MASTER OF COMMERCE – FINANCE

COURSE STRUCTURE

Non-Semester Pattern

1st Year
Code Course Title
MCOM 1001 Corporate Accounting
MCOM 1002 Management Concepts and Organisational Behaviour

MCOM 1003 Marketing Management

MCOM 1004 Financial Management

MCOM 1005 Entrepreneurship Management

MCOM 1006 Business Environment and Law

2nd Year

Code Course Title

MCOM 2001 Managerial Decisions Accounting
MCOM 2002 Merchant Banking and Financial Services
MCOM 2003 Investment and Portfolio Management
MCOM 2004 Statistical Analysis
MCOM 2005 E - Commerce
MCOM 2006 International Trade and Finance

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 M.Com - FINANCE (SYLLABUS)
M.Com - 1st Year PAPER CODE: MCOM 1001

PAPER I - CORPORATE ACCOUNTING

UNIT I
Corporate Accounting: Importance and Scope - Basic Accounting Concepts and Conventions
- Generally Accepted Accounting Principles and Practices (GAAPP) recommended by the
ICAI - Accounting standards issues by ICAI; AS 4 : Contingencies and Events occurring
after the Balance Sheet Date - AS 11: The Effects of Changes in Foreign Exchange Rates -
AS 12: Accounting for Government Grants - AS 16: Borrowing Costs - AS 19: Leases - AS
20: Earnings Per Share - AS 26: Intangible Assets - AS 29: Provisions, Contingent Liabilities
and Contingent Assets.
UNIT II
Preparation of Company Final accounts: Schedule VI Part I and Part II – Profit prior to
Incorporation – Managerial Remuneration – Dividend declaration out of the past and the
current profits – Issue of Bonus shares – Preparation of Balance Sheet; Financial Reporting
and Disclosure Practices – Corporate Governance - Norms of SEBI relating to information
Disclosure in Annual Reports; Professional Chartered Accountants’ Functions and Services -
Code of Conduct - Professional Ethics.
UNIT III
Valuation of Goodwill – Factors affecting value of Goodwill – Methods of Valuing Goodwill
– Valuation of Shares – Methods of Valuation of Equity Shares.

UNIT IV
Amalgamation, Absorption and External Reconstruction of Companies – Purchase
consideration – Accounting treatment – Books of Purchasing Company – Books of Vendor
Company – Alteration of Share Capital and Internal Reconstruction – Scheme of Capital
Reduction - Statements for Liquidation of Companies.

UNIT V
Accounting Systems and Preparation of Final Statements of Accounts of Banking and
Insurance Companies.

Note: Question Paper Shall covers 20% Theory and 80% Problems
REFERENCES:
Gupta R.L. and Others: Advanced Accountancy, Sultan Chand Sons, New Delhi 2008.
Jain S.P. and K.L. Narang: Advanced Accounting, Kalyani Publisherss, New Delhi 2009.
Pillai R.S., Bagavathi S. Uma: Advanced Accounting, S. Chand & Co.,New Delhi. 2008
Shukla M.C.: Advanced Accounts S. Chand and Co., New Delhi 2009.

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M.Com - 1st Year PAPER CODE: MCOM 1002

PAPER II - MANAGEMENT CONCEPTS AND ORGANISATIONAL BEHAVIOUR

UNIT – I
Nature of Management: Social Responsibilities of Business - Manager and Environment
Levels in Management - Managerial Skills - Planning - Steps in Planning Process - Scope and
Limitations - Short Range and Long Range Planning - Flexibility in Planning ¬
Characteristics of a sound Plan - Management by Objectives (MBO) - Policies and Strategies
- Scope and Formulation - Decision Making - Techniques and Processes.

UNIT-II
Organising: Organisation Structure and Design - Authority and Responsibility Relationships -
Delegation of Authority and Decentralisation - Interdepartmental Coordination - Emerging
Trends in Corporate Structure, Strategy and Culture - Impact of Technology on
Organisational design - Mechanistic vs Adoptive Structures - Formal and Informal
Organisation.

