APPENDIX - 28 (R )

UNIVERSITY OF MADRAS
M. Com Degree Course in (ACCOUNTING AND FINANCE)
(Choice Based Credit System)

REVISED REGULATIONS
(w.e.f.2013 – 2014 onwards)

CONDITIONS FOR ADMISSION:

1. M.Com. ACCOUNTING AND FINANCE

A candidate who has passed the B.Com. B.Com/B.A (Corporate Secretaryship), B.Com (Accounting &
Finance) B.C.S., B.B.A., B.Com (Bank Management), B.Com. (Computer Applications), B.A.(Co-
operation), B.A. (Industrial Organization) and B.Sc.(Mathematics) or B.Sc.(Computer Science) or
B.C.A. or any other UG degree with at least any two core/main Accounting papers offered at the
B.Com shall be eligible for admission to M.Com Degree Program.

5. Revised Scheme of Examinations

First Semester

Course Code Subjects Instruction Credit Exam. Max. Marks

Components al Hours s Hours CIA Externa Total
l
Core Paper - AF 701 International Financial 6 4 3 25 75 100
I Management
Core Paper - AF 703 Cost Estimation and Control 6 4 3 25 75 100
II
Core Paper - AF 705 Financial Management 6 4 3 25 75 100
III
Core Paper – AF 707 Advanced Corporate 6 4 3 25 75 100
IV Accounting and Accounting
Standards
Elective I Accounting Information 6 3 3 25 75 100
System
Or
Managerial Economics
Soft Skill - I 2 - 40 60 100
 Second Semester

Course Code Subjects Instruction Credi Exam. Max. Marks

Componen al Hours ts Hours CIA External Total
ts
Core Paper AF 701 Financial and Cost Audit 4 3 25 75 100
–V
Core Paper AF 703 Income Tax Law and Practice 4 3 25 75 100
– VI
Core Paper AF 705 Quantitative Techniques for 4 3 25 75 100
- VII Business Decisions
Elective II Information Systems Audit 3 3 25 75 100
Or
Financial Markets and
Institutions
Extra Computerized Accounting 3 3 25 75 100
Disciplinar
y Elective &
Internship 2 - - - 100
Soft Skill - 2 - 40 60 100
II

& To be offered by other Department

Internship will have to be carried out at the end of the Second Semester and the report of the same
shall be submitted by the students within a period of one month after the completion of the
Internship. The Internship report shall be evaluated by the two examiners within the Department of
the College. The marks shall be sent to the University by the College and the same will be included in
the Third Semester Statement of Marks
 Third Semester

Course Code Subjects Instruction Credit Exam. Max. Marks

Components al Hours s Hours CIA Externa Total
l
Core Paper - AF 701 Indirect Taxes 4 3 25 75 100
VIII
Core Paper – AF 703 Fundamentals of 4 3 25 75 100
IX Information Technology
Core Paper – AF 705 Research Methodology 4 3 25 75 100
X
Elective III Strategic Cost Management 3 3 25 75 100
Or
Working Capital
Management
Elective IV Accounting for decision 3 3 25 75 100
making
Or
Insurance and Risk
Management
Extra Business Ethics and 3 3 25 75 100
Disciplinary Corporate Governance and
Elective Social Responsibility
Soft Skill – III 2 - 40 60 100
 Fourth Semester

Course Code Subjects Instruc Credi Exam. Max. Marks

Components tional ts Hours CIA Extern Total
Hours al
Core Paper – XI AF 701 Business Analytics 4 3 25 75 100
Core Paper – XII AF 703 Investment Analysis and 4 3 25 75 100
Portfolio Theory
Core Paper – XIII AF 705 Strategic Management 4 3 25 75 100
Core Paper – IV Project Plus Viva-voce * 8 40 160 @ 200
and XV
Elective V Income Tax and Tax Planning 3 3 25 75 100
Or
Indian Financial System
Soft Skill - IV 2 - 40 60 100

@ Viva-voce examination carries 40 Marks and Project Report carries 120 Marks

* Project Viva-voce is considered equivalent to two core papers. Hence, a College may choose to
offer the following two core papers in lieu of the Project Viva-voce

Core Paper – XVI Com Financial Derivatives 4 3 25 75 100

216
Core Paper – Com International Banking and 4 3 25 75 100
XVII 218 Global Financial Markets
 APPENDIX - 28 (S)
UNIVERSITY OF MADRAS
M. Com Degree Course in
(Accounting and Finance)
( Choice Based Credit System)

Revised Syllabus
(w.e.f.2013 – 2014 onwards)

First Semester

International Financial Management

Objective: To impart knowledge on source of financing and methods of appraisal of investment

decisions and risks involved in global level of financial operations

UNIT I - Designing a Global Financing Strategy - institutional Structure - Euro Currency Loan --
International Equity Markets - International Financing Decision - Financing Overseas Subsidiary -
Borrowing International Equity Investment - Syndicated Loans – Block Funds– Subsidized Financing

UNIT II - International Project Appraisal -- Issues involved in Investment Analysis – Profit and Rent
Maximization – Cross Border Investment Analysis – Discounted Cash Flows – Capital Asset
Pricing Model(CAPM) – International Asset Pricing Model(IAPM)

UNIT III - International Capital Budgeting – Methods – Present Value Analysis – Decision Tree
Analysis – Contingent Claim Analysis

UNIT IV - Cost of Capital and Capital Structure – Cost of Debt and equity Across Countries –
Weighted Average Cost of Capital and Assessment of Foreign Projects – Capital Structure
Decision across the countries

UNIT V - Multinational Working Capital Management –Sources of Short Term Financing - Current
Asset Management - International cash Management: - Inventory Management - Managing Blocked
Currency Trade

Book References

1. Ian H. Giddy, ‘Global Financial Markets’ AITBS

2. Kirt C. Butler, ‘Multinational Finance’ Thomson south western
3. Gurusamy S, ‘Global Financial Institutions’, Vijay Nicole and Tata McGraw Hill
4. Reid W. Click and Coval, ‘International Financial Management’ Prentice Hall India
5. Rite M Rodriguez, “International Financial Management”, E Eugene Carter Prentice Hall, New Delhi
6. Alan C Shapiro, “Multinational Financial Management”, Allyn and Pacon Ioc, Boston
7. Adrin. Buckley, “Multinational Finance”, Hcrit, New Delhi
8. Madura, Jeff, “International Financial Management, West Publishing Company.
9. Apte P.G. International Financial Management, Tata McGraw Hill, New I Delhi
Web References
www.internationalfinancemanagement.com
www.onlinelibrary.wiley.com
www.emeraldinsight.com

Cost Estimation and Control

Objective: To impart knowledge on the methods and techniques of cost estimation and control and
to develop the skills in cost estimation and control

UNIT I Introduction – Cost behaviour and value improvements- Need for cost information-costing
systems –cost behaviour and decision making –financial gearing and operational gearing
UNIT II Systems for product cost determination –concepts in cost determination-activity based
costing and management -job and process costing –applications

