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DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

MBA-II / SEM-III / FINANCE SPECIALISATION (2019-20)

Subject: Direct Taxation Code: 305/335 Fin

Faculty: Pappu Gaikwad

Note: Last date of Submission of assignment is 16-11-2019.

Important Instructions

1. The subject is evaluated on the basis of three components

Sr No Components Marks Convert Final

Marks

A Class-Test 70 10 B Scrap Book 30 10

C Written Home Assignment 100 10

Total 200 30

2. The submission has to be in the format prescribed for each component.

3. Marks will be scaled down to 10 marks for each component

4. Answers should be in own words, copied answers will be not be marked.

5. Student Name, Contact number & Specialization must be clearly mentioned on the

submission sheets.

A Class Test Questions

1) Mr.Vikas Owns a house property whose municipal value, fair rent and standard

rent are Rs 96,000, Rs 1,26,000, Rs 1,08,000 P.A. Respectively. During the

financial year 2018-19 one-third of the portion of the house was let out for

residential purpose at a monthly rent of ̀ 5,000. The remaining two-third portion

was self- occupied by him. Municipal tax @ 11 % of municipal value was paid

during the year.

The construction of the house began in June, 2007 and was completed on 31-5-2018. Vikas

took a loan of ` 1, 00,000 on 1-7-2018 for the construction of building. He paid interest on

loan @ 12% per annum and every month such interest was paid.

Compute income from house property of Mr. Vikas for the Assessment Year 2018-19.

2) What are the different categories into which the assesse are divided regarding

residence and how is the residence of assesses determined for income-tax purpose?

Explain

3) Mr. X retired from the services of M/s Y Ltd. on 31.01.2018, after completing

service of 30 years and one month. He had joined the company on 1.1.1990 at

the age of 30 years and received the following on his retirement:

(i) Gratuity 6, 00,000. He was covered under the Payment of Gratuity Act, 1972.

(ii) Leave encashment of 3, 30,000 for 330 days leave balance in his account. He

was credited 30 days leave for each completed year of service.

(iii) As per the scheme of the company, he was offered a car which was purchased

on 01.02.2017 by the company for 5, 00,000. Company has recovered 2, 00,000

from him for the car. Company depreciates the vehicles at the rate of 15% on

Straight Line Method

(iv) An amount of 3, 00,000 as commutation of pension for 2/3 of his pension

commutation.

(v) Company presented him a gift voucher worth 6,000 on his retirement.

His colleagues also gifted him a Television (LCD) worth 50,000 from their own

contribution. Following are the other particulars:

(i) He has drawn a basic salary of 20,000 and 50% dearness allowance per month for the period from 01.04.2018 to 31.01.2019.

(ii) Received pension of 5,000 per month for the period 01.02.2018 to 31.03.2018 after commutation of pension.

Compute his gross total income from the above for Assessment Year 2018-19.

4) Mr. Narendra, who retired from the services of Hotel Samode Ltd., on 31.1.2015

after putting on service for 5 years, received the following amounts from the

employer for the year ending on 31.3.2015: Salary @ 16,000 p.m. comprising of

basic salary of 10,000, Dearness allowance of 3,000, City compensatory allowance

of 2,000 and Night duty allowance of 1,000. Pension @ 30% of basic salary from

1.2.2015. Leave salary of 75,000 for 225 days of leave accumulated during 5 years

@ 45 days leave in each year. He has not availed any earned leave during his tenure

of 5 years and utilized only his casual leave. Gratuity of 50,000.

Compute the total income of Mr. Narendra for the assessment year 2015-16.

5) Mr. Sivam, a retail trader of Cochin gives the following Trading and Profit

and Loss Account for the year ended 31st March, 2015:

Particulars ` Particulars `

To Opening stock 90,000 By Sales 12,11,500

To Purchases 10,04,000 By Income from UTI 2,400

To Gross Profit 3,06,000 By Closing stock 1,86,100

14,00,000 14,00,000

To Salary 60,000 By Gross profit b/d 3,06,000

To Rent and rates 36,000

To Interest on loan 15,000

To Depreciation 1,05,000

To Printing & stationery 23,200

To Postage & telegram 1,640

To Loss on sale of shares 8,100

(Short term)

To Other general expenses 7,060

To Net Profit 50,000 3,06,000 3,06,000

Additional Information:

i) It was found that some stocks were omitted to be included in both the Opening

and Closing Stock, the values of which were:

Opening stock 9,000

Closing stock 18,000

ii) Salary includes 10,000 paid to his brother, which is unreasonable to the extent of

2000

ii) The whole amount of printing and stationery was paid in cash by way of onetime

payment.

iii) The depreciation provided in the Profit and Loss Account 1, 05,000 was based

on the following information:

iv) The written down value of plant and machinery is 4, 20,000 as on 01.04.2014. A new plant falling under the same block of depreciation was bought on 1.7.2014 for ` 70,000. Two old plants were sold on 1.10.2014 for 50,000.

v) Rent and rates includes sales tax liability of 3,400 paid on 7.4.2015.

vi) Other general expenses include 2,000 paid as donation to a Public Charitable

Trust.

