Universities

NMIMS BBA – B.Com Banking & Insurance Solved Answer Assignment

Banking & Insurance programs, such as NMIMS BBA – B.Com Banking & Financial Services, prepare students for a wide range of careers in the financial sector.

1. In March 2022, major Central Banks worldwide started increasing interest rates resulting in higher Treasury Bill yields and failure of few banks in US (due to selling of Assets to meet liquidity). Explain the role Treasury Policies & ALCO for liquidity management? (10 Marks)

Ans:

Introduction

Treasury management is crucial in the banking industry as it is responsible for maintaining institutions’ financial stability and liquidity. Bank asset and liability management involves implementing various techniques and policies to efficiently oversee a bank’s assets and liabilities to maximize profitability and minimize risks.

Concept and Application

Treasury policies refer to the norms and processes banks implement to regulate their treasury activities. These rules are formulated to guarantee cautious risk management, uphold sufficient liquidity, and maximize the return on investment. The main goal of treasury policies is to efficiently handle liquidity, particularly in market volatility or economic uncertainty.

The recent surge in interest rates implemented by prominent central banks has substantially affected banks’ liquidity positions. As interest rates grow, the returns on Treasury Bills also rise, making them more appealing investment choices for banks. Nevertheless, an increase in T-bill rates might result in a decline in the market value of current bond investments, impacting banks’ financial positions.

Conclusion

Ultimately, treasury management is essential for preserving institutions’ financial well-being and stability. The recent surge in interest rates and the collapse of certain banks in the US highlights the significance of solid treasury policies and efficient ALCO governance.

2. A British MNC in India want to move their Corporate Treasury to Head Office in London for better liquidity management. Explain what are the considerations when choosing the location to setup a Corporate Treasury office? (10 Marks)

Ans:

Introduction:

Corporate treasury management is an essential financial management component for multinational corporations (MNCs), especially in the banking industry. Financial management entails strategically overseeing a company’s financial resources, debts, and potential hazards to guarantee the most advantageous liquidity, funding, and investment choices.

Concept and Application:

1. Regulatory Framework: Treasury activities are greatly influenced by the regulatory environment. As a prominent international financial center, London provides a robust regulatory environment with explicit guidelines for treasury activities. The stability and predictability mentioned are essential for efficiently managing financial risks. 

2. Market Access and Connectivity: London has exceptional market access and connectivity, granting unrivaled entry to worldwide financial markets, encompassing foreign exchange, money markets, and capital markets. This enables multinational corporations (MNCs) to enhance their liquidity management strategies by facilitating efficient fundraising, investing, and hedging activities. 

Conclusion: 

To relocate a corporate treasury office from India to London, it is crucial to thoroughly evaluate multiple factors such as the regulatory framework, market accessibility, financial infrastructure, tax consequences, risk management, availability of skilled workforce, currency considerations, cost implications, strategic compatibility, and political-economic stability.

3. In view of settlement risk and increasing interest rates, explain the following:

a. What is Herstatt risk? (5 Marks)

Ans:

Introduction:

Treasury management in banking involves employing various techniques and practices to handle a bank’s financial assets and liabilities efficiently. This includes effectively managing liquidity, interest rate, and settlement risks. Of all the dangers, Herstatt risk is particularly worrisome for banks involved in foreign operations, significantly when interest rates are rising. 

Concept and Application:

Herstatt risk, named after the German bank Bankhaus Herstatt, pertains to the potential failure of settlement in foreign exchange transactions caused by disparities in time zones. It happens when one party involved in a foreign exchange transaction meets its responsibility to make a payment in a specific currency.

Concept and Application:

Nevertheless, the counterparty must provide the specified quantity in the alternative currency. This failure commonly occurs due to a time lag between the two stages of the transaction, which is caused by disparities in the operating hours of the payment systems or financial institutions involved. 

Conclusion: 

In summary, Herstatt risk presents a substantial obstacle for banks involved in global operations, especially in the face of rising interest rates and changing market conditions.

b. How Assets and Liabilities are considered Rate Sensitive? (5 Marks)

Ans:

Introduction

Treasury management in banking refers to strategically managing a bank’s assets and obligations to assure the bank’s liquidity, profitability, and effective risk management. An essential component of treasury management involves comprehending the impact of interest rate fluctuations on assets and obligations, particularly in the context of rising rates and settlement risk. 

Concept and Application 

Interest rate sensitivity pertains to the extent to which the value of financial instruments, such as assets and obligations, alters in reaction to variations in interest rates. Sensitivity to interest rate fluctuations is paramount for banks, as it can significantly affect their profitability, risk exposure, and overall financial well-being. 

NMIMS BBA – B.Com Banking & Insurance Solved Answer Assignment

Conclusion

Understanding the impact of interest rate changes on assets and liabilities is crucial for efficient treasury management in the banking sector, especially when interest rates increase and settlement is dangerous.

