurcs yen re quoring ar 0.0080 USD indre tuMes Darkfi. Atd tnree tuonths rhe tunues are quotrng at 0.0078 USD and tne spol ar0.0077 usDi) Calculate gai bs bytadrg,n rutures.ri) Net norvs ai.rl nronths.iii) Bcnefit kJ dE corpomre byLdrg rhe futurcs. Oo^brr\)

a.whatrcthenedrodsollnlcmarionalCapiralBudserine? (B\r,rrr)b What is countyrisk? Dncuss thc variorstpes olcountryrisks that the Iljl,IC sare erposed

to. (0? \lsiA9

Iind out: (i) The balance oftiadc. (ii) Balan.e orcumnt accoux. (iii) tsalance ofcapir.lac.ounr and (iv) Overallbalancc ofpavmenr. OorLrk,

c. \\hat ncros ntc? Fron the lbllon,irg calcula.e INR pcr CAD.i) INR perUSD = 55 00/t5.20ri) CAD p$ USD:0.76/0.73

Page 8: 4th Semester MBA (December-2014) Question Papers

I2MBAF\t42618I4l6

Gn" lhe neanins ofdcpo:iibry NiipLsD, scus d iifoent te ch niqu6 of ibr{rstins exc ha|ee .,rc.

a. whrt is liquidiiy isk in tle conrext of inreresr rare lb. Discuss the role of IDL\ asourceofFoErgn inlesmenrc Whar arcthe dillereNes between cuncncy I'nvrnds and ctrircncy tunres?

Fird oni lhe rmnslatjon loss/sa; under rhe .uftenr ruie mcrhod and .urcnrrnon-cunenr raremethod on ihe b,sis of the lolloNirs data supplied by the Indian subsntiary to its parenrconpany in ttre US. The hhtoricalrarc is NR 50 pcr UsD dilt dre cuenr mte h r\R 56 perUSDAnounr in millions oIINR

The 6 tuonih inteEst rate lor C,nadiai dollar is 9% pa.. rhe 6 nronths inreEst rare lor USd.llr is 6.1s9/iP.A. Ihc quorarion for Ca.adian dollff spor is 09|I](],USD ard 6 mondrlbNard ratc is0 9025,USD Answerthe fouowine questlonsl

a. lvhal is herest Rate Pa ylb. k interesr Etepaityholding good in rhe abovccase?c. Is there a.yarbitraee possibilitr nr rhe aborc case? Dhcns.d Iflarse nunbci olopeBtors decide ro arbnase. what \yill be dre

A Foreign excbrnge radcr eiv.s theI nonth- I months and 6 mo hs to

following quotcs fo. FrR (Frerch Franks) spor.U.S bNcd reasurcr S 02473130,416.9r8. t.trtl.

a. Oon ight qnotes ror l, 3 ard 6 DondN lonvardb. lfthc foEign exchangc rxder, wshed to buy FFR 3 morths toN,ard. ho\ much ne {outd

.1.

Iithe foEign exch,nge alder nisled to buy USD I month r.Rard. how nuch nou]d hc

Assuming thar the FFR rre boughr by the lbEign ex.hanse tmder. what is rhe premiun ordiscounr lor l Donrh.I nontha.d 6 nronth forward rares ir pcrceniaqe? C0y,rko

Curcd liabilitles .100 ar\hShireLdp d ln00 Marlerxb e \erun'EsBondsPe'JinrLl.rm rls .100 i I' \e ry

Page 9: 4th Semester MBA (December-2014) Question Papers

U5\ I2MBAFM427

Fourth semester MBA Degree [i$ June /,Iulv 2014RISK Management

z

in

=,,.

.E9,=

?!

wnar do you hean by hcdge ratio? lnrdnEr the nedgc ario based onthe equ iontt=2ls(iff= fitue tricc : s = spor pricc) and cotrelation co-efficje.i is t (]. (03 \rarltWhar do $u mmn bl an htercsi rate l lxplaiD i. derail rhe ty?cs ofin,"t".,.u,."

,nr r,,.u.,c. Atr inlcsrorsold anvo Do hfuturcs contacr oo rvheat fora conrracrpiice of Rs t8 5orkg.

Tlr contadlize is l000ks olNlEat. The inntal megin requncd on this conrrad n t0% otthecontra$\alueand ttre hainte nlnc e nrars in is 8016 otrhe innjatm0rsi. rhe tuture price

j l0

Youare rcquired t, prepareaDaryiD ac.ou torrhc nrve$or

Nol.tl.Answtan! THREE quenio s /ro,tQ-No- t too-No- 6.2. Questit t No. 7."n 8 a,e.onpalsotr.3. L)tuge tf Notuol .lbtibution tabt ar.l scie tilic ukulatot pe ni .tt.

a. Di,Lrennate beNccn connodnyand Financial tutures (0rNrrknb wh.t do lou nrean by basis? Ex|hnr rhe tltee lDpothcscs abonr expected ba:is r c6e of

uNetunty. (07rirrrk,c Bri.flyexplainrhcrlT)esolrnk. Aho discus rhe risk manaqemenr process. (r0M,rt,

