SEMESTER - I

PRINCIPLES OF INVESTMENTS
Module 1.1

UNIT I : INTRODUCTION TO INVESTMENTS

 Investment - Meaning & Definition.
 Need for Productive Investment
 Investment Objectives
 The multiple avenues for Investment - in brief
 Importance of Investment Management

UNIT II : RETURN ON INVESTMENTS

 Measures of Return & Risk
 Relationship between Risk & Reward
 Determinants of required Rate of Return
 Need for Diversification of Risk

UNIT III : INVESTMENT VALUATION - IT'S IMPORTANCE

 Time value of Money - Techniques of Discounting & Compounding
 Place of liquidity in investment decisions
 Time value for more than one cash flow
 Introduction to Net Present Value (NPV), Internal Rate of Return (IRR)
 Relevance of NPV & IRR

UNIT IV : INTRODUCTION TO INVESTMENT ANALYSIS

 Financial Statement Analysis
 Financial Ratios - Computation & Application
 Macro Economic Indicators

MICRO ECONOMICS
Module 1.2

MODULE I : THE CONTENTS & NATURE OF ECONOMIC THEORY

A) The Economic problem - scarity & efficiency w.r.t. Production Possibility Curve
Micro & Macro Economics
B) Theory of Consumer's Behaviour :-
Indifference Curve Analysis - Effects - ICC & PCC, Break up of price effect

MODULE II : PRODUCTION, COST & REVENUE

 Production function - Isoquants, Returns to scale
 Producer's Equilibrium
 Economics scale
 Costs - Behaviour of cost curves in the short & long run
 Revenue concepts

MODULE III : MARKET ANALYSIS

 The theory of the firm - Break Even Analysis - Equilibrium of the Firm
 Markets - Perfect Competition, Monopoly, monopolistic competition

MODULE IV : INVESTMENT CRITERIA

 Pricing Methods - Marginal Cost, Full Cost, Discriminatory, Multi - Product & Transfer
Pricing
  Meaning & Importance - Stages
 Methods - Payback, Discounted present value & internal Rate of Return

BASIC STATISTICS
Module 1.3

UNIT I : DESCRIPTIVE STATISTICS FOR UNIVARIATE DATA

Introduction to Statistics : Preparation of frequency distributions including graphic presentation.
Measures of Central Tendency : Mathematical Averages : Arithmetic means, Geometric mean,
Properties & Applications.
Positional Averages : Mode & Median & other partition values - Quartiles, Deciles & Percentiles
(including graphic determination).
Measures of Variation : Absolute, Measures, Range, Quartile Deviation, Mean Deviation, Standard
Deviation, Variance.

UNIT II : FORECASTING TECHINIQUES

Covariance & Correlation: Meaning, Correlation using scatter diagram. Karl Pearson's co-efficient
of correlation : Calculation & Properties, Rank Correlation.
Regression Analysis: Linear regression defined. Regression defined. Regression equations &
estimation.
Components of Time Series: Additive & Multiplicative miodels
Trend Analysis: Finding Trend by moving average methods, Fitting of Linear quadratic trend
principle of least squares.

UNIT III : INDEX NUMBERS

Meaning & Uses of Index Numbers: Simple & weighted Index. No., Construction of Index No.,
Fixed & Chain base; Paashe's Laspeyre's Kelly's & Fishers Index No. simple & tests of adequacy of
Index No. Construction of consumer price indices. Deflating, Splicing, Quantity & Value Index Nos.
Shifting of base year, conversion of chain based to fixed base & vice-a- versa, Cost of living Index
Nos. inflation concept of Industrial Production Indices.

UNIT IV : PROBABILITY, PROBABILTY DISTRIBUTION & ITS APPLICATIONS

Probability: Probability as a concept, Addition & Multiplication Laws of probability (statement &
concept only), Conditional Probability, Bayer's Theorem
Random Variables: Random variable, Expectation & variance, Probability Distributions; Binomial &
Normal Distribution
Decision Making: Under uncertainty & Risk, Expected Monetary Value (EMV), Decision Tree.
(Simple Problem)

BASIC COMPUTER SKILLS

Module 1.4
Guidelines
 The Topic of Unit I and II are Introductory,, They would be taught at conceptual level
only.
 Unit III is expected to be taught through demonstrations and support of practical.
 Unit IV is expected to be taught in the light of information technology.

