Syllabus & Course Outcome - 2023-24 

COs

I SEMESTER

MANAGERIAL ECONOMICS

Course Outcomes

CO1

To impart knowledge about managerial economics, theory of profit and demand analysis and other basic concepts

CO2

To gain knowledge about break even point, difference between short run and long run production function and cost analysis, market structure, general equilibrium and

advertising budgeting

CO3

To acquire knowledge about pricing objectives, differential

pricing,MRTP act

UNIT-I: 

NATURE AND SCOPE OF MANAGERIAL ECONOMICS:

Meaning of Managerial Economics - Managerial Economics and Economic Theory - Managerial

Economics and Decision Sciences - Nature of managerial decision making - Types of business

decisions - Managerial decision making process - Firm-meaning-Objectives - Nature of profits

(economic vs. accounting profit) Optimization-functions-slope of functions-optimization

techniques- Concept of derivative - Simple rules of derivation - Application of derivatives to

optimization problems—Role of marginal analysis in decision making - Total, average and

marginal relationship (including problems).

UNIT-II:

 DEMAND ANALYSIS:

Demand Theory and Analysis – Individual demand and Market demand – Factors determining

demand – Relationship between AR and MR-Consumer Behaviour –utility analysis – indifference

curve analysis - Elasticity of demand – Price Elasticity - Income Elasticity – Cross Elasticity –

Elasticity and Decision making (including problems). Demand estimation and demand forecasting:

Meaning, significance and methods (Theory only).

UNIT-III:

 PRODUCTION ANALYSIS:

Meaning of Production function – Cobb Douglas Production Function – Production with one

variable input – Law of Diminishing marginal returns – Optimal employment to a factor of

production - Production with two variable inputs – Production iso-quant – Production iso-cost –

Optimal employment of two inputs – Expansion path – Returns to scale and economies of scope

(including problems).

UNIT-IV: 

COST ANALYSIS:

Concepts of cost – Short run cost functions - Finding minimum average variable cost through

equations – Long run cost function – Linear and nonlinear break even analysis.- Profit contribution

analysis (including problems).

UNIT - V: 

MARKET STRUCTURE:

       Perfect and Imperfect market condition – Perfect competition – Characteristics – Equilibrium price

– Profit maximization, (in short run and long run) – Shut down decision – Monopoly:

characteristics,– Profit Maximization in short run and long run, Allocative inefficiency, Income

Transfer and Rent seeking – price discrimination-Monopolistic competition: Characteristics –

Profit Maximization – Price and output determination in the short run and long run, Oligopoly:

Characterstics – Price Rigidity – price leadership - Kinked demand model (including problems).

SUGGESTED READINGS:

1. Petersen and Lewis : Managerial Economics, 4/e, Pearson/PHI, 2002.

2. Managerial Economics, Ahuja. H.L, S. Chand, New Delhi.

3. M.L. Trivedi: Managerial Economics, Tata Mc-Graw Hill, New Delhi 2004.

8

(Applicable to the batch of students admitted in the academic year 2019-20 and onwards)

M.Com. (CBCS) FACULTY OF COMMERCE, OU

PRINCIPLES OF MARKETING

Course Outcomes

CO1

Marketing concepts, help you understand the factors that influence marketing decisions.

CO2

Focus attention on the vital role of marketing in today's globel economy

CO3

The specific objectives for student learning under this broad goal are to understand how organizations identify customers and their wants/needs

UNIT-I: 

INTRODUCTION:

Meaning and Definition of Marketing - Scope of Marketing - Evolution of Marketing Concepts -Production

Concept - Product Concept - Marketing Myopia - Selling Concept - Marketing Concept Societal Marketing

Concept - Objectives of Marketing - Role of Marketing in Economic Development - Rural Marketing - Rural

Markets Vs Urban Markets - Marketing Management Tasks - Marketing Mix-Direct Marketing - Online

Marketing – Marketing Challenges and Opportunities. - Marketing of Services

UNIT-II: 

MARKETING ENVIRONMENT:

Micro Environment (Company-Suppliers-Marketing Intermediaries- Customers- Competitors-Publics) - Macro

Environment (Demographic-Economic-Natural- Technologica1-Political-Legal (Consumer Protection Act

1986) and Regulatory Cultural-Social) - International Marketing- GATT & WTO

UNIT-III:

 SEGMENTING, TARGETING & POSITIONING:

Concept of Target Market - Diffused Market - Concentrated Market - Clustered Market - Market Segmentation:

Bases-Benefits-Requirements for Effective Segmentation - Market Segmentation Analysis for Consumer and

Service - Product Positioning: Concepts – Bases

UNIT- IV: 

CONSUMER BEHAVIOUR:

Consumer Behaviour - Nature-Scope-Importance - Factors influencing Consumer Behaviour - Economic -

Psychologica1-Cultural-Social and Personal - Models of Consumer Behaviour - Marshallian-Maslow Freudian-

Howard-Sheth - Steps in consumer Decision Process - Post Purchase Behaviour - Cognitive Dissonance -

Organizational Buyer - Industrial Markets-Reseller Market-Government Market. Characteristics of

Organizational Buyer - Organizational Buying Process - Organizational Buyer Vs Consumer Behaviour –

Factors influencing organizational Consumer Behaviour

UNIT-V:

 MARKETING PLANNING AND STRATEGY:

Corporate Strategic Planning - Vision-Mission – Strategic Business Units – Planning new businesses - Business

Strategic Planning - SWOT Analysis - Goal Formulation-Strategy Formulation-Program Formulation –

Implementation - Feedback and Control - Marketing Process - Nature and Contents of a Marketing Plan –

Marketing Control - Annual Plan Control – Profitability Control – Efficiency Control – Strategic Control

SUGGESTED READINGS:

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

2. Marketing Management - Rajan Saxena - Tata McGraw Hill

3. Marketing Management: Planning, Implementation and Control: Global Perspective Indian Context – VS

Ramasamy & S. Namakumari - SAGE

4. Marketing Management: A South Asian Perspective – Philip Kotler and Kevin Lane Kotler, Pearson

Education

5. Basic Marketing - Perreault and McGarthy - Tata McGraw Hill

6. Case and Simulations in Marketing - Ramphal and Gupta - Golgatia, Delhi.

7. Case Studies in Marketing - R.Srinivasan - PHI.

8. Marketing concepts and cases – Michael J Etzel, Bruce J Walker, William J Stanton and Ajay Pandit, TMH

13th Edition, New Delhi

9. Marketing Management – S.Jayachandran - TMH

10. Rajan Saxena: Marketing Management

11. Stanton WJ: Fundamental of Marketing,

12. Assael: Consumer Behaviour,Thomson

9

(Applicable to the batch of students admitted in the academic year 2019-20 and onwards)

ORGANISATION THEORY AND BEHAVIOUR

Course Outcomes

CO1

Familiarize students with the concepts and dimensions of Organization Theory.