You are required to advise Mr. Sivam whether he can offer his business income

under section 44AD i.e. presumptive taxation.

6) Ramesh is employed by a bank from 01-04-2012 onwards in the Salary grade of

Rs. 15000 – 1000 – 25000 – 5000 – 50000. In Addition bank gives DA currently

at 50% of the salary His pay Package includes.

I) Tiffin allowance Rs 500 p.m., (actual expenses Rs 7000 p.a.)

2) Leave Travel Concession Rs. 4000, (Actual exp. Rs. 5000)

3) Reimbursement of medical expenses for treatment of

4) Ramesh and his family in private clinic - Rs. 50,000

5) Ramesh was given rent free unfurnished flat at Mumbai (rent paid by the Bank: Rs.80,

000). Perquisite value of the Flat was Rs. 30000.

6) The employer provided 2 watchmen (salary Rs.2000 p.m.)

7) Free use of car for official use and for journey between office and residence.

B Scrap Book

1) Rent to father makes HRA tax-free.

Bank executive Arjun Sirohi pays a low of tax but there is scope to bring it down

even further. Taxpanner estimates that Sirohi can reduce his tax by over Rs

80,000 by paying rent to his father & claiming HRA Exemption.

2) Impact grant helps growing family secure quality housing

3) 10 dos and don'ts to ensure your claim of HRA tax exemption against rent paid is

not rejected

4) Rent as Public Revenue issues & Methods.

5) You may need to pay more or less taxes, read why?

6) “Redevelopment” plan is Displacing Low-Income Residents.

C Written Home Assignment

1) Mr Balasaheb of Pune (Population below 10 lakh) received the followings

remuneration during the year 2017-18

Particular Amount

Basic Salary 48,000

Bonus 12,000

Commission on sales at 5% 30,000

Contribution to recognized provident fund by the employer 11,700

Interest on P.F @ 15% 11,000

Vehicle allowances (All Exp is incurred for office purpose) 4,800

Medical allowance (400 P.M) 4,800

Rent free furnished accommodation provided by employer

The employer pays the rent of Rs 1800 P.M.

Cost of furnisher in the accommodation

21,600

Watchman salary (Rs 300 P.M) 3,600

Gardner salary (Rs 200 P.M) 2,400

Gas, electricity, water bill paid by employer

(for office as well as private use)

3000

https://www.akroncf.org/ContactUs/NewsEvents/ViewArticle/tabid/96/ArticleID/1548/Default.aspx

Hospital bill paid by the employer 8,500

Compute the taxable income of Mr Balasaheb for the A.Y 2018-19 assuming that

he has paid Rs 600 as Professional Tax.

2) R submits the following information regarding his salary income for the year 2014-

15: Basic salary `15,000 p.m.; D.A (forming part of salary) 40% of basic salary;

City Compensatory Allowance ̀ 300 p.m.; Children Education Allowance ̀ 400 p.m.

per child for 3 children; Transport Allowance ` 2,000 p.m. He is provided with a

rent free unfurnished accommodation which is owned by the employer. The fair

rental value of the house is ` 24,000 p.a. Compute the gross salary assuming

accommodation is provided in a city where population is (a) exceeding 25 lakhs (b)

exceeding 10 lakhs but not exceeding 25 lakhs (c) less than 10 lakhs

Compute of Income from Salary for the year 2018-19

3) Mr. Kushal submits the following information regarding his salary income which

he gets from ABC Ltd. Basic salary 15,000 p.m.; D.A. 40% of Basic Salary

(forming part of retirement benefits); City Compensatory Allowance 300 p.m.;

Children Education Allowance 400 p.m. (for 3 children); Transport allowance

1,800 p.m.; Reimbursement of Medical Expenses 25,000. He is also entitled to

HRA of 6,000 p.m. from 1.4.2015 to 31.8.2015. He was paying a rent of 7,000.

