Total No. of Questions : 8] SEAT No.

P3412 [Total No. of Pages : 3

[4660] - 1007
M.E. (Civil) (Construction Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2013 Pattern)

Time : 3 Hours] [Max. Marks : 50

Instructions to the candidates:-
1) Each question carries 10 marks.
2) Solve any 5 questions out of 8.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, electronic pocket calculator and
statistical tables is allowed.
6) Assume suitable data, if necessary.

Q1) a) Explain the status of present economy and its importance in Infrastructure
sector. [5]
b) What is working capital? State the significance of working capital
management in construction management. [5]

Q2) a) Two projects are given below, compare the profitability of projects. [7]
Item Project A Project B
Initial value of investment Rs. 5,00,000/- Rs. 11,00,000/-
(Cash outflow)
Present value of cash inflows Rs. 6,00,000/- Rs. 12,50,000/-
Net present value Rs. 1,00,000/- Rs. 1,50,000/-
b) What is the role of lenders Engineer? [3]

P.T.O.
Q3) Explain briefly payback period method and Average rate of return method.
Compare them with NPV method, IRR method and BCR method and also
comment on the choice of each method. [10]

Q4) With reference to construction company prepare Profit and Loss A/c
statement. Assume suitable data of construction company. [10]

Q5) Explain in detail main sources of construction project finance. [10]

Q6) Explain the following :

a) Venture Capital. [3]

b) Corporate tax planning. [3]

c) Cost planning and control during design and construction. [4]

Q7) Namo Cement Ltd. Company's Balance Sheet as at the end of just concluded
financial year and the previous year are as under [10]

Balance sheet as at the end of March (Rs. crores)

Liabilities 2013 2014 Assets 2013 2014

Equity shares 10 10 Fixed Assets 15 18
Excluding Depreciation
Reserves & surplus 4 4.4 Stock 7.6 13.2
Securities loans 8 9 Debtors 6 5.4
Bank overdraft 6 8 Cash in hand 2.4 0.4
Creditors 3 4
Unsecured loans from - 1.6
promoters
31 37 31 37

[4660] - 1007 2
 Additional information about company are given below : (Rs. crores)

2013 2014

Sales 40 35

Profit after tax 3 1.7

Assess the financial efficiency of the company.

Q8) With reference to Mass Transit System Explain. [10]

a) Various means of finance which were used for completion of entire project
from its inception.

b) Financial ups and downs are tackled and justification with respect to
success or failure of the project.

yyy

[4660] - 1007 3
Total No. of Questions : 8] SEAT No. :
P4952 [Total No. of Pages : 3
[4960]-13
M.E. (Civil) (Const. & Mgmt.)
PROJECT ECONOMICS & FINANCIAL MANAGEMENT
(2008 Course) (Semester - II)

Time : 4 Hours] [Max. Marks : 100

Instructions to the candidates:
1) Answer any 3 questions from each section.
2) Figures to the right indicate full marks.

SECTION - I

Q1) What is capital budgeting? Highlight the role of the financial manager in the
process of capital budgeting? Discuss the objectives of financial management
and explain the concept of financial discipline with example.
[4+4+6+2]

Q2) Compare and contrast between the equity finance and debt finance. Discuss
importance of the debt: equity ratio in the generation as well as the management
of the financial liabilities. Explain sources of the equity finance.
[6+4+6]

Q3) An equipment has an initial cost of Rs. 75 lakhs. Annual Maintenance costs
are at 2%. Equipment life is 5 years. At the end of the 3rd year an additional
repairs and replacement of parts cost is occurring which is 3% in excess. In
the first year of use, the equipment generates a business equivalent to 10% of
the initial cost, in the 2nd year 20% of the initial cost, in the 3rd year 40% of the
initial cost, in the 4th year 50% of the initial cost and in the final year 25% of
the initial cost.
Determine yearly cashflows and decide whether to invest in the equipment
or not, if the IRR expected is at 14%. Consider minimum 2 trials for the IRR.
[4+12]

P.T.O.
Q4) a) Determine the time value of Rs. 100 in tabular form, over a period of 10
years at the following interest rates : 5%, 10%, 15%, 20%. What do you
infer from the results as a financial analyst? Explain. [12]
b) Explain concept and formula for the modified payback period. Where is
it used? [6]

SECTION - II

Q5) a) Determine any 3 types of the ARR for the following cash flows [12]

Year Cash Inflow Cash outflow

(Rs.) (Lakhs) Rs. (Lakhs)

1 60 300

2 120 200

3 180 150
4 240 100

5 320 50

Consider initial investment as Rs. 100 lakhs. Also consider tax on income
at 20%.

b) Explain how the machinery depriciation is accounted and used for

calculations of income tax. [6]

Q6) A portfolio consists of 3 assets in the proportion of 20 : 30 : 50. The risk -

return characteristics are as follows. [18]
Asset 1 Asset 2 Asset 3

Risk 8% 16% 10%

Return 12% 20% 18%

Determine the combined risk - return characteristics for the complete portfolio
when:

[4960]- 13 2
 a) There is no co-relation between the market prices of the assets;
b) There exists a perfect +ve co-relation between the market prices of
all the assets;

c) There exists a perfect –ve co-relation between the market prices of

all the assets.