UNIT III Systems for decision making – Marginal costing and contribution analysis –Differential
costing

UNIT IV System for cost control and reduction – Budgetary control – Functional budgets and
responsibility system

UNIT V Standard costing and variance analysis –Material ,Labour Overhead and profit variances

Note: The question paper should consist 80% problems and 20% theory questions
Boo References

1. Sridharan , Costing for Management Vikas publishing house, New Delhi

2. Jain and Narang, Advanced cost accounting Kalyani Publishers
3. Saxena and Vashist, Advanced cost and management accounting Sultan Chand, New
Delhi
4. Charles T. Horngren Cost Accounting :A managerial emphasis, Prentice Hall, New Delhi
5. Khan, P.K.Jain, “Theory and problems of management and cost accounting”, Tata Mc
Graw Hill

Web references

www.futureaccountant.com
www.ce.cmu.edu
www.myicwai.com

Financial Management

Objective: To impart knowledge on sources of financing and methods of appraisal of investment

decisions and risks involved in financial operations
UNIT I Financial management- objectives- functions, scope- Evolution, Interface of financial
management with other areas - Environment of corporate finance

UNIT II Cost of capital- weighted average cost of capital- cost of capital and investment analysis-
Financial and operating Leverage – Risk return analysis – Capital Structure theories – net income
approach- net operating income approach – MM approach – Modern Approaches

UNIT III Investment decisions – Investment appraisal methods – risk and uncertainty in Investment
decisions – Capital rationing

UNIT IV Dividend theories- issues in dividend policy- Dividend Relevance- Walter’s model- Gordon’s
model- dividends and Uncertainty- dividend irrelevance- Modigliani and miller’s Approach- Dividend
policy and market imperfections

UNIT V Working Capital management – determining working Capital needs - working Capital cycle –
sources for short term finance

Note- The question paper should consist 60% problems and 40% theory questions

Book References
1. Murthy, Financial Management, Margam Publishers, Chennai
2. Periyasamy, Financial management, Vijay Nicole Imprints
3. Pandey, Financial management, Vikas publications, New Delhi.latest edition
4. James.C.Van Horne, Financial management and policy, Prentice Hall India, New Delhi
5. Prasanna Chandra, Financial management; theory and practice Atlas MC grew Hill
6. Khan and P.K. Jain, “Financial management”, Tata Mc Graw Hill
7. Eugene F. Brigham, Michael C. Ehrhardt, “ Financial Management”, Thomson Southwestern
Publication
8. Brealey & Myers, “ Corporate finance”, Tata Mc Graw Hill, New York

Web references

www.accountingstudyguide.com
www.managementparadise.com

Advanced Corporate Accounting and Accounting Standards

Objective: To impart knowledge on corporate accounting methods and procedures and to develop
skills in the preparation of accounting statements and in their analysis

UNIT I Advanced problems in share capital and debenture transactions including underwriting -
Valuation of goodwill and shares

UNIT II Acquisition, Amalgamation, absorption and reconstruction (internal and external) schemes -
Statements for liquidation of companies

UNIT III Consolidated final statement of Holding companies and subsidiary companies –inter-
company holdings and owings -treatment of dividends
UNIT IV Final statements of banking companies and insurance companies Accounting for price level
changes -Social responsibility accounting -Human resources Accounting

UNIT V Basic postulates of accounting theory and generally accepted accounting principles and
practices recommended by the ICAI -Mandatory Accounting Standards (AS) issued by the ICAI

Note: The proportion between theory oriented and problem oriented questions in the University
examination shall be 20:80

Book References

1. M.C. Shukla and T. S. Grewal, Advanced Accounts, New Delhi, S. Chand and Co.

2 R.L. Gupta and M. Radhaswamy, Advanced Accounts, New Delhi, Sultan Chand

3 S.P. Jain and K.L. Narang, Advanced Accounts, Ludhiana, Kalyani Publishers

4 T S Reddy, et.al., Corporate Accounting, Chennai, Margam Publications

Web references
www.indiacorporateadvisor.com
www.iimcal.sc.in
www.futureaccountant.com

Accounting Information System

Objective: To help the students learn document an accounting system or subsystem using narrative
description data flow diagrams and flowcharts and identify the existing technologies that can be
used for business application and distinguish how accounting information systems are used to
achieve organizational objectives and to improve planning and control in an organization

UNIT I Overview of Accounting Information Systems - The Information System: An Accountant's

Perspective.- Introduction to Transaction Processing- Ethics, Fraud, and Internal Control. Overview
of Business processes – System development and documentation techniques

UNIT II Transaction Cycles and Business Processes - The Revenue Cycle.- The Expenditure Cycle-
Purchases and Cash Disbursements Procedures.- The Expenditure Cycle- Payroll Processing and Fixed
Asset Procedures- The Conversion Cycle- Financial Reporting and Management Reporting Systems

UNIT III Advanced Technologies in Accounting Information - Database Management Systems.- The
REA Approach to Business Process Modeling- Enterprise Resource Planning Systems- Electronic
Commerce Systems. – Accounting and Business and Intelligent – Accounting and Sustainability
intelligence

UNIT IV Systems Development Activities - Managing the Systems Development Life Cycle- Construct,
Deliver, and Maintain Systems Project- Accounting system development – Database design methods
UNIT V Computer controls and auditing - Control and Accounting information system - Intelligent
Business Reporting - IT Controls – Cyber security - Sarbanes-Oxley and IT Governance- Security and
Access- Systems Development, Program Changes, Application Controls

Books for Reference s

1. James A Hall, Principles of Accounting Information Systems, First Edition - South Western
2. Karthikeyan M, Accounting Information Systems, Avinash Paperbacks
3. A Barry E. Cushing, Paul John Steinbart, Marshall B. Romney, Addison, Accounting
Information Systems, Wesley Publishing Company

Web References

www.computerizedaccount.tripod.com
www.academyoflearning.com
www.charteredaccountants.com.au

Managerial Economics

Objective: To offer expertise and knowledge on the application of economic theories and concepts
to business decisions

UNIT I The Scope and Methods of Managerial Economics -Risk -uncertainty and probability analysis -
Approach to managerial decision making and the theory of firm

UNIT II Demand analysis, basic concepts and tools of analysis for demand forecasting, use of
business indicators; demand forecasting for consumer goods, Consumer durable and capital goods

UNIT III Concepts in resource allocation, cost analysis; breakeven analysis, short run and long run
cost functions; production function: cost -price -output relations -Capital investment analysis -
Economics of size and capacity utilization input -output -analysis

UNIT IV Market structure, Pricing and output; general equilibrium. Product policy, rates, promotion
and market strategy -Advertising rates model- Advertisement budgeting

UNIT V Pricing objectives -pricing methods and approaches -Product line pricing -Differential pricing
- Monopoly policy restrictive agreements -Price discrimination -Measurement of economic
concentration -Policy against monopoly and restrictive trade practices

