Financial Management - I 203' 2023 [DODLDU MCOM 2ND SEM Question Paper]

Financial Management - I 203' 2023
DODLDU MCOM 2ND SEM Question Paper
2023(Held in 2024)(COMMERCE)
Paper: COM – 203 (Financial Management - I)

Time: Three hours

The figures in the margin indicate full marks for the questions.

Answer Q. No. 1 and any four from the rest.

1. Write short notes: (any four)                 5x4=20

(a) Profit Maximisation Objective.

(b) Functional Areas of Financial Management.

(c) Modern Approach to Finance Function.

(d) Comparative Financial Statements.

(e) Direct Finance.

(f) Assumptions underlying Financial Objectives.

2. What do you mean by business finance? What is the scope of finance function in a business enterprise? Discuss briefly the major decisions involved in financial management.                                   5+5+5=15

3. “Wealth maximisation objective not only serves shareholder’s interest but also ensures security to tenders.” Discuss and comment.                   10+5=15

4. Briefly explain the various tools and techniques that can be used by a financial manager to analyse the financial statements of an organisation.                   15

5. What is DuPont system of financial analysis? Explain the various components of this system. Mention the advantages of using DuPont analysis method.             4+6+5=15

6. Explain the significance of the following:           5x3=15

(a) Common Size Statement Analysis.

(b) Current Ratio.

(c) Financial Leverage Ratio.

7. Following informations are related to a trading organisation:

Debtors Velocity Stock Velocity Creditors Velocity Gross Profit Ratio

3 months 6 months 2 months 20%

Gross Profit for the year ended on 31^st March, 2023 was Rs. 5,00,000. Stock as on 31^st March, 2023 is Rs. 20,000 more than it was on 1^st April, 2022. Bills payable and Bills receivable were Rs. 36,667 and Rs. 60,000 respectively.

You are to ascertain the following:          15

(a) Sales.

(b) Debtors.

(c) Creditors.

(d) Stock.

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