Assignment Questions

Subject: Corporate Financial Restructuring

Unit No.-1 Basic concepts
1. Define corporate restructuring and explain its significance. Discuss the need, scope, and the concept of
both internal and external restructuring. Provide examples to illustrate these concepts. (15 Marks)
2. Explore the different forms of corporate restructuring and the motives behind them. Describe how
corporate organizations can undergo changes in their structure or operations. Give real-world examples of
companies that have pursued various forms of restructuring. (15 Marks)
3. Analyze the financial perspective in corporate restructuring. Discuss how financial considerations play a
critical role in decision-making during restructuring. What financial benefits or challenges can arise from
corporate reorganization? (15 Marks)
4. Examine the reorganization strategies in corporate organizations. Describe the strategies and approaches
that companies employ when undergoing restructuring. Discuss the outcomes and implications of these
strategies for the organization and its stakeholders. (20 Marks)
5. Provide examples of applications of corporate restructuring in various industries. Highlight instances
where corporate restructuring has been successfully used to achieve specific goals or solve particular
problems. Discuss the results and impact of these applications on the organizations involved. (20 Marks)

Unit No.-2 Overview of Corporate Finance and Corporate restructuring

1. Discuss the overview of corporate finance and corporate restructuring. Explain the importance of
corporate restructuring in the context of financial management. Provide examples of companies that have
undergone successful corporate restructuring. (15 Marks)
2. Explore financial restructuring and divestiture. Explain the key concepts and strategies involved in
financial restructuring. Discuss the funding options available for mergers and acquisitions (M&A) and how
they impact corporate finance decisions. (15 Marks)
3. Analyze the role of strategic alliances and joint ventures in corporate finance. How do these collaborative
arrangements benefit companies? Provide examples of successful strategic alliances and joint ventures. (15
Marks)
4. Examine the concept of employee stock ownership and its implications for both employees and the
company. Discuss the pros and cons of employee stock ownership plans (ESOPs) and their impact on
corporate finance. (20 Marks)
5. Investigate various strategies for creating value through corporate restructuring, such as spin-offs, equity
carve-outs, target stock, and divestitures. Compare and contrast these strategies and provide real-world
examples of companies that have used them effectively. (20 Marks)

Unit No.-3 Dimensions of Mergers & Acquisitions

1. Define the concept of mergers and acquisitions (M&A). Discuss the different types and processes
involved in M&A transactions. Explain how M&A can benefit companies and the potential challenges they
may face during the process. (15 Marks)
2. Describe the accounting methods and considerations for mergers and demergers. Explain how financial
statements are impacted by M&A transactions. Provide examples to illustrate the accounting treatment of
M&A activities. (15 Marks)
3. Explore the regulatory framework for mergers and acquisitions. Discuss the legal and regulatory aspects
that govern M&A transactions in a specific jurisdiction or globally. Highlight the importance of complying
with these regulations. (15 Marks)
4. Explain the concept of due diligence in the context of M&A. Discuss the key steps and considerations in
due diligence, including financial, legal, and operational due diligence. Provide examples of how due
diligence can influence the success of M&A deals. (20 Marks)
5. Analyze cross-border mergers and acquisitions. Discuss the challenges and opportunities associated with
international M&A transactions. Highlight cultural, legal, and financial factors that can affect the success of
cross-border deals. (20 Marks)

Unit No.-4 Valuation Aspects of Corporate Restructuring

1. Discuss the methods of payment for mergers and acquisitions (M&A) and the calculations of exchange
ratios. Provide examples of companies that have used various methods of payment and explain how
exchange ratios are determined in M&A transactions. (15 Marks)
2. Explain the fundamental methods of business valuation. Compare and contrast different approaches to
business valuation, such as the Comparable Company Analysis, Transaction Analysis, and Discounted Cash
Flow (DCF) methods. Highlight the strengths and limitations of each approach. (15 Marks)
3. Calculate financial synergy and return in the context of corporate restructuring. Provide a step-by-step
analysis of how financial synergy is quantified, and discuss the significance of return calculations in M&A
transactions. Use a real-world case study to illustrate your points. (15 Marks)
4. Explore the concept of sensitivity analysis in business valuation. Explain how sensitivity analysis is
conducted and why it is crucial when assessing the value of a company or an investment. Discuss the
scenarios where sensitivity analysis can be particularly useful. (20 Marks)
5. Explain the methodology behind break-up analysis, including the key components like adjusted present
value, equity/residual cash flows, and capital/leveraged cash flows. Provide a practical example of a
company's break-up analysis to demonstrate the application of these concepts. (20 Marks)

Unit No.-5 Corporate Governance Aspects of Restructuring

1. Discuss the domestic and international trends related to corporate governance practices in the context of
corporate restructuring. How have governance practices evolved in response to the changing landscape of
corporate restructuring? (15 Marks)
2. Examine the references to corporate governance in the Indian Companies Act (Amended) 2013, SEBI
Regulations, and Listing Agreement. How do these regulations influence corporate governance during the
restructuring process in India? (15 Marks)
3. Explore the concept of shareholder democracy in the corporate restructuring process. Discuss the rights
and responsibilities of shareholders and how their involvement impacts the decisions made during
restructuring. (15 Marks)
4. Evaluate the roles of investors and creditors in corporate restructuring. How do these stakeholders
influence the decision-making process, and what mechanisms are in place to protect their interests in
restructuring scenarios? (20 Marks)
5. Analyze the role of non-executive directors in the corporate restructuring process. How do non-executive
directors contribute to sound corporate governance during restructuring, and what are their responsibilities in
this context? (20 Marks)