Book References

1 Peterson, Managerial Economics 4th Ed. Pearson Education, New Delhi,

2 Spencer, M.H. : Managerial Economics, Text Problems and Short Cases

3 Mote and Paul: Managerial Economics TMH, New Delhi

4 Sampat Mokherjee, Business and Managerial Economics Calcutta New Central Book Agency

5 Dwivedi D N, Managerial Economics, New Delhi Vikas

Web references

www.emeraldinsight.com
www.taylorandfrancis.com
www.oxfordjournals.org

Second Semester

Financial and Cost Audit

Objective: To provide expertise in the procedures and methods of financial and cost audit

UNIT I Financial audit – nature and scope – essentials of Company audit – Revenue and Capital
transactions – duties and liabilities of auditors – importance of audit report

UNIT II Evolution of cost audit- cost audit- concepts- objectives and Scope- cost audit Vs financial
audit- cost audit as aid to the Management Cost auditor- his appointment- Rights, powers, duties
and Responsibilities- financial Auditor- cost auditor- Internal Auditor-Relationship
UNIT III Cost audits planning- Familiarization with industry and systems And schemes- Requirements
of cost audit, its importance Preparations, model plan and routine

UNIT IV Internal control system relating to financial audit and cost audit-Evaluation of internal
control system- Accounting and budgetary Control- capacity utilization and inventory control

UNIT V Cost audit working papers and notes- cost audit - report Rules- contents and Para wise
illustrations- notes and Qualifications- distinction and examples

Book References
1. Ramanathan, “ Cost and Management Audit”, Tata Mc Graw Hill
2. Gupta, “ Contemporary auditing”, Tata Mc Graw Hill
3. Dutta Chowdhury: “cost audit and management audit”
4. Philip. I. Deliese and Others: Montgomery’s auditing, John Wiley and sons
5. Rathnam: Cost audit and management audit, Kitab Mahal
6. Tandon: Practical Auditing- S.Chand and Co
Web references
www.futureaccountant.com
www.myicwai.com
www.ce.cmu.edu
 Income Tax Law and Practice

Objective: To understand the different elements of Income tax and application of Income tax Act and
to plan to reduce the tax burden and to differentiate the implications of Tax evasion and Tax
avoidance

UNIT I Income Tax Law and Tax Planning Basic Concepts - Residential Status and Tax Incidence,
Exempted Incomes, and its related Tax planning implications - Significance and problems of tax
planning, Tax evasion and tax avoidance, and methods of tax planning

UNIT II Computation of Taxable Income under Various Heads –Tax planning with respect to Salary –
House Property – Business and Profession – Capital Gains and Income from other sources

UNIT III Computation of Taxable Income of Individuals and firms Deduction of Tax – Tax planning by
taking advantage of various deductions – Exempted incomes

UNIT IV Clubbing of Income – Aggregation of Income Tax planning application with respect to
clubbing of income and Aggregation of Income

UNIT V Tax considerations in specific business decisions, viz., make or buy; own or lease, retain or
replace; export or domestic sales; shut-down or closure; expand or contract; invest or disinvest,
Computer Application in Income tax and tax planning

Book References

1. Haraiharan N, Income Tax and Practice, Vijay Nicole Imprints

2. Lakhotia R N, SubhashLakhotia How To Save Income Tax through Tax Planning, Jain Book
Depot, New Delhi
3. Shanbhag A N and SandeepShanbhag, Taxpayer to TaxSaver, Jain Book Depot, New Delhi
4. Lakhotia R N Tax planning for NRIs, Jain Book Depot, New Delhi

Web References

www.incometaxindia.gov.in
www.taxsmile.com
www.law.incometaxindia.gov.in
www.taxmanagementindia.com

Quantitative Techniques for Business Decisions

Objective: To provide knowledge in quantitative methods and applications and to offer expertise in
quantitative analysis

UNIT I Theory of probability -probability rules -Baye's theorem -Probability distribution -Binomial,
Poisson and Normal. Statistical decision theory -Decision environment -decision making under
certainty and uncertainty and risk conditions -EMV, EOL and marginal analysis -value of perfect
information - decision tree analysis
UNIT II Sampling-Meaning of random sample -sampling methods -sampling error and standard error
relationship between sample size and standard error Sampling distribution -characteristics- central
limit theorem -estimating population parameters - point and interval estimates -estimating
proportion, percentage and mean of population from large sample and small sample

UNIT III Testing hypothesis -testing of proportions and means -large samples -small samples -one
tailed and two tailed tests -testing differences between mean and proportions -errors in hypothesis
testing -chi square distribution -characteristics -applications -test of independence and tests of
goodness of fit - inferences -F distribution- testing of population variance- analysis of variance -one
way and two way

UNIT IV Correlation and regression -Simple, partial and multiple correlation -simple, partial and
multiple regressions -estimation using regression line -standard error of estimate -testing
significance of correlation and regression coefficients -interpreting correlation -explained variation
and unexplained variation - coefficient of determination- multivariate analysis -factor, cluster and
discriminant analysis

UNIT V Linear programming graphic and simplex models -maximization and minimization -
transportation -Assignment

Note: The proportion between theory and problems shall be 20: 80

Book References

1 Richard I. Levin and David S Rubin, Statistics for Management, 7th Ed. Pearson Education New
Delhi

2. Gupta S P, Statistical Methods, Sultan Chand

3 Johnson, Applied Multivariate Statistical Analysis, 5th Ed, Pearson Education

Web references
http://fe.ugm.ac.id/iup/material/syllabi_quantitative.pdf
www.aiu.edu
http://www.duxbury.com/sme6/index.html

Information Systems Audit

Objective: To gain basic knowledge about the necessary controls, losses and standards in
computerized information system

UNIT I - Concepts – Nature and types of systems – Attributes of Information – Importance of

Management Information System – Types of Information Systems (MIS, BSS, and EIS& ES)
UNIT II - PC Architecture – OS Architecture – Management of Process, Memory & File System –
Basics of Networking – Media OSI Layers – LAN, WAN, Networking Protocols, IP Addressing &
Routing

UNIT III - Selection and Organization of System Resources – Systems Documentations – Operation
Manuals – Training & End User System Testing – Hardware Contract & Software License –IS
Organizational Structure

UNIT IV - Control Objectives for Information related Technology (COBIT) –Information System
Control Technique (Computer dependent & Computer Non-dependent) – Control over Data Integrity
– Privacy and Security Classification of Information (Controls – Logical access, Physical access,
Environment)- Cryptography Firewall – Surveillance Technique – Hacking

UNIT V - Business Continuity Planning and Disaster Recovery Planning – Information Technology ACT
2000

Book References

1. Jack J. Champlain, Auditing Information Systems: A Comprehensive Reference Guide

2. Dube, D P, Gulati, V P, Information System Audit and Assurance

Web references

www.dbatra.com
www.itworld.com
www.icisa.cag.gov.in

Financial Markets and Institutions

Objective: To provide knowledge on financial markets and institutions and to impart knowledge on
financial markets and institutions

