Annex.54.J.

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ANNEXURE : 54 J.3
SCAA DT: 29.02.2007

BHARATHIAR UNIVERSITY: COIMBATORE – 641 046

SCHOOL OF DISTANCE EDUCATION
COURSE STRUCTURE (2007-2009)

MBA (FINANCE)

PAPER NO NAME OF THE SUBJECT MARKS

First Year

1.1 Principles of Management and Organisational Behaviour 100

1.2 Managerial Economics 100
1.3 Accounting and Finance for Managers 100
1.4 Marketing Management 100
1.5 Human Resource Management 100
1.6 Quantitative Techniques for Management 100
1.7 Research Methods for Management 100

Second Year

2.1 Indian Capital Market and Financial System 100

2.2 Management of Financial Services 100
2.3 Capital Budgeting and Financial decisions 100
2.4 Working capital management 100
2.5 Risk management and Insurance 100
2.6 Security Analysis and Portfolio Management 100
2.7 International Financial Management 100
2.8 Project Work 100
------
TOTAL 1500
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BHARATHIAR UNIVERSITY: COIMBATORE – 641 046

SCHOOL OF DISTANCE EDUCATION
SYLLABUS (2007-2009)

Subject Title : Principles of Management and Organizational

Behaviour
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the principles of management, emphasizing managerial
functions and behavioural concepts and its practical applications in the
organsation.

Goals: To enable the students to learn the basic functions, principles, concepts
of management and behavioral aspects in the organization.

Objectives: On successful completion of the course the students should have:

1. understood the principles and functions of management.
2. learnt the scientific decision making process and problem solving
techniques.
3. learnt modern management process.
4. learnt behavioural aspects of an individual in the organization.

Contents:

UNIT I
Management : Science, Theory and Practice - The Evolution of Management
Thought and the Patterns of Management Analysis - Management and Society :
Social Responsibility and Ethics - Global and Comparative Management - The
Basis of Global Management – Functions of Management-The Nature and
Purpose of Planning - Objectives - Strategies, Policies and Planning Premises -
Decision Making - Global Planning.

UNIT II
The Nature of Organizing - Organizational Structure : Departmentation -
Line/Staff Authority and Decentralization - Effective Organizing and
Organizational Culture - Global Organizing. Co-ordination functions in
Organisation - Human Factors and Motivation - Leadership - Committees and
group Decision Making - Communication - Global Leading.

UNIT III
The System and Process of Controlling - Control Techniques and Information
Technology - Global Controlling and Global Challenges – Direction Function –
Significance.

UNIT IV
Organisational Behaviour : History - evoluation, Challenges & opportunities,
contributing disciplines, management functions and relevance to Organisation
Behaviour. Organizational Behaviour responses to Global and Cultural
diversity.
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Personality - Determinents, structure, behaviour, assessment, psycho-

analytical social learning, job-fit, trait theories.

Emotions and Emotional Intelligence as a managerial tool. Attitudes -

relationship with behaviour, sources, types, consistancy, work attitudes, values
- importance, sources, types, ethics and types of management ethics.
Perception - Process, Selection, Organisation Errors, Managerial implications of
perception.Learning - classicial, operant and social cognitive approaches.
Implications of learning on managerial performance.

UNIT V
Stress - Nature, sources, Effects, influence of personality, managing stress-
Conflict - Management, Levels, Sources, bases, conflict resolution strategies,
negotiation. Foundations of group behaviour : team decision making. Issues in
Managing teams.
Organisational change - Managing planned change. Resistance to change -
Approaches to managing organisational change - Organisational Development -
values - interventions, change management- Organisational culture -
Dynamics, role and types of culture and corporate culture.