- l146 05

compute then nxriBic andrhe mrk al pEsent Nirh

I t20 1,160 1.200r95

write thc noDeyDcssoldroption andThe lu llring plr.pn!h J c trrded n

E\crc 5e Pr (e. I Pui Pr ler

lll

Erplainhowan inletur can create a buflcrllyspread. Using theab.vdoptions dm{ his payofdiagratuand explain nis protir / loss fthe spor Drjces ar Darurty trc 34.80,72 nndn5

a. \\,hal do you nlean by "Plai'r Vanilla Swaps l (orNrrrktb. \\t!t is risk Dan"genent? lxp]aiD in dcr.il, rhe methods ofrcdu.nrs rhc e\pos@ ro crcdn

risk. (07\tark,c. Comprny A(I{ vishcs ro boftos U s Doll s ar a fircd rare ofinreEj. CojnFany RA(

NRhes lo bouos .rdparese Yen ai a fixed raie dr intcr.sr. :thc amounr Fqlned by Moc.mpanies aE ronghly rhe sd,ne ar mftnr exchd i ge .are.

Page 10: 4th Semester MBA (December-2014) Question Papers

12MBAFM427

Design a swap rhd trill ner a ba.kMake the swap equally attftdive to

oa inlrcst is l0% per annutu-call optioD on the n.ck \irh a

(03Ilrrk,contnuously compounded.long

actins as an intemrediarx i0 basls poi.c ter ann!ft.both tlre coinpa.ies and ensure r(trc,{. cxchansc rnk is

a DilieEnriare belwei slrc$ restine and back resting.b Wrire anoteon: i) Credit default swaps ii) Collatenlized Debtobllsation.c. what is vAR? Iaplai,r the yflious nrerhods ofcomputnrc vAR (vnlrc at Rnk).

{ith nrc maturity pcriod :

Compute the loNard inteEst rates, for the second. third and lbufihc. A$ume that ! mrkci capitaljat,on rveislrted ndex contains only

The cu.tntulueofthe inde\ i\ 1056

d Mr. Shaflna has aereed io sell a call.piion on r stockpremiuD Rs 10. The na&et Drice ctrnently is Rs 210

A stock ]s selling lor Rs 500. If the risk - lrec rateconti.!.usly .ompounded at rt ninnnum price irill thest ne pdce ofRs450 toaruring one month later sellfor?Thc ibllovnrg rable givcs the inrormto. aboui 4ro ntes.

a. Call Olrion pieniuD.

c. Thetaofan option and inte9rer the $med. Rho ol d option ed inte@ier the sane

c Which stRtesy has the oprion tader $ed if he has bought one call and lyo pur optlons lnrfie same exercise picc and expnatlon date expecring that dccrcasc in stock price is norc

CalcDlate the pri.e orthe tutD.e.onka.l $ith cxpnation in 60 days on this lndex. il lt isknoe thar 25 days liom today, co$pany A *ould pay a dilidend orRs 8 pcr shaE. Thernk neemreofinteres is 150i pera run conrinnouny cotupounded. Asuincrhe 1or sne tobe2oourlts (l0t\rr[,

a Howdo you identirythebelo* mcnttuned pmicipan6 inrhcdrilatives narker:i) People willing to asrnc rnk 6y forccani.g lhe nolenrent olstockprices. (0s \r,rknii) leoplerho makeprofihout ollhepricedi crmces in two diflerent markcts.

b. Comment o. the follo*ing natemenr 'The tnne decry I Thcta of an oplion lalue n

ThecurentsockpnceolxYzLrd isRs206 A Europcln call oprior wir[ an c\ercse price ofRs 200 Nill expire in 47 days TM tcasurJr Bill rare is 8i/o p.a a.d standard devirtion ofannual refumsofxYzsrock n 0.26. compule

(05 \rark,XYZ ro Mr. Dccrvar rr Rs 270 ior awill rhe option bc eaercised or notl

105 \h ,

Page 11: 4th Semester MBA (December-2014) Question Papers

I2MBAHR4l7

Fourth Semester MBA DegreeOrganization Developm€nt and

June/July 2014Change

! :,.

,-.

c!3

:

Stdtc rDd cxphnr lhe ditlarences bet*een intehal and cxtc.ral consultanrslxplain rhe r}I)s of .hanee.

a $har n strategcphmiog?b. Explartbe posilnc nrodcloacha]rgc.c Nbat areappllcadoDs.fOD in hmilf busne* slncmsl'

Whxt is sork lilc bala.cel,Brieil) e\plaiir thc nldn idual level d,agnolis lyithin an orsantarion.Evlain Ihe ioLc and career parls oiOD proiessionals

b E\plaio the prupefiei oaop.nsysrcms nrodel.c. Ttuce rhc historyDloD

b (d."nd.'p.. 1'. rr.'-.r..'Jrr'olo'.'r. /l.c E\pllinprocessorienrcdsratcgics.