UNIT I Meaning, role, functions and constituents of financial markets – Financial instruments –
Indian Money and Capital Markets – Money Market: Meaning, characteristics, objectives,
importance, general functions and segments of money market – Characteristics of a developed
money market – Money market Vs Capital market – Global money markets
UNIT II Profile of Indian money market – nature of dealings – participants – mode of operation – call
money rates – Commercial Paper Market: meaning and features – Satellite Dealers – Commercial Bill
Market: Meaning and importance – Developed Bill Market – shortcomings of Indian Bill Market –
growth of Indian Bill Market – Bill Market Schemes – Failure of Bill Market Scheme Blues of bill
discounting – RBI directives

UNIT III Certificate of Deposit Market: Meaning, features – time deposit Vs certificate of deposit –
Role of DFHI and banks – Treasury Bills Market: Meaning and features – features of Indian treasury
bills – Gilt-edged securities market: meaning and features – REPOS – Repo Accounting – Government
bonds – important of gilt-edged market – criticisms
UNIT IV Capital market: meaning – Indian money market – Indian capital market – evaluation and
growth – new financial instruments recent initiatives in the Indian capital market – major issues of
Indian capital market – Capital market instruments – New Issues Market – meaning and features –
NIM Vs secondary market – intermediaries in NIM

UNIT V Financial Service Institutions: Clearing Corporation of India – Credit Rating and Information
Services of India Limited (CRISIL) – Discount and Finance House of India Limited (DFHIL) – Investment
Information and Credit Rating Agency of India Limited (ICRA) – Moody’s Investor Service – S & P –
Fitch ratings – OTCEI – NSDL – STCI – Financial Institutions: NHB – EXIM Bank – NABARD – Stock
Exchange – functions and working

Book References

1. Gurusamy S, Financial Markets and Institutions, Vijay Nicole and Tata McGraw Hill Company
2. Bhole L M, Financial Institutions and Markets, Tata McGraw Hill Company
3. Varshney P N and Mittal D K, Indian Financial System, Sultan Chand & Sons
4. Kohmn Meir, Financial Institutions and Markets, Tata McGraw Hill Company
5. Apte P G, International Financial Management, Tata McGraw Hill Company
6. Avadhani V A, Capital Market Management, Himalaya Publishing Company
7. Khan M Y, Indian Financial System, Tata McGraw Hill Company

Web References
www.indiacorporateadvisor.com
www.nse-india.com
www.nsdl.co.in
Computerized Accounting

Objective: To develop the skills of students to prepare accounting statements using accounting
software

UNIT I Introduction – features – basic concept of Computerized accounting and Inventory system –
accounts organisation & types of accounts – accounts statements – purchases & sales – credit &
debit – transaction, invoice, voucher, order, cost & stock – income & expenses – inventory control

UNIT II Masters – creation of Accounts Master – Ledger – cost – group – Budgets – Voucher &
Inventory – creation of Inventory Master – Stock Item – Group & Unit measurement - Transactions –
Accounts vouchers entry – contra – receipt – payment – journal – debit & credit notes – sales,
purchase option and post-date vouchers. Inventory voucher entry – types – delivery challan – Goods
Receipt Note, Sales & Purchase returns – Invoice – Stock Transfer – Bill of Material Physical Stock
Voucher

UNIT III Reports – Accounting Report – Trial Balance – Profit & Loss account – Balance Sheet & Stock
Statement – Account Books – Cash & Bank Books – Ledger summaries – Bills Receivable & Payable
Statements

UNIT IV Inventory Report – Stock Summaries – Group Summaries – Order Books & Summary – Order
status – Sales Order Summary - Purchase Order Summary – Printing – Reports on Printer – Reports
to File
UNIT V Statutory Reports – VAT – TDS – Service Tax – CST – Budgeting
Note: The practical examination will be conducted by an internal examiner and an external examiner
jointly. The Theory paper (3 hours &100 marks) will be scaled to 60 marks. The practical paper (3
hours & 100 marks) will be scaled to 40 marks. The candidate has to secure 50% in each of the
Practical & Theory papers to secure a pass. Failure to secure the minimum either in the Theory or in
the Practical will entitle the reappearance only in that paper. 20 marks out of 100 for the practical
paper is reserved for the record.

Book References

1. Nidhani , Implementing Tally

2. Namrata Agarwal, “ Financial Accounting using Tally”, Dream tech Publishers, New Delhi,
2003

Web references

www.charteredaccountants.com.au
www.computerizedaccount.tripod.com
www.academyoflearning.com
http://experts.tallysolutions.com/tallyweb/modules/operation/extranet/CXERPDownloadViewMgr.p
hp

Third Semester

Indirect Taxes

Objective: To provide distinction between Direct Tax and Indirect Tax and also related incidence of
tax rules for indirect tax and to provide understanding on the concept central excise and Service
under the emerging increase importance of service sector

UNIT I Basics: Tax Vs Duty; Direct Tax Vs Indirect Tax – Powers of Union/States – Varieties of Indirect
Taxes – Movement towards GST

UNIT II Central Excise: Factors for Levy of Excise Duty – Goods, Excisable Goods, Manufacture, India
– First principles of valuation of goods – Types of Excise Duty – Procedure for assessment and
payment of Excise Duty – Philosophy of Cenvat – Registration

UNIT III Service Tax: Genesis – First Principles of Taxable Service, Negative list, Exemption list,
Taxable area, non-taxable area, point of taxation and valuation - Procedure for assessment and
payment of Service Tax – Philosophy of Cenvat – Registration

UNIT IV Factors for levy of Customs Duty – First principles of valuation – Procedure for assessment
and payment of Customs Duty – Types of Customs Duty – Warehousing – Drawback
UNIT V Value Added Tax: Salient features of VAT – Sales, Not Sales and Deemed Sales – Goods and
Not Goods – Procedure for assessment and payment of VAT – Composition Scheme – Philosophy of
Input Tax Credit – Registrations – Glimpses of CST

Note: 80% Theory and 20% simple problems only from “Customs and Excise”

Book References

1. Datey, Indirect Taxes, Taxman Publication

2. Reddy T S and & Hariprasad Y Reddy, Business Taxation, Margham Publications
3. Govindan N S, Indirect Taxes made easy, Seethraman & Co
4. Finance Act, 1994
5. Central Excise Act, 1944
6. Customs Act, 1962
7. CST Act, 1956
8. TNVAT Act, 2006

Web References

www.legalserviceindia.com
www.indiacorporateadvisor.com
www.tnvat.gov.in
www.cbec.gov.in
www.aces.gov.in

Fundamentals of Information Technology

Objective: To offer basic skills in computer applications and to develop working knowledge on
business related software

Unit I Introduction to Computer -Classification of Digital Computer System- Computer Architecture -

Number -Compliments -Logic Gates -Truth Table -Boolean Algebra -Table Simplification of Boolean
Function

Unit II Introduction to Computer Software -'C', DBMS, RDBMS -Implementing Number Sorting,
Matrix Addition, Multiplication, Palindrome Checking, Searching an Element an Array

Unit III MS- WORD -Creating Word Document -Editing Text -Adding and Formatting Numbers -
Symbols -.Getting into Print -MS-EXCEL -Creating Tables Using EXCEL -Using Tables and Creating
Graphs -MS-ACCESS -Planning and Creating Tables -forms -Modifying Tables -Creating relational
Database- Form Design- Reports -MS-POWERPOINT -Preparing Power Point Presentation for
Marketing Products such as CREDIT CARD, Newly Introduced Cosmetic item etc.,

Unit IV Introduction to Internet -Resources of Internet -Hardware and Software Requirement of

Internet -Internet Service Providers -Creating an E-Mail Account-Sending and Receiving Messages
with Attachments to our friends account -Multimedia and its Applications
Unit V Application software -Accounting packages- Statistical packages -Preparation of financial
statements and statistical analysis

Note: The practical examination will be conducted by an internal examiner and an external examiner
jointly.