To get the complete answer/solution to this NMIMS assignment, you can contact Harsha Morey’s Academic Writing Services.

Harsha Morey prepares two types of Assignments. General assignments & Customized assignments. Both assignments are 100 % Plagiarism-free.

Harsha Morey is the number 1 NMIMS Academic Writing Professional. He is a highly experienced academic professional and a reputable and reliable academic content writer with over 24 years of experience. You can obtain ready-made, customized, plagiarism-free MBA, BBA, EMBA, and B.Com assignments.

Important Notice for NMIMS Assignments:

To ensure your NMIMS assignments meet the university’s standards, The NMIMS Assignments must be 100% customized, plagiarism-free, and unique. 

Copying from Google, AI tools, blogs, books, or any other sources is strictly prohibited, and if you copy answers, you will get ZERO marks.

Before purchasing assignments from any academic writer, always demand the following verification:

1. Turnitin Report – To ensure the content is plagiarism-free.
2. Grammarly Report – This is to ensure grammar and writing quality.
3. AI Detection Report – To guarantee no AI-generated content.

Remember, these reports are not just a formality. They are your shield against ZERO marks. Take charge of your grades by ensuring your work is original and meets NMIMS standards.

Dr. Banakar leads a team of over 100 PhD-qualified professionals dedicated to creating high-quality, plagiarism-free assignments tailored to meet the exact standards and requirements of NMIMS. With a proven track record, students who have used his services often score 25+ marks out of 30, highlighting the level of detail, precision, and thorough research into every assignment. This emphasis on research instills confidence in the quality of the work.

NMIMS BBA – B.Com Banking & Insurance Solved Answer Assignment

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Audit – II

Q.1 You are a senior auditor of LENA Bank Ltd. Please explain the different types of risk associated in the Indian banking sector. (10 Marks)

This question is from the NMIMS BBA – B.Com Audit – II Solved Answer Assignment.

SOLUTION

Introduction:

Risk in the banking industry refers to the possibility that the end outcome of an investment, or the return on the asset itself, will be different from anticipated. The likelihood of a product being different from the expected or desired one is what we mean when discussing the risk. Credit, market, operational, liquidity, business, reputational, and systematic chances are some of the most prominent dangers in the banking industry.

Concept and application: 

The Reserve Bank of India (RBI) is responsible for establishing the rules, standards, and regulations that govern the banking industry. The following are some examples of distinct categories of risk in the banking industry:

1. Liquidity Risk

2. Interest Rate Risk

3. Market or pricing Risk

4. Credit or Default Risk

5. The risk of operations

Let us have an in-depth understanding of each of them.

NMIMS BBA – B.Com Audit – II Solved

Conclusion: 

The Reserve Bank of India (RBI), the primary regulator of the banking industry, takes several measures to control the risks discussed earlier in this article. The capital adequacy, assets quality management, earnings quality, liquidity, and sensitivity to market risk framework is an example of the framework that may be used to measure the risks associated with a bank by utilizing the bank’s financial statements.

Q.2 You are a director of Meta Pvt Ltd. You have recently crossed the turnover of Rs. 1 crore. Now you are required to appoint tax auditor. Please write down who can audit the accounts under the Income Tax Act to present in the board meeting? (10 Marks)

SOLUTION

Introduction:

An impartial investigation of a company’s financial records, followed by the compilation of a report based on the investigation’s findings, is what is meant by the term “audit.” The examination’s findings and the author’s conclusions need to be included in the report. Therefore, it is either an analysis or a review of the facts. An auditor is an individual who is responsible for carrying out an audit by the various relevant laws.

Concept and application: 

In the scenario presented, Meta Private Limited has a turnover higher than one crore and must hire a tax auditor to conduct the tax audit. Therefore, it is of the utmost importance to understand the fundamental qualifications and characteristics that a candidate must have for the auditor position.

To be qualified to act as an auditor by the Companies Act of 2013, a person must first become a member of the Institute of Chartered Accountants of India and then obtain a certificate of practice. The following are some of the attributes that an auditor should have:

NMIMS BBA – B.Com Audit – II Solved

Conclusion: 

A company may be governed by the norms of several laws that are applicable, and depending on whether or not the audit is appropriate, the company must employ a qualified auditor to ensure that its books of accounts are accurate and have been examined.

Q.3 You are representative of ABC & Co Chartered accountant.

SOLUTION

a) Newly elected members of local body in Pune district have approached you to attend the meeting. You are required prepare the list of objectives of an audit of local bodies? (5 Marks)

Introduction:

A local body is any institution that exercises its autonomy at the local level. It administrates a somewhat compact region or community, such as a collection of villages, towns, or cities. There are two distinct categories of local bodies in India:

a. Panchayats: These community councils are established to administer, plan, and develop rural areas. You may also hear them referred to as the rural local bodies.