\Iho is !D OD pmdnioner?$rhat is oryanizarioD confroDt.rbn ,nceriDgl \\hat are tu sreps involved in

whar rrc rhe suideltus for dr. succe$lul nnpEmeDtation ofOD inreiaenrioNl

Notet 1. Adse.r aa! THREEJit qkestioh: froh Q.No.] to 6.2. AN,. 7 a"rl I .re totattlyr],

'r .r .\d !n;.or diio I po c n'ridJbl".l'.lerg.factor s both inrenrlard c\rearallhar ior.c rh. oredizaoon ro bing abour

OD consulranr perb.nsa v,nety or,ole! Rithnr an oEanization ideltify.onsullant a$trmes ln r[.n]lloni',o snn i.nwheD rhcpnrcct ne.ds oDsonrs tu$..oDnih. and prliciparion olclienls and *orkingtuadde$coflplernrobleins 105rkik9ld.nti! $hrt rolcs an OD co.sullanr lakes nr dre tuUo\yins siruatioD: when an iDdividual lstoubldd and $a.tstomxinizc a! iDdiliduals lcaring lron crNri.ncc (0s\rrk,Idenolv whar rcles .i OD coruulr0nt takcs h rhe I'll.rving situario.r whdi dr projectnccds klo$lcdgc ihd is hilhly spc.iali2.d like iNralling computeA. conducdng muker

Page 12: 4th Semester MBA (December-2014) Question Papers

T2MBAHR447

Mr. Ajay got prorction l.si ycar and has been ,osted as foremn ir . produ.tion shopBelore his rromotion to lhe managemenl oadre, he had been a supervhor for four yca4, Hiswork on thal job had becn considcmbly ouhtanding. Ir my be recalled rhat Ajlyjoined theconpatry as a hade appEntice. lle did wel nr his taining and i. his subsquenr jobs. Herose io thelob ofasupdvisor in abont sixyeais. His hrman rclattuns Nrc geneEllysoodHh coileagues had wished hnn well on hispromotion.To nnptuve dE workins ofhis shop, Ajay intDdlced soDe chanses in his shop. He rc-allocatedtheresponsibilitiesofhnsuperliso$andchangedthcshiftsandmachhcsofsomeoterators. He rhough rnat lnh cnanse wouid improve rhe wotking ofhis shop. Eowever.noo rhal lime on$&ds Alay began lo hale tonble as a ibremn. His gale iim rhe silenrtieanrj€nr. The operalo^ seemed ro nake misokes even in snnpb things. Eleryday thcrcvas a fi&hine shutdown. By the end or rhe quarter, Ajay's Norkshop Nas showiry thepoore( produciion re.ord in rhe wlolc of plant.

a. Bri.g out the min learuEs ofrhis case.

b. \lhat do you fiink has gone Mong?c Did Alay nake a mkake by into du. fg r he changes? Just ifyd. If you verc Ajax rnhat would yru do to get rhe thines righr?

Page 13: 4th Semester MBA (December-2014) Question Papers

"" f l f[TfffflFourth Semester MBA Degree Exe , Junc/Jul) 2014

Strategic Talent Management

\otet l. Atawt an! THREE |tll .luesnoks Imn Part-A.2. hibBa lPa+Catu0 tptl\or!.

Dennc perlormnce nramgerneDr sy$enwbat is vork lifc balancel E\plail lhe .ofponenr orlvork lircbalance

Explain thc danges ofapoorly i$plenerted perfornuncc managcmcnr

Br ic il y e la borate nre c h aractcrisr lcs of an ideal perlbrnunc e nra nagem entEl.borate 160 dea.ec fecd back as an devclopnrenral tool.

a. $rrite \hort nore on: i) CoDpaten.y: ii) Compcntenct nappingr iii) Comperency(05rlrrk,

b Elplain lareralhniDe. qhen theie n a discoffirluity nr thenrccessionplan. (0.i\Lrk,. Ehbourcthe steps iD coMuctn8 a behaliorle\cnti.teilierv. O0M!rk,

a. Define employcc engaCenenr lxplaD rhe ltles olensasement. (05lrrrk,b. tixpl.in the horr.ntal to(ings ole'nployees (o5Nlerk,c. Erplain the proce* ofartraotins taLent nr today\ compctirive $rr]d. (l0ru,rk,

a. Explaln thc suc.essio. phtoing process. Oonturl,b. ExplainQl2 modclofcallun. (lorhrk,

!AAI=_ENlr. Am holdins an impoitant key position ln your organi2arion has resigEd You deasked ro conductane\it intefliew Hoi! d. youquery Mr. Anand to get infornrationl,

(0SM.rr,ThetuMgerofxYz Ltd nphmi.gto coach the enplo)ees as ap, orthe devenrtinentll'r wl.-..'. !ork'o-l'r'.t. rx. J ?n'.coan..e.oploJe!

As lhc superlnor .f rhe .d'npan), you rre obscring tbat rhe eDployees in youro4annation arc discrgaged with rh.n Nork a1d then perturDnce is detoiatins day by ddy.As thesupcnisor. Nl[r be$ sacrices you would tbllow io.ngagc rhecmployccs (051lrrl,In order to coLlect drtx aor oonrpctcncy mapping the obsener is,sked to note do{n all thebc[av]ours ollhe eDplotees.l$r $e obse arioD tools that my employed in collectine

I2MBAHR448

:

4!