The theory paper (3 hours and, 100 marks) will be scaled to 60 marks. The practical paper (3 hours
and 100 marks) will be scaled to 40 marks. The candidate has to secure 50% in each of the practical
and theory papers to secure a pass. Failure to secure the minimum either in the theory or the
practical will entail the reappearance only in that paper. Twenty marks out of hundred for the
practical paper is reserved for the record.

Book References

1 James A. Senn, Information Technology in Business Principles; Practices and opportunities,

International Edition, Prentice Hall

2 Corey Sandler, Tom Badget, Jan Wein Garten, Ms-Office for Windows

3 Alexis Leon & Mathew Leon, Fundamental of information Technology, Vikas Publishing Home
Pvt.,Ltd

Web references

www.gurukpo.com/admin/bookpdf/66.pdf
www.springer.com
www.emeraldinsight.com

FUNDAMENTALS OF INFORMATION TECHNOLOGY LIST OF PRACTICAL EXPERIMENTS

· Creating Mail merged documents in MS WORD for example, Interview call letters
· Typing tables in Ms Word, for example schedule of debtors
· Creating a Cash budget in MS-EXCEL
· Draw a break even analysis graph in EXCEL
· Draw a graph to compare prices across year of multiple products
· Calculate the NPV of projects using EXCEL
· Computing regression and estimating the dependent variable using EXCEL
· Preparing Flexible budget using EXCEL
· Creating a file debtors and a file of Invoices along with the debtors details (relationship)
· Creating forms of data entry and data editing for a given data file (Include validation)
· Using the query generator to extract data
· Creating a Power Point presentation to promote a product.
· Creating a PP Slide show with clip art and image files
· Spelling checking, formatting and printing in WORD
· Update files in MS-Access
· Use reports to generate summaries in Ms-Access
· Use PP Facilities to create and automate slide show ( including transition)
· Computing variance analysis using EXCEL
· Using data from Ms-Access to mail, merge a document in MS-WORD
· Drawing various types of graphs in EXCEL
 · Preparation of Ledger Accounts through Tally
· Preparation of Trial balance though Tally
· Computation of Means and Standard deviation through SPSS package
· Computing Correlation and Regression through SPSS Package
· Preparation of Charts and Diagrams through SPSS Package

Web references
www.gurukpo.com/admin/bookpdf/66.pdf
www.springer.com
www.emeraldinsight.com

Research Methodology

Objective: To provide knowledge on research methods, techniques and the process and to develop
skills in the application of research methods for business problem solving

Unit I Research -Meaning and purpose -types of research -Pure and applied, survey, case study
experimental, exploratory -Research Design -Steps in selection and formulation of research problem
- steps in research -review of literature

Unit II Formulation of Hypothesis- Types, sources -Testing -sampling techniques- sampling error and
sample size

Unit III Methods of data collection -Primary and secondary data -observation -interview -
questionnaire -construction of tools for data collection -testing validity and reliability -pilot study
and pre-testing

Unit IV Processing and analysis of data -editing -coding -transcription- tabulation -outline of
statistical analysis -descriptive statistics -elements of processing through computers -packages for
analysis

Unit V Report writing -target audience -types of reports -contents of reports - styles and conventions
in reporting -steps in drafting a report

Book References

1 William C Emory, Business Research Methods, Richard D Irwin, NJ,

2 Donald R Cooper, Business Research Methods 7th Ed, McGraw Hill

3 Krishnaswami OR, Methodology of Research for Social Science, Himalaya, Mumbai

4 Anderson J. et.al, Thesis and Assignment writing, Wiley Eastern

Web references
www.tutorsindia.com
www.springer.com
www.authorstream.com
www.socialpsychology.org
 Strategic Cost Management

Objective: To provide an in depth knowledge of the techniques and methods of Cost Management
relevant to Corporate administration.

UNIT I - Planning Environment – Forecasts trend and changes – Social, Political legal and
technological impacts – Distribution channels and competitive forces – Public and Private Sector
investment – International trade – prices and government policies for capacity expansion

UNIT II - Strategies – Meaning and implications of corporate planning long range planning, business
policy planning – Process of developing – strategic plan – SWOT Analysis – Strategies for stagnation
Vs. Growth – Strategies for growth through expansion Vs. diversification, Acquisition and merger
strategy, strategy of joint venture both in Indian and abroad

UNIT III - Model Building – strategies in the development of models – Delphi Model, Econometric
Model, Mathematical programming Model, Budgetary and Heuristic Model – Sensitivity analysis and
characteristics of the model

UNIT IV - Marketing concept objectives and framework – Linkage between strategic planning and
marketing strategy – research and intelligence sources – control or application of management
accounting in marketing – Analysis of marketing cost and profitability, pricing policies and strategies

UNIT V - Distribution cost analysis and control – contribution analysis and product – Line profitability
analysis – Evaluation of research information – Perfect, imperfect and Baye’s Theorem

Book References
1 Ghoush P.K., Dhingra, I.C., Rajan Nair, N., Mani K.P, “Advanced Management Accounting – Strategic
Management”, Sultan Chand & Sons, New Delhi
2 Prasad L.M., “Business Policy: Strategic Management” Sultan Chand & Sons, New Delhi
3 Alles, Michael, “ Strategic Cost Management”, Courier Custom Publishing
4 Wilson, Richard M., “Strategic Cost Management”, Aldershot Ashgate Publishers
5 Shank, John K, “Strategic Cost Management: The New Tool for Competitive Advantage”, The Free
Press
6 Blocher, “Cost Management: A Strategic Emphasis”, Irwin/McGraw Hill
7 Blocher, Edward, “Cases and Readings in Strategic Cost Management for Use with Cost
Management: A Strategic Emphasis”, McGraw-Hill Higher Education

Web References
www.indiacorporateadvisor.com
www.iimcal.sc.in
www.futureaccountant.com
 Working Capital Management

