REGULATIONS AND SYLLABUS For the Candidates … main objective of the ... (One Question from each unit) Part C ... Security Analysis and Portfolio Management

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REGULATIONS AND SYLLABUS

For the Candidates admitted from the academic year

2015-16 and onwards

M.B.A (Financial Management)

[Choice Based Credit System (CBCS)]

DEPARTMENT OF COMMERCE AND FINANCIAL

STUDIES

BHARATHIDASAN UNIVERSITY

2

Master of Business Administration –MBA (Financial Management)-CBCS

Regulations & Syllabi - 2015-2016 onwards

About Department of Commerce and Financial Studies (DCFS)

The Department of Commerce was formed on 28.12.1998. The main objective of the

Department is to promote research, teaching and training in the frontier fields of Commerce.

The students of this programme gain practical knowledge through projects, educational tours,

organizing events and other innovative teaching methods.

Course Features

Program : M.B.A (Financial Management)

Pattern : Semester

Mode : Full-time Regular Programme

Duration : 2 Academic Years consisting of 4 Semesters

Medium of Instruction : English only

Eligibility : B.Com/ B.B.A/ B.A Corporate Secretaryship/ B.A. Bank Management/

Commerce related disciplines (with atleast one Accountancy Course) with a minimum

aggregate of at least 50% of marks under Part-III subjects. Any finance related degree

without at least one Accountancy course will not be accepted. Admission is based on

TANCET Score of the respective year and eligible undergraduate degree mark. (10 + 2 + 3)

Fee Structure : As prescribed by the University from time to time.

2) Credits

The total credits for this programme are 122.

3) Attendance

The students are eligible to write the examination if they obtain minimum 75% of attendance.

The students should pay condonation fee along with the Medical Certificate if they obtain

65% to 75% attendance. The students who obtain below 65% of the attendance, have to re-do

the semester(s) after completion of the programme.

4) Evaluation

Evaluation of each course (other than Summer Institutional Training Project, Main

Project Work and Extra Disciplinary Courses) shall comprise of Continuous Internal

Assessment (CIA) for 25 marks and End Semester Examination (ESE) for 75 marks.

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The components of CIA Marks are as follows

Test (Two) = 10 (Third test for genuine absentees)

Seminar = 5

Assignment = 5

Case analysis/ = 5

Quiz/ Group discussion

b) Question Paper Pattern for the Final Examination

Part A Questions Marks Total Marks

Ten Questions (no choice) 10 2 20 marks

(Two Questions from each unit)

Part B

Five Questions (either or type) 5 5 25 marks

(One Question from each unit)

Part C

Three Questions (either or type) 3 10 30 marks

(At least one Question from each unit)

Total Marks 75 marks

5) Passing Minimum

A student is declared to have passed in each course other than Project Works

and Extra Disciplinary Courses if he/she secures not less than 40 % marks in University

Exams and 40 % marks in CIA and not less than 50 % marks in the aggregate taking CIA &

University Exams marks together. The Failed candidates in the Internal Assessment are

permitted to improve their Internal Assessment marks in the subsequent semesters (2 chances

will be given) by writing the CIA tests and by submitting assignments. The regulations of our

University relating to Instant Examination, Revaluation and Retotalling will be followed.

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6) Guidelines for Summer Institutional Training Project and Final Project

A student project is a necessary condition for the award of MBA (Financial

Management) degree. The project must be individual work and should be carried on in any

organization outside the University. The Project should be designed in the form of a case

analysis and the student should select a real life transaction, event or situation facing an

organization or manager. It should develop practical solutions to the financial problems of

business firms.

a) Summer Institutional Training Project (FMPW 1)

Each student shall be required to take up institutional training cum project in any

business organization for a period of not less than 4 weeks after completing the second

semester (during vacation) and shall submit a report. While doing summer training project,

the students are expected to interact with officials in the organization. The Training

Certificate, Student Evaluation Form and Attendance Certificate with the Day Wise work

carried out (Training Schedule) signed by the Official of the sponsored organization should

be obtained and enclosed in the project. The project on different topics should be done

independently by the student or under the guidance of an official of the organization. The

students will be evaluated based on the report presentation and the feedback provided by the

officials in the respective institutions.

b) Final Semester Project (FMPW2)

In addition to the summer institutional project, each student shall be required to take

up a project during the final semester and submit a report. The authenticity of the project

work should be certified by a guide/ Head of the Department. The Final project report shall

be jointly evaluated by the Head /Supervisor and External Examiner appointed for this

purpose. At the end, Viva Voce examination shall also be conducted. The format of the

project report and date of submission will be decided by the Department. The weightage for

viva voce is 25 marks and Report presentation is 75 marks.

c) Suggested Topics

The students are encouraged to take up a project on “contemporary concerns” under the

guidance of a faculty. The project should fit within one of the following themes:

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Financing Policy - The analysis of specific decisions to issue equity, debt, convertibles,

capital structure policy, distress financing, venture capital, project financing, real estate

financing etc.

Investment Policy - The analysis of a major investment decision (involving real options),

the review of a company’s capital budgeting system/process, the analysis of cross-border

investment, etc.

Income Distribution Policy - The analysis of a company’s decision to alter its dividend

policy or to distribute cash other than regular dividends, the analysis of the distribution

policy of newly started company, etc.

Restructuring Activity - The analysis of a Joint Venture, Merger or Acquisition,

divestiture, spin-off, split-up or carve-out, MBO or LBO, leveraged recap, equity-for-debt

swap, IPO, roll-up, privatization, distress restructuring, etc.

Risk Management and Hedging Policy- This might be in the context of a major corporate

or multinational, a securities firm, a bank, hedge fund, a pension plan, etc.

Portfolio Investment Policy - The analysis of the investment policy, investment

strategies, and/or performance of a fund manager, mutual fund, endowment fund, pension

plan, hedge fund, etc.

Trading, Market Making and Exchanges - The analysis of an organization’s trading

strategies, performance evaluation of a prop-trading desk; the analysis of market- making (or

exchange) systems, including hedging and risk control.

Financial Engineering - The design/analysis of a new financial/structured product, the

use/misuse of financial products by firms, complex securitizations, credit derivatives, etc.

Financial Institutions and Markets - Strategy, policy, and response to regulatory changes

and other changes in financial markets (e.g. currency convergence).

Corporate Governance - The design of executive compensation schemes, communicating

with shareholders, CEO succession; the effectiveness/impact of governance, etc.

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Foreign Investment, Foreign Exchange, Capital Market and Trade – The analysis foreign

trade, currency futures, currency options, currency swaps, foreign exchange market

efficiency, theories of exchange rate can be made.

Contemporary Topics - The students are free to propose other themes that are

contemporary in nature and topics that fit within the broad area of finance.

7) Case Studies

Each student should go to the identified concern, business unit develop a case and

submit the case to the undersigned after presentation. They can do the case analysis in the

aspects namely Financial Statement Analysis using tools for analyzing Financial Statements,

“Z” – Score analysis, Balance Score Card, Application of Accounting Standards, Working

Capital Analysis such as Inventory, Cash, Financing policy, ABC, EOQ, Cost Analysis –

CVP analysis, Break Even Analysis, Capital Structure Analysis, Corporate Evaluation –

EVA, Share Price Analysis, Stock Market Practices analysis such as Trading pattern,

Clearing and Settlement Process, Portfolio Management, Fundamental Analysis, Project

Management & Analysis, Tax Management, Customer Satisfaction, Quality Control and

other Areas of Finance. They should submit their detailed case reports (typed in MS Word

Font Size 12 Line Spacing 1.5) covering the Company’s Origin, Structure, Control System

and Growth, analysis results along with tables, charts, figures etc., to the Department and to

the institution whose case they are analyzing. The students will be evaluated based on the

report presentation and the feedback provided by the officials in the respective institutions.

8) Other Regulations:

a) The Departmental Committee may be empowered to change/modify the regulations

relating to MBA (Financial Management) programme as and when required

b) The Departmental Committee may be empowered to implement the orders of the

University

c) The Common regulations of the University shall also be applicable to this

Programme.

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DEPARTMENT OF COMMERCE AND FINANCIAL STUDIES

M.B.A (Financial Management) Under CBCS

Sl.

No

Course

Code Title of the Course

Instruction

Hours No of

Credits

Marks

CIA

ESE Total

Marks Class

Hours

Practical

Hours

01

02

03

04

FMFC1

FMCC1

FMFC2

FMFC3

I Semester

Financial Management

Accounting for Decision Making

Applied Operations Research

Contemporary Business Communication

5

5

5

5

2

2

2

2

6

6

6

6

25

25

25

25

75

75

75

75

100

100

100

100

05

FMCC2

FMFC4

Elective Course (Any 1 of the 2)

Management Concepts and Behaviour

Financial Econometrics

5

2

6

25

75

100

Total 25 10 30 125 375 500

06

07

08

09

10

FMCC3

FMCC4

FMFC5

EDC1

FMPW1

II Semester

Advanced Financial Management

Fixed Income Securities Markets

IT Lab and Packages for Business *

Extra Disciplinary Courses (EDC)

Summer Institutional Training Project

5

5

5

---

---

2

2

2

---

---

6

6

6

2

5

25

25

25

---

---

75

75

75

---

100

100

100

100

--

100

11

FMCC5

FMFC6


Working Capital Management

Managerial Economics

5 2 6 25 75 100

Total 20 8 31 100 400 500

CIA = Continuous Internal Assessment ESE = End Semester Examination

* Theory – 45 marks and Practical – 30 marks for IT Lab and Packages for Business (FMFC5)

FMFC – Financial Management Foundation Course

EDC – Extra Disciplinary Course by other departments

FMCC – Financial Management Core Course

FMPW – Financial Management Project Work

Syllabus - 2015-2016 onwards

8

Conti.