:!

a,i2t. .=

E'i:

aZ

a. whar n llknt nranaseinent?b. Lxplain IIE types ofcdeeranchorc Expla indetall. thesreps in\ol\ed in competency napping.

Page 14: 4th Semester MBA (December-2014) Question Papers

S & S Electrical c.mpan), is snured in Vysore Thn is abonr rbur enpb),ees norkins i.the.anpany, Radha is 26 ycaN old and engdscd IoAlnrash. John (Bn.heLor- l0 )ra6 otd)Alinash is engased Io Radha and dominating chamctcr. Aslam is r supcrior Eu] in thc

Avin ash doesn 1 waft Radha ro berorkirg trt hh level John is a Eiend olRadha bnt is srlurealous of her achie venenh. Aslain feels \rofren should not bc work g. kind orln ancienr

The nanagcmenr nakes a decisionto move the supervMr .ur orrhe organnarioD and makeonc of ihe four as ne\e supeNisor. Radha is chosen as the .ew supen,Lor. The resr.f thcCI'ls aie not happy with her pDDrotio.The busi.ess mskes a pro6t of I0 crores clert year. Last yeai ir sar 12 croies. Suddenlynanagetrent says to hcrthat shc should make r0 cnres in mxt 2 quaftq (6 nroortr). Radhadocrlt have any clolce is since if sbe doesn t imke n, Awinash will be fr.nored in herplace. Avinash G so upsel snh Radha that he willdnch her ifshe taih rhen. He is nor happrto *ork und.r hs as she is ergaged ro hiD.Aslam is a seniorgu) lDd fsels veN bad to rcpofi to Radha. John is.k rr rcpon ro t"dhab$hasevil ifieniio.s inhis mind,b.ut Radhs

I2NIBAIIR448

OuestioBl

Do you agEe $nn mana8emeni s dccisrcnSubsrafiiaF the ansver \rith reasonsWill Radha gcr succes in he. ner rclc as

ln rhis case. did maEsgemenr idenrify rhcco6Percncres. If yes \yhlr? lf nor Nbyl

to $meed Radha in place of supeNiso(07lulrkt

supervnor? Whar is her colleaguet onilude(06 \r!rk,

second line ol leadeB .nd derebp tbeir(07:!rrkl)

Page 15: 4th Semester MBA (December-2014) Question Papers

I2MBA4I

5

Fourth Semestcr MBA D€qrce Ex. min=a66n- Dec.2 0 I 4/J, n.201 sSupply Ghain Management

a

42a2

:7

1.

aa

;loie, 1. A,tNo a,!2. Au.nion ,\o.

i what is bull-whip effecrlb \\.ne shor notds on:, CRMic. ErplaiDthc facto( $nuenciirg

Max. Ma.ks:100THREEqtatio\s hon O,No, 11o I,No.6.

7 akd a orc.or1pulsory.

rhe srDply chrin rcxv.rk design decni.n

Extlrinllle rcleofdhtribniion i4lhesuppl! chan. (03l\I.rli)Evlain Ihe vrrioN decnlon phases nr i suppl! chaiD. (07nrlrl,ErplaiD dlilerenr modcs or transporarion available ior shipment ofgoods. IdeDriiy rhenslrcnglhand ncakDcs (roMrr[n

a. D.ilDc supFlychainnranagemenrb ErrIin rhe li]ctoNafectine theco$rDd nrponan.c orlogisticsysten.. ErplaiLr rhe diliiEnr design oprlons i.dnr[ulion netvork h supply.hain

Strt. any i c|aircrcrisrics olinlormilion.\rh arctherisks,nrolvcd in usnrg 3'J pany bgnricslSrare and explain nE da.agerial ldvs^ t, deal rnh obiacles to co-oidinarion

i \\'h.t is pnsh lldpull viev olsupply c|ainlb \\h! achrevnrs sraregic ill is.rnlcalro compary: oleral succeslc. Deline aPFR a.d exFla inJdtrrl CPFRp.occss.

ExFlai.l'dard fiPl. (BnlrktErplain difcre.r apFtuache! urDalyze loaisnc slsten (01tt,rt,ldenrill,causesofrncbrll wlip elle.l olobstaclesro co.ordination in a snpFlychain

1l0i\rrrk,

P.,\RT - BDenrnd lbr movic ri.kc( a tuuch higber. Olerrhc r.ekend. sh.n teople aE not at wolk.\har re\cnue man.-qement te.hnrqucs catr bc used bl multiplex oBneru to maximize rher.\.nuesl, (05 r.k,Nhar r.lenue mrna-r.m.nr oppormrlids are rlailable ro a rtu.k1ng tinnl Hoq can it tlkea{luDkle oaa1ese.pF.rtLn ,*? (0sM!.tr,A sNclally chemical company h considcri.g erpandn,s its opemtion nno lrdia, $hcrcI .onprnies dominire rhe consumprion olspcclllr! cheDicals. \!har sorr ofdisGbutionn.r \! L .hou d rh s lonrnJn) !n

'. er

d Titxn oicri ^\,0

bdrds ol r'arcnes Sonat. aDd Faslrack S.nxra is targered for ! nusnurket rhile. Fast".l ir rrgcrcd ar a Frcmiuto seetnenr. Should tiran na.agc born 6rands\Lithnrcsmierupflyduin.r$aa,arely Explai'r (0sNrrrk,

