Past Questions — 2016
Write an essay on Legalizing Gay Marriages: Pros and Cons.
Write an essay in about 1000 words on any of the given topics: – Politics without ethics is a disaster – Duties of a citizen – The Press : Its power and Responsibility
Write a precis of the following passage in about one third of its original length. Supply a suitable title: Some of the things which science has given us have certainly helped to make our lives happier. Science has helped us to get rid of many sicknesses of the body. That is a great thing. It is difficult to be happy if your body is full of pain. Scientists have made many discoveries which have helped to make pain less, and to remove the causes of pain and sickness. By making it possible to cure terrible diseases - such as malaria, smallpox, plaque, pneumonia and tuberculosis - science has made longer the life of the average man. Science is helping man to produce much more food from the earth. By this, it is helping to get rid of famine and to prevent sickness caused by not having enough food to eat. It has also made possible the sending of quick relief to places where there is shortage of food and medicines, with the help of motor-lorries, railway trains, ships and aeroplanes. That is also very good, and many lives are saved in such ways. There are also many discoveries of Science which have definitely brought unhappiness into the world. But that is not because the discoveries are bad, but because men are using them badly. For example, consider the discovery of gun-powder and of other explosives, each more powerful than the previous one discovered. In ancient times men could wound and kill each other with stones, arrows, spear or swords. Even in battles, the armies on both sides usually consisted of a few thousand men, so the number wounded and killed was not very large. In most wars, the peasants went on cultivating their fields peacefully, even when the armies were fighting a few miles away. But the invention of fire-arms and high explosives caused a great change. A modern machine-gun or quick firing gun, worked by a single man, can wound and kill hundreds of people in a few minutes. One modern bomb can kill hundreds of thousands of people immediately if it was dropped on a big city. The Scientists who invented these terrible weapons are not wicked men who enjoy killing. There are people with kind hearts, but they are more clever, and they earn their living by discovering new things.
Critically discuss the contributions of Green Revolution in the Indian Agricultural Sector.
Analyse the various steps taken by India for implementation of trade related issues in World Trade Organisation (WTO).
Discuss the role played by small scale and cottage industries during the Pre-Liberalisation period in India.
Explain how according to Kalecki’s theory of distribution the value of output is shared between labour and capital.
Explain the Hicks-Hansen reconciliation of the stock and flow theories of interest rate.
Critically discuss the Classical theory of international trade.
Examine the role of human capital in the economic growth of a country.
Briefly explain the attribution theory in perception. Describe any four shortcuts commonly used in the way we perceive others.
What do you understand by industrial dispute? State and explain the causes of industrial dispute. What methods can be adopted for prevention and setting of industrial dispute?
Describe the basic communication model and elucidate on the different barriers present in the communication process.
“The modern concept of internal audit envisages scope of internal audit much beyond financial audit”. In the light of the above statement describe the scope of reliance by the external auditor upon the work of an internal auditor.
A limited company issued a prospectus inviting applications for 2,000 shares of `10 each at a premium of `2 per share payable as follows: On application `2; on allotment `5 (including premium); on 1st call `3 and on 2nd call `2. Applications were received for 2,200 shares but allotment was made for 2,000 shares and the remaining applications were refused and money refunded. Mr. X, to whom 80 shares were alloted, failed to pay allotment money and on his subsequent failure to pay the 1st call, his shares were forfeited. Mr. Y, the holder of 40 shares failed to pay the two calls, and his shares were forfeited after the 2nd call had been made. Of the shares forfeited, 100 shares were reissued to Mr. Z at `9 per share fully paid. These 100 shares include the whole of Mr. X’s shares. Show journal entries in the books of the company.