CO2

Students will gain awareness of the organisational behaviour for understanding organisational functioning particularly on the individual and group/team level.

CO3

students will learn about theories of Learning, Motivation and Leadership and understand their importance from the managerial perspective

CO4

students will understand the role of culture, communication, conflict and change in an organisational setup

UNIT 1:

 INTRODUCTION:

Organization: Definition – Organisation Theories: Classical Theory- Features – limitations. Neoclassical Theory –

features – limitations. Contemporary Organisation Theory – features- limitations - Systems Approach – Contingency

Approach.

Organisational Behaviour: (OB) – Features – Scope – Fundamentals - Concepts of OB – Challenges and opportunities

for OB – Contributing disciplines to the OB-Concept of Positive Organizational behavior.

Organizational Effectiveness: Approaches – Factors affecting Organizational Effectiveness

UNITII:

UNDERSTANDING INDIVIDUAL AND GROUP BEHAVIOUR:

Individual Behaviour : Factors Influencing Individual Behaviour -Personality Determinants – Big five

Personality factors – Learning Theories. The Perceptual Process – Factors influencing perception – Internal and

External; Attitudes and Behaviour- Attitude Formation and Attitude Change.

Group Behaviour :– Fundamentals of Groups – Stages of Development- Important Factors influencing Team

Effectiveness – Cohesiveness – Norms – Decision Making

UNIT III:

 MOTIVATION, MORALE AND CULTURE:

Motivation: Theories of Motivation – Motivational Processes - Content Theories ( Maslow, Herzberg,

McCleland) – Process Theories (Adam, Victor, Vroom and Lawler and Porter) – Learning and Reinforcement

Theory.

Morale: Factors influencing Morale

Organisational Culture: – Characteristics - Dimensions – Forming a Culture – Sustaining a Culture – Changing a Culture

UNIT IV. 

ORGANISATIONAL POWER , POLITICS, CONFLICT & STRESS MANAGEMENT

Power and Politics: Power Bases – Dependency – Individual Versus Organisational Power – Political process in

Organisation – Factors contributing – Techniques of Organisational Politics – Managing Political Behaviour

Conflict – Transition in Conflict Thought – Functional and Dysfunctional Conflict – Process of Conflict – Managing Conflict.

Concept of Stress - Potential Sources of Stress - Individual Differences - Cultural Differences - Consequences of Stress- Managing Stress

UNIT V

 LEADERSHIP, COMMUNICATION AND CHANGE:

Leadership : Leadership and Management – Leadership Styles - Theories of Leadership – Traits – Behavioral

Model (Managerial Grid) – Contingency ( Feilder, Path goal, Tri-dimensional – Inspirational approaches

Communication: Significance –Process- Formal and Informal Communication - Barriers to

communication- Improving Communication Skills – Introduction to Transactional Analytics – The

Human impact of computer Mediated Communication

Change – Challenges contributing to Change – Types of Change Approaches – Contemporary Issues in Change.

SUGGESTED READINGS:

1. Robins P.Stephen & Judge: Organizational Behavior, Pearson, New De1hi.2007

2. Greenberg and Baron: Behaviour in Organisation

3. Daft: Organisation Theory and Design, Thomson 2005

4. Fred Luthans: Organizational Behavior, Me Graw Hill, New Delhi.

5. Nahavandi: Organizational Behaviour, sage.

6. Nelson: Organisational Behaviour, 3e, Thomson 2006

7. Aswathappa: Organizational Behavior, Himalaya Publisher.

8. Jones G R :Organizational Theory, Pearson Education, New Delhi

9. Shashi Gupta & Rosy: Organisation Behaviour—Kalyani Publication

10. Hellriegel: Organisational Behaviour, 10e, Thomson 2006.

11. SharmaVVS: Organisational Behaviour,Jaico Publication

FINANCIAL MANAGEMENT

Course Outcomes

CO1

To understand the objectives and scope of Financial Management and the role

and important functions of a finance manager

CO2

To acquire the methods of calculating the cost of capital and to analyse the 

capital structure of a firm based on leverages

CO3

To comprehend the application of different investment appraisal techniques for taking investment decisions and awareness of divident decision theories

CO4

To know the importance of Working Capital Management and Short Term sources of finance

UNIT-I: 

INTRODUCTION TO FINANCIAL MANAGEMENT:

Financial Management: Meaning- Evolution – Organization of Finance Function – Financial Decisions – Goals

of Financial Management – Agency Problem – Changing Role of Finance Manager (Theory).

Time Value of Money: Meaning – Rationale of Time Preference for Money – Future Value – Present Value

(Including Problems)

UNIT-II:

 CAPITAL BUDGETING:

Capital Budgeting: Meaning – Importance – Process – Kinds of Decisions – Cash Flow Estimation –

Techniques of Capital Budgeting – Traditional Techniques: Payback Period – Accounting / Average Rate of

Return – Discounted Techniques – Discounted Payback Period – Net Present Value – Internal Rate of Return –

Profitability Index – NPV Vs. IRR – Capital Rationing (Including Problems)

Risk Analysis in Capital Budgeting Decisions: Sources and Perspectives of Risk – Traditional Tools – Payback

Period – Risk Adjusted Discount Rate – Certainty Equivalent Coefficient of Variation – and Decision Tree

Analysis (Including Problems)

UNIT-III: 

WORKING CAPITAL MANAGEMENT:

Working Capital: Meaning – Kinds – Determinants – Sources and Levels – Estimation of Working

Capital Requirements (Including Problems)

Cash Management: Nature of Cash – Motives of Holding Cash – Objectives of Cash Management – Factors

Determining Cash Need – Cash Cycle – Facets of Cash Management –Cash Forecasting and Budgeting –

Management of Cash Flows – Determination of Optimum Cash Balance (Including Problems)

Accounts Receivable Management: Meaning – Objectives – Cost Benefit Analysis – Credit Standards –

Credit Terms – Collection of Receivables (Including Problems)

Inventory Management: Meaning – Components of Inventory – Motives of Holding Inventory – Objectives of

Inventory Management – Tools and Techniques of Inventory Control (Including Problems)

UNIT–IV:

 FINANCING DECISIONS:

Cost of Capital: Meaning – Significance – Classification of Costs – Computation of Specific Cost of Capital –

Cost of Debt – Cost of Preference Share Capital – Cost of Equity Share Capital and Cost of Retained Earnings –

Computation of Weighted Average and Marginal Cost of Capital (Including Problems)

Leverages: Meaning – Types – EBIT-EPS Analysis – Degree of Operating Leverage – Degree of Financial Leverage