Page 16: 4th Semester MBA (December-2014) Question Papers

I2MBA4I

' PART - CCASf STUDY

Dell relies on a unique supply chain slratcey thai gathcs larse rolumes of customerinfotuation through its dnect saks modd and shde t vith i.t.mal procuEnrent and sales

dep3ltment as r€ll as extmal supplieft. Thesc close rcLrnJnships allovs dcll to kno\ what

to supply on Eal lime md aho very quickly and prcchcly meet rhe denand, Nhilcnaintaining loq inventory. These rehdonships oable io forsAt accurately wilhout filling a

pipelibe of fi nished goods.

To succe$tully foEclst, Dell mintains a constdl flow ol data in lwo informarion loops

One berween customers and the Dell salcs tcam, a.d the other amonE sales. procurcmcnl a.dsupplibld: This hehs dell io know hol,$cll slppli.rs .an s+foa dEseforccastsaMaho on

other end, now dell sales team can etiictivcly prcmotcDellt comunlcation system provides a rich mix ofcurrcni and hhtorical nrfoflnation lbout

Oucstionla. Erplainhowefectiveiydiferentdrivetsof supplychainsreutilizedbydell.b Explain Nhal role Infomatjon TNhnolosyplays inDeliunique supply chaiir

Page 17: 4th Semester MBA (December-2014) Question Papers

ts] ]2NIBA42

ljl

fourth Semester IIBA Dcgrcc Exrmirrtion, Dcc.201;l/Jan.2015Total Quality Management

^\otc.1. A s, tr (n!- TH RE E qnnio,s t-o"t LNo. ) to ONo.6.2.ou.nion )\o, 7 a"l Itr..o,tD"tsDn

a D.hrc Qualitl contolb Erphin Denin!tscrcn dexdlrslns! "B PR hr5 maDy mcanmnrem isrtre\ to be addrcsed Dnluss rhose i$u.s.

r. Whal d. you mem by TQIVI lb Dtrc(s an) scvcnelenrnadflSO 9000c. D s.r$ the itos n,\olred Kan rDrolunnnc.

D,i ss the ler€lsol CYNllnodilSoE di].ltEnl Nls ofsix siSnr. LrtLrn then bnefly

a \hxt L P3r.ro principlel

c (ros6r- has offeEJ 1,1 dcp Drogrn lor puEuirg qualiry inpovemeni'

Discuss dr. i'nf.nrni rerluEs ollvlilcolD Baldii!e \xrionalQtrxLily A\]rd1:\ILrinnrcsc\enQCtoolslo.pmce\si,npmvonenr.

\Lhxrdo ]'oL nlein by Qualily lrlan.gement Slsrcnr:Disuuss DMADV mdrhodology.lsi\ sigDuDescnbe d,c conlenh ollso 9000.9001.900:,9001and 900r in briea

Coboulson :

lvlrAhnh. qualiN Dixtrigcr oIABC conpxny say\ ihrt \omen0mberoldelids isnomal ."lrnPi!!ing qtraliry ircrases !or" \'lr Bra.rh.lXYZ ronp.nl sals lhar "ourgoaliLLAc 7co dellcis . _knprcvine qurlrM)p0ll} frys for ihcla ln lhe lonr.I ol quaftynumlen1enr,\'hriisrlr rlre)- espcdDgrboullDiscu$. roarrlrr9!k Chandxn. q!.lnr nanager ol\1s l-umbinicomponcna Ld.. dne.6 his rubo.dinrie ronull thrxugh a sy*cnr tarallrhe ra\ ftxknaL! 1o mi\e \hcrc" rhet !E needed ald \he!'thcy ak needed \lhltconcepthe is apDlyin! ] Disus

c \'1r Drn.i, \hilc addrcssing h* rrnployees savr'1regEr, dcxrcinployees. rhal ouE inoldt bei comprn] in the industy \|e \hould rncasurc our.[cs { II \ls Loris .ompbtLrd. \rro r'! dre ben n, our rdNlri. rsi B1 d.u podrs A! a qu.lir] coNullanl. hoNqo'!JU!iiL!nn! ,p ubkn Dnun

Page 18: 4th Semester MBA (December-2014) Question Papers

l2l1BA42

d \4r Go\r han ol N,l/S .rastolne Conpany Ld., n 0 \oricd nr.n The Compatrj- spdrtumance. Ihe quallryolpiodu.thave notsho*n any,mprcvcmcnl li.m dr bd 4 leNHis lrie.d aid CEO of oder compary Mr Rajesh olf,. ,s Lavcnd$.onpxny Lrd. c.nsoleshnn and sars Mr Covadhan nlease an$rri ft\r tundQrncnlal qucnions is sh! rrc loudoing the lhines rhh Nay? Whrr arc lourrsffrptions in doing so? Ans\.r 10 qrcnionr llhcdrese wili lead to reftove obsoldc atrd inappropriarc mcrh.dC' Whar .on..pr * bcing