REFERENCE

1. Koontz & Weirich, Essentials of Management, Tata McGraw Hill Publishing

Company, New Delhi.
2. Stoner, Freeman & Gilbert, Management, PHI, 6th Edition.
3. Robbins.S.P., Fundamentals of Management, Pearson, 2003.
4. Robbins.S. Organisational Behaviour, X edn., Prentice-Hall, India.
5. Umasekaran, Organisational Behaviour.
6. VSP Rao, V Hari Krishna – Management: Text and Cases, Excel Books, I Edition,
2004

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

Annex.54.J.3 -MBA - Finance - SDE Page 4 of
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Subject Title : Managerial Economics
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the principles of economics, demand analysis, market
structure and macro environment and its application in the decision making.

Goals: To enable the students to learn the basic principles of economics and its
application in the decision making in the business.

Objectives: On successful completion of the course the students should have:

1. understood the principles economics.
2. learnt the demand analysis and various cost aspects in the business.
3. learnt the market structure and the decision making process for various
markets.
4. learnt the profit, profit policies, cost volumes relationship.
5. learnt the macro environment of the business.

Contents:

UNIT I
Managerial Economics - meaning, nature and scope - Managerial Economics
and business decision making - Role of Managerial Economist - Fundamental
concepts of Managerial Economics- Demand Analysis - meaning, determinants
and types of demand - Elasticity of demand.

UNT II
Supply meaning and determinants - production decisions - production
functions - Isoquants, Expansion path - Cobb-Douglas function.

Cost concepts - cost - output relationship - Economies and diseconomies of

scale - cost functions.

UNIT III
Market structure - characteristics - Pricing and output decisions - methods of
pricing - differential pricing - Government intervention and pricing.

UNIT IV
Profit - Meaning and nature - Profit policies - Profit planning and forecasting -
Cost volume profit analysis - Investment analysis.

UNIT V
National Income - Business cycle - inflation and deflation - balance of payments
- Monetary and Fiscal Policies

REFERENCE

1. Joel Dean - Managerial Economics, Prentice Hall/Pearson.

2. Rangarajan - Principles of Macro Economics, Tata McGraw Hill.
3. Athmanand.R., Managerial Economics, Excel, New Delhi, 2002.
4. P.L.Mehta, Managerial Economics, S.Chand and Sons Company Ltd., New
Delhi, 2004.
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5. Peterson Lewis, Managerial Economics, Prentice Hall of India, New Delhi,
2002.

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

Annex.54.J.3 -MBA - Finance - SDE Page 6 of
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Subject Title : Accounting and Finance for Managers
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the principles of accounting, preparation of financial
statements, analysis of financial statements, costing techniques, financial
management and its functions.

Goals: To enable the students to learn the basic principles of accounting and
preparation and analysis of financial statements and also the various functions
of financial management.

Objectives: On successful completion of the course the students should have:

1. understood the principles and objectives of accounting.
2. learnt the preparation of financial statements and the various techniques of
analyzing the financial statements.
3. learnt the costing methods and its application in decision making.
4. learnt the basic objectives of financial management , functions and its
application in financial decision making .

Contents:
UNIT I
Financial Accounting - Definition - Accounting Principles - Concepts and
conventions - Trial Balance – Final Accounts (Problems) - Depreciation
Methods-Straight line method, Written down value method.

UNIT II
Financial Statement Analysis - Objectives - Techniques of Financial Statement
Analysis: Accounting Ratios: construction of balance sheet using ratios
(problems)-Dupont analysis. Fund Flow Statement - Statement of Changes in
Working Capital - Preparation of Fund Flow Statement - Cash Flow Statement
Analysis- Distinction between Fund Flow and Cash Flow Statement. Problems

UNIT III
Cost Accounting - Meaning - Distinction between Financial Accounting and
Cost Accounting - Cost Terminology: Cost, Cost Centre, Cost Unit - Elements of
Cost - Cost Sheet - Problems.
Budget, Budgeting, and Budgeting Control - Types of Budgets - Preparation of
Flexible and fixed Budgets, master budget and Cash Budget - Problems -Zero
Base Budgeting.