– Degree of Combined Leverage – Indifference Point (Including Problems)

Capital Structure Theories: Meaning – Determinants – Theories – Net Income Approach – Net Operating

Income Approach – Traditional Approach – MM Approach (Theory)

UNIT-V: 

DIVIDEND DECISIONS:

Dividend Policy: Meaning – Types of Dividend Policies – Factors Influencing Dividend Policy – Forms of

Dividends (Theory)

Dividend Theories: Relevance Theories – Walter‘s Model – Gordon‘s Model – Irrelevance Theory – MM

Hypothesis (Including Problems)

SUGGESTED READINGS:

1. Prasanna Chandra: Financial management, TMH., 2.Erhardt & Brigham: Corporate Finance: A Focused Approach,

Thomson., 3.Eugene Brigham & Erhardt: Fundamental of Financial Management, Thomson., 4.Khan M.Y. & Jain PK:

Financial management, TMH., 5.Kulkarni P.V.: Financial Management, Himalaya., 6.Lasher: Practical Financial

Management, Thomson.,7.Pandey I.M.: Financial Management, Vikas., 8.Rustagi, R.P. Financial Management, Sultan

Chand., 9.Shashi K. Gupta and R.K. Sharma: Financial Management, Kalyani Publishers., 10.Solemen Ezra & Pringle John

J:An Introduction to Financial Management, Prentice Hall., 11.Srivatsava R.M:Essential of Business Finances, Himalaya.,

12.Sudarsan Reddy G:Financial Management , Himalaya., 13.Van Horn, James C: Financial Management, Prentice Hall.

INDIAN ACCOUNTING STANDARDS

Course Outcomes

CO1

To familiarize and acquaint the student with accounting standards and various financial reporting practices.

CO2

Standardising the accouting policies and principles of an economy.

CO3

Ensure transparency, reliability, consistency, and comparability of the financial statements

UNIT-I:

 INTRODUCTION:

Accounting: Meaning – Evolution – Accounting as an information system – Accounting Principles - Accounting standard:

Concept -Evolution - Difficulties in standard setting process – IASB - FASB- ASB India: Constitution - Functions – Procedure

for setting standards - Need for Uniform Global Financial Reporting - Significant differences between IAS, US GAAP and

Indian GAAP (AS) - IFRS Concept – Convergence of Accounting Standards - Ind AS Concept – Applicability/Adoption of Ind

AS (Road Map). (Theory only)

UNIT-II: 

INDIAN ACCOUNTING STANDARDS (IND AS-1 to 21):

Overview of Indian Accounting Standards: (Ind AS-1 to Ind AS-21): Ind AS-1: Presentation of financial statements – Ind

AS-2: Inventories – Ind AS-7: Cash flow statements - Ind AS-8: Accounting policies, changes in accounting estimates and

errors – Ind AS-10: Events after the Balance Sheet Date – Ind AS-11: Construction contracts – Ind AS -12: Income taxes –

Ind AS-16: Property, Plant and Equipment – Ind AS-17: Leases – Ind AS-18: Revenue – Ind AS-19: Employee benefits – Ind

AS-20: Accounting for Govt. Grants and Disclosure of Govt. Assistance – Ind AS-21: The effects of changes in foreign

exchange rates. (Theory only)

UNIT-III:

 INDIAN ACCOUNTING STANDARDS (IND AS-23 to 41):

Overview of Indian Accounting Standards: (Ind AS-23 to Ind AS-41): Ind AS- 23: Borrowing costs – Ind AS-24: Related

party disclosure – Ind AS-27: Separate financial statements – Ind AS-28: Investments in associates and Joint ventures – Ind

AS-29: Financial Reporting in Hyper Inflationary economies – Ind AS-32: Financial instruments: Presentation – Ind AS-33:

Earnings Per Share – Ind AS-34: Interim financial reporting – Ind AS-36: Impairment of assets – Ind AS-37: Provisions,

contingent liabilities and contingent assets – Ind AS-38: Intangible assets – Ind AS-40: Investment property – Ind AS-41:

Agriculture. (Theory only)

UNIT-IV:

 INDIAN ACCOUNTING STANDARDS (IND AS-101 to 106) :

Overview of Indian Accounting Standards: (Ind AS 101 to Ind AS 106): Ind AS-101: First time adoption of Indian

Accounting Standards – Ind AS-102: Share based payments – Ind AS-103: Business Combinations – Ind AS -104: Insurance

contracts – Ind AS-105: Non-current assets held for sale and discontinued operations – Ind As-106: Exploration for and

evaluation of mineral resources. (Theory only)

UNIT-V:

 INDIAN ACCOUNTING STANDARDS (IND AS-107 to 115) :

Overview of Indian Accounting Standards: (Ind AS 107 to Ind AS 115): Ind AS-107: Financial instrument: disclosure –

Ind AS-108: Operating segments – Ind AS-109: Financial instruments – Ind AS-110: Consolidated financial statements – Ind

AS-111: Joint arrangement - Ind AS – 112: Disclosure of interest in other entities – Ind AS-113: Fair Value Measurement –

Ind AS-114: Regulatory Deferral Accounts – Ind AS-115: Revenue from Contracts with customers. (Theory only)

SUGGESTED READINGS:

1. Jawaharlal “Accounting Theory and Practice” Himalya Publishing Company, New Delhi.

2. Porwal L.S. “Accounting Theory” Tata McGraw-hill Publishing Company, New Delhi.

3. Rawat D.S. “Accounting Standards” Taxmann Allied Services Private Limited, New Delhi.

4. Rawat D.S. “Ind ASs Converged IFRS” Taxmann Allied Services Private Limited, New Delhi.

5. Kamal Garg “Ind AS & IFRS” KG Management Advisors LLP, New Delhi, 2017

6. Kamal Garg “IFRS Concepts and Applications” Bharat Law House Pvt. Limted, New Delhi.

7. Ghosh T.P. “IFRSs for Finance Executives”, Taxmann Allied Services Private Limited, New Delhi.

8.Gupta R.L & Radhaswamy “Advanced Accountancy” Sultan Chand & Sons, New Delhi.

III SEMESTER

RESEARCH METHODOLOGY AND STATISTICAL ANALYSIS

Course Outcomes

CO1

Students will understand the concepts of research, types of research, research design and research process

CO2

Familarise students with the concepts of Hypothesis and its testing procedures and also on sampling techniques.

CO3

Students will acquire knowledge about different methods of data collection and testing its validity and reliability and analysis of data using different statistical tools

CO4

To acquire knowledge on interpreting results and drafting a research report.

UNIT-I: 

INTRODUCTION:

Quantitative Techniques: Meaning, Need and Importance - Classification: Statistical Techniques - Operations Research techniques - Role of Quantitative Techniques in Business and Industry - Quantitative Techniques in Decision making - Limitations.

