semester iv core subjects finance semester 4.pdf · proposed syllabus for mba – ii, sem: iii...

Proposed Syllabus for MBA – II, Sem: III & IV (Year 20-21)

SEMESTER – IV

Core Subjects:

International Business Management

Management Control System


Subject: International Business Management

Program: MBA Subject Code: Semester : IV

Teaching Scheme Examination Evaluation Scheme

Lecture Tut orial Practical Credits University

Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

Apply theories, tools, and insights found in the field of international management to common real world scenarios.

Demonstrate or understanding of the similarities (without which no international business could take place) and differences among the peoples of the world and how they affect business management.

Discuss how various legal, political, economic, and cultural systems affect business attitudes

and behavior.

Discuss the managerial issues related to strategic planning, human resource management, financial management, motivation, and leadership which arise in an international context.

Course Content:

UNIT-I

Introduction: Globalization; National Difference in Political Economy; Difference in Culture ;Ethics in

International Business

UNIT-II

The Global trade and Investment Environment: International Trade Theory; Political Economy of International Trade; FDI; Political Economy of

FDI; Regional Economic Integration

UNIT-III

The Global Monetary System: Foreign Exchange Market: Introduction , Nature and Function; International Monetary System ;

Crisis Management by IMF

UNIT-IV

Proposed Syllabus for MBA – II, Sem: III & IV (Year 20-21) Strategy and Structure of International Business: Strategy of International Business; Organization Of International Business; Entry Strategy and Strategic Alliances

UNIT-V

Business Operations : Exporting; Importing and Countertrade; Global Production, Outsourcing and Logistics; Global

Marketing and R&D; Global HRM; Accounting in International Business

Course Outcome:

To make the students understand the different dimension of International Business and

inculcate the spirit of cross border business in the era of globalization.

Text Books:

1. Hill, Charles W. L., Arun K Jain,International Business,McGraw Hill Publication 2. Francis Cherulinam,International Business

Reference Books:

1. Griffin, Ricky W. and Pustay, Michael W- Addison Wesley,International Business: A

Managerial Perspective, Readings, 1999 2. Bhattacharya. B;Going International: Response Strategies of the Indian Sector, Wheeler

Publishing, New Delhi, 1996. 3. Rao and Rangachari, International Business

Web resources:

MOOCs:


Subject: Management Control System




Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

To inculcate the awareness about control systems in the business management environment

Course Content:

UNIT-I

Boundaries of management control, formal and informal, control system, functions of the controller, responsibility centre, revenue centre expense centre administration and R & D centres and marketing centres

UNIT-II

Business unit as profit centre, other profit centre and measuring profitability

Transfer pricing methods and their objectives, ,Pricing Corporate services administration of transfer prices

UNIT-III

EVA v/s ROI

Budget preparation nature and budget preparation process

Variance analysis and limitation of variance analysis

UNIT-IV

Performance measurement and interactive control

Organizational incentives, incentive compensation plans. Incentives for corporate Officers

and Business units managers

Professional , Financial Services organization , Health care Organization Non-profit

organizations

UNIT-V

Multinational Organizations, Transfer Pricing Exchange rates

Proposed Syllabus for MBA – II, Sem: III & IV (Year 20-21) Nature of project , Project planning execution and evaluation

Course Outcome:

Upon successful completion of this course the students should be able to:

demonstrate a thorough knowledge of what kind of management control systems that

management may use running the business, including operational and risk management and

internal control.

demonstrate a understanding of the role of the board, the audit committee, the internal and

external auditors play in the business community.

discuss how management control systems can function differently in different organizations

and how management control systems can have unintended implications.

critically evaluate various financial management systems and their use in organisations,

including a critical assessment of the cost / benefit of management control systems

identify and evaluate organisational challenges associated with implementing the new control

systems and /or major changes to existing systems.

identify and reflect on ethical issues related to different management control systems and

implementation strategies.

Text Books:

1. Robert N. Anthony, Vijay Govindrajan, Management Control Systems, Tata M/c graw Hill ,

Special Indian 12 edition

Reference Books:

1. Pro.Mahesh S. Halale, Management control systems, Everest Publishing House, First edition,

2006

2. N. Ghosh, Management Control Systems, Prentice hall of India Pvt Ltd, New Delhi Second

Printing, 2006

3. Subhash Sharma, Management Control systems- text and cases, Tata McgrawHill, 1988

Web resources:

MOOCs:


SEMESTER – IV

Specialization Subjects:

Functional Specialization 1 to 5:

Finance

Financial Derivatives

Financial Markets and Services

International Financial Management

Mergers, Acquisitions and Corporate Restructuring

Contemporary issues in Finance

Functional Specialization Project – II

(Separate Guidelines)


Subject: Financial Derivatives




Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

To equip students with principles and techniques of Complex Derivatives Options.