Marginal Costing - Definition - distinction between marginal costing and

absorption costing - Break even point Analysis - Contribution, p/v Ratio,
margin of safety - Decision making under marginal costing system-key factor
analysis, make or buy decisions, export decision, sales mix decision-Problems

UNIT IV
Objectives and functions of Financial Management - Role of Financial
Management in the organisation - Risk-Return relationship- Time value of
money concepts - Indian Financial system - Legal, Regulatory and tax
framework. Sources of Long term finance - Features of Capital market
development in India - Role of SEBI in Capital Issues.
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Capital Budgeting - methods of appraisal - Conflict in criteria for evaluation -
Capital Rationing - Problems - Risk analysis in Capital Budgeting.

UNIT V
Cost of Capital - Computation for each source of finance and weighted average
cost of capital -EBIT -EPS Analysis - Operating Leverage - Financial Leverage -
problems.

Capital Structure Theories - Dividend Policies - Types of Divided Policy.

Working Capital Management - Definition and Objectives - Working Capital

Policies - Factors affecting Working Capital requirements - Forecasting Working
Capital requirements (problems) - Cash Management - Receivables Management
and - Inventory Management - Working Capital Financing - Sources of Working
Capital and Implications of various Committee Reports.

REFERENCE
1. Advanced Accountancy - R.L.Gupta and Radhaswamy
2. Management Accounting - Khan and Jain
3. Management Accounting - S.N.Maheswari
4. Prasanna Chandra, “Financial Management – Theory and Practice”, Tata
McGraw Hill, New Delhi (1994).
5. I.M.Pandey, “Financial Management”, Vikas Publishing, New Delhi.

Note : 80% of the questions shall be theory based

20% of the questions shall be problems.

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, Tally, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

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Subject Title : Marketing Management
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the various concepts of marketing, buyer behaviour,
marketing mix and the analysis of the market.
Goals: To enable the students to learn the basic of marketing, process, product
mix, marketing channels, product promotion and the market.
Objectives: On successful completion of the course the students should have:
1. understood the various concepts of marketing.
2. learnt the buyer behaviour and market segmentations.
3. learnt the product mix, channels of distribution and promotion of a product.
4. learnt about the market and analyzing the market conditions.

Contents:

UNITI

Marketing Concepts and Tasks, Defining and delivering customer value and
satisfaction - Value chain - Delivery network, Marketing environment, Adapting
marketing to new liberalised economy - Digitalisation, Customisation, Changing
marketing practices, e-business - setting up websites; Marketing Information
System, Strategic marketing planning and organization.

UNIT II

Buyer Behaviour, Market Segmentation and Targeting, Positioning and

differentiation strategies, Product life cycle strategies, New product development,
Product Mix and Product line decisions, Branding and Packaging, Price setting -
objectives, factors and methods, Price adapting policies, Initiating and responding
to price changes.

UNIT III

Marketing channel system - Functions and flows; Channel design, Channel

management - Selection, Training, Motivation and evaluation of channel members;
Channel dynamics - VMS, HMS, MMS; Market logistics decisions.

UNIT IV

Integrated marketing communication process and Mix; Advertising, Sales

promotion and Public relation decisions. Direct marketing - Growth, Benefits and
Channels; Telemarketing; Salesforce objectives, structure, size and compensation.

UNIT V

Identifying and analysing competitors, Designing competitive strategies for

leaders, challengers, followers and nichers : Customer Relationship marketing -
Customer database, Data warehousing and mining. Attracting and retaining
customers, Customerism in India, Controlling of marketing efforts.
Global Target market selection, standardization Vs adoptation, Product, Pricing,
Distribution and Promotional Policy.
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REFERENCE

1. Marketing Management - Philip Kotler - Pearson Education/PHI, 2003.

2. Marketing Management - Rajan Saxena - Tata McGraw Hill, 2002.
3. Marketing Management - Ramasamy & Namakumari - Macmilan India,
2002.
4. Case and Simulations in Marketing - Ramphal and Gupta - Golgatia, Delhi.
5. Marketing Management – S.Jayachandran - TMH, 2003.

