MFC OU Syllabi

MASTER OF FINANCE AND CONTROL
(SEMESTER SYSTEM)
(Applicable to University College of Commerce, Osmania University,
w.e.f. the batch of students
Admitted during 2007-2008 onwards)
SYLLABUS
..
FACULTY OF COMMERCE
OSMANIA UNIVERSITY
HYDERABAD- 500 007 A.P
April 2007
1
DEPARTMENT OF COMMERCE, OSMANIA UNIVERSITY, HYDERABAD.
REVISED COURSE STRUCTURE OF M.COM SEMESTER COURSE
w.e.f 2007 - 2008 academic year onwards
Code Name of the Subject PPW Exam Max Marks

duration Sem. Marks IA
FIRST SEMESTER
101 Cost and Management Accounting 5 3 hours

80 20
102 Management and Organisational Behaviour 5 3 hours
80 20
103 Marketing Management 5 3 hours
80 20
104 Financial Management 5 3 hours
80 20
105 Business Environment and Policy 5 3 hours
80 20
106@ Business Organisation and Management 5 3 hours
80 20
(106 – Interdisciplinary paper)
SECOND SEMESTER
201 Management Control & Information System 5 3 hours
56 14 30P
202 Security Analysis and Asset Management 5 3 hours
80 20
203 Financial Institution and Markets 5 3 hours
80 20
204 IT and E-Commerce (3T+2P) 5 3 hours
56 14 30P
205 Financial Services 5 3 hours
80 20
206@ Business Accounting 5 3 hours
80 20
THIRD SEMESTER
301 Quantitative Techniques for Business Decisions 5 3 hours
80 20
302 Project Management 5 3 hours
80 20
303 Marketing of Financial Services 5 3 hours
80 20
304 Elective Paper – 304 BAN/304 INS 5 3 hours
80 20
80 20
306@ Consumer Protection 5 3 hours
80 20
FOURTH SEMESTER
2
401 Tax Planning and Audit Control 5 3 hours
80 20
402 International Finance 5 3 hours
80 20
80 20
80 20
405 PROJECT WORK* 5 PR + VIVA 100**
406 Taxation 5 3 hours
80 20
* Seminars are meant for the students’ micro presentations and guest lectures by the external
faculty/industry expert.
**75 Marks for Project report and 25 Marks for Viva Voce examination by the external examiner
from within the university.
**Refer Project work guidelines for details
Note:
1. For each paper there will be semester examination for 80 marks and 20 marks for
Internal assessment (10 marks for Micro presentations, 10 marks for tests (better of
the two tests) in the subject.
2. Teachers are advised to handle/analyze at least 3 or 4 cases in the subject in the
classroom on any topics outlined wherever feasible.
3. Interdisciplinary paper offered in each semester is for the students of courses other
than commerce i.e; MFC.
@ Semestet-wise interdisciplinary courses for students other than commerce department:
106 Business Organisation and Management

206 Business Accounting
306 Consumer Protection
406 Taxation
3
SPECIALIZATION – ELECTIVES:
Code Name of the Subject PPW Exam Max Marks
duration Sem. Marks IA
ELECTIVE – I
BANKING
304 BAN Banking Principles 5 3 hours

80 20
305 BAN Banking Practices and Operations 5 3 hours
80 20
403 BAN Risk Management in Banking 5 3 hours
80 20
404 BAN Rural Banking 5 3 hours
80 20
ELECTIVE – II
INSURANCE
304 INS Principles of Insurance 5 3 hours

80 20
305 INS Management of Life Insurance Products 5 3 hours
4
80 20
403 INS Risk Management in Insurance 5 3 hours
80 20
404 INS Management of General Insurance Products 5 3 hours
80 20
Note: Teachers are advised to handle/analyse at least 3 or 4 cases in the subject in the
classroom on any topics outlined wherever feasible.
COST AND MANAGEMENT ACCOUNTING
Semester - I
Paper Code 101 Exam. Duration 3

Hours
PPW: 5 Max. Marks: 80+20 IA
Objectives:
To Familiarise the student with the basics of Cost and Managerial Accounting and
acquaint the student with practical knowledge in application of Cost and Managerial
accounting Techniques
UNIT-I : INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING:
5
Cost Accounting – Objectives – Importance – Cost concepts – Methods and Techniques of
Cost Accounting – Cost Classification – Overheads costing including Activity Based
(ABC) Costing (Theory only)
Management Accouting – Meaning - Management Accounting its relationship with

Financial Accounting and Cost Accounting – Techniques of management accounting –
Limitations of Management Accounting (Theory Only)
Accounting Standards – Concept – Types of Accounting Standards – An overview of

accounting standards in India (Theory only)
UNIT-II: MARGINAL COSTING, DIFFERENTIAL COSTING AND CVP

ANALYSIS:
Absorption Costing and Variable Costing – Comparison – Preparation of income
statements – Marginal and relevant costs for decision making – Cost – Volume – Profit
Analysis – break Even Analysis CVP analysis – Multi product BEP – Differential Costing
– Decision making uder Marginal and Differential Costing (Including Problems)
Managerial Decision Making – Pricing decisions – Product decision: Profit planning

Level of Activity, Dropping a product line, Introducing a new product line, Product /Sales
mix decision – Make or Buy decisions Key/Limiting Factors (Including Problems)
UNIT-III: RESPONSIBILITY ACCOUNTING AND INFLATION ACCOUNTING:
Responsibility Accounting – Concepts – Steps – Responsibility Centre – Types of

Responsibility Centres: Cost Centre, Revenue, Profit Centre and Investment Centre
(Including Problems)
Inflation Accounting – Concept – Limitations of historical based-cost financial statements
– Methods of Inflation Accounting: Current Purchasing Power Method – Current Cost
Accounting Methods (Including Problems)
UNIT –IV: FINANCIAL MEASURES OF PERFORMANCE AND CASH FLOW

STATEMENT:
Introduction – Return On Investment (ROI) – Concept – Uses and Limitations –

Economic Value Added (EVA) – Concept – Significance of EVA – Measurement of EVA
(Theory only)
Balanced Score Card (BSC) – Concept – Objectives – Perspectives of BSC - Multiple

Scorecard Measures to a Single Strategy (Theory Only).
Cash Flow Statement – Meaning - Preparation of Cash Flow Statement as per Accounting
Standard No. 3 (Including Problems)
UNIT V: REPORTING OF FINANCIAL DATA:
Concepts of Financial reporting – Development in Financial reporting : Trueblood Report

– The Corporate Report (UK) - Objectives of Financial Reporting – Qualities of Financial
Reporting – Specific issues in corporate reporting: Social Reporting, Segment Reporting –
Interim Reporting and Human Resource Accounting (HRA) - Harmonization in Financial
6
Reporting -Concept - Obstacles in Harmonization - Recent trend in corporate reporting in
India (Theory only)
SUGGESTED READINGS:
1. Sharma RK & Shashi K. Gupta: “Management Accounting” Kalyani Publishers,

New Delhi, 2003.
2. Hansen & Mowen: Management Accounting, Thomson, 2007.
3. Lele & Jawaharlal “Accounting Theory” Himalya Publishing Company, New
Delhi, 2005.
4. Louderback: Managerial Accounting. Thomson, 2005.
5. Jain S.P. & Narang K.L. “Accounting Theory & Management Accounting”
Kalyani Publishers, New Delhi, 2000.
6. Atkinson: Management Accounting”3e Prentice-Hall of India Private Limited,
New Delhi, 2005.
7. Rawat D.S. “Accounting Standards” Taxmann Allied Services Private Limited,
New Delhi, 2005.
8. Rustagi R.P. “Management Accounting”, Galgotia Publishing Company, New
Delhi, 2006.
9. Ghosh T.P. “Accounting Standards and Corporate Accounting Practices”,
Taxmann Allied Services Private Limited, New Delhi, 2000.
10. Antle: Financial Accounting with GAAP, Thomson, 2005.
11. Gupta R.L & Radhaswamy “Advanced Accountancy” Sultan Chand & Sons, New
Delhi.
12. Stice: Financial Accounting: Reporting & Analysis, 7e, Thomson, 2007.
13. Saudagaran: International Accounting, Thomson, 2007.
MANAGEMENT AND ORGANISATION BEHAVIOUR
Semester - I
Paper Code 102 Exam. Duration 3 Hours

Unit 1: MANAGEMENT PROCESS AND FUNCTIONS:

Introduction:. Organization and the need for Management- Factors Contributing to the increasing
7
Significance of Management – Relationship between Management Theory and Management
Practice – The Challenges in Management – Human Relations Approach: Elton Mayo’s
Hawthorne Experiments – Douglas McGregor’s Theory of ‘X’ and ‘Y’ – Management Process
and Functions: Nature and Description of Management Process and Functions – Planning –
Organizing – Directing – Co-ordinating and Controlling.
Unit II: Understanding Individual and Group Behaviour:
a. Organization - Definition – Organisation Theories: Classical Theory- Features –
limitations. Neoclassical Theory – features –Modern Organisation Theory – Systems
Approach – Contingency Approach.
Organisational Behaviour (OB) – Features – Scope – Fundamentals Concepts of OB –
Challenges and Opportunities for OB.
b. Individual Behaviour –Attributes– Factors influencing perception attitudes – Attitude
Formation and Attitude Change. Group Behaviour – Features – Group Cohesiveness-
Important Factors influencing group cohesive–Group Norms – Decision Making
Unit III: Motivation, Morale and Culture:

a. Motivation- Theories of Motivation – Motivational Processes - Content Theories ( Maslow,
Herzberg, McCleland) – Process Theories (Adam, Victor, Vroom and Lawler and Porter) –
Learning and Reinforcement Theory.
b. Morale – Factors influencing Morale
c. Organisational Culture – Concepts – Forming a Culture – Sustaining a Culture –
Changing a Culture
Unit IV. Organisational Power and Politics and Conflict & Negotiations
a. Power and Politics: Power Bases – Dependency – Individual Versus Organisational Power –
Political process in Organisation – Factors contributing – Techniques of Organisational
Politics – Managing Political Behaviour.
b. Conflict – Transition in Conflict Thought – Functional and Dysfunctional Conflict – Process
of Conflict – Managing Conflict.
Negotiations – Process – Approaches – Issues in negotiations
Unit V. Leadership and Change:

a. Leadership – Introduction – Leadership and Management – Leadership Styles
b. Theories of Leadership – Traits – Behavioral Model (Managerial Grid) – Contingency
( Feilder, Path goal, Tri-dimensional – Inspirational approaches
Suggested Readings:
1. Hellriegel: Organisational Behaviour, 10e, Thomson 2006.