It{/s Ash\ushaklhi CorloEtion, a nlanui'cr'ftr orheavy trucks had ! lorg aDd bntcr hislolv olenployee relarions Th B comp d y dpenly pmcriced -mMagem.nl lhrough r.noirn_. EngireNdomlnded dre culture. One .l'thc compmy s ascrnbly plan$ devotd mxjor rcsours 1o

naftlcalpiocess c..tol. An cnirc depanmenr $afltd $th enerneersjustlried ils existence b)kccping contrcl chrns. The cnelDeer coLkcled and norcd dda on a coolptrrer nnd poird rhcchans in elerypmduction depannur onc. in cach reel The! aho poned li$s.lpr.blcmsand defecG rtnbuuble ro erh dlrnnfrmr Anolher depanmenl kept nsellbusy rith \\or(rcdcsie!- and _asembly line balanclng. Thc plxm \is h,ghly podrcr focuscd. NJalcrlolnoled sno o th ly lron onc o pemrion to de olher.Despit lhis effon qualily Ms nrediode fi besi Mrs Ashwash.kdn coFdnron Je\oi.d nror!li.lory space to ftlvo md repxr opB.ations thm to rhc original assembly Th. indi\idtral aidsoci.l aspeca ollhc srslcm sere largrly i$orcd. Pcolle lacked inleaeNotral skllls. cornoneoah md nr$ md $cy could not hopc ro all.in the* qualiries mrler rhe exntir! p.{r{nctuE d rcurd system.Though lor olponeN \rere displayed wirh the slogm Do ir Shrbrlhensriime. Quahty sholl be rhe hnllnurk etc. Si.thr crl thlnktug xnd rai'ring \ornd$$oughr olby the compary.

!uggeftd by \'lr Rajesh? Disors.

Connnenlon the Hun Resoune VaDrsemenl (HR\r) ol\'l,s Ashs rshakfii CoDor(ion.(05Nriir,

Ho\y does HRM adcd TQM in rhe conpdy I OsNr'rktllyoubeconelhe CEOolthe.ohpanr'.whatsouldyoudolli\phin. (0:Ntua,lf yor are a qurli$ ..nsuhanr. do you ad\icc rhe compdtr ro conrin0c -.\'rrnaeenienr

rhrough rerorisnl'? Uh! or \hy noll l:xflnin.

Page 19: 4th Semester MBA (December-2014) Question Papers

\-.

); t2MBAFltl25

ec.20l4lJan.20I5Proiect

MBA Degree Exami ion, DAppraisal Planning

Tnne: 3 lxs Max. Marks:100

\ore: t . Ans||er ant, TIIREE Jml qt$tions fion Q ro.1 to ONo.6.2.ONo.7 a"d qNo.8 arc co,tp te,4,.

a \lentn ranytlnreattuiburesolcaFirxlbudgering (0r rr,rub. E$lain in detail rhc narure and,pplicarions otBCC harrix and C.E. stor liahrnatir.

2

i=

):

,a

ZE

+i:

a

a

Dis.us in dcrailtbe lirceh olpqect am\sis.

\\ hat arc v.rLls nrlbods ordenund ro.eclstinslErplain rhesreps in!oh€d in proiecr mtin! index.Brieflye\plain SPACE upproochand \arious po stures a$o.iared u ith ir.

E\|Lainlhc mea.rs ol rhe tc.n IRRBriefly extliin rhe banies rhat re$lrs in posirive \PV prctecrs.codrpany is iorced to choosc bctwec. rwo Mchines A and B. Thc No machines ared.sigred diffeEnrly. but hale identical capacrty and do exacrly rhe sanc job. A clrRs i hkhs and rill las lor 3 year lt cost Rs.30000 per year ro run Vachnre B N aneconoml, model.!(i'rs only Rs.2 lskhs but will hsr lor only: yeais and costs Rs.1,20.000rorun.IhesearcEalcsshnossThe.ossrErorecastediDrupeesolcoDsta.rprrcha.lngpo\er. lsnore rax. Opponunity cost is l0%. which nrachine rhc company x shonld buylThcpEseor \dluc orannuitylbrI yeaN rdilearsar|]l0%isI735and2.486Especrilelr.

00Nlrrrs)rwhaldoyoumcanbyNeiglleda\erdge.olor.apitall (o3rl,rktb Expbnr larlous techniqles ofrisk analysis. (07\brk,c. il A poniirlio.fhvo se.uities I and l. Tbe lbllo{ing inlirnnari.n is arailable whar is

thc sEnaa deliarion olponfolio rcruml,r'=06. \r=0.4. o =010, dr=0.16, nr=0i (0r }I!rr,

ii) \!har is the pofifolio s0ndard dcviation tnr, Nvo asset ponfolio comrrrncd oftheiirlbwnrstvoaseuilthecorelxrionsofrhclrrerudis0.5? (0?]rark,

a. ExpandlPP. DRC&dPAD. (0:r Nrr*,b. lxplair rhe appn,nches ro thc soci.l cost benefir anxlysis (07Nkrk,c. A cotupaD) is consdcrirg an invesnEnt Ftuposal to iNtall nen miuinc conrroh rhe

piole.r Nll cost Rs.50000. lhe lacilny Ms a liii .xpeltancy ofi yem lnd no sallase\.lue. Thc comprny'sta\ ture,\ 5t% ud no Drc stnent tax crcd n n albwed. Thc finn uscsstmigll linc dclEcrauor The e(imared cash norv bcaore rax (CIBT) ,ion the Brpdsed