Course Content:

UNIT-I

Financial Derivatives - Introduction, economic benefits of derivatives - Types of financial

derivatives - Features of derivatives market - Factors contributing to the growth of derivatives -

functions of derivative markets - Exchange traded versus OTC derivatives -traders in derivatives

markets - Derivatives market in India

UNIT-II

Futures and forwards - differences-valuation of futures, valuation of long and short forward

contract. Mechanics of buying & selling futures, Margins, Hedging using futures -specification

of futures - Commodity futures, Index futures, interest rate futures – arbitrage opportunities.

UNIT-III

Financial Swaps - features and uses of swaps - Mechanics of interest rate swaps – valuation of

interest rate swaps – currency swaps – valuation of currency swaps

UNIT-IV

Options: Types of options, option pricing, factors affecting option pricing – call and put options

on dividend and non-dividend paying stocks put-call parity - mechanics of options -stock options

- options on stock index - options on futures – interest rate options. Concept of exotic option.

Hedging & Trading strategies involving options, valuation of option: basic model, one step

binomial model, Black and Scholes Model, option Greeks. Arbitrage profits in options.


UNIT-V

Commodity derivatives: commodity futures market-exchanges for commodity futures in India, Forward Market Commissions and regulation-commodities traded – trading and settlements – physical delivery of commodities Interest rate markets - Type of rates, Zero rates, Bond pricing, Determining Zero rates, Forward rules, Forward rate agreements (FRA), Treasury bond & Treasury note futures, Interest rate

derivatives.

Course Outcome:

Having successfully completed this module you will be able to:

Have a good understanding of derivative securities

Acquire knowledge of how forward contracts, futures contracts, swaps and options work, how they are used and how they are priced

Be able to describe and explain the fundamental features of a range of key financial derivative instruments

Be able to decide which securities to use for hedging and/or speculative purposes

Text Books:

Ruey S. Tsay (2005). Analysis of Financial Time Series (2nd ed.). John Wiley.

John C. Hull. Options, Futures and Other Derivatives (7th ed.). Pearson Education.

Reference Books:

JurgenFranke, Wolfgang Hardle and Christian Hafner. Introduction to Statistics of Financial Markets.

R. Madhumathi, M. Ranganatham. Derivatives and risk management (1st ed.)

Redhead, K. Financial Derivatives- An introduction to futures, forwards, options, swaps,

Prentice Hall of India.

Web resources:

MOOCs:


Subject: Financial Markets and Services




Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

To enable the students to acquire basic understanding of the structure, organization and

functioning of the Financial System in India. The course also aims at exposing the students to

new financial instruments and their implications in the existing regulatory framework.

Course Content:

UNIT-I

Introduction:

(a) Financial system: Meaning, role and functions of a financial system, Organized and

unorganized financial system.

(b) Components: Financial Assets, Financial Intermediaries, Financial Markets (money and

capital markets in India) Relevance of various interest/return rates, Regulatory framework,

Financial Instruments (in brief).

UNIT-II

Financial Institutions: Achievements and Limitations.

(a) Money market institutions: Meaning, Role of the Central Bank(RBI) in money markets.

Commercial banks: Meaning and Functions Indigenous Financial Agencies: Bankers, Money

lenders, Discount houses, Accepting houses(only meaning and features)

(b) Capital Market institutions: (Meaning and functions) Merchant Banks, Investment

companies, Management Investment companies, Development banks, Mutual Funds.

(c) Special Financial Institutions: Factors for their growth (need)

Objectives and functions of:

(1) IDBI (2) IFCI (3) SFCs (4) ICICI (5) EXIM Bank of India

(d) Coperative Banking Institutions: Meaning, definition, principles, Features and Structure.

Proposed Syllabus for MBA – II, Sem: III & IV (Year 20-21) (e) Non-Banking Finance Companies: Meaning, Role, Types of NBFC services, Reclassification

of NBFCs.

(f) SEBI: Introduction to SEBI ACT 1992, Main Functions of the Board.