2. Robins P.Stephen & Judge: Organizational Behavior, 12/e PHI, New De1hi.2007
3. Daft: Organisation Theory and Design, Thomson 2005
4. Fred Luthans: Organizational Behavior, Me Graw Hill, New Delhi.
5. Nelson: Organisational Behaviour, 3e, Thomson 2006
6. Daft: The New Era of Management, 7e, 2007.
7. Aswathappa: Organizational Behavior, Himalaya Publisher.
8. Hodgetts: Modern Human Relations at Work, Thomson 2007.
9. Jones G R :Organizational Theory, Pearson Education, New Delhi
10. Shashi Gupta & Rosy: Organisation Behaviour—Kalyani Publication.
8
MARKETING MANAGEMENT
Semester - I

9
Unit-I: Product Management
Concept of Product - Classification of Products - Product Levels Classification – Product Mix -
Product Mix Decisions - New Product – New Product Development Stages - Product Life Cycle
Stages &. Implications - Branding - Packaging & Labeling
Unit- II Price Management
Reasons for New Product Failure – Pricing – Objectives of Pricing – Role of Price in Marketing
Mix – Factors influencing Price Determination – Pricing under different Competitive conditions
– New Product Pricing Skimming and Penetration Pricing – Pricing Approaches – Cost base –
Value Based – Competition – Pricing Methods.
.
Unit-III: Promotion Management
Promotion – Significance – Product Mix – Advertising – Objection – Media – Budget – Types
of Advertising – Advertising Effectiveness.
Personal Selling – Nature – Steps in personal selling
Sales Promotion – Objection – Tools
Public Relations.
Unit-IV: Channel Management
Nature of Marketing Channels – Channel Levels - Channel Structure &. Participants –
Functions Marketing Intermediaries- Channel Design Decisions - Channel Conflict and
Resolutions - Online Marketing - Online Marketing Channels – Marketing Merits – Limitations
Trends in Retailing.
Unit-V: Marketing Information System (MklS) & Control
Concept of MkIS - Components of a Marketing Information System (Internal Records System-
Marketing Intelligence System-Marketing Research System-Marketing Decision Support
System) - Marketing Research Process - Marketing Research Vs MkIS - Marketing Research in
India - Annual Plan Control Profitability Control- Efficiency Control- Strategic Control.
Suggested Readings
Czinkota: Marketing Management, 2e

Philip Kotler: Principles of Marketing, Pearson/PHI 2007
Ramaswamy &. Namakumari: Marketing Management
Jain: Marketing Planning and Strategy, 7e
Gandhi IC : Marketing Management
Me Carthy EJ &. OtheIS: Basic Marketing
Rosenbloom: marketing Channels
Majare: The Essence of Marketing
Ian Chasten: New Marketing Strategies
Rajan Saxena: Marketing Management
FINANCIAL MANAGEMENT
Semester - I
10
Objectives: 1) To introduce the subject of Financial management; and

2) To acquaint the student with various techniques of Financial Management
UNIT -I: FINANCIAL MANAGEMENT –BASIC CONCEPTS:
Financial Management –Meaning, Goals and Objectives –Functions of a finance manager -

-
Financial decision-making; Concept and relevance of Time Value of Money Compounding
technique – Discounting technique (Simple applications of the time value of money)
UNIT II: LONG TERM INVESTMENT DECISIONS: CAPITAL BUDGETING:

Nature of Investment decision – -
Features and significance of Capital budgeting Types of
Capital budgeting decisions - Capital budgeting process - Cash flows estimation --
Methods/Techniques of Evaluation -Traditional techniques -
Payback period method
Accounting Rate of Return (ARR) method -Discounted Cash Flows (DCF)
methods/techniques -Net Present Value (NPV) method - Internal Rate of Return (IRR)
- -
method Reciprocal Rate of return method – Profitability Index Criteria for Selection of a
project - Evaluation and Interpretation of all the methods – Issues in Capital budgeting.
(including problems)
UNIT - III: RISK ANALYSIS IN CAPITAL BUDGETING AND COST OF

CAPITAL
a) Risk - meaning and nature - Risk adjusted discount rate - Certainty Equivalent (including
problems) - Statistical Techniques to handle risk - Probability Assignments - Standard Deviation
and Coefficient of Variation - Probability Distribution approaches - Decision Tree Analysis
(theory only)
b) Cost of Capital: Concepts - Importance - Specific cost of capital for various sources of
finance - Cost of Debt - Cost of Preference Capital - Cost of Equity Capital - Cost of External
Equity - Cost of Retained Earnings - Weighted Average Cost of Capital - Book Value and
Market Value Weights and Marginal Cost of Capital (including problems)
UNIT – IV: FINANCING AND DIVIDEND DECISIOINS

a) Concept of Leverages - Operating Leverage - Meaning and measurement – Financial leverage
- meaning and measurement – Degree of Financial and Operating Leverages- Combined
Leverage: Meaning, measurement and importance EBIT- EPS Analysis with different financing
patterns – Indifference point/level of EBIT. (Including simple problems)
b) Capital structure - meaning - Determinants of Capital Structure' - Optimum Capital Structure

- Capital Structure Theories - Net Income Approach. Net Operating Income approach
-Traditional view - M.M.Hypothesis (theory only);
c) Dividend decisions: Concept and significance – Types - Dividend policy and value of the
firm - Determinants of dividend decision – Relevance of dividend decision (Walter’s Model –
Gordon’s Model) – Irrelevance of dividend policy (Residuals theory of dividends, MM
Approach – Dividend policy and share value – Legal and procedural considerations. (Including
Simple Problems on approaches to Dividend policy)
UNIT - V: WORKING CAPITAL MANAGEMENT:

a) Concepts of Working Capital - Determinants of Working Capital -Optimum level of current
assets - Liquidity vs. Profitability - Risk Return Trade off . Estimating Working Capital needs
(including Simple Problems).
b) Objectives and importance of .Cash Management . Receivables Management and Inventory
Management (including problems on cash management and receivables management)..
11
suggested Readings:
1. Van Horn, James C: Financial Management, Prentice Hall of India (P) Ltd. New
Delhi
2. Eugene Brigham & Erhardt: Fundamental of Financial Management, 10e Thomson, 2006.
3. Solemen Ezra & Pringle John. J: An Introduction to Financial Management, Prentice Hall of
India (P)Ltd. New Delhi
4. Khan M.Y. & Jain PK: Financial management, Tata Mcgraw Hill Publishing Co.Ltd,
New Delhi
5. Pandey I.M.: Financial Management ,Vikas Publishing House (P) Ltd
6. Chandra Prasanna: Financial management, Tata Mcgraw Hill Publishing co. Ltd.
New Delhi.7
7. Kulkarni P.V.: Financial Management, Himalaya Publishing House, Bombay
8. Erhardt & Brigham: Corporate Finance: A Focused Approach, Thomson, 2005
9. Srivatsava R.M.: Essential of Business Finances, Himalaya Publishing House, Mumbai
10. Lasher: Practical Financial Management, Thomson 2005
BUSINESS ENVIRONMENT AND POLICY
Semester - I

