Practical on
Skill Development
For 3rd Semester RCU Students
Syllabus
• Unit 1: PRACTICALS ON CORPORATE ACCOUNTING-I:
• Visit any company/stock broking agency and collect share application form and
fill the contents.
• List out the SEBI guidelines for underwriting of shares and debentures.
• Collect the financial statements of a company, prepared as per Schedule-III of
Companies Act 2013, and analyze.
• Collect the balance sheet of a company and calculate value of share using
intrinsic value method
• Calculate the maximum managerial remuneration payable with imaginary
figures.
Syllabus
• Unit 2: PRACTICALS ON ENTREPRENEURSHIP DEVELOPMENT:
• Visit to small-scale industry and prepare a SWOC analysis report.
• Draft the success stories of business entrepreneurs in your region.
• List out at least ten successful entrepreneurs in Karnataka.
• List out the problems of rural entrepreneurs
• List out the government support schemes for the entrepreneurship.
Syllabus
• Unit 3: PRACTICALS ON INNOVATIVE BANKING:
• Collect and fill the application form for opening a Bank Account.
• Draw a specimen of Cheque with MICR technology
• Draw the specimen of Debit or Credit Card
• Collect and fill the form of RTGS/NEFT
• Study of any two e-wallet organizations
Syllabus
• Unit 4: PRACTICALS ON QUANTITATIVE ANALYSIS FOR BUSINESS DECISIONS-I:
• List out the quantitative techniques used for decision making.
• Collect the marks scored by 50 students in a subject and calculate
mean/median/mode
• Collect age statistics of 10 newly married couples and calculate correlation.
• Collect the sales/production data for five years and forecast sales/production
for the future.
• Narrate the process of testing and quality control in textile manufacturing.
Unit 1: Practical on Corporate Accounting
SEBI Guidelines on Underwriters
• Background:
• Company has to go through Capital Subscription Stage to register as Public Ltd.
• For this, 90% of issued capital has to be subscribed by public.
• If undersubscribed, company has to send back all money collected through
application with interest to all the applicants.
• If not, appoint an underwriter who will subscribe the capital. For this, they take
certain commission from company.
• Underwriters are the agents who subscribe the undersubscribed shares.
• Definition: “An underwriter is someone whose job involves agreeing to provide
money for a particular activity or to pay for any losses that are made.”
Underwriting:
• Underwriting can be done fully or partly.
• It can be joint or syndicated activity.
• Sub-underwriting is also allowed.
• Types of Underwriters for Security:
• Institutional Underwriters: UTI, LIC, IDBI, ICICI, SBI Capital etc.
• Non-institutional Underwriters: Brokers, NBFC, Individuals with high net worth
etc.
• Other types: Insurance Underwriters, Loan Underwriters etc.
SEBI Guidelines:
• Underwriting is not mandatory now and the issuers have the option of deciding
whether the issue is to be underwritten or not.
• Number of underwriters would also be decided by the issuers and obtain
permission from SEBI.
• The lead manager(s) must satisfy themselves about the net worth of the
underwriters and the outstanding commitment and disclose the same to SEBI. A
statement to this effect should be incorporated in the prospectus.
• The underwriting agreement may be filed to SEBI.
• Intimation to Stock Exchange must be done.
• 25% of each class of securities must be offered to the public and in the remaining
75%, the following method of firm allotment could be adopted.
SEBI Guidelines:
• Commission must not exceed 2.5% of the issue size.
• Commission should not exceed 5% of Shares and 2.5% of Debentures.
• Other than commission, underwriters should not make secret profits.
• Underwriting obligations should not exceed, at any time, 20 times of his net
worth.
Schedule III of
Companies Act, 2013
Intrinsic Value Method
• It is the assets value of the firm calculated within the organisation.
Formula:
Net Worth of Assets = Total Assets – Outside Liabilities
Managerial Remuneration:
• Remuneration should be strictly subject to the provisions of Section 197 of the
Companies Act, 2013 and Schedule V.
• Section 197(4) provides, remuneration should be decided by Articles or by
resolution.
• Maximum remuneration payable is = 11% of Net Profit of that FY.
• For this purpose, Net profit is to be calculated as per manner said in Sec 198.
• Private limited companies are out of the purview of this section. Meaning, they
can pay any amount as remuneration.
Managerial Remuneration: Individual
Limit
• In case of Managing Director, Whole-time Director or Manager:
• Upto 5% of the net profits of the company, if there is only one such director.
• But if there is more than one such director, remuneration shall not exceed 10% of
the net profits for all of them put together.
• In case of directors who are neither Managing Director nor Whole-time Director:
• Upto 1% of the net profits, if there is a managing director or wholetime or
manager.
• But upto 3% of the net profits if there is no Managing Director or Whole-time
Director or Manager.
• By resolution, this limit can be extended subject to provisions laid by Articles.
• Above limits are exclusive of Sitting Fees.
Unit 2: Entrepreneurship
Development
• Unit 2: PRACTICALS ON ENTREPRENEURSHIP DEVELOPMENT:
• Visit to small-scale industry and prepare a SWOC analysis report.
• Draft the success stories of business entrepreneurs in your region.
• List out at least ten successful entrepreneurs in Karnataka.
• List out the problems of rural entrepreneurs
• List out the government support schemes for the entrepreneurship.
SWOC of Small Business
• Strength:
• Large assistance from Government.
• Weaknesses:
• Marketing, Know-how
• Opportunities:
• Preferred first by the Government
• Challenges:
• Competition, Loan
Problems of Rural Entrepreneurs:
• Financial problems: Rural entrepreneurship is largely found to suffer from financial
problems.
• Lack of technological know-how
• Lack of awareness
• Prone to salaried employment
• Poor infrastructure facilities
• Low-risk bearing capacity
• Low purchasing power of the people
• Competition
Government Support Schemes
• Atal Incubation Centre (AIC)
• MSME Market Development Assistance
• The Women Entrepreneurship Platform (WEP)
• The National Minorities Development & Finance Corporation (NMDFC) scheme
• Start-up India
• e-Biz Portal
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
• NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)
• Dairy Processing and Infrastructure Development Fund (DIDF)
Innovative Banking
• Unit 3: PRACTICALS ON INNOVATIVE BANKING:
• Collect and fill the application form for opening a Bank Account.
• Draw a specimen of Cheque with MICR technology
• Draw the specimen of Debit or Credit Card
• Collect and fill the form of RTGS/NEFT
• Study of any two e-wallet organizations
Cheque with MICR
Debit Card
E – Wallet
E – Wallet Process
Unit 4: Quantitative Analysis
• Unit 4: PRACTICALS ON QUANTITATIVE ANALYSIS FOR BUSINESS DECISIONS-I:
• List out the quantitative techniques used for decision making.
• Collect the marks scored by 50 students in a subject and calculate
mean/median/mode
• Collect age statistics of 10 newly married couples and calculate correlation.
• Collect the sales/production data for five years and forecast sales/production
for the future.
• Narrate the process of testing and quality control in textile manufacturing.
Quantitative Analysis Techniques:
• Mean
• Median
• Mode
• Average
• Standard Deviation
• Linear Programming
• Regression Analysis
• Correlation
• Trend Analysis for Sales/ Production etc.