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

Annex.54.J.3 -MBA - Finance - SDE Page 10
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Subject Title : Human Resource Management
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the human resource functions, recruitment, placement,
training, development, compensation, managing quality, labour relations and
employee security.

Goals: To enable the students to learn the importance of the human resources,
recruitment and training and also the importance of the labour relations in the
organization.

Objectives: On successful completion of the course the students should have:

1. understood the changing environment of the HRM and the role of the HR
managers.
2. learnt the recruitment process and the application of the IT.
3. learnt the importance of the training and development.
4. learnt about the pay plans, performance appraisal and compensation.
5. learnt the importance of the labour relation, the employee security and
collective bargaining.
Contents:

UNIT I: Human Resource Function

Human Resource Philosophy – Changing environments of HRM – Strategic
human resource management – Using HRM to attain competitive advantage –
Trends in HRM – Organisation of HR departments – Line and staff functions –
Role of HR Managers.

UNIT II: Recruitment & Placement

Job analysis : Methods - IT and computerised skill inventory - Writing job
specification - HR and the responsive organisation.
Recruitment and selection process : Employment planning and forecasting -
Building employee commitment : Promotion from within - Sources, Developing
and Using application forms - IT and recruiting on the internet.
Employee Testing & selection : Selection process, basic testing concepts, types
of test, work samples & simulation, selection techniques, interview, common
interviewing mistakes, Designing & conducting the effective interview, small
business applications, computer aided interview.

UNIT III: Training & Development

Orientation & Training: Orienting the employees, the training process, need
analysis, Training techniques, special purpose training, Training via the
internet.
Developing Managers: Management Development - The responsive managers -
On-the-job and off-the-job Development techniques using HR to build a
responsive organisation. Management Developments and CD-Roms - Key factor
for success.
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Performance appraisal: Methods - Problem and solutions - MBO approach - The

appraisal interviews - Performance appraisal in practice.

Managing careers: Career planning and development - Managing promotions

and transfers.

UNIT IV: Compensation & Managing Quality

Establishing Pay plans : Basics of compensation - factors determining pay rate -
Current trends in compensation - Job evaluation - pricing managerial and
professional jobs - Computerised job evaluation.

Pay for performance and Financial incentives : Money and motivation -

incentives for operations employees and executives - Organisation wide
incentive plans - Practices in Indian organisations.

Benefits and services : Statutory benefits - non-statutory (voluntary) benefits -

Insurance benefits - retirement benefits and other welfare measures to build
employee commitment.

UNIT V: Labour relations and employee security

Industrial relation and collective bargaining : Trade unions - Collective
bargaining - future of trade unionism. Discipline administration - grievances
handling - managing dismissals and separation.

Labour Welfare : Importance & Implications of labour legislations - Employee

health - Auditing HR functions, Future of HRM function.

REFERENCE

1. Gary Dessler, "Human Resource Management", Seventh edition, Prentice-

Hall of India P.Ltd., Pearson.
2. David A. DeCenzo & Stephen P.Robbins, Personnel/Human Resource
Management, Third edition, PHI/Pearson.
3. VSP Rao, Human Resource Management: Text and cases, First edition, Excel
Books, New Delhi - 2000.
4. Dr. R.Venkatapathy & Assissi Menacheri, Industrial Relations & Labour
Welfare, Adithya Publications, CBE, 2001.
5. Robert L.Gibson and Marianne H.Mitchell, Introduction to Counseling and
Guidance, VI edition, PHI, 2005.