Concept and application: 

These organizations hold the authority to levy taxes on a mandatory basis. These abilities can be confined to a narrow area, as with companies, or they can encompass a greater extent.

Financial administration of local bodies covers three basic financial aspects viz. 

• Budgeting
• Expenditure Control
• Accounting System

Conclusion: 

A comprehensive system of internal financial control should always include an internal audit as one of its components. Auditing is a form of exercising financial control over local governments, and one way to do so is through conducting audits.

b) Rise Pvt Ltd is an emerging company that recently crossed the basic turnover limit for Tax Audit. It would help if you wrote down to Rise Pvt Ltd the reasons for conducting Tax Audits. (5 Marks)

SOLUTION

Introduction: 

A record, an account, or a business transaction is examined, checked, reviewed, verified, and inspected as part of the audit. An inspection and verification of an assessee’s books of accounts to determine whether or not they comply with the requirements of the Income Tax law provisions is the procedure that constitutes a tax audit.

Concept and application: 

The provisions for a tax audit can be found in Section 44AB of the Income Tax Act, passed in 1961. It specifies the factors that must be considered while conducting an audit of the financial records of various individuals engaged in the business or profession of running a company or providing a service. These types of people are required to have an experienced Chartered Accountant with a certificate of practice to audit the financial records of their businesses.

Conclusion: 

In summary, a Chartered Accountant (CA) or a CA firm is responsible for carrying out the audit by the requirements of the Income Tax Act. Every individual is limited to a maximum of sixty audits during a single fiscal year.

To get the complete answer/solution to this NMIMS assignment, you can contact Harsha Morey’s Academic Writing Services.

Harsha Morey is the number 1 NMIMS Academic Writing Professional. He is a highly experienced academic professional and a reputable and reliable academic content writer with over 24 years of experience. You can obtain ready-made, customized, plagiarism-free MBA, BBA, EMBA, and B.Com assignments.

Important Notice for NMIMS Assignments:

To ensure your NMIMS assignments meet the university’s standards, The NMIMS Assignments must be 100% customized, plagiarism-free, and unique. 

Copying from Google, AI tools, blogs, books, or any other sources is strictly prohibited, and if you copy answers, you will get ZERO marks.

Before purchasing assignments from any academic writer, always demand the following verification:

1. Turnitin Report – To ensure the content is plagiarism-free.
2. Grammarly Report – This is to ensure grammar and writing quality.
3. AI Detection Report – To guarantee no AI-generated content.

Remember, these reports are not just a formality. They are your shield against ZERO marks. Take charge of your grades by ensuring your work is original and meets NMIMS standards.

Dr. Banakar leads a team of over 100 Ph. D.-qualified professionals dedicated to creating high-quality, plagiarism-free assignments tailored to meet the exact standards and requirements of NMIMS. With a proven track record, students who have used his services often score 25+ marks out of 30, highlighting the level of detail, precision, and thorough research that goes into every assignment. This emphasis on research instills confidence in the quality of the work.

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SVKM Narsee Monjee BBA Solved Assignments

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NMIMS BBA – B.Com Advanced Financial Accounting Solved Answer Assignment

Advanced Financial Accounting

Q.1 The Balance sheet of AB Co. and PQ Co. as of 31st March 2021 was as follows. AB co. took over PQ co. for Rs 450000 and paid equity shares for settlement of PC AB Co. took over all the assets and Liabilities of PQ Co. Identify the method of Purchase consideration and explain it and discuss the entries to be passed in AB Company. (10 Marks, NMIMS BBA B.Com Advanced)

Introduction

There are several different purchase consideration methods that people use. One of the most common is the cost-benefit analysis.While it originates with making purchases, close by are many altered aspects that arise into play. One of the most important of these factors is the purchase consideration method. This refers to how individuals evaluate and compare different products or services before deciding to buy.

Concepts and Applications

The given Balance Sheet of AB Co. and PQ Co. shows that AB Co. has taken over PQ Co. for Rs 450000 and paid the settlement of the purchase consideration using equity shares. AB Co. has taken over all the assets and liabilities of PQ Co. The method of purchase consideration used in this case is Share Acquisition Method. An important method of purchase consideration is the emotional decision-making approach. This involves making purchasing decisions based on how a product or service makes an individual feel rather than on its practical benefits or cost. Consideration curation includes selecting and curating options to find the perfect purchase.

NMIMS BBA – B.Com Advanced Financial

Conclusion

To conclude, many other factors can influence purchase consideration. These might include brand reputation, product quality, customer service, and environmental or social impact. For example, someone might choose to buy a product from a company with a good reputation for sustainability, even if it is more expensive than other options.