Sl.

No

Course

Code Title of the Course

Instruction Hours No of

Credits

Marks

CIA ESE Total

Marks Class

Hours

Practical

Hours

12

13

14

15

16

FMCC 6

FMCC7

FMFC7

FMFC8

EDC2

III Semester

Security Analysis and Portfolio Management

Financial Services and Markets

Business Research Methodology

Financial Modelling

Extra Disciplinary Course

5

5

5

5

--

2

2

2

2

--

6

6

6

6

2

25

25

25

25

--

75

75

75

75

--

100

100

100

100

---

17

FMCC8

FMCC9


Corporate Tax Management

Foreign Exchange Management

5

2

6

25

75

100

Total 25 10 32 125 375 500

18

19

20

21

FMCC9

FMCC10

FMCC11

FMPW2

IV Semester

Project Appraisal and Evaluation

Derivatives and Risk Management

Behavioral Finance

Project Work

5

5

5

--

2

2

2

--

6

6

6

5

25

25

25

--

75

75

75

100

100

100

100

100

22

FMCC12

FMCC13


International Financial Management

Stock Market Practices

5

2

6

25

75

100

Total 20 8 29 100 400 500

Grand Total 90 36 122 450 1550 2000

CIA = Continuous Internal Assessment ESE = End Semester Examination

FMFC – Financial Management Foundation Course

EDC – Extra Disciplinary Course by other departments

FMCC – Financial Management Core Course FMPW – Financial Management Project Work

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FMFC1- FINANCIAL MANAGEMENT

Course Aim: To develop critical thinking and problem solving competencies, at both the

individual and group levels, of financial statement analysis, financial planning, principles

of valuation, capital structure and to apply financial theory to analyze real life situations

in an uncertain environment.

Course Outcomes: At the end of this course, students should be able to:

1. Understand the concepts and functioning of finance.

2. Use Financial Statements to evaluate firm performance and to obtain Cash Flows for

the firm and equity holders.

3. Calculate the cost of debt, cost of equity and the Cost of Capital, and

4. Understand the theories of capital structure.

Unit I: Introduction to Financial Management: Objectives, Functions, Scope,

Evolution, Interface of Financial Management with Other Areas, Environment of

Corporate Finance.

Unit II: Sources of Long-term Finance: Equity Capital, Retained Earnings, Preference

Capital, Term loans, Debentures, Pattern of Corporate Financing in India.

Unit III: Financial Statement Analysis: Introduction, Meaning and Concept of

Financial Analysis, Types and Devices of Financial Analysis. Understanding Financial

Statements: Balance Sheet, Income Statement, Common Size Analysis, Trend Analysis,

Ratio Analysis, Dupont Analysis, Industry Average, Comparison with Competitors.

Unit IV: Fund Flow and Cash Flow Analysis: Analysis of Fund flow Statement, Cash

flow statement and Ratio Analysis. Financial Ratios as perceived by Commercial Banks,

Corporate Controllers, Forecasting Financial Failure; Ratio Analysis in Special Industries:

Banks, Utilities - Transportation, Insurance, Real Estate Business.

Unit V: Cost of Capital: Cost of Debt and Preference; Cost of Equity and Retained

Earnings; Weighted Average Cost of Capital; Divisional and Project Cost of Capital; Cost

of Capital in Practice.

Capital Structure: Introduction, Factors Affecting Capital Structure, Capital Structure

Theories – Net Income Approach, Net Operating Income Approach, MM Approaches I &

II, Traditional Approach, Optimal Capital Structure.

Unit VI: Dynamic Component (for Continuous Internal Assessment Only): Contemporary Developments Related to the Course during the Semester Concerned.

Reference: 1. Raymond Brooks, Financial Management: Core Concepts, 3

rd Edition, 2015, Pearson

Education.

Weightage: Problems-50% and Theory – 50%

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2. Ross, Westerfield, and Jordan, 2011, Fundamentals of Corporate Finance, 10th

Ed.,

Tata McGraw Hill, New Delhi.

3. Prasanna Chandra, 2011, Financial Management: Theory and Practice,8th

Ed., Tata

McGraw Hill, New Delhi.

4. Brigham, Gapenski, Ehrhardt, 1999, Financial Management: Theory and Practice,

9th

Ed., Dryden Press.

5. Ravi M. Kishore, 2009, FinancialManagement, 7th

Ed., Taxmann’s Publication, New

Delhi

6. Pandey, I.M.,2006, Financial Management, 9th

Ed., Vikas Publishing House.

7. Charles H. Gibson, 2001, Financial Reporting and Analysis, 8th

Ed., South Western

College Publishing.

8. Wild, Bernstein, and Subramanyam, 2001, Financial Statement Analysis, 7th

Ed.,

McGraw Hill International, New Delhi.

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FMCC1- ACCOUNTING FOR DECISION MAKING

Course Aim: This programme is designed to provide high quality education in theoretical

and practical knowledge and skills in various aspects of accounting for those who wish to

pursue or further advance their careers in business.

Course Outcomes: Upon completion of the subject, students will be able to

1. analyze and interpret management information and to make decisions based on the

information available

2. understand and apply the theoretical aspects of accounting methods used for collecting,

recording and reporting financial information

3. describe the underlying theories of modern accounting and describe the conceptual

framework of accounting

Unit I: Introduction to Financial Accounting:- (Theory and Problems)

Accounting principles-concepts and conventions- Journal – Ledger – Trial Balance –

Adjustments – Final accounts of a Sole Trader - Profit and Loss Account - Balance Sheet-

Company Final Accounts as per the New Companies Act Schedule III-

Unit II: Cost Accounting: (Theory and Problems) Definitions – Scope - Significance and Limitations of cost accounting - Cost Classification -

Cost Sheet - Methods of Costing - Process Costing - Job Costing

Unit III: Management Accounting:- (Theory and Problems)

Definitions – Scope - Significance and Limitations - Marginal Costing - Cost-Volume-Profit

Analysis - Break Even Analysis-Profit planning - Decisions Regarding Sales Mix - Make or

Buy decisions – Problem of key factor

Unit IV:

Standard costing and Budgetary control: (Theory and Problems)

Standard Costing - Variance Analysis-Material and Labour Only- Budgets and Budgetary

Control - Classification of Budgets – Functional Budget – Production, Sales, Raw Materials

Purchase and Cash Budget - Flexible Budgeting - Zero Based Budgeting.

Unit V: Recent Trends in cost accounting:-(Theory Only): Value Chain Analysis -

Quality Costing – Target costing-Life Cycle Costing-Kaizen costing-Activity Based costing-

International Accounting Standards and Indian Accounting Standards-Indian GAAP– IFRS.

Unit VI: (for Continuous Internal Assessment Only): Dynamic Component Contemporary Developments Related to the Course during the

Semester Concerned

Weightage: Theory – 40% and Problems-60%

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References:

1. M.C. Shukla, T.S. Grewal and S.C. Gupta, Advanced Accounting,2015, S. Chand &

Co.New Delhi

2. R.L. Gupta & M. Radhasamy, Advanced Accounting, 2014, 17th

Edition, Sultan Chand &

Sons.New Delhi

3. Arora, M.N. A Text Book of Cost Accountancy, 6th

Ed., Vikas Publishing House,

New Delhi.

4.Hansen &Mowen, 2000 Management Accounting, 5th

Ed., South-Western College

Publishing.

5.Sharma and Gupta- Management Accounting-Kalyani Publishing House,, New Delhi

6.S.N.Maheswari- Management Accounting- Sultan Chand & Sons.New Delhi

7. Pandey, I.M., Management Accounting, 3rd

Edition, 2009, Vani Publication, Delhi.

8. Barfield, Jessie, Ceily A. Raiborn, and Michael R. Kenney, Cost Accounting: Traditions

and Innovations,2001,South Western College Publishing, Cincinnati, Ohio.

9. SP Jain and KL Narang –Cost Accounting- ,Kalyani Publishers,New Delhi

13

FMFC2 - APPLIED OPERATIONS RESEARCH

Course Aim: The aim of the course is to give students a solid quantitative foundation

alongside practical problem-solving techniques. The course is intended to provide the

students with deeper analytical skills and an understanding of how these are applied to

business and management problems.

Course Outcome: Upon completion of the subject, students will be able to

1. Recognize the importance and value of Operations Research and mathematical modeling

in solving practical problems in industry;

2. Formulate a managerial decision problem into a mathematical model; and

3. Understand Operations Research models and apply them to real-life problems;

Unit I Linear Programming: Introduction to applications of operations research in

functional areas of management – Linear Programming formulation - solution by graphical

and simplex methods (only simple problems) – Concepts of Duality.

Unit II Transportation: Transportation Models (Minimising and Maximising Problems) –

Balanced and unbalanced Problems – Initial Basic feasible solution by N-W Corner Rule,

Least cost and Vogel’s approximation methods - Check for optimality - Solution by Modified

Method (MODI) / Stepping Stone method - Assignment Models – Types of Assignment

Problem - Hungerian Method.

