1

PANJAB UNIVERSITY CHANDIGARH

COURSE STRUCTURE AND

CURRICULUM FOR MASTERS
OF
FINANCE AND CONTROL,
EXAMINATION-2011.
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PANJAB UNIVERSITY CHANDIGARH

COURSE STRUCTURE AND CURRICULUM FOR MASTERS OF

FINANCE AND CONTROL, EXAMINATION-2011.

MFC Part-1 Total Marks: 600

MFC-101 Management and Organization Behaviour Max Marks 100=80+20*

MFC-102 Business Environments -do-

MFC-103 Accounting for Decision Making -do-

MFC-104 Managerial Economics and Quantitative Techniques -do-

MFC-105 Indian Financial System and Services -do-

MFC-106 Tax Planning and Management -do-

MFC Part-II Total Marks: 600

MFC-201 MIS and Computer Application in Accounting Max Marks 100=80+20*

MFC-202 Financial Management and Policy -do-

MFC-203 Security Analysis and Investment Management -do-

MFC-204 International Finance -do-

MFC-205 Viva-Voce (Comprehensive) Max Marks:100

MFC-206 Any one of the following:
i. Training Report and Viva-Voce -do-

ii. Project Report and Viva-Voce -do-

iii. Management of Services (Insurance and Banks) Max Marks: 100=80+20*

iv. Management Control System and Corporate Governance -do-

v. Financial Analysis and Engineering -do-

vi. International Business -do-

*These marks constitute internal assessment

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MFC 101: Management and Organization Behaviour Max Marks 80

OBJECTIVES: To know and understand basics of management process corporate strategies,

human and organisational behaviour.

Unit- I

Definitions, Principals, functions and importance of management, professional manager-

skills, role and tasks, Forecasting & decision making. Nature, Importance and limits of planning,
Planning process, corporate strategy: concept & framework; corporate strategy and planning;
SWOT analysis; strategic alternatives, evaluation and control of strategy.

Unit-II

Organisation process and structure; Organisation as a social system; span of control;

Delegation of authority; centralisation and decentralisation of authority; coordination; control
process and techniques.

Unit-III

Human behaviour; Foundations of Individual behaviour and values, attitudes and

personality; Learning & Perception; stress management; International process; Group
formation and processes, Group dynamics and team development; communication process &
barriers.

Unit-IV

Organisation behaviour; Challenges and Opportunities for Organisation Behaviour;

Organisation culture; Climate and changes; International organizational behaviour, and cross
cultural awareness; Organisation conflicts; Organisational effectiveness; Leadership Styles and
Influencing Processes; Motivation, morale and job satisfaction.

REFERENCES:

1. Stephen P. Robblas : Organisational Behaviour Concepts and

Controversies
2. L.M. Prasad Management Process and Organisational
Behaviour
3. Stoner, Freeman and Gilbert Management
4. R.D. Agarwal Organisation and Management
5. K. Awasthapa Organisational Behaviour
6. Fred Luthans Organisational Behaviour
7. John & Newstron & Davls Organisational Behaviour
8. Moor head/Griffin Organisational Behaviour
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9. Shashi Gupta & Rosiwalia Organisational Behaviour

MFC-102 Business Environments Max Marks 80

OBJECTIVES: To acquaint the students with a large number of environment variables which
have a significant impact on decision making in any business organization:

Unit-I

The concept of Business Environment; its significance and nature, the interaction matrix of
different environment factors. The process of environmental scanning. The environmental
scanning of some important and emerging industries in India.

Unit-II

The politico-legal environment. The relationship between business and government in

India. The constitutional provisions effecting business. An introduction to some important
business Laws like MRTP, Industries (Development and Regulation) Act, 1951 Foreign Exchange
and Management Act and Companies Act (Incorporation, Membership. Share Capital) Contract
Act Definition, features, Bailment, Pledge, Creation of Agency ; Negotiable Instruments Act
(Important features) and Labour Legislation. The changing dimensions of these laws and their
impact on business.

Unit-III

The economic environment : The philosophy, strategy and planning in India. Monetary and
fiscal policies and union budget as an instrument of economic growth. Finances of the union.
Development banks and their relevance to business operations. Foreign trade policy, Industrial
policy in India in recent years. Small business in India, Public Sector vs Private Sector in India.
Economic Reforms and its impact on Indian Business.