UNIT-III

(a) Capital Markets: Meaning, Role and importance, Development initiatives and reforms (in

brief). Composition: Primary-Secondary

I. Primary Markets: Meaning, instruments, New Issue Market: Features, objectives and

functions, Constituents or players, Problems and Recent Developments including the concept of

book building. Modes of procuring long term funds: Public issue, Rights issue, Bonus issue,

Private placement.

II. Secondary Markets.: Meaning, Functions of the stock exchange, Benefits to the community-

investors-companies, Listing of securities and its benefits, Stock market indices, Types of

dealings, types of securities traded on the Indian stock exchanges, Comparison of the three

exchanges (BSE, NSE, OTCEI)

(b) Money Markets: Meaning, features of organized and unorganized money markets

Instruments: Treasury Bills, Certificate of Deposits, Commercial Paper, Call money Commercial

bills, Inter-corporate deposits, Inter-bank participation certificates.

UNIT-IV

Overview of Financial Services Industry. Coverage: Introduction/Concept of Financial Services,

and Types of Financial Services. Focus on fee based financial services only.

Merchant Banking – Pre and Post Issue Management, Underwriting. Regulatory Framework

relating to Merchant Banking in India. Coverage: Merchant Banking – Concept, Services, Pre

and Post Issue Management, Underwriting: role and purpose of Underwriting. Regulatory

Framework relating to Merchant Banking in India.

UNIT-V

(a) Factoring: Meaning, Types, costs and benefits of factoring, difference between factoring and

Forfaiting.

(b) Leasing: Meaning, Definition, advantages to lessor and lessee, types of leases (operating,

finance, leveraged, sales and lease-back, leveraged and cross-border.)

(c) Underwriting: Meaning and benefits

(d) Credit Rating Agencies: Meaning and role of such agencies.

A brief idea about : CRISIL, CARE ICRA.

Proposed Syllabus for MBA – II, Sem: III & IV (Year 20-21) (e) Others: A brief idea about : NSDL, STCI.

Course Outcome:

Ability to analyse complicated scientific and professional problems and view a situation

critically, address the current financial management issues of a company, take decisions,

complete highly qualified professional functions.

Demonstrate ability of financial management and forecast, ensuring competitiveness of a

company and increasing its added value in the changing environment of global economy

Team-work skills, ability to understand the interests of different groups, to argue and

conduct discussions, communication and conflict management skills.

Demonstrate understanding and ethical responsibility about the impact of professional

activities upon environment and society

Ability to access and analyze the financial environment in the local and international

markets

Text Books:

The Indian financial system and Development- Vasant Desai, Himalaya Publishing House.

Financial Markets and Institutions-Dr. S. Gurusamy,Tata McGraw Hill.

Reference Books:

The Indian Financial System-Dr. Bharti Pathak, Pearson.

Indian Financial System-M.Y.Khan, Mc.Graw Hill

Financial Management-Prasanna Chandra,

Financial Management-P.V.Kulkarni and Satyaprasad

Financial Management- I.M.Pandey, Vikas Publishing House.

Web resources:

MOOCs:


Subject: International Financial Management




Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

To acquaint students with fundamental concepts of International Finance and Exchange Rate

Systems and to acquaint students with tools, techniques and strategies to make International finance related decisions. To provide the better understanding about export & import procedures and financing.

Course Content:

UNIT-I

International Finance – Overview Globalization and the Multinational Firm International Monetary System

Balance of Payments The Market for Foreign Exchange International Parity Relationship and Forecasting Foreign Exchange Rate

UNIT-II

Forward Exchange Arithmetic Exchange Arithmetic Forward Exchange contracts Forward Exchange Rates based on cross rates Inter bank deals

Execution of forward contract Cancellation/Extension of forward contract

UNIT-III

International Financial Markets International Banking and Money Market International Bond Market International Equity Markets

Cash Management Futures and Options on Foreign Exchange Currency and Interest Rate Swaps


UNIT-IV

International Portfolio Management with Exposure Management International Portfolio Investments

Foreign Direct Investment and Cross-Border Acquisitions

Management of Economic Exposure Management of Transaction Exposure Management of Translation Exposure

UNIT-V

Foreign Trade Contracts & Procedures

Foreign Trade contracts and documents- Incoterm Letters of Credit-Meaning and Mechanism Types of Letters of Credit Operation of a Letters of Credit

Finance of Foreign Trade – Financing Exports Post shipment Finance, Project Exports & Investments Abroad Export-Import Bank of India Export Credit Insurance, Financing Imports

Course Outcome:

• To learn to extract relevant data from corporate data bases for calculating various ratios.