Unit III Inventory Models and Decision Theory: Inventory Models – EOQ and EBQ

Models (With and without shortages) - Quantity Discount Models. Decision making under

risk – Decision trees – Decision making under uncertainty.

Unit IV: Queuing Theory: Introduction to Queuing Theory – Terminologies of Queuing

System – Empirical Queuing Models.

Unit V: Time Value of Money: Introduction – Concept and Techniques – Doubling and

Multiple Compounding Periods – Effective Rate of Interest – Future Value of Series of

Payments and Annuity –Present Value of Series of Payments and Annuity – Practical

Applications of Time Value Techniques.

Unit VI: Dynamic Component (for Continuous Internal Assessment Only): Contemporary Developments Related to the Course during the Semester Concerned

References:

1. Yadav .S.R and Malik A. K, Operations Research, 2015, Oxford University Press.

2. Paneerselvam R., Operations Research, Prentice Hall of India, Fifteenth Print, 2009.

3. Pradeep Prabakar Pai, Operations Research - Principles and Practice, Oxford Higher


14

Education, .

4. Hamdy A Taha, Introduction to Operations Research, Prentice Hall India, Seventh

Edition, Third Indian Reprint 2004.

5. G. Srinivasan, Operations Research – Principles and Applications, PHI, 2007.

6. Gupta P.K, Hira D.S, Problem in Operations Research, S.Chand and Co, 2007.

7. Kalavathy S, Operations Research, Second Edition, Vikas Publishing House, 2004.

8. Shashi K. Gupta, Sharma. R. K., Financial Management : Theory and Practice, 3rd

Ed.,

Kalyani Publishers.

8. Prasanna Chandra, 2001, Financial Management: Theory and Practice, 5th

Ed., Tata

McGraw Hill.

9. Pandey, I.M.,2006, Financial Management, 9th

Ed., Vikas Publishing House.

15

FMFC3 – CONTEMPORARY BUSINESS COMMUNICATION

Course Aim: To explain the fundamentals, scope and importance of communication in

business, develop individual reading and listening skills of the students and to transform

their communication abilities by honing their oral, written, and non-verbal communication

skills.

Course Outcome: At the end of the Course, the student would be able to

1. Develop an ability to communicate correctly and effectively on matters having

relevance to day-today business operations.

2. Develop effective writings on resumes, reports and face interviews

Unit I: Business Communication: Meaning and Objectives of Business Communication –

Factors Affecting Business Communication - Verbal Communication (Group Discussion,

Business Presentation) – Non Verbal Communication.

Unit II : Parts of the Speech - Nouns – Pronouns – Verbs – Adjectives – Adverbs –

Prepositions – Conjunctions – Interjections

Verb Tenses and Voice - Principal Parts of Verbs - Regular and Irregular Verbs - Tenses of

Verbs - Perfect Tenses - Progressive and Emphatic Forms - Consistency of Tenses - Voice of

Verbs - Mood of Verbs

Unit III: Parts of the Sentence - Sample Subjects and Simple Predicates - Complete

Subjects and Complete Predicates - Compound Subjects and Compound Predicates - Order of

Subjects and Predicate – Complements

Unit IV: Written Communication – The Process of Writing - Notice, Agenda and Minutes

- Business Letters – Memorandums – E-mail – Text Messaging – Instant Messaging –

Directness in Good and Neutral Messages - Indirectness in Bad-News Messages

Unit V: Employment Communication: The Job Search - Preparing the Application

Documents - Constructing the Resume - Types of Interviews - Do’s and Don’ts for

Interviews -Oft asked questions


References: 1. Peter Hartley and Peter Chatterton, Business Communication: Rethinking Your

Professional Practice for the Post-digital Age, 2015, Routledge.

2. G.S.R.K Babu Rao, Business Communication and Report Writing, 2003, Himalaya

Publishing House.

3. Glencoe Language Arts, Grammar and Composition Handbook, 2002, Glencoe

McGraw – Hill.

16

4. Raymond V Lesikar, Marie E Flatley, Kathryn Rentz and Neerja Pande, 2009,

Business Communication Making Connections in a Digital World, Tata McGraw

Hill Education Private Limited.

5. Scot Ober, Contemporary Business Communication, 7th

Edition, 2007, Cengage

Learning Inc..

6. Chaturvedi P. D, &MukeshChaturvedi, Business Communication: Concepts, Cases

And Applications , 2nd

Edition, 2011, Pearson Education.

17

FMCC2- MANAGEMENT CONCEPTS AND BEHAVIOUR

Course Aim: To understand the nature and scope of management; to know the difference

between management and administration; to understand various levels of management; and

to describe the various skills that are necessary for successful managers.

Course Outcome: The students, after the completion of the course would be able to

understand

1. The historical backdrop and fundamentals of Management thoughts vital for understanding

the conceptual frame work of Management as a discipline.

2. The various concepts of planning, Decision making and controlling to help solving

managerial problems, and

3. The various contemporary concepts relating to business.

Unit 1: Nature and Process of Management: Meaning, Features, Functions and Importance

of Management, Management as Science, Art and Profession; Managerial Skills, Tasks of

Management, Role of Managers.

Unit II: Planning: Features, Nature, Importance, Benefits, Limitations, Elements, Principles

of Planning, Planning Process.

Strategy: Meaning, Features, Benefits, Limitations and Process of Strategy, Implementation

of Strategies, Levels of Strategy, Environmental Analysis and Diagnosis.

Decision Making: Features, Nature, Process, Types of Decision Making, Approaches to

Decision Making, Techniques of Decision Making, Models of Decision Making.

Unit III: Organizing: Elements, Nature, Process and Importance of Organizing,

Organization Chart, Principles, Advantages, Limitations and Kinds of Organization Chart,

Organization Manuals, Span of Management, Principles of Organizing

Motivation- Meaning, Nature and Importance of Motivation, Approaches to Motivation,

Theories of Motivation.

Unit IV: Directing-Nature, Principles and Importance of Directing, Supervision,

Supervisor’s role, Qualities of Supervisor.

Leadership: Meaning, Elements, Process, Nature and Importance of Leadership, Leadership

Styles, Management and Leadership, Effective Leadership, Qualities of a leader.

Unit V: Controlling: Meaning, Nature, Importance and Types of Control, Resistance to

Control, Ways to overcome resistance to Control, Focus of Control, Control Process,

Essentials of an Effective Control System, Principles of Control.


18

Reference:

1. Stephen P. Robbins, Rolf Bergman, Ian Stagg, Mary Coulter, Management, 7th

Revised

Edition, 2015, Pearson Education.

2. NeeruVashist, Principles of Management,Taxmann Publications, New Delhi

3. Harold Koontz and Heinz Weirich, 1990, Essentials of Management, 5th

Ed., McGraw

Hill International.

4.Stonier &Wankel, Management,Prentice HallIndia, New Delhi.

5.Peter F. Drucker, Practice of Management, Pan Books, London.

6.Stephen P. Robbins and David A. Decenzo, 2001 Fundamentals of Management, 3rd

Ed. Pearson Education Asia.

7. E.H. Mc GrathS.J,Basic Management Skills for all, Six edition.

19

FMFC4 – FINANCIAL ECONOMETRICS

Course Aim: The first objective of this course is to introduce the main econometric methods and

techniques used in the analysis of issues related to finance and to apply the Simple, Multiple

Regression, Auto Correlation, Heteroskedasticity and Time Series.

Course Outcome: At the end of the Course, the students would be able to:

1. Understand the relevance of econometrics model in the area of finance.

2. derive the maximum likelihood estimators and discuss their properties

3. analyse and estimate models of autoregressive, moving average, and autoregressive-moving

average models, forecast using AR, MA, and ARMA models and apply the Box-Jenkins

approach to time series models, and

4. Relevantly apply ARCH, GARCH and VAR Model.

Unit I: Introduction: Meaning of Econometrics – Methodology of Econometrics – Types of

Econometrics - Nature and Scope of Econometrics, Economic and econometric models.

Unit II: Simple and Multiple Regression: Specification of the Relationships, The Method

of Least Squares, Statistical inference, Regression Coefficients, Analysis of Variance,

Prediction with the simple regression model, Outliers, Stochastic regressors, The regression

fallacy, Degrees of freedom and R2.

Unit III: Autocorrelation: The Durbin– Watson test, Estimation, Estimation procedures,

Effect of AR( 1) errors on OLS estimates, Tests for serial correlation and higher- order serial

correlation, Strategies for Significant DW test statistic, Trends and random walks, ARCH

models and serial correlation.

Unit IV: Heteroskedasticity: Detection of heteroskedasticity, Consequences of

heteroskedasticity, Solutions to the heteroskedasticity problem, Heteroskedasticity and the

use of deflators, Testing the linear versus log- linear functional form.

Unit V: Time Series Econometrics: Two methods - Frequency domain and time domain.

Strict stationarity, Weak stationarity, Nonstationarity, Purely random process Random walk,

Moving average process, Autoregressive process, Estimation of AR, MA, and ARMA

models, The Box– Jenkins approach, Trend elimination, R2 measures in time- series models.