UNIT – III
Perception and Learning - Personality and Individual Differences - Motivation and Job
Performance - Values, Attitudes and Beliefs - Stress Management - Communication Types –
Process - Barriers - Effective Communication.

UNIT – IV
Group Dynamics - Leadership - Styles - Approaches - Power and Politics - Organisational
Structure - Organisational Climate and Culture - Organisational Change and Development.

UNIT – V
Comparative Management Styles and approaches - Japanese Management Practices
Organisational Creativity and Innovation - Management of Innovation - Entrepreneurial
Management - Benchmarking - Best Management Practices across the world - Select cases of
Domestic & International Corporations - Management of Diversity.

REFERENCES
Fred Luthans, ORGANISA TIONAL BEHAVIOUR, TataMcGraw-Hill, NewDelhi
Koontz, Weirich &Aryasri, PRINCIPLES OF MANAGEMENT, Tata McGraw-Hill,
NewDelhi,2004
Laurie Mullins, MANAGEMENT AND ORGANISATIONAL BEHAVIOUR, Pearson,
NewDelhi,2007
Meenakshi Gupta, PRINCIPLES OF MANAGEMENT, PHI Learning, NewDelhi, 2009
Ricky Griffin, MANAGEMENT: PRINCIPLES & APPLICATIONS, Cengage,
NewDelhi,2008
Stephen Robbins, ORGANISATIONAL BEHAVIOUR, Pearson, New Delhi
Tripathi & Reddy, PRINCIPLES OF MANAGEMENT, Tata McGraw-Hill, New Delhi,2008

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M.Com - 1st Year PAPER CODE: MCOM 1003

PAPER-III MARKETING MANAGEMENT

UNIT-I
Introduction to Marketing and Marketing Management, Marketing Concepts - Strategic,
Management and Marketing Process - Marketing environment. - Consumer Markets and
buying behaviour - Market segmentation and targeting and positioning marketing mix.

UNIT-II
Product decisions - concept of a product - Product mix decisions - Brand decision - New
product
development strategies - Product life cycle strategies

UNIT-III

Price Decisions - Pricing objectives - Pricing policies and constraints - Different pricing
method product line pricing and new product pricing.

UNIT-IV

Channel decision - Nature of Marketing channels - Types of Channel flows - Channel

functions - Channel co-operation, conflict and competition - Direct Marketing
¬Telemarketing - Internet shopping.

UNIT - V

Promotion Decision - Promotion mix - Advertising Decision, advertising objective

¬advertising campaign - advertisement effectiveness sales promotion & publicity - Sales
force decision.

REFERENCES

Chandrasekar K.S., MARKETING MANAGEMENT TEXT AND CASES, Tata McGraw-

Hill Publication, New Delhi, 2010
Govindarajan, MARKETING MANAGEMENT CONCEPTS, CASES, CHALLENGES
AND TRENDS, Prentice Hall of India, New DelhI. 2009
Philip Kotler, MARKETING MANAGEMENT- ANALYSIS PLANNING AND
CONTROL, Prentice Hall of India, New Delhi,
Ramaswamy. V S & Namakumari. S, MARKETING MANAGEMENT-PLANNING
IMPLEMENTATION AND CONTROL, Macmillan Business Books, New Delihi, 2002,

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M.Com - 1st Year PAPER CODE: MCOM 1004

PAPER – IV FINANCIAL MANAGEMENT

UNIT I
Financial Management: Meaning - Nature and Scope of Finance - Financial Goal - Profit vs.
Wealth Maximization; Finance Functions - Investment, Financing and Dividend decisions.

UNIT II
Capital Budgeting: Nature of Investment Decisions; Investment Evaluation Criteria - Net
Present Value, Internal Rate of Return, Profitability Index, Payback Period, Accounting Rate
of Return: NPV and IRR comparison; Capital Rationing; Risk Analysis in Capital Budgeting.
Cost of Capital: Meaning and significance of Cost of Capital - Calculation of Cost of Debt,
Preference Capital, Equity Capital and Retained Earnings - Combined Cost of Capital
(weighted); Cost of
Equity and CAPM;

UNIT III
Operating and Financial Leverage: Measurement of leverages; Effects of Operating and
Financial Leverage on Profit; Analyzing Alternate Financial Plans; Combined Financial and
Operating Leverage. Capital Structure Theories: Traditional and M.M. Hypotheses - without
taxes and with taxes; Determining capital structure in practice.