P.m. for a house in Delhi. From 1.9.2014 he was provided with an accommodation

by the company for which the company was paying the rent of 5,000 p.m. The

company charged him 1,000 pm as rent for the accommodation

Compute Gross Salary for the Assessment Year 2018-19

4) Mr B is working in XYZ Ltd. And has given the details of his income for the P.Y

2018-19 you are required to compute his gross salary from the details given below.

Particular Amount

Basic Pay 10000 PM

D.A (50% is for retirement benefits) 8000 PM

Commission as a percentage of

turnover

1%

Turnover during the year 5,00,000

Bonus 40000

Gratuity 25000

His own contribution in the RPF 20000

Employer contribution to RPF 20% his basic salary

Interest accrued in the RPF @13%PA 13000

5) X is the owner of two houses. House no 1 is occupied by himself and his family

and house no 2 is let out by him for residential purpose. Followings particular

relating to the house for the previous year 2017-18 are available.

Particular House 1 House 2

Municipal value 6000 5000

Rent received @ 600 PM - 7200

Municipal tax 500 400

Interest on loan taken for construction of the house in

June 2014

400 200

Land revenue 100 80

Fire insurance premium 200 120

Repairs 1000 1200

Rent collectors salary - 300

Compute his income from House Property for the relevant year.

6) Mr. Vaibhav own five houses at Cochin, all of which are let out. Compute the gross

annual value of each house from the information given below: House-I House-II House-III House-IV House-V

Municipal value 1,20,000 2,40,000 1,10,000 90,000 75,000

Fair rent 1,50,000 2,40,000 1,14,000 84,000 80,000

Standard rent 1,08,000 N.A. 1,44,000 N.A. 78,000

Actual rent received

/ receivable

1,80,000 2,10,000 1,20,000 1,08,000 72,000

Computation of GAV of each house owned

7) Mr. Krishna owns a residential house in Delhi. The house is having two identical

units. First unit of the house is self-occupied by Mr. Krishna and another unit is

rented for 12,000 p.m. The rented unit was vacant for three months during the

year. The particulars of the house for the previous year 2018-19 are as under:

Standard Rent 2, 20,000 p.a.

Municipal Valuation 2, 44,000 p.a.

Fair Rent 2, 35,000 p.a.

Municipal tax paid by Mr. Krishna 12% of the Municipal Valuation

Light and water charges 800 p.m.

Interest on borrowed capital 2,000 p.m.

Insurance charges 3,500 p.a.

Painting expenses 16,000 p.a.

Compute income from house property of Mr. Krishna for the A.Y.2018-19.

8) Following is the Receipts & Payment accounts of a medical practitioner for the

year ending 31st March 2019

Receipts Amount Payment Amount

To Bal B/D 1,10,000 By Clinic Rent 2,20,000

To Visiting Fees 2,55,000 By Staff Salaries 1,80,000

To Consultation Fees 2,75,000 By Electricity & Water 9,000

To Sales of Medicines 1,25,000 By Medical Book 4,000

To Sale of old Equipment

at book value

8,000 By Purchase of Medicines 80,000

To Operations theatre rent 1,15,000 By Motor cars Exp 60,000

To Interest & Dividend 20,000 By Audit Fees 20,000

By, Staff Welfare Exp 8,000

By Entertainment Exp 6,000

By Surgical Equipment 1,30,000

By Bal C/d 1,91,000

Total 9,08,000 Total 9,08,000

Additional Information:

1) Depreciations as per income tax rules on motor car professional use rs 6,000

2) One third of motor car expenses relate to his personal use.

3) The rate of Depreciations on surgical equipment is 15%. The written down

value (W.D.V) of equipment brought forward from earlier year was Rs.

23,000.

Compute the taxable income from profession for the Assessment Year 2018-

19

9) Mr. Gupta is having a trading business and his Trading and Profit & Loss

Account for the financial year 2014-15 is as under:

Particulars Amount Particulars Amount

To Opening stock 1,00,000 By Sales 70,00,000

To Purchase 49,00,000 By Closing stock 50,000

To Gross profit 20,50,000

Total 70,50,000 Total 70,50,000

Salary to employees (Including 5,00,000 By Gross Profit b/d 20,50,000 Contribution to PF)

Donation to Prime Minister Relief

Fund 1,00,000

Provision for bad debts 50,000

Bonus to employees 50,000

Interest on bank loan 50,000

Family planning expenditure 20,000

incurred on employees

Depreciation 30,000

Income-tax 1,00,000

To Net profit 11,50,000

Total 20,50,000 Total 20,50,000

Other information: 1) Depreciation allowable 40,000 as per Income-tax Rules, 1962. 2) No deduction of tax at source on payment of interest on bank loan has been made. 3) Payment of bonus to workers made in the month of October, 2014 on the occasion of

Diwali festival. 4) Out of salary, 25,000 pertains to his contributions to recognized provident fund

which was deposited after the due date of filing return of income. Further, employees’ contribution of ` 25,000 was also deposited after the due date of filing return of income.

