MODIFIED FIRST PRE-BOARD TIME TABLE

KENDRIYA VIDYALAYA SANGATHAN, MUMBAI REGION

           MODIFIED  TIME TABLE FOR PRE-BOARD-I

TIME   : 10:30 am to 01:30 pm

DAY / DATE
	Science Stream	Commerce Stream
5.12.2011	Physics	Accountancy
Monday
7.12.2011	English	English
Wednesday
8.12.2011	Physical Education	Physical Education
Thursday
9.12.2011	Chemistry	Economics
Friday
12.12.2011	Mathematics	Mathematics
Monday
13.12.2011	---	---
Tuesday
14.12.2011	Hindi	Hindi
Wednesday
15.12.2011	IP / Computer Science	IP / Computer Science
Thursday
16-12-2011	Biology / Bio Tech	Business Studies
Friday

TEAM WORK - REFLECTION

Just a forwarded email which grabbed my attention...

The picture may sound funny, but think of 'How True & Implied' it is when been being as part of a very 'good' team..... Team work does matter and it results in fruitful results - always.

Who wants to deny this fact? I believe no one can!!

UNANSWERED....

This is written by my very special friend..... on a paper... Just to test a new pen which I bought :) Can you believe this? Well, sometimes we have to... I didn't wanna miss that paper, so jotting down here to keep it alive..... and yea, this ain't plagiarism :-)

"Every man when tries to know the world, and when he knows, is left with a question unanswered - which he carries to his grave, which he alone knows what...

But when the whole world leaves him behind, to rest in peace, his soul still searches... & is never alone.

The Soul then leaves it to someone whose hunt is for the same to augment his wild curiosity, which when unanswered follows him to his grave 'unanswered'..... "

Wait, what did you understand by this? Well, many people - many meanings. But those who have the same thoughts as the author, will definitely understand what it means :)

Cheers!!

FIRST PRE-BOARD TIME TABLE

DAY / DATE
	Science Stream	Commerce Stream
5.12.2011	Physics	Accountancy
Monday
7.12.2011	English	English
Wednesday
8.12.2011	Physical Education	Physical Education
Thursday
9.12.2011	Chemistry	Economics
Friday
12.12.2011	Mathematics	Mathematics
Monday
13.12.2011	Biology / Bio Tech	Business Studies
Tuesday
14.12.2011	Hindi	Hindi
Wednesday
15.12.2011	IP / Computer Science	IP / Computer Science

CONSUMERS RIGHT

MARKETING

Profitability Ratios

Profitability Ratios

1.   Gross Profit Ratio

Gross Profit Ratio = Gross Profit/Net Sales × 100

Significance: It indicates gross margin or mark-up on products sold. There is no standard norm for its comparison. It also indicates the margin available to cover operating expenses, non-operating expenses, etc. Change in gross profit ratio may result from change in selling price or cost of sales or a combination of both. A low ratio may indicate unfavourable purchase and sales policy. It must be interpreted carefully as valuation of stock also affects its computation. Higher gross profit ratio is always a good sign.

2.   Net Profit Ratio

Net Profit Ratio  =  Net profit / Sales × 100

Significance: It is a measure of net profit margin in relation to sales. Besides revealing profitability, it is the main variable in computation of Return on Investment. It reflects the overall efficiency of the business, assumes great significance from the point of view of investors.

3.   Return on Capital Employed or Investment (ROCE or ROI)

Return on Investment (or Capital Employed) = Profit before Interest and Tax / Capital Employed × 100

Significance: It measures return on capital employed in the business. It reveals the efficiency of the business in utilisation of funds entrusted to it by shareholders, debenture-holders and long-term liabilities. For inter-firm comparison, return on capital employed which reveals overall utilisation of fund is considered good measure of profitability. It also helps in assessing whether the firm is earning a higher return on capital employed as compared to the interest rate paid.

4.   Return on Shareholders’ Fund

Return on Shareholders’ Fund = Profit   after   Tax

                                                          Shareholders   Fund

5.   Book Value Per Share

Book Value per share = Equity shareholders’ funds/No. of Equity Shares

6.   Dividend Payout Ratio

Dividend Payout Ratio =   Dividend   Per   Share

                                               Earnings   Per   Share

7.   Price Earning Ratio

P/E Ratio =  Market price of a Share/Earnings per Share

Activity (or Turnover) Ratios

Activity (or Turnover) Ratios

1.   Stock Turn-over

Stock Turnover Ratio  =  Cost of Goods Sold/ Average Stock

Significance : It studies the frequency of conversion of stock of finished goods into sales. It is also a measure of liquidity. It determines how many times stock is purchased or replaced during a year. Low turnover of stock may be due to bad buying, obsolete stock, etc. and is a danger signal. High turnover is good but it must be carefully interpreted as it may be due to buying in small lots or selling quickly at low margin to realise cash. Thus, it throws light on utilization of stock of goods.