UNIT IV
Dividend Policies: Issues in Dividend Decisions - Walter's model - Gordon's model - M-M
hypothesis - Dividend and Uncertainty - Relevance of Dividend - Dividend Policy in
Practice; Forms of Dividends - Stability in Dividend Policy - Corporate Dividend Behaviour.

UNIT V
Management of working Capital: Meaning, significance and types of Working Capital -
Calculating Operating Cycle Period and Estimation of Working Capital Requirements -
Financing of Working Capital and Norms of Bank Finance - Sources of Working Capital -
Factoring services; various committee Reports on Bank Finance - Dimensions of Working
Capital Management.

Note: Question Paper Shall covers 60% Theory and 40% Problems

REFERENCES:
Khan MY, Jain PK, BASIC FINANCIAL MANAGEMENT, Tata McGraw Hill, Delhi , 2005.
Chandra, Prasanna,. FINANCIAL MANAGEMENT, Tata McGraw Hill, Delhi.
Bhabatosh Banerjee, FUNDAMENTALS OF FINANCIAL MANAGEMENT, PHI, Delhi, 2010
Chandra Bose D, FUNDAMENTALS OF FINANCIAL MANAGEMENT, PHI, Delhi, 2010
Preeti Singh, FUNDAMENTALS OF FINANCIAL MANAGEMENT, Ane, 2011.

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M.Com - 1st Year PAPER CODE: MCOM 1005

PAPER – V ENTREPRENEURSHIP MANAGEMENT

UNIT-I
Entrepreneurship – Definition, Role and expectations – Entrepreneurial styles and types –
Characteristics of the Entrepreneur – Functions of an Entrepreneur – Promotion of
Entrepreneurship – Role of Socio-Cultural, Economic and Political Environment – Growth of
Entrepreneurship in Pre and Post independence era – Constraints for the Growth of
Entrepreneurial Culture.

UNIT-II
Entrepreneurial Motivation Theories - Entrepreneurial Competencies – Developing
Competencies – Role of Entrepreneur. Development Programs – Assistance Programme for
Small Scale Units – Institutional Framework – Role of SSI Sector in the Economy – SSI
Units – Failure, Causes and Preventive Measures – Turnaround Strategies.

UNIT-III
Identification of Business Opportunity – Preparation of Feasibility Report – Financial and
Technical Evaluation – Project Formulation – Common Errors in Project Formulation –
Specimen Project Report – Ownership Structures – Proprietorship, Partnership, Company,
Co-operative, Franchise.

UNIT-IV
Corporate Entrepreneurship (Intrapreneurship) – Concepts – Need – Strategies - Corporate
Practices – Select Cases – Dynamics of Competition – Plans for Survival and Growth.

UNIT-V
Women Entrepreneurship – Need – Growth of women Entrepreneurship – Problems faced by
Women Entrepreneurs – Development of women Entrepreneurship – Entrepreneurship in
Informal Sector – Rural Entrepreneurship – Entrepreneurship in Sectors like Agriculture,
Tourism, health case, Transport and allied services.

REFERENCES
Clifford M.Baumback & Joseph R.Mancuso, ENTREPRENEURSHIP AND VENTURE
MANAGEMENT, Prentice Hall
Gifford Pinchot, INTRAPRENEURING, Harper & Row
Ram K.Vepa, HOW TO SUCCEED IN SMALL SCALE INDUSTRY, Vikas
Richard M.Hodgets, EFFECTIVE SMALL BUSINESS MANAGEMENT, Academic Press
Dan Steinhoff & John F.Burgess, SMALL BUSINESS MANAGEMENT – FUNDATMENTALS,
McGraw Hill

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M.Com - 1st Year PAPER CODE: MCOM 1006
PAPER – VI BUSINESS ENVIRONMENT AND LAW

UNIT – I
Dynamics of Business and its Environment - Ethics in Business - Economic Systems and
Management Structure - Economic Transition in India: Privatisation, Globalisation and
Competition - Economic and Business Development and Environmental Issues.