Calculate gross total income of Mr. Gupta for the Assessment Year 2018-19.

10) Following is the profit and loss account of Mr. Q for the year ended 31-03-2018:

Particulars ` Particulars `

To Repairs on Building

To Amount paid to IIT, Mumbai

for an approved scientific

research program

To Interest

To Travelling

To Net Profit

1,81,000

1,00,000

1,10,000

1,30,550

93,950

By Gross Profit

By I.T. Refund

By Interest on Company

Deposits

6,01,000

8,100

6,400

6,15,500 6,15,500

Following additional information is furnished:

1) Repairs on building includes 1, 00,000 being cost of building a new toilet.

2) Interest payments include 50,000 on which tax has not been deducted and penalty

for contravention of Central Sales Tax Act of 24,000.

Compute the income chargeable under the head "Profits and gains of Business

or Profession" of Mr. Q for the year ended 31-03-2019 ignoring depreciation.

11) Mr. Dinesh received a vacant site as gift from his friend in November 2002. The site was acquired by his friend for 3, 00,000 in April 1990. Dinesh constructed a residential building during the year 2004-05 in the said site for 15, 00,000. He carried out some further extension of the construction in the year 2007-08 for ` 5, 00,000. Dinesh sold the residential building for 55, 00,000 in January 2019 but the State stamp valuation authority adopted 65, 00,000 as value for the purpose of stamp duty.

Compute his long term capital gain, for the assessment year 2018-19 based on

the above information. The cost inflation indices are as follows:

Financial

Year

Cost inflation index

2014-15

2015-16

2016-17

2017-18

2018-19

220

254

264

272

280

12) Mr. Rakesh purchased a house property on 14th April, 2018 for 1, 05,000. Bobby

for the sale of house on 15th September, 2018 and received an advance of 25,000.

However, since Mr. Bobby did not remit the balance amount, Mr. Rakesh forfeited

the advance. He entered into an agreement with Mr. Later on, he gifted the house

property to his friend Mr. Aakash on 15th June, 2018. Following renovations were

carried out by Mr. Rakesh and Mr. Aakash to the house property.

13) Ms. Paulomi has transferred 1,000 shares of Hetal Ltd., (which she acquired at

a cost of 10,000 in the financial year 2002-03) to Dhaval, her brother, at a

consideration of 3, 12,934 on 15.5.2014 privately. During the financial year

2014-15, she has paid through e-banking 15,000 towards medical premium, `

50,000 towards life insurance premium and ` 25,000 towards PPF. Assuming

she has no other source of income, compute her total income and tax payable

for the Assessment Year 2015-16. Computation of total income and tax liability

of Ms. Paulomi

Cost Inflation Index: for F.Y.2002- 03: 447; F.Y.2014-15: 1024

Subject: Financial System of India, Markets and Services Code: 306

Faculty Name: Nilambari Moholkar

Note: Last date of Submission 16-11-2019

Concurrent Evaluation Components

Sr.

no Components

Marks Converted Final

Marks

A Written Home Assignments 50 10

B Thematic Presentation 30 10

C Quiz 20 10

Total Marks 100 30

Instructions





submission sheets.

A Written Home Assignment

1. Elaborate the structure and components of financial system in India?

2. Explain objective, function and powers of SEBI?

3. “Invest in a share what you can afford to lose.” Explain the statement.

4. Discuss the Features and functions of LIC and GIC

5. Explain in detail about PFRDA

B Thematic Presentation

Instruction for Thematic Presentation

1. Make minimum 15 slides

2. Points mentioned below must be covered

Prepare a Presentation on green crest financial Company , Joindre Capital , industrial

prudential , goenka business finance limited

1. following point to be consider while making PPT About the company

financial Products

Financial services

Details of Directors seeking

Latest news related to the company(mention

latest Share holding patterns

Minimum 4 name of Equity shareholders of the company mentioned in

report

Latest Share price in NSE

C Quiz

It will be conduct at the time of Assignment Submission in form of MCQ on Entire syllabus