Reference:

1. Mukhopadhyay Bidisha, Applied Financial Econometrics with Cases, 2015, Lap

Lambert Academic Publishing

2. Gujarati.D, Basic Econometrics, 5th Edtion, McGraw Hill, New York.

3. Kelejion, H.H and Oates Wallance, E,Introduction to Econometrics, Harper and Row


20

Publishers Inc., New York.

4. Box, G.E.P. and Jenkins, G.M,1976, Time Series Analysis - Forecasting and

Control. Holden-Day, San Francisco.

5. Johnsdon, J, Econometric methods, 3rd Ed, McGraw Hill, New York.

6. Maddala, G.S,, Kajal Lahiri Introduction to Econometrics, 4th Edition, John Wiley

and Sons.

7. Wonnacott and Wonnacott , Econometrics, 2nd

Ed, John Wiley and Sons, New York.

8. Brooks, Chris, Introductory Econometrics for Finance, 2nd Edition, Cambridge

University Press

9. Peijie Wang, Financial Econometrics Taylor & Francis Publisher

21

FMCC3 - ADVANCED FINANCIAL MANAGEMENT

Course Aim: This course aims to provide the students with the fundamental concepts,

principles and approaches of finance, enable the students to apply relevant principles and

approaches in solving problems of corporate finance and help the students improve their

overall capacities.

Course Outcomes: On the completion of the course, the student would be able to

1. Describe how firms allocate their funds through the application of capital budgeting.

2. Explain the capital structure and analyze how financing decisions influence firm value

3. Describe how dividends are paid and explain factors that affect a firm’s dividend

policy

4. Compute the value of a firm using different methodologies, and

5. Discuss how management uses financial planning models in the planning process and

explain what factors determine a firm’s sustainable growth rate.

Unit I: Financial Planning and Capital Budgeting: Introduction and Meaning,

Financial Planning, Sales Forecast, Financial Forecasting Vs Budgeting. Capital

Budgeting: Techniques of Capital Budgeting; Capital Budgeting Process, Project

Classification; Estimation of Project Cash Flows; Risk Analysis in Capital Budgeting;

Sensitivity Analysis, Scenario Analysis, Break-even Analysis, Hiller Model, Simulation

Analysis, Decision Tree Analysis; Corporate Risk Analysis; Managing Risk; Project

Selection Under Risk; Risk Analysis in Practice.

Unit II: Dividend Policy: Types of Dividends; Irrelevance of Dividend; Relevance of

Dividend; Factors Influencing Dividend Policy; Types of Dividend Policies; Dividend

Policies in Practice; Bonus Shares and Repurchase of Shares.

Unit III: Corporate Valuation: Approaches to Valuation: Adjusted Book Value

Approach, Stock and Debt Approach, Direct Comparison Approach and Discounted Cash

Flow Approach, Approaches to Facilitate Value Based Management, Marakon Approach,

Alcar Approach, McKinsey Approach, EVA and BCG approach

Unit IV: Corporate Governance and Executive Compensation: Agency Problem,

Devices to control agency costs, Corporate Governance in the developed countries and in

India; Executive compensation, Employee stock option plan.

Unit V: Performance Measurement and Balanced Scorecard: Rationale for the

Current Focus on Business Performance Measurement, Financial Measures, Non-financial

Measures, Balanced Scorecard, Parta System, Performance Excellence Awards,

Divisional Performance Measurement.



22

Reference:

1. Eugene Brigham, Joel Houston, 2015, Fundamentals of Financial Management,

14th

Edition, Cengage Learning.

2. Prasanna Chandra, 2001 Financial Management: Theory and Practice, 8th

Ed.,

McGraw Hill, New Delhi.

3. Ross, Westerfield, Jaffe, 1999 Corporate Finance, 5th

Ed., McGraw Hill.

3. Brigham, Gapenski, and Ehrhardt, 1999 Financial Management: Theory and

Practice, 9th

Ed., Dryden Press.

4. Pandey, I.M., 2006,Financial Management, Vikas Publishing House.

5. Vishwanath, S.R., 2000 Corporate Finance: Theory and Practice, Response Books.

6. Fred J. Weston, Kwang S. Chung, and Susan E. Hoag, Mergers, Restructuring and

Corporate Control, Prentice Hall of India, 1997.

23

FMCC4 - FIXED INCOME SECURITIES MARKET

Course Aim: To help students develop a solid understanding of bond and bond markets and

to provide students with concepts and methods those are heavily used in practice.

Course Outcomes: At the end of the course, the student would

1. Describe and interpret the general features of fixed income securities and understand the

basic operations of fixed income markets.

2. Illustrate the basic term structure of interest rates.

3. Explain the characteristics of mortgage loans and mortgage-backed securities.

4. Understand the features and uses of bond with option features and

5. Use basic interest rate derivatives like futures and options to manage risk and have

general knowledge of other interest rate derivatives like FRA, interest rate swap, and

credit default swap.

Unit-I: Fixed Income Securities Market: Introduction – Meaning and Types of Fixed

Income Securities – Features of Fixed Income Securities.

Debt instrument features and classification: Modifying the Coupon, term to maturity,

principal repayment of a Bond, Asset backed securities, Indian Debt Markets Profile: Market

Segments, Participants in the Debt Markets, Secondary Market for Debt Instruments

Unit-II: Money Market Fixed Income Securities: Call Money Market: Volumes,

Participants in the Call Money Market, Call Rates. Commercial Paper & Certification of

Deposits: Guidelines for issue of CP Issue, Growth in the CP Market, Certificate of

Deposits. Repos: Definition, Repo rate, Advantages, Calculation of amount settlement in

Repo transactions, Repo Accounting. Treasuary Bills: Issuance Process, Cut off yields,

Investors in T-Bills, Secondary Market activity in T- Bills.

Unit-III: Capital Market Fixed Income Securities: Central Government Securities

Bond: Introduction, Developments Expected, G-Sectors: Trends in Volumes, Tenor and

Yields, Primary Issuance Process, Participants in Government Bond Markets, Primary

Dealers, Satellite Dealers, Secondary Markets for Government Bonds, Settlement of Trades

in G-sec. Corporate Bonds: Market Segments, Issuance process, Book Building, Terms of

Debenture Issue, SEBI Guidelines on Corporate Debt Issue, Credit Rating.

Unit-IV: Valuation of Bonds: Bond Characteristic, Bond Prices, Bond Yields, Risks in

Bonds, Rating of Bonds, The Yield Curve, Explaining the Term Structure, Determinants of

Interest Rates, Analysis of Convertible Bonds, YTM, Duration

Bond Portfolio Management: The Passive and Active Stances: Interest Rate Risk, Passive

Strategies, Immunizations: A Hybrid Strategy, Active Strategies, Interest Rate Swaps.

Unit-V: Fixed Income Derivatives: Meaning, Mechanics of Forward Rate Agreements,

Interest Rate Futures, Interest Rate Swaps, Guidelines on Exchange Traded Interest Rate

Derivatives.



24

Reference:

1. Saied Simozar, 2015, The Advanced Fixed Income and Derivatives Management

Guide, John Wiley & Sons.

2. S.L.Gupta, 2006, Financial Derivatives (Theory, concepts and Problems), 1st Ed.,

Prentice Hall of India.

3. NCFM, FIMMDA Module

4. Moorday Choudhry, 2001, Bond Market Securities, 1st Ed., Pearson Education.

5. Donald E.Fisher and Ronald J.Jordan, 2000, Security Analysis and Portfolio

Management, 6th

Ed., Prentice Hall of India.

6. Prasanna Chandra, 2006, 2nd

Ed., Investment Analysis and Portfolio Management,

Tata McGraw Hill International.

7. Suresh Sundaresan, 2002, 2nd

Ed., Fixed Income Markets and their Derivatives,

Thomson Southern Western.

25

FMFC5- IT LAB AND PACKAGES FOR BUSINESS

Course Aim: This course will help participants to understand the essential elements of

computer hardware and software. It introduces common computer applications including

Word and Excel. This course also aims to provide practical training to the students in the

areas like Word, Excel and Accounting Software Package.

Course Outcomes: At the end of course the student would be able to

1. Describe the development and applications of computers, components of a computer,

and applications of computer

2. Describe the history and importance of the computer.

3. Prepare work documents and excel workbook, and

4. Computerise the financial and cost accounting and prepare payrolls, VAT and TDS.

Unit I: Introduction: Meaning of Computer – History of Computer - Importance of

Computer – Charactertics of Computer –Uses of Computer – Five Generations of Modern

Computer - Classifications of Digital Computers – Components of a Computer – Computer

Applications - Computers in Business and Industry.

Unit II: Ms-Word: Introduction – Getting Started MS Word 2007 - Microsoft Office Button

– Quick Access Toolbar – Working with Documents – Page Formatting – Macros.

Unit III: MS-Excel: Introduction – Getting Started MS Excel 2007 – Spreadsheets –

Microsoft Office Button – Ribbon – Quick Access Toolbar – Creating a Work Book – Data –

Modifying a Worksheet – Calculations – Relative, Absolute and Mixed References –

Formatting Work Book.

Unit IV: Accounting Software Packages: Computerized Accounting Vs Manual

Accounting - Introduction to Tally – Accounting Information – Vouchers - Purchase/Sales

Orders and Invoices - Reports

Unit V: Inventory Accounting Using Software Package: – Inventory Information – Pure

Inventory Vouchers – VAT - Tax Deduction at Source - Pay Rolls.