Research: Meaning, Purpose, Characteristics and Types - Process of Research: Formulation of objectives - Formulation of Hypotheses: Types of Hypotheses - Methods of testing Hypotheses - Research plan and its components - Methods of Research: Survey, Observation, Case study, experimental, historical and comparative methods - Difficulties in Business research.

UNIT-II:

 COLLECTION, PRESENTATION & ANALYSIS OF DATA:

Sources of Data: Primary and Secondary Sources - Methods of collecting Primary Data - Designing Questionnaires/Schedules in functional areas like Marketing, Finance, Industrial Economics, Organizational Behavioral and Entrepreneurship (Practically students should be able to design questionnaires for given problem/cases in these areas). Census vs. Sampling - Methods of Sampling Random and Non-Random Sampling methods - Measurement and scaling techniques.

Processing and Presentation of Data: Editing, coding, classification, and tabulation - Graphic and diagrammatic presentation (Theory only). Statistical analysis of Data: Types of analysis (Descriptive analysis and inferential analysis) – Tools: Measures of Central Tendency, Measures of Variation, Skewness, Time series, Index numbers, Correlation and Regression (theory only).

UNIT-III:

 INTERPRETATION AND REPORT WRITING:

Interpretation: Introduction - Essentials for Interpretation, Precautions in interpretation - Conclusions and generalization - Methods of generalization. Statistical fallacies: bias, inconsistency in definitions, inappropriate comparisons, faulty generalizations, drawing wrong inferences, misuse of statistical tools, failure to comprehend the data. (including small cases). Report Writing: Meaning and types of reports - Stages in preparation of Report - Characteristics of a good report - Structure of the report'-Documentation: Footnotes and Bibliography - Checklist for the report.

UNIT-IV:

 PROBABILITY AND PROBABILITY DISTRIBUTIONS:

Probability: Meaning - Fundamental Concepts - Approaches to measurement of Probability -Classical, Relative frequency, subjective and axiomatic approaches - Addition theorem - Multiplication theorems- Bayesian theorem and its simple applications - Mathematical expectation (including problems).

Probability Distributions: Meaning and importance of theoretical frequency distributions Binomial, Poisson and Normal distributions - Properties and uses - fitting Binomial, Poisson and Normal, Distributions (areas method only) (including problems).

UNIT-V:

 ASSOCIATION OF ATTRIBUTES & CHI SQUARE TEST:

Association of Attributes: Meaning - Distinction between correlation and association Methods of studying Association - interpretation of results. Chi Square Test: Definition - Conditions for applying Chi square test, Yates's correction - Uses and limitations of Chi square test - Chi square test for testing the independence of Attributes - Chi square test for goodness of fit (including problems).

SUGGESTED READINGS:

1.Krishna Swamy:Methodology of Research in Social Sciences.,2.Kothari:Research Methodology., 3.Zikmund:Business Research Methods.,4. SC.Gupta:Fundamentals of Statistics., 5. SP.Gupta:Statistical Methods., 6. Levin et al:Statistics for Management., 7. Keller:Statistics for Management & Economics., 8. Sanchetty & Kapoor: Business Statistics., 9. Achalapathi KV:Reading in Research Methodology in Commerce & Business Management.,10. Anderson:Statistics for Business and Economics.

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

E- COMMERCE

Course Outcomes

CO1

Students will understand Information Technology and its applications in commerce.

CO2

To get acquainted with Tally Accounting software

CO3

To give an overview of E-Commerce fundamentals with an objective of exposing them to the functional areas of E-Commerce

CO4

To expose them to practical dimensions of E- commerce

UNIT-I: 

INTRODUCTION:

E-Commerce - E-Business - Potential Benefits of E-commerce – Driving Forces of E-Commerce – Business Process Re-Engineering –E-Commerce Applications –Regulatory Environment for E-Commerce – Competitive intelligence on the Internet – Future of E-Commerce.

UNIT-II:

ELECTRONIC DATA INTERCHANGE (EDI), E-COMMERCE & INTERNET:

Introduction - Traditional EDI systems - Benefits and Drawbacks - Data transfer and standards. Financial EDI-EDI systems and the Internet - Legal security and private concerns - Authentication Methods – Firewalls – Factors considered in securing the firewalls - Internet trading relationships: Business to Consumers (B2C), Business (B2B), Consumer to Business (C2B), Government to Consumer (G2C), Features and benefits-Portal Vs Website - Supply Chain Management.

UNIT-III:

 ELECTRONIC PAYMENT MECHANISMS AND WEB PAGE DESIGNING:

Introduction - SET protocol - SET Vs SSL - Payment gateway - Certificate issuance - Trust chain - Cryptography methods - Encryption technology – Digital signatures - Dual signatures - SET Logo Compliance testing - Status of Software Magnetic strip cards - Smart cards - Electronic cheques -Electronic cash - Third party processors and Credit Cards - Risk and electronic system - Designing electronic payment systems.

Introduction to HTML – Basic syntax – Basic Text Formatting – Images – Lists – Tables – Hypertext links.

UNIT- IV: 

COMPUTERIZED ACCOUNTING:

Computerized Accounting: Meaning, Features, Advantages and disadvantages – Computerized vs Manual Accounting – Creation of Company – Grouping of accounts – Creation of Accounts: Cash Book, Bank Book, Sales Register, Purchase Register, Journal Register, Debit Note Register, Credit Note Register, Opening and Closing Stock – Creation of Inventory – Creation of Stock Groups, Stock Categories, Godowns, Stock Items and Units of Measure – Detailed Stock Valuation.

Entering Transactions: Voucher Entry – Sales Vouchers – Purchase Vouchers – Receipt Vouchers – Payment Vouches – Contra Vouchers – Journal Vouchers – Debit Note Vouchers – Credit Note Vouchers – Editing and Deleting Vouchers – Voucher Numbering – Customization of Vouchers – Discount Allowed – Discount Received – Petty Cash Book – Depreciation – Automatic Interest Calculation – Interest Receivable – Interest Payable.

UNIT-V:

 COMPUTERISED STATEMENTS:

Day Books – Financial Statements: Trial Balance, Trading & Profit and Loss Account, Balance Sheet –Ratio Analysis - Cash Flow statement – Funds Flow Statement - Inventory Report of a Sole Trader and a Company – Outstandings: Receivables and Payables – Editing and Deleting Ledgers and Groups – Budget Control – Creating, Editing and Deleting Budgets – VAT Assessment.