12
Objective: To acquaint the student with the national and global environment
pertaining to business
'
Unit- I: Components of Business Environment

a) Business environment - micro-environment macro environment.
b) Policy environment - industrial policy - industrial policy resolution 1956 - new
industrial policy 1991 - shift in focus.
Unit - II: Liberalization and Globalization
a) New economic policy - economic reforms - liberalization.
b) Globalization - meaning - stages - factors facilitating and impeding globalization in India
- consequences of globalization for India.
Unit - III: Public Sector and Privatization
a) Public sector - changing role of public sector - relevance of public sector - public
Sector reforms.
b) Privatization and disinvestments - concepts - forms.
Regulatory framework with reference to insurance, power and telecom sectors.
Unit - IV: Foreign Capital

a) Foreign direct investment - policy - trends -problems - consequences - FEMA.
Multinational corporations - entry strategies - role - growth – problems
Consequences.
b) Mergers and acquisitions - reasons - trends - advantages and disadvantages
competition law.
Unit -- V: WTO and Trade Policy
a) WTO agreements - Agreement on Agriculture (AOA) - Multi-fibre Agreement (MFA) -
Trade Related Intellectual Property Rights (TRIPS) - Trade Related Investment Measures
(TRIMS) - General Agreement on Trade in Services (GATS) - Barriers to trade.
b) Trade policy changes consequent to WTO - recent Exim policy - consequences of WTO
For India.
13
References:
Books:
1. Prof. Laxmi Narain - Globalization - liberalization and privatization of public

enterprises
-Sultan Chand & Co.
2. S.K.Misra & V.K.Puri - Economic Environment of Business - Himalaya Publishing
House
3. I S.K.Misra &V.K.Puri - Indian Economy - Himalaya Publishing House
4. Francis Cherunilam - Global Economy and Business Environment - Himalaya
Publishing House
5. Francis Cherunilam - Business Environment - Text and Cases - Himalaya Publishing
House
6. Aswathappa - Business Environment - Himalaya Publishing House
7. Dutt and Sundharam - Indian Economy
8. Ray: Indian Economy, PHI 2007
Reports:
1. World Development Report
2. Human Development
Report
3 India Development Report
4. Pre-budget economic urvey
Periodical
Economic and Political weekly
Business India '
Business World
Business Today
Finance India
Business standard
BUSINESS ORGANISATION AND MANAGEMENT
Semester - I

Objective: To introduce the students to the various concepts of Business Industry,
Commerce and Trade and Management.
UNIT- I: INTRODUCTION:
Concepts of Business, Industry, Commerce, Trade, Plant and Firm. Objective of Business
– Forms of Business Organisation and their salient features – Sole Traders, Partnership,
HUF – Companies and Co-operatives – Company Promotion and Documentation.
UNIT-II: STRUCTURE AND SIZE OF INDUSTRY:
Industrial Structure – Public, Private, Joint and Co-operative sectors, Definition of size of
industrial unit – Measurement of size – Optimum size of firm – Different optima –
Representation Firm.
UNIT-III: STATE AND INDUSTRY AND INDUSTRIAL FINANCE:
Factors affecting Industrilization – Industrial policy – Liberalization and consequences –
Globalizations – Privatization – Role of MNC in Industrial development – Definition of
SSI – Problems and prospects of SSI.
Long Term and Short Term Finance: Fixed and working capital finances – Sources of
Finance – Stock Exchanges – Functions and services Working of stock exchanges in
individual Mutual Funds – Role of SEBI in regulating capital market.
UNIT – IV: INTRODUCTION TO MANAGEMENT:
Definition and Significance of Management – Different approaches to Management-
Functions of Management.
UNIT-V: PLANNING AND ORGANISATION:
Meaning – Importance and steps in planning – Types of Plans, Meaning and forms of
Organisation, Authority and power – Distinction – Delegation.
SUGGESTED READINGS:
Koontz & O’Donnel: Principles of Management, TMH
Dubrin : Essentials of Management, Thomson
Davar R.S Rustam: The Management Process,
Bhushan: Business Organisation and Management
Jagdish Prakash: Business Organisation and Management
Shukla: Business Organisation and Management
.
MANAGEMENT CONTROL AND INFORMATION SYSTEMS
Semester - II

Objective of the Course :
This course prepares the students to appreciate the necessary dimensions of developing
such systems and enables them to become effective management professionals in
Finance/Accounting areas. It also provides practical knowledge of computerized
accounting packages.
Unit-1: Management Control Structure:
Nature of Control – Control in Organizations – Planning and Control Processes –

Overview of Management Control Systems – Management Control Information;
Responsibility Centers – Investment Centers – Revenue Centers – Expense Centers –
Discretionary Expense Centers – Administrative Centers – Development Centers –
Marketing Centers – Profit Centers – Other Profit Centers – Measuring Profitability.
Transfer pricing – Meaning and Objectives – Methods.
Unit- II: Management Control Process
Management Control Process – Programming: The Process of Programming – Principal

Steps in Programming Process:
Budget Preparation – Budget Vs. Forecasts – Types of Budgets(Expensive Budget,

Revenue Budget, Profit Budget) – Review of and approval of Budgets – Budget
administration – Behavioral aspects of Budget.
Analyising and reporting of financial performance: Analysis of variances (revenues

variance, cost variance), reporting variances. Factors affecting performance appraisal –
Financial measures – The profit budget in performance appraisal – Tight Vs. Loose
delegation – Other financial performance Measures – Non-budgetary techniques – Non-
financial measures.
Unit-III: INFORMATION SYSTEMS IN ORGANIZATIONS
Information Systems – Organization, Management & Strategy

Information needs of management at various levels of organization-flow of Information
in the organizations – Top down – Bottom up – Integration Information Systems –
meaning – nature – Role.
Current Issues in Information Systems – Role of Intranet and Internet in the development
of financial information system for a Business organization – E-Commerce – Enterprise
Resource Planning – SCM – CRM – Integration planning of the above with financial
system.
Unit-IV: Approaches and Types of Information Systems:
Approaches of Information Systems – Technical – Behavioral – Social-technical

Approaches – Types of Information Systems in Business Organizations – Decision
Support System – MIS – Expert System – Knowledge Management System – Transaction
Processing System – Importance of Information Systems in supporting various levels of
Business Strategy formulation and decision making – Software and Hardware
requirements for developing efficient Information System.
Unit-V: Computerised Accounting and Accounting Packages:
Computeriesed Accounting – Features – Advantages and Disadvantages – Computerized

Accounting and Manual Accounting – Creation of Company – Grouping of Accounts –
Creation of Accounts and Inventory – Entering transctions – Vouchers – Tyepes –
Numbering deleting and editing vouchers – Opening and closing balances – Stock
valuation.
Reports generation: Trial balance – Profit and Loss Account – Balance Sheet – Balance
Reconciliation – Stock Report – Budget Variance Report - Transaction list – Customer
/Supplier Report – Value Added Tax (VAT) – Register – Report – Service Tax – Register
– Report.
Lab work: Accounting Package – Tally and others.
References:
1. Anthony and Dearden: Management Control Systems TMH

2. Stair: Principles of Information Systems, 8e – Thomson
3. Turban: Introduction to Information Technology, Wiley India
4. O’Brien: Introduction to Information Systems, 4e, TMH
5. Cyzanshy: I.T - Inside and Outside – Pearson Education
6. Handbooks and documentation of the relevant package for UNIT-V.
SECURITY ANALYSIS AND ASSET MANAGEMENT
Semester - II

Objective: To familiarize the student with the principles and practice of Risk-Return
analysis, Asset and Portfolio Management;
UNIT-I SECURITIES MANAGEMENT
Money market sercurities – Bonds and debentures – Equity shares – Convertible

securities – Primary market – secondary market – Market Indexes – Construction of an
Index – Arbitrage.
Assets Security Management – Investment Assets (Treasury Management, Bond
Management); Funded assets – Loan and advances; Non-funded assets – Cutomer
acceptance and obligations.
UNIT- II: EQUITY AND BOND VALUATION:
Fundamental analysis – Capitalizing earnings – Price – Earnings (PE) Ratio – Economy,

industry and firm – Charting and technical analysis – Market Interest rates – Yeidl
spreads – Yield to maturity – Yield curve – Interest rate swaps and bond swaps – spot
Effiecient Market Hypothesis (EMH).
UNIT –III: RIST – RETURN RELATIONSHIP
Risk management - Risk of Securities -.Systematic Risk - Interest Rate Risk -Market Risk
–Purchasing Power Risk-Unsystematic Risk -Business Risk -Financial Risk – Efficient
Market Theory.
Measurement of Risk and Return, Expected Return, Standard Deviation and Variance of
Securities (Including simple problems)
Unit -IV : Portfolio Management
Diversification - Portfolio Analysis. Traditional Vs Modern - Rationale of Diversification

- Asset allocation and Portfolio design - Markowitz Diversification - Effect of Combining
two securities - Measurement of Expected Return of Portfolio - Portfolio Risk – Capital
Assets Pricing Model (CAPM) (including simple Problems).
UNIT –V: DERIVATIVES:
Futures and Options – Index Futures – puts and calls – Applications of
derivatives – Hedging and speculation (Theory only)
SUGGESTING READINGS:
1. Agarwal: A Guide to Indian Capital Market, New Delhi
2. Stulz: Risk Management and Derivatives, Thomson 2007
3. Avadhani: Indian Capital Markets, Himalaya Publishing House.
4. Reilly: Investment Analysis and Portfolio Management, Thomson
5. Devin: Portfolio Management, PHI
6. Mayo : Investment, 7e , Thomson
7. Alexander & Sharpe: Fundamentals of Investments, PHI
8. Gangadhar : Investments
9. Machiraju: Working of Stock Exchanges in India – New Age
10. Strong : Derivatives: An Introduction, Thomson
11. Preeti Singh: Investment Management, Himalaya Publications
12. Bhalla: Investment Management, S. Chand & Company.
13. Whatsham: Futures and Options in Risk Management. Thomson
FINANCIAL INSTITUTIONS AND MARKETS
Semester - II

Objective:
To provide the students with an exposure and thorough understanding of Financial