Unit-IV

The technological and socio-cultural environment in India: Policy for research and
development, The problems of selecting appropriate technology. The problems of sophisticated
technology in a labour surplus economy. Salient features of Indian Culture and values and their
implications for industrialization and economic growth. Emergence of new demand for
consumer industries in Indian. Consumerism as an emerging force-Social responsibility of
business.

International Environment: MNC’s, foreign collaborations, NRI and corporate Sector, World
Bank, IMF & India, WTO and its impact on Indian Business. Trade Barriers: Trip’s and Trims. ets.
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REFERENCES:

1. K. Aswathappa : Business Environment for Strategic

Management
2. Francis Cherunilam : Business Environment

3. Government of India : Tenth Five Year Plan

4. P.K. Ghosh : Business Policy and Environment

5. Sampat Mukherjee : Economic Environment of Business

MFC-103: Accounting for Decision Making Max. Marks: 80

OBJECTIVES: To develop understanding of accounting tool and information and their uses in
managerial decision taking.

Unit-I

Accounting and its functions, Accounting concepts, Need for Accounting Standards and
Introduction to Indian Accounting standards, Understanding financial Statement ; Income
Statement, Balance Sheet (Vertical and Horizontal Performa), Exposure to the provisions of
schedule VI of the Companies Act 1958. Introduction to audit and its types.

Unit-II

Financial Statement analysis. Nature and attributes of financial statement. Techniques of

financial statement analysis-ratio analysis and statement of changes in financial position
working capital and cash basis beverage analysis.

Unit- III

Introduction: Understanding and classifying cost, cost allocation and sheet.

Direct Costing: Theory and Practice, Cost –volume-profit analysis, Special Decisions

based on differential cost analysis, Standard costing : Development of Standard costs, target
costing. Significance, analysis and investigation of variance, Accounting for variances single plan
and partial plan.
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Unit- IV

Budgetary Control System: Multiple roles of budgeting, organizational behaviour and

operating budgets, Behavioral aspects of budgeting.

Performance Evaluation: Evaluation of Cost Centre, Profit centre and investment centre
performance, Evaluation criteria, return on capital employed and residual income. Non-
financial quality performance measures.

Transfer pricing; Divisional performance and transfer pricing, Transfer pricing determination.

REFERENCES:

1. Punt & Danaldson : Basic Business Finance

2. Khan & Jain : Financial Management

3. Hemton, Jonh J. : Financial Decision Making
4. Stewart C. Myers : Financial Management
5. Pandey, I.M. : Financial Management
6. J.R. Batty : Management Accounting
7. S.K. Bhattacharya : Accounting for Management
8. Jawahar Lal : Management Accounting
9. Khan & Jain : Management Accounting
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MFC-104: Managerial Economics and Quantitative Techniques Max. Marks: 80

OBJECTIVES: To impart basic knowledge of concepts and tools as necessary for managerial
decision making.

Unit-I

Management Economics: Introduction and Basic Concepts, Demand analysis and

forecasting Theory of Production and Cost, Market structures and pricing decision.

Unit-II

Introduction to statistics, Frequency distribution, Measured of Central Tendency, Measures

of dispersion and skewness. Index Number, Time series analysis, Simple Correlation and
Regression.

Unit-III

Probability: Fundamental concepts- random experiment, Event, Mutually exclusive

events, exhaustive events. Definition of probability classical and statistical.

Concepts of addition law, multiplication law, conditionally probability and Bayes

Theoram.

Random variable, concepts of probability function and mathematical expectation.

Theoretical distribution – binomial, prissim and normal their characteristic and

applications.

Tests of significance: Tests of Hypothesis, type I and type II errors, null hypothesis and
significance tests. Tests concerning mean difference between mean (large and small samples).

Concepts and applications of Chi-square, students and Fishers F-Test.