Q7) Discuss the merits and de-merits of

a) Financial ratios used in analysis. [6]

b) Double entry concept and the going concern concept. [4]

c) Micro - finance. [6]

Q8) a) Highlight any 8 tender conditions which affect the estimation of the
contractor’s cash flow management for raising the working capital, by
clearing mentioning the provisions made in each condition and considering
its effect on the cash flow requirements. [8]
b) Explain with diagrams, the Capital Asset Pricing Models (CAPM) studied
and used by the investors for financial analysis. [8]

l l l

[4960]- 13 3
Total No. of Questions : 8] SEAT No. :

P2092 [Total No. of Pages : 3

[4165] - 444
M.E. (Civil) (Construction & Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2002 and 2008 Course) (Sem. - II)
Time :4 Hours] [Max. Marks :100
Instructions to the candidates:
1) Attempt any three questions from Section - I and three questions from Section - II.
2) Answers to the two sections must be written in separate answer books.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, Mollier charts, electronic pocket
calculator and steam tables is allowed.
6) Assume suitable data, wherever necessary.

SECTION - I
Q1) a) With an example, explain how the various tender conditions in a contract
affect the construction project cash inflows and outflows and hence the
investment decision on whether to bid for a project or not. [10]
b) Define any 4 financial ratios and with practical examples, explain their
utility in financial management. [8]

Q2) Compare Ordinary Capital and Loan stocks on the following points in detail.[16]
a) Issue costs.
b) Servicing costs.
c) Obligation to pay interest.
d) Obligation to redeem capital / loan
e) Tax deductibility.
f) Effect on control and on freedom of action.

Q3) a) Prepare a balance sheet for a company based on the following data
i) Current liabilities Rs 10,00,000/-
ii) Loans and advances Rs 20,00,000/-
iii) Fixed Assets Rs 40,00,000/-
iv) Investments Rs 60,00,000/-
v) Current Assets Rs 15,00,000/-
vi) Reserves and Surplus Rs 1,25,00,000/-
What are uses of the balance sheet? Explain [6 + 2]
P.T.O.
 b) Discuss basic objectives of financial management and role of finance
manager on mega construction projects. [4]
c) Discuss role of “lenders engineer” on mega construction projects in
various phases of the project. [4]

Q4) a) The expected cash flows from 2 alternatives are as follows :-

Year Project A Rs in lakhs Project B Rs in lakhs
0 (200) (260)
1 (120) 120
2 (60) 40
3 (25) 50
4 (260) 60
5 460 80
6 600 100
For each alternative, determine
i) Pay - back period.
ii) NPV at 12% interest rate.
iii) IRR for Project ‘A’ (Approximate value)
Which investment alternative you would prefer and why? Justify. [12]
b) Explain the methodology adopted for the capital budgeting under risk.[4]
SECTION - II
Q5) Explain the following methods of capital budgeting stating their merits and
limitations. [18]
a) ARR.
b) NPV.
c) IRR
d) PI
Q6) Your company is considering an investment of Rs. 2 lakhs capital outlay
over a period of 5 years. The annual income before depreciation, but after
considering all other charges is as follows. [16]
Year Income (Rs)
1 1,00,000
2 1,00,000
3 80,000
4 80,000
5 40,000

[4165]-444 2
 After 5 years, the scrap value expected is Rs. 10,000/- . Depreciation is to be
considered at 20% per year on a straight line basis. Consider cost of capital
as 15%.
Determine
a) Pay back period.
b) Rate of return on average investment.
c) NPV for the proposal.

Q7) Explain the various methods by which the large investments were raised on
the konkan railway project. Discuss the problems faced and the solutions
envisaged. In your opinion was the project a case of financial / economic
success or failure? Justify. [10 + 4 + 2]

Q8) Explain the following with examples.

a) Cash flow cycle. [4]
b) Basic Accounting Principles. [5]
c) CIDC - ICRA grading. [3]
d) Effect of escalation on capital budgeting. [4]



[4165]-444 3
Total No. of Questions : 8] SEAT No. :

P3959 [Total No. of Pages : 3

[4860] - 13
M.E. (Civil) (Construction and Management)
PROJECT ECONOMICS & FINANCIAL MANAGEMENT
(2008 Pattern)

Time :4 Hours] [Max. Marks :100

Instructions to the candidates:
1) Answer any 3 questions from each section.
2) Figures to the right indicate full marks.

