FINANCIAL MANAGEMENT 10DBA341- FINANCIAL DERIVATIVES

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Accounting treatment of derivative transactions; Management of derivatives exposure; ... M.Y.Khan, 'Financial Services' – Tata McGraw –Hill, 3 rd Edition, 2005.
FINANCIAL MANAGEMENT THIRD SEMESTER

10DBA341- FINANCIAL DERIVATIVES UNIT I INTRODUCTION Financial derivatives – an introduction; Futures market and contracting; Forward market – pricing and trading mechanism; Futures pricing – theories and characteristics. UNIT II REGULATIONS Financial derivatives market in India; Regulation of financial derivatives in India. UNIT III STRATEGIES Hedging strategy using futures; Stock index futures; Short-term interest rate futures; Longterm interest rate futures; Foreign currency futures; Foreign currency forwards. UNIT IV OPTIONS Options basics; Option pricing models; trading with options; Hedging with options; currency options; Financial Swaps and Options; Swap markets. UNIT V ACCOUNTING Accounting treatment of derivative transactions; Management of derivatives exposure; Advanced financial derivatives; Credit derivatives. REFERENCES 1. N.D.Vohra and B.R.Bagri, ‘Futures and Options’ – II Edition; Tata McGraw Hill Ltd. 2. S.L.Gupta, Financial derivatives, theory, concepts and problems, Prentice Hall India,

2006.

10DBA342- MERCHANT BANKING AND FINANCIAL SERVICES UNIT I MERCHANT BANKING Introduction – An Overview of Indian Financial System – Merchant Banking in India –Recent Developments and Challenges ahead – Institutional structure – Functions of Merchant Banking – Legal and Regulatory Frameworks – Relevant Provisions of Companies ActSERA-SEBI guidelines- FEMA etc. – Relation with stock Exchanges, OTCEI and NES. UNIT II ISSUE Management Role of Merchant Banking in Appraisal of projects, Designing Capital Structures and Instruments – Issue Pricing – Pricing- Preparation of prospectus selection of bankers, Advertising Consultants etc. – Role of Registrars – Underwriting Arrangements. Dealing with Bankers to the Issue, Underwriters, Registrars, and Brokers. –Offer for sale – Book- Building – Green Shoe Option –E –IPO Private Placement- Bought out Deals –Placement with Fis, MFs, FIIs, etc. off- Shore Issues. – Issue Marketing – Advertising Strategies-NRI MarketingPost Issue Activities.

UNIT III OTHER FEE BASED MANAGEMENT Mergers and Acquisitions – Portfolio Management Services – Credit Syndication – Credit Rating – Mutual Funds – Business Valuation. UNIT IV FUND BASED FINANCIAL SERVICES – Leasing and Hire Purchasing – Basics of Leasing and Hire Purchasing – Financial Evaluation –Tax Implication. UNIT V OTHER FUND BASED FINANCIAL SERVICES – Consumer Credit – Credit Cards- Real Estate Financing – Bills Discounting – Recent Developments in Factoring and Forfeiting – Venture Capital. REFERENCES 1. M.Y.Khan, ‘Financial Services’ – Tata McGraw –Hill, 3 rd Edition, 2005. 2. Machiraju, ‘ Indian Financial System ‘- Vikas Publishing House, 2 nd Edition, 2002. 3. J.C.Verma, ‘ A Manual of Merchant Banking ‘, Bharath Publishing House, New Delhi, 2001. 4. K.Sriram, ‘Hand Book of Leasing, Hire Purchase & Factoring’, ICFAI, Hyderabad, 1992. 5. Economic Dailies, Relevant Publication of AMFS. 6. Bhalla. V.K.-‘Management of Financial Services’ – Mnmol, New Delhi 2001. 6. Bhalla V.K.and Dilbag , Singh , ‘International Financial Centers’, New Delhi, Anmol,1997.

7. Ennew.C.Trevor Watkins & Mike Wright, ‘Marketing of Financial Services’, Heinemann Professional pub., 1990.

10DBA343- CAPITAL MARKETS

UNIT- I Money Market – Indian Capital Market – Evolution and Growth – Constituents of Indian Capital Market – New Financial Institutions – New Financial Instruments – Capital Market Doldrums –Measures of Reactivation – Measures of Investor Protection – Recent Initiatives in the Indian Capital Market – Indian Capital Market – Major Issues – Rebound in Indian Capital Market