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

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Subject Title : Quantitative Techniques for Management
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the various mathematical models, networking, probability,
inventory models and simulations for managerial decisions.
Goals: To enable the students to learn techniques of operations research and
resources management and their application in decision making in the
management.
Objectives: On successful completion of the course the students should have:
1. understood the basic of the quantitative techniques.
2. learnt the feasible solution and optimum solution for the resource
management.
3. learnt the time estimation and critical path for project.
4. learnt about the application of probability techniques in the decision
making.
5. learnt the various inventory models and simulations in the resource
planning and management.

Contents:

UNIT I

QT – Introduction – Measures of Central Tendency – Mean, Median, Mode.

Mathematical Models – deterministic and probabilistic – simple business
examples – OR and optimization models – Linear Programming – formulation –
graphical solution –simplex – solution.

UNIT II

Transportation model – Initial Basic Feasible solutions – optimum solution for

non – degeneracy and degeneracy model – Trans-shipment Model – Assignment
Model – Travelling Salesmen problem.
UNIT III
Network Model – networking – CPM – critical path – Time estimates – critical
path – crashing, Resource levelling, Resources planning. Waiting Line Model –
Structure of model – M/M/1 for infinite population.

UNIT IV

Probability – definitions – addition and multiplication Rules (only statements) –

simple business application problems – probability distribution – expected value
concept – theoretical probability distributions – Binomial, Poison and Normal –
Simple problems applied to business.
UNIT V
Inventory Models – Deterministic – EOQ – EOQ with Price Breaks – Probabilistic
Inventory Models - Probabilistic EOQ model – Game theory-zero sum games:
Arithmetic and Graphical Method.
Simulation – types of simulation – Monte Carlo simulation – simulation
problems. Decision Theory – Pay off tables – decision criteria – decision trees.
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REFERENCE

1. Statistics for Management – Richard L Levin & Daid S Rubin

2. Statistical Methods – S P Gupta
3. Operations Research – Kanti Swarup, Gupta And Man Mohan
4. Operations Research – Dr. J.K. Sharma Macmillan Indian Ltd.
5. U.K. Srivastava, G.V. Shenoy, S. C. Sharma, “Quantitative Techniques for
Managerial Decision”, Second Edition, Prentice Hall of India

Note : 80% of the questions shall be theory based

20% of the questions shall be problems.

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, Excel, Systat, SPSS, Tora, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

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Subject Title : Research Methods for Management.
Course Number :
Number of Credit Hours : 3 (Three)

Subject Description :
This course presents the basic concept of research design, hypotheses,
sampling techniques, testing the significance and report writing.

Goals: To enable the students to learn the importance of the research, various
methods of analysis of data and its applications in the business management.

Objectives: On successful completion of the course the students should have:

1. understood the basic of the research methods..
2. learnt the various techniques of sampling.
3. learnt the various methods of analysis of data and its applicability in the
decision making.
4. learnt to write a good research report.

Contents:
UNIT I
Research - meaning - scope and significance - Types of research - Research
Process - Characteristics of good research - Scientific method - Problems in
research - Identifying research problem – concepts, constructs and theoretical
framework.

UNIT II
Hypothesis:- meaning - sources - Types - formulation Research design - Types -
case study - features of good design - measurement - meaning - need Errors in
measurement - Tests of sound measurement Techniques of measurement -
scaling Techniques - meaning - Types of scales - scale construction techniques.

UNIT III
Sampling design - meaning - concepts - steps in sampling - criteria for good
sample design - Types of sample designs - Probability and non-probability
samples. Data collection:- Types of data - sources - Tools for data collection
methods of data collection - constructing questionnaire - Pilot study - case
study - Data processing:- coding - editing - and tabulation of data - Data
analysis.

UNIT IV
Test of Significance:- Assumptions about parametric and non-parametric tests.
Parametric Test - T test, F Test and Z test - Non Parametric Test - U Test,
Kruskal Wallis, sign test. Multivariate analysis-factor, cluster, MDS,
Discriminant ananlysis. (NO Problems). SPSS and its applications.