Student has to prepare thoroughly & appear for it on or before 16th Nov 2019

________________________________________________________________________

Course Title: Strategic Cost Management Course Code: 307

Faculty Name: Dr. Padmaja Ganpatye

Note: Last date of Submission is 16/11/2019

------------------------------------------------------------------------------------------------------------

Important Instructions:

1. Concurrent Evaluation Components

Sr. No. Components Marks Converted Final

Marks

A. Case Study 30 10

B. Thematic presentation 60 10

C. Scrap Book 30 10

D. Written Home Assignment 100 10

E. In-Depth viva 80 10

Total 300 50

2. Submission has to be in the format prescribed by each component.

3. Marks will be scaled down to 10 marks for each component.

4. Answers should be your own words; copied answers will not be marked.

5. Student Name, Roll No., Specialization must be clearly mentioned on the

submission sheets

A. Case Study:

Explain Concept of Life Cycle Costing, its Process, Benefits and Purpose and

Application in the Industry. Also calculate the life cycle cost for the following:

Let’s say you want to buy a new Photocopy machine for your business. Purchase Price of

the machine is $2,500. You spend an additional $75 for setup and delivery (cost of

Installation), you need to buy ink cartridges and paper for it, so you estimate you will spend

$1,000 on these supplies over the course of its useful life. (Cost of operating) And, you

expect the total electricity the photocopy machine will use to be $300. If the copier breaks,

you estimate repairs will total $450. (Cost of Maintenance). You purchase the copier with

your credit card, which has an interest rate of 3.5% per month. You pay off the printer the

next month. (cost of Financing) You predict the copier will lose value by $150 each

year.(Depreciation). You estimate it will cost $100 to hire an independent contractor to

remove the copier from your business.(cost of disposal). Calculate the life cycle cost of the

photocopier.

B. Thematic Presentation

“Kaizen Costing-A continuous improvement in costing” Explain. You need to consider

the following pointers while preparing the presentation

Introduce the concept of Kaizen Costing

Its Process, Benefits and Application in the Industry, explain with minimum two

industry examples

Conclusion

Suggestions

C. Scrap Book

Prepare Scrap Bookon “Various techniques of strategic management” Make use of

research article, books, business magazine, cuttings of newspaper article, pictures,

images etc

D. Written Home Assignment

Answer the following questions:

1. Explain the meaning and importance of Strategic Cost Management

2. Explain the utility of “Activity Based Costing”

Write a Short note on the following:

1. Cost Leadership

2. Cost Reduction v/s Cost Control

3. Strategic Positioning in Strategic Cost Management

4. Stages of Strategic Cost Management

E. In-Depth Viva

Dates for In-Depth Viva will be on the Date of submission. Students are expected to

prepare on all units. Individual viva will be conducted.


Subject: Corporate Finance Code: 309/339


Note: Last date of Submission is 16-11-2019



Sr

No

Components Marks Convert Final Marks

A Thematic Presentation 50 10

B Written Home Assignment 100 10

C Case Study 30 10

D Corporate Activities 20 10

E In-depth Viva 50 10

Total 250 50





submission sheets.

A Thematic Presentation

1) Corporate Value Based Management System

2) Strategies for restructuring

3) The goal of the firm’s financial managers should be the maximizations of the total

value of the firm stock.

4) Do You Accept Fiduciary Responsibility?

5) How will we manage the everyday Financial Activities of the firm?

B Written Home Assignment

1) The important aspects to be considered during corporate Restricting process are

Financial, Valuation, stamp duty, taxation and Accounting Aspects.

2) Where will we get the Long-term Financing to pay for the investment?

3) What do you understand by Valuation and why there is a need for valuation?

4) A company has learned that due to a new accounting rule, it can start capitalizing

R&D costs instead of expensing them.

5) How can you make sure your numbers in a financial model are right? What tools

in Excel would you use to audit your model?

6) Equity shares of ABC Ltd. Are currently selling at INR 100. The company is

expected to pay a dividend of INR 5 per share with a growth rate of 10%

Compute the cost of equity.

7) Why Do Capital Expenditures Increase An Organization's Assets (pp&e), While

Other Expenditures, Like Paying Taxes, Employee Salaries, Utility Bills, Etc. Do

Not Increase An Organization's Asset Base, But Instead Show Up As Expenses On

The Income Statement That Reduce Equity Via Retained Earnings?

8) What Allocation Guidelines Do You Use? For A Person Of My Age And What

You Observe About The Things I Have Told You, What Rough Percent Of Equities

(stocks And Real Estate) Would You Allocate In A Portfolio?