Institutions and Markets and its components. The focus is given more on the Stock
market operations, regulatory provisions, financial institutions and markets.
UNIT I: Introduction
Financial Institutions - Meaning - Characteristics - Broad Categories - Money market

institutions - Capital market institutions - Indian Financial institutions - FtnanClllo
Markets - Meaning - Definition - Role - Functions - Constituents - Financial
Instruments - Capital Market Instruments - Indian Money and Capital TIfll'kCtS -
Glohvl Financial Markets
UNIT II: SEBI and Regulations of Primary and Secondary Markets

Securities and Exchange Board of India (SEBI) - Primary Market -- Regulations of
Public Issues - Guidelines for Debentures - Issue of Shares - Underwriting - Employee
Stock Option Scheme - Issue cSf Shares through OTC exchange of India - Book
Building - Secondary Market - Registration of Members of Stock Exchange -
Stockbrokers and Sub-brokers Regulations - Prohibition of Fraudulent and Unfair
Trade Practices - Monitoring of Price Manipulation - Surveillance and Enforcement -
Insider Trading
UNIT III: Money Market and Capital Market
Moiey Market - Meaning - Characteristics - Objectives - Importance - Functions -
Segments - Financial Institutions - Money market and Capital Market - Global Money
Market - Call Money Market - Meaning - Features - Benefits - Indian Call money
market - nature of dealings - Participants - Modes of operation - Call money market
rates - Commercial Bill Market - Meaning - Features - Satellite Dealers - Capital
market - Meaning - Indian Capital Market - New Financial Instruments - Capital
Market Doldrums - Harshad Factor - Measures of Rejuvenation - Recent initiatives in
the Indian Capital Market
UNIT IV
Clearing Corporation of India Limited (CCIL) - Settlement risks - Settlement method

- lusk management system - Maa aging specific risk - Benefits - Modern technology -
Outlook for the future - CredA Rating and Information Services of India I.imited
('CRISIL) - Range of Services - Strategic Alliance - Strengths - Achievements -
Discount and Finance House of India Limited (DFHIL) - Financial resources -
Objectives - Operations - Achievements - Challenges ahead
Investment Information and Credit Rating Agency of India Limited (ICRA) - Genesis
-Range of Services - Corporate Governance Rating services - Mutual funds rating -
Corporate review - Achievements - Securities Trading Corporation of India Limited
(STCI) - RBI Support - Current Activities - Money Market - Money Market
Instruments
UNIT V
a) Capital Market Instruments - Preference shares - Equity shares - non-voting equity
shares - Convertible cumulative preference shares - Company fixed deposits -
Warrants - Debentures and Bonds - Global debt instruments
Capital Market reforms - General Capital Market reforms - Primary market reforms -
Secondary market reforms
b) Depository system - National Securities Depository Limited (NSDh) - Promoters -
Objectives - Benefits of depository system.
c)Internet Stock Trading - Meaning - Features - Current Scenario - Internet Trading
alternatives - Regulating internet stock trading - IPOs on the internct - Indian
experience -13-1P0 - f?-I3rokint; and Inlcrnct SUx;l< "I rauling
SUGGESTED READINGS
1. Machiraju, H.R., Indian Financial System, Vikas Publishing How,e Pvt.

Ltd.
2. Gursamy S., Financial Markets and Institutions, Thomson.(2004)
3. Vasant Desai, Indian Financial System, Himalaya Publishing House
4. Gurusamy, S. Financial Services and System, Thomson.
5. Madura: Financial Institution and Markets, Thomson 2007
6. M.Y.Khan, Financial Services:
7. Preeti Singh: Investment Management, Himalaya Publishing House.
IT & E-COMMERCE
Semester - II

PPW: (3T+2P) Max. Marks: 56+14 IA
Objective: Information Technology is useful in acquisition, processing and

Organization of data, be it text, graphical, audio, video or multimedia. Main aim of the
subject is to make students know and learn about Information Technology through its
applications. Most stress is therefore laid on learning of Computers from users' point
view. The course contents also aimed at evaluating the Indian Bank Vision vis-a-vis the
Global standards. In this context the technology implementation in Banking and
systematic progress of E-Commerce is evaluated.
UNIT 1:. INTRODUCTION TO INFORMATION TECHNOLOGY

Data, Information and knowledge and IT. Changing decision-making scenario;
Quality of information; IT Applications in various sectors, such as Banking,
Insurance, Finance, Health care, Medical field, education, Transport, traffic,
Manufacturing and retail and distribution.
UNIT II: DATA ACQUITSITION AND ORGANISATION
Acquisition of Textual Data - Acquisition of Pictures-Storage Formats for Pictures,
Image Compression Fundamentals, Image Acquisition with Digital Camera, Exercises,
Acquisition of Audio Data - Basics of Audio Signals and their acquisition and their
storage, Compression of Audio Signals, Exercises; Acquisition of Video-Capturing a
moving image with a Video Camera, Compression of Video data, MPEG Compression,
Exercises; Procession Multimedia Data-Graphics Processing, Audio Signal Processing,
Exercises.
UNIT III : MS OFFICE PROGRAMMES-Word, Excel, Access and Power Point
Importance of MS Office; MS Word-Parts of window. Mouse, Mouse operations, Key

board operations, Important keys, Formatting features, Toolbars and their icons,
Creating a document/Template, Mail merge, Macros-Exercises, MS ExcelEntering and
Editing text, Entering formulae, Centering across cells, Entering dates, Menus,
commands, toolbars and their icons, Currency format, Data sorting, Data filters
Functions, Round, SQRT, Average Max, Min, COUNT, SUM, IF, SUMIF, ABS,
CELL, TODAY; FINANCE FUNCTIONS, SLN, SYD,PV,NPV, IRR, IPMT, FV DB
DDB, VDB, CUMPRINC, CUMIPMT, AMORDEGRC, Exercises, MS Power point-
Uses, Toolbars and their icons & commands, Navigating, Preparing a presentation,
content Wizard, Exercises.
Unit-1V: E- Commerce, Internet and E-Banking:
Introduction-Concept of E-commerce, Elements of E-Commerce, Impact of Internet on e-
commerce, e-commerce in Indian Scenario, Economic Potential of e-commerce, e-
commerce concerns & M Commerce.
Implementing E-Commerce, Creating an E-Commerce Website, E-Commerce
Implementation -Technology - Constraints in implementation of E-Commerce - E-
Commerce-Distinct Advantages & Business Models of E-Commerce
Introduction to Internet, Growth of Internet, Internet-Gateway to Digital World, Internet
Governance, World Wide Web, Dynamics of Internet Banking, Internet Banking-A critics
Viewpoint, Intranet Portal, Intranet Portals- A new way to Bank, E-Sourcing, ETrading,
Net Telephony, Advertisement and Marketing through Internet - M-Banking, Data
Warehousing and Data Mining.
Unit-V: Net Work and Infrastructure for E-Payment Systems, E-Cheques, E-Payment
Channels
and Security.
Basic Networking Infrastructure, Networking Standards, Electronic Payment Gateways,

Additional Requirements for E-Commerce, Web Technology Products.
Banking Network in online Commerce, Electronic Cheques, Electronic Cash, Electronic
Credit, Electronic Purse, Smart Cards, SWIFT, ECS, etc., Designing Electronic Payments
and Settlement Systems and Operational Risks and Legal Issues.
Security concerns of E-Banking - Encryption Techniques and Digital Signatures - Public
Key Infrastructure - Digital Copyrights and Electronic Commerce - Firewalls and
Network Security - Secure Socket Layer and Secure Electronic Transaction
LAB WORK: MS Office - MS Word, MS Excel, Power Point; Applications under MS
Excel and Access; Acquisition of data- Textual, Audio and Video.
Prescribed books:
1. Effy Oz: Management Information Systems, 5e, Thomson 2007
2. V.Rajaraman='Introduction to Information Technology-Prentice
Hall of India Private Limited.
3. Sanjay Saxena-A First Course in Computers-Vikas Publishing House.
4. Morley: Understanding Computers. Thomson 2007
5. Laudon & Laudon-MIS, Organisation and Technology, MC Grawhill
6. Stair: Principles of Information Systems, 8e, 2007
7. Schneider: Electronic Commerce, Thomson 2007

FINANCIAL SERVICES
Semester - II

OBJECTIVE: To acquaint the student with Innovative financial services offered to met
the varied requirement of both the corporate and Individual customers.
UNIT-I: AN OVERVIEW OF THE FINANCIAL SERVICES
1. Meaning – Classifications – Traditional Activities –

Financial sector reforms and Financial Innovations in India – Banking and Non-
Banking services
2. Overview of 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 –
Bancassrance services, Credit rating, Credit cards, Derivatives Mergers,
Acquisitions and Amalgamation – Services in Forex Market, Lines 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
1. Leasing – Financial lease and

Operating lease – Differences between Lease and 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.
2. Hire Purchase – Terms of the
agreement under hire purchase – types of hire purchase – Advantages
3. 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-III: MUTUAL FUNDS:
Mutual fund – fund unit Vs. Equity share – Importance of Mutual funds – Types of
Mutual funds- main features of the close ended funds – Open ended funds Income funds
Growth funds – Risks involved – Organisation of firm – Facilities available to investors –
guideline from the government of India – Recent reforms in mutual funds – Banks
providing MF 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 FORFEITING:
Discounting factoring – 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 – Edifactoring : 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.
REFERNECES:
1. Gordon: Financial Markets and Services, 2e Himalaya 2003