Unit-IV

Introduction to operational research an overview. Linear programming, Graphical

Method, Linear programming. Simple Method, Transportation Problem, Assignment-Problems.
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INVENTORY AND WAITING LINE MODELS

Inventory Control -Deterministic Models

Inventory Control -Probability Models

REFERENCES:

1. A.M. Goon, M.K. Gupta, B. Das Gupta : Fundamental of Statistics Vol I, Vol II
2. K. Mahajan Et. el, : Managerial Economics and Quantitative
Techniques
3. Tara Yamene : Statistic : An Introductory Analysis
4. M.D. Vohra : Quantitative Techniques in Management
5. S.P. Gupta : Statistical Method
6. M.P. Gupta & K. Sharma : Operations Research
7. Sampat Mukherjee : Business & Management Economics
8. Peterson & Lewis : Managerial Economics
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MFC 105: INDIAN FINANCIAL SYSTEM & SERVICES Max Marks: 80

OBJECTIVES: To provide insight to the structure, working and problems of financial system in
India as well as to enable students to appreciate and understand the concepts, mechanism and
utility of different financial services.

UNIT-I

An overview of Indian financial system. Introduction, structure, components and mechanism of

the financial system. Capital and money market; structure & Regulatory aspects. Financial
instruments, Players in the markets and current developments.

UNIT-II

Financial Services: Leasing – Introduction, financial evaluation of lease from lessors and lessee
point of view, lease structuring, Tax, Legal and accounting aspects especially in Indian context.
Credit Rating: Concepts, functions and process of debt rating and SEBI regulations. Factoring:
Features, process and agreements for factoring.

UNIT-III

Merchant Banking: Functions and SEBI regulations and non Fund- based and Fund-Based
activities including role in mobilization of funds, Venture Capital in India (including SEBI
Regulations). Depository Services in India (including regulatory aspects).

UNIT-IV

Mutual Funds: Introduction, management, regulations, working, and Indian experiences.

Portfolio Management: role and SEBI (Portfolio Manager) Regulations. Consumer Finance
Practices in India and an overview of Hire purchase system.

REFERENCES:

1. L.M. Bhole : Financial Institutions and Markets

2. J.C. Verma : Merchant Banking Organisation &
Management
3. Lalit K. Bansal : Merchant Banking and Financial Services
4. M.Y. Khan : Financial Services
5. V.A. Avadhani : Investment and Securities Market in India
6. S.Ramesh & Arun Gupta : Venture Capital and Indian Financial
Sector.
7. H.R. Machiraju : Indian Financial System.
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MFC 106: TAX PLANNING AND MANAGEMENT Max Marks: 80

OBJECTIVES: To give an integrated view of direct tax laws in India and Consideration of law in
Tax Planning and Management decisions.

UNIT-I

Basic concepts and objectives of taxation, Principles of taxation, Structure of direct and indirect
taxes in India. Theories of taxation, Concept and Justification of tax planning and management.
Tax evasion and avoidance; charge of tax, residential status.

UNIT-II

Income tax exemptions, deductions, rebates and relief’s; Computations of business income and
other incomes of company & firms, Provisions relating to depreciation, Deemed income in case
of certain business Corporate tax liability; Provisions related to set off and carry forward of
losses; Selection of accounting method and auditing of accounts for tax purposes.

UNIT-III

Deduction of tax at source and advance tax; Computation of interest; Tax considerations in
foreign collaboration and joint Ventures, Transfer Pricing and international transaction; Mode
of acceptance, payment and repayment of loan and deposits.

UNIT-IV

Tax planning in setting up on new business undertaking. Tax consideration in specific

management decisions regarding make or buy, own or lease, export or domestic sales, retain or
replace, amalgamation and demergers, capital structure and dividend policy.

REFERENCES:

1. Annual Budget & Finance Act. :

2. Bare Act : Income tax Act 1961 & Rules
3. V.K. Singhania : Tax Planning and Management
4. V.K. Singhania : Direct tax Planning
5. R.N. Lakhotia : Corporate Tax Planning
6. Bhagwati Prasad : Law & Practice of Income tax in India
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MFC 201: MANAGEMENT INFORMATION SYSTEMS

AND

COMPUTER APPLICATION IN ACCOUNTING Max Marks: 80

OBJECTIVES: The course is designed to develop skills in identifying and analyzing information
needs for managerial decision making. The course aims at harnessing, information technology
in various functional areas so as to equip in developing prototype systems; and to develop the
abilities of the students to design and evaluate management control system.