S tandard deliar io. ol.xpe.ted reru.r

l j

Computc lhc folowing: i) Parrba.k pcriodr ii) Avrage Dte olretun: iii) Nlv at 10%(l0rl{rk,

;3\ 3i

Page 20: 4th Semester MBA (December-2014) Question Papers

I2}IBAF\,I425

a. Explain the mcanine ofshad.wpn.e lorNr(knb. wrne a notc on constrainis to be handled by a projecr hanaser. (071\r{rktc. AaC company linnred proposes to star a neN venore for Drnnlir.rurinr flou^cenr b0lbs

The estimates olncw ve.rure ae as ibllo$s:Output olbulbs pcr an.ufr = 1,00,000 Nos.Erpected salcs revenue per num=Rs 1.50,00,000Fixed.d(\= Rs '15 00 000Varlahle..*! = R( 6600 00r)

i) lind oul rhc efiech on bnak-elen-point fsellms pice comes dosn Rs 40 per unir.iil Whar nappens to BEP il llxed cosr in$eases ro Rs.40,00 000?iii) wnat Nlllbe inrpactonBEP ifvdablecosh increases by 109/!? (r0]hrkt

a Hov do lron tidge rhe gap bettrccn$mte-qyplaDningand financlalamlysis? (05Nturk,b. List outrhe rrocedur a$ociared *nh. tu aysihre rhe remr loans (05Nrrrks)c. what are rhe stcps nrvohed in nenrork cmshine anal),sis? Os Nrrrknd. An invesmrnt prcjecr inrclvcs a cnrenr ourlay of Rs.l000(], The hean and sxnddrd

fe.tlv co clatcd ec r.llo*r1

5000 t00o .r000

CalculaE NPV and o(N Pv) lsunins a risk rare ol6%.

On 1/0412012 MIS Bhamth linited Rs.9.00,000 sbare clpir0l and Rs.t,Oo.()o(] reservesasain$ Rs7,00,000 inrcsed in lixcd a$ets. srocks and Jebt.r (cE Rs t.70.000 ,ndRs 50,000 respccrively. Tnde and orher fedirom Rs 50000. To sustanr gftnr$ $ actjvir_v(ock level is pmposed to bc i.cieased by 50% by rhe end of year NlachiErt NorllRs.50000 is pioposed to beptrrchascd dnring rhe year spercannal budger. Estnnxred Fftnittur the yea. is Rs.1,s0.000 rlier .hargins Rs 50000 as dcpreciation .Dd soo-1, .r pnrfir forprolnion for taxario. Advan.e incone rrx payment is cstfrated at RS.5O.O00 Tradc .ndolber crcdito^ are likely to bc nrcEased by Rs.15000. 5% dilideid n to be paid andpiovisDn for l0% dilidend aor ne{ year is to be nade. Detrros arc cshnared tu b.ouEtandins for3 monrhs salcs. Sal.s budget shoqs sate\ ofRs 12.00.000 turtheyear Makean estnmte olcashposnion at dre cM oathe F.od by pEparine prcje.red balaffe slet.

Page 21: 4th Semester MBA (December-2014) Question Papers

Fann p udurr tr : Crd en JIIhA ! ol in US minuirlurn{rl,ousrnd\ ol Cendrn Jo .^ lir lan l. tOl4 L lhorrierchmge iate was CS I 6/5

Fimr pmducl bahtrce drcr (housands olC$)

T2MBAF[I42618I436

Dec.201.l/,Irn.201s

(07 M!rk,conlPo] lh bal,ncc sh&l nrbelow. Thc Ja.uary l,20ll

Fourth Scmester MBA Deqree

l]|ternational Financial Management

'!,

=.za

i71,2

a:!a

c Rclod thc lbllo$ing trans..lons rnd prcpaE rlEbxtmce ofpalnrcnr e dddnti) A US Inn erForsS 1000 *onnofgoodr robepaid tn sixnonrhriil A US rcsideDr \isns London atrd spends S 400 on horet_ meals and so on.,ii)US govcnnlenl gives a US bdk balmce olS2OO ro rhe govemment ofr de\eloFmg

nadon.s nanofIne US lid progrummc.ir) A US rcsidenl punhases roreisn nock lii $300 and pays toiirby nrcE6inc the toEjsn

b. ErpUiD $eorgMi?alloDal$ructurcdnd runctionsot LVF

bankbal&ces in rhc US.\) A lorelen iNenor purchases 5600 ol Unitei Siarcs rrersury biils d prys

ddM his ba balan.es tu lhe United Srale! bysn cqual ano0rr.

