INTEGRATED M.COM.

SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 321
Name of the Course – COMPUTER AND ITS APPLICATION IN ACCOUNTING AND
TAXATION
(L – 3 T – 0 P – 1 CR - 4)
Objective
To familiarize the students with I T and its application in accounting and taxation

Unit – 1: Information Technology and Business – An Overview (Lecture 5/ Weight 15%)

1.1 Concepts of data, information and computer based information system
1.2 Impact of information technology on business
1.3 Types of Information System - Transaction Processing System, Management
Information System, Decision Support System, Knowledge Management System - and
their implementation at managerial levels
1.4 Recent trends in information technology – Enterprise computing, mobile
communication, smart card

Unit – 2: Number System and Representation of Data in Computing System

(Lecture 2/ Weight 5%)
2.1 Data representation – bits, bytes, KB, MB, GB, TB
2.2 Concept of Number systems, Binary arithmetic [addition, subtraction using 1’s & 2’s
complement method]
2.3 Computer Codes – BCD, EBCDIC, ASCII

Unit – 3: Fundamentals of Computer (Lecture 5/ Weight 15%)

3.1 Components of digital computer and their functions
3.2 Basic concepts of hardware & software
3.3 Relationship between hardware and software
3.4 Types of software: System software – Operating systems, Programming Languages
Translator – Assembler, Compiler and Interpreter, Utilities
3.5 Application software

Unit – 4: Data organization and Data Base Management System (Lecture 5/ Weight 10%)
4.1 Data organization: Character, field, record, file and database; Types of Data Processing
Systems, File Organizations, Traditional file organization Vs. Database File
organization
4.2 Data Base Management System: Concept of Data Base Management System, Important
terms of Database; Basic ideas of Data Warehouse and Data mining

Unit – 5: Data Communication and Computer Network (Lecture 3/ Weight 5%)

5.1 Data Communication: Concept of Data communications, Transmission Modes;
Communication Media; Wireless and satellite communication, Wireless Broadband,
WAP, Network components – Bridge, Switch, Router, Gateway
5.2 Computer Networks: Network Concept, Types: LAN, WAN, MAN, VAN, SAN;
Various Topologies: Bus, Star, Ring, Mesh, Tree

Unit – 6: Brief Introduction to Internet and Security Issues (Lecture 5/ Weight 15%)
6.1 Meaning of Internet
6.2 Concepts of Internet Intranet and Extranet, IP Address, URL, Domain name System
6.3 Internet Protocols - TCP/IP, UDP, FTP, TELNET
6.4 HTML, DHTML AND XML
6.5 Security threats - Virus, Trozan, Hacking, Spam
6.6 Security Measures - Firewall, Antivirus software, Digital Signature; Concept of data
Encryption & Decryption; Symmetric and asymmetric encryption; Digital envelope

Unit – 7: Problem Solving Tools: Using Decision Task (Lecture 20/ Weight 35%)
7.1 Flow Charts, Concepts, Advantage and Disadvantage of flow chart, Problem Solving
using flow chart
7.2 Decision Table - Concepts, Advantage and Disadvantage, Problem solving using
decision task
7.3 Using MS Excel as an Audit tool - Introduction, Case Studies, Data Analysis &
Reporting Features
7.4 RDMBS Concepts - Database Concepts, Terminology, Models - Introduction; RDBMS,
Data Modelling using ERD, DB Design using Normalization
7.5 MS Access - Creating Databases & Tables – Introduction; Event Handling & Report
Generation; Using Macros - An Intro.; Using Queries - An Intro.; Case Study
7.6 Structured Query Language (SQL), Introduction to Data Definition Language
Statements & Data Manipulation Language Statements (Creating Tables, Selecting Data,
Inserting Data, Updating Records, Dropping a Table, Querying Database, Aggregating
Data, Grouping, Ordering Data, Joining Tables etc.) & Case Studies
7.7 CAAT Tools (Computer Accounts & Auditing Technique) - Capabilities & Importing
Data from Accounting & other Application Systems - Introduction; Analytical Reports,
Duplicates/ Gaps. Sorting & Charting; Stratification, Summarization, Statistics & Aging
- Introduction; Sampling, Macros, Audit Trail, Pivot Tables - Introduction

Unit – 8: Practical
Tally and other Accounting, Taxation related software

Text Book:
1. Introduction to Information Technology; I. T. L. Education Solutions Limited,; Pearson
Education India; 7th Edition, 2008

Suggested Readings:
1. Introduction to Information Technology; Rainer R.K. and Turban E.; Wiley; 2nd Edition,
2002
2. Computer Fundamentals (With CD); Sinha P. & Sinha P.; BPB Publication; 6th Edition,
2003
3. Information Technology for Management; Behl; Tata McGrow Hill; 2nd Edition, 2012
4. Electronic Commerce: Framework, Technologies and Applications; Bhasker; Tata
McGraw Hill; 4th Edition, 2013
 INTEGRATED M.COM.
SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 322
Name of the Course – AUDITING
(L – 3 T – 0 P – 0 CR- 3)