SECTION - I

Q1) Determine NPV(12) for the following Investment proposal and decide
whether it is worth to invest. [18]
Year Annual cash Inflows (Rs) Annual Cash Outflows (Rs)
1 10,00,000 75,00,000
2 20,00,000 10,00,000
3 45,00,000 20,00,000
4 60,00,000 5,00,000
5 40,00,000 30,00,000

Q2) For the data table given in question 1, if the expected IRR is at 8%, determine
the IRR generated based on minimum 3 trials, and decide whether it is
worth to invest, based on IRR concept. [16]

Q3) Compare following project alternatives based on the (PBP). [16]

Project A ® Initial Investment ® Rs 10 crores
Project B ® Initial Investment ® Rs 5 crores
Project C ® Initial Investment ® Rs 15 crores
Cash inflows of the 3 projects are as under : -

P.T.O.
 Year Project A Project B Project C
(Rs crores) (Rs Crores) Rs Crores
1 2 – –
2 3 2 1
3 3 3 2
4 3 3 3
5 2 1.5 5
6 1 0.5 7

Q4) For the data table given in problem (3) Determine the ARR for all the 3
projects and compare the proposals if the tax is to be considered at 15%
and depriciation is to be considered at 10%. [16]

SECTION - II

Q5) Compare and contrast between - [18]

a) Equity Shares – Preference Shares
b) Micro finance – Major Finance
c) Tax free bonds – Debenture Capital
d) Escrow Account – Conventional Account

Q6) Evaluate the combined portfolio risk and return characteristics for the
following options :- [16]
a) Portfolio of land investments, share market investments, Gold
investments
with W = 50 : 30 : 20
% Risk = 15 : 20 : 10
% Returns = 18 : 32 : 20
Also when the land investments increase by 10%, the gold market
falls by 5% whereas the shares market is unaffected.
b) Portfolio of construction, fixed deposits, Plant and Machinery
with W = 60 : 20 : 20
% Risk = 20 : 5 : 10
% Returns = 35 : 12 : 18
There is no corelation between the 3 investments. The investor has
decided to invest a total amount of 100 crores. Suggest with calculations,
in which portfolio should the investor invest and why?
[4860]-13 2
Q7) Elaborate on how standard deviation is determined for measuring the
financial risk of any investment. Also explain scenario analysis and
sensitivity analysis as financial risk evaluation tools. [8+4+4]

Q8) Discuss the following with examples :

a) Double - declining balance method of depriciation. [4]
b) Balance sheet contents. [4]
c) Financial Ratios-importance. [4]
d) Time value of money-Applications. [4]

kbkb

[4860]-13 3
Total No. of Questions : 8] SEAT No. :
P4654
[Total No. of Pages : 2
[4860] - 1006
M.E. (Civil) (Construction & Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2013 Credit Pattern)
Time : 3 Hours] [Max. Marks : 50
Instructions to the candidates:
1) Solve any 5 questions out of 8.
2) Neat diagrams must be drawn wherever necessary.
3) Each question carries 10 marks.
4) Assume suitable data wherever necessary.
5) Use of logarithmic tables, slide rule, electronic pocket calculator is allowed.

Q1) a) Discuss the contribution of the Infrastructure sector in the India GDP
over global economy? [5]
b) As a manager how you define the objectives of your firm and what
introductory perusal needed with suitable example? [5]

Q2) Write a short notes on [10]

a) Working capital
b) Working capital cycle
c) Means of finance
d) Profit and loss account statement

Q3) The cost of machine A and B are 56,225 Rs. each. Depreciation has been
charged on straight-line basic and estimated life of both machines is five
years. [10]
Net Income after Machine A (Rs) Machine B (Rs)
depreciation and taxes
1st Year 3,375 11,375
2nd Year 5,375 9,375
3rd Year 7,375 7,375
4th Year 9,375 5,375
5th Year 11,375 3,375

P.T.O.
 Find out
i) Average rate of return on A and B machines.
ii) Which machines is better from the point of view of payback period and
why?
iii) Calculate average rate of return when salvage value of machine A turns
out to be 3,000 and when B machine has zero salvage value.

Q4) a) Explain long term sources of finance, merits and demerits of equity shares.[5]

b) Describe preference share and its type with each feature? [5]

Q5) Discuss in detail the “Cash Budget” as a tool of planning. [10]

Q6) a) Discuss the actions taken by CIDC and its recommendations regarding
financing requirement of the construction sector. [5]

b) Describe ICRA rules and regulation. [5]

Q7) a) As a finance manager in a cement factory how you prepare balance sheet
with suitable example? [5]

b) Describe the role of Escrow account for PPP project. [5]

Q8) a) How BOT is effective model for financing in Dam project in India. [5]

b) Prepare check list for project appraisal for new contraction of Airport in
Pune. [5]

yyy

[4860] - 1006 2
Total No. of Questions : 8] SEAT No. :

P3420 [Total No. of Pages : 3

[4660]-13
M. E. (Civil) (Construction & Management)
PROJECT ECONOMICS AND FINANCIAL
MANAGEMENT
(2008 Pattern)
Time : 4 Hours] [Max. Marks : 100
Instructions to the candidates:
1) Answer any three questions from each section.
2) Answers to the two sections should be written in one book.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, Mollier charts, electronic pocket
calculator and steam tables is allowed.
6) Assume suitable data, if necessary.