UNIT – II
Infrastructural Environment: Energy, Power, Transport, Communication - Social; Education,
Demographic Issues - Political: Constitution, Electoral Issues, Democracy - Productivity
Factors, Human Elements and Issues for Improvement - Total Quality - Management Issues -
Global Trends in Business and Management - MNCs - Foreign Capital and Collaboration -
Trends in Indian Industry - The Capital Market Scenario - Future Perspective of Indian
Industry and Management.

UNIT-III
Law of Contract - Agreement - Offer - Acceptance - Consideration - Capacity of Contract ¬
Contingent Contract - Quasi Contract - Performance - Discharge - Remedies to breach of
Contract - Partnership - Sale of Goods - Law of Insurance - Negotiable Instruments - Notes,
Bills, Cheques - Crossing - Endorsement - Holder in due course - Holder in value - Contract
of Agency.

UNIT-IV
Company - Formation - Memorandum - Articles - Prospectus - Shares - Debentures
¬Directors - Appointment - Powers and Duties - Meetings - Proceedings - Management
¬Accounts – Audit
Oppression and Mismanagement - Winding up.

UNIT-V
Factory Act – Licensing and Registrtion of Factories, Health, Safety and Welfare Measures -
Industrial Disputes Act: Objects and Scope of the Act, Effects of Industrial Dispute,
Administration under the Act - Minimum Wages Act - Workmen Compensation Act.

REFERENCES:
Keith-Davis & William Frederick: BUSINESS AND SOCIETY, McGraw-Hill, Tokyo.
Rudder Dutt & Sundaram: INDIAN ECONOMY; Vikas, New Delhi
Kapoor, N.D.: ELEMENTS OF MERCANTILE LAW.
Maheswari & Maheswari: MERCANTILE LAW.
Ramiah: COMPANY LAW.

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M.Com – 2nd Year PAPER CODE: MCOM 2001

PAPER – VII MANAGERIAL DECISIONS ACCOUNTING

UNIT – I
Management Accounting as an area of Accounting: Objective - Nature, Management
Accounting and Managerial Decisions - Management Accounts Position, Role and
Responsibilities. Responsibility Centre - Cost Centre, Profit Centre and Investment Centre;
Objective and Determinants of Responsibility Centre.
UNIT – II
Budgeting and Budgetary control: Sales Budget – Cash Budget – Operating Budget – Master
Budget – Flexible Budgeting – Zero Base Budgeting – Performance Budgeting.
Marginal Costing: Concept - Cost Volume Profit Analysis - Break-Even Analysis; Decision
making – Make or Buy, Own or Lease, Repair or Renovate, Sell or Scrap, Export Decision,
Shut Down or Continue and Sales-Mix.
UNIT – III
Standard Costing and Variance Analysis: Material Cost Variance - Labour Cost Variance -
Overhead Variance – Sales Variance - Profit Variance.
UNIT – IV
Financial Statement Analysis: Vertical, Horizontal and Trend Analysis - Ratio Analysis –
Types of Ratios - Uses and Limitations – problems in Balance Sheet to Ratios and Ratios to
Balance Sheet – DuPont Analysis. Cash Flow Statement Analysis - Current Trends in the
preparation of Cash Flow Statement.
UNIT – V
Contemporary Issues in Managerial Decisions Accounting: Value Chain Analysis, Activity
Based Costing (ABC), Transfer Pricing, Total Quality Management (TQM), Target and Life
Cycle Costing, Just in Time (JIT), Backflush Costing, Six Sigma, Balanced Scorecard and
Throughput Accounting (TA).
Note: Question Paper Shall covers 20% Theory and 80% Problems
REFERENCES:
Arora M. N., “Cost and Management Accounting”, 8th Edition, Vikas Publishing House (P)
Ltd
Jain and Narang, Cost and Management Accounting, Ludhiana, Kalyani Publishers, 2002.
Sikdar P.K., “Advanced Cost and Management Accounting”, Oscar Publications.
Maheswari S.N., Principles of Management Accounting
Nigam L.and.Sharma G.L, Cost Accounting

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M.Com – 2nd Year PAPER CODE: MCOM 2002

PAPER – VIII MERCHANT BANKING AND FINANCIAL SERVICES

UNIT-I
Financial Services Industry – Emergence – Developments – Fund Based and Non-fund based
activities – modern activities – New Financial Products and Services, Innovative Financial
Instruments – Challenges Ahead.

