MBA DEGREE EXAMINATION, MAY 2017
Final Year
A FINANCIAL MANAGEMENT
Project Management
Time 3 Hours Maximum Marks 75
SECTION A × 5 15)
Answer any three questions
Q1) Project finance
MIS
Time Scales
Market analysis
Project appraisal
Project Review
SECTION B × 15 45)
Answer any three questions
Q2) Describe the need for demand analysis.
Q3) Discuss about contents of project reports.
Q4) Explain about objectives of network analysis.
Q5) Write about formation of project schedule.
Q6) What are various financial aspects involved in project implementation?
Q7) Give an overview on integrated project management control system?
SECTION C
(Compulsory)
Q8) Case Study
A technocrat entrepreneur, after having served in a reputed engineering industry for over a
decade as a design engineer, started his own dream venture M/S R.K. Enterprise for the
manufacture of industrial rough castings. The project was started with the financial assistance
from a nationalized bank. The banker sanctioned financial assistance on the strength
of the promoters' technical qualification and experience. The project went on stream very
well without any time or cost overrun. The promoter took pains to see that the project was
implemented as scheduled.
During the first two years, the earning from the project was good and were in fact slightly
more than what was envisaged. Later on, the customers who were buying rough casting
started to prefer finished castings. They started insisting casting finished as per their specifications
and technical castings as per the requirements of the customers, he got the finishing
works done through other nearby engineering firms on job order basis.
Though this arrangement solved his problem temporarily, he started experiencing hurdles
at later stages. Though the quality of finishing was up to the specifications, there was delay
in getting the job works done. In spite of his best efforts, he could not get the job
works done in time due to which he was forced to default in supplying products to his customers
in time. Such continued delays in honoring the supply orders started to undermine
his reputation in the field and the customers started reducing their purchase order. The entrepreneur
could sense some of his orders drifting away to other competitors. Due to reduction
in order position, his turnover and profit margins started showing a downward
trend for about a year.
As he had taken term loan from bank for setting up his venture, he started experiencing
difficulties in repayment of the loan installments and interest dues on the loan. The manager
of the bank who has recently visited the unit was patient enough to hear the problems
that the entrepreneur has been facing and promised sanctioning of additional financial assistance
for setting up manufacturing facilities meant for carrying out the finishing work
in house. The entrepreneur, being risk averse, has postponed the idea of availing additional
loan for the creation of additional manufacturing facilities, for the time being and has
started looking for alternatives, including the alternative of entering into a contact with a
nearby engineering unit for undertaking finishing work on rough castings on a timely basis
instead of entrusting the work on ad-hoc basis to different engineering units which has
been the cause for the delay.
Discuss the case and suggest the recommended course of action that entrepreneur should
choose.