UNIT- II Capital market instruments - Meaning – Types – Preference Shares – Equity shares – NonVoting Equity Shares – Convertible Cumulative Preference Shares (CCPS) Company Fixed Deposits– Warrants – Debentures and Bonds – Global Debt Instruments UNIT- III Regulation of Indian capital market - Genesis – The Factors – The Regulatory Framework – Committees on Regulatory Frame work – Primary Market – NIM and Secondary Markets – An Interface – Services of NIM – NIM Vs. Secondary Market – Methods of New Issue – Methods of Marketing Securities – Stock Option or Employees Stock – Option Scheme (ESOP) – Bought – Out Deals Vs. Private Placements UNIT -IV Intermediaries in New Issues Market – Intermediaries in NIM – Merchant Bankers/ Lead Managers – Underwriters – Bankers to An Issue - Brokers to an Issue – Registrars to an Issue and Share Transfer Agents – Debenture Trustees UNIT- V Listing – Security Listing – Security – Stock Exchange – Recognized Stock Exchange – Legal Provisions – Steps – Legal Significance – Refusal of Listing – SEBI Powers – Listing and Corporate Governance – Listing Agreement – Stock Exchange Powers – Listing – Benefits - Consequences of Non-Listing – New Entry Norms for Unlisted Companies – Listing – Suspension / Withdrawal UNIT-VI Underwriting – Definition – Types – Mechanics of Underwriting – Benefits/Functions – Indian Scenario – Underwriting Agencies – Obstacles – Underwriter – Underwriting Agreement – SEBI Guidelines – Variants of Underwriting Grey Market – BOOK-BUILDING – Concept – Characteristics –The Process – Allocation Procedure –Initial Public Offer (IPO) Issue – Additional Issue by Listed Company – Offer by Unlisted Company

Text Books: 1. Dr. S. Gurusamy - Capital Markets - Vijay Nicole Imprints – First Edition – 2006

10DBA344- SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

UNIT I INVESTMENT SETTING Investment setting –Securities –Sources of investment information -Security market indications –Security contract regulation Act -investors protection. UNIT II CAPITAL MARKETS Overview of capital market, Institutional structure in capital market, Reforms and status of capital market, New issue market and problems, Securities and Exchange Board of India (SEBI), Debt market. UNIT III FUNDAMENTAL ANALYSIS Economic analysis - Economic forecasting and stock investment Decisions–Forecasting techniques. Industry analysis-Industry classification. Economy and industry analysis. Industry life cycle – Company analysis measuring earnings-Forecasting earnings – Applied valuation techniques – Graham and Dodds investor ratios. UNIT IV TECHNICAL ANALYSIS Fundamental analysis Vs Technical analysis- Charting methods –Market indicators- Trend reversals –Patterns –moving average –exponential moving average-Oscillators-ROC Momentum –MACD –RSI- Stoastics. UNIT V PORTFOLIO MANAGEMENT Portfolio Theory – Portfolio construction –Diagnostic management-Performance Evaluation – Portfolio revision –Mutual funds.

REFERENCES 1. Donald E.Fisher & Ronald J.Jordan,’Security Analysis & Portfolio Management’, Prentice hall of India Private Ltd., Delhi 2000. 2. V.A.Avadhani –Securities Analysis and Portfolio Management’, Himalaya Publishing House, 1997. 3. V.K.Bhalla,’Investment Management’, S.Chand &Company Ltd., Seventh Edition, 2000. 4. Punithavathy Pandian,’Security Analysis & Portfolio Management’-Vikas Publishing House Pvt., Ltd., 2001

10DBA345- PROJECT MANAGEMENT

UNIT- I Project Definition – Project Life Cycle – Project objectives – purpose of Project Management – Project Management Maturity – Project Selection and Choice – Types of Project – Selection Models – Analysis under Uncertainty and Rise – Project Portfolio Process.

UNIT- II Functional Manager vs. Project Manager – Project Responsibilities – Demands on the Project Manager – Project Manger Selection – Culture and the Project impact of Institutional Environments –Need for Multicultural Communications. UNIT -III Project Organization – Pure Project Organization – Matrix – Mixed Organizational Systems – choosing a Firm – Risk Management – Project Management Office – The Project Team – Human Factors and the Project Team – Sources of Conflict. UNIT- IV Project Planning and Coordination – Systems Integration – Action Plan – Work Breakdown Structure – Partnering - Chartering – Categories of Conflict – Principles of Negotiation – Top Down and Bottom Up Budgeting – Activity vs. Program Budgeting. UNIT- V Network Techniques PERT and CPM – Precedence Programming – Resource Loading – Leveling – Goldratts’ Critical Chain – Monitoring System Design – Reporting Process – Project Management Information Systems (PMIS). UNIT- VI Project Control – Purposes, Types – Three Types of Control Processes – Post Control – critical Ratio and Control Charts – Balance in Control System – Project Auditing – Purpose of Evaluation – use of Audit Report Product Audit Life Cycle – Measurement – varieties of Project Termination. Text Books: 1. Jack.R Mexdith and Samuel J.Mantel Jr, ”Project Management, A Managerial Approach”, Willey, Fifth Edition.