2. Gurusamy: Financial Services & Markets, Thomson 2005
3. Gurusamy: Financial Systems and Services, Thomson
4. Avadhani: Marketing of Financial Services, Himalaya 2004
5. Madura: Financial Institution & Markets, Thomson 2007
6. Pathak: Financial Markets and Services, Pearson 2005
7. Khan & Akbar Ali Khan Sudershan: International Trade &
Finance, Himalaya 2006
BUSINESS ACCOUNTING
Semester - I

Objective: To enable the students to acquire basic fundamental knowledge of business

accounting; ot acquaint students as to how business transactions are entered into all books
of accounts; to acquaint the students about the preparation of final accounts, preparation
of bank reconciliation statement and preparation of business accounting and their
applications to measure the performance of business.
UNIT – I : Introduction
a. Definition, meaning, need and scope of accounting – Book keeping and accounting –
Advantage and limitations of accounting process – Accounting Concepts –
Introduction to Accounting Statndards
b. Journalizing – classification of accounts – Ledger – Interpretation of balance of
ledger accounts – subsidiary books including different types of cash books analyzed
petty cash book and the imprest system.
UNIT –II: Preparation of Final Accounts:
a. Final Accounts of sole trader – Trial balance – Capital and Revenue Expenditure and
Receipts – Trading Account – Profit & Loss account and Balance Sheet – Adjusting
and Closing entries – Depreciation – Bad debts, Provisions for Bad Debts, Provisions
for Discounts on Debtors – Other Adjustments for Final Accounts: Accruals,
Prepayments etc. – Introduction to Compute Accounting ( Including simpe problem).
b. Errors and their Rectification – Types of errors – Rectification before and after
preparations of final statements of Accounts – Suspense Account – Effect of erros on
profit ( Including simpe problem).
UNIT-III: Bills of Exchange
Bills of Exchange – Definition – Promisory Notes and Bills of exchange – Recording of

transactions relating to Bills – Books fo Drawer and Acceptor – Honour and dishonour
of Bills – Renewal of bills – Retiring of bills under rebate – Accommodation bills.
( Including simpe problem).
UNIT – IV: Consignments and Joint Ventures:
Consignments – Features, Proforma invoice – Account sale decreed commission –

Accounting treatment in the books of the consignor and the consignee – Valuation of
consignment stock – Normal and abnormal loss – Invoice of goods at a price higher the
cost price – Joint Ventures – Accounting procedures – Joint Bank Account (Including
simpe problem).
UNIT-V: Bank Reconciliation Statement:
Bank Reconciliation Statement – Need – Reasons for difference between cash book and
pass book balances – problems on favourable and over draft balances – Ascertainment
of correct cash book balance. ( Including simpe problem).
SUGGESTED READINGS:
1. A N Agarwal : Higher Science of Accountancy
2. Jain & Narang: Advanced Accounting
3. Gupta & Radhaswamy: Advanced Accounting
4. Warren: Financial Accounting
5. Grewal: Introduction to Accountancy
6. Patil & Kollahalli: Principles & Practice of Accounting
QUANTITATIVE TECHNIQUES FOR BUSINESS DECISIONS
Semester - III

OBJECTIVE: The purpose is to impart inferential skills to the student by using

quantitative Techniques for business decisions.
UNIT- I: STATISTICAL ESTIMATION AND HYPOTHESIS TESTING

Introduction to Hypothesis testing: Meaning of 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 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 the significance of Mean - Significance of the difference
between means of two samples - Significance between the standard deviations of two
samples (Including problems).
SMALL SAMPLES: - 't' test - fixing fiducial limits to population mean - testing the
significance of the mean - testing the significance of the difference between two
independent means - testing the significance of the difference between two dependent
means (Including problems). .
UNIT- III : ANALYSIS OF VARIANCE AND STATISTICAL QUALITY CONTROL

F test - meaning - Applications of F test - 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 -
Control Charts for Variables -X: Chart - Range chart - Standard deviation chart - Control
charts for attributes - C chart -p chart - np chart.
UNIT IV – NON- PARAMETRIC TESTS:

Association of Attributes: Meaning – Distinction between Correlation and Association –
Methods of Studying Association – Interpretation of Results.
Meaning and application of Non-parametric Tests –
Chi Square Test – Definition – Conditions for Appling 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)
One Sample Tests- Kolmogorov-Smirov One Sample Test –Runs Test for Randomness,
One Sample Sign Test
Two Sample Tests – The sign test Mann-Whitney U Test and Wilcoxon Matched –Paired
Signed Rank Test.
K Sample Tests – Median Test and Krusdkal – Wallis Test.
UNIT V - LINEAR PROGRAMMING:

Linear Programming Meaning - Requirements for application of linear programming -
assumptions advantages - application of LP - Formulation of LP problems (including
simple problems)
Graphical solutions of Linear Programming problems with two variables only (including
simple problems).
SUGGESTED READINGS:
Levin and Rubin : Quantitative Approaches in Management, Pearson

Education/PHI
S.C.Gupta : Fundamentals of Statistics, Himalaya Publishing House
Anderson Quantitative Methods for Business Decision, 8e Thomson
Barry Render,
Ralph M. Stair Jr.,
Michael E.Hanna: Quantitative Analysis for Management, 9e PHI
Anderson Introduction to Management Science: Quantitative

Techniques for Decision Making, 11e, Thomson
G. Gopikuttan: Quantitative Methods and Operational Research Himalaya

Publishing House.
D.C.Sancheti &
V.K.Kapoor Statistics, Sultan Chand & Sons
Anand Sharma: Quantitative Techniques for Decision Making Himalaya

Publishing House.
Mendenhall Introduction to Probability and Statistics, 12e Thomson

Shenoy .G.V.,: Quantitative Techniques for Managerial Decisions. New Age
Gupta and Khanna Quantitative Techniques for Decision Making, 2e PHI 2006.
PROJECT MANAGEMENT
Semester - III

Objective: The objective of this course is to enable the students to gain basic knowledge
about the concept of project, project management, project life-cycle, project appraisal; to
acquaint the students about various issues of project management; preparation stages of
the project proposals and how the costs and benefits are determined. Further, the course
aims at providing the students an exposure to project financing, monitoring and
implementation techniques also.
UNIT-I: BASICS OF PROJECT MANAGEMENT:
Concept of Project Management - Project environment - Types of Projects - Project life

cycle - Project proposals - Monitoring project progress - Project appraisal and Project
selection - Causes of delay in Project commissioning (External causes and Internal
constraints) - Remedies to avoid overruns - Strategic Issues and variables involved in
Project identification and its commissioning -
Introduction to Use of Software in project management- Software development Process -
Selection of software packages for Project management-.
UNIT-II: PROJECT IDENTIFICATION AND FEASIBILITY:
Identification of Investment opportunities - Sources of new project ideas, preliminary

screening of projects - Feasibility studies and reports - Stages of Project feasibility study -
Components for project feasibility studies - Broad aspects of appraisal: Market feasibility
( Market survey - Categories of Market survey - steps involved in conducting market
survey - Demand forecasting techniques, sales projections); Technical feasibility
(Production technology, materials and inputs, plant capacity, site selection, plant layout,
site preparation, civil works and structures, details of machines and equipment,
specifications and cost determination); Operational feasibility (Heads of cost, estimates of
cost of production, Breakeven point, economics of working); Managerial Feasibility -
Project organization and responsibilities.
UNIT-III: FINANCIAL ANALYSIS:
Capital Expenditure - Criteria and Investment strategies - Capital Investment Appraisal

Techniques (Non DCF and DCF), risk analysis.
Cost and financial feasibility - Cost of project and means of financing, Project Life-Cycle
Costing (LCC) - Objectives and significance of LCC - Estimation of cash flows -
Estimation of Capital costs and operating costs; Revenue estimation - Income
determinants - Forecasting income - Preparation of detailed financial projections; Use
and preparation of CMA Reporting Formats - Bank appraisal of the Project finance -
Submission of statement - Periodical follow up - Terms and conditions.
Project cost reduction methods (Value engineering, TQM, Standardization, project
inventory, sub-contracting, Judicious time management, maintainability and others);
UNIT-IV: PROJECT MONITORING AND CONTROL:
Network Concept (Concept of event, activity, ladders, numbering of events)- Objectives

of network - Rules for drawing a network - Advantages of network
planning/scheduling. Development of Programme Evaluation & Review Technique
(PERT) - Benefits of PERT - Assumptions in PERT modeling - Construction of PERT
(Project duration and valuation, slack and critical activities, critical path interpretation);
Critical Path Method (CPM) - Difference between PERT and CPM - Assumptions in
CPM modeling - Aspects of Time - Cost Trade-offs - Effective Project cost control ;
Resource Planning, Resource allocation and control.
UNIT-V: LEGAL ASPECTS OF PROJECT MANAGEMENT:
Legalities - Basic legal provisions - Agency and Power of Attorney - Sale of Goods Act
- Central Sales Tax - Transfer of Title - Negotiable Instruments - Bailment - Indemnity -
Excise duty -VAT.
Letter of Credit - Bill of Lading -Mode of transportation - Carriage of Goods and the
provisions thereof.
Insurance for projects - Important risks in Projects and relevant insurance policies.
(Note: Financial appraisal techniques of Non-DCF and DCF are covered in the subject
Financial Management. They will not be taught in this paper. Similarly, market survey
and steps involved in conducting market survey are covered in marketing management
subject. They will not be taught in detail in this paper.)
Suggested Readings:
1. Gido: Effective Project Management, 2e, Thomson, 2007