Reference:

1. Alexis Leon, Mathews Leon, Computer Applications in Business, Vijay Nicole Imprints

Private Limited, 2013

2. Sanjay Saxena, MS Office 2007 in a Nutshell, Vikas Publishing House, 2011.

3. Namrata Agrawal, Tally 9, Dream Tech Press,2011.

4. Parameswaran, R. Computer Applications in Business, Sixth Edition, Sultan Chand &

Company Ltd, 2012.

5. Tally accounting packages work notes.

Marks: CIA – 25 and ESE – 75 (Out of 75, 45 marks for written and 30 marks for practical)

(The ESE Theory Examination would be conducted for 75 marks and converted for 45 marks)

26

FMCC5- WORKING CAPITAL MANAGEMENT

Course Aim: The course helps to appraise students with the importance of working capital

and the techniques used for effective working capital management and to manage the

components of working capital like cash, receivables, inventory and payables.

Course Outcomes: At the end of the Course the student would be able to

1. Understand the importance, components and factors influencing working capital

management.

2. Assess the various sources of financing of current assets, and

3. Appraise the management of cash, receivables, inventory and payable management.

Unit I: Working Capital Policy: Overall Considerations, Importance of Working Capital

Management, Components of Working Capital, Factors Influencing the Requirements of

Working Capital, Risk-return Trade-off, Profitability-Liquidity tangle. Estimating Working

Capital Requirements: Operating Cycle Method, Percent of Sales Method. Role of finance

managers in working capital management.

Unit II: Financing Current Assets: Different approaches to financing current assets:

Conservative, aggressive and matching approach, Sources of finance, Spontaneous source,

Trade credits, Short term bank finance, Commercial papers and Public deposits, Committees

on working capital finance. Factoring.

Unit III: Cash Management: Importance, The right proportion, Factors influencing cash

balance, Determining optimum cash balance, Cash Budgeting, Controlling and monitoring

collections and disbursements, Cash management models.

Unit IV: Receivables and Payables Management: Credit Policy variables, Credit

Standards, Credit period, Cash discount and collection efforts. Credit Evaluation, Credit

Granting Decision, Control of Receivables, Management of Trade Credit in India, Payables

Management.

Unit V: Inventory Management: Need for inventories and the importance of its

management, Techniques for managing inventory, Order Quantity, E.O.Q. Model, Order

Point, Safety Stock, Analysis of Investment in inventory, Selective Inventory Control, A.B.C.

analysis. Bills Payable Management


Reference:

1. R.K. Gupta and Himanshu Gupta, Working Capital Management & Finance, 2015, 1st

Edition, Notion Press.


27

2. Prasanna Chandra, 2004, Financial Management - Theory and practice, 5th

Ed.Tata

McGraw Hill.

3. Hrishikes Battacharya, 2001, Working Capital Management: Strategies and Techniques,

Prentice Hall of India.

4. Pandey I.M, 2005, Financial Management, Vikas Publishing House, New Delhi.

5. Joshi, R.N., 1999, Cash Management, New Age International Publishers.

6. Ramamurthy V.E., Working Capital Management, IFMR Publication,Chennai.

28

FMFC6 – MANAGERIAL ECONOMICS

Course Aim: To study the application of analytical tools and microeconomic concepts to

corporate resource allocation, demand and cost determination, industry positioning, and

pricing mechanisms.

Course Outcome: On completing the course, the student would be able to

1. Provides knowledge, tools and techniques to make effective economic decisions under

conditions of risk and uncertainly.

2. Determining the factors such as demand and production for pricing criteria.

3. Determine the cost and profit conditions to cover up for the benefits of markets, and

4. Intends the understanding of various economics, social, legal and other factors that

influence business in India.

Unit I: Introduction: Nature and Subject Matter of Economics - Classical and Modern View

- Robin’s Contribution and its Critical Estimate - Economics as Positive Science, Normative

science, Applied Science and Arts - Micro and Macro Economics - Relation of Economics

with business.

Unit II: Producer Behaviour: Market – Demand and Supply – Determinants – Market

Equilibrium – Elasticity of Demand and Supply – The Scope of Business Economics to

Problems of Production - Laws of Returns and their Casual and Effectual Significance -

Analysis of Cost – Short-run and Long-run Cost Function – Relation between Production and

Cost Function.

Unit III: Product and Factor Market: Product Market – Perfect and Imperfect Market –

Different Market Structures – Firm’s Equilibrium and Supply – Market Efficiency –

Economic Costs of Imperfect Competition – Factor Market – Land, Labour and Capital –

Demand and supply – Determination of Factor Price – Interaction of Product and Factor

Market – General Equilibrium and Efficiency of Competitive Markets.

Unit IV: Macro Economics: National Income and Economics welfare - Relation Between

Size and Distribution of National Income and Economic Welfare - Business cycles -

Theories of Business Cycle - The Problem of Unified Theory of Business Cycle

Unit V: Supply and Role of Money: Keynsian Theory of Employment - The Problem of

Full Employment - Unemployment and its impact – Okun’s law – Inflation and the Impact –

Reasons for Inflation – Inflation Vs Unemployement Tradeoff – Phillips curve –Supply side

Policy and management- Money market- Demand and supply of money – money-market

equilibrium and national income – the role of monetary policy.


References:

1. Luke Froeb, Brian McCann, Michael Ward, Mike Shor, Managerial Economics, 2015, 4th


29

2. Paul A. Samuelson and William D. Nordhaus, 2005, Economics, 18th edition, Tata

McGraw Hill,

3. William Boyes and Michael Melvin, 2005, Textbook of Economics, Biztantra.

4. N. Gregory Mankiw, Principles of Economics, 3rd edition, Thomson learning, New

Delhi, 2007.

5. Richard Lipsey and Alee Charystal, Economics, 11th edition, Oxford University Press,

New Delhi, 2008.

6. P.L.Mehta, 2007, Managerial Economics- Analysis, Problems and Cases, 13th

Edition,

Sultan Chand & Sons.

30

FMCC6- SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Course Aim: To advance the understanding of fundamental concepts of finance, financial

markets and market participants, valuation techniques of financial instruments, and working

knowledge of portfolio management

Course Outcome: At the end of the Course, the student would be able to

1. Understand the basic structure and working of primary and secondary financial markets in

India and conversant with computation of risk and return measures for financial

instruments.

2. Understand and appreciate the Fundamental and Technical analysis tools for analysing

financial securities.

3. Well versed with the concept of a Portfolio and understand the principle portfolio

theories, and

4. Acquaint and understand portfolio analysis, portfolio evaluation and portfolio revision

techniques.

Unit I: Investments – Investment vs. Speculation, Investment Process, Investment

categories, Risk and Return, Factors Influencing Risk, Measuring Risk and Return, Valuation

of Equity: Dividend Discount Models, Price/Earnings Approach.

Unit II: Fundamental Analysis: Economic analysis: Key Macroeconomic Factors.

Industry analysis: Industry Life Cycle Analysis, Analysing the Structure and Characteristics

of an Industry, Profit Potential of Industries. Company Analysis: Analyzing the Financial

Statements, The Chemistry of Earnings, Forecasting via the Earnings Model, Market

Share/Profit Margin Approach, Independent Forecast of Revenue and Expenses.

Unit III: Technical Analysis: Charles Dow Theory – Trends of Market – Trend Continution

Pattern – Trend Reversal Patterns - Various Price and Volume Indicators; Market Indicators,

Interpretation of various types of trends and indices; Forecasting Individual Stock

Performance.

Unit IV: Efficient Market Theory: Random walk, The Efficient Market Hypothesis.

Portfolio Analysis: Effects of combining securities, Markowitz’s Mean- Variance model,

Portfolio Selection: Risk and investor preferences, Constructing the portfolio, Significance

of beta in the Portfolio.

Unit V: Portfolio Management: Portfolio management process, evaluations. Capital

Market Theory: CAPM, Arbitrage Pricing Theory.

Performance Evaluation: Sharpe Index, Treynor Index, Jensen’s Model, Fama.



31

Reference:

1. John Bonner, Marcus Rees, 2015, Portfolio Management: A Market-Class guide to

Investment Management, Harriman House Limited.

2. Donald E. Fischer and Ronald J. Jordan, 2000 Security Analysis and Portfolio

Management, 6th

Ed., Prentice Hall of India.

3. Prasanna Chandra, 2006, Investment Analysis and Portfolio Management, Tata

McGraw Hill International.

4. R.J. Fuller and J.L. Farrel, Modern Investments and Security Analysis, McGraw

Hill International.

5. Jack Clark Francis, 1986, Investments: Analysis and Management, McGraw Hill

International.

6. Strong, Robert A, 1993, Portfolio Construction, Management and Protection, West

Publishing Company..

32

FMCC7- FINANCIAL SERVICES AND MARKETS

Course Aim: To describe and apply financial concepts, theories, and tools relating to

financial markets and financial institutions.

Course Outcomes: The students after completing this course, would be able to

1) Understand the role, scope and growing contribution of financial services in the service

sector of the economy.

2) Comprehend the role of depository system, dematerialization and re-materialization of the

securities, and

3) Study the role, types of mutual funds and computation of NAV

Unit-I: Indian Financial System: Functions of the Financial System – Financial Concepts

– Financial Assets – Financial Intermediaries – Financial Markets Classification – Financial

Rates of Return – Financial Instruments – Development of Financial System in India –

Legislative Support – Weakness of Indian Financial System.

