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ANNAMALAI SITY
SECOND YEAR

UNIVER

DIRECTORATE OF DISTANCE EDUCATION

M.B.A. (FINANCIAL MANAGEMENT) Academic Year 2012 - 2013 ASSIGNMENT TOPICS This booklet contains assignment topics. Students are asked to write the assignments for SIX papers as per instructions.
Last date for submission: Last date for submission : with late fee ` 300/28-02-2013 15-03-2013

NOTE: 1. Assignments sent after 15-03-2013 will not be evaluated. 2. Assignments should be in the own hand writing of the student concerned and not type-written or printed or photocopied. 3. Assignments should be written on foolscap paper on one side only. 4. All assignments (with Enrolment number marked on the Top right hand corner on all pages) should be put in an envelop with superscription MBA Assignments and sent to The Director, Directorate of Distance Education, Annamalai University, Annamalainagar 608 002 by Registered post.

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P.T.O. 5. No notice will be taken on assignments which are not properly filled in with Enrolment Number and the Title of the papers. 6. Students should send full set of assignments for all papers. Partial assignments will not be considered.

ASSIGNMENT INSTRUCTIONS
Write assignments on any TWO topics in each paper out of the FOUR. For each topic the answer should not exceed 15pages. Each assignment carries 25 marks. (2 topics)

DR. S. B. NAGESWARA RAO

DIRECTOR

2.1 MANAGEMENT OF

FINANCIAL SERVICES

1. Critically evaluate the recent development in Indian financial system. 2. With the introduction of ATM (automated teller machine) of all banks in India, suggest suitable regulatory measures to improve the services rendered currently. 3. Critically evaluate the services rendered by credit rating agencies (CRISIL, CARE, ICRA) in India. 4. Discuss the role of merchant bankers extending their services to corporate sector. in

2.2 INTERNATIONAL

FINANCE

1. The purchasing power Parity Theory lays down the link between exchange rates and inflation rates - Discuss. 2. Illustrate a situation of arbitrage associated with differential interest rates in two different countries. Discuss the major determinants of exchange rate movement. 3. "The U.S. balance of payments for a given year is an accounting of all transactions between U.S. residents and residents of all other countries during that year" - Discuss. 4. a) Elaborate in detail the history of International Monetary System. b) Discuss in detail, the various documents involved in international trade.

2.3 FINANCIAL ANALYSIS 3 AND INDUSTRIAL FINANCING

1) Critically evaluate the CRISIL rating. Discuss the latest trends in the operations of CRISIL. 2) Discuss the major financial resources of UTI, LIC, ICICI & IDBI. 3) Elucidate the new dimensions in raising capital through public issues. 4) Discuss the strategic role of venture capital in the development of a country.

2.4 MANAGEMENT OF 1. 2.

FUNDS AND ASSETS

Discuss the benefits of effective allocation of funds and dangers of misallocation of funds. Outline the major reasons why a CFO should consider a lease arrangement as our alternative and attractive to other choices of financing. An equipment A has a cost of ` 75,000/- and net cost flow of ` 20,000/- per year for six years. A substitute equipment B, would cost ` 50,000/and generate net cash flow of ` 15,000/- per year for six years. The required rate of return of both equipments is 11 Percent. Calculate the IRR and NPV for each equipment. Which equipment should be accepted and state the reason for accepting it? Discuss the implications of the recommendations suggested by the Tandon Committee in regulation of bank finance.

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2.5 INVESTMENT, SECURITY 5 AND PORTFOLIO MANAGEMENT

1. It has been perceived that short selling is an uncomfortable maneuver for most investors, where as they are quite comfortable going long. Elucidate with few examples. 2. A stock split should have no effect on value but it does seem to affect a firm stock price. How would you reconcile this contradiction? Substantiate with suitable examples. 3. Suppose that the stock market has been declining. A technician is looking for signs of an upturn in the market. What sorts of reading should he be expecting from
a. breadth of the market b. Volume of trading c. Odd-lot trading d. Short - selling

4. Imagine that you are an expert in portfolio management (both analysis and selection). Examine your current portfolio holdings and identify which holdings you would eliminate from the portfolio of 10 stocks. Justify your action in each case.

2.6 STRATEGIC

MANAGEMENT

1. According to Porter's discussion of industry analysis is Pepsi-Cola a substitute for cocacola? Justify. 2. How might a firm's management decide whether it should continue to invest in current known technology or in new, but untested technology? What factors might encourage discourage such a shift? 3. Is it possible for a company (or) business unit to follow a cost leadership strategy and a differentiation strategy simultaneously? 4. a) How is corporate parenting different from portfolio analysis? How is it alike? Is it a useful concept in a global industry? b) What are some ways to implement a retrenchment strategy without creating a lot of resentment and conflict with labour unions?