UNIT-I

MANAGEMENT INFORMATION SYSTEMS:

• Introduction to Information Systems

• Information Systems for competitive advantage
• Systems approach to problem solving
• Developing, Information system solutions
• Management of Information as a resource
• Technical aspect of Information System
• Managerial overview of telecommunications and database management
UNIT-II
• Transaction processing and reporting systems
• Decision support systems
• Project Planning for M.I.S.
• Systems Analysis and Design
• Implementation, Evaluation and Maintenance of MIS
• Difficulties encountered in MIS Development
• Information Systems in Marketing Operations, HRM, Accounting and Finance
UNIT-III

COMPUTER APPLICATION IN ACCOUNTING:

• Introduction to Computers
• Accounting Information Systems
• Spreadsheet Software and Managerial Application
• Nominal sales and purchase ledger maintenance and reporting
• Stock control – tracking stock movements – Traditional: Rush Manufacturing: Pull
Manufacturing
• Sales order processing and reporting – In Web – based business environment.
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UNIT-IV
• E – Analysis of financial statements – for External and Internal use.
• Managerial Application of Computers: Computer based Financial System and Inventory
System
• Internet and Corporate Finance
• Online Treasury and Cash Management
• Online Share Trading
• E - Banking

REFERENCES:

1. Laudon and Laudon (1996), Management Information System, IVth Ed., Prentice Hall India
(Pvt.) Ltd.

2. James O’ Brien (1998), Management Information Systems; Managerial End User Perspective,
Galgotia Publ., New Delhi.

3. Davis, G.B and M.H. Olson (2000), Management Information Systems; Concepts:
Foundations. Tata McGraw Hill, New Delhi.

4. Arora, A and A. Bhatia (1999), Information Systems for Managers. Excel Books, New Delhi.

5. Murdick and Ross, Information System for Management.

6. J. Kanter, Management Information Systems.

7. G.E. Anders, C.R. Schaber and R.D. Fish, Glencoe, Spreadsheet Accounting- Tutorial and
Applications, McGraw Hill, 1995.

8. Shelly Cashman, Course Technology, 2000, Microsoft office 2000 Excel Comprehensive

9. D.H. Klooster & Allen, 1991, Integrated Accounting-Using ACCPAC BEDFORD Software.

10. Claire May and Gordon S. May, (Fourth Edition), Effective Writing: A Handbook for
Accountants.

11. Roger A. Gee (San Diego Mesa College), Computer Accounting Applications Using Business
Works.
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MFC 202: FINANCIAL MANAGEMENT AND POLICY Max Marks: 80

OBJECTIVES: To develop a conceptual framework of finance functions and to acquaint the

participants with the tools, techniques and process of financial management in the realm of
corporate policy decision making.

UNIT-I

Introduction to Financial Management, objective and functions of financial management.

Changing role of financial manager. Present value. Introduction to risk and return. Introduction
to Treasury Management.

UNIT-II

Cost of Capital, Capital Structure: An overview of financing choice – market efficiency lessons
for Corporate Finance-Capital Structure and firm value, long term Financing, Capital Structure
Decision. Dividend theories, determinants of dividend policy.

UNIT-III

Working Capital Management –An overview, Components, Classification: need and adequacy of
working capital, working capital approaches. Estimation of working capital. Management of
working capital: Cash and marketable securities management, receivable management,
inventory management and accounts payable management. Ratio analysis for
working capital management.
Financing working capital: Market and Bank Finance: its framework, assessment and approval.
Non-Bank finance working capital and banking policies.

UNIT-IV

Investment Decision Market: Estimating cash flows-Cost of Capital Decision Rules, Project
Choice under uncertainty and risk- Organizing and following up of Investment Decision, Analysis
of non-financial aspect including social cost benefit analysis.