2. Prasanna Chandra: "Projects,Planning,Analysis,Selection, Financing,
Implementation and Review" Tata McGraw Hill Company Pvt. Ltd., New Delhi.
(1998)
3. Damodaran: "Corporate Finance"; Johy Wiley Publications.
4. Erhardt & Brigham: Principles of Corporate Finance; Thomson, 2006
5. Singh,M.K.: Project Evaluation and Management.
6. Prasad, N.K.: Principles and practice of Cost Accounting. 8. Pahwa,HPS: Project
Financing.
7. Clifford,F.Gray, Erik W.Larson: Project Management, the Managerial Emphasis,
McGraw Hill-2000.
MARKETING OF FINANCIAL SERVICES
Semester - III

OBJECTIVE:
The objective of this paper is to acquaint the students about the

marketing mix
of Banking and Insurance services and strategies for marketing of

Banking and insurance services.
UNIT-1: SERVICES - AN OVERVIEW:
Services - Importance of service marketing - Services marketing

environment (Political, legal, economic, social, cultural, technological
and others) - Reasons for the growth of service sector - Differences
between goods and services and their classification - Trends in the
development of services in the Post reforms period.
UNIT-III: CONSUMER BEHAVIOUR AND MEASURING THE QUALITY OF
SERVICES:
Consumer Buying Process - Segmentation - Target market selection -

Position services -Services marketing mix (Product, Price, Promotion,
Place, Channels of distribution, Process, people).
Service Quality dimensions - StrategiesF to deal with service quality
dimensions; Internal marketing- definition - aspects - approaches -
value and practices; External Marketing; Interactive marketing -
introduction - design - development - methods; Relationship
marketing - definition - application - customer relationship, Usage of
technology in services marketing.
UNIT-11: MARKETING OF FINANCIAL SERVICES:
Introduction to Marketing of Financial Services - New Challenges -

Special features of service marketing - Basic bricks for marketing
strategies - Marketing services in banking field - Marketing services in
Mutual Funds - Marketing services in Insurance - Need for meeting
global competition - Customer Satisfaction.
UNIT-IV: MARKETING OF BANKING SERVICES:
Introduction - Marketing of Banking services - Marketing mix of

Banking services (Product, Product Development, Promotion, Pricing,
Place or Distribution Channels, Process, People -Insurance based
product marketing - Corporate segmentation marketing - Retail
marketing - Internet marketing - Consumer oriented marketing -
Ancillary services marketing.
UNIT-V: INSURANCE MARKETING:
Introduction to Insurance marketing - Marketing of Insurance Products -

Direct Marketing - Salesmanship in Insurance - Marketing mix of
Insurance - Intermediaries and distribution channels - Bancassurance -
Bancassurance schemes / products - The Marketing mix of insurance
services (Product, Product Development, Promotion, Pricing, Place or
Distribution Channels, Process, People) - Client servicing in Marketing -
Critical success factors for Insurance Marketing - Marketing strategies
of Insurance Players in India - Marketing strategies of prominent
Insurance players.
References:
1. M.K. Rampal, S.L.Gupta (2002): Service Marketing Cocnepts,

Applications and cases: Galgotia Publishing Company, New Delhi.
2. Hoffman: Services Marketing, 3e , Thomson 2007.
3. Mohan Rao, R.L. Hyderabad: Financial services - Text , Cases and
Strategies; Deep and Deep Publications Pvt. Ltd. , Delhi.
4. Gurusamy: Financial Services and Markets, Thomson 2005
5. J. Owen Stalson : Marketing Life Insurance; Mc Cahan Foundation
Publications.
6. Avadhani, VA: Marketing of Financial Services; Himalaya
Publishing House.
7. Course material of Institute of Banking and Insurance Institute of
India.
8. M.Y. Khan: Financial Services.
TAX PLANNING AND AUDIT CONTROL
Semester - IV

Objective: To acquaint the student with theoretical and practical knowledge of Tax
Planning and Auditing techniques.
UNIT - I: INTRODUCTION TO TAX PLANNING
Nature of tax - Essential components in levy of tax - Legal principles of taxation laws
- Five basic Rules of interpretation of statutes - Law Lexicon and Legal Maxims -
Concepts of Tax Avoidance, Tax Evasion, Tax planning and Tax management (Only
Theory).
UNIT - II: TAX PLANNING - INDIVIDULAS
Planning with reference to all five heads of Income for Individuals - Salaries, House
Property, Profits From Business & Profession capital gains and other sources (Theory
and Simple Problems).
UNIT - III: TAX MANAGEMENT DECISIONS
Tax considerations arising with regard to specific managemPnt decisions, such as

make/buy, own/lease export/local sale, shut down/continue, Expand or Contract,
Merger and Amalgamations and New Capitz Investment. Guidelines to Tax planning -
Relief's - Concessions - Rebates - Deductions - Incentives {Payment of Advance Tax -
Filing of Returns - Refunds - Penalties for non-compliance, (Problems on ta planning
with reference to tax liability of Firms and Companies should be worked out) (Theory
an Simple Problems).
UNIT - IV: AUDITING
Meaning - definition - Objectives - Types of audit: Internal audit, statutory audit,

Government audi Balance sheet audit, Periodical audit - Position of an auditor in case
of fraud - Generally accepted auditin practices with special reference to Banks and
Insurance - advantages and limitations of audit - Person, qualities of an auditors.
UNIT - V: AUDIT PLANNING AND CONTROL
Determining the scope of audit - Audit programme and planning - Internal control:
meaning - importancf Internal check - Internal audit - Vouching of cash transactions
and trading transactions -Verification an valuation of assets and liabilities - Audit of
sole trader and partnership firms.
Auditing Procedure in Banks - Auditing Procedure in Insurance.
References:
1. Vinod K. Singhania : Taxmann's Indirect Tax Laws

2. Bhagawathi Prasad : Direct Tax Laws and
Practice Reading Material Published by ICAI,
ICWA and ACS
3. V.S. Datey : Indirect Taxes, Taxmann Publications.
4. Kamal Gupta :Contemporary Auditing
5. N.D. Kapoor :Auditing:
6. T.N. Tandon :Practical Auditing
7. Jagdish Prakash : Principles and practices of Auditing:
8. Course material of : Insurance Institute of India and Institute of Banking in India.

INTERNATIONAL FINANCE
Semester - IV

OBJECTIVE: To acquaint the student with International Finance environment and the
channels of International financial flows, and expose them with different sources of
international financing, how exchange exposure risk, what are the currency futures and
option markets, what the modes and the methods of foreign trade financing.
UNIT-I: AN OVERVIEW OF INTERNATIONAL FINANCIAL MANAGEMENT AND FOREIGN

EXCHANGE RATE MECHANISH
2. Need – Meaning, Nature and scope of International Finance – International

Financial Management – International Finance Vs Domestic Finance ( Theory Only).
3. Foreign Exchange Rate Mechanism: Exchange rate quotations –
Determination of exchange rate in the spot market – exchange rate determination in
forward market – Factors influencing Exchange rate ( Including Problems)
UNIT-II: CURRENCY FUTRUES AND OPTION MARKETS
Introduction to derivatives market – Types of financial derivatives – Distinctive features

of derivatives market – Traders in derivatives market – Currency futures – Future
contracts Vs. Forward contracts – Pricing futures – Futures trading strategies ( Hedging,
speculative trading and arbitrage strategies) – Currency options – Salient features and
types of options – Futures Vs. Options – Pricing options ( Black Scholes option Pricing
Model) – Opting trading strategies – Derivatives trading in India ( Theory Only)
UNIT-III: FOREIGN EXCHANGE EXPOSURE AND RISK:
Nature of exposure and risk – Exchange rate and interest rate volatility – Foreign
exchange and risk – Classification of foreign exposure and risk – Transaction exposure –
Operating exposure – Accounting treatment – Management of foreign exchange exposure
risk through hedging (Including Problems)
UNIT-IV: INTERNATIONAL FINANCIAL INSTRUMENTS:
Channels of International Flow of funds – Euro currency market – Euro credit – Euro
Bonds – Types of Euro Bonds – Euro currency deposits – Certificate of deposits and
other instruments – Euro notes – Types of notes – Euro issues – Foreign Currency
Convertible Bonds – Depository Receipts – Global Depository Receipt (GDR’s) – GDR
issue mechanism – American Depository (Theory only)
UNIT-V: FINANCING OF FOREIGN TRADE
Introduction too foreign Trade financing – Export financing – Pre-shipment and Post-
Shipment finance – Documentation formalities and procedures for the grant of packing
credit – Documentation formalities and procedure for the grant of Post-Shipment finance
– Modes and sources of import finance – Methods of payment – Role of Letter of Credit
in import finance. (Only Theory)
REFERNECES:
1. Shapiro: Multinational Financial Management PHI,

2. .Madura: International Corporate Finance, 8e Thomson 2007
3. Sharan: International Financial Management, PHI
4. Clark: International Finance, 2e Thomson 2006
5. Bharati V Pathak: Indian Financial Management , Pearson
6. Jeevenandam: Foreign Trade Finance and Risk Management, Sultan
Chand
7. Avadhani: International Finance, Himalaya
TAXATION
Semester - I