9) On A Scale Of one To 10 Where One Represents a Pure Buy-and-hold Investor and

10 represents A Market-timer, Where Do You Put Your Clients?

10) It is important to evaluate a corporate managers financial decision by measuring

the effect the decision should have on the corporation’s stock price if every thinks

else were held constant.

C Case Study

Investment Fraud: The Case of Sahara India Pariwar

In 2008, Mr. Subrata Roy, the Chairman of Sahara India who once believed to be one of

the most influential business magnates in India1 was accused of duping investors, non-

compliance of regulatory provisions and contentious financial practices. Being a high

profile case and given its complexities, Sahara India investor fraud case is one of the

biggest investment fraud cases of the decade. Is it mostly the CEO and the top management

who are involved in such fraudulent activities? What made the Sahara Chief resort to such

fraudulent behavior? Does effective monitoring help in detecting and curbing investment

fraud? What are the end results or consequences of such fraud?

Sahara India Investment Fraud – A Brief Outline

After the RBI barred Sahara India Financial Corporation from raising funds from the public

in 2008, to keep its operations going, the group floated two companies, Sahara India Real

Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation

Limited (SHIC). The two companies raised funds from more than 3 crores investors by

issuing Optionally Fully Convertible Debentures (OFCDs) of over INR 24000 crores. The

illegal money raising issue came to light when Sahara group filed a red herring prospectus

with Securities and Exchange Board of India (SEBI) to raise money from the public in the

secondary capital market. Also, several investors’ complaints prompted SEBI to

investigate into the financial matters of Sahara India leading to the unfolding of the facts

that the organization has been flouting several compliance norms for years...................

The CRIME Model

The CRIME model suggests the five interactive factors which determine the causes and

consequences of investment fraud in the corporate world. The model states that the

interactive forces of cooks, recipes, incentives, monitoring/lack of it can help in increasing

the occurrence of investment fraud. It also highlights the consequences associated with

investment fraud on the organization and the economy..............

Analyzing the Sahara India Investor Fraud Case

In this section, the Sahara India case is analyzed through the CRIME model. The causes

and consequences of the investment fraud case are determined with the help of the five

factors of the model........

i) The Cooks

The main accused in the fraud case is the Chairman and founder of the company, Mr.

Subrata Roy and the directors of the company...............

ii) The Recipes

The recipes here include raising deposits from the investors by duping them and promising

high returns, manipulation of the assets of the company and diversion of funds.............

iii) The Incentives

Financial and economic pressures were the two main incentives for Sahara India to engage

in fraudulent activities.........

iv) Monitoring

This case throws a light on both the effectiveness of efficient monitoring and the lack of it.

On one hand, it shows the efforts of SEBI to detect and book fraudulent activities in the

market..........

v) End Results or Consequences

The end results of the investors’ fraud carried out by Sahara India over years is massive.

The investors were duped of INR24000 crore. The positive consequences with the Sahara

fraud case coming to light and the role of the regulatory authority..................

Potential Measures of Curbing Investment Fraud

The study provides a useful insight into the causes and consequences of investment fraud

through the case of Sahara India. The data collected from secondary sources is analyzed

by using the CRIME model which states the interactive forces which induces investment

fraud and the consequences thereof. The case study further confirms that it is mostly the

senior management of the organization involved in the fraudulent behavior...........

Questions

I. What are the factors inducing fraud and what are the consequences thereof?

What encourages the senior management to engage in such activities?

Case Study-II

Searching for a Search Fund Structure: A Student Takes a Tour of Various Options

Before entering the Yale SOM (School of Management), James Guba

(SOM’18) had thought about becoming an entrepreneur. He did not have a

specific idea to build a business around, but he did aspire to take charge of an

organization and grow it. At Yale, Guba discovered an entrepreneurial niche

called “search funds” that would allow him to acquire and lead a company that

he had not built from scratch. But as Guba discovered while taking

Entrepreneurship through Acquisition, not all search funds are structured in the

same way. His instructor encouraged Guba to meet with search fund

entrepreneurs who had taken different paths to building their funds.

1) What is the Structure Fund.

D Corporate Activities

1) Maintain a Stock Market Investing Portfolio and Showcase Investment Decision

Making - it’ll be nice to show that you were able to beat the market Indices or at

least explain the lessons learned!

2) Educate members on the investment banking and corporate finance recruiting

processes

E In-depth Viva

1) All Five Units are to covered

Viva to be conducted 16-Nov-2019


Subject: Equity Research, Credit Analysis & Appraisal Code: 311


Note: Last date of Submission is 16-11-2019.