Corporate Restructuring: Merger, Consolidation, Acquisition, Divestiture, Leveraged buy out

and spin off. Business failure and reorganization, shareholder value creation.
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REFERENCES:

1. Van Horne : Financial Management and Policy

2. Hamton, John J. : Financial Decision Making
3. Richard A. Breally and Stewart C. Myers : Principals of Corporate Finance
4. I.M. Pandey : Financial Management
5. Prasana Chandra : Financial Management

MFC 203: SECURITY ANALYSIS AND INVESTMENT MANAGEMENT Max Marks: 80

OBJECTIVES: The objective of this course is to develop a conceptual framework for the study of
security analysis and portfolio management.

UNIT-I

Investment Scenario: Concept of Investment, Investment Objectives and Constraints, Security

and non- Security Forms of Investment, Investment process, Stock Market in India, Organization
and management, listing of securities. Trading and Settlement procedure, Sources of financial
information, Investment policies of individuals, institutions and investment companies.

UNIT-II

Valuation of fixed Income Investments and Valuation of Equity Shares, Fundamental Analysis:
Economic analysis, Industry Analysis, Company Analysis, Technical Analysis: Theory of Technical
Analysis, Dow Theory, Bar Charts, Point and Finger Charts, Contrarian Opinion Theories,
Relative Strength Analysis. Moving Average Analysis, Efficient Market Hypothesis Weak, Semi
Strong and forms of efficiency, relevance in investment decisions, Empirical test of EMH.

UNIT-III

Capital Market Theory: Capital Asset Pricing Model (CAPM), SML, applications of SML, Ex-post
and Ex-ante SMLs, Arbitrage, Pricing Theory (APT), Analysis Diversification, Portfolio Risk and
Return, Markowitz Risk-return optimization, Single Index Model, Bond Portfolio Management
Strategies.

Managed Portfolio and Performance Measurement: Classification. Advantage of Managed

Portfolio Management Performance Evaluation, Methods for Calculating Ratio of Return,
Shape’s Treynor’s and Jensen’s Performance measure for Portfolios. Portfolio Revision,
Rebalancing. Portfolio Upgrading Investment timing Formula Plans, Constant Dollar Value Plan,
Constant Ratio Plan, Valuable Ratio Plan, Selection and Revision of Equity Portfolios.
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UNIT-IV

Options: Definition, Put and Call Options, Determinants of Option Value, Option Valuation
Models (Binomial and Black and Schole Model) Valuation of Bonds with put and call options,
Futures: Definition, Stock Index Futures, Interest Rates Futures, and Investments, Strategies
using options: Evaluation of Option based investment strategies, Risk Association with Options.
Application of Index Futures in Portfolio management: Pricing of Index Future Contracts,
Application of Index Futures.

REFERENCES:

1. Fredrick Amling : Investments- An Introduction to Analysis

2. Anthony F. Curley and Robert M. Bear
3. William F. Sharpe and Gordon J. Alender
4. Jack Clark Francis
5. V.K. Bhalla
and Management, Prentice Hall
: Investment Analysis and Management-
Harpera and Row
: Investment P.H.I.
: Management of Investments Mc Graw Hill
: Investment Management, S. Chand and
Company Limited.

MFC 204: International Finance Max Marks: 80

OBJECTIVES: To provide insight to the management of financial environment in international

context.

UNIT-I: (a) International Financial Environment and International Accounting

International Economic Issues and Dimensions, Finance Function in a Multi-National Firm,

International Financial Flows; the Balance of Payment Framework, International Financial
System and Institutions.
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(b) International Accounting

Internationalization of accounting profession. Need for international Accounting Standards and

critical review Accounting Standards (1, 2, 4, 7-11, 16-23, 25 and 30) set by the International
Accounting Standards committee. Harmonization of Accounting Standards.

UNIT-II: Forex Risk Management

Cash, Spot, forward and options markets. Forex: Markets and Instruments. Foreign Exchange
risk and exposure-nature of exchange rate risk, accounting exposure, economic exposure and
translation exposure. Management of risk and exposure through hedging and speculation.
Exchange Rate-Determination and Forecasting.

UNIT-III: International Working Capital Management

Financing Foreign Trade Short term financial markets and management Euro Dollar and Euro
Currencies. International dimensions of cash managements, receivable management and
inventory management.

