NMIMS Sem 4 June 2026 Finance Assignments

Investment Banking

Q1. A family-owned conglomerate with diversified holdings has partnered with a leading investment bank to develop a multigenerational wealth plan. Their needs include succession planning, global tax efficiency, and access to exclusive investment opportunities. The bank’s wealth management division must create a solution tailored to each generation, while its private banking unit ensures bespoke credit and estate planning services. The goal is to preserve and grow the family’s wealth across generations and regions. Explain how the investment bank should apply its wealth management and private banking models to address the family’s diverse objectives. What strategies and services should be employed to ensure a seamless transfer and growth of wealth from one generation to the next?

Q2 (A). AgroCore Ltd., an agricultural input supplier, is experiencing cash flow pressures and seeks to restructure by selling non-core assets and entering a leveraged buyout (LBO) led by its current executives and a private equity firm. The LBO would require using much of the company’s tangible assets as collateral for substantial debt, while selling divisions could generate immediate liquidity but reduce operational diversity. Executives cite the LBO’s potential for streamlined management and higher returns, while critics warn of increased financial risk and reduced strategic flexibility in the highly cyclical agriculture sector. Assess the financial and strategic implications of an LBO versus asset sales as restructuring options for AgroCore Ltd. Based on your evaluation, which pathway would you advise the board to pursue to maximize long-term value while mitigating risk, and why?

Q2 (B). A major multinational automotive company has historically relied on issuing high-grade corporate bonds in domestic and European markets. Now, to accelerate investments in electric vehicles and diversify financial risk, its treasury team proposes launching a mix of foreign bonds (Yankee Bonds and Bulldog Bonds) and entering the global derivatives market for hedging. Stakeholders are concerned about greater exposure to currency fluctuations and unfamiliar legal frameworks, but also see potential for improved funding diversification. Assess whether the shift to issuing foreign bonds and using derivatives represents a strategically sound evolution in the company’s global financial policy. Justify your evaluation by considering diversification benefits, exchange rate risks, regulatory challenges, and the company’s long-term funding needs.

International Finance

Q1. During a global financial crisis, a group of emerging economies experiences severe foreign exchange shortages, and declining investor confidence. The IMF offers a large-scale SDR (Special Drawing Rights) allocation and recommends the use of SDRs to bolster reserves and stabilize the currency. Finance ministers in these countries, however, are uncertain about how to deploy SDRs within the limits of domestic law and IMF guidelines to support fiscal budgets without triggering further economic imbalances. Using your understanding of SDR mechanisms, how should finance leaders in emerging economies strategically apply their SDR allocations to promote macroeconomic sustainability as Paper Gold?

Q2 (A). Mr. Rajiv Mehta, a seasoned treasury manager at a Mumbai-based multinational corporation, was closely monitoring global interest rate movements in early 2025. He observed that the Reserve Bank of India (RBI) had maintained lending rates at 9% per annum, reflecting the domestic monetary tightening cycle, while the US Federal Reserve had significantly eased its stance, bringing rates down to a mere 3% per annum. The prevailing spot exchange rate in the forex market stood at Rs.94 per US Dollar (USD). Sensing a classic interest rate differential play, Rajiv proposed to his CFO that the company could exploit this gap by borrowing USD 1,00,000 from the US money market at the cheaper rate of 3% per annum and simultaneously deploying those funds in Indian money markets at the higher yield of 9% per annum. The borrowed dollars would be converted at the current spot rate before being invested in India. From International Finance Perspective, kindly compute the resulting gain arising purely from the Interest Rate Parity Principle.

Q2 (B). It would be worthwhile to explore and elaborate upon the concept of Debit Entries as recorded within the Balance of Payments (BoP) framework, with particular attention to how such entries are systematically accounted for across the various components of the BoP structure. It may also be examined as to what the underlying paradigm and genesis of Debit Entries w.r.t. Current Account?

