Financial Management and Strategic Management - May 2025

(a) The following information is available for S Ltd. for the year ended 31st March, 2025: Raw Material consumed Raw Material Inventory turnover ratio Finished Goods Inventory holding period 20% of COGS Gross profit (based on COGS) 4.00 0.75 month Debtor collection period (all sales are credit sales) Proprietary ratio Fixed Assets turnover ratio (based on sales) Fixed Assets to Total Assets 12.50% 3 months 0.3125 3.00 40% You are required to prepare a Balance Sheet as on 31st March…

(a) Capital structure of B Ltd. for the year ended 31st March, 2025 are as follows: Particulars Amount (`) Equity share capital @`10 each 14,00,000 10% Preference share capital @`1,000 each 10,00,000 Debenture @ `100 each 9,60,000 Bank Loan 6,40,000 Risk-free rate of return is 14%, Market rate of return is 19% and beta of company is 1.20. 10% Preference shares are redeemable at ` 1,065.40 after 3 years. Interest on bank loan is 1.30 times of interest on debentures.…

(a) Following data are given for a capital project: Annual interim cash inflows for first two years ` 1,00,000 Annual interim cash inflows for next two years ` 80,000 Useful life 4 Years Salvage value at end of the project ` 50,000 Internal rate of return 12% Cost of capital 10% You are required to calculate the following: (i) Initial investment (ii) Net present value (iii) Profitability Index (iv) Discounted payback period (v) MIRR 1 2 3 4 PVIF0.09, t…

(a) What is agency cost and what are its types? How can a company minimize agency cost and align the interest of manager and shareholder? (4 Marks) (b) What are key features of bridge financing? (4 Marks) (c) What is hierarchy of financing under 'Pecking Order' theory, and why does it exist? (2 Marks) 23 INTERMEDIATE EXAMINATION: MAY 2025 (c) "The total risk of any business is the combination of degree of operating and financial risk". In the light of…

Pvt. Ltd. (SPL) is engaged in manufacturing of semiconductors from the year 2024. Company wants to start a strategic path to be followed in future so as to build best quality semiconductor and display design with innovative ecosystem to enable India's emergence as a global hub for electronics manufacturing in a more structured manner. Placing core values as its priority, it would like to clearly articulate its aspirations to the stakeholders with a guiding beacon to keep inspiring its workforce.…

(a) Explain the importance of values, as one of the components of strategic intent for a company. What are the common examples of values? How values are different from intent? (3 + 1 + 1 = 5 Marks) (b) In order to get better performance and sustainable competitive advantages, a company has to focus on the characteristics of its resources and capabilities. In view of this, explain the major characteristics of resources and capabilities. (5 Marks) 29 INTERMEDIATE EXAMINATION: MAY…

(a) What do you mean by value chain analysis? Delineate the support activities in value chain analysis, as stated by Michael Porter. (1 + 4 = 5 Marks) (b) Explain differentiation strategy as one of the generic strategies by Michael Porter. What are the major bases of differentiation? Also outline the strategies which can help achieve the differentiation strategy. (1 + 2 + 2 = 5 Marks) (a) Value chain analysis is a strategic tool used to examine each business…

(a) What do you mean by Key Success Factors (KSF)? Structure the questions, answer to which can help identify KSFs of a company. Also state, as to how the understanding can help ascertain sustainable competitive advantages. (1 + 2 + 2 = 5 Marks) (b) Explain in brief the expansion strategy as one of the corporate strategy. Also state the characteristics of expansion strategy. (1 + 4 = 5 Marks) "A manager as a strategic leader has to play many…