SECTION - I

Q1) Select between the 2 project alternatives based on the PBP, NPV at 12% and
Expected IRR at 14%, based on the following cash flows. [18]

Year A B
Cash Cash Cash Cash
Inflow Outflow Inflow Outflow
Rs(Lakhs) Rs (Lakhs) Rs(Lakhs) Rs(Lakhs)
0 - 500 - 400
1 300 - 100 -
2 200 - 150 50
3 100 50 200 -
4 50 - 125 100
5 50 100 75 -

P.T.O.
Q2) A construction equipment is frocured for an amount of Rs. 50,00,000. Useful
life is 5 years. Salvage value is 10%. Interest rate is 5.5% on the sinking fund.
Determine the annual deprication for each year by the following methods.

a) Modified straight line method as recommended by the plant and

machinery committee of India. [6]

b) Sinking fund method. [6]

c) Straight line method. [4]

Q3) Draw the cashflow cycle for the working capital needed on a major construction
project and explain the different formulae needed for estimation of cash for
materials, labour, equipment and inventory. [4 + 12 = 16]

Q4) Explain in detail:

a) Economic and Financial feasibility of any project. [6]

b) Profit and loss Account Statement. [4]

c) Effect of risk, inflation on cash flows. [6]

SECTION - II

Q5) With examples from construction sector, Explain

a) JV's

b) SPV's

c) Mergers

d) Consortium

Discuss advantages and limitations of each [18]

[4660]-13 -2-
Q6) A portfolio consists of

a) 3 assets in the proportion of 50:30:20 as A:B:C. If the risk-return

characteristics are as given in the table, determine the combined risk as
well as the return characteristic of the portfolio: [10]

Asset Risk Return

A 20% 16%

B 14% 18%

C 12% 12%

b) Explain the concepts of: [3 + 3 = 6]

i) Micro-finance

ii) Escrow account

Q7) Discuss merits and demerits of the following types of finance.[4 + 4 + 4 + 4 = 16]

a) Preference Shares

b) Debentures

c) Mutual funds

d) Cash Credit

Q8) Define correctly any 8 different and important ratios used in financial status
reporting and management of company's assets/liabilities and explain the utility
of each ratio. [16]

ddd

[4660]-13 -3-
Total No. of Questions : 8] SEAT No. :

P1665 [Total No. of Pages : 3

[4265] - 413
M.E. (Civil) (Const. & Mgmt.)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2002 and 2008 Course) (Semester - II)
Time : 4 Hours] [Max. Marks :100
Instructions to the candidates:
1) Attempt any three questions from Section - I and three questions from Section - II.
2) Answers to the two sections should be written in separate answer books.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, Mollier charts, electronic pocket
calculator and steam tables is allowed.
6) Assume suitable data, wherever necessary.

SECTION - I

Q1) Evaluate the following options using any 3 investment evaluation criteria.[18]
Option I Option II
Year Cash Inflow Cash Outflow Cash Inflow Cash Outflow
(Rs.) Lakhs (Rs.) Lakhs (Rs.) Lakhs (Rs.) Lakhs
1 40 30 - 60
2 30 20 - 40
3 20 10 - 30
4 10 5 - 20
5 5 3 80 -
6 3 2 60 -
7 2 1 40 -
8 1 - 30 -
9 0.5 - 10 -
Consider cost of capital at 10%. Explain which investment option you would
prefer and why?

Q2) a) Explain procedure of capital budgeting under following conditions :[8]

i) Inflation ii) Market uncertainty
b) Explain how the working capital requirements are determined by a
contractors organisation executing construction works for a client. [8]

P.T.O.
Q3) Differentiate between :
a) Ordinary shares and preference shares. [4]
b) Mutual funds and debentures. [4]
c) Debt financing and equity financing. [4]
d) Cash credit and discounted bills. [4]

Q4) a) What is balance sheet? How is it prepared? What is its use? [6]
b) Prepare balance sheet for the construction organisation based on the
following data : [10]
i) Current Assets - Rs 20,00,000 /-
ii) Current Liabilities - Rs 15,00,000 /-
iii) Reserves & Surplus - Rs 1,25,00,000 /-
iv) Fixed Assets - Rs 40,00,000 /-
v) Loans & Advances - Rs 20,00,000 /-
vi) Investments - Rs 60,00,000 /-
vii) Inventories - Rs 30,00,000 /-
viii) Taxes to be paid - Rs 25,00,000 /-
ix) Interests on Capital - Rs 5,00,000 /-

SECTION - II

Q5) Your company is considering an investment of Rs. 10 lakhs capital outlay

over a period of 5 years. The annual income before depreciation, but after
considering all other charges is as follows : [18]
Year Income (Rs.)
1 5,00,000
2 6,00,000
3 4,00,000
4 3,00,000
5 2,00,000
Scrap value expected is 5%. Consider depriciation based on sinking fund
method with an annual interest of 4.5% on the sinking fund. Consider cost of
capital at 14%.
Determine :
i) Payback period.
ii) Modified payback period.
iii) ARR on average investment.
iv) IRR
v) NPV at 12%.