UNIT I Basics of Computers : Organisation & Architecture; Simple Model of a Computer, Block
Diagram, Characteristics.
Introduction to Operating System : Need for Operating System, Different types of Operating
Systems: Batch, Multiprogramming, Time-sharing, On-line & Real time.
Evolution of Computers : The various Generations of Computer Systems

UNIT II Input & Output Devices (Functions, Identifications & Connections) : Terminals, CRT,
Keyboard, Mouse Optional Mouse, Printers-impacts, Dot Matrix, Laser Printer, Scanner, Joysticks,
Space Ball, Datagloves, Touchscreens.
Computer Memory : Memory Cell, Units of Memory Bit, Bytes, Registers. Cache Memory : Needs &
Characteristics. Access Modes : Random & Serial Assess
RAM, ROM's, Magnetic Disks, Tape & Optional Memory, virtual memory, Buses, The system Bus-
Control, Address & Data Buses
Internet Basics : What is Internet? History & Introduction, Accessing the Internet, Protocols TCP/IP,
SLIP, PPP, Components of URL, FTP, Telnet, HTTP, Web Browsers, Search Engines, Advanced
search, Email Services, Spam & Emoticons, Chatting, Conferencing, Creating a Home Page, a Web
Site, Viruses-type detecting prevention Worms, Firewalls.

UNIT III : SPREADSHEETS (DEMONSTRATIONS & CORRESPONDING PRACTICALS)

Understanding worksheets : Entering data, Cell Ranges, Creating Auto Series, Inserting Sheets,
Deleting Sheets, Renaming Sheets, Linking Worksheets, Protecting worksheets.
Cell Referencing : Relative Cell Referencing, Absolute Cell Referencing, Mixed Cell Referencing.
Functions & Formulas : Maths &Trigonometric, Logical, Date & Time, Conditional, Statistical, Text.
Charts : Inserting in Sheets
Introduction to Power Point : (Demonstration & Corresponding Practical) : Creating & Opening
Presentations, Different views of Power Point Presentations, Slide Manipulation, Adding Transitions to
Slide Show, Viewing the Slide Show Navigating while in your Slide Show.
Desktop Publication with word processing software : (Demonstration & Corresponding Practical)
Introduction to word processing : Identify the components of documents Windows, Standard &
formatting Toolbars, Create Documents, Open Documents, Save Documents, Editing Text in
Documents, Word Wrap Feature, Selecting Text, Drag Drop Feature.
Viewing & Formatting Documents : View a document, Format text, Font Style, Font Size, Format
Painter, Highlight documents, Format Paragraph, Adjust the spacing (line & page spacing), Align text,
Add bullets & number to the lists, Format pages, Change page orientation, Number pages, Set
Margins.
Mail Merge Documents : Create a main document, Specify a data source, Merge the data file & the
main document, Create a Table, Select text in tables, Edit a table by deleting rows & columns,
inserting rows & columns, Resizing rows, Merging cells, Splitting cells, Add borders & shading.

UNIT IV : MANAGEMENT INFORMATION SYSTEM (MIS) : Information, System analysis and

Design, Choice of Information Technology Development of MIS, Decision Making.)

FINANCIAL ACCOUNTING
Module 1.5

1. NATURE, PURPOSE OF ACCOUNTING :

 Meaning & Scope of Accounting : Need development & Definition of Accounting,
persons interest in accounting disclosure, Branches of accounting.
 Concept Accounting Standards
 Journals, Ledger, Subsidiary Books, T/B, Financial Accounting framework
2. INTRODUCTION TO FINANCIAL STATEMENTS :
 B.R.S
 Treatments of Capital & Revenue
 Depreciation accounting; Methods of recording depreciation & methods of providing
depreciation as per AS-4
 Preparation of Financial Accounts; Sole Traders & Partnership Firms, Manufacturing
A/c, Trading, P & L and B/S
3. CORPORATE ACCOUNTING :
a) Issue of Shares & Debentures:
1. Types of Shares & Debentures (in India)
2. Accounting Treatments for issue of shares & debentures with new market and
SEBI rules (Bidding, Price Building etc.)
(Note: Old method of share application money, allotment money
not to be included)
b) Capitalisation of reserves & issue of Bonus Shares
c) Preparation of corporate financial statements in vertical form.
 d) Valuation of Shares.
e) Buy-back of shares & own debentures.
f) Investment Accounting
4. INDIAN ACCOUNTING STANDARDS :
a) AS, GAAP & their impact on Income Statement & B/S.
b) Latest Development: Computerization of accounting & accounting s/w.