Objective: To acquaint the students with the basics and the latest developments in the area
of Taxation.
UNIT I – INTRODUCTION
a) Introduction to Taxation – Cannons of Taxation – Types of Taxes (Direct and
Indirect) – Features – Differences – Constitutional Provisions relating to Taxes –
Concepts of Tax avaoidance, Tax evasions, Tax Planning and Tax Management.
b) Income Tax: An overview of Income Tax Act 1961 – Basic Concepts – Person –
Assessee – Previous year – Assessment year – Income – Gross Total Income –
Taxable Total Income – Incomes exempt from Tax.
UNIT II – ASSESSMENT:
Residential Status – Incidence of Tax – Rates of Tax – Income Tax authorities –
Functions – Filing of different types of returns fo Income – PAN – Important due dates
under IT Act – Types of Assessment – Penalities and Prosecutions.
UNIT III – WEALTH TAX

Introduction – Definitions – Assessee – Assessment year – Assets – Net worth –
Valuation date – Rates of Tax – Persons liable for tax – Charge of Wealth Tax – Deemed
Assests – assets exempt from Wealth Tax
UNIT III – INDIRECT TAXES

a) An overview of Central Excise Act – Central Excise Tariff Act – Central Excise
Rules – Important terms and definitions – Goods – Excisable goods – assessee –
Asseable value – Manufacturer – Cenvat – Meaning – Salient features.
b) Customs Act – An overview – Classification for Customs – Types of Customs
duties – Exemptions – Overview of organisaional and authorities of Central
Excise and Customs.
c) Service Tax – Indtroduction – Significance and rationale for Service Tax –
Chargingof Service Tax – Taxable Service – Taxable Event – Person who has to
pay Service Tax – Service Provider and Service receiver – Registration – Records
– Records – Payment of Tax.
UNIT V – APVAT and CST

a) Introduction of APVAT – Important terms and definitions – Registrations –
Assessment Procedure – Appeals – Revision – Recovery and Refund of Tax.
b) Introduction to CST Act – Objects – Principles determining in the course of Inter
State Sale – Outsied a State – Import and Export – Determination of Turnover –
Rates of Tax.
SUGGESTED READINGS:
1. Vinod K Singhania – Direct Taxes – Taxman’s Publications
2. BB Lal and N Vashisht – Direct Taxes – Pearson
3. V S Date – Indirect Taxes – Taxman;s Publicaiton
4. Andhra Pradesh Valued Added Tax – Ordinance and Rules issued by
Commissioner of Ceommerical taxes – Namplayy, Hyderabad – AP
5. Gaur & Narang – Wealth Tax and CST Act-Kalyani Publishers
6. PS Chandrasekhar – Essays on Central Sales Tax Act – Sai Publications
7. Not Know Services – Taxman’s Publications
BANKING PRINCIPLES
Semester - III
Paper Code 304 BAN Exam. Duration 3 Hours

Objective: To provide basic knowledge on Banking systems and

functions and to help in
understanding all aspects of banking the course is designed
Unit 1.
Indian Financial System
Structure and Characteristics of Banking and Financial Systems,

Classification of Banks. Role and Functions of Commercial Banks in
India
Regulatory provisions/enactments governing Banks - RBI
major Functions. Development Banks and Financial
Institutions in India,
Indian Capital Markets and Regulatory Body, Legislations.
Role and Functions of Mutual Funds, Insurance Companies, IRDA, Bank

assurance. Retail Banking, International Banking
Unit 2.
Functions of Banks
Relationship between Banker and Customer, obligations and rights KYC

Norms; Types of Constituents; Deposit Products, and other ancillary
services; Types of Loan Products and its features
Unit-3
Negotiable Instruments Act
Payment and Collection of Cheques, Duties and Responsibilities of
paying and Collecting Banker, Endorsements and Crossings of
Cheques, Bouncing of Cheques and its implications. Banking Regulation
Act Reserve Bank of India Act..
Unit-4
Banking Technology
Bank Mechanization - Core Banking Solutions - WAN and LAN

systems - On Line systems - Main Frame Networking Systems -
Electronic Payment Systems - Cash Dispensers - ATMs - Anywhere
Anytime Banking - EFT, Plain Messages and Current Trends in
Information Technology.
Unit –5
Reforms in Banking Sector
Social Banking, Nationalization of Banks, Branch Licensing,

Liberalization Policies, Adoption to International Standards, New
Generation Banks, Committees recommendations
References:
1. Banking Theory Law and Practice by Sundharam and Varshney
2. Indian Institute of Banking and Finance- Associate
Examinations Syllabus
3. McDonald: Management of Banking, Thomson, 2007
BANKING PRACTICES & OPERATIONS
Semester - III

Objective: This course is aimed at providing bird's eye view of the

different aspects of bank practices and operations management.
Indeed, a bank is a very important engine of growth and its
mismanagement can lead not only to economic disruptions but have
social repercussions. In the last decade or so, it has been seen that
Banking has increasingly become a knowledge oriented sector rather
than a compliance-related activity.
Unit-1:Fund Management:
Managing the cost of Funds - Bank capital and Liquidity -

Composition of Bank Liabilities (Small and Large) - Calculating
Transaction Cost and Cost of Funds - Marginal Cost Analysis -
Borrowings from Market.
Risk based Capital Standards - Capital Planning - Bank Capital
Structure - Effect of Capital Requirements on Bank Policies
Objectives of cash management - Legal Reserve Requirements -
Managing Float Money - Liquidity Planning and Measures of Liquidity
Unit-2: Extending Credit to Customers:
- Credit Policy and Loan Charters tics - Credit process - Evaluating

credit requests - Credit analysis and Tools of assessment - Terms and
Conditions; Evaluating Retail Loans - Policy Guidelines - Consumer
Credit Ratings - Loan Pricing - Types of Securities and Charges creation
thereon
Unit-3: Rural Financing and Rural Banking in India:
Understanding Rural psychology - Credit Delivery Mechanisms - Multi

Agency Approach - Rural Development Bank and other Creidt lending
institutions - Schemes for rural lending and evaluation - Govt. Policies -
Micro Finance and Self Help Groups and Mass Banking - Inclusive
Growth - Priorities and practices for Inclusive growth.
Unit-4: International Trade Finance:
Balance of Payments - Commercial Banks Role - Foreign Exchange

Transactions and Rates - Financing Foreign Trade - Forward Exchange
Markets - Exchange Controls - International Trade Terms and
Agreements.
Unit-5: Marketing of Bank Products:
Marketing Management-Meaning, Importance and Functions-Marketing

of Services Planning, Product Research & Development-Testing,
Product Life Cycle, Modifications, New Product Development,
Elimination, Branding
Pricing-Objectives, Strategies and Methods, Factors influencing and
Pricing Decisions Distribution, Factors influencing, Direct & Indirect
Channels, Channel Functions and Services - Promotion, Promotion
Mix and Role of Promotion in Marketing, MIS; Case Studies on
Certain Bank Products.
References:
1. Peter Rose: Commercial Bank Management, Irwin Mc Graw Hill

2. McDonald: Management of Banking, Thomson 2007
3. T. Ravi Kumar: Asset-Liability Management, ICFAI Publication.
Course material of Indian Institute of Banking.
RISK MANAGEMENT IN BANKING
Semester - IV

Objective:
The fundamental objective of Banks is to minimize risk and maximize the returns for
improving the shareholders wealth and also focusing on sustained development. The
objective of this coyurse is to expose the students to identify, assess, monitor and control
risks associated with the financial institutions, in particular Banks.
Unit- 1: Asset Liability Management (ALM):
Introduction – ALM – Meaning – Significance – Objectives; Analyzing Bank

performance using the Asset Liability Management Techniques – Components of Bank’s
financial Statements – Balance Sheet – Relationship between the Balance sheet and the
Income statements – Return on Equity – Banking Risks and Returns (Profitability,
Liquidity, Solvency, Trade-Off) – Credit Risk – CAMEL Ratings and Financial
Statement Manipulation – Asset Liability Management (ALM) implementation.
Unit-2: Alternative Models of Bank Performance
A critique of Traditional GAAP – Basel Performance Measures – Line of Business

Profitability Analysis, Management of Market Risk and Non-interest Income and No
Interest Expenses; Peer Group Comparison – Total Operative Revenues – Stock Market
Risk Performance – Customer focused Performance.
Unit-3: Managing Interest Rate Risks:

Essentials of Interest Rate Risk – Sources of Interest Rate Risk – Determine of Interest
Rates – Effects of Interest Rate Risk – Measurement of Interest rate risk and the
techniques of interest rate risks measurement – Strategies for controlling interest rate risk
– Controls and supervision of interest rate risk Management – Sound interest rate risk
management practices. Pricing Fixed Income Securities – Features on Securities – GAAP
and Earning Sensitivity – Financial Features – Forward Rates and Agreements.
Unit-4: Treasure Management:
Introduction to Treasury Management – Concepts and Functions – Instruments in the

Markets – Treasury Products – Treasury Risk Management – Controls and Supervision –
Derivative Products – Treasury and Asset-Liability Management.
Unit-5: Capital Management and Profit Planning:
Prudential Norms – Capital Adequacy – Basel II – Asset Classification & Provision