10DBA346- RISK MANAGEMENT AND INSURANCE UNIT I Introduction to risk – Definitions – Measurement of risk – Risk identification – evaluation – property loss exposures – Law of negligence – Types of liability exposures – Life, Health and loss of income exposures – Non-Insurance methods – nature of insurance

UNIT II Indemnity – subrogation – insurable risks – role of agents and brokers – insuring agreement – basis of recovery – loss control measures - Commercial package policy – reporting forms – Transportation insurance – credit insurance – disaster risk management – commercial liability – captive insurance companies UNIT III Automobile losses and Insurance claims – automobile insurance – car theft – alcohol and driving - Driver and auto safety - Homeowners coverage and policy – flood insurance – personal articles floater Types of life insurance – Contract provisions UNIT IV Health insurance providers – Health case reform – annuity taxation – health expense benefits – pension plans – premature death benefits – disability income benefits - Social security UNIT V Retirement benefits – Pension plans – Deferred profit sharing plans – Employee savings plan – Keogh plans – financial planning and estate planning - Field of insurance – Types of insurers – channels of distribution in insurance Globalization of risk management and the insurance

industry – function of insures – reinsurance – Insurance Regulatory and

Development

Authority – The McCarran-Ferguson Act - Responsibilities of insurance

regulations – Tort Reform – taxation of insurance Text Books 1. Trieschmann, Hoyt, Sommer, “Risk Management and Insurance”, Thomson, 12 th Edition

10DBA317- BUSINESS RESEARCH METHODS UNIT I INTRODUCTION TO RESEARCH The hallmarks of scientific research – the building blocks of science in research – the research process for applied and basic research – the need for theoretical frame work – hypothesis development – hypothesis testing with quantitative data. The research design. The purpose of the study: Exploratory, Descriptive, Hypothesis testing (Analytical and Predictive) – cross sectional and longitudinal studies. UNIT II EXPERIMENTAL DESIGN The laboratory and the field experiment – internal and external validity – factors affecting internal validity. Measurement of variables – scales and measurement of variables – development scales - rating scale and concept in scales being developed. Stability measures. UNIT III DATA COLLECTION METHOD Interviewing, questionnaires etc. Secondary sources of data collection. Guidelines for questionnaire design – electronic questionnaire design and surveys. Special data source: Focus groups, Static and dynamic data-collection methods and when to use each. Sampling techniques and confidence in determining sample size. Hypothesis testing determination of optimal sample size. UNIT IV A REFRESHER ON SOME MULTIVARIATE STATISTICAL TECHNIQUES Factor analysis – cluster analysis – discriminant analysis –multiple regression & Correlation – canonical correlation – application of SPSS package. UNIT V THE RESEARCH REPORT The purpose of the written report – concept of audience – Basics of written reports. The integral parts of a report – the title of a report. The table of contents, the synopsis, the introductory section, method of sections of a report, result section – discussion section – recommendation and implementation section. TEXTBOOKS: 1. Donald R.Cooper and Ramcis S.Schindler, Business Research Methods,Tata McGraw Hill Publishing Company Limited, New Delhi, 2000. 2. C.R.Kothari, Research Methodology, Wishva Prakashan, New Delhi, 2001. REFERENCES: 1. Sekaran, Research Methods for Business, John Wiley and Sons Inc., New York, 2000.

2. Donald H.Mc.Burney, Research Methods, Thomson Asia Pvt. ltd. Singapore 2002. 3. G.W.Ticehurst and A.J.Veal, Business Research Methods, Longman, 1999. 4. Ranjit Kumar, Research Methodology, Sage Publication, London, New Delhi, 1999. 5. Raymond-Alain Thie’tart, et,al., Doing Management Research, Sage Publication, London, 1999.