[4265]-413 2
Q6) a) Explain with examples from construction organisations : [8]
i) Consortium ii) Acquisition
iii) Merger iv) JV
b) Define any 8 financial ratios correctly. [8]

Q7) a) Explain various objectives of financial management and explain how

the finance manager has a herculean task in order to achieve these
objectives. What qualities he should possess and what role he should
play? Discuss [8]
b) Explain the “cash flow cycle” with a flow diagram. [4]
c) Enlist and explain any 4 basic accounting principles. [4]

Q8) Explain the following : [16]

a) Micro finance and its relevance in social equity.
b) Role of Lender’s engineer on construction projects.
c) Tender conditions and financial performance.
d) Risk and Return characteristics of portfolios.

zzz

[4265]-413 3
Total No. of Questions : 8] [Total No. of Pages : 3
[3965]-413
P1697
M.E. (Civil) (Const. & Mgmt.)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
( 2002 & 2008 Course) (501109) (Sem. - II)
Time : 4 Hours] [Max. Marks : 100
Instructions to the candidates:
1) Answer any 3 questions from each section.
2) Answers to the two sections should be written in separate books.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, Mollier charts, electronic pocket calculator and
steam tables is allowed.
6) Assume suitable data, if necessary.

SECTION - I
Q1) a) What constitutes financial management? What is the role of the finance
manager? Explain in detail, role of lender’s engineer, associated with any
major civil - engineering project. [12]
b) Explain the utility of the (PBP) with relevant example from construction
sector. [6]

Q2) a) Explain the overall methodology of capital budgeting under risk, as applied
to construction projects with appropriate examples. [4]
b) A particular project has the following expected cash flows and probability
values as given below.
Year Cash Cash Probability
Outflow Inflow
(Rs) CO (Rs) CI p
1 2,00,000 – 0.90
2 4,00,000 – 0.82
3 6,00,000 8,00,000 0.65
4 3,00,000 10,00,000 0.55
5 2,50,000 7,00,000 0.70
6 1,00,000 4,00,000 0.30
Based on NPV at 14% decide whether the proposal is worthy of
investment. Why? [12]

P.T.O.
Q3) a) Innumerate the various ways in which the funds were raised from
conception to completion of the Konkan Railway project. Discuss the
hurdles faced and the solutions determined thereof. In your opinion, is
the case study an example of financial success or a financial failure?
Justify. [12]
b) Explain the terms “cost of finance” and “opportunity costs” with
examples. [4]

Q4) a) Explain the utility of an Income - Expenditure statement to a construction

organisation with an example. [4]
b) Prepare a balance sheet based on the following data for a contractors
organisation. [12]
i) Principal amounts to be paid back to the
share-holders – Rs. 6,556,378

ii) Amounts invested in shares – Rs. 7,144,318

iii) Value of land procured
iv) Yearly bonus payable
to share holders
v) Security deposit paid
vi) Personal loans taken
vii) R.A bills to be paid to
Sub - contractors
viii) Interest charges
ix) Machinery procured
x) Bills certified by the consultants
xi) Bills pending of various Suppliers
xii) Fixed deposits
xiii) Debtors
xiv) Provisions
xv) Amount to be paid for
sundry items
xvi) TDS to be paid
xvii) Tax deducted at source
xviii)WIP inventory
xix) Corporation charges to be paid
xx) Liquidity
– Rs. 3,791,893
– Rs. 9,000,000
– Rs. 1,91,086
– Rs. 4,398,581
– Rs. 1,206,916
– Rs. 2,029,544
– Rs. 2,88,799
– Rs. 2,81,937
– Rs. 11,856,558
– Rs. 1,924,816
– Rs.7,544,952
– Rs. 11,07,602
– Rs. 18,05,349
– Rs. 73,393
– Rs. 7,73,455
– Rs. 4,36,425
– Rs. 4,66,833
– Rs. 1,23,472.

[3965]-413 2
 SECTION - II

Q5) Discuss merits, de-merits of the various sources of generating equity as well
as debt capital, after explaining each source in brief. [18]

Q6) Explain importance of any 8 financial ratios used in financial analysis with an
example. [16]

Q7) a) Explain the various principles of financial accounting with an example

each. [12]
b) Draw a typical cash flow diagram associated with any construction project.
[4]

Q8) Explain with examples.

a) Impact of various tender conditions on financial planning and
management. [8]
b) S curves and their utility in financial management. [4]
c) Estimation of working capital needed for a major civil Engineering project.
[4]

]]]

[3965]-413 3
Total No. of Questions : 8] SEAT No. :
P4594
[Total No. of Pages : 2
[4760] - 1006
M.E. (Civil) (Construction Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2013 Pattern)
Time : 3 Hours] [Max. Marks : 50
Instructions to the candidates:
1) Each question carries 10 marks.
2) Solve any 5 questions out of 8.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, electronic pocket calculator and statistical
tables is allowed.
6) Assume suitable data, if necessary.