BUSINESS ENVIRONMENT
Module 1.6

UNIT I: Indian Business Environment : Concept, Components & Importance

UNIT II: Economic Trends (overview) : Income, Savings & Investment, Industry, Trade & Balance of
Payments, Money, Finance, Prices.
UNIT III: Role of Government : Monetary & Fiscal Policy : Industrial Policy : Industrial Licensing,
Privatization: Devaluation : Export-Import Policy : Regulation of Foreign Investment Collaborations in
the light of recent changes.
UNIT IV: International Environment : International Trading Environment (overview) : Trend in world
trade & their problems of developing countries : Foreign trade & economic growth : International
economic institutions. GATT, WTO, UNCTD, World Bank, IMF: GSP: GSTP: Counter trade

SEMESTER - II

ENVIRONMENT OF FINANCIAL SYSTEM

Module 2.1

UNIT I : Financial System

Meaning, Significance & Components, Composition of Indian Financial Systems, RBI - Organisation,
Management, Functions - Credit Creation & Credit Control, Monetary Policy.

UNIT II : Commercial Banks

Meaning, Functions ; Management & Investments, Policies of Commercial Banks, Recent trend in
Indian Commercial Banks. All India Development Banks : Interest Rate Structure : Determinants of
interest rate structure, Differential rate structure : Recent charges in interest rate structure, State level
Development Banks : State Financial Corporation; Development banks in Industry Financing.

UNIT III : Insurance Organisations

Objective & Functions, various schemes of LIC & GIC, Unit Trust of India : Objective & Functions,
various schemes of UTI & Role of UTI in Industrial Financing

UNIT IV : Financial Markets

Indian Money Market, Indian capital Market

MACRO ECONOMICS
Module 2.2

MODULE I : MONEY & RELATED ISSUES

 Introduction to Money-Functions-Demands & Supply of Money
 IS-LM Curves
 Inflation - Causes & Effects
 Philips Curve

MODULE II :
I (A) ROLE OF FUNCTION OF BANKING
 Commercial Banks - Functions-Creation (multiple expansion of credit)
 Evolution of Central Banks- Functions (in detail)
 Monetary Policy
II (B) BANKING SECTOR REFORM
 Banking Sector Reforms- Evaluation
 Financial Liberalisation - Universal Banking, Private Banking, Foreign Banks
 Banks run & Systematic fragility

MODULE III : FINANCIAL & CAPITAL MARKETS

 Structure of the money market in India - Features, Limitations & Measures to strengthen
the market
 Capital Market - Share Market in India - Function of the Stock Exchange
 SEBI - Need & Role2
 Financial Soundness - credit rating agencies
 New Financial instruments of the Capital Market (Zero coupon bonds, Warrants, Secured
premium notes, Stock invest, Swaps, Options, Derivatives deep discount bonds)

MODULE IV : FOREIGN CAPITAL - POST GLOBALISATION SCENARIO

 Balance of Payments - Structure
 Convertibility - Pros & Cons of Capital account convertibility
 Capital Movements - Direct & Portfolio Investments - MNC's & FDI
 Impact of Foreign Capital

STATISTICAL APPLICATION
Module 2.3

UNIT I : TESTING OF HYPOTHESIS

Concepts of a statistical population and sample form a population, Primary data, Secondary data
sample surveys, Concept of Hypothesis, Testing of Hypothesis, Null & Alternative Hypothesis, Types
of Error, (Consumer & Producers Risk), Level of Significance.
Large Sample Tests : Hypothesis testing for proportion & Means of single & two sample test
Chi-Square test of goodness of fit (with special reference to Finance)

UNIT II : LINEAR PROGRAMMING PROBLEM

Formulation of Linear Programming Problems (LPP), Graphic solution to LPP, Cases of unique &
multiple optimal solutions, unbounded solutions & infeasibility & redundant constraints.
Solution to LPP using simple method - maximization & minimization cases. Shadow prices of the
resources & the ranges of their validity. Identification of unique & multiple optimal solutions,
unbounded solution, infeasibility & degeneracy.

UNIT III : APPLICATION OF STATISTICS IN FINANCE I

Rate of Interest - Nominal, Effective - and their inter-relationships, Compounding & Discounting a sum
using different types of Rates. Types of Annuities, like immediate, due, deferred, perpetual, and their
future & present value using different types of rates of interest, PV, NPV and IRR Depreciation of
assets. Valuation of simple loans & debentures. Sinking Funds (General annuities to be excluded).

UNIT IV : APPLICATION OF STATISTICS IN FINANCE II

Network Analysis : PERT, CPM (Without crashing)
Modern Portfolio Theory : Markowitz Theory, Sharpe's Theory & randon : Walk Theory.
Risk Analysis : Measures of Risk & Performance : Range, Variance, Standard Deviation, Expected
value & Beta.
Measures of Risks related to portfolio : Covariance & Correlation
Return on security & Market Returns.