FINANCIAL MANAGEMENT FOURTH SEMESTER

10DBA441- COST CONTROL AND MANAGEMENT UNIT -I Introduction to Cost – Cost Concept – Types of Cost – Cost Management – Classifications of Costs and Cost Sheet – Designing Job Costing and Process Costing Systems – Marginal Costing –Relevant Cost Analysis and Management Decision. UNIT -II Cost Management – Material Cost Management – Labour Cost Management – Overheads Management – Service Costing – Normal Costing –Multiple Overhead Cost Pools

UNIT- III Activity Based Costing – Cost analysis under ABC – Computational methodology of ABC – Benefits and Weaknesses of ABC – Implementation of ABC – Activity Based Management. UNIT- IV Cost Behaviour – Estimating Cost Functions – Cost Estimation Models – Steps in estimating a Cost function using Quantitative Analysis – Cost Drivers and Activity Based Costing. UNIT- V Management Control System – Transfer Pricing – Decentralization and Transfer Pricing – Organization Structure and Decentralization – Choices about Responsibility Centers – Market based and Cost based Transfer Prices – Negotiated Transfer Pricing. UNIT- VI Emerging Concepts in Cost management – Inventory Management – Just in time – Backflush costing – Target costing – Life Cycle Costing – Benchmarking – Value Analysis or Value Engineering– Learning Curve analysis

Text Books: 1. Horngren T Charles, Datar M Srikant, Foster George, “Cost Accounting – A Managerial Emphasis, Thirteenth Edition, Pearson Education, New Delhi, 2008. References: 1. Banerjee Bhabatosh, Cost Accounting – Theory and Practice, Twelfth Edition, Prentice Hall of India 3. Private Limited, New Delhi, 2007.

10DBA442- TAXATION MANAGEMENT UNIT I - INTRODUCTION Direct Taxes, Indirect Taxes: Concept and Examples – Revenue Sharing between Centre and States - Finance Commissions: Role and Functions – Budgets – Tax Evasion and Tax Avoidance.

UNIT II - INCOME TAX Income Tax Law: Definitions – Concept of Income – Previous Year, Assessment Year – Residential Status – Heads of Income – Income from Business – Capital Gains – Carry Forward and Set-off of Losses – Exemptions and deductions – Assessment – Advance Tax – Tax Deduction at Source. UNIT III CORPORATE TAXES Corporate Taxes – Service Tax, VAT – Chargeability – Tax Management. UNIT IV CENTRAL EXCISE LAW Central Excise Law: Chargeability – Scope and Basis of Duty – Classification and Valuation of Goods – Out Payment – Clearance of Goods. UNIT V CUSTOMS LAW Customs Law: Levy – Exemptions – Collection of Customs – Customs Clearance of Import and Export Cargo.

TEXT BOOKS 1. V.K.Singhania , Direct Taxes Law and Practice, Taxmann Allied Services Pvt.Ltd – Latest Edition. 2. Datey V.S., Indirect Taxes– Taxmann Allied services Pvt. Ltd., 2008. REFERENCE BOOK 2. B B Lal, Direct Taxes, Pearson Publication, Latest edition. (Based on every year Financial Bill)

10DBA443- INTERNATIONAL FINANCIAL MANAGEMENT UNIT –I INTERNATIONAL FINANCE Introduction-Global Trade-FDI. UNIT –II INTERNATIONAL MONETARY & FINANCIAL SYSTEM Introduction-Exchange rate regimes-International Capital Markets. UNIT –III FOREIGN EXCHANGE RISK MANAGEMENT Conceptual Overview-Nature of Exposure (Economic, Transaction,Translation)-Hedging and Speculation-

DERIVATIVES

AND

EXPOSURE

MANAGEMENT:Currency

Forwards-

Currency Options-Currency Futures-Currency Swaps-Interest Rate Risk Management. UNIT –IVINTERNATIONAL SOURCE OF FINANACE ADRs, GDRs, ECBs-Syndication- FINANCIAL MANAGEMENT OF MNC:Cost of Capital and Capital Structure of a Multinational Firm-Multinational Capital Budgeting. UNIT –V Multinational Cash Management-Country Risk Analysis-International Taxation-Double Taxation Avoidance Agreements. References 1. “Eun and Resnick”, International Financial Management, 3rd edition, TMH, 2006. 2. “Gohraim Clark”, International Financial Management, 2nd edition, Cengage Learning, 2008. 3. “Jain”, International Financial Management, Macmillan, 2005. 4. “P.G.Apte”, International Financial Management, 4th edition, TMH publisher, 2007. 5. “Surendra.S.Yadav”, Foreign Exchange Markets, Macmillan publisher, 2007. 6. “Nalini Prava Tripathy”, Financial Services, PHI, 2007. 7. “Surendra .S. Yadav, P.K.Jain and Max Peyrard”, Foreign Exchange Markets, Macmillan, 2007. 8. “M.L.Jhingan”, Money, Banking, International Trade & Public Finance, 7th edition, Vrinda, 2007. 9. “Shaporp.A.C”, Multinational Financial Management, PHI.