Q1) a) What are the functions of cash management? [5]

b) Explain the status of present economy in the context of smart city
development in India and its importance in Infrastructure sector. [5]

Q2) a) Explain how working capital requirements are determined by a

contractor’s organization executing construction work for client. [7]
b) Discuss the strategy for effective cash management? [3]

Q3) a) The details of production costs and revenues of a project are as under
Total Cost Rs. 65,000
Fixed cost Rs.25,000
Sales (8000 Units) Rs.80,000
Find the break Even point in terms of number of units. What should be
the output if the profit desired is Rs. 20,000? [7]
b) Explain objectives of financial appraisal. [3]

P.T.O.
Q4) a) Write the importance of recent trend and in the issue of debentures. [4]

b) A construction company is considering an investment proposal, involving

an initial cash outlay of Rs. 45 lakh. The proposal has an expected life of
7 years and zero salvage value. At a required rate of return of 12%, the
proposal has a profitability index of 1.182. Calculate the annual cash
inflows. [6]

Q5) a) What are the objectives or functions of budgeting, budgetary control?[5]

b) Explain the stages of venture capital planning. [5]

Q6) a) Explain stages of venture capital planning [6]

b) Write a short note on budget manual [4]

Q7) Define any 5 ratios useful in financial planning, analysis, control and explain
their utility with the examples [10]

Q8) With reference to Smart city development project explain [10]

a) Various means of finance which were used for completion of entire project
from its origin.
b) Financial management at each stage of project

yyy

[4760] - 1006 2
Total No. of Questions : 8] SEAT No. :

P4551 [Total No. of Pages : 3

[4760] - 13
M.E. (Civil) (Construction and Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2008 Pattern)

Time : 4 Hours] [Max. Marks : 100

Instructions to the candidates:
1) Solve any 3 questions from each section.
2) Q. No. 1 & 5 are compulsory.
3) Solve any two from remaining in each section.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule and electronic pocket calculator is
allowed.
6) Assume suitable data, if necessary.

SECTION - I
Q1) a) Dealing with the objectives of F.M. explain in detail.
i) Profit/Earning per share (EPS) maximization approach. [5]
ii) Wealth maximization approach. [5]
Give suitable examples.
b) Explain role of finance manager related to [8]
i) Investment Decision
ii) Dividend policy decisions
iii) Working capital management
iv) Attainment of financial objectives

Q2) As a finance manager how you assess/measure the risk associated with an
asset from both behavioural and a quantitative/Statistical point of view. Give
the required statistical formulae and suitable examples for the techniques
considered. [16]

P.T.O.
Q3) a) Write short notes on : [8]

i) Portfolio expected return

ii) Portfolio Risk (Two Asset portfolio)

b) With the help of neat sketch, discuss [8]

i) Perfect positive correction

ii) Perfect negative correlation

iii) Zero correlation

Q4) a) Discuss the elements of Capital Asset Pricing Model (CAPM). [6]

b) Discuss the following with respect to one step optimization technique

for portfolio selection. [6]

i) Efficient frontier

ii) Global maximum return portfolio

iii) Global minimum variance portfolio

iv) Efficient portfolios

v) Dominated portfolios

vi) CML

c) Define the terms. [4]

i) Systematic Risk

ii) Non - Systematic Risk

SECTION - II

Q5) a) Discuss in detail the "Cash Budget" as a tool of planning. [8]

b) Giving the definitions of Gross Working Capital and Net Working Capital
(NWC), discuss the effect of change in level of current assets and current
liabilities on the profitability risk trade-off. [10]

[4760] - 13 2
Q6) a) A factory producing only one item, which it sells for Rs. 12.50 per unit,
has a fixed cost equal to Rs. 60,000 and variable cost Rs. 7.50 per unit.
Find out [6]
i) The number of units to be produced to break-even.
ii) Number of units to be produced to earn a profit of Rs. 12,000/-.
iii) The profit, if 25,000 units are produced and sold.

b) In depreciation Enlist. [4]

i) The factors affecting the periodic depreciation

ii) Reasons for depreciation.

iii) Methods of depreciation (explain any one)

c) Differentiate between cost control and cost reduction. [3]

d) State the characteristics of Trade Cycle. [3]

Q7) a) Discuss the actions taken by CIDC and its recommendations regarding
financing requirement of the construction sector. [8]

b) How is the "Working Capital in Construction Industry" estimated? Explain

in detail. [8]

Q8) a) Discuss the Lender's perspective in assessment of Risk of a big

construction project. Discuss role of Lender's Engineer. [12]

b) Discuss in detail with factual figures the management of funds for Konkan
Railway Project or any similar project. [4]

===

[4760] - 13 3
Total No. of Questions : 8] SEAT No. :
P4594
[Total No. of Pages : 2
[4760] - 1006
M.E. (Civil) (Construction Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2013 Pattern)
Time : 3 Hours] [Max. Marks : 50
Instructions to the candidates:
1) Each question carries 10 marks.
2) Solve any 5 questions out of 8.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, electronic pocket calculator and statistical
tables is allowed.
6) Assume suitable data, if necessary.

