Bachelor of Management Studies (B.M.S.) SEM VI ATKT Oct 2017 FINANCIAL INNOVATIVE FINANCIAL SERVICE Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q1 Answer any two of the following 15 marks
   • a) Explain the characteristics of financial services
   • b) Anuja Ltd. has total sales of Rs.16 crores and its average collection period is 90 days The past experience indicates that bad debt losses are 1.5% of sales. The expenditure incurred by the firm in administering its receivable collection efforts are Rs.25,00,000. A factor is prepared to buy the firm’s receivables by charging 2% commission. The factor will pay advance on receivables to the firm at an interest rate of 18% p.a. after withholding 10% as reserve. Calculate the Net cost of factoring to the firm
   • c) Describe the important provisions of Bill Market Scheme, 1970
2. Q2 Answer any two of the following 15 marks
   • a) What is the role of Underwriters in issue of securities?
   • b) What is the role of Trading and Clearing members? Describe the types of Trading and
   • c) Explain the benefits of securitization
3. Q3 Answer any two of the following 15 marks
   • a) On 1st April 2013, Elite Ltd. buys on hire-purchase system from Utility Pvt. Ltd. a machinery for Rs.3,00,000 payable Rs.50,000 cash downpayment. The balance payment shall be made in five equal annual instalments plus interest at 10% per annum The instalments are payable on March each year, the first instalment being payable on 31st March 2014 Prepare loan amortization schedule and Utility Pvt. Ltd. A/c in the books of Elite Ltd. for 5 years assuming that the accounts are closed on March each year
   • b) Describe any 7 important points of the Fair Trade Practice Code for Housing Finance as given by National Housing Bank
   • c) What are the disinvestment mechanisms for venture capital firms?
4. Q4 Answer any two of the following 15 marks
   • a) What are the Terms and Conditions of Consumer Finance?
   • b) Explain the 4 major types of Plastic cards
   • c) What are the limitations of Credit Rating?
5. Q5 Case Study Prosper Co. Ltd. with a tangible net worth of Rs.400 crore wants to issue non convertible debentures (NCDs) of Rs.100 crores. As per SEBI requirements, the company needs to get its NCDs rated by a credit rating agency 15 marks
   • a) What are the advantages to Prosper Co. Ltd. by getting its NCDs credit rated?
   • b) Explain briefly the process of credit rating
   • c) Write a note on the credit rating agencies of India which Prosper Co. Ltd. can approach for getting its NCDs rated

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