Objective
To understand objective and concepts of auditing and gain working knowledge of generally
accepted auditing procedures and of techniques and skills needed to apply them in audit

Unit – 1: Introduction and Auditing Procedure and Techniques (Lecture 5 / Weight 15%)
1.1 Definition, Nature, Scope and Objectives of Independent Financial Audit, Limitation
1.2 Basic Principles Governing an Audit-Relation between Accounting and Auditing
1.3 Errors and Fraud-Concepts, Means of doing Fraud, Purpose, Conditions which increase
the Risk of Fraud and Error; Auditor’s responsibility towards detection and reporting
1.4 Classification, Objective wise, Periodicity wise, Technique wise
1.5 Social objectives of auditing, Auditing Engagement, Audit Planning, Audit Programme
1.6 Documentation: Audit Working Papers, Ownership and Custody of Working Papers,
Audit File (Permanent, Current), Audit note Book, Audit Memorandum, Audit
Evidence: Concept, Need, Procedure to obtain Audit Evidence, Sources and Reliability,
Methods
1.7 Preparation before Commencement of a New Audit

Unit – 2: Internal Control, Internal Check and Internal Audit (Lecture 5 / Weight 10%)
2.1 Internal Check-Definition, Objective, Preparation of check-lists
2.2 Internal Control-Definition, Objectives, Evaluation, Internal control in Computerized
Environment, ICQ and its Preparation, Comparison with Internal Check
2.3 Internal audit-Definition, Objectives, Regulatory Requirements (Companies Act),
Reliance by Statutory Auditor on Internal Auditor’s Work
2.4 Audit Risk- Concept, Types and their Assessment Procedure

Unit – 3: Audit Sampling, Test checking and Analytical Procedure

(Lecture 5 / Weight 10%)
3.1 Concept, Need, and Types of Sampling, Sampling Risk, Stages in Audit Sampling
3.2 Test Checking, Auditing in Depth and Cut-Off checking
3.3 Analytical Procedure: Nature and Application of Analytical Procedure, Tools and
Techniques of Analytical Procedure, Extent of Reliance on Analytical Procedure, Use of
analytical procedure for Substantive Testing

Unit – 4: Vouching, Verification and Valuation of assets and liabilities

(Lecture 5 / Weight 10%)
4.1 Vouching- Meaning, Objectives, Vouching of Different Items (Receipts and Payments
Related)
4.2 Verification: Meaning and importance of Verification and valuation of assets,
verification vs. valuation, general principles, and problems of verification and valuation,
Verification and valuation – intangible assets, fixed assets, investments, current assets,
fictitious assets, contingent assets, Verification and valuation of liabilities – fixed and
long term liabilities, current liabilities, contingent liabilities

Unit – 5: Company Audit (Lecture 5 / Weight 15%)

5.1 Qualification, Disqualification, Appointment, Reappointment, Removal, Remuneration
of Auditors
5.2 Audit Ceiling, Status, Power, Duties and Liabilities of auditors
5.3 Branch Audit, Joint Audit, Special Audit
5.4 Maintenance of Books of Account, Related Party Disclosures, Segment Reporting
5.5 Divisible Profit, Dividend and Depreciation (Companies Act, Standards on Accounting,
Legal Decisions and Auditor’s Responsibility).
5.6 Representations by Management, Contents of Annual Report
5.7 Specific provisions for accounts in the Companies Act

Unit – 6: Audit Report and Certificate (Lecture 5 / Weight 10%)

6.1 Definition, Distinction between Report and Certificate, Types of Reports/Opinion
(Clean, Qualified, Disclaimer, Negative and Piecemeal)
6.2 Contents of Audit Report (As per Companies Act and Standards on auditing)
6.3 True and Fair View (Concept and Guiding Factors), Materiality (Concepts and
Relevance), Limited Review, Disclosures
6.4 Certificate on Corporate Governance, Cash Flow Statement Reporting

Unit – 7: Audit of Different Institutions (Lecture 5 / Weight 10%)

7.1 Banks: Legislation Relevant to Audit of Banks, Approach to Bank Audit, Internal
Control Evaluation, Non-Performance Assets (Concept, Provisions), Long Form Audit
Report
7.2 Insurance Companies: Legislation Relevant to Audit of Insurance companies (Life and
General Insurance), Review of Internal Control, Audit Report (Matters as per IRDA)
7.3 Educational Institutions, Hospital, Local Bodies and Non- Profit Seeking Organizations
(including NGOs): Features and Basic Principles of Government Audit
7.4 Comptroller and Auditor General and its Constitutional Role

Unit- 8: Investigations (Lecture 5 / Weight 10%)

8.1 Meaning, purpose, types
8.2 Distinction between Investigation and auditing approach to the investigation
8.3 Due diligence review, valuation
8.4 Investigation to detect fraud, misappropriation and defalcations
Unit – 9: Emerging Issue in Auditing (Lecture 5 / Weight 10%)
9.1 Cost Audit, Management Audit, Tax Audit, Systems Audit, Social Audit, Environment
Audit, Energy Audit, Performance Audit, Forensic Audit, Peer review (Concepts,
Objectives and Regulatory Requirements)
9.2 Ethics in Auditing: Auditor’s Independence
9.3 Standards on Auditing (Concepts, Purpose and Present Position as to Number and
Title as issued by ICAI)