UNIT-II
Merchant Banking – Issues Management Intermediaries – Merchant Bankers/Lead Managers –
Underwriters – Bankers, Brokers and Registrars to an Issue and Share Transfer Agents– Debenture
/Trustees – Portfolio Managers – Issue Management Activities/Procedures – Eligibility norms –
Pricing or Issues – Promoters’ contribution – Issue of Indian Depository Receipts (IDR) – Issue
Advertisement – Issue of Debt Instruments – Book building – Green shoe Option – Initial Public
Offer through Stock Exchange Online System – Preferential Issues – Qualified Institutional
Placement.

UNIT-III
Factoring and Forfeiting - Modus Operandi, types, functions – Factoring in India - Bills Discounting –
Real estate Industry – Housing Finance – Housing Finance system – National Housing Bank –
Refinance scheme for HFCs – Asset Liability Management – Securitisation – Mortgage-Based
Securitisation – Reverse Mortgage Loan (RML) Securitisation of Standard Assets.

UNIT-IV
Mutual Funds - Origin, Types of Mutual Funds, Importance, Mutual Funds Industry in India – SEBI’s
directives for Mutual Funds, Private Mutual Funds, Asst Management company – Unit Trust of India
– Evaluation of Performance of Mutual Funds – Money Market Mutual Funds – RBI Guidelines –
Venture Capital: Meaning, Origin, Importance, Methods, India Scenario.

UNIT-V
Insurance – Meaning, Types, Insurance Industry in India and related reforms – Other Financial
Services – Credit Cards – Credit Rating: Regulatory framework – Credit Rating Agencies – Rating
Process and Methodology – Rating symbols/Grades – Pension Plan.

REFERENCES:
Khan, M.Y., FINANCIAL SERVICES, Tata McGraw Hill, New Delhi, 2001.
Gurusamy, MERCHANT BANKING AND FINANCIAL SERVIES, Tata McGraw Hill, Delhi,
2009.
Bhole L.M., Financial Institutions and Markets, Tata McGraw Hill, 2002.

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M.Com – 2nd Year PAPER CODE: MCOM 2003

PAPER IX - INVESTMENT AND PORTFOLIO MANAGEMENT

UNIT -I
Investment – Basics of Investment – Investment, Speculation and Gambling – Investment Categories
– Investment avenues – Non marketable Financial Assets – Money Market Instruments –
Bond/Debentures – Equity Shares – Schemes of LIC – Mutual Funds – Financial Derivatives – Real
Assets – Real Estate – Art – antiques and others.

UNIT- II
Fundamental Security Analysis – Economic Analysis – significance and Interpretation of the
Economic Indicators – Industry Analysis – Industry Growth Cycle - Company analysis – Marketing –
Accounting policies – Profitability – Dividend Policy – Capital Structure – Financial Analysis –
Operating Efficiency – Management – Fundamental Security Analysis – Changes in the Financing
Patterns of Indian Companies – Debt-Equity Ratio for India Companies.

UNIT-III
Technical Analysis – Technical Tools - The Dow Theory – Primary Trend – The secondary Trend –
Minor Trends – Support and Resistance Level – Indicators – Odd Lot Trading – Moving Average –
Rate of Change – Charts – Technical indicators – Charting Techniques – Indicators of the Witchcraft
Variety – Efficient Market Theory – Basic Concepts – Random-Walk Theory – Weak Form of EMH
– Semi-strong Form – Strong Form – The Essence of the Theory – Market Inefficiencies.

