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Self - Declaration: Anjali Tiwari Mba, I Year ID: (MBMBA19270)

This document contains a self-declaration by Anjali Tiwari, an MBA student, that the assignment submitted is her original work except where explicitly acknowledged, and that she is aware of the university's policies on academic honesty. It also contains sample questions and answers related to investment decisions, factors affecting capital requirements, and trend and common size analysis of financial data for a bank from 1999-2004.

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Anjali Tiwari
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390 views6 pages

Self - Declaration: Anjali Tiwari Mba, I Year ID: (MBMBA19270)

This document contains a self-declaration by Anjali Tiwari, an MBA student, that the assignment submitted is her original work except where explicitly acknowledged, and that she is aware of the university's policies on academic honesty. It also contains sample questions and answers related to investment decisions, factors affecting capital requirements, and trend and common size analysis of financial data for a bank from 1999-2004.

Uploaded by

Anjali Tiwari
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
Download as docx, pdf, or txt
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SELF – DECLARATION

I declare that the assignment here


submitted is original except for source
material explicitly acknowledged. I also
acknowledge that I am aware of the
University’s policy and regulations on
honesty in academic work and disciplinary
guidelines.
ANJALI TIWARI
MBA, I ST year
ID: (MBMBA19270)
CASE -1

Ques-1 : Identify of the above case with


regard of investment decision.
Ans : Investment decision has been taken
by Arun. Investment decision seeks to
determine as to how the firm’s funds are
invested in different assets. It helps to
evaluate new investment proposals and
select the best option on the basis of
associated risk and return. Investment
decision can be long-term or short-term. A
long-term investment decision is also
called a Capital Budgeting decision.
Ques-2 : Identify the three factors
mentioned in the paragraph which are
likely to affect the capital requirements of
his business.
Ans : The three factors mentioned in the
paragraph which are likely to reduce the
working.
Capital requirement of his business are as
follows:

 Availability of raw materials : As there


is easy availability of Sandalwood
which is used as the base material for
production, the working capital
requirements of his business will be
less as there is no need to stock the raw
materials.
 Production Cycle : The Production Cycle
is shorter and less time is required to
manufacture incense sticks. Thus, the
working capital requirements of his
business will be low.
 Credit availed : Due to the fact that the
suppliers of other types of raw material
needed for production follow a liberal
credit policy, the business can be
operated on minimum working capital.
Ques-3: Calculate the Trend Analysis from
the following information of Tamil Nadu
Mercantile Bank Ltd.,taking 1999 as a base
year and interpret them(in thous).
YEAR DEPOSITS ADVANCES PROFIT
1999 2,05,59,498 97,14,728 3,50,311
2000 2,66,45,251 1,25,50,440 4,06,287
2001 3,19,80,696 1,58,83,495 5,04,020
2002 3,72,99,877 1,77,26,607 5,53,525
2003 4,08,45,783 1,95,99,764 6,37,634
2004 4,40,42,730 2,11,39,869 8,06,755

Ans : Trend Analysis(Base year 1999 = 100)


(Rs. In thousands)
YEAR DEPOSITS ADVANCE PROFITS
AMOUNT S AMOUNT
TREND AMOUNT TREND
(IN PER) TREND (IN (IN PER)
PER)
1999 100.0 100.0 100.0
2000 129.6 129.2 115.9
2001 155.5 163.5 143.9
2002 181.4 182.5 150.0
2003 198.7 201.8 182.0
2004 214.2 217.6 230.3
Common Size Analysis : Another important
financial statement analysis techniques are
common size analysis in which figures
reported are converted into percentage to
some common base. In the balance sheet ,
the total assets figures is assumed to be 100
and all figures are expressed as a
percentage of this total. It is one of the
simplest methods of financial statement
analysis , which reflects the relationship of
each and every item with the base value of
100%.

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