Objective: To impart in depth knowledge on short term funds management and to expose students
to corporate practices in working capital management
Unit I Working Capital Policy: Overall Considerations – importance of Working Capital Management –
Concept of Working Capital – Risk and Return Trade off Financing Capital Requirements – issues in
working capital policy – size of Working Capital Forecasting & Management of Working capital
Unit II Cash Management: Importance – Factors influencing Cash Balance determining minimum
cash balance – Cash Budgeting-Cash Control – Monitoring collections & disbursement – Cash
Management Models
Unit III Inventory Management – Need for inventories & importance of its Management –
Techniques for Managing Inventory – Different Models – Reorder Point – pricing of raw materials &
valuation of stock – Monitoring & control of inventories
Unit IV Receivables management: Credit policy – Credit evaluation credit granting decisions – control
receivables – collection policy
Unit V Financing Current Assets: Trade Credit – Short term Bank Finance – Commercial Paper –
Public deposits – Committees on Working Capital – Regulation of Bank credit – Recommendation
Note: The question paper should consist 60% theory and 40% problems questions

Book References
1. Bhattacharya, WCM – Strategies & Techniques, Prentice Hall of India Pvt. Ltd
2. Ramamoorthy, V.E., Working Capital Management, IFMR, Chennai
3. Bhalla V K, “Working Capital Management”, Anmol Publishers, New Delhi
4. Srinivasan S, “ Cash and Working capital management”, Vijay Nicole
5. Anita Shukla, “ Working capital management”, RBSA Publishers

Web references

www.slideshare.net
www.iif.edu
www.svtuition.org
www.accountingstudyguide.com
 Accounting for Decision Making

Objective: To apply advanced managerial accounting concepts in order to make more informed and
more effective decisions in simulated and actual business situations, to develop management
accounting information systems that will play an important role in the overall success of an
organization and to analyze and to apply Modern cost analysis techniques to control and to reduce
the cost to enhance the value

UNIT I - Cost Volume Profit analysis and Decision Making – Pricing Decision under special
circumstance – Make or Buy – Shutdown or continue – Export Vs Local Sale – Expand or contract
decisions – Product Mix – Price Mix decisions

UNIT II - Cost concepts in Decision Making – Incremental costing – Differential costing in managerial
Decision making

UNIT III - Capital Investment Decision – Payback and discounted payback – Net present value and
taxation – Internal Rate of Return – Accounting Rate of Return – Post project evaluations

UNIT IV - Transfer pricing – Introduction – Objectives of Transfer Pricing – Methods of Transfer

pricing – Transfer Pricing and Performance Measurement and Compensation Issues - Conflict
between division and Company – Congruence

UNIT V - Activity based approaches to Cost and Management Analysis – Activity Based Costing –
Activity Based Management –Target costing – Cost ascertainment and pricing using Target Costing

Book References

1. Charler Brandon, Managerial Accounting, TMH, New Delhi

2. Ray H.Garrison, Managerial Accounting, TMH, New Delhi
3. Ravi M.Kishore, Advanced Management Accounting, Taxman, Publications, New Delhi
4. Advanced Management accounting – Study Material – Institute of Chartered Accountants
5. Horngren, Foster, Datar & Gowing. Cost Accounting: A Managerial Emphasis. 5th Cdn
edition. Pearson

Web References
www.futureaccountants.com
www.charteredaccountants.com.au
www.computerizedaccount.tripod.com
www.accountingstudyguide.com
 Insurance and Risk Management

Objective: To provide knowledge on how insurance can be used in business for risk mitigation and
management.

UNIT I - Risk and risk management process - risk identification - evaluation - risk management
techniques -selecting and implementing risk management techniques

UNIT II - Commercial risk management applications - property - liability-commercial property

insurance different policies and contracts - business liability and risk management insurance -
workers' compensation and risk financing

UNIT III - Personal risk management applications - property – liability - risk management for auto
owners - risk management for home owners

UNIT IV - Risk management applications - loss of life - loss of health - retirement planning and
annuities - employee benefits - financial and estate planning

UNIT V - Risk management environment - industry - functions and organisation of insurers -

Government regulation of insurance sector - IRA - Privatization of insurance business in India -
changes in Insurance Act - Insurance intermediaries insurance products pricing, claim valuation -
Foreign insurers in India

Book References

1. Periyasamy P, Insurance Management, Vijay Nicole Imprints

2. Periyasamy P, Risk Analysis and Insurance, Vijay Nicole Imprints
3. Rejda, George E., “Principles of Risk Management and Insurance”, 6th Edn, Addison Wesley Longman
4. McNamara, “Principles of Risk Management and Insurance”, Addison-Wesley
5. Dorfman, “Introduction to Risk Management and Insurance”, Prentice Hall
6. Williams; Heins, “Risk Management and Insurance”, McGraw Hill
7. James S. Treischmann; Sandra G. Gustavson, “ Risk Management and Insurance”, South-Western
Thomson Learning
8. Insurance Act - Latest
9. Sengupta Mrinal Chandra, Insurance Finance, Progressive Publishers, New Delhi
10. Jah, RN, Insurance in India, Bharat Book Bureau, Mumbai
11. Stewaral Ddoss VS Kaveri Total Quality assessment in Insurance, Akaksha publishing house, New
Delhi
12. Anand Ganguly, “Insurance Management”, New Age international

Web References
www.assocham.org
www.iata.org
 Business Ethics and Corporate Governance and Social Responsibility

Objective: To develop an understanding among students on ethical issues in business and good
governance practices and to impart skills of analysis and capability of making business decisions.

UNIT I - Concept of ethics - sources -- values - codes of conduct - what is an ethical issue? - Ethical
theory and its applications to business/morality and ethical theory – Ethical management - love and
reverence in work and life - strengthening personal and organizational integrity - the spiritual core of
leadership

UNIT II - Advertising and information disclosures - environmental responsibility - ethics and ecology -
employee rights - conflict of interests - work ethics - professional ethics and responsibility

UNIT III - Corporate social responsibility - meaning - promoting corporate responsiveness - managing
socially responsible business

UNIT IV - Corporate Governance – Meaning and scope -– Origin- Practices –Shareholders Vs.
Stakeholders approach –Board mechanism, Role and duties of the directors-Chairman-Governance
committees

UNIT V - Codes of governance –Birla committee report

Book References

1. A M A, “Corporate Governance And Business Ethics”, Excel Books

2. Cannon Tom, “Corporate responsibility. A textbook on business ethics, governance, environment:
role and responsibilities”, Pitman, London
3. Hoffman, W. Michael, et, “Corporate Governance and Institutionalizing Ethics”, Lexington Books
4. Sutton, Brenda, editor, “The Legitimate Corporation; Essential Readings in Business Ethics &
Corporate Governance”, Blackwell Publishers
5. Tom L. Beauchamp and Norman E. Bowie, “Ethical Theory and Business”, Prentice Hall, New Jersey
6. Manual Vela Squez, “Business Ethics Concepts and Cases”, Prentice Hall, New Jersey
7. Kenneth Blanchard and Norman Vincent Peale, “The Power of Ethical Management”, New York,
William Morrow & Co
8. Paul M. Minus, “The Ethics of Business in a Global Economy”, London, Kluwer Publishing Group
9. R.C. Sekhar, “Ethical Choices in Business”, Response Books
10. Kendall, Nigel, “Corporate Governance”, London, Financial Times Pitman Publishing

