SUBJECT CODE: BHM281 EXAM DATE: 13.05.2015
CODE: FM/MAY/15/NC Page 1 of 3
ROLL No…………….
NATIONAL COUNCIL FOR HOTEL MANAGEMENT
AND CATERING TECHNOLOGY, NOIDA
ACADEMIC YEAR 2014-2015
COURSE 4th Semester of 3-year B.Sc. in H&HA Specialisation
SUBJECT Financial Management
TIME ALLOWED 03 Hours MAX. MARKS: 100

(Marks allotted to each question are given in brackets)

Q.1. Prepare a Cash Flow statement from the summarized Balance Sheet given below:
1998 1999 1998 1999

Liabilities Assets
Share Capital Plant Machinery
P L Account Furniture Fixture
Creditors Stock
Debtors
Cash




Q.2. Define any five of the following terms:
Business Finance Du-Pent control chart
Fund from operation Financial Plan
Gross Working Capital Pay-back period
Rate of Return on capital employed Common size statement

Q.3. What is meant by the term Ratio Analysis in Financial Management? Classify the
different types of Ratios with examples.
OR
Distinguish between Fund Flow and Cash Flow statements.

SUBJECT CODE: BHM281 EXAM DATE: 13.05.2015
CODE: FM/MAY/15/NC Page 2 of 3
Q.4. Balance Sheet:
Liabilities Assets
Rs. Rs.
Equity shares of Rs.10/- each Fixed Assets (at cost)
Reserves Stock
Profit Loss Account Debtors
Secured loan Advances
Creditors Cash in hand
Provisions for taxation Other Asset (Goodwill)



(Note: The Sales for the year was
Calculate the following ratios:
Debt-Equity Ratio
Liquidity Ratio
Fixed Assets to current Assets Ratio
Fixed Assets Turnover

Q.5. "Financial Management is that managerial activity which is concerned with the
planning and controlling of the firm's financial resources". In the light of above
definition discuss the scope and extent of Financial Management.
OR
"Financial Management draws heavily on related disciplines and fields of study
such as economics, accounting, marketing, production and quantitative methods".
Discuss.

Q.6. Write short notes on any two of the following:
Internal Rate of Return Overtrading
Wealth maximization objective Acid test ratio

Q.7. Briefly describe the techniques of Financial analysis and state the limitations of
Financial Analysis.
OR
Define what is meant by Working Capital. Discuss the factors which determine
Working Capital needs.

SUBJECT CODE: BHM281 EXAM DATE: 13.05.2015
CODE: FM/MAY/15/NC Page 3 of 3
Q.8. State what is meant by the term capitalization. Discuss in the light of this the status
of over-capitalisation and under-capitalisation.
OR
Define the term Capital Structure. Discuss the factors that determine Capital
structure of a company.

Q.9. From the summarized Balance Sheet given below, prepare a Fund Flow
statement for the year 1976:
Balance Sheet
1975 1976 1975 1976

Liabilities Assets
Share Capital Cash
P L Account Debtors
Reserves Stock
Creditors Machinery
Bills Payable Land




Q.10. The initial cash outlay of a proposed project is Rs.5,00,000/-. The cash inflow during
next five years are Rs.1,70,000/- and
Rs.1,80,000/-. Find out the payback period of the project.