Sr

No

Components Marks Convert

Final Marks

A Thematic Presentation 50 10

B Case Study 30 10

C Written Home Assignment 100 10

D Small Project (Equity Research Report) 50 10

E Scrap Book 20 10

Total 250 50





submission sheets.

A Thematic Presentation

1) How is valuing a resource company (e.g. oil and gas) different from valuing a

standard company?

2) Principles of Lending- Evaluations of Borrower

3) Can a company have an equity value larger than its enterprise value?

4) Is there a specific debt-capital ratio that Banks Target?

5) A hypothetical or real company details are given and you are asked to do

valuation using various methods.

B Written Home Assignment

1) How would you know whether should lend to a company?

2) If you had $1 million to invest, what would you do with it? Tell me about a company

you admire and what makes it attractive. Pitch me a stock (typically will be

followed-up with a challenge – e.g., Why has the market not priced this in?)

3) Why is it more difficult to determine the value of a common stock as opposed to

finding the value of a bond? Explain the various methods of common stock

valuation.

4) What are the currently interesting research topic in the field of behavioral Finance

operating in securities markets?

5) Discuss the broad process involved in making investment decision and highlights

the factors to be considered in the decision process.

6) What drives the PB multiple? Or, why may two companies in the same industry

have very different PB multiples?

7) How do you calculate the terminal value in a DCF valuation?

8) Do you know the difference between equity value and enterprise value? How are

they different?

9) How do you do a Discounted Cash Flow analysis in Equity Research?

10) A huge set of data is given and you are asked to analyze and present the data in

charts and graphs.

11) A lot of incomplete and inaccurate financial statements are given and you are

asked to present a solution.

C Small Group Project Writing Equity Research Report (Any)

(1) Summary

(2) Introduction

(3) Objective

(4) Research Methodology

(5) Data Analysis

(6) Conclusion

https://www.wallstreetmojo.com/dcf-discounted-cash-flow/

D Case Study-I

In 2015, Ant financials MY bank (an offshoot of Jack Ma’s Alibaba company) was

looking to extend services to rural areas in China by providing small loans to

farmers. Microloans have always been costly for financial institutions to offer to

the unbanked (though important in development) but MY bank believed that fin

tech innovations such as using the internet to communicate with loan applicants

and judge their credit worthiness would make the program sustainable. Students are

asked whether MY bank could operate the program at scale. Would its big data and

technical analysis provide an accurate measure of credit risk for loans to small

customers? Could MY bank rely on its new credit-scoring system to reduce

operating costs to make the program sustainable?

Case Study-II A Regional Electricity Distribution Network

The project consists of a 3-year investment programmer (2009-2011), to reinforce

and extend the transmission and distribution electricity networks of a large regional

transmission and distribution company in a Member State in the EU. The main

purpose of the project is to cater for a projected annual load growth and to enable

the connection of about 70,000 new system users per year, including 400 MW/year

of new generation capacity from renewable resources. The project will also enable

to reduce network losses by 13% and to improve the reliability of electricity supply

by 4%. The investments are geographically dispersed throughout the Member State.

The promoter’s network infrastructure extends across several large communities,

covering a surface of 81,000 km2 and 3.5 million customers in total. The asset base

includes 220, 132, 66 and 45 kV assets (HV), 20 and 15 kV assets (MV), and <L

kv assets (LV).

Voltage Network Transformers [km] % asset base [MVA] % asset base VHV (220

kV) 229 189 % 2,210 20 % HV (132, 66, 45 kV) 622 7.7 % 1,815 14 % MV (15-

20 kV) 2,712 6.6 % 1,799 15 % LV (< 1kV) 3,804 5.1 %

The project sets out a considerable development of HV assets to fulfil new and

stricter reliability requirements for the HV grids supplying large urban areas. In

addition, the project comprises new and refurbished equipment including power

transformers, other substation equipment, overhead lines and underground cables.

The technologies applied are mature, reliable and widely used in the power sector.

Once in operation, the project components will become an integral part of the

promoter’s electricity infrastructure. The 220-132-66 kV networks are planned to

supply peak demand in compliance with the N-1 security criterion. By virtue of

this, the typical load factor of these assets falls in the range 20%-80% depending

on load conditions (peak, off-peak) and on type and location of the asset involved.