Text Book:
1. Auditing; Jha A.; Taxmann Publication; 7th Edition, 2011
Suggested Readings
1. Contemporary Auditing; Gupta K.; Tata McGraw Hills, 6th Edition, 2004
2. Auditing and Assurance Standards issued by the ICAI, New Delhi
3. Auditing; Jha A.; Taxmann Publication; 7th Edition, 2011
4. Auditing Principles and Practice; Sharma S. D.; Taxmann Publication; 3rd Edition, 2006
5. Fundamentals of Auditing; Basu; Dorling Kindersley (RS); 1st Edition, 2008
6. Principles and Practice of Auditing; Pagare D.; Sultan Chand And Sons; 11th Edition,
2007
7. Systematic Approach to Auditing & Assurance; Garg K.; Bharat Law House Pvt. Ltd;
14th Edition, 2013
 INTEGRATED M.COM.
SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 323
Name of the Course – MANAGEMENT ACCOUNTING
(L – 3 T – 1 P – 0 CR- 4 )

Objective
The objective of this subject is to enable the students to use the management accounting
techniques for decision-making

Unit – 1: Concept of Management Accounting (Lecture 5/ Weight 10%)

1.1 Meaning, nature, scope and functions
1.2 Role of management accounting in decision making process
1.3 Management Accounting vs financial accounting
1.4 Different tools and techniques of management accounting
1.5 Use of accounting information for management purpose
1.6 Application of computer in Management decision making process

Unit – 2: Marginal Costing and Management Decisions (Lecture 12/ Weight 30%)
2.1 Meaning and definition of marginal cost and marginal costing
2.2 Assumptions of marginal costing, Marginal Costing vs absorption costing.
2.3 Break Even Analysis
2.4 Cost volume profit analysis Cost volume Profit Ratio (CVP assumptions and uses,
Graphical presentation, profit graph, Margin of Safety, determination of cost
indifference point)
2.5 Managerial application of marginal costing
2.6 Advantages and disadvantages of marginal costing
2.7 Use of marginal costing for marginal decision making

Unit – 3: Budget and Budgetary Control (Lecture 8/ Weight 20%)

3.1 Meaning of budget and budgetary control
3.2 Objectives, merits and limitations of budgetary control
3.3 Installation of budgetary control system (Budget Committee, Budget manual, principal
budget factor, preparation and monitoring procedure)
3.4 Classification of budgets according to time, function and flexibility
3.5 Preparation of budget (flexible budget and cash budget)

Unit – 4: Standard costing and Variance Analysis (Lecture 5/ Weight 10%)

4.1 Meaning of standard cost, standard costing
4.2 Advantages and application of standard costing
4.3 Distinction between standard costing and budgetary control
4.4 Variance Analysis: material, labour and overheads
Unit – 5: Responsibility Accounting and Transfer Pricing (Lecture 5/ Weight 10%)
5.1 Responsibility Accounting: Concept, features, steps, responsibility centres
5.2 Transfer pricing

Unit – 6: Management Reporting (Lecture 5/ Weight 10%)

6.1 Meaning of Management Reporting
6.2 Requisites of a Good Reporting System
6.3 Principles of Good Reporting System
6.4 Kinds of Reports
6.5 Drafting of Reports under different Situations

Unit – 7: Emerging IssueS in Management Accounting (Lecture 5/ Weight 10%)

7.1 ABC, ABM, Activity Based Budgeting
7.2 Total Quality Management
7.3 Target Costing
7.4 Life Cycle Costing, Value Chain Analysis, MRP, Theory of Constraint

Text Book:
1. Management Accounting - Text Problems and Cases; Khan M. Y. and Jain P.K.; Tata
McGrew Hill Co; 6th Edition, 2011

Suggested Books:

1. Management Accounting: Information for Decision-Making and Strategy Execution;

Atkinson A.A., Kaplan R.S., Matsumura E.M. and Young S.M.; Prentice Hall; 6th
Edition, 2011
2. Introduction to Management Accounting; Horngren C.T., Sundem G.L., Schatzberg
J.O., and Burgstahler D.; Prentice Hall; 16th Edition, 2013
3. Cost and Management Accounting; Drury; Cl Emea; 7th Edition, 2011
4. Principles of Management; Sharma R. K. & Gupta S. K.; Kalyani Publishers; 2nd
Edition, 2003
 INTEGRATED M.COM.
SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 324
Name of the Course – PUBLIC FINANCE
(L – 3 T – 1 P – 0 CR- 4)

Objective:
The objective of the course is to introduce the students with the basics of public finance

Unit – 1: Origin and Development of Public Finance (Lecture 6/ Weight 15%)

1.1 Meaning and scope
1.2 Public finance and federal finance, public finance and private finance
1.3 Principle of maximum social advantage