Whrl is dn drnd i,in.r

lndia Phfln0 Limiled an lndian b$ed mninarional company. is elatuahg M ovcEeasiny.nine.l lroposal. lndixn Phannu\ expons ol phdama..ulnals pllducrs hx\. increaJedro su.h d crrenr lhd ir is ronsideiing a prjecl lo build rpunr in t\e us. The psje.r rsi." r. .r r Ji ",

' r " \ a0 r i r o -d..rpecreo.oe,r.d-rl . into\tr c.r.. lo\ .

l550

Thc cutrent spot cx.hdge rarc ir { t5 per US dollar, thc iskliee nte in lndja is11li and rhc rirk Ee. nre ir dE US n 6% UesearcnlesobiencdirrdetDan.irlmarkels

lndia Phrma s requiEd rpee rcrumon a proledotrhis kind is t59;. Should IndiaPhenr mdemkc rhis prqecr'l Use bdlh Honre md Ioreig .unenct appromh. (ro\r, ,

rotct t. A,eter.nf rHREE Jrt q"Nio t/io", Q.No.1 toz. Q.No. 7 ad Q No.8 it. co,tpttsot),.3- AteolP.r tahbs A per,,ite.l.

Hos docs a cldan floar dilrer nom diny fioar?s\plain rhe vanous intenralional busires nerhods

Clpitxl 6.20.000 Net ptanr md equtrrrneDr

::1:t?ilfli1i..' ::'333 *lllll,?,..Cash

1.20.000

Page 22: 4th Semester MBA (December-2014) Question Papers

12lrIBAFlt426/B1436

i) Deleninc Fam prodlcts ac.ourting cxponre on ]]n 1,201.1. nsing.untnt raicmerhod/fr oniioryhonrn.nitory mcrhod.

ii) Catculale Fam prcducls co ribudon tu ns parenlasoufr ng Los ltrhc c\chrnee 'oteon Decenber 31, 2014 was CS I 3 perS Assunre ill ac.ounr renrain as rhey \rere ar

rhc begiming orrhe yedr OoN&ik,

x. Whal isplaD Vm,llasvapsl OrNtias)b. ConpayAwisnestu borowdollarand B yens. The iniersl nte applicable to A md B rE

Theexchmgenle iscurenrly 120+/S. E\tlain horvyoucrn nnc(trre I .trftncy S\VAP lhatNill ner ibank4o basispoinb 10711r*,.n'i.J'. i'd,o

' d.'rori! L-.flrr r. d / nN..m ., 1'. '

. .

The .urcnr exch sc rale is +120/$ ll infl ionc alcu late the expccrcd crch an ge ote a ner one yearExplain iry $o melhods adopled fdr mcasuEmentMoney md FoEier exchanee mar*cE in London

ii Japan is 5% md rhat m USA 69i(01\rnrkn

olhnsacrione\plsure. (o?]hrk,and Ncs Yo aE rcry elijcieN. You

harr Ihe ftll.sinc inftrmation:

s !0.6.:50 $

A$uningpanrycondniors hold. esdnare innarion in rhe Us ne*lYear

a Di$inguish belween leadirgand la8ging r..hnique.b Cilically evaluatepurchEin! po{crr iryrheonc \{die sion nots on rhe fdllo*ing:

, SWIFT i, LIBOR

r. An lndian cohpdy Alash Lld. imp.ns mx.hinery ronh !2.0 nilli.n rnrt is topqmcnl aner6 monrhs The curcnlrales aESpol mG : a 66.96hound6 non$ iirfrard rate:4 67 5o/poundi) whatshould akash Lrddo ifde! erpon fiarin si\ mon$s rime the pound sill scnt. al

ii) Wlat are rhe oprons Nrihblc ro dc .ornpml in .ase ot xn expecrcdappEciation/dcarciarion ln rhe npee )

b. Serourbelo* i\ rahle ofcms i.i.cDEUISCH

SIERLNC

ForFnnktun.Ne\ Yo and Paris. au quorcs,rediecl.Il.U the above quorcs wcrc availxble at lhe srme iimchoN mighr r tmder rake advnlage.frhe ntusiionl

2 of:l

lir London. xllquoi.s orc indiresr.ind as ning no hnsacdon coss.

Itsrh4t

Page 23: 4th Semester MBA (December-2014) Question Papers

I2MBAFM426/81436

3 An Amcrican fim purchBes $4,000 BonI olsoods (fF 2ooo0) Son o IreN[ compmy.Thc Anencd disribulor nusr make lhe patmei in 90 days in rrench litrncs TheioUowing quotltion md eipecrarions exisls 6r rhe llench lrsnc:Presentspol raie S 0 2000 90 days iofraid Ble 0.2200US inlere ane:15% French imercn rlc : I0%Yourexpecloiion olrhc spor hre 90 days hence 0.2400.i) whar is nle premn'n or discount on thc lotuard lrnch Frmc?i, whar n lhe inGEsl difcrcntialbelween US !0d Fmc?iii) Is there ony incenrik rorcoveEd inEE$ arbnrage?ivl lrthert is a covered inrftn dbitrage, how .e & dbirBseur lake advetasc otrhe

Assuine: (l) The arbitDseur is willinero bonow S4ooo or FF 2oooo dd(2)rhm aE m rranecrioi cons.

!) lf h2 aclion cos{s m Sso, would u opponunny stilt sxish tor .overed inleEstatilmge? p0M!rk,