UNIT-IV
Portfolio Analysis – Portfolio and Single asset Returns and Risk – Mean Variance Criterion –
covariance – Beta (simple problems) – Portfolio Markowitz Model – simple Diversification – Risk
and Return with Different correlation – Sharpe’s Single Index Model – Sharpe’s Optimal Portfolio –
Construction of the Optimal Portfolio – Optimum Portfolio with short sales.

UNIT-V
Asset Pricing Model Portfolio Evaluation – Capital Asset Pricing Model (CAPM) – Security Market
Line – Assumptions – Arbitrage Pricing Model (APT) – Portfolio Performance Models – Sharpe’s
Performance Index – Treynor’s Performance Index – Jensen’s Performance Index.

REFERENCES
Punithavathy Pandian, SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT, Vikas
Publications Pvt. Ltd, New Delhi. 2001.
Kevin .S, SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT, PHI, Delhi, 2011
Yogesh Maheswari, INVESTMENT MANAGEMENT, PHI, Delhi, 2011
Bhalla V K, INVESTMENT MANAGEMENT: SECURITY ANALYSIS AND PORTFOLIO
MANAGEMENT, S Chand, New Delhi, 2009
Prasanna Chandra, PORTFOLIO MANAGEMET, Tata McGraw Hill, New Delhi, 2008.

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M.Com – 2nd Year PAPER CODE: MCOM 2004

PAPER X – STATISTICAL ANALYSIS

UNIT I
Univariate Analysis: An overview of Central Tendency, Dispersion and Skewness. Sampling
and Data Collection: Sampling and Sampling (Probability and Non-Probability) methods;
Sampling and non-sampling errors; Law of Large Number and Central Limit Theorem;
Sampling distributions and their characteristics.

UNITII
Probability Theory: Probability – Classical, Relative, and Subjective Probability: Addition
and Multiplication Probability Models; Conditional Probability and Baye’s Theorem
Probability Distributions: Binomial, Poisson, and Normal Distributions their characteristics
and applications.

UNIT III
Correlation and Regression Analysis: Two Variables Case
UNIT IV
Statistical Estimation and Testing: Point and interval estimation of population mean,
proportion and variance; Statistical testing – hypotheses and errors; Sample size; Large and
small sampling tests –Z tests, T tests, and F tests.

UNIT V
Non Parametric Tests: Chi-square tests; Sign tests Wilcoxon Signed – Rank tests; Wald –
Wolfowitz tests; Kruskal – Wallis tests.
Note: Question Paper Shall covers 20% Theory and 80% Problems

REFERENCES:
Arora & Arora, Statistics for Management, Sultan Chand, New Delhi, 2009
Gupta S.P., Statistical Methods, Sultan Chand, New Delhi 2009
Levin, Richard I. and David S Rubin, Statistics for Management, Prentice Hall, Delhi 2009
Sonia Taylor,Business Statistics, Palgrave Macmillan, 2009.
Qaziahmed, Zubuirkhan, Shadabahmedkha, Numerical and Statistical Techniques Ane,
2010

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M.Com – 2nd Year PAPER CODE: MCOM 2005
PAPER XI – E-COMMERCE

UNIT I
Introduction to E-Commerce: Meaning and concept: Electronic Commerce versus Traditional
Commerce; Media convergence; E-commerce and E-Business; Channels of E-Commerce;
Business application of E-Commerce; need for E-Commerce; E-Commerce Consumer
applications, E-Commerce Organisation applications - Commerce as an Electronic Trading
System - special features. Internet Concept and Technologies: Concept and Evolution of
Internet; Web Technologies – Global Publishing Concept, Universal Reader Concept and
Client Server Concept; Hypertext Publishing and Hypertext Information Network; Benefits of
Hypertext, URLS, HTTP , HTTPD servers, HTML, HTML forms and CGI Gateway Service.

UNIT II
Business Models of E-Commerce and Infrastructure: E-Commerce Models; Supply Chain
Management, Product and Service Digitations Remote Servicing, Procurement; on line
Marketing and Advertising E-Commerce Resources and Infrastructure Resources and
Planning for Infrastructure. E -Business: Workflow Management, Mass Customization and
Product Differentiation; Organization Restructuring; Integrated Logistics and Distribution;
Knowledge Management Issues and Role of E-Commerce Infrastructure.