Unit – 2: Principles of Taxation and Government Expenditure (Lecture 5/ Weight 10%)

2.1 Principle of maximum advantage
2.2 Allocation of public goods
2.3 Ability to pay approach
2.4 Excess burden of taxes

Unit – 3: Raising of Public Funds (Lecture 8/ Weight 20%)

3.1 Sources and classification of public revenues
3.2 Incidences and shifting of taxes
3.3 Effect on production, employment
3.4 Distribution and stability
3.5 Public debt and fiscal deficit

Unit – 4: Public Debt Management and Taxation (Lecture 5/ Weight 10%)

4.1 Public Debt Management
4.2 Taxation

Unit – 5: Central Finances (Lecture 5/ Weight 10%)

5.1 Sources and uses of funds
5.2 Effects of Fiscal Policy
5.3 Relation between planning and central budgeting

Unit – 6: State Finances (Lecture 5/ Weight 10%)

6.1 Sources and uses of funds
6.2 Issues of federalism

Unit – 7: Expenditure Structure and Policy (Lecture 5/ Weight 10%)

7.1 Public Expenditure Growth
7.2 Causes of Expenditure Growth
7.3 Growth and type of expenditure
7.4 Expenditure evaluation principle- decision rules, fundamentals of Project evaluation,
types of benefit and costs, discounting and the cost of capital, risk and economic change

Unit – 8: Indian Fiscal Policy, Deficit financing and Stabilization

(Lecture 6/ Weight 15%)
8.1 Indian Fiscal Policy
8.2 Deficit financing
8.3 Principles of stabilization policy- multiples model with investments fixed and
investment variables, Stabilization in open economy, inflation, rational expectations

Text Books:

1. Public Finance in theory and practice; R Musgrave & PV Musgrave

2. Public Finance; Bhatia H. L.; Vikas Publishing House; 27th Edition, 2012

Suggested Readings
1. Public Finance; Rosen H.S.; Tata McGraw Hill; 8th Edition, 2012
2. Public Finance in Theory and Practice; Musgrave R. A.; Tata McGraw Hill Education
Private Limited; 5th Edition, 2004
3. Public Finance; Hajela T.N.; Ane Books; 4th Edition, 2009
4. Economic Survey, Ministry of Finance, Government of India
5. Currency and Finance, Reserve Bank of India
6. Annual Reports of Reserve Bank of India
 INTEGRATED M.COM.
SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 325
Name of the Course – TAX PLANNING AND PROCEDURES
(L – 3 T – 1 P – 0 CR- 4 )
Objective
To familiarize the students with tax planning and procedures
Unit – 1: Introduction (Lecture 3/ Weight 5%)
1.1 Basic concepts of Tax planning and procedures in respect of different heads

Unit – 2: Tax Planning and Business Decisions (Lecture 12/ Weight 30%)
2.1 Concept and difference between tax planning, tax avoidance and tax evasion
2.2 Objectives, requisites, factors and types of tax planning
2.3 Tax Planning with reference to setting up a new business
2.4 Tax Planning with reference to financial management decisions
2.5 Tax planning in respect of employees’ remuneration, dividend policies (including inter
corporate dividend), bonus shares
2.7 Tax planning in respect of non – residents
2.8 Tax Planning in respect of amalgamation and demerger of companies

Unit – 3: Specific Management Decision (Lecture 12/ Weight 30%)

3.1 Make or buy, own or lease, own fund vs. borrowed fund for financing of assets, shut
down or continue, sell in domestic market or export, repair or replacement

Unit – 4: Deferred Tax (Lecture 5/ Weight 10%)

4.1 Deferred tax assets, Deferred tax liabilities
4.2 Reassessment of recognized and unrecognized deferred tax assets and deferred tax
liabilities (in view of provisions of IAS-12 & AS – 22)

Unit – 5: Double Taxation (Lecture 5/ Weight 10%)

5.1 Double taxation relief
5.2 Provisions regulating transfer pricing
5.3 Advance rulings

Unit – 6: Business Restructuring (Lecture 5/ Weight 10%)

6.1 Tax planning with reference to business restructuring
6.2 Amalgamation
6.3 Demerger
6.4 Slump sale
6.5 Conversion of sole proprietary concern/partnership firm into company
6.6 Transfer of assets between holding and subsidiary companies

Unit – 7: Emerging Areas (Lecture 3/ Weight 5%)

7.1 Direct Tax Code
7.2 Other Emerging Areas
Text Book:
1. Direct Taxes – Law and Practice; Singhania V.K. and Singhania K.S.; Taxmann
publication

Suggested Readings:
1. Direct Taxes; Lal B.B.; Konark Publisher (P) ltd.
2. Direct Taxes – Law and Practice; Prasad B.; Wishwa Prakashana
3. Direct Taxes – Law and Practice; Mehrotra and Goyal; Sahitya Bhavan Publication
4. Law and Practice of Income Tax; Dinakar P.; Sultan Chand and sons
Latest edition of the books should be used