UNIT V
Interpretation - meaning - Techniques of interpretation - Report writing:-
Significance - Report writing:- Steps in report writing - Layout of report - Types
of reports - Oral presentation - executive summary - mechanics of writing
research report - Precautions for writing report - Norms for using Tables, charts
and diagrams - Appendix:- norms for using Index and Bibliography.
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REFERENCE

1. Rao K.V.Research methods for management and commerce - sterling

2. Zikmund, Business Research Methods
3. Kothari C.R.- Research methodology
4. Donald R.Cooper and Pamela S.Schindler - Business Research Methods -
Tata McGraw Hill.
5. Uma Sekaran, Research Methods for Business, Wiley Publications.

Note : 80% of the questions shall be theory based

20% of the questions shall be problems.

Equipments/Softwares and other teaching aids and tools: Computer, LCD

Projector, OHP, Excel, SPSS, PowerPoint slides

Preferable Method of Teaching: Lectures and Case Study

Suggested components for evaluation for internal: Internal Test, Assignment

and Seminar

Suggested contact hours required for teaching: 45 Hours

Annex.54.J.3 -MBA - Finance - SDE Page 16
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INDIAN CAPITAL MARKET AND FINANCIAL SYSTEM

OBJECTIVE :

To explain the structure and functioning of capital market in India.

UNIT I

Indian financial system – Structure and constituents of Indian financial

system. Financial institutions – Financial markets – Financial
instruments and Services - Financial System and economic development.

UNIT II

Industrial Securities Market – Organization and Structure of Stock

exchanges, Membership – Listing, Trading and Settlement - ordinary
shares, preference shares and Bonds.

UNIT III

New issue Market – Issue Mechanism – IPO, Rights issue, private

placement – processes of Book – Building – Issue of Bonus Shares –
Stock Options - functions of new issue market - Overview of Bond
market in India.

UNIT IV

Merchant Bankers and new issue market, Lead managers, underwriters,

Bankers to an issue – Registrars and Share Transfer Agents _ Brokers to
the issue – Debenture Trustees Their role and functions in new issue
market - SEBI Guidelines.

UNIT V

Market for Futures, Options and other financial derivatives – Swaps _

Warrants and Convertibles. Recent trends in derivative markets in India.

Books:
1. M.Y.Khan: Indian Financial System, Fifth edition, Tata McGraw
Hill.
2. L.M.Bhole: Financial Institutions and Markets, Fourth edition,
Tata McGraw Hill
3. P.N.Varshney, D.K. Mittal: Indian Financial System, Fifth edition,
Sultan Chand and sons.
4. H.R.Machiraju: Indian Financial System, Vikas Publishing House.
Annex.54.J.3 -MBA - Finance - SDE Page 17
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MANAGEMENT OF FINANCIAL SERVICES

OBJECTIVE :

To describe the growth and functioning of financial service industry in

India.

UNIT I

Financial services – Meaning – Types - Fund based and Fee based

financial services - Non-Banking Financial Companies – Functions.
Prudential Norms for NBFCs.

UNIT II

Leasing and Hire-Purchase - Types of Lease - Financial Evaluation of

a Lease – Cross Border Leasing - Contents of a lease agreement – Bills
Discounting.

UNIT III

Factoring – Meaning and Types; Credit rating – Rating Agencies -

function – Rating Methodology – Venture Capital and Venture capital
industry in India.

UNIT IV

Merchant Banking – activities in new issue market - Managing issue

of shares and bonds; Mutual Funds – mechanism – types of schemes
– Mutual funds industry in India – recent developments.

UNIT V

Securitization and Financial Reconstruction and Enforcement of

Security interest Act – regulations – Recent developments in the
financial Services industry.

Books:

1. M.Y.Khan, Financial Services, Edition, Tata McGraw Hill

2. Nalini Prava Tripathy, Financial Services, Prentice Hall of India
Annex.54.J.3 -MBA - Finance - SDE Page 18
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CAPITAL BUDGETING AND FINANCING DECISIONS

OBJECTIVE :

To provide a focus on capital expenditure appraisal methods.