UNIT-IV: International Financial Regulation and Strategies

Forex Regulation and Control. International Financing Decisions-Long term financial markets-
Equity and bond investments, International aspect of Long-term financing. International
Investment Strategy: relating to capital structure & cost of capital. Evaluation of foreign direct
investment difficulties.

REFERENCES:

1. Rodriquez : International Finance Management

2. Mauric D. Levi : International Finance

3. Shirin Rathore : International Accounting

4. Shapiro : Multinational Financial Management
5. Apte : International Financial Management
6. V.A.Avadhani : International Financial Theory and Practice
7. Manju Aggarwal : International Finance
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MFC 205: Max Marks: 100

VIVA – VOCE
(Comprehensive VIVA – VOCE based on the curriculum
of both the years of MFC)
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MFC 206:

Any One of the following:

i) Training Report and Viva-Voce

ii) Project Report and Viva- Voce

iii) Management of Services (Insurance and Banks)

iv) Management Control System and Corporate Governance

v) Financial Analysis and Engineering

vi) International Business

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MFC 206 (iii) Management of Service-(Banking and Insurance) Max Marks: 80

OBJECTIVES: The course will apprise the students with the management of banking and
Insurance.

UNIT-I

Role of Commercial Banks and Development Banks in the development of Indian Economy.
Reserve Bank of India and its functions. Liberalization in financial services. Narasimhan
Committee Report, Verma Committee Report and other recent developments in India Banking.
Deregulation of Financial Services in India.

UNIT-II

Prudential Norms, NPA’s and Income Recognition Norms. Corporate Planning in Banks. Spread
Management. Risk Management. Bank Investments. Investment Risk Management. Asset –
Liability Management, Bank Marketing.

UNIT-III

History of Insurance, Nature of insurance contract. Principles of Life, Fire, Marine, Accident and
other forms of general Insurance. Life insurance in India, Organization, Management and
Policies of Life Insurance, Corporations. Role in National Economy. Nature of General Insurance,
General Insurance in India-Organization and Management of General Insurance in India.

UNIT-IV

Insurance and Capital Market in India. Application of Management Concepts in the field of
Insurance, Marketing of Insurance Policies. Business Planning, Personnel Management and
Office Administration. Insurance and Taxation. Attitude towards Insurance cores. Insurance and
Information Technology.

BOOKS FOR REFERENCES:

1. NCAER : Attitude Towards Insurance Cover

2. R.S. Sharma : Insurance Principles and Practice
3. S.P. Sharma : Organization of Indian Insurance
4. N.N. Misra : Insurance Principles and Practice
5. S.S. Heubnes & Kemnch Black : Life Insurance
6. Magzine : Yogashekama, Insurance Post
7. S.R. Deva : Law and Practice of Banking
8. H.L. Tandon : Banking Law and Practice in India
9. P.N. Varshney : Banking Law and Practice
10. Reed Cottors : Commercial Banking
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11. Joshi : Managing Indian Banks

12. M.K. Singh : Banking Sectors Management
13. Richard Hands Combe : Banker’s Management
14. Timathyw Koch S. Scott Macdonald : Bank Management

MFC 206 (iv) Management Control System and Corporate Governance Max Marks: 80

UNIT-I

Nature and Scop of M.C.S. – Basic concepts, Boundaries of Management Control. Corporate
level Strategies, Business Unit Strategies. Behaviour in Organization – Goal congruence,
Information and Formal Control System. Types of Organization. Functions of the Controller.

Pricing Corporate Services, Administration of Transfer Prices. Measuring and Controlling Assets
Employed-Structure of the Analysis. Measuring assets, employed Financial Performance-EVA Vs
ROI Alternative Approaches. Performance Measurement-Information used in Control System.

UNIT-II

Performance Measurement – The Techniques, Interactive Control. Management

Compensation-Characteristics of Incentive Compensation Plans, Stock Options, Phantom
Shares, Performance Shares, Performance Criteria and Agency Theory. Revolution in
Management Control, Emerging Management Control Systems. Modern Control Methods-Just-
in-time (JIT), Total Quality Management, Computer integrated. Manufacturing, Decision
Support Systems. Positioning of Management Accounting in Managerial Control, Controls for
differentiated. Service Organisations and Financial Service Organisations and M.C.S.
Multinational Organization and M.C.S., M.C. Projects.