Q1) a) What are the functions of cash management? [5]

b) Explain the status of present economy in the context of smart city
development in India and its importance in Infrastructure sector. [5]

Q2) a) Explain how working capital requirements are determined by a

contractor’s organization executing construction work for client. [7]
b) Discuss the strategy for effective cash management? [3]

Q3) a) The details of production costs and revenues of a project are as under
Total Cost Rs. 65,000
Fixed cost Rs.25,000
Sales (8000 Units) Rs.80,000
Find the break Even point in terms of number of units. What should be
the output if the profit desired is Rs. 20,000? [7]
b) Explain objectives of financial appraisal. [3]

P.T.O.
Q4) a) Write the importance of recent trend and in the issue of debentures. [4]

b) A construction company is considering an investment proposal, involving

an initial cash outlay of Rs. 45 lakh. The proposal has an expected life of
7 years and zero salvage value. At a required rate of return of 12%, the
proposal has a profitability index of 1.182. Calculate the annual cash
inflows. [6]

Q5) a) What are the objectives or functions of budgeting, budgetary control?[5]

b) Explain the stages of venture capital planning. [5]

Q6) a) Explain stages of venture capital planning [6]

b) Write a short note on budget manual [4]

Q7) Define any 5 ratios useful in financial planning, analysis, control and explain
their utility with the examples [10]

Q8) With reference to Smart city development project explain [10]

a) Various means of finance which were used for completion of entire project
from its origin.
b) Financial management at each stage of project

yyy

[4760] - 1006 2
Total No. of Questions : 8] [Total No. of Pages : 2

P1279
[4065]-413
M.E. (Civil) (Const. & Mgmt.)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(Sem. - II) (Common to Old & New) (501109)
Time : 4 Hours] [Max. Marks : 100
Instructions to the candidates:
1) Answer 3 questions from Section - I and 3 questions from Section - II.
2) Answers to the two sections should be written in separate books.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Assume suitable data, if necessary.

SECTION - I
Q1) Explain any 2 traditional and any 2 modern methods of capital budgeting and
discuss their merits and de-merits. [18]

Q2) Determine NPV (12) and NPV (16) for the following cash flows and decide
a) Whether you should invest in the proposal.
b) Which of the two interest rates you would adopt, if you have to invest in
the proposal? Why? [16]

Year Cash Inflow Cash Out flow

(Rs) (Rs)
1 3,00,000 10,00,000
2 4,00,000 15,00,000
3 10,00,000 17,00,000
4 12,00,000 6,00,000
5 15,00,000 16,00,000
6 22,00,000 5,00,000
7 25,00,000 25,00,000
8 16,00,000 3,00,000
9 12,00,000 2,00,000
10 6,00,000 1,00,000

Q3) a) Portfolio A has a risk of 12% and a return of 16%, wher as portfolio B
has a risk and return both of 10%. which port folio would you invest in
and why? Justify. Make suitable assumptions as necessary. [10]
b) Explain the cash flow cycle involving current assets and current liabilities
with an example. [6]

P.T.O.
Q4) Explain the following :-
a) Methodology to account for inflation effect and risk effect during capital
budgeting. [8]
b) Micro - finance [4]
c) CRISIL rating [4]

SECTION - II
Q5) With any case study, explain how various fund generation mechanisms are
required to be used in order to generate funds for a major project estimated at
a cost more than 2000 crores. [18]

Q6) a) Differentiate between financial analysis and economic analysis with an

example. [4]
b) In case of SION flyovers, explain
i) How various costs were determined? [4]
ii) How cash inflows were determined? [4]
iii) How economic appraisal was conducted? [2]
iv) What were the results and what was the appraisal decision based
on the results? [2]

Q7) Explain following documents with examples

a) From construction projects. [8]
i) Balance sheet.
ii) Profit and loss statement.
b) Explain the procedure for determining the working capital requirements
for any contractor executing construction projects. [8]

Q8) Explain the following :- [16]

a) Acquisitions and mergers.
b) Effective use of different financial indices.
c) Role of lender’s engineer.
d) Method of keeping construction cost accounts.

tttt

[4065] - 413 2
Total No. of Questions : 8] SEAT No. :

P4551 [Total No. of Pages : 3

[4760] - 13
M.E. (Civil) (Construction and Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2008 Pattern)

Time : 4 Hours] [Max. Marks : 100

Instructions to the candidates:
1) Solve any 3 questions from each section.
2) Q. No. 1 & 5 are compulsory.
3) Solve any two from remaining in each section.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule and electronic pocket calculator is
allowed.
6) Assume suitable data, if necessary.