Web references
www.business-ethics.com
www.businessethics.ca
www.societyforbusinessethics.org
www.e-businessethics.com
 Fourth Semester

Business Analytics

Objective: To provide the students with the fundamental concepts and tools needed to understand
the emerging role of business analytics in organizations and to show students how to apply basic
business analytics tools in a spreadsheet environment, and how to communicate with analytics
professionals to effectively use and interpret analytic models and results for making better business
decisions, through the data, information and to convert into Business intelligence

UNIT I - Foundations of Business Analytics – Overview of the Business Analytics Model – Deployment
of Business analytics model – Link Between strategy and the deployment of Business analytics
model. – Business process and Business analytics – Optimizing the business processes

UNIT II - Data Information and knowledge – Analyst’s role in Business analytics – Required
competencies for the analyst -Descriptive Analytics. – Explorative methods - Fundamental tools and
methods of data analysis and statistics, focusing on visual representations of data, descriptive
statistical measures - probability distributions and data modeling, sampling and estimation, and
statistical inference

UNIT III - Predictive Analytics – development of different approaches for building and analyzing
predictive models, applying regression and forecasting techniques, simulation and risk analysis, and
an introduction to data warehousing and data mining

UNIT IV - Business analytics at the data warehouse level – What is data warehouse? – Architecture
and the process involved in data warehouse – Tips and techniques in Data warehousing -
Prescriptive Analytics through exploring linear, and nonlinear optimization models

UNIT V - Decision making and Problem solving – Decision Making Process – Conditions that influence
decision making – Personal decision- making styles – Decision making with quantitative tools,
focusing on philosophies, tools, and techniques of decision analysis

Book References

1. James R. Evans Business Analytics: Methods, Models, and Decisions,1st edition, Pearson
Education, Inc. publishing as Prentice Hall
2. Gert.H.U.Laursen, Jesper, Thorlund, Business Analytics for Managers taking Business
Intelligence Beyond Reporting, Wiley and SAS Business Series. John Wiley and Sons
3. Prasad R N, SeemaAcharya Fundamentals of Business Analytics, , Wiley India Ltd

Web References
www.businessanalytics.in
www.sas.com/india
www.capgemini.com
www.accountingstudyguide.com
 Investment Analysis and Portfolio Theory

Objective: To provide knowledge on basics of investment management and to develop skill for
investment analysis and portfolio building

UNIT I Nature and scope of investment management -investment objectives, constraints -factors –
investment process -investment management and portfolio management -factors for investment
analysis -impact of economic analysis -impact of industrial analysis role of capital markets.
Understanding the investment environment -sources of investment information

UNIT II Approaches to security analysis- market indicators -security price movements -fundamental
analysis -technical-analysis -Dow theory -Random walk theory -efficient market hypothesis -various
forms of market efficiency and their implications to security analysis-technical analysis Vs. efficient
markets hypothesis -common stock analysis -economic analysis -economic indicators -industry
analysis

UNIT III Company analysis components -non financial aspects -financial analysis -financial statement
- analysis of prospectus -ratio analysis -BPS, dividend yield -payout ratio -ROI, ROCI -Risk return -
market risk -interest rat~ risk -purchasing power risk -business risk -financial risk -measurement of
risk

UNIT IV Portfolio -portfolio management -portfolio theory -meaning and objectives, traditional and
modem portfolio theory. Diversification- Markowitz's approach -portfolio management process-
portfolio planning- portfolio analysis-portfolio selection -portfolio evaluation -portfolio revision-
various steps involved in the development of portfolio

UNIT V Capital market theory -assumptions -risk, investors preference -capital asset pricing model
(CAPM) -estimating Betas -significance of betas in portfolio theory -securities market line arbitrage
pricing theory- options pricing model-put and call- valuation of various options -futures trading -
hedging and forward contracts -Indian stock market and the institutional investors

Note: The proportion between theory and problems shall be 60: 40

Book References

1 Prasanna Chandra, Managing Investments, New Delhi, Tata Mcgraw Hill

2 Elton, Edwin J & Gruber Martin J, Modem Portfolio Theory & Investment Analysis, Wiley & Sons

3 Sidney CottIe, Graham & Dood's, Security Analysis, Tata Mcgraw Hill

4 Fisher D & RJ Jordan, Security Analysis & Portfolio Management, Prentice Hall of India

5 Francis J C and S H Arclean, Portfolio Analysis, Prentice Hall of India

6 Russell Fuller et.al, Modern Investments and Security Analysis, McGraw Hill

Web references
www.amazon.com
www.bcci.bg
www.asrm.edu.pk
 Strategic Management

Objective: To develop an understanding on strategy formulation and implementation in business

operations

UNIT I Strategic Management process an over view -Developing a strategic vision & Mission -Setting
objectives and creating a strategy

UNIT II Environment Scanning arid analysis -Industry competition analysis--Evaluating company

resources and competitive capabilities

UNIT III Analysis of strategies &: choice -operationalising and implementing strategies -Ranking
Resource strategies and organizational capabilities

UNIT IV Strategies for competing in global markets -strategies of MNCS companies. - Strategies of
Diversified companies

UNIT V Leadership and Culture -Integration of structure -Leadership and corporate culture for
effective strategies

Book References

1 Arthur A Thompson and AJStickland III, Strategic Management, New Delhi Tata McGraw Hill

2 Gerry Johnson Exploring Corporate Strategy Prentice Hall

3 Maisana Mazzucato, Strategy for Business, New Delhi, Sage Publication

4 Craig Fleisher et.al, Strategic and Competitive Analysis, Prentice Hall

Web references

www.managementstudyguide.com

Income Tax and Tax Planning

Objective: To understand the different elements of Income tax and application of Income tax Act and
to plan to reduce the tax burden and to differentiate the implications of Tax evasion and Tax
avoidance

UNIT I - Income Tax Law and Tax Planning Basic Concepts - Residential Status and Tax Incidence,
Exempted Incomes, and its related Tax planning implications - Significance and problems of tax
planning, Tax evasion and tax avoidance, and methods of tax planning

UNIT II - Computation of Taxable Income under Various Heads –Tax planning with respect to Salary
– House Property – Business and Profession – Capital Gains and Income from other sources

UNIT III - Computation of Taxable Income of Individuals and firms Deduction of Tax – Tax planning by
taking advantage of various deductions – Exempted incomes
UNIT IV - Clubbing of Income – Aggregation of Income Tax planning application with respect to
clubbing of income and Aggregation of Income

UNIT V - Tax considerations in specific business decisions, viz., make or buy; own or lease, retain or
replace; export or domestic sales; shut-down or closure; expand or contract; invest or disinvest -
Computer Application in Income tax and tax planning