Unit-II: New Issue Market – Meaning and Advantages– New Issue Market and Stock

Exchange – Functions – General Guidelines for New Issue – Methods of Floating – Players –

Recent Trends.

Secondary Market: Stock Exchanges – Listing of Securities – Registration of Stock Brokers

– Method of Trading in Stock Exchange – Defects of Capital Market – Recent

Developments.

Unit-III: Merchant Banking – Definition, Origin of Merchant Banking – Merchant

Banking in India - Merchant Banks and Commercial Banks – Services of Merchant Banks –

Qualities required for Merchant Bankers – Guidelines – Market Making Process – Progress,

Problems and Scope of Merchant Banking in India.

Mutual Fund - Meaning, types, SIP, functions, advantages, private and public sector mutual

funds, growth of mutual funds in India.

Unit-IV: Leasing financing: Definition, Steps, Types, History and Development of Lease

Finance – Legal Aspects – Contents of Lease Agreement – Accounting Treatment of Lease –

Structure, Problem and Prospects of Leasing Industry.

Hire Purchase: Features - Legal Position – Hire Purchase and Installment Sale – Hire

Purchase and Leasing – Origin and Development – Banks and Hire Purchase Business –

Bank Credit.

Unit-V: Factoring: Discounting – Meaning, Functions, Types, Cost and Benefit of Factoring

– Factoring in India and Abroad - Credit Rating: Mechanism, Role of CRISIL and other

institutions.


Reference:

1. Keith Dickinson, 2015, Financial Markets Operations Management, John Wiley & Sons.

33

2. Gordon and Natarajan, 2001 Financial Markets and Services, Himalaya Publishing

House.

3. Jeff Madura, 2001 Financial Markets and Institutions, 5th

Ed., South-Western College

Publishing.

4. Vasant Desai, The Indian Financial System, Himalaya Publishing House.

5. Varshney P.N., and D.K. Mittal, 2000 Indian Financial System, Sultan Chand & Sons.

6. Bhole L.M, Financial Institutions and Markets, 3rd

Ed. Tata McGraw Hill, 1999

7. Khan, M.Y, 1998 Financial Services, Tata McGraw Hill.

34

FMFC5 - BUSINESS RESEARCH METHODOLOGY

Course Aim: The course aims to give students a broad understanding of research

methodology, including theory of science and qualitative and quantitative methods. The

course aims to give students skills for critical reading of research literature and for preparing

them do their main project.

Course Outcomes: At the end of course, the students would be able to

1) Comprehend the objectives of research and the steps involved in research process.

2) Use different data collection methods and sampling design techniques in their own

research.

3) Analyze the collected and processed data with the help of statistical tools, and

4) Generalize and interpret the data and prepare a research report.

Unit I: Introduction to Business Research: Meaning – Types of Research – Process of

Research – Research Applications in Business Decisions – Features of a Good Research

Study – Formulation of the Research Problem and Development of the Research Hypotheses

– Research Design: Exploratory and Descriptive.

Unit II: Sampling Methods: Sampling Concepts – Sample Vs Census – Sampling Vs Non

Sampling Error – Sampling Design – Probability Sampling Design – Non- probability

Sampling Design – Determination of Sample Size.

Unit III: Data Collection and Data Processing: Classification of Data – Research

Applications, Merits, Drawbacks and Evaluation of Secondary Data – Classification of

Secondary Data – Qualitative Methods of Data Collection – Qualitative Vs Quantitative Data

Methods – Data Editing, Coding, Classification and Tabulation of Data.

Unit IV: Data Analysis Through Statistical Software: Testing of Hypotheses - Analysis of

Variance – Non-Parametric Test - Multiple Regression & Correlation – Factor Analysis –

Discriminant Analysis.

Unit V: Report Writing: Importance of Report Writing – Types of Research Report –

Report Preparation and Presentation – Report Structure – Report Formulation – Guidelines

for Effective Documentation – Oral Presentation.


Reference:

1. Joseph F. Hair Et al., 2015, Essentials of Business Research Methods, 2nd

Edition,

Routledge.

2. Deepak Chawla and Neena Sondhi, 2011, Research Methodology – Concepts and

Cases, Vikas Publishing House.

3. Donald R.Cooper and Pamela S.Schindler, 2000, 6th

Ed., Business Research Methods,

Tata McGraw Hill Publishing Company Limited.

35

4. D.K. Bhattacharyya, 2003, 1st Ed., Research Methodology, Excel Books.

5. C.R.Kothari, 2001, Research Methodology, Wishva Prakashan Publication.

6. William G. Zikmund, 7th

Ed., Business Research Methods, Thomson-South-Western.

7. William M.K.Trochim, 2nd

Ed., Research Methods, BIZTANTRA.

36

FMFC8 - FINANCIAL MODELLING

Course Aim: To develop modeling ability for the aspects namely financial statement

analysis, financial planning, principles of valuation, capital structure, investment

management and operations research techniques. This course also aims to provide practical

training to the students in the financial modeling using MS Excel.

Course Outcomes: At the end of this course, students should be able to:

1. Design Model for analysing performance , variance and break even analysis.

2. Develop Financial models for calculating cost of capital, time value of money and for

planning capital budgeting and capital structure.

3. Develop model for valuing share and bond, analyzing portfolio and risk.

4. Develop the model for the applications of linear regression, trend line, data smoothing

and decision tree model.

Unit I: Introduction: Meaning- Objectives- Introduction to Design- Features of Model-

Number format – line and border, colour and pattern- Data Validation- Controls- Conditional

formatting – Functions – Graphics –Scenario – Goal Seek.

Unit II: Financial Modelling for Accounting: Analyzing Performance: Profit and Loss,

Balance Sheet, Ratios - Variance Analysis: Cash Flow Budgets, Monthly Cash Model, Flash

Report and Graphics - Breakeven Analysis, Operating Leverage, Financial Leverage,

Combined Leverage – Depreciation: Straight Line, Sum of Digits, Declining Balance,

Amortisation, Comparison.

Unit III: Financial Modelling for Financial Management: Cost of Capital: Capital Asset

Pricing Model, Dividend Growth Model, Cost of Debt, Cost of Preference Shares, Weighted

Average Cost of Capital, Marginal Weighted Average Cost of Capital - Capital Budgeting –

Time Value of Money – Capital Structure.

Unit IV: Financial Modelling for Investment Management: Company Valuation: Assets,

Adjusted Assets, Gordon’s Growth Model, Market-based – Bond: Pricing, Yield Measures,

Duration and Modified Duration, Convexity and Sensitivity, Portfolio Duration – Portfolio

analysis: Determining risk and return, expected portfolio return – Risk Analysis: Risk

adjusted rate, Variation, Standard Deviation, Coefficient of Variation.

Unit V: Financial Modelling for Operations Research: Linear Regression – Forecasting

Models: Historic Forecasts, Trend lines, Data smoothing, Cyclicality and Seasonality –

Linear Programming – Profit Maximisation – Probability concepts – Decision Tree Model.


Reference:

Marks: CIA – 25 and ESE – 75 (Out of 75, 45 marks for written and 30 marks for practical)

(The ESE Theory Examination would be conducted for 75 marks and converted for 45 marks)

37

1. Alexis Leon, Mathews Leon, Computer Applications in Business, Vijay Nicole Imprints

Private Limited, 2013

2. Sanjay Saxena, MS Office 2007 in a Nutshell, Vikas Publishing House, 2011.

3. Namrata Agrawal, Tally 9, Dream Tech Press,2011.

4. Parameswaran, R. Computer Applications in Business, Sixth Edition, Sultan Chand &

Company Ltd, 2012.

5. Tally accounting packages work notes.

6. Alastair L.Day, Mastering Financial Modelling in Microsoft Excel, Pearson 2nd

Edition.

7. Ruzbeth J.Bodhanwala, Learning Financial Management Using Financial Modelling,

Taxmann Allied Services Pvt. Ltd., 2003.

38

FMCC8 -CORPORATE TAX MANAGEMENT Course Aim: The course aims to help students to comprehend the basic principles and laws

governing Direct taxes in relation to business.

Course Outcome: At the end of the course, the students would be able to

1. Understand the basic concepts relating to taxation.

2. Compute the taxable business income.

3. Calculate the taxation of companies, and

4. Understand and apply the tax consideration relating to specified managerial decisions

and special areas.

Unit I: Introduction: Basic Concepts, Assessment year, Previous year, Person, Assessee,

Income, Gross Total Income, Total Income, Capital Asset, Capital Receipts Vs Revenue

Receipts, Capital Expenditure Vs Revenue Expenditure, Residential status and Tax

incidence, Incomes exempt from tax.

Unit II: Business Income: Computation of Profits and Gains of Business or Profession,

General Principles, Deductions and Allowances, Deemed Profits, Income from

undisclosed sources, Valuation of stock.

Unit III: Taxation of Companies: Definitions of Indian Company, Domestic Company,

Foreign Company, Industrial Company, Widely held company, closely held company,

Investment Company, Consultancy Service Company and Trading Company. Deductions

available to Company, Minimum Alternate Tax, Carry forward and set-off of losses in

case of certain companies, Tax on undistributed profits on domestic companies.

Unit IV: Tax Consideration in specified Managerial Decisions and their implications

on cash flow, make or buy, own or lease, retain or replace, export or domestic sales,

shutdown or continue, purchase by installment or hire.