Orient Enterprises Ltd. has under consideration two projects X and Y. At present it wants to take up only one project. The details relating to the two projects are: Project X: Investment required `95,000; Estimated net cash flow (PAT+ Depreciation) at the end of year 1 `40,000, year 2 `40,000, year 3 `45,000. Project Y: Investment required `2,00,000; Estimated net cash flow (PAT+ Depreciation) at the end of year 1 `80,000, year 2 `80,000, year 3 `1,20,000. The cost of capital of the company is 12%. Using net present value method, which project would you recommend?
Trace the growth of non-banking finance companies in India. Highlight their contribution in industrial growth.
What is capital market? Explain the features of capital markets and highlight the role of SEBI in regulating capital market.
The management of ABC Ltd. has two alternative projects under consideration. Project M requires a capital outlay of `3,60,000 but project N requires `5,40,000. Both the projects are estimated to provide a cash flow for 5 years: M - `1,20,000 per year and N - `1,74,000 per year. The cost of capital is 10%. Which project is preferable from the viewpoint of Internal Rate of Return (IRR)?
Mr. R.Gomes furnishes the following details of his salary income for the financial year 2015-16: 1 Salary 10,000 p.m.; 2 Dearness Allowance 1,000 p.m.; 3 Entertainment Allowance 1,000 p.m.; 4 Employer's and his own contribution to the recognised provided fund is 10% of basic salary; 5 Interest on the accumulated balance of recognised provident fund @ 13% p.a.; 6 City Compensatory Allowances @ `800 p.m.; 7 Medical Allowances @ `100 p.m. (the entire amount was spent on his medical treatment); 8 Children Education allowance for 3 children @ `90 per child; 9 Mr. Gomes is provided a Hyundai i20 (1200 c.c.). Its expenses excluding drivers salary are met by him. The car is used for both official and private purpose; 10 He is provided a furnished accommodation in Delhi, for which the employer charges him `500 p.m. The fair rental value of the house is `6,500 p.m. The house is owned by the employer. The cost of furniture provided was `15,000; 11 He has also taken loan of `1,00,000 from his employer @ 7% p.a. on 01-05-2015 for construction of his house. The SBI rate for such loan as on 01-04-2015 is 12% p.a. Compute his taxable income from salary for assessment year 2016-17.
Companies A and B are identical in all respects including risk factor except in the way they are financed. A have issued 10% debentures of `18 lakh, while B has issued only equity. Both the companies earn 20% before interest and taxes on their total assets of `30 lakhs. Assuming a tax rate of 50% and capitalisation rate of 15% for an all-equity company, compute the value of companies A and B using (i) Net Income Approach and (ii) Net-Operating Income Approach.
What is internal audit? Distinguish between external audit and internal audit.
State the principal propositions of Modigliani and Miller (MM) Approach with regard to irrelevance of leverage on the value of the firm.
United Industries Ltd. has an investment budget of `100 lakh for 2016-17. It has shortlisted two projects A and B after completing the market and technical appraisals. The management wants to complete the financial appraisal before making the investment. Further particulars regarding the two projects are given below: Project A: Investment required `100 lakh, Average annual cash inflow before depreciation and tax (estimated) `28 lakh. Project B: Investment required `90 lakh, Average annual cash inflow before depreciation and tax (estimated) `24 lakh. Salvage value - Nil for both projects. Estimated life - 10 years for both projects. The company follows straight line method of charging depreciation. Its tax rate is 50%. Calculate Pay-back period for each project.
A factory produces a standard product. The following information is given to you from which you are required to prepare a Cost Sheet for the period ended 30th June, 2016. Materials: Opening stock `10,000; Purchases `85,000; Closing stock `4,000. Direct wages `20,000; Other direct expenses `10,000. Factory overheads 100% of direct labour; Office overheads 10% of works cost; Selling and distribution expenses `2 per unit sold. Units of finished product: In hand at the beginning of the period 1,000 units (value `16,000); Produced during the period 10,000 units; In hand at the end of the period 2,000 units. There was no work-in-progress either at the beginning or at the end of the period. Profit is 20% on the selling price.