COMMUNICATION SKILLS
Module 2.4

I. Concept of communication : Definition, Need & Importance of Communication, Process

of Communication, Characteristics of Effective Communication, Methods & Modes of
Communications.
 II. Reading : Reading with fluency & speed, Ways of reading, Skimming, Scanning, Extensive
reading, identifying, inferring, Interpreting, Collecting & Re-ordering relevant information from
text vocabulary, Grammar Language Structure & Punctuation.
III. Writing : Organised presentation of matter (Factual/Informative, Descriptive or Persuasive)
A. Editing, summarizing, considering, (practice to be given through comprehension passages,
summarization, book review, note-making précis writing from literary texts, business & financial
journals, magazines & news papers. Familiarity & acquaintance with business & financial terms
should be encouraged.)
B. Correspondence in different registers :-
 Theory of Letter Writing
 7 Cs of Letter Writing
 Revision of structure of forms of layout
 Appearance of B.L
 Use of Computer for Letter Writing.
Official a) Enquiries / Complaints & Replies, Representations
b) Letters of applications for jobs, Inter-departmental Memos
c) Letters to Bank
d) Request for loans, Overdraft, Current A/c, Credit Facility, Status Enquiry,
Letters related to Share Market, Capital Market.
Semi Official: Letters to Editors
Social Correspondence : Invitations, Congratulations, Condolences.
Appeal e.g. blood donations, environmental and other civic issues.
IV. Speaking / Listening : Fluency, pronouncing, voice modulation, tone pitch, sensitivity to
audience.
How to listen effectively - listening comprehension meaning & sequence of thought (practice
may be given through audio-video methods) passages/exercises to be set to highlight the
objective of communications with special emphasis on 'You' attitude.
V. Barriers to Communication : Types of Barriers : Physical, Mechanical, Psychological,
Linguistic, Socio- Cultural, Barriers to Listening. How to overcome barriers (to be taught along
with case studies, assignments, tasks, field visit etc.)

VI. Group Communication :

A) Written aspects :
1. Drafting Notice, Agenda, resolutions, Minutes of Meetings.
2. Drafting of Reports structure of Business Report, Various Types of Reports-
Following reports to be studied - Routine, Investigative, Projects, Director's Report
etc.
B) Oral aspects :
1. Interviews
2. Group Discussions
3. Presentations
4. Speeches : Social/Corporate Situations

MANAGEMENT ACCOUNTING
Module 2.5

I. Introducing to Financial Statements Analysis :

a. Meaning, Nature, Uses, Scope & Function of Management Accounting.
Role of Management Accounting in decision making, Tools & Techniques of Management
Accounting.
b. Financial Statements Analysis :
1. Meaning & Types of Financial Statements, Limitations of Financial
Statements, Objectives of Financial Statements
2. Interpretation of Financial Statements, Inter - Firm & Intra - Firm.
Comparison with the help of ratio, comparative, commonsize & trnd analysis
3. Fund Flow, Cash Flow.
 II. Working Capital Management :
1. Operations cycle, Need & Importance, Monitoring & Control, Estimation &
Calculation W.C. for trading & other.
2. Management of Current Assets : Management of Cash & Marketing Securities,
Receivables.
III. a. Long Term Funds Management : Sources, Capital Investment Decisions, Risk analysis in
Capital Budgeting
b. Capital Structure : Theories & Determinations
IV. a. Operating & Financial Leverage
b. Concept in Valuation : The time of Money, P.V. IPR of yield, Bond Returns, Returns
from Stock Investments, Dividend modules & Measuring Risks-Standard Deviation

PRINCIPLES OF BUSINESS MANAGEMENT

Module 2.6

UNIT I : Management - Definitions - Objectives - Importance & Nature - Management - Arts, Science
or Profession. Levels of Management & Managerial Skills.

UNIT II : Functions of Management

 Planning - Meaning, Nature, Importance-Types of Plans, Steps in Planning.
 Organizing - Meaning, Process of Organizing, Span of Management, Authority &
Responsibility, Delegation of Authority.
 Controlling - Meaning, Steps, Types of Control, Feed Forward Control, concurrent Control,
Feedback Control, Contemporary issues in Control.
 Staffing - Meaning, Nature & Purpose - Selection training & Performance appraisal.
 Co-ordination - Need Techniques of Co-ordination, Difficulty of Co-ordination.
 Motivation - Definition - Motivation, & Motivators. Self Motivations, the need/want
satisfaction chain, Motivational techniques : Financial & non Financial incentives, Theories
of Motivation - Hierarchy of need Theory; Mc Gregor's theory X & Y, Herzberg's Two factor
theory, Theory Z by Ouchi.

UNIT III : Development of Management thought - Scientific management -

Frederick W.Taylor
Modern Operational Management thought - Henry Fayol
Behavioral approach - Elton Mayo
System Approach - Chester Barnard
Contingency Approach

UNIT IV: Organization Structures, Roles & Functions of Manager. Roles of Values & Ethics in
Management.