Unit V: Tax Consideration in Special Areas: Foreign Collaboration Agreements,

Mergers, Amalgamation, Reconstructions and Acquisitions, Capital Structure and

Dividend Policy, Depreciation and Other Allowances, New Industrial undertakings and

tax relief’s.


Reference:

1.Vinod, K. Singhania, and Kapil Singhania,2015, Direct Taxes: Law and Practice,

Taxmann publications, New Delhi.

2. 1.Lakhotia, R.N., and S. Lakhotia, Corporate Tax Planning Hand Book, Vision

Books,

New Delhi.

3. Mehrotra and Goyal, Income Tax Law and Practice, Sahitya Bhawan, Agra.

4. Kanga and Palkivala, Law & practice of Income Tax, N.M. Tripathi.

5.Bhagwati Prasad, Direct Taxes Law and Practice, Wishwa Prakash, New Delhi.

6.B.B. Lal, Direct Taxes Practice and Planning, Konark


39

FMCC9 – FOREIGN EXCHANGE MANAGEMENT

Course Aim: This course aims to educate the students on international financial

environment, foreign exchange transactions, exchange control, methods of international

payments and financing foreign trade.

Course Outcomes: At the end of the course, the students would

1. Understand the meaning of Foreign Exchange.

2. Calculate the appropriate forward rates by understanding the functioning of foreign

exchange market and its transactions.

3. Get exposure to regulations pertaining to exchange control, and

4. Get thorough knowledge about the financing of foreign trade and methods of trade

payments.

Unit I: Meaning of Foreign Exchange: Administration of foreign exchange – Functions of

a foreign exchange department – Foreign currency accounts: Nostro Account and Vostro

Account.

Unit II: Foreign Exchange Transactions: Spot and forward deals for the purchase of sale

of foreign currencies – Selection of buying and selling rates and calculation of appropriate

forward rates – Causes of fluctuations in exchange rates – Effects – Liberalised Exchange

Rate Mechanism (LERMS) – Full convertibility of currency – Unified Exchange Rate

System (UERS) – Full convertibility – SWIFT.

Unit III: Exchange Control: Objectives – Methods – Exchange control regulations relating

to exports and imports – Foreign Exchange Management Act, 1999 – India’s foreign

exchange problems – India’s recent foreign trade policy.

Unit IV: Methods of International Payments: Instruments issued by correspondent banks

– Foreign traveller’s cheques – Foreign inward remittance payment system – Methods of

settling debts in international trade – Letter of Credit: Meaning – Features – Mechanism –

Types – Advantages – Responsibilities and liabilities of parties – Uniform customs and

practice for documentary credits.

Unit V: Financing Foreign Trade: Financing exports – Packing credit advances –

Purchase and negotiation of bills – Collection of export bills – Advance against bills under

collection – Incentives – Financing deferred payment and turnkey projects – Other services

to exporters - Financing of Imports: Opening a letter of credit – Payment of import bills –

Import trust receipt – Deferred payment imports – Loan syndication – EXIM bank – Export

Credit Guarantee Corporation of India.


40

References

1. Williams L. Richards, 2015, Currency: Fundamentals and Functions, First Edition

Design Pub.

2. Chatterjee AK, Principles of Foreign Exchange, Vol.I & II, Himalaya Publishing House

Mumbai.

3. Jeevanandam C, Foreign Exchange – Practice, Concepts and Control, Sultan Chand &

Sons, New Delhi.

4. Andley KK & Mattoo VJ, Foreign Exchange: Principles and Practice, Sultan Chand &

Sons, New Delhi.

41

FMCC10 - PROJECT APPRAISAL AND EVALUATION

Course Aim: The course aims at imparting to the students knowledge of principles of

processes commonly used in project management. It will cover the tools and techniques

for identification, analysis, design, implementation, monitoring and evaluation of

programmes and projects from the point of view of all stakeholders.

Course Outcomes: The learning outcomes of the course are as follows.

1. The course will also sensitise the students to the difficulties and dilemmas that project

managers face in the implementation of programmes.

2. It will help them develop a comprehensive understanding of the various approaches and

tools required for special decision situations.

3. The course will also address the challenges while implementing sustainable successful

projects and also the project review process.

Unit I: Introduction: Capital Expenditure, Importance and Difficulties, Objectives,

Resource allocation, Criteria, Investment Strategies, Generation and Screening of

Investment ideas.

Unit II: Project Analysis: Market and Demand Analysis; Technical analysis; Financial

Estimates and Projections.

Unit III: Special Decision Situations: Choice Between Mutually Exclusive Projects of

Unequal Life; Optimal Timing, Determination of Economic Life; Interrelationship

between Investment and Financing Aspects; Inflation and Capital Budgeting.

Unit IV: Social Cost Benefit Analysis: Rationale; UNIDO approach; Net Benefit in

terms of Economic (Efficiency) Prices; Measurement of the Impact on Distribution;

Savings Impact and its Value; Income Distribution Impact; Adjustment for Merit and

Demerit Goods; Little Mirrlees Approach; Shadow Prices; SCBA by Financial

Institutions.

Unit V: Implementation: Project Organization, Project Planning, Project Control, Pre-

requisites for Successful Project Implementation, Network techniques: Development of

Project Net Work, Time Estimation, Scheduling, PERT, CPM, Network Cost System.

Project Review: Performance Evaluation, Abandonment Analysis, Administrative

aspects in Capital Budgeting.


Reference:

1. Harold Kerzner, 2015, Project Management 2.0, John Wiley and Sons.

Weightage: Problems-50% and Theory – 50%.

Project Report at business firms should be given as Assignment for evaluation

of CIA Marks.

42

2. Prasanna Chandra, 2014, Projects: Planning, Analysis, Selection, Implementation &

Review, Tata McGraw Hill, New Delhi.

3. Clark J.C., T, J. Hindelang, and R.E. Pritchard, Capital Budgeting: Planning and Control

of Capital Expenditure, Prentice Hall, New Delhi.

4. Little I.M.D. and S.A. Mirrlees, Project Appraisal and Planning for Developing

Countries, Heimann, London.

5. P.C.K. Rao, Project Management, Sultan Chand & Sons, New Delhi.

6. Marghin E. and A.K. Sen, Guideline for Project Evaluation, UNIDO, NewYork.

7. Bhavesh M. Patel, Project Management, Vikas Publishing House, New Delhi.

43

FMCC11 - DERIVATIVES AND RISK MANAGEMENT

Course Aim: To understand issues pertaining to pricing and hedging with options on

individual stocks and indexes, to examine forwards and futures contracts for equity indexes,

commodities, and currencies, and to analyze second generation derivative products such as

interest rates and the management of credit risks.

Course Outcomes: At the end of this course, the students should be able to:

1. To have a discussion and explain in detail financial instruments such as options, futures,

swaps and other derivative securities.

2. Describe and understand the economic environment in which such instruments operate.

3. Develop and employ theoretical valuation methods to price these financial instruments,

and

4. Apply these instruments in managing the risk of investing and hedging activity at the

individual and the corporate level.

Unit-I: Introduction: Meaning of Derivatives – Types of Derivatives - Uses of Derivatives

– Classification of Risk – Risk Management – Implications for Hedging – Approaches to

Risk Management – Risks in Derivative Trading.

Unit-II: Futures Contracts: Meaning – Futures Contracts Vs Forward Contracts –

Participants in Futures Market – Specification of Futures Contracts – Pricing of Futures –

Hedging Strategies Using Futures.

Unit III: Single Stock Futures and Stock Index Futures: Meaning – Hedging and

Speculation – Pricing –Insurance and Investment Purpose – Hedging the Value of a Portfolio

of shares using Index Futures – Adjusting Equity Portfolio Beta Using Index Futures.

Unit-IV: Options: Fundamentals of options – Call and Put Options – Combination of

Options: Trading Strategies – The Greek Letters.

Unit V: Option Pricing Model and Swaps: The Binomial Options Pricing Model – The

Black- Scholes Option Pricing Model – Swaps.


References:

1. Chance Don M, Roberts Brooks, 2015, Introduction to Derivatives and Risk

Management, 10th


2. Sundaram Janakiramanan, 2011, Derivatives and Risk Management, First Edition,

Pearson.

3. Chew, Lilian, Managing Derivative Risk, John Wiley, New Jersey.


44

4. Madhumathi and Ranganatham, Derivatives and Risk Management, First Edition, Pearson,

2011

5.Hull J, Options, Futures and Other Derivatives, Prentice Hall of India, New Delhi.

6.Marshall, John F and V.K. Bansal, Financial Engineering – A Complete Guide to

Financial Innovation, Prentice Hall of India, New Delhi.

7.Franklin R. Edwards Cindy W.Ma, Futures & Options, Mc Graw- Hill International

Editions. Economic services, Singapore

8.Kolb, Robert W., Understanding Futures Markets, Prentice Hall of India, New Delhi.

45

FMCC12 –BEHAVIORAL FINANCE

Course Aim: This course aims to investigate psychology's contribution to finance and

economics and discuss the theories to enable the students to understand the decision behavior

of an individual investor within a market context, which would help them have a better

understanding of financial market dynamics.