INTEGRATED M.COM.
 SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 341
Name of the Course – COMPUTER AND ITS APPLICATION IN BANKING AND
FINANCE
(L – 3 T – 0 P – 1 CR- 4 )
Objective
To familiarize the students with I T and its application in Banking and Finance

Unit – 1: Information Technology and Business – An Overview (Lecture 5/ Weight 15%)

1.1 Concepts of data, information and computer based information system
1.2 Impact of information technology on business
1.3 Types of Information System - Transaction Processing System, Management
Information System, Decision Support System, Knowledge Management System - and
their implementation at managerial levels
1.4 Recent trends in information technology – Enterprise computing, mobile
communication, smart card

Unit – 2: Number System and Representation of Data in Computing System

(Lecture 2/ Weight 5%)
2.1 Data representation – bits, bytes, KB, MB, GB, TB
2.2 Concept of Number systems, Binary arithmetic [addition, subtraction using 1’s & 2’s
complement method]
2.3 Computer Codes – BCD, EBCDIC, ASCII

Unit – 3: Fundamentals of Computer (Lecture 5/ Weight 15%)

3.1 Components of digital computer and their functions
3.2 Basic concepts of hardware & software
3.3 Relationship between hardware and software
3.4 Types of software: System software – Operating systems, Programming Languages
Translator – Assembler, Compiler and Interpreter, Utilities
3.5 Application software

Unit – 4: Data organization and Data Base Management System (Lecture 5/ Weight 10%)
4.1 Data organization: Character, field, record, file and database; Types of Data Processing
Systems, File Organizations, Traditional file organization Vs. Database File
organization
4.2 Data Base Management System: Concept of Data Base Management System, Important
terms of Database; Basic ideas of Data Warehouse and Data mining

Unit – 5: Data Communication and Computer Network (Lecture 3/ Weight 5%)

5.1 Data Communication: Concept of Data communications, Transmission Modes;
Communication Media; Wireless and satellite communication, Wireless Broadband,
WAP, Network components – Bridge, Switch, Router, Gateway
5.2 Computer Networks: Network Concept, Types: LAN, WAN, MAN, VAN, SAN;
Various Topologies: Bus, Star, Ring, Mesh, Tree
Unit – 6: Brief Introduction to Internet and Security Issues (Lecture 5/ Weight 15%)
6.1 Meaning of Internet
6.2 Concepts of Internet Intranet and Extranet, IP Address, URL, Domain name System
6.3 Internet Protocols - TCP/IP, UDP, FTP, TELNET
6.4 HTML, DHTML AND XML
6.5 Security threats - Virus, Trozan, Hacking, Spam
6.6 Security Measures - Firewall, Antivirus software, Digital Signature; Concept of data
Encryption & Decryption; Symmetric and asymmetric encryption; Digital envelope

Unit – 7: Problem Solving Tools: Using Decision Task (Lecture 20/ Weight 35%)
7.1 Flow Charts, Concepts, Advantage and Disadvantage of flow chart, Problem Solving
using flow chart
7.2 Decision Table - Concepts, Advantage and Disadvantage, Problem solving using
decision task
7.3 Using MS Excel as an Audit tool - Introduction, Case Studies, Data Analysis &
Reporting Features
7.4 RDMBS Concepts - Database Concepts, Terminology, Models - Introduction; RDBMS,
Data Modelling using ERD, DB Design using Normalization
7.5 MS Access - Creating Databases & Tables – Introduction; Event Handling & Report
Generation; Using Macros - An Intro.; Using Queries - An Intro.; Case Study
7.6 Structured Query Language (SQL), Introduction to Data Definition Language
Statements & Data Manipulation Language Statements (Creating Tables, Selecting Data,
Inserting Data, Updating Records, Dropping a Table, Querying Database, Aggregating
Data, Grouping, Ordering Data, Joining Tables etc.) & Case Studies
7.7 IT applications in banking: ATM, Online Banking, MICR, Microfilm & Microfiche, ,
CBS, Networking, RTGS/NEFT/NDS, security system, checks and controls RBI
Guidelines on IT security, Cyber-crime overview and fraud management

Unit – 8: Practical
Banking and Finance related software

Text Book:
1. Introduction to Information Technology; I. T. L. Education Solutions Limited, Itl;
Pearson Education India; 7th Edition, 2008

Suggested Readings:
1. Introduction to Information Technology; Rainer R.K. and Turban E.; Wiley; 2nd Edition,
002
2. Computer Fundamentals (With CD); Sinha P. & Sinha P.; BPB Publication; 6th Edition,
2003
3. Information Technology for Management; Behl; Tata McGrow Hill; 2nd Edition, 2012

4. Electronic Commerce: Framework, Technologies and Applications; Bhasker; Tata

Mcgraw Hill; 4th Edition, 2013
 INTEGRATED M.COM.
SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 342
Name of the Course – INDIAN FINANCIAL MARKET AND FINANCIAL SYSTEM
(L – 3 T – 0 P – 0 CR- 3)

Unit – 1: Financial System (Lecture 5/ Weight 10%)