UNIT III
Electronic Payment System: Special Features Required in Payment Systems for E-
Commerce, Types of E-Payment Systems; E- Cash and Currency Servers, E-Cheques Digital
Token Based Credit Cards, Smart Cards, Electronic Purses and Debit Cards; Business Issues
and Economic Implications; Operational, Credit and Legal Risk Of E-Payment System; Risk
Management Options in E-Payment System; Components of An Effective Electronic
Payment System.

UNIT IV
Business to Business E-Commerce: Needs and alternative models of B2B E-Commerce;
Technologies, EDI and paperless trading; EDI architecture, EDI standards, VANs, Costs of
EDI Infrastructure, features of EDI Service Arrangement, Internet-based EDI and FTP-based
messaging.

UNIT V
Security Issues in E-Commerce: Security Risks of E-Commerce, Exposure of Resources,
Types of Threats, and Source of Threats, Security Tools and Risk-Management Approach E-
Commerce Security and a Rational Security Policy for E-Commerce: Corporate Digital
Library; I.T. Act 2000.
REFERENCES:
Agarwal & Deeksha Ararwalar, Business on the Net; E-Commerce, Macmillan, Delhi,
2006
Diwan, Prag and Sunil Sharma, Electronic Commerce E – Business Vanity Books, Delhi,
2002
Joseph P.T., E-Commerce, PHI, Delhi, 2007
Kalakafa Whinston, Frontiers of electronic Commerce, Pearson
Minoli and Minol, Web Commerce Technology Hand Book, Tata McGraw Hill, Delhi. 2007

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M.Com – 2nd Year PAPER CODE: MCOM 2006
PAPER XII - INTERNATIONAL TRADE AND FINANCE
UNIT-I
International Trade – Benefits – Basis of International Trade – Foreign Trade and Economic Growth –
Balance of Trade – Balance of Payment – Current Trends in India – Barriers to International Trade –
Indian EXIM Policy.
UNIT-II
Export and Import Finance: Special need for Finance in International Trade – INCO Terms (FOB,
CIF, etc.,) – Payment Terms – Letters of Credit – Pre Shipment and Post Shipment Finance –
Fortfaiting – Deferred Payment Terms – EXIM Bank – ECGC and its schemes – Import Licensing –
Financing methods for import of Capital goods.
UNIT-III
Foreign Exchange Markets – Spot Prices and Forward Prices – Factors influencing Exchange rates –
The effects of Exchange rates in Foreign Trade – Tools for hedging against Exchange rate variations –
Forward, Futures and Currency options – FEMA – Determination of Foreign Exchange rate and
Forecasting – Law of one price – PPP theory – Interest Rate Parity – Exchange rate Forecasting.
UNIT-IV
Export Trade Documents: Financial Documents – Bill of Exchange – Type – Commercial Documents
– Proforma, Commercial, Consular, Customs, Legalized Invoice, Certificate of Origin Certificate
Value, Packing List, Weight Certificate, Certificate of Analysis and Quality, Certificate of Inspection,
Health certificate. Transport Documents - Bill of Lading, Airway Bill, Postal Receipt, Multimodal
Transport Document. Risk Covering Document: Insurance Policy, Insurance Cover Note. Official
Document: Export Declaration Forms, GR Form, PP From, COD Form, Softer Forms, Export
Certification, GSPS – UPCDC Norms.
UNIT-V
Export Promotion Schemes – Government Organizations Promoting Exports – Export Incentives:
Duty Exemption – IT Concession – Marketing Assistance – EPCG, DEPB – Advance License – Other
efforts I Export Promotion – EPZ – EQU – SEZ and Export House.

REFERENCES
Jeevanandam .C, INTERNATIONAL BUSINESS, M/s Sultan & Chand, Delhi, 2008
Sumathi Varma, INTERNATIONAL BUSINESS, Ane, Delhi, 2010
Levi, Maurice D, International Finance, McGraw – Hill, International Edition, 2009
O‟Connor DJ, Bueso AT, International Dimensions of Financial Management; Macmillan, New
Delhi.

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