SUGGESTED READINGS:

1. Implementing Tally: Nadhani & Nadhani, BPB

2. Business Data processing System: P. Mohan, Himalaya

3. Business Data Processing And Accounting System: V. Srinivas, Kalyani

4. Manuals Supplied along with respective packages.

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

COST ACCOUNTING AND CONTROL

Course Outcomes

CO1

To impart conceptual knowledge of cost accounting and to equip students with skills of ascertainment and control of costs.

CO2

To learn the concept of product cost determination, preparation of job and process costing and activity based costing and management

CO3

To understand the concept of marginal costing technique, BEP analysis , profit planning concept and make or buy decisions

CO4

To learn the concept of cost control, reduction and budgetary control and concept of standard costing and variance analysis

UNIT-I: 

INTRODUCTION:

Cost Accounting: Nature and Scope, Need, Objectives – Cost Concepts – Installation of Costing System – Cost Accounting its relationship with Financial Accounting and Management Accounting Cost Accounting Standards - Cost Classification – Cost Sheet - Books of Accounts – Integral and Non Integral Accounting - Reconciliation of Cost and Financial Accounts (Including Problems).

UNIT-II:

 PROCESS COSTING:

Process Costing: Meaning, Features, Applicability, Pros and Cons – Unit Costing Vs. Process Costing – Job Costing Vs. Process Costing – Normal Loss and Abnormal Loss - Process Accounts with Stocks – Inter-Process Profit – Equivalent Production – First In-First out Method (FIFO) and Average Method – Joint Products and By-products (Including problems).

UNIT-III:

 MARGINAL, ABSORPTION AND DIFFERENTIAL COSTING:

Marginal Cost: Meaning, Features - Absorption Cost: Meaning, Pros and cons – Marginal Costing Vs Absorption Costing - Preparation of Income Statement under Marginal Costing and Absorption Costing -

Differential Costing: Meaning of Differential Cost, Marginal Cost Vs. Differential Cost, Characteristics of Differential Costing, Managerial Applications of Differential Cost Analysis (including problems).

UNIT- IV:

 BUDGETARY CONTROL:

Budget: Meaning, Essentials – Budgeting - Budgetary Control: Essentials, Advantages, Limitations – Classification of Budgets: Functional Budget: Sales Budget, Production Budget, Direct Material Budget, Direct Labor Budget, Manufacturing Overheads Budget - Capital Expenditure Budget - Cash Budget – Master Budget – Flexible Budget – Performance Budget – Traditional System of Budgeting – Zero Based Budgeting (Including Problems).

UNIT-V:

 STANDARD COSTING:

Standards: Meaning, Types, Establishment - Standard Costing: Need, Pre-requisites, Pros and Cons - Standard Costing and Budgetary Control – Variance Analysis - Revision of Standards - Control and Efficiency Ratios (Including Problems).

SUGGESTED READINGS:

1.Jain S.P & Narang K.L., ―Advanced Cost Accounting‖ Kalyani Publishers, New Delhi; 2.Iyengar S.P., ―Cost Accounting – principles & Practice‖ Sultan Chand & Sons; 3.Prashanta Athma, ―Cost and Management Accounting‖ Himalya; 4.Khan M.Y & Jain P.K., ―Theory and Problems in Cost Accounting‖ TMH; 5.Ravi M. Kishore, ―Cost Management‖, Taxmann; 6.Lall nigam & Jain, ―Cost Accounting – Principles and Practice‖ Prentice-hall; 7.Manish Dutta, ― Cost Accounting – Principles & Practice‖, Pearson; 8.Saxena VK & Vashist CD, ―Advanced Cost & Management Accounting‖ Sultan Chand & Sons; 9.Colin Drury, ―Management & Cost Accounting‖ Thomson Asia Pvt. Ltd, 10.Asish K. Bhattacharyya ― Principles and Practice of Cost Accounting‖. Prentice Hall, 11.Arora M.N. ―Cost Accounting –Principles & Practice‖ Vikas Publishing House. 12. Ravi M. Kishore ―Cost & Management Accounting‖ Taxman‘s Publications Pvt. Ltd., New Delhi.

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

INTERNATIONAL FINANCIAL MANAGEMENT

Course Outcomes

CO1

To have acquired knowledge on Global Financial Strategy, International Financing Decisions, Euro-Currency Loans, International Equity Investment

CO2

To acquire knowledge on Blocked funds and Capital Structure Decisions across countries.

CO3

To understand the concept of Multinational Working Capital Management and Inventory Management

CO4

To understand the concepts of CAPM, IAPM and Decision Tree Analysis

UNIT-I:

 INTRODUCTION:

An Overview of International Financial Management: Meaning – Features of International Finance – Scope of International Finance – International Financial Management and Domestic Financial Management – Factors influencing Growth of International Finance – International Monetary System (Theory only).

Balance of payments Accounting: BoP Accounting Principles – Debit and Credit Entries – Balance of Payments Statement (Including Problems).

UNIT-II:

 FOREIGN EXCHANGE MARKETS & EXCHANGE RATE MECHANISM:

Foreign Exchange Market: Features – Major Participants – Spot Market: Features, arbitrage, speculation – Forward Market: Features, arbitrage, hedging. Speculation, Swapping (Including Problems).

Exchange Rate Mechanism: Exchange Rate Quotations – Nominal, Real & Effective Exchange Rates – Exchange Rate Determination in Spot Market – Exchange Rate Determination in forward Market (Including Problems).

UNIT-III:

 FOREIGN EXCHANGE EXPOSURE:

Measurement of Foreign Exchange Exposure: Meaning & Relevance of Foreign Exchange Exposure – Classification of Foreign Exchange Exposure: Transaction Exposure, Operating Exposure & Accounting Exposure (Including Problems).

Management of Foreign Exchange Exposure: Need – Hedging of Transaction Exposure – Hedging of Real Operating Exposure – Management of Accounting Exposure (Including Problems).

UNIT-IV

:INTERNATIONAL FINANCIAL MARKETS & INSTRUMENTS:

International Financial Markets: Features – Factors for Growth – Interest Rates – Channels of International Funds Flow.

International Financial Instruments: Euro Credits: Revolving Credit, Term Credit – Euro Bonds: Straight Bonds, Convertible Bonds, Currency Optional Bonds, FRNs – Euro Currency Deposits: Call Deposits, Term Deposits, Certificates of Deposits – Euro Notes: Commercial paper, NIF, Medium Term notes – Euro Issues: FCCB, GDR, ADR (Theory only).

UNIT-V:

 FINANCING OF FOREIGN TRADE:

Foreign Trade Documents: Letters of Credit – Bill of Exchange Marine Insurance Policy – Invoices Certificates – Bill of Lading.

Foreign Trade Financing: Methods of Financing: Bank Credit (Pre-Shipment Credit, Post-Shipment Credit, Medium Term Credit, Credit under Duty Draw Back Scheme), Factoring, Counter Trade – Modes of Payment (Theory Only).