1.1 Concept of finance, savings and investment
1.2 Meaning and significance of finance in economy
1.3 Components (instruments, markets, etc.)
1.3 Kinds of finance: Rudimentary finance, Direct and Indirect finance
1.4 Role of financial intermediaries
1.5 The structure of Indian Financial System
1.6 Recent developments in the Indian Financial system

Unit – 2: Money and Indian Banking System (Lecture 16/ Weight 30%)
2.1 Role and Functions of banks -Regulatory provisions / enactments governing banks
2.2 Alternative measures to money supply in India, their different components
2.3 Commercial Banks: Importance and functions
2.4 Structure of commercial banking system in India, distinction between Commercial and
Central bank
2.5 Credit Creation Process of Commercial banks
2.6 High powered money: meaning and uses
2.7 Concept of Money Multiplier
2.8 The Reserve Bank of India: Functions; Instruments of Monetary and Credit control
2.9 Concept of Development bank and their needs in Indian financial system: difference
with Commercial banks
2.10 Major Development banks and their functions (IFCI, IDBI, ICICI, EXIM Bank, SIDBI,
SFCs, NABARD)
2.11 Retail banking: Approach, products, marketing
2.12 Wholesale Banking
2.13 International banking

Unit – 3: Interest Rate Structure (Lecture 4/ Weight 10%)

3.1 Meaning, Gross and Net interest rate: their difference
3.2 Nominal and Real interest rate: their difference; Differential interest rate
3.3 Causes of variation of interest rate, relationship between interest rate and economic
progress
3.4 Administered and Market determined interest rate
3.5 Recent changes in interest structure in India
Unit – 4: Money Market (Lecture 7/ Weight 20%)
4.1 Nature & Deployment of Surplus Funds and Raising of Short-term funds,
Characteristics of Money Market
4.2 Regulatory framework of RBI, Fixed Income, Money Market and Derivatives
Association and Foreign Exchange Dealers Association of India
4.3 Call Money Market-Players, Utility, Money market Instruments: Commercial Paper
4.4 Certificates of Deposits, Bills of Exchange, Treasury Bills (T-Bills), Bill Discounting
4.5 Factoring, Letter of Credit, Money Market Mutual Funds, Fixed Maturity Plans

Unit – 5: Capital Market (Lecture 10/ Weight 25%)

5.1 Primary Markets: IPO, FPO, Offer for Sale, Private Placement, Preferential Allotment,
Institutional Placement Procedures, Qualified Institutional Placement, Rights Issue,
Bonus Issue
5.2 Primary Markets: Prospectus, DRHP, Shelf Prospectus, Red Herring prospectus, Private
Investment in Public Equity (PIPE), SEBI (Issue of Capital & Disclosure Requirements)
Regulations, 2009, Lead Manager (Pre & Post Issue Activities), Due Diligence Review,
Underwriting obligations
5.3 Primary Markets: Basis of Allotment, Book-building, Pre-issue and Post-issue activities,
Green-shoe Option, Pre-listing and Post-listing activities, Listing Agreement
5.4 Secondary Markets: Opening day (listing), Continuing compliance obligations and
disclosures: Post-listing activities, Corporate Actions, Requirements for Continuing
Listing, Corporate Governance Norms
5.5 Disclosures as per Listing Agreement: Price Sensitive Information, Material Changes,
Quarterly results
5.6 Functioning of an Exchange: Margining, Trading, Clearing and Settlement, Trade
Guarantee Fund, Trading Software, Arbitration Mechanism, Stock Market Indices

Unit – 6: Investors’ Protection (Lecture 3/ Weight 5%)

6.1 Grievances concerning Stock Exchange dealings & their removal
6.2 Grievance Redressal Cell in Stock Exchanges, Role of SEBI, Company Law Board,
Judiciary & Media

Text Book:
1. Indian Financial System-Theory and Practice; Khan, M. Y.; Tata McGraw Hill; 8th
Edition, 2013
Suggested Readings
1. Indian Financial System: Markets, Institutions and Services; Pathak, B. V., Pearson; 3rd
Edition, 2010
2. Financial Markets and Institutions; Bhole, L. M.; Tata McGraw Hill; 5th Edition, 2009
3. Financial Markets and Institutions; Gurusamy; Tata McGraw Hill; 3rd Edition, 2009
4. Financial Markets and Institutions; Saunders; Tata McGraw Hill; 3rd Edition, 2007
5. Financial Institutions management; Saunders; Tata McGraw Hill; 7th Edition, 2013
6. Financial Services; Khan, M. Y.; Tata McGraw Hill; 7th Edition, 2013
7. Financial Services; Gurusamy; Tata McGraw Hill; 2nd Edition, 2009
8. Bank Management & Financial Services; Rose; Tata McGraw Hill; 7th Edition, 2010
 INTEGRATED M.COM.
SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 343
Name of the Course – FINANCIAL SERVICES
(L – 3 T – 1 P – 0 CR- 4 )
Objective
The objective of this course is to acquaint students with the financial services

Unit – 1: Introduction (Lecture 4/ Weight 10%)

1.1 Meaning, nature, features, evolution, providers and users
1.2 Classification: fund based and non-fund based financial services