Course Outcomes: The learning outcomes of the course are to

1. Identify the limits to arbitrage and challenges to market efficiency

2. Understand whether the investors in the financial markets behave the way that the

conventional finance assumes

3. Explain better-than-average effect, excessive optimism and illusion of control by

discussing overconfidence, and

4. Question the predictability of financial asset price movements by employing

psychological principles

Unit-I: Standard Finance- Introduction-Modern Portfolio Theory-Miller and Modigliani

Theory-Capital Asset Pricing Model-Arbitrage Pricing Theory (APT)-The Random Walk

Hypothesis- Expected Utility Theory (EUT)-Efficient Market Hypothesis (EMH).

Behaviour and Decision Making-Foundations of Behaviour-Cognition-Emotional Bias-

Behavioural Models-Perception-Causes of Behaviour Difference-Motive-Decision Making-

Behavioural Decision Making-Biases in Decision Making.

Unit-II: Evolution of Behavioural Finance: Introduction-Assumptions of Behavioural

Finance-Building Blocks ofBehavioural Finance-Elimination of Uncertainty-Important

Contributors-History of Behavioural Finance.

NeuroFinance: The Brain-Neural Process during Financial Decision Making-Experiments in

Neurofinance-The Future of Neurofinance.

Unit-III: Theories of Behavioural Finance: Introduction-Asymmetric Information-

Egocentricity-Human Behavioural Theories-Heuristics-Biases-Emotional Bias-Statistical

Bias-Cognitive Bias-Other Irrational Investment Behaviour-Bias-Group think Bias-

Interaction between Bias-Outcomes of Biases-Dealing With Biases-Overcoming the Biases-

Debiasing-Prospect Theory-Uses of Behavioural Finance.

Unit-IV : Financial Market Anomalies: Introduction-Fundamental Anomalies-Technical

Anomalies, Calendar Anomalies-Accounting Anomalies.

Market Bubbles: The First Known Stock Market Bubbles-Stock Market Bubbles in the

Recent History-Identification of a Stock Market Bubbles-Classification of Bubbles-

Behavioural Finance Explanation of Bubbles- Investor Behaviour During Bubbles-Causes of

Bubbles.

Unit-V : Forensic Accounting: Introduction-Classification of Fraud-Behavioural Aspects of

Fraud-Types of Fraud Perpetrators-Origin and Growth of Forensic Accounting-Forensic

Auditing-Fraud Theories-Studies on Fraud Behaviour-Tools in Forensic Accounting-Anti

Fraud Measure- E-Fraud-Forensic Accounting in India-Government Agencies that

Combat Frauds.

46


Reference

1. Richard H Thaler, 2015, Misbehaving : The Making of Behavioral Economics,

Penguin.

2. M.M.Sulphey, 2014,Behavioural Finance. PHL Learning Private Limited.

3. Prasanna Chandra, 2008, Investment Analysis and Portfolio Management, 3rd

Edition, TataMc Graw Hill.

4. Malena Johnsson, Henrik Lilndom and Peter Paltan, 2002, Behavioral Finance –

And the Change of Investor Behavior during and After the Speculative Bubble. 5. Martin Sewell, 2007, Behavioral Finance.

6. Brian Bruce, Handbook of Behavioral Finance, Edward Elgar Publishing.

7. Lucy Ackert and Richard Deaves, Behavioral Finance: Psychology, Decision

Making and Markets

47

FMCC13 - INTERNATIONAL FINANCIAL MANAGEMENT

Course Aim: To study the role that international trade and investment, currency movements,

international financial markets, and international agreements and institutions play in the

management of multinational corporations.

Course Outcome: At the end of this course the students would be able to:

1. Understand international capital and foreign exchange market

2. Identify and appraise investment opportunities in the international environment

3. Identify risk relating to exchange rate fluctuations and government policies and develop

strategies to deal with them, and

4. Understand theoretical and practical issues involved in managing international investment

portfolio.

Unit I: Foundations of International Financial Management: International Business and

its Mode – Nature and Scope of International Financial Management – Multi National

Corporations – International Financial Management and Domestic Financial Management -

Developments in International Monetary System: Specie Commodity Standard – Gold

Standard – Bretton Woods System of Exchange Rate – Exchange Rate Regime Since 1973-

International Liquidity – IMF Solution for Financial Crisis.

Unit II: Foreign Exchange Market: Features – Major Participants – Spot Market –

Forward Market

Exchange Rate Mechanism: Exchange Rate Quotations – Nominal, Real and Effective

Exchange Rate – Determination of Exchange Rate in Spot Market and Forward Market –

Factors Influencing Exchange Rate – Theories of Exchange Rate Behaviour - Need for

Forecasting Exchange Rates – Forecasting Techniques – Forecasting in a Controlled Regime.

Unit III: Foreign Exchange Exposure Management: Translation Exposure Meaning –

Methods of Translation Exposure – Functional Versus Reporting Currency – Four

Translation Methods – Measurement of Transaction Exposure – Transaction Exposure Based

on Currency Variability – Managing Transaction Exposure – Measurement of Currency

Variability – Transaction Exposure Vs Economic Exposure – Measuring Economic Exposure

– Managing Economic Exposure – Corporate Philosophy for Exposure.

Unit IV: International Financing Decisions: Channels for Flow of Funds – Changing

Structure of International Financial Market – Sources and Forms of Funds – Process of

Internationalization of Banks – Financial Intermediation Function – Direction and Purpose

of Lending – The Credit Creation Function – International Equities – International Bonds –

Secondary Market Operations – Short Term and Medium Term Instruments - International

Working Capital Policy – International Cash management – Receivables and Inventory

Management - Financing of Current Assets

Unit V: International Investment Decision: Theories of Foreign Direct Investment – Cost

and Benefits of FDI – Strategy for FDI – Control of MNCs – Evaluation Criteria in

International Capital Budgeting – Computation of Cash Flow – Cost of Capital – Adjusted

Present Value Approach – Sensitivity Analysis – Real Options and Project Appraisal –

48

Evaluating M & A – Non financial factors in Capital Budgeting – Introduction to

International Portfolio Investment - Benefits, Problems and Modes of International Portfolio

Investment - Concept and Identification of Optimal International Investment Portfolio.


Reference:

1. Jeff Madura, 2015, International Financial Management, 12th

Ed., Cengage Learning.

2. Vyuptakesh Sharan, International Financial Management, 5th

Edition, 2009, PHI Learning

Private Limited, New Delhi.

3. Cheol S. Eun, Bruce G. Resnick, 1998International Financial Management, 2nd

Ed.,

Tata McGraw Hill.

4. Apte, P.G., 1998 International Financial Management, 2nd

Ed., Tata McGraw Hill.

5. Maurice D. Levi, 1996 International Finance, 3rd

Ed., Mc Graw Hill.

6. Alan C. Shapiro, 1996 Multinational Financial Management, 4th

Ed., Prentice Hall

7. India.

8. Madhu Vij, 2005, International Financial Management, 2nd

Edition, Excel Books.


49

FMCC14 - STOCK MARKET PRACTICES

Course Aim: The aim of the course is to provide practical exposure to the students on the

functioning of the stock market. The stock market practices like trading mechanism, clearing

and settlement, demat trading were explained to the students.

Course Outcomes: At the end of the course, the students would be able to

1. Understand the trading mechanism in stock exchanges

2. Get clear knowledge on the clearing and settlement process, and

3. Understand the trading pattern of the spot market, demat trading and derivatives

trading.

Unit I: Trading Mechanism in Stock Exchanges: Introduction- Market Types- Market

Phases- Invoking an Inquiry Screen- Order Management- Trade Management- Auction-

Limited Physical Market- Retail Debt Market- Internet Broking- Wireless Application

Protocol.

Legal framework of Securities Market: SEBI Guidelines Relating to the Functioning of Stock

Exchanges and Intermediaries; SEBI and Investor Protection; Securities Contract Regulation

Act and Listing of Securities; Regulations and Guidelines for FIIs.

Unit II: Clearing and Settlement Process: Introduction- Transaction cycle- Settlement

Process- Settlement Agencies- Risks in Settlement- Settlement Cycle- Securities Settlement-

Funds Settlement- Shortages Handling- Risk Containment Measures- International Securities

Identification Number- Clearing Software- Reports- File Transfer Protocol.

Unit III: Trading pattern in BSE and NSE: Security Market Indicators- Need and

Importance; BSE Sensex, NSE, NIFTY and other Index Numbers.

Unit IV: Demat Trading: Meaning and Significance; Role of Depositories and Custodian of

Securities in Demat Trading; SEBI Guidelines and other Regulations relating to Demat

Trading; Procedure of Demat Trading- Introduction to Online- Trading.

Unit V: Derivatives Trading: Approving for derivatives trading, Derivatives market at

NSE, Trading mechanism, membership criteria, Turn over, Clearing and settlement, Risk

Management system.


Reference: 1. Keith Dickinson, 2015, Financial Markets Operations Management, John Wiley &

Sons.

2. Amit Bhargava, 2003, Guide to SEBI (Disclosure & Investor Protection)

Guidelines, Taxmann Publications.

3. Dave, 2007, Securities Markets & Products, 2nd

Ed., Taxmann Publications.

4. V.A. Avadhani, 1997, Indian Capital Market, 1st Ed., Himalaya Publishing House.

5. S.Gurusamy, 2004, Financial Markets & Institutions, 1st Ed., Thomson Books.

6. Tadashi Endo, 1998, The Indian Securities Market A Guide for foreign & Domestic

Investors, 1st Ed., Vision Books.