SUGGESTED READINGS:

1. Avadhani: International Finance, Himalaya; 2.Bharati V Pathak: Indian Financial Management , Pearson; 3.Clark: International Finance, 2e Thomson 2006; 4.Jeevenandam: Foreign Trade Finance and Risk Management, Sultan Chand; 5.Joseph Anbarasu: global Financial Management, Ane Books Pvt.Ltd; 6.Kevin s: Fundamentals of International Financial Management, PHI; 7.Madhu Vij: Internationa Finacial Management, 3e Excel Books; 8.Madura: International Corporate Finance, 8e Thomson 2007; 9.Shapiro: Multinational Financial Management PHI; 10.Sharan: International Financial Management, PHI.

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

SECURITIES ANALYSIS AND PORTFOLIO MANAGEMENT

Course Outcomes

CO1

To familiarize students with analysis of securities markets and valuation of different securities for the purpose of building an optimal portfolio

CO2

To understand the functioning of securities markets alongside the theories and concepts involved in portfolio management.

CO3

To familiarize students with various tools and techniques to facilitate in managing portfolios.

CO4

To acquaint students with investment decisions related to financial assets and the risks and returns involved

UNIT-I: 

SECURITY ANALYSIS:

Fundamental Analysis: Meaning – Economy Analysis – Economic Forecasting – Forecasting Techniques – Industry Analysis – Concept of Industry – Industry Life Cycle – Industry Characteristics – Company Analysis – Financial Statements – Analysis of Financial Statements (Theory Only).

Technical Analysis: Meaning – Dow Theory – Basic Principles of Technical Analysis – Trends and Trend Reversal – Eliot Wave Theory – Mathematical Indicators – Market Indicators (Theory).

Efficient Market Theory: Random Walk Theory – The Efficient Market Hypothesis – Forms of Market Efficiency – Tests of Efficient Market Hypothesis (Theory).

UNIT -II: 

VALUATION SECURITIES:

Share Valuation: Concept of Present Value – Share Valuation Model – One Year Holding Period – Multiple Year Holding Period – Constant Growth Model – Multiple Growth Model – Multiplier Approach to Share Valuation (Including problems).

Bond Valuation: Bond Returns – Coupon Rate – Current Yield – Spot Interest Rate – Yield to Maturity – Yield to Call – Bond Prices – Bond Risks – Bond Duration (Including Problems).

UNIT -III:

 CAPITAL MARKET THEORY:

Capital Market Theory: Assumptions- Capital Asset Pricing Model – Efficient Frontier with Riskless Lending and Borrowing – Capital Market Line – Security Market Line – SML Vs. CML – Pricing of Securities with CAPM – Limitation of CAPM (Including problems).

Arbitrage Pricing Theory: The Law of One Price – Assumptions – Arbitrage Pricing for one Risk Factor – Two Factor Arbitrage Pricing – Multiple Arbitrage Pricing – Limitations of APT (Including Problems).

UNIT-IV:

 PORTFOLIO PERFORMANCE EVALUATION:

Portfolio Performance Evaluation: Need for Evaluation – Evaluation Perspective – Meaning of Portfolio Evaluation – Measuring Portfolio Return – Risk Adjusted Returns – Sharpe Ratio – Treynor Ratio – Differential Return (Including Problems).

Security Market Indexes: Meaning – Different Averages and Indexes Exist – The Construction of Indexes – Maintenance Problems with Security Market Indexes – Stock Market Index Revision (Including Problems).

UNIT-V:

 PORTFOLIO REVISION:

Portfolio Revision: Need for Revision – Meaning of Portfolio Revision – Constraints in Portfolio Revision – Portfolio Revision Strategies – Formula Plan – Constant Rupee Value Plan – Constant Ratio Plan – Dollar Cost Averaging (theory).

International Investing: Benefits and Risk of Global Investing – Factors Influencing International Investing – Foreign Exchange Risk (Theory).

SUGGESTED READINGS: 1.Avadhani,V.A: International finance, Himalaya., 2.Avadhani,V.A: Investment & Security Management in India, Himalaya., 3.Bhall,V.K.: Investment Management, S. Chand & Co., 4.Fisher Donald E & Ronald J Jordan: Securities Analysis & Portfolio Management, PHI; 5.Francaia Jack Clark & Richard W Taylor: Theory & Problems of Investment, Mcgraw; 6.Gangadhar V: Investment Management, Anmole., 7.Kevin S: Security Analysis and Portfolio Management, Prentice Hall., 8.Mayo: Investments, Thomson., 9.Punithavathi Pundyan: Securities Analysis & Portfolio Management, Vikas., 10.Reilly: Investment Analysis and Portfolio Management, Thomson., 11.Strong: Practical Investment Management, Thomson.,12.Sharp Etal.: Investments, Prentice Hall; 13.Sulochana M: Investment Management, Kalyani.

IV SEMESTER

QUANTITATIVE TECHNIQUES FOR BUSINESS DECISIONS

Course Outcomes

CO1

To acquire knowledge on theory of probability and decision tree analysis

CO2

To understand the concept of Sampling and estimation of parameters by using the sampling methods

CO3

To acquire knowledge on Testing of hypothesis and its applications in practical situations

CO4

To understand Univariate and Multivariate statistical analysis and the concepts of LPP,TP and Ap

UNIT-I:

 STATISTICAL ESTIMATION AND HYPOTHESIS TESTING:

Concepts: Population, sample and sampling distribution - Parameters and statistics - Central limit theorem - Concept of Standard Error - Confidential limits - Estimation of population parameters - Properties of a good estimator - Point and interval estimation - Hypothesis Formulation and testing procedure - Type I and Type II errors - One tail and two tail tests (theory only).

Sampling of Attributes: Estimation and testing of Number and Proportions of Successes - Difference between two proportions (including problems).

UNIT-II:

 SAMPLING OF VARIABLES:

Large Samples: Difference between large and small samples - Estimating population mean – Testing: Significance of Mean - Significance of the difference between means of two samples - Significance of the difference between the standard deviations of two samples (including problems).

Small Samples: 't' test - Fixing fiducial limits to population mean – Testing: Significance of the mean - Significance of the difference between two independent means - Significance of the difference between two dependent means (including problems).

UNIT-III:

 ANALYSIS OF VARIANCE AND STATISTICAL QUALITY CONTROL:

F- test: Meaning and Applications – ANOVA: Assumptions - Procedure - One way and two-way analysis of variance (including problems).; Statistical Quality Control: Introduction - Chance and Assignable Causes of Variation Uses of SQC - Process Control and Product Control- Control Charts for Variables: X - chart - Range chart - Standard deviation chart - Control charts for attributes: C chart - p chart - np chart.