• To learn to calculate and interpret various ratios from the data extracted. • To learn to analyze various ratios for overall understanding of the financial performance

of a company.

Text Books:

1. Eun&Resnick, International Financial Management, Tata McGraw hill, latest Edition

Reference Books:

1. P. G Apte, International Financial Management, PHI, Latest Edition

2. MadhuVij, International Financial Management, Excel Books, Latest Edition 3. J. Madura,International Financial Management, South Western Publication, Latest Edition 4. Alen Shapiro, Multinational Financial Management, John Wiley Publication, Latest Edition 5. H. P. Bhardwaj, Foreign Exchange Handbook , Bhardwaj Publishing Co., 2

nd Edition

Web resources:

MOOCs:


Subject: Mergers, Acquisitions and Corporate Restructuring




Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

Liberalized economy has generated many opportunities of combining businesses to create

wealth.

The fundamental aim of the course is to prepare students to take advantage of the current scenario and understand how mergers, acquisition and corporate restructuring are implemented.

Course Content:

UNIT-I

Corporate Restructuring: An Overview

Merger and Acquisition: Basic

Procedure, Aspects and Issue in Merger & Acquisition

UNIT-II

The Legal and Regulatory Framework

Accounting for Merger and Acquisition

Due Diligence

UNIT-III

Basics of Valuation

Business Valuation Methods

UNIT-IV

Other Forms:

Demerger

Takeover

Strategic Alliance

Joint Venture

Proposed Syllabus for MBA – II, Sem: III & IV (Year 20-21) Leverage Buy Out (LBO)

UNIT-V

Employee Stock Ownership P lan (ESOP)

Financial Restructuring: Shares Buyback

Cross Border Merger and Acquisition

Case Studies

Course Outcome:

To expose the students to the criticality of emerging field of Mergers, Acquisitions and Corporate restructuring

Master the language and processes of M&A

Identify M&A issues worth attention.

Analyze an M&A transaction rigorously.

Develop a concept, design a deal, and present a proposal for an M&A transaction.

Form an opinion about a proposed deal.

Text Books:

1. Bhagaban Das, DebdasRaskhit&SathyaSwaroopDebasishCorporate Restructuring: Merger, Acquisition and Other Forms Himalaya Publishing House Latest Edition

2. Rajesh Kumar, B (2011). Mergers and Acquisitions Text and Cases, 1/e; New Delhi: Tata McGraw Hill

3. Aurora, Shetty, Kale; Mergers and Acquisitions, Oxford University Press, Latest Edition

Reference Books:

1. Prasad G Godbole Mergers, Acquisitions and Corporate Restructuring Vikas Publication Latest edition

2. Sudi Sudarsanam Creating Value from Mergers and Acquisitions Pearson Education Latest edition

3. Machiraju H.R Mergers Acquisitions and Takeovers New Age International Publishers 4. Patrick A. Gaughan Mergers, Acquisitions, and Corporate Restructurings, 5th Edition

Wiley Publication 5. Ravindhar Vadapalli Mergers, Acquisitions And Business Valuation Excel Books

Web resources:

MOOCs:

http://www.wiley.com/WileyCDA/Section/id-302475.html?query=Patrick+A.+Gaughan


Subject: Contemporary Issues in Finance




Theory

Examination

University

Practical

Examination

Continuous

Internal

Evaluation

(CIE)-

Theory

Continuous

Internal

Evaluation

(CIE)-

Practical

Total

3 0 0 3 30/60 - 20/40 - 100

Course Objectives:

The objective of this course to enhance the student’s understanding on various contemporary

issues related to financial area. The course will focus on generating awareness and understanding amongst the students related to market scenario and business challenges in various financial issues. It aims to keep the student well-informed regarding current issues and face the corporate world

Course Content:

UNIT-I

1. Behavioral Finance

2. Venture Capital

UNIT-II

1. Indian Commodities Derivatives Market 2. Financial Technical Analysis

UNIT-III

1. Introduction to Global International Market Analysis 2. Microfinance

UNIT-IV

1. Direct Tax Code 2. Asset & Liability Management in Banks/Funds Management in Banks

UNIT-V

1. Voluntary Corporate Governance 2. New norms in Accounting System(IFRS)


Course Outcome:

Text Books:

Compiled Material will be provided to students

Reference Books:

Web resources:

MOOCs:

semester iv core subjects finance semester 4.pdf · proposed syllabus for mba – ii, sem: iii...

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