2.   Debtors (Receivables) Turnover Ratio

Debtors Turnover ratio = Net Credit sales/ Average Accounts Receivable

Where Average Account Receivable = (Opening Debtors and Bills Receivable +   Closing Debtors and Bills Receivable)/2

Significance: The liquidity position of the firm depends upon the speed with which debtors are realised. This ratio indicates the number of times the receivables are turned over and coverted into cash in an accounting period. Higher turnover means speedy collection from debtors. This ratio also helps in

working out the average collection period, ratio calculated by dividing the days/months in a year by debtors turnover ratio.

3.   Creditors (Payable) Turnover Ratio

Creditors Turnover ratio = Net Credit purchases / Average accounts payable

Where Average account payable = (Opening Creditors and Bills Payable + Closing Creditors and Bills Payable)/2

Significance : It reveals average payment period. Lower ratio means credit allowed by the supplier is for a long period or it may reflect delayed payment to suppliers which is not a very good policy as it may affect the reputation of the business.

The average period of payment can be worked out by ys / months in a year by the turnover rate.

4.   Investment (Net Assets) Turnover Ratio

Investment (Net Assets) Turnover ratio  = Net Sales/Capital Employed

5.   Fixed Assets Turnover :

  Fixed asset turnover = Net Sales/Net Fixed Assets

6.   Working Capital Turnover :

   Working Capital Turnover = Net Sales/Working Capital

SOLVENCY RATIO

Solvency Ratios

1.   Debt equity ratio:

Debt-Equity ratio  = Long-term Debt’s

                             Shareholders Fund

Where Shareholders Funds =   Equity Share Capital + Reserves and Surplus (equity)– Fictitious Assets + Preference Share Capital. Alternatively, it can be calculated as Non–fictitions Total Assets – Total External Liabilities.

Long-term Funds = Debentures + Long-term Loans

Significance: This ratio measures the degree of indebtedness of an enterprise and gives an idea to the long-term lender regarding extent of security of the debt. As indicated earlier, a low debt equity ratio reflects more security. A high ratio, on the other hand, is considered risky as it may put the firm into difficulty in meeting its obligations to outsiders. However, from the perspective of the owners, greater use of debt trading on equity may help in ensuring higher returns for them if the rate of earnings on capital employed is higher than the rate of interest payable. But it is considered risky and so, with the exception of a few business, the prescribed ratio is limited to 2:1. This, ratio is also termed as ‘Leverage Ratio’

2.   Debt Ratio

Debt Raio = Long-term Debt/Capital Employed (or Net Assets)

Capital employed is equal to the long-term debt + shareholders’ fund. Alternatively, it may be taken as net assets which are equal to the total nonfictitionies assets – current liabilities

Significance : Like debt equity ratio, it shows proportion of long-term debt in capital employed. Low ratio provides security to creditors and high ratio helps management in trading on equity. In the above case, the debt ratio is less than half which indicates reasonable funding by debt and adequate security of debt.

3.   Proprietary Ratio

Proprietary Ratio = Shareholders Funds/Capital employed (or net assets)

Significance: Higher proportion of shareholders funds in financing the assets is a positive feature as it provides security to creditors. This ratio can also be computed in relation to total assets in lead of net assets (capital employed).

4.   Total Assets to Debt Ratio

Total assets to Debt Ratio  =  Total assets/Long-term debt

Significance. This ratio primarily indicators the rate of external funds in financing the assets and the extent of coverage of their debt is covered by assets.

5.   Interest Coverage Ratio

Interest Coverage Ratio = Net Profit before Interest and Tax / Interest on long term debt

Significance: It reveals the number of times interest on long-term debt is covered by the profits available for interest. A higher ratio ensures safety of interest payment debt and it also indicates availability of surplus for shareholders.

LIQUIDITY RATIO

LIQUIDITY RATIO

1.Current Ratio

Current Ratio  =  Current Assets : Current Liabilities

or

Current   Assets

Current Liabilities

Current assets include cash in hand, bank balance, debtors, bills receivable,stock, prepaid expenses, accrued income, and short-term investments(marketable securities).

Current liabilities include creditors, bills payable, outstanding expenses, provision for taxation net of advance tax, bank overdraft, short-term loans, income received in advance, etc.