UNIT-IV: 

STATISTICAL DECISION THEORY AND GAMES THEORY:

Statistical Decision Theory: Nature of Decision - State of Nature – Pay off Tables - Expected Pay off -Expected Opportunity Loss – Value of Perfect Information – Types of Decision Situation – Choice of Decision Criteria – Decision Tree Analysis – Decision Making under Uncertainties (including simple problems).; Games Theory: Characteristics of Game Theory – Two Persons Zero Sum Game - Maximum and Minimax Strategies – Saddle Point – Dominating Strategy – Mixed Strategy - Limitations of Games Theory (including simple problems with Analytical Formulae and Graphical Methods).

UNIT-V:

LINEAR PROGRAMMING (LP):

 Linear Programming: Meaning - Requirements for application - Assumptions - Advantages - Application of LP - Formulation of LP problems (including simple problems). Graphical Solutions of LP problems with two variables only (including simple problems).

SUGGESTED READINGS:

1.Levin&Rubin: Quantitative Approaches in Management, Pearson

2.SC.Gupta: Fundamentals of Statistics, Himalaya

3.Anderson: Quantitative Methods for Business Decision, 8e Thomson

4.Barry Render et al: Quantitative Analysis for Management, PHI

5.Anderson: Introduction to Management Science: Quantitative Techniques for Decision Making, Thomson

6.G.Gopikuttan: Quantitative Methods and Operational Research, Himalaya

7.D.C.Sancheti & VK.Kapoor: Statistics, Sultan Chand & Sons

8.Anand Sharma: Quantitative Techniques for Decision Making Himalaya

9.Mendenhall: Introduction to Probability & Statistics, Thomson

10.Shenoy GV: Quantitative Techniques for Managerial Decisions, New Age

11.Gupta and Khanna: Quantitative Techniques for Decision Making, PHI.

BUSINESS AND CORPORATE TAXATION

Course Outcomes

CO1

To understand the different elements of corprate tax and application of Income tax

CO2

To acquire knowledge on Computer Application in Income tax and tax planning

CO3

To acquaint the students with the Theoretical and Practical aspects of Assessing Partnership Firms, Companies, Co-operatives and Trusts

UNIT-I: 

ASSESSMENT OF PARTNERSHIP FIRMS:

Meaning of Partnership Firm - Conditions for Assessment as a firm U/S 184 and 185 - Treatment of interest and remuneration paid to partners U/S 40(b) - Computation of Total Income - Assessment of Partners of Firm - Change in constitution of Firm Succession of one firm by another firm - Assessment of dissolved or discontinued firm (Theory and Problems).

UNIT-II:

 ASSESSMENT OF PARTNERSHIP FIRMS ASSESSED AS AOP:

Partnership Firm Assessed as Association of Persons (AFAOP) - Computation of Total Income - Allocation of PFAOP's - Total Income - Treatment of share of income received by partners of PFAOP (Theory and Problems).

UNIT-Ill:

 ASSESSMENT OF COMPANIES-l:

Meaning of Company - Types of Companies - Computation Procedure - Taxable income - Deductions - Tax Liability - MAT - Carry Forward and set off of losses - Tax on Distributed Profits - Tax on income distributed to Unit holders - Tax on income receipt from venture capital companies and funds (Theory only).

UNIT-IV:

 ASSESSMENT OF COMPANIES – II & OTHER TAXES:

Companies: Computation of total income of companies - Determination of Tax Liability (Problems).

Other Taxes: Security Transaction Tax - Tonnage Tax (Theory and Problems).

UNIT-V:

 ASSESSMENT OF CO-OPERATIVES AND TRUSTS:

Cooperative Societies: Meaning - Deduction u/s 80(p) - Other deductions - Computation of Tax (Theory and problems). Trusts: Definition – Creation – Registration - Types of Trusts - Tax Exemptions - Accumulation of income - Income not exempted - Assessment of Trust (Theory and problems).

SUGGESTED READINGS:

1. Vinod K. Singhania: Taxman's Direct Tax Laws.

2. Bhagawati Prasad: Direct Tax Laws and Practice

3. B.B. Lal and N. Vashisht: Direct Taxes, Income Tax, Wealth Tax and Tax.

4. V.P. Gaur and D.B. Narang Income Tax Law and Practice- Kalyani Publications 5. Manmohan: Direct Taxes withTax Planning aspects

5. Girish Ahuja and Dr. Ravi Gupta: Direct Tax Law and Practice and Tax Planning.

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

STRATEGIC MANAGEMENT

Course Outcomes

CO1

Students will be able to understand the concept of strategic management 

CO2

To study the internal environment and external environment with regard to a corporate entity.

CO3

Togain knowledge on different types of strategies and their usefulness in business environment

CO4

Students will know the issues in implementation and evaluation of various corporate strategies

UNIT I:

 OVERVIEW OF STRATEGIC MANAGEMENT:

Strategy – Concept –Mintzberg Models of strategy- Levels of Strategy -Strategic Management: Process-Benefits –Guidelines for effective Strategic Management. Strategy, Ethics and Social Responsibility – Need for good corporate Governance – Corporate Citizenship

UNIT II:

 ENVIRONMENTAL ANALYSIS:

Internal Analysis: Competitive Advantage – Competencies -SWOT Analysis –Resources, Capabilities and Core Competence- Resource Base View of a firm – Key Success Factors – Value Chain Analysis Bench Marking.

External Analysis: Components of External Analysis – Segments of General Environment -Industry‘s dominant factors- Porter‘s Five Forces Model –PEST Analysis – Industry Driving forces –Strategic group mapping .

UNIT III: 

CRAFTING STRATEGY:

Vision and Mission – Significance- Characteristics- Objectives – Types – Setting of Objectives -Factors affecting Strategy – Generic Strategies ( Overall Low Cost Provider, focused low cost, Broad Differentiation, focused differentiation, Best-Cost Provider) Other Strategy Choices –Strategic Alliances – Mergers and Acquisitions – Vertical Integration – Outsourcing –Offensive Strategies – first mover advantages and disadvantages-diversification –modernization – turnaround.

