Question 1: XYZ Co manufactures Fans and it imports raw material from Germany. Throughout the year 2002 company had made a massive profit of Rs 20 crores, it has as well opened different branches across Maharashtra. Since two years companies profit has decreased a lot and other branches are as well not yielding profit. Few of the branches are declared as sick unit. Propose the survival strategies for the company.
Question 2: ABC Company is not capable to continue its business activities due to heavy loss and high bank loan. The new venture of the company is as well not yielding profit as a result of which there is a lack of fund. XYZ ltd Company wants to acquire ABC LTD to save it from the loss. Recommend the company the various factors require to be considered during the acquisition and as well the tax issues.
Question 3: ALEX co manufactures bottles and recently companies profit increases from 35% to 47%. Company has as well made few changes in its dividend policy; company has adopted liberal dividend policy for its shareholders. Company could as well introduce different programs and policies to reward the stakeholders, describe in detail the same.
Question 4: ABC LTD had raised Rs 10 lakhs for financing its new project but due to some reason the fund was not utilized correctly. A company is not capable to determine the reasons, please advise the company and as well give corrective suggestions.
Question 5: XYZ Ltd co.’s present capital structure comprises Rs 20 Crores comprising of Rs12 Crore equity share capital, Rs 4 Cr debt capital and Rs 4 Cr Preference capital. Company further wants to increase Rs 5 Crore for financing a new project. Please suggest the company the other innovative sources of finance.
Question 6: ‘Financial Engineering is CEMENT which holds altogether People, System, Brands, Products and Technology of the company’. Explain the statement and as well describe the holistic approach to innovative financial engineering.