Financial Accounting and Analysis AND Strategic Management

Financial Accounting and Analysis

1. Wildcat Ltd, a manufacturing company sold a machinery for Rs 8 lacs at the year end. The company had purchased the machinery four years back for Rs 15 lacs and had depreciated the same using written down value method of depreciation @ 20%. As an accounts executive of Wildcat Ltd, calculate the WDV of the asset for the four years, accumulated depreciation for four years and profit/loss on sale, if any.

2. Mr. Shil Wants to record the financial transactions of his newly started business. Discuss what accounting steps/stages he need to adhere so that the transactions can be duly recorded and processed in order to prepare the financial statements.

3 a. Following information is available in respect of a company named, as Beta Ltd

Particulars

Amount

Profit before taxes

Rs 50 lakhs

Dividend d per share

Rs2

Price of the share prevalent on stock exchange

Rs 200

Applicable tax rate

35%

Share capital of company 5 lakh shares of Rs 10 each

Calculate-

Earnings per share

Dividend Pay-out Ratio

Price earnings ratio

b. Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019

Particulars

Amount

Plant acquired

Claim received for loss of plant in fire

Unsecured loans given to subsidiaries

Interest on loan received from subsidiary companies

Also give reasons for the classification of above activities as inflow /outflow

Strategic Management

1. You have been appointed as a Strategy Consultant to a Swiss shoe making brand namely &ldquoBally&rdquo wanting to enter India. Which one of Porter&rsquos Generic Strategies would you choose to be operational in India & explain the reasons in detail behind your choice of strategy Once the strategy has been chosen, explain the categories of customers you would target

2. UNIQLO is a Japanese casual wear designer, manufacturer and retailer that wishes to enter India&rsquos Retail market. Conduct a PESTLE analysis for Uniqlo in India & suggest whether Uniqlo should enter India or otherwise.

3. You are the Chairman of Isuzu Motors in Japan. Your Indian subsidiary Isuzu India has managed to gain only under 2% of the market share so far & Competitor brands such as Maruti & Hyundai account for 50% & 17% of the market shares respectively.

a. What turnaround strategies can you suggest to arrest the decline of revenues & profitability of your company

b. In your opinion, would it be considered appropriate to pursue a Combination Strategy State your response with appropriate justifications & reasons.