SECTION - I
Q1) a) Dealing with the objectives of F.M. explain in detail.
i) Profit/Earning per share (EPS) maximization approach. [5]
ii) Wealth maximization approach. [5]
Give suitable examples.
b) Explain role of finance manager related to [8]
i) Investment Decision
ii) Dividend policy decisions
iii) Working capital management
iv) Attainment of financial objectives

Q2) As a finance manager how you assess/measure the risk associated with an
asset from both behavioural and a quantitative/Statistical point of view. Give
the required statistical formulae and suitable examples for the techniques
considered. [16]

P.T.O.
Q3) a) Write short notes on : [8]

i) Portfolio expected return

ii) Portfolio Risk (Two Asset portfolio)

b) With the help of neat sketch, discuss [8]

i) Perfect positive correction

ii) Perfect negative correlation

iii) Zero correlation

Q4) a) Discuss the elements of Capital Asset Pricing Model (CAPM). [6]

b) Discuss the following with respect to one step optimization technique

for portfolio selection. [6]

i) Efficient frontier

ii) Global maximum return portfolio

iii) Global minimum variance portfolio

iv) Efficient portfolios

v) Dominated portfolios

vi) CML

c) Define the terms. [4]

i) Systematic Risk

ii) Non - Systematic Risk

SECTION - II

Q5) a) Discuss in detail the "Cash Budget" as a tool of planning. [8]

b) Giving the definitions of Gross Working Capital and Net Working Capital
(NWC), discuss the effect of change in level of current assets and current
liabilities on the profitability risk trade-off. [10]

[4760] - 13 2
Q6) a) A factory producing only one item, which it sells for Rs. 12.50 per unit,
has a fixed cost equal to Rs. 60,000 and variable cost Rs. 7.50 per unit.
Find out [6]
i) The number of units to be produced to break-even.
ii) Number of units to be produced to earn a profit of Rs. 12,000/-.
iii) The profit, if 25,000 units are produced and sold.

b) In depreciation Enlist. [4]

i) The factors affecting the periodic depreciation

ii) Reasons for depreciation.

iii) Methods of depreciation (explain any one)

c) Differentiate between cost control and cost reduction. [3]

d) State the characteristics of Trade Cycle. [3]

Q7) a) Discuss the actions taken by CIDC and its recommendations regarding
financing requirement of the construction sector. [8]

b) How is the "Working Capital in Construction Industry" estimated? Explain

in detail. [8]

Q8) a) Discuss the Lender's perspective in assessment of Risk of a big

construction project. Discuss role of Lender's Engineer. [12]

b) Discuss in detail with factual figures the management of funds for Konkan
Railway Project or any similar project. [4]

[4760] - 13 3
Total No. of Questions : 8] SEAT No. :

P3412 [Total No. of Pages : 3

[4660] - 1007
M.E. (Civil) (Construction Management)
PROJECT ECONOMICS AND FINANCIAL MANAGEMENT
(2013 Pattern)

Time : 3 Hours] [Max. Marks : 50

Instructions to the candidates:-
1) Each question carries 10 marks.
2) Solve any 5 questions out of 8.
3) Neat diagrams must be drawn wherever necessary.
4) Figures to the right indicate full marks.
5) Use of logarithmic tables, slide rule, electronic pocket calculator and
statistical tables is allowed.
6) Assume suitable data, if necessary.

Q1) a) Explain the status of present economy and its importance in Infrastructure
sector. [5]
b) What is working capital? State the significance of working capital
management in construction management. [5]

Q2) a) Two projects are given below, compare the profitability of projects. [7]
Item Project A Project B
Initial value of investment Rs. 5,00,000/- Rs. 11,00,000/-
(Cash outflow)
Present value of cash inflows Rs. 6,00,000/- Rs. 12,50,000/-
Net present value Rs. 1,00,000/- Rs. 1,50,000/-
b) What is the role of lenders Engineer? [3]

P.T.O.
Q3) Explain briefly payback period method and Average rate of return method.
Compare them with NPV method, IRR method and BCR method and also
comment on the choice of each method. [10]

Q4) With reference to construction company prepare Profit and Loss A/c
statement. Assume suitable data of construction company. [10]

Q5) Explain in detail main sources of construction project finance. [10]

Q6) Explain the following :

a) Venture Capital. [3]

b) Corporate tax planning. [3]

c) Cost planning and control during design and construction. [4]

Q7) Namo Cement Ltd. Company's Balance Sheet as at the end of just concluded
financial year and the previous year are as under [10]

Balance sheet as at the end of March (Rs. crores)

Liabilities 2013 2014 Assets 2013 2014

Equity shares 10 10 Fixed Assets 15 18
Excluding Depreciation
Reserves & surplus 4 4.4 Stock 7.6 13.2
Securities loans 8 9 Debtors 6 5.4
Bank overdraft 6 8 Cash in hand 2.4 0.4
Creditors 3 4
Unsecured loans from - 1.6
promoters
31 37 31 37

[4660] - 1007 2
 Additional information about company are given below : (Rs. crores)

2013 2014

Sales 40 35

Profit after tax 3 1.7

Assess the financial efficiency of the company.

Q8) With reference to Mass Transit System Explain. [10]

a) Various means of finance which were used for completion of entire project
from its inception.

b) Financial ups and downs are tackled and justification with respect to
success or failure of the project.

yyy

[4660] - 1007 3