Book References

1. Hariharan, Income Tax Law and Practice, Vijay Nicole Imprints

2. Lakhotia, SubhashLakhotia, How To Save Income Tax through Tax Planning, Jain
Book Depot, New Delhi
3. Shanbhag A N, and SandeepShanbhag, Taxpayer to Taxsaver, Jain Book Depot, New
Delhi
4. Lakhoita R N, Tax planning for NRIs Jain Book Depot, New Delhi

Web References

www.incometaxindia.gov.in
www.taxsmile.com
www.law.incometaxindia.gov.in
www.taxmanagementindia.com

Indian Financial System

Objective: To impart knowledge on the character tics and functions of Financial systems in India and
to expose students to the contemporary developments in financial markets

UNIT I - Indian financial system – characteristics – structure – financial markets – importance – role
in economic development – financial sector reforms – Narasimhan Committee report. SEBI
Regulation over financial markets – Functions and powers of SEBI

UNIT II - Capital Market: Characteristics – structure – players. Primary market and secondary market
– stock exchanges – Listing of Securities – Trading system in stock exchange NSE, BSE, ISE, OTC –
share brokers – categories – other intermediaries – Regulation of stock exchanges – stock market
efficiency – investor protection.

UNIT III - Instruments Issued Outside India - FCCBs, GDRs, ADRs, ECBs, etc. – their characteristics,
advantages and disadvantages, procedure for issue of various instruments and their cost. Recent
trends in capital market.

UNIT IV - Derivative Markets – Types of contracts – trading system – regulation of Derivative markets
– Derivative in India – Recent trends. Government securities market: Types of instruments traded –
characteristics of Government securities market – Recent Trends.

UNIT V - Money Market: Characteristics – structure – instruments traded – players in the market –
trading system. Recent trends in Money Market, Forex markets – structures – instruments – types of
contracts, characteristics – trends.
 Book Reference
1. Gurusamy, Indian Financial System, Tata McGraw Hill, New Delhi
2. M. Y. Khan, “Financial Services”, Tata Mcgraw Hill
3. Varshney and Mittal, “Indian financial System”, Sultan Chand
4. Sri Ram, “Handbook of Leasing & Hire purchases” ,ICFAI Hyderabad
5. Shiva Ramu (Indian Institute of Management, Bangalore), “Global Financial Services Industry”, Oscar
Publications
6. Stewart, Simon (University Of Adelaide), “Financial Services & Their Regulation”.
7. Rose, Peter S., And Fraser, Donald R. “Financial Institutions: Understanding and Managing Financial
Services”, Tex Business Publications
8. Kinsella, Ray, “New Issues in Financial Services”, Powell's Books
9. Central Office of Information Staff, “Financial Services”, Stationery Office
10. Anderton, Brian, Ed, “Current Issues in Financial Services”, Macmillan

Web References
www.indiacorporateadvisor.com
www.nse-india.com
www.nsdl.co.in
Financial Derivatives

Objective: To impart conceptual knowledge on financial derivatives and to provide knowledge on

accounting for derivatives

UNIT I Financial derivatives – an introduction; Futures market and contracting; Forward market –
pricing and trading mechanism; Futures pricing – theories and characteristics

UNIT II Financial derivatives market in India; Regulation of financial derivatives in India

UNIT III Hedging strategy using futures; Stock index futures; Short-term interest rate futures; Long-
term interest rate futures; Foreign currency futures; Foreign currency forwards

UNIT IV Options basics; Option pricing models; trading with options; Hedging with options; currency
options; Financial Swaps and Options; Swap markets

UNIT V Accounting treatment of derivative transactions; Management of derivatives exposure;

Advanced financial derivatives; Credit derivatives

Book References

1. Vohra N D and B.R.Bagri, ‘Futures and Options’ – II Edition; Tata McGraw Hill Ltd
2. Gupta S L, Financial derivatives, theory, concepts and problems, Prentice Hall India
3. John Hull, Options, Futures and other Derivatives, Prentice Hall India
Web References
www.internationalfinancemanagement.com
www.onlinelibrary.wiley.com
www.emeraldinsight.com
 International Banking and Global Financial Markets

Objective: To impart knowledge on the character tics and functions of Global financial markets and
to expose the students to the contemporary developments in Global Financial systems.

UNIT I - Introduction: What are the global Financial Markets? The Foreign Exchange Market -
Comparison of Domestic and International Money and Capital Markets - Global Derivatives Market -
The mechanism of Foreign Exchange Transfers - Foreign Exchange and Eurocurrency Markets

UNIT II - International Money Market - Instruments traded - Euro currency time Deposits - Euro
notes -- Banker's acceptance - Floating Rate Notes - International banking and Euro Currency market
- Syndication technique

UNIT III - International Capital Markets - Bond Market -- Eurobonds and Foreign Bonds - Structure
of International Bond Market - Yields and Proceeds Computation - Currency and Interest ate Swaps -
How Scrap rates are determined - Swaps versus Long - Dated Forwards -- Caps and Floors

UNIT IV - International Equity Markets - World's Major Stock Markets - Emerging Stock Markets --
International Equity trading - Diversification benefits of International Investment - New Issue
Procedures - Private Placements and Rule I44A- fledging the currency Risk of International Portfolios

UNIT V - International Banking –Services offered by the foreign banks – Organization structure and
operations of foreign banks (as affiliated banks, consortium banks, correspondent banks etc.) –Why
banks became Multinational units –Problems of Multinational banks. Financial Intermediation –
maturity transformation and interbank activity –International Trade involving Letter of credit-An
overview of typical transaction –alternative payment and guaranteeing procedure

Book References
1 Meric, Ilhan, “Global Financial Markets at the Turn of the Century”, Science & Technology Books
2 Gurusamy S, Financial Markets and Institutions, Tata McGraw Hill, New Delhi
3 Gurusamy S, Global Financial Institutions, Tata McGraw Hill, New Delhi
4 Maxwell, Charles E.; Bruckner (editor), “ Financial Markets and Institutions: The Global View”, West
Publishing Company
5 Ian H Giddy, Global Financial Markets, Houghton Mifflin in Co., USA
6 John R.Prick, Hkent Basker, John A Hasliem - financial Markets: Instruments and Concepts, Reston
Publishing Company, USA
7 David Kidwell Richard I. Peterson and David W Bcakwcll, Financial Institutions: Markets and Money,
Harcourt Brace, Javanbvich
8 Rajwade V A 'Foreign Exchange: International Finance and Risk Management, Academy of Business
Studies, New Delhi
9 Johnson, Hazel, “Global Financial Institutions and Markets”, Blackwell Publishing
10 Kaushik, Surendra K., “International Capital Markets: New Directions” New York Institute of Finance
11 Yoon. S. Park Jack Zwick Addision, “International Banking Theory and Practice” Wesley Publication
Web References
www.emeraldinsight.com
www.taylorandfrancis.com
www.oxfordjournals.org
****