Q. 2 There are various methods used for the valuation of goodwill. However, the selection of a valuation method depends on different business practices adopted by the company. So you are required to discuss commonly used methods for the valuation of goodwill in detail with suitable examples. (10 Marks)

ANS:

Introduction

The premium salaried for the attainment reflects the worth of the developed business’s intangible resources, such as its reputation, customer base, and brand recognition. Therefore, goodwill is the change amid the acquisition worth of a business & the reasonable market place worth of its tangible resources. Valuing goodwill can be complex and requires a thorough understanding of the company’s financial statements, market position, and the industry in which it operates.

Concepts and Applications

Goodwill is an imperceptible strength that signifies the worth of a business’s brand name, client base & other imperceptible resources that donate to its capability to produce revenue. The valuation of goodwill is important for financial reporting, taxation, mergers, and acquisitions. There are several commonly used methods for the valuation of goodwill, including:

Income Approach: This method estimates the worth of goodwill by analyzing the upcoming economic benefits that the corporate is predicted to produce. This approach’s most commonly used techniques are discounted cash flow (DCF) and capitalized earnings.

NMIMS BBA – B.Com Advanced Financial

Conclusion

Goodwill can have a significant impact on a business’s balance sheets. Valuing goodwill accurately is essential for companies to understand their overall financial position and make strategic decisions. An accurate valuation can also help companies attract potential investors and secure financing for future growth.

Q.3 Shell Ltd furnishes the following information. Calculate the Value value of closing inventory as of 31st March and the cost of goods sold during March Month

1. Using the FIFO method under a periodic inventory system and explaining the concept of the FIFO Method (5 Marks)

ANS:

Introduction

The FIFO (First-In, First-Out) scheme is a popular account estimate technique used by many companies. It is based on the principle that the 1^st items bought or formed are the 1^stitems vented or used, and the most recent items are left in inventory.

Concepts and Applications

FIFO (First-In, First-Out) is a technique of record assessment where the 1^st goods bought are expected to be the 1^stgoods vented. That means that the price of the earliest record items is matched against the revenue from the first goods sold. In other words, the price of the items vended is founded on the price of the earliest units available in the record.

Conclusion

The FIFO method benefits companies that sell or use perishable goods or items with a limited shelf life. By selling or using the oldest items first, the companies can avoid spoilage or obsolescence of inventory, reducing the likelihood of inventory losses.

b) Under the Perpetual Inventory system and interpret it. (5 Marks)

ANS:

Introduction

A perpetual Inventory Method is a method of record administration that involves keeping a continuous record of inventory movements, including purchases, sales, and adjustments, in real-time. This system provides an up-to-date history of inventory levels.

Concepts and Applications

By using the perpetual inventory system:

1st March: The opening stock on 1st March is 1000 units at a rate of $10 per unit. This means that the value of the opening stock is $10,000 (1000 units x $10 per unit).

5th March: This purchase costs $40,000 (2000 units x $20 per unit).

16th March: This purchase costs $62,500 (2500 units x $25 per unit).

20th March: The cost of goods sold  for this sale could be calculated utilizing the weighted average method as follows:

Conclusion

In conclusion, the perpetual inventory system provides accurate and up-to-date inventory levels, purchases, and sales records. By maintaining a continuous history of inventory movements, businesses can track inventory costs and ensure they have the necessary stock to meet customer demand.

To get the complete answer/solution to this NMIMS assignment, you can contact Harsha Morey’s Academic Writing Services.

Harsha Morey is the number 1 NMIMS Academic Writing Professional. He is a highly experienced academic professional and a reputable and reliable academic content writer with over 24 years of experience. You can obtain ready-made, customized, plagiarism-free MBA, BBA, EMBA, and B.Com Assignments.

Important Notice for NMIMS Assignments:

To ensure your NMIMS assignments meet the university’s standards, The NMIMS Assignments must be 100% customized, plagiarism-free, and unique. 

Copying from Google, AI tools, blogs, books, or any other sources is strictly prohibited, and if you copy answers, you will get ZERO marks.

Before purchasing assignments from any academic writer, always demand the following verification:

1. Turnitin Report – To ensure the content is plagiarism-free.
2. Grammarly Report – This is to ensure grammar and writing quality.
3. AI Detection Report – To guarantee no AI-generated content.

Remember, these reports are not just a formality. They are your shield against ZERO marks. Take charge of your grades by ensuring your work is original and meets NMIMS standards.

Dr. Banakar leads a team of over 100 PhD-qualified professionals dedicated to creating high-quality, plagiarism-free assignments tailored to meet the exact standards and requirements of NMIMS. With a proven track record, students who have used his services often score 25+ marks out of 30, highlighting the level of detail, precision, and thorough research into every assignment. This emphasis on research instills confidence in the quality of the work.

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