Unit – 2: Leasing and Hire purchase (Lecture 4/ Weight 10%)

2.1 Concept, evolution, features
2.2 Types of leasing and Hire purchase
2.3 Advantages
2.4 Distinction between leasing and Hire purchase
2.5 Leasing companies in India

Unit – 3: Capital Market Investment Institutions (Lecture 12/ Weight 25%)

3.1 Domestic Financial Institutions
3.2 Qualified Institutional Buyers
3.3 Foreign Institutional Investors
3.4 Private Equity
3.5 Angel Funds
3.6 Venture Capital
3.7 Qualified Foreign Investors
3.8 Mutual Funds
3.9 Alternative Investment Funds
3.10 Hedge Funds
3.11 Pension Funds

Unit – 4: Capital Market Instruments (Lecture 10/ Weight 25%)

4.1 Equities, Preference Shares, Shares with Differential Voting Rights
4.2 Corporate Debt: Non Convertible Debentures, Partly-and Fully-Convertible Debentures,
Non Convertible Debentures with or without Call and Put Features
4.3 Bonds, Foreign Currency Convertible Bonds, Indian Depository Receipts
4.4 Derivatives: Single Stock Futures, Single Stock Options, Index futures (SENSEX,
NIFTY), Index Options, Interest Rate Futures, Currency futures
4.5 Exchange Traded Funds

Unit – 5: Financial Intermediaries Framework (Lecture 15/ Weight 30%)

5.1 Framework of Market Infrastructure Institutions
5.2 Stock Exchanges Clearing Corporations
5.3 Custodians
5.4 Depositories, Depository Participants
5.5 Registrars and Transfer Agents
5.6 Bankers to issue
5.7 Merchant Bankers, nature, scope, functions, Evolution of merchant banking and growth
in India
5.8 Underwriters
5.9 Investment Advisors, Portfolio Managers
5.10 Self Certified Syndicate Banks
5.11 Brokers, Sub-brokers, Market-makers
5.12 Credit Rating and credit rating agencies in India.
5.13 Role and Functions of Insurance Companies, Bancassurance

Text Book:
1. Financial Services; Khan, M. Y.; Tata McGraw Hill; 7th Edition, 2013

Suggested Readings:
1. Financial Services; Gurusamy; Tata McGraw Hill; 2nd Edition, 2009
2. Bank Management & Financial Services; Rose; Tata McGraw Hill; 7th Edition,
2010Indian Financial System: Markets, Institutions and Services; Pathak, B. V.,
Pearson; Dorling Kindersley (RS); 3rd Edition, 2010
3. Indian Financial System-Theory and Practice; Khan, M. Y.; Tata McGraw Hill; 8th
Edition, 2013
4. Financial Markets and Institutions; Bhole, L. M.; Tata McGraw Hill; 5th Edition, 2009
5. Financial Markets and Institutions; Gurusamy; Tata McGraw Hill; 3rd Edition, 2009
6. Financial Markets and Institutions; Saunders; Tata McGraw Hill; 3rd Edition, 2007
7. Financial Institutions management; Saunders; Tata McGraw Hill; 7th Edition, 2013

INTEGRATED M.COM.
 SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 344
Name of the Course – BANKING REGULATORY FRAMEWORK
(L – 3 T – 1 P – 0 CR- 4 )

Objective
The students would be able to acquire knowledge in the legal & regulatory framework of the
banking system and the various laws and enactments affecting day to day Banking operations

Unit – 1: Introduction to Banking System, Regulatory Framework and Compliances and

Role of SEBI & RBI (Lecture 12/ Weight 25%)

1.1 Provisions of RBI Act 1935; Banking Regulation Act 1949; Banking Companies
(Acquisition and transfer of undertakings Act 1970 & 1980), Government and RBI’s
powers: Role of SEBI & RBI
1.2 Opening of new banks and branch licensing
1.3 Constitution of board of directors and their rights
1.4 Banks share holders and their rights
1.5 CRR / SLR concepts
1.6 Cash / currency management
1.7 Winding up - amalgamation and mergers
1.8 Powers to control advances, selective credit control, monetary and credit policy
1.9 Audit and Inspection
1.10 Supervision and control: board for financial supervision, its scope and role
1.11 Disclosure of accounts and balance sheets
1.12 Submission of returns to RBI

Unit – 2: Legal aspects of banking operations (Lecture 8/ Weight 20%)

2.1 Case laws on responsibility of paying / collecting banker
2.2 Indemnities / guarantees: scope and application, obligations of a banker, precautions and
rights-laws relating to bill finance,
2.3 LC and Deferred Payments
2.4 Laws relating to securities, valuation of securities, modes of charging securities - lien,
pledge, mortgage, hypothecation
2.5 Registration of firms / companies
2.6 Creation of charge and satisfaction of charge

Unit – 3: Banking Related Laws (Lecture 10/ Weight 20%)

