1.(a) what is
the significance of analysis of
financial statements in respect of
stake- holders of the company ? how does it help the potential investors in their decision—making?
Or
(b) Explain
any four of the following:
(i)window dressing
(ii) limitation of analysis of
financial statements
(iii)Nature of financial statements
(iv)Tools for analysing financial
statements
(v) Analysis and interpretation of financial statements
2.(a) M/s
Boruah and sons Ltd.presents you the following:
Balance sheet
as at 31st March,2009
Liabilities
|
Amount
|
Assets
|
Amount
|
Equity Share Capital
8% Preference Share Capital
Reserve Fund
6% Debentures
Sundry Creditors
Profit and Loss A/c:
2008 = 1000
2009 = 2000
|
50000
10000
40000
20000
30000
21000
|
Fixed Assets
Investment
Stock
Sundry Debtors
Bank Balance
Preliminary Expenses
|
87500
25000
30000
13500
7000
8000
|
171000
|
171000
|
The directors
intend to transfer a sum of RS 5,000 out
of the current year’s profits to
provision For tax. you are required
to calculate the following ratio:
(i)Return on capital employed
(ii)current ratio
(iii)Fixed assets to net worth
(iv)Debt to equity capital
(v)Return on owner’s capital
Or
(b) Explain
the purposes of calculating the following
ratio :
(i) current ratio
(ii) Acid test ratio
(iii) Return on investments ratio
(iv) Long—term
solvency ratio
3.(a) what do
you mean by the term ‘financial reporting’?
“company ‘s Annual Report containing financial statements is the most
important means of
company’s financial reporting.”
Do you agree with this statement? Give reasons.
Or
(b)
Distinguish between any two of the
follwing :
(i) Financial reporting and financial
statements
(ii)Interim financial
reporting and final reporting
(iii) segment reporting and final reporting
4.(a)what are
the objectives of corporate Governance Disclosure
Practices? Describe the
guidelines on corporate
Governance Reporting as per Clause
49 of Listing Agreement.
Or
(b) what do
you mean by ‘social benfits’ and ‘social costs’?How are
they measured in disclosure of
social accounting ?
5.(a)Accounting
standards aim to protect users of
financial reports in providing
reliable and comparable accountants and auditors?
Or
(b) Explain
the term ‘harmonisation of corporate
reporting.’ What are the
recommendations of the report of
the Advisory Group
of Accounting and Auditing set up by Reserve Bank of India?