Significance: It provides a measure of degree to which current assets cover current liabilities. The excess of current assets over current liabilities provides a measure of safety margin available against uncertainty in realisation of current assets and flow of funds. The ratio should be reasonable. It should neither be very high or very low. Both the situations have their inherent disadvantages. A very high current ratio implies heavy investment in current assets which is not a good sign as it reflects under utilisation or improper utilisation of resources. A low ratio endangers the business and puts it at risk of facing a situation where it will not be able to pay its short-term debt on time. If this problem persists, it may affect firms credit worthiness adversely. Normally, it is advocated to have this ratio as 2:1.

2. Quick Ratio

It is the ratio of quick (or liquid) asset to current liabilities. It is expressed as

Quick ratio = Quick Assets : Current Liabilities  or 

Quick   Assets

Current Liabilities

The quick assets are defined as those assets which are quickly convertible into cash. While calculating quick assets we exclude the closing stock and prepaid expenses from the current assets. Because of exclusion of non-liquid current asset, it is considered better than current ratio as a measure of liquidity position of the business. It is calculated to serve as a supplementary check on liquidity position of the business and is therefore, also known as ‘Acid-Test Ratio’


Significance: The ratio provides a measure of the capacity of the business to meet its short-term obligations without any flaw. Normally it is advocated to be safe to have a ratio of 1:1 as unnecessarily low ratio will be very risky and a high ratio suggests unnecessarily deployment of resources in otherwise less profitable

ACHIEVEMENT TEST - BUSINESS STUDIES

KENDRIYA VIDYALAYA CME PUNE 31

ACHIEVEMENT TEST II

CLASS XII COMMERCE

MARKS : 25                              SUBJECT : BUSINESS STUDIES   TIME : 1 HR       

1.Explain in one sentences how direction is an executive function of management.  1

2. Tax benefit is available only in case of payment of interest and not on the payment of preference dividend. Why?  1

3. Motivation can be either positive or negative. How?  3

4. Explain in brief any three decision involved in financial management. 3

5. Informal communication supplements the formal communication in many ways. How? 5

6. Explain any six factors affecting the financing decision of a company. 6

7. A supervisor is not at all required in an organization. Do you agree? Give reason to support your answer. 6

ACHIEVEMENT TEST

KENDRIYA VIDYALAYA CME PUNE 31

ACHIEVEMENT TEST II

CLASS XII COMMERCE

MARKS : 25                              SUBJECT : ACCOUNTANCY             TIME : 1 HR       

1.     X ltd obtained a loan of Rs 4,50,000 from SBI.The company issued 5500, 9 % Debentures of Rs 100 each as a collateral security for the same. Show how these items will be presented in the Balance sheet of the company. Pass necessary journal entry for it.  (3).

2.     Mention the main heading of Assets and liabilities as per the company act 1956. (4)

3.     X ltd had Rs 10,00,000  9% Debentures due to be redeemed out of profits on 1^st October 2009 at a premium of 5%. The company had a Debenture redemption reserve of Rs 4,14,000. Pass necessary journal entries at the time of redemption. (4)

4.     From the following information provided, prepare a comparative income statement for the period 2008 and 2009. (4)

                                              2008                                  2009

           Sales                                  6,00,000                         8,00,000

Gross  Profit                      40% on sales               50% on sales

Administrative expenses     20% on Gross profit 15% on Gross Profit

Income Tax                                50%                             50%

5.     Devi ltd on 1^st April 2006 acquired assets of the value of Rs 6,00,000 and liabilities worth Rs 70,000 from P & Co at an agreed value of Rs 5,50,000. Devi ltd issued 12% Debentures of Rs 100 each at a premium of 10% in full satisfaction of purchase consideration. The debentures are redeemable 3 years later at a premium of 5%. Pass necessary entries to record the above including redemption of debentures. (6)

6.     Pass necessary journal entries for the following: (4)

a)10,000 12% Debentures of Rs 100 at discount of 5% but redeemable at 5% premium.

b) 1000 12 %Debentures of Rs 100 each issued to a supplier of machinery costing Rs 95,000. The debentures are repayable after 5 years.

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FAILURE DOESN'T MEAN....

Failure doesn’t mean you’re a failure,

It means you haven’t succeeded yet.

Failure doesn’t mean you’ve accomplished nothing,

It means you’ve learnt something.

Failure doesn’t mean you don’t have it in you,

It means you’ve to do it in a different way.

Failure doesn’t mean you’re inferior,

It means you are not yet perfect.

Failure doesn’t mean you’ve wasted your life,

It means you’ve reasons to start a fresh.

Failure doesn’t mean you should give up,

It means you must try harder.

Failure doesn’t mean you’ll never make it,

It does mean it will take a little longer.

Failure doesn’t mean that God has abandoned you,

It means God has better idea for you.

Failure doesn’t mean you’re weak,

It does mean God wants to make you stronger.

Failure is nothing but a step towards success.