UNIT-III

CORPORATE GOVERNANCE: Meaning, Role and Importance of Corporate Governance.

Relationship between Corporate Governance and Corporate Strategy. Corporate Governance
and Investors Relationship Management. Factors influencing quality of Governance. Principles
of Corporate Governance.

Corporate Governance and Financial Performance. Quality of Financial disclosures, reporting

and transparency. Harmonisation of Accounting Standards. Audit Committee. Blue Ribbon
Committee on improving the effectiveness of Corporate Audit.
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UNIT-IV

Corporate Governance-Global perspective, committee’s on Corporate Governance; Cadbury

Committee on financial aspects of Corporate Governance. Green Bury Committee on Director’s
Remuneration. OECD principles of Corporate Governance. CACH Guidelines on Principles of
Corporate Governance and Global Corporate Governance forum, Hampel Committee Report.

Corporate Governance in India, The Companies (Amendment) Act,1999; Securities Laws

(Amendment) Act, 1999,Committee’s on Corporate Governance; CII Code-Desirable Corporate
Governance (1998 Kumar Mangalam Birla Committee on Corporate Governance, 2001),
Companies (Appointment of Small Shareholders’ Director) Rules, 2001 and SEBI efforts for
Corporate Governance, recent developments.

REFERENCES:

1. Usey and Hammer : Cost Accounting: Planning and Control

2. Morse and Rodh : Cost Accounting: Processing, Evaluation
and Using Cost, Data
3. Robert N. Anthony : Management Control System

4. Horgrew and Datar : Cost Accounting-A Managerial Emphasis

5. Edwin H. Caplan : Managements Accounting and Behaviour
Science
6. Homgren and Foster : Cost Accounting-A Managerial Emphasis
7. Van Home : Financial Management and Policy
8. N. Gopalsamy : Corporate Governance: The New Paradig,
(N.D. Wheeler Pub. 1998)
9. Surendar Kumar : Corporate Governance: A Question of
Ethics (N.D. Galgotia Pub. 2000)
10. N. Balasubramanian : Corporate Board and Governance (N.D.
Steling Pub. 1998)
11. Harvard Business Review : Harvard Business Review on Corporate
Governance (Boston, HBS, 2K)
12 CII Desirable Corporate Governance: A Code
(N.D. CII, 1998)

JOURNALS:

1. Harvard Business Review

2. Chartered Accountant
3. Chartered Financial Analyst
4. Chartered Secretary
5. Management Accountant
6. SEBI and Corporate Laws
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MFC 206 (v) Financial Analysis and Engineering Max Marks: 80

Objective: The course aims at enabling the students to understand and analyse financial
problems and developing their skills for solutions of these problems with the help of innovative
financial processes, instruments and strategies. This course also helps in developing skills to
analyse and interprets financial statements.

UNIT-I

Short-Term Liquidity Analysis: Working capital analysis. Operating activity Analysis, Liquidity
considerations not on the face of financial statements. Statement of cash flows. Cash
Forecasting Short term and long term. Relation between cash flows forms operating, investing
and financial activities. Long term Debt paying Ability-income statement considerations,
balance sheet considerations. Special items that influence a firm’s long term debt paying ability-
joint ventures and long term debt paying ability-joint ventures and long term leasing.

UNIT-II

Profitability Analysis: Analysing company profitability, revenues, cost of sales and expenses.
Calculating and disaggregating rate on return on assets and rate of return on capital employed.
Earnings quality and earnings persistence.

Valuation: Cash Flow Based- Periodic cash flow, residual value and cost of capital Earnings
based Development of theoretical model, theoretical Vs actual P/E ratios, application of
theoretical P/E model.

Analysis of financial statement in the context of forecasting, distress analysis and corporate
restructuring. Analysing the impact of inflation and intangibles on financial statements.

UNIT-III

Introduction of financial engineering, factors contributing to the growth of financial

engineering.

Knowledge base and skills required for financial engineering.