UNIT 4:

 EXECUTING STRATEGY (IMPLEMENTATION OF STRATEGY):

Nature – Organizational Issues (Annual Objectives, Policies, Resource Allocation. Structure, Restructuring, Reengineering, e-reengineering, performance pay, change, conflict, culture, hr issues leadership). Marketing, Finance and Accounting Issues: Segmentation, Targeting, Positioning, Marketing Mix. Finance and Accounting: financing, investment ,dividend, budgets. Performance Evaluating (ROI, EVA, and MVA)- Balanced Score Card

UNIT5:

 EVALUATION OF STRATEGY:

Strategic Evaluation – Significance – Criteria – Barriers and overcoming barriers. Strategic Control and Operation Control-Types of Strategic Controls –Process of operation Control- Evaluation techniques for strategic and operational control

REFERENCE:

1. Thompson and Strickland :Crafting and Executing Strategy, Tata Mcgraw Hill

2. Fred r. David: Strategic Management, PHI

3. Hitt, Ireland and Hoskisson: Strategic Management, Southwestern

4. Vipin Gupta and Others: Business Policy and Strategic Management, PHI

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

FINANCIAL SERVICES

Course Outcomes

CO1

To introduce the basics of Indian Financial System

CO2

To understand the functioning of Money Market and Capital Market

CO3

.To provide the basic objectives of Regulating Agencies like SEBI

CO4

The objective of this course is to prepare the students to acquire required knowledge and skills for practical banking operations

UNIT-I: 

INTRODUCTION:

Meaning - Classifications - Traditional Activities - Financial sector reforms and Financial innovations in India - Banking and Non-Banking services - Financial products and services: Merchant Banking, Loan Syndication, Leasing, Mutual Funds factoring, Forfeiting, Venture capital, Custodial Services, Corporate, Advisory services, Depository Services, Securitization, Under-writing services (Banks and Insurance), Banking services: Bank Assurance Services, Credit Rating, Credit Cards, Derivatives, Mergers, Acquisitions and Amalgamation, Services in Forex Market, Letter of Credit - Innovative Finance Instruments - Micro Credit Finance - Importance and different products/schemes - Challenges facing the financial services sector.

UNIT-II: 

LEASE, HIRE PURCHASE AND HOUSING FINANCE:

Leasing: Financial lease and Operating lease - Lease Vs. Hire purchase - Types of financial leasing - Advantages of leasing - Consideration under lease Vs. Buy decision - Leasing in India - Problems of Leasing companies - RBI guidelines on leasing and finance companies. Hire Purchase: Terms of the agreement under hire purchase - Types of hire purchase - Advantages. Housing Finance: Housing Finance policy and Role of National Housing Bank (NHB) - Housing and Urban Development corporation (HUDCO) - Role of Housing Finance Corporations and the housing schemes - Recent Developments.

UNIT-Ill: 

MUTUAL FUNDS:

Mutual fund - Fund unit Vs. Equity share - Importance of Mutual funds - Types of Mutual funds: Close ended funds - Open ended funds, Income funds, Growth funds - Risks involved - Organisation of firm - Facilities available to investors - Guidelines from the Government of India - Recent reforms in mutual funds - Banks providing Mutual Fund services - Factors to be considered in selection of fund - Reasons for commercial banks to offer mutual funds - Scenario of Mutual funds in India - Problems in future prospects.

UNIT-IV:

 DISCOUNTING, FACTORING AND FORFAITING:

Meaning of Discounting – Factoring: Meaning, Modus Operandi of factoring scheme, Terms and conditions in factoring agreement - Function of factoring services - Types of factoring - Role of Banks in providing discounting, factoring and forfeiting services, Cost of factoring and pricing of factoring services, Benefit to the clients, Export factoring – Forfeiting: Factoring Vs. Forfeiting - Advantages and limitations of forfeiting - Forfeiting in India.

UNIT-V: 

SECURITISAION OF DEBT:

Meaning and Concept of Securitization - Structured securities Vs. Conventional Securities - Securitization Vs. Factoring - Operational mechanism of securitization - Types of securitized assets - Securitization and Role of Banks - Advantages and limitation of securitization - Future prospects of securitization.

SUGGESTED READINGS:

1. Gordon: Financial Markets and Services, 2e Himalaya

2. Gurusamy: Financial Services & Markets, Thomson

3. Gurusamy: Financial Systems and Services, Thomson

4. Avadhani: Marketing of Financial Services, Himalaya

5. Madura: Financial Institution & Markets, Thomson

6. Pathak: Financial Markets and Services, Pearson

7. Akbar Ali Khan & Sudershan: International Trade & Finance, Himalaya

(Applicable to the batch of students admitted in the academic year 2016-17 and onwards)

FINANCIAL DERIVATIVES

Course Outcomes

CO1

To make students efficient in the area of derivatives, giving them the knowledge of basics in Derivatives like Future Markets, Options and Swaps etc

CO2

To understand the functioning of Money Market and Capital Market

CO3

Students will understand the process of investing in different derivatives and their valuation 

CO4

Analyse and price diverse derivatives products to generate an optimal risk management strategy.

UNIT-I: 

INTRODUCTION TO FINANCIAL DERIVATIVES:

Definition – Features - Types - Uses - Critiques - History of Derivatives Markets - Financial Derivatives Indian Scenario - Evolution of Derivatives in India; Benefits of Derivatives - Equity Derivatives - Derivatives Trading at NSE and BSE - Emerging Structure of Derivatives Markets in India (Theory only).

UNIT- II: 

FUTURE AND FORWARD CONTRACTS AND MECHANISM:

Introduction to Forward and Future contracts - Distinction between Futures and Forwards contracts - Future Terminology and Types of Financial future contracts - Future payoffs - Operation of Traders in Futures market - Growth of Future market in India - Future market trading Mechanism - Forward market trading Mechanism - Forward Prices Vs. Future Prices - Determination of Future prices of specific assets - Futures on commodities - Theory of future prices - Recommendations of L.C Gupta Committee (Theory only).

UNIT- III:

 PRICING OF OPTION:

Concept of Option - Futures Vs. Options - Determinants of option prices - Black Scholes Option pricing - Binomial Pricing model (Including Problems).

UNIT- IV:

 SWAP MARKET:

Concept and Nature - Evolution of Swap Market - Features of Swap - Types of Financial Swaps: Currency Swap, Interest Rate Swap, Equity Index Swap, Commodity Swap - Credit Risk in Swap and Credit Swap - Using Swap to Manage Risk - Pricing and Valuing Swap (Including Problems).

UNIT- V:

 STOCK INDEX FUTURES:

Concept of Stock Index – Stock Index Futures - Stock Index Futures as a Portfolio Management Tool – Speculation and Stock Index Futures - Stock Index - Futures Trading in Indian Stock Market (Including Problems).

SUGGESTED READINGS:

1. Jayanth Rama Varma: Derivatives and Risk Management, TMH,

2. Mishra Financial Derivatives, Excel,

3. S.L. Gupta: Financial Derivatives: Theory, Concepts and Problems, Prentice Hall,

4. S.S.Kumar, Financial Derivatives, PHI,

5. David A. Dubofsky, Thoamas W Multer, TR: Derivatives Valuation and Risk Management, Oxford,

6. Don M. Chance, Robert Brooks: Derivatives and Risk Management Basics, Cengage,