UNIT I

Nature of Long term financial decisions – Sources of long term finance –

public issue - institutional finance - innovative modes of financing

UNIT II

Estimation of cash flows – evaluation techniques – Project evaluation

under risk and uncertainty – sensitivity analysis – certainty equivalent –
Decision tree approach Risk adjusted discount rate approach – Analysis
of non-financial aspects.

UNIT III

Capital Structure decisions – Cost of capital and capital structure

determination optimum capital structure

UNIT IV

Leverage – Types –operating and financial leverage – combined leverages

UNIT V

Financial forecasting – determination of the ratio between debt and

equity

BOOKS:

1. Prasanna Chandra, Financial Management, Tata McGraw Hill

2. Pandey I.M, Financial Management
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WORKING CAPITAL MANAGEMENT

OBJECTIVE :

To educate the importance of working capital management concepts in

corporate finance.

UNIT I

Working Capital Management – Theories and approaches – Ratio

Analysis - Fund Flow and Cash Flow Analysis – Cash flow forecasting
and Budgeting.

UNIT II

Financing of working capital – Money market instruments – Bank

Finance- Assessment and Appraisal – Managing corporate liquidity and
financial flexibility

UNIT III

Receivables Management – Cash Management – Inventory Management

UNIT IV

Instruments of international money market – Euro notes – Euro

commercial paper – MTNs and FRNs.

UNIT V

Working Capital Control and Banking policy – Committee

recommendations on working capital – New system of assessment of
working capital finance.

BOOKS:

1. V.K.Bhalla, Working Capital Management, Text and Cases, sixth

edition, Anmol publications
2. Prasanna Chandra, Financial Management, Theory and Practice,
Tata McGraw Hill
3. Pandey, Financial Management, Vikas
Annex.54.J.3 -MBA - Finance - SDE Page 20
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4. Khan and Jain, Financial Management, Tata McGraw hill

RISK MANAGEMENT AND INSURANCE

OBJECTIVE :

To provide the basics of insurance contracts and to explain the various types of
insurance policies.

UNIT I
Introduction to risk management: The Concept of Risk – Risk Vs. Uncertainity
– types of Risks : Market Risk, Credit Risk, Operational Risk , interest risk,
business risk , systematic risk -– Classifying pure risks – methods of handling
pure risks – risk management process – Risk financing techniques – Risk
management objectives – Risk Management Information Systems (RMIS) – Risk
Control

UNIT II
Risk Management by Individuals: Factors effecting individual demands for
insurance - Risk Management by Corporations: Corporate Risk management
process – Types of Risk managing firms.

UNIT III:
Growth & Development of Indian Insurance Industry - Regulations of
Insurance Business and The Emerging Scenario - Introduction to Life &
General Insurance - Life Insurance: Features of Life Insurance - Essentials of
Life Insurance Contract - Kinds of Insurance Policies - Premium determination -
Life Policy Conditions

UNIT IV:
Fire Insurance: Fire Insurance Contracts – Fire Insurance Coverage –– Policies
for stocks –– Rate Fixation in Fire Insurance – Settlement of Claims. Marine
Insurance: Marine Insurance Contract –– Types of Marine Insurance–– Marine
Cargo Losses and Frauds–Settlementofclaims.

UNIT V:
Miscellaneous Insurance: Motor Insurance – Employer’s Liability Insurance –
Personal Accident and sickness Insurance – Aviation Insurance – Burglary
Insurance – Fidelity Guarantee Insurance – Engineering Insurance – Cattle
Insurance – Crop Insurance.