Physical tools of the financial manager, product development, futures, forwards, swaps and
options, Debt market innovations, Equity and Equity related instruments.
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UNIT-IV

Financial Engineering processes and strategies, asset liability management, hedging and related
risk management techniques, corporate restructuring, leveraged buyouts, tax driven deals,
takeovers, synthetic instruments.

Future directions in financial engineering. Effect of globlisation and technology on financial

engineering. Legal aspects of innovative financial products.

REFERENCES:

1. George Foster : Financial Statement Analysis (Prentice Hall)

2. Bernstein Leopold A : Financial Statement Analysis (Irwin)(Mc-Graw-Hill)
3. Stickney/Brown : Financial Reporting and Statement Analysis (The
Dryden Pr.)
4. Johon F. Marshall and Vipul : Financial Engineering, P.H.I.
K. Bansal
5. P.G. Apte : International Financial Management
6. Terry J. Watsham, Thomson : Futures and Options in Risk Management
7. Allan C. Shapiro : Multinational Financial Management
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MFC: 206 (vi) INTERNATIONAL BUSINESS Max Marks: 80

OBJECTIVES: The objective of this course is to acquaint the students with the current India’s
foreign trade policies and the economic aspects relating to international trade. Further
providing an understanding of Export Financing. Export –Import Procedures and the various
operations involved. The main emphasis is also laid on developing a systematic approach to
handle foreign trade transaction. The course will provide an understanding of the theories of
trade, different monetary institutions and the economic environment for international trade.

UNIT-I

Export-Import Policy (1997-2002), Balance of trade & Balance of payments. Capital Account
convertibility, Trends in world trade direction & its composition. Export promotion
and institutional set up, Export Promotion Measures.

100% Export Oriented Units, special export zones; Export House/Trading House/Star Trading
House/Super Star Trading House: Role of State Trading in Exports; Foreign Direct investment in
India, An overview; Foreign collaboration; Project & Consultancy Exports.

UNIT-II

Foreign Exchange Rate determination. Fixed & Flexible Exchange Rate. Spot & Forward
Exchange rate, Swaps. Futures & Options. Processing of an Export Import order: Procedures &
documents related to quality control, Export constraints, Marine Insurance, Customs & Port
clearance. Containerization in India, ICDs.

UNIT-III

Basis of internal Trade: Theories of Internal Trade: Classical Theory. Opportunity Cost Theory,
Heckscher-Ohlin Theory. Price Equalization Theorem: Gains from Trade and Terms of Trade.

Foreign Trade Multiples; Free Trade Vs Protection; Tariffs and Non-Tariffs Business to Trade;
Foreign Exchange Market; International Financial Market; Recent changes in International
Money & Capital Markets.
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UNIT-IV

Regional Economic Groupings. European Union, SAARC. ASEA W, APEC. Their set up &
performance & trade waith India. New International Economic Order. International Economic
Environment, Legal Environment for International Trade.

Structure of International Economic & Monetary System, WTO; Emerging issues & implications
on India’s trade; UNCTAD, IMF: Structure & Functions. International liquidity, IBRD. IDA. ADB its
structure, functions & role.

REFERENCES:

1. Paras Ram : Exports What, Where & How.

2. S.C. Jain : Export Procedures & Documents.
3. Nablus : Foreign Exchange Manual & Procedures.
4. Export-Import Policy (1947- : Ministry of – Commerce. Govt. of India, New Delhi
2002)
5. G.S. Lall : Financing of Foreign Trade & Foreign Exchange
6. Foreign Exchange Manual,
RBI
7. Deepak Nayyar : Indian Export & Import Policies
8. Report of Working Group on : Ministry of Commerce. New Delhi.
Export Houses
9. Economic Survey, Ministry of
Finance, Govt. of India, New
Delhi.
10. B.O. Soderston & Geoffrey : International Economics
11. Kindlebenger : International Economics
12. Heller : International Trade, Theory & Empirical Evidence
13. Kraurs (cd.) : The Economic of Integrates
14. Grubel : International Economics
15. Singer, Hatti Tandon : International Commodity Policy
16. M.L. Verma : International Economics
17. Economic Survey, Ministry of
Commerce. Govt. of India,
New Delhi.
18. Varshney & Bhattacharya : International Economics
19. Foreign Exchange Manual
“Reserve Bank of India”.