Corporate Tax Planning

Q1. A multinational pharmaceutical company, Medix India Pvt. Ltd., is headquartered in London but has substantial operations in both India and Southeast Asia. The company’s board meets regularly in Mumbai to strategize and make decisions impacting its global business. In the financial year 2023-24, Medix India Pvt. Ltd. earned profits from Indian manufacturing activities, investment income from overseas subsidiaries, and a significant royalty from a partnership in Singapore. The finance team is uncertain about how to determine the company’s residential status for tax purposes and its impact on the scope of taxable income, especially with respect to India’s Income Tax Act, 1961 and the concept of POEM (Place of Effective Management). Applying the relevant provisions of the Income Tax Act, 1961, how should Medix India Pvt. Ltd. determine its residential status in India? Based on your assessment, explain what income components will be taxable in India for 2023-24, particularly considering the company’s global operations and board management structure.

Q2 (A). An individual, neither an Indian citizen nor a Person of Indian Origin (PIO), visits India multiple times as a consultant. His visits in the previous five years are as follows: FY 2019-20: 72 days, FY 2020-21: 112 days, FY 2021-22: 87 days, FY 2022-23: 130 days, FY 2023-24: 100 days, FY 2024-25: 75 days. In FY 2024-25, he receives the following incomes: Consulting Fee for services in India: Rs.15,00,000 (Credited to UK account); Foreign interest earned in UK: Rs.4,00,000 (Credited to India account); Dividends from Indian company: Rs.2,00,000 (Paid in UK account); Rental income from flat in Mumbai: Rs.9,00,000 (Credited in India). Determine, with clear application of the multi-year day-count tests, his residential status for FY 2024-25 and the Indian taxable income out of the above items, citing relevant principles for each source.

Q2 (B). A senior manager in a manufacturing MNC is posted to the company’s UK subsidiary and receives a salary package comprising basic pay, a significant foreign allowance, rent-free accommodation, and school fee reimbursements. Upon repatriation to India, questions arise about taxability of overseas perquisites and allowances, available exemptions under Indian tax law, and the risk of double taxation. A tax consultant warns that misclassification could either lead to excess tax or non-compliance with Indian or international tax authorities. The global HR director seeks your evaluation to inform global assignment compensation policies. Evaluate how international assignment compensation structures should be designed for optimal tax treatment under Indian tax law. Critique the risks of misclassifying allowances and perquisites, consider potential double taxation challenges, and justify measures needed to ensure both statutory compliance and maximized net benefit for expatriate employees.

International Business

Q1. A multinational fast-moving consumer goods (FMCG) company is facing criticism for excessive plastic waste generated by its products in Latin America. Although local regulations on packaging are lax, global NGOs and environmentally conscious consumers are demanding action. The company’s leadership wants to balance profitability, regulatory compliance, and corporate citizenship without jeopardizing market share. They must navigate local economic pressures while also contributing to sustainability. Using Carroll’s CSR pyramid and referencing international sustainability agreements (e.g., the Paris Agreement, UN SDGs), how should the company redesign its packaging and communication strategies to address environmental, economic, and societal expectations? Provide a practical plan for implementation.

Q2 (A). A technology giant has established a corporate vision and mission that emphasize global connectivity and universal access. However, as it moves into new territories with distinct regulatory, cultural, and language environments, local teams feel disconnected from headquarters’ strategic intent. Instances of product misalignment and inadequate local adaptation arise, causing market underperformance and dissatisfaction among international employees who feel excluded from corporate purpose. Critically assess the company’s application of its vision and mission in a global context. Weigh the challenges of maintaining a unifying direction while empowering region-specific adaptation. Propose measures to ensure the vision and mission remain both globally cohesive and locally resonant, providing a reasoned justification for your approach.

Q2 (B). An Indian exporter signs a forward contract to sell a large shipment to a U.S. buyer, agreeing to receive payment in U.S. dollars in six months. Shortly after the contract is signed, global interest rates fluctuate sharply, the rupee begins appreciating against the dollar, and the U.S. buyer faces liquidity issues that may delay payments. The finance team is apprehensive about both counterparty and exchange rate risks, particularly given the current volatility in currency and credit markets. Evaluate the exporter’s decision to use a forward contract as a hedging tool under these circumstances. Critically analyze the risks and benefits in light of prevailing market volatility, and recommend whether alternative or additional financial derivatives should have been considered to better protect the firm’s financial interests.