BOOKS:

1. DR. P.K.GUPTA: Insurance and Risk Management, 1st edition, Himalaya

Publishing House.
2.. DR. P.K.GUPTA: Fundamentals of Insurance, 1st edition, Himalaya
Publishing House.
3. C.Gopala Krishnan : Insurance Principles & Practice, Sterling Publishers Pvt.
Ltd.,New Delhi.
4.. George G. R. Lucas, Ralph H.Wherry : INSURANCE, Principles and
Annex.54.J.3 -MBA - Finance - SDE Page 21
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Coverages, U.S.A.
5. Prof. K.S. N.Murthy ad K.V.S. Sarma: Modern Law of Insurance In India,
N.M.Tripathi Pvt. Ltd., Bombay.
6. P.S.Palande, R.S. Shah, M.L.Lunawat: Insurance In India, Sage
Publications, New Delhi.
Annex.54.J.3 -MBA - Finance - SDE Page 22
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SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

OBJECTIVE :

To expose the students to the concepts of investment Risks and

securities. To enable them to understand and utilize the tools available
for analysis. To stress the need of portfolio management and its
application.

UNIT I

Investment _ Meaning and process of Investment Management –

Speculation Investment Avenues in India.

UNIT II

Risk and Return – Historical and Expected return – Measurement – Risk

and its measurement – Systematic and Unsystematic risk – Types –
Measurement and significance of Beta.

UNIT III

Security Valuation – Bond, Equity and preference share valuation – Yield

to maturity- Bond value theorems.

UNIT IV

Fundamental and Technical Analysis – Economy, Industry and Company

analysis – Tools for technical analysis.

UNIT V

Portfolio Selection, performance evaluation and portfolio revision-

Formula plans. – Capital Asset Pricing Model (CAPM)

BOOKS:

1. Kevin.s. Security Analysis and Portfolio Management, prentice hall

of India
2. Prasanna Chandra, Investment analysis and portfolio
management, second edition, Tata McGraw Hill
3. Punithavathy pandian, Security Analysis and portfolio
management, Vikas
4. Investment Management, V.k.Bhalla
Annex.54.J.3 -MBA - Finance - SDE Page 23
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INTERNATIONAL FINANCIAL MANAGEMENT

OBJECTIVE :

To provide a clear understanding of IFM. To emphasize on the

International Monetary system. To provide knowledge on Foreign
exchange and its significance in a developing economy.

UNIT I

IFM- Nature and Scope, IFM and Domestic financial management-

Balance Of payments – significance- preparation of BOP statement – Link
between BOP and the economy.

UNIT II

International Monetary System – Gold standard – IMF and World Bank

Exchange Rate mechanism – factors influencing exchange rate –
Purchasing power parity and Interest Rate parity theorems.

UNIT III

Foreign Exchange Market – Transactions – Spot, Forward, Futures,

Options And Swaps – Arbitrage and speculation in Foreign exchange
market.- Exchange arithmetic, Spread, premium and Discount.

UNIT IV

Foreign Exchange Exposure – managing transaction, translation and

operating Exposure – Techniques for covering the foreign exchange risk -
Internal and external techniques of risk.

UNIT V

International financial market instruments – International Equities –

ADR and GDR – Foreign Bond and euro-bond- Short-term and medium
term instruments.

BOOKS:

1. V.Sharan, International Financial Management, 4th edition,

Prentice hall of India
2. Alan .c. Shapiro, International Financial Management, PHI
3. Levi, International Finance, McGraw Hill international series.
4. Adrian Buckley, Multinational Finance, PHI
Annex.54.J.3 -MBA - Finance - SDE Page 24
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Annex.54.J.3 -MBA - Finance - SDE Page 25
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BHARATHIAR UNIVERSITY: COIMBATORE – 641 046

SCHOOL OF DISTANCE EDUCATION
COURSE STRUCTURE (2007-2009)

QUESTION PAPER PATTERN

Time : 3 Hours Max Marks : 100

Answer any five questions (5 X 20 = 100 Marks)

1.

2.

3.

4.

5.

6.

7.

8.

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