The 45-20 kV networks are operated in radial configuration to supply peak demand,

and have a typical load factor in the range of 30%-60% depending on load

conditions (peak, off-peak) and on type and location of the asset involved. The LV

distribution network has a typical load factor of 40%-90%.

1) The investments have been accepted by the regulator and will enter the

regulated asset base.

Credit Analysis Case Study-III

From times immemorial, there has been an eternal conflict between

entrepreneurs/businessmen and bankers, regarding the quantification of credit. The

resentment on the part of the business owner arises when he believes that the banker might

not be fully appreciating his business requirements/needs and might be underestimating the

real scale of opportunity that is accessible to him, provided he gets sufficient quantum of

loan. However, the credit analyst might be having his own reasons to justify the amount of

risk he is ready to bear, which may include bad experiences with that particular sector, or

his own assessment of the business requirements. Many times there are also internal norms

or regulations which force the analyst to follow a more restrictive discourse.

The most important point to realize is that banks are in the business of selling money and

therefore risk regulation and restrain are very fundamental to the whole process. Therefore,

the loan products available to prospective customers, the terms and conditions set for

availing the facility and the steps taken by the bank to protect its assets against default, all

have a direct forbearance to the proper assessment of the credit facility.

1) So, let’s have a look at what does a loan proposal looks like:

E Scrap Book

1) Introduction of financial modeling design.

2) Create a common size statement and analysis of past performance in excel.

3) Discuss and illustrate the issues involved in the assessment of environmental

feasibility of a project.

4) Credit Analysis Process.

MBA-II / SEM-III

Specialization: Banking Operations I (2019-20)

Note: Last date of Submission is 16/11/20109

-------------------------------------------------------------------------------------------------

Course Title: Banking Operations-I Course Code: 313

Faculty Name: Dr. Padmaja Ganpatye

-------------------------------------------------------------------------------------------------

Important Instructions:

6. Concurrent Evaluation Components

Sr. No. Components Marks Converted

Final Marks

A Case Study 30 10

B Thematic presentation 60 10

C Scrap Book 30 10

D Written Home Assignment 100 10

E Study Tour and Report for the same 80 10

Total 300 50

7. The Submission has to be in the format prescribed by each component.

8. Marks will be scaled down to 10 marks for each component.

9. Answers should be your own words; copied answers will not be marked.

10. Student Name, Roll No., Specialization must be clearly mentioned on the

submission sheets

A. Case Study:

Non-performing Asset is an important parameter to analyze financial performance of

banks. Following data is taken from the database of Reserve Bank ofIndia regarding Net

NPA ratios of ICICI and HDFC Bank to have a clear picture about financial performance

of both the banks. It is for the period of six consecutive years.

Study the NPA ratios of ICICI Bank and HDFC Bank and then find and analyze the

difference in NPA of ICICI Bank and HDFC Bank. Also explain how Non-Performing

Asset affects Banks Profitability.

Net NPA ratios of ICICI and HDFC Bank (In %)

Year ICICI Bank HDFC Bank

1st 2.09 0.63

2nd 2.12 0.31

3rd 1.11 0.19

4th 0.73 0.18

5th 0.77 0.20

6th 0.82 0.27

Source: Reserve Bank of India Reports

B. Thematic Presentation

“Payment banks are failing” Analyze this statement. You need to consider the following

pointers while preparing the presentation

Introduction of concept ofpayment bank

Process and Services offered

The scenario of Payment banks till date (Give secondary data and RBI reports)

Identify reasons for payment banks failure

Measures taken and recent developments

Conclusion and suggestions

C. Scrap Book

Prepare Scrap Book on “Commonly used Technologies in Banking” Make use of research

article, books, business magazine, Use Cuttings of newspaper article, pictures, images etc.

D. Written Home Assignment

Answer the following questions:

1. Examine the role of central bank in economic development.

2. What are the principles of Bank lending? Choose a Indian bank of your choice

and write down its lending principles.

Explain the following:

1. Mudra banks

2. Wholesale banking in India

3. Structure of cooperative banks in India

4. History of banking in India

5. Retail banking in India

6. MSME funding

7. RBI ACT

8. Nationalizations of banks

E. Study tour and report for the same

Loan related products constitute the largest chunk a bank’s balance sheet and off

balance sheet. These products are processed, sanctioned, disbursed, monitored

and recovered by large number of line managers. Student need to visit bank to

find out information requirement from borrower and process of loan approval for

housing and educational loan. While writing the report student needs to consider

the following points.

Information requirement from borrower

Process of loan approval

Terms and conditions for credit facilities

Challenges and risk factor

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