3.1 Law of limitation
3.2 Provisions of Bankers Book Evidence Act
3.3 Special features of Recovery of Debts Due to Banks and Financial Institutions Act, 1993
TDS, Banking Cash Transaction tax, Service Tax, Asset Reconstruction Companies
3.4 The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002
3.5 Banking Ombudsman
3.6 Lok Adalats
3.7 Lender’s Liability Act

Unit – 4: Relevant Provisions of the Acts with reference to banking operations

(Lecture 15/ Weight 35%)
4.1 Indian Contract Act, 1872
4.2 The Sale of Goods Act, 1930
4.3 The Companies Act, 1956
4.4 Indian Partnership Act, 1932
4.5 The Transfer of property Act, 1882
4.6 Foreign Exchange Management Act, 2000
4.7 Prevention of Money Laundering Act, 2002

Text Book:
1. Legal and Regulatory Aspects of Banking; Indian Institute of Banking & Finance;
Macmillan Publishers India; 2nd Edition, 2012

Suggested Readings:
1. Banking Law and Practice in India; Tannan M.L; Lexisnexis Butterworths Wadhwa Nagpur; 23 rd
Edition; 2010
2. Elements of Mercantile Law; ND Kapoor; Sultan Chand & Sons; 29 thEdition, 2012
3. Business Laws; Kuchhal & Kuchhal; Vikas Publishing House, New Delhi; 6 th Edition,
2013
4. Business Laws; Tulsian P.C.; Tata McGraw Hill; 2nd Edition, 2001
5. Business Laws; Mathur, Satish B.; Tata McGraw Hill; 1st Edition, 2009
6. Business Laws; Gulshan, S.S; Excel Books; 4th Edition, 2012
7. Commercial Law (including Company Law) and Industrial Law; Sen&Mitra; World
Press 1966; 7th Edition, 2006
8. Business Laws for Management; Bulchandani, K.R.; Himalaya Publishing House; 6 th
Edition, 2014

INTEGRATED M.COM.
 SIXTH SEMESTER
SPECIALISATION COURSE
Course Code - IC 345
Name of the Course – CREDIT AND RISK MANAGEMENT IN BANKS
(L – 3 T – 1 P – 0 CR – 4 )
Objective
The students would be able to acquire knowledge about the credit and risk management
practices and procedures in banks

Unit – 1: Introduction and basic concept of Risk and Credit Management

(Lecture 5/ Weight 10%)
1.1 Basel guidelines
1.2 Credit Risk
1.3 Market Risk
1.4 Operational Risk
1.5 Liquidity Risk

Unit – 2: Risk Management (Lecture 20/ Weight 45%)

2.1 Risk concept, Risk in Banks
2.2 Risk Management Framework
2.3 Organisational Structure
2.4 Risk Identification
2.5 Risk Measurement
2.6 Sensitivity, Basis Point Value, Duration, Downside Potential
2.7 Value at Risk, Back Testing, Stress Testing
2.8 Risk Monitoring and Control
2.9 Risk Reporting, CIBIL
2.10 Market Risk identification, Measurement and management
2.11 Credit risk - rating methodology, risk weights, credit ratings, transition matrices, default
probabilities, mitigants
2.12 Counterparty risk
2.13 Operational Risk Management
2.14 Current guidelines on risk management, Risk Based Capital Standards

Unit – 3: Credit Management (Lecture 20/ Weight 45%)

3.1 Types of credit (Term Lending, Working Capital Lending, Fund Based & Non-Fund
Based Lending, Documentary Credit etc. Consortium finance, Multiple banking,
Syndication of loans, Financing for Infrastructure)
3.1 Principles of Credit Management
3.2 Credit Appraisal Techniques
3.3 Analyzing Financial Performance, Relationship between items in Balance Sheet and
Profit and Loss Account : Trend Analysis, Comparative Statement, Common size
Statement, Preparation of projected Financial Statements, Ratio analysis, Statement of
Sources and Applications of Funds
3.4 Cash Flow Analysis, Cash Budget
3.5 Structuring a Credit Proposal, Working Capital Concept and Management Appraisal
techniques for different constituents
3.6 Technical and economic feasibility studies,
3.7 Credit Rating
3.8 Loan Documentation
3.9 Pre and Post sanction supervision
3.10 Credit Monitoring
3.11 Prudential Norms on Income Recognisition, Asset Classification and Provisioning
pertaining to Advances
3.12 Dealing with credit defaults (Negotiated Settlements, Corporate Debt restructuring,
SARFAESI, Debt Recovery Tribunals, Legal Options, Write-off)

Text Book:
1. Management of Banking and Financial System; Suresh P.; Pearson Education Singapore
Pvt Ltd; 2nd Edition, 2010

Suggested Readings:

1. Credit Risk Management for Indian Banks; Vaidyanathan K.; SAGE Publications; 1st
Edition, 2013
2. Credit Risk Management; Bagchi S. K.; Jaico Publishing House; 3rd Edition, 2004
3. Retail Credit Risk Management ; Palgrave Macmillan Studies in Banking and Financial
Institutions Edited By Mario Anolli, Elena Beccalli and Tommaso Giordani; Palgrave
Macmillan; 1st Edition, 2013