Norms – Profit Planning – Effect of NPA on profitability – Shareholders Value
Maximization and EVA, Profit planning measures to improve performance.
Risk Management Systems in Banks in India.
Systems introduced in India – Basel II Recommendations and RBI guidelines.
Suggested Reading:
1. Dun & Bradstreet: Financial Risk Management, Tata Mcgraw Hill Publishing
Company Limited, New Delhi (2006)
2. Risk Management (for CAIIB), Indian Institute of Banking & Finance, The
Arcade, World Trade Centre, Cuffe Parade, Mumbai-400005
3. Bank Management by Koch Mac Donald – Thomson
4. Indian Banker Journals
5. Indian Institute of Banking and Finance Reading Books
RURAL BANKING
Semester - IV

Objective: This elective paper in Banking is offered to the students to

acquaint them with the structure of rural economy and rural banking,
rural financing and its operations. To equip the students with
necessary knowledge about the emergence and the growth of micro-
finance sector and build their perspective.
UNIT -1: BASIC FRAMEWORK OF RURAL ECONOMY:
Rural economy in India - Form sector and economy - Agriculture

production - Farm technology in India - Adoption of crop technology
and harvest issues - agrarian reforms - Allied activities. Review of
policies and programmes - Five Year Plan priorities for Rural
Development - Committees of Government of India - National Policies
- Economic reforms and the rural credit financing.
UNIT-II: ROLE, STRUCTURE AND PERFORMANCE OF FINANCING
INSTITUTIONS IN RURAL AREAS:
Multi agency approach to rural credit - Multi agency Institutions - Role
of rural credit institutions - Cooperative and Commercial Banks
finance for Agriculture and Rural development - Regional Rural Banks
- Principles guided by Apex Banks - NABARD - Objectives - Functions -
Schemes - Role of NABARD in Institutional support for Rural
Development - Techniques of lending in Agriculture - Role of Banks in
implementing Development Programmes - Issues - Problems.
UNIT-III: TECHNO-ECONOMIC-FINANCIAL FEASIBILITY OF RURAL
SCHEMES OF FINANCE
Techno-Economic-Financial Feasibility Of Few Schemes Of Finance -

Farm sector - Non-farm sector - Rural Housing - Employment oriented
programmes - Ancillary activities financing - Agriculture Insurance -
The need - Crop Insurance - National crop Insurance scheme -
Significance of cattle Insurance - Other Rural Insurance schemes .
UNIT-IV: MICRO-CREDIT FINANCE
Emergency and growth of Micro-finance delivery at global level - Best

practices of micro-credit finance at global level - Emergency and
growth of micro-finance sector in India - Best practices of micro
finance delivery in India - Regulatory and legal framework of micro
finance institutions - Micro-credit financing Institutions - Product
(loan) designing of Micro-finance Institutions and interest rate
calculation - Emerging issues and challenges.
UNIT-V: SELF-HELP GROUPS (SHGS) AND MICRO-CREDIT FINANCE:

Self-Help Groups(SHGs) Evolution - Objectives - RBI Support Policy -
Models of Linkage - Credit records and information system for SHGs -
Organization and development of SHGs (Organisational development,
group dynamics, team building, leadership, leadership and micro
dialogue communication skills at SHGs level) - Significance of Micro-
credit finance for SHGs - Procedure for loan
documentation,disbursement,post-sanction supervision and follow up -
Key Issues - Comparative study, specially from third world countries.
References:
1. Patel shah, Vimalo: Rural Economy; Himalaya Publishing
House;
2. U.C.Patnaik, R.N.Mishra: Rural Banking in India, Anmol
Publication, New Delhi.
3. Khemani and Dr. B. Yerram Raju: How and Why of Rural
Banks;
4. Other publications: NABARD publications, Bank Journals, IIB
Journals, Yojana.
5. Karmakar, K.G: Rural credit and self help groups: Micro
finance needs and concepts in India; Sage publications
India Pvt. Ltd. ,
6. Mahajan, Vijay and Bharti Gupta Ramola: Financial services
for rural poor in India: Access and sustainability(Journal ,of
International Development,8(2),pp.211-224.
7. www.microjournal.com
8. www.microfinance.com
9. www.mfc.oW.pl
10. www.gdrc.org/icm
PRINCIPLES OF INSURANCE
Semester - III
Paper Code 304 INS Exam. Duration 3 Hours

Objective: To introduce the basic principles of insurance. It provides the understanding of

concepts, conventions and principles of Insurance. It enables the student to understand the
Insurance business in general.
UNIT - I: The concept of risk - Kinds and classification of risks - Assessment -

Transfer;The concept of Insurance - Classification of Insurance - Types of Life
Insurance - Pure and Terms - Types of General Insurance, Fire, Marine, Motor,
Engineering, Aviation and Agricultural - Insurance of Property, pecuniary interest,
liability and person.
UNIT - II: Basic principles of Insurance - Utmost Good faith - Insurable Interest -
Material facts - Indemnity - Proximate Cause.
Economic principles of Insurance - Sharing - Subrogation - Contribution;
Role of Insurance in the national economy; Current marketing structure and internal
markets.
UNIT - III: Legal principles of Insurance - The Indian Contract Act 1872 - Insurance
Interest - Nomination and assignment - Utmost good faith - Indemnity - Subrogation -
Contribution - Proximate Cause.
Financial principles - Premium funds - Investments - Reserves - Surplus - Valuation
of surplus.
UNIT - IV: Theory of rating - Actuarial principles - Mortality tables - Physical and
moral hazard - Representations - Warranties - Conditions.
UNIT - V: Risk Appraisal - Risk selection - Underwriting
Reinsurance - Introduction - Brief historical background - Nature and functions of re-
insurance - Methods of reinsurance (Major forms: Facultative and Treaty, Facultative
reinsurance - proportional - non-proportional (excess of loss) and Treaty reinsurance.
Suggested Readings:
1. Course Material of Insurance Institute of India, Mumbai.
2. Alka Mittal and S.L.Gupta: Principles of Insurance and Risk Management;

Sultan Chand & Sons.
are assigned for the Viva-Voce examination (Minimum passing marks to be obtained in
Viva-voce are 09). Viva-voce examination is compulsory for all the candidates and they
have to attend the viva-voce as per the schedule announced by the Department.
MANAGEMENT OF LIFE INSURANCE PRODUCTS
Semester - III

UNIT 1:
Life Insurance organization - Important activities - The distribution system - Appointment

of agent - Functions of agents - Remuneration to agents;
Plans of Life Insurance - Need levels - Basic elements - Some popular plans (Limited
payment plan, participating policies, convertible plans, joint life policies, Childrens'
plans, educational annuity plans, variable Insurance plans, riders for the Handicapped,
Miscellaneous.
Annuities - Nature of annuities, types.
UNIT-II:
Group Insurance - Nature of Group Insurance - Types - Group gratuity schemes - Ways
of meeting gratuity liability - Group super-annuation schemes - Other group schemes -
Social security schemes; Other special need plan - Industrial Life Insurance - Salary
saving schemes- Additional Benefits Married Women's Property Act.
UNIT-III:
Application and acceptance - Principle of good faith - Insurable Interest - Prospectus -
Proposal forms and other related documents - Medical examination - Age proof - Special
reports - Specimens of proposal-Medical report.
IRDA Regulations on Management of Life Insurance Services/products.
UNIT-IV:
Policy document and its need - Policy preamble - Schedule - attestation - conditions and
privileges - Alteration - Duplicate policy - Specimen of policy document;
Premium payment Lapse and revival procedure - Premium, surrender values, Non-
forfeiture Options, Revival.
Assignment Nomination Loans, Surrenders, Foreclosure.
UNIT-V:
Policy Claims - Maturity Claims - Survival benefits - Death claims - Claim Concession -
Presumption of Death - Accident benefit and disability benefit - Post-maturity o0tions -
Settlement options - Valuation and surplus.
Re-insurance - Exchange control regulations - Consumer protenction Act - Ombudsman -
Information Technology.
References:
1. Insurance Institute of India (Course material).
2. Treischmann: Risk Management & Insurance, Thomson 2007
3. Alka Mittal and SL Gupta: Principles of Insurance and Risk Management:
Sultan Chand & Sons.
RISK MANAGEMENT IN INSURANCE
Semester - IV

Unit-1:
Introduction to risk management and Insurance - Risk and uncertainty - Risk

perceptions and reactions - Risk analysis and management - Risk Concepts - Types of
risks in Insurance - Kinds and classification of risks - Individual risk and the types of
individual risks - Operational risks - Financial risks - Strategic risks - Risk
Management - Subjective risk - Attitude to, risk - Acceptable risks versus
unacceptable risks - The cost of risks - Handling risks - Role of Insurance brokers in
risk management;
Unit-II:
Risk management and corporate objectives - Risk management policy - Risk

management and functional management; The scope and objectives of risk
management in corporate bodies, nationalized industries, local government and public
utilities - personal risk management.
Unit-III
Risk management steps - Risk management process - Risk management of liability

exposures - Risk management of Public liability exposures - Administration;
Unit-IV:
Risk identification - Losses and causes of loses - Techniques of risk management -
Loss prevention - Loss retention - Loss control (loss prevention and loss reduction) -
Procedure - Insurance - Risk evaluation - Statistical methods and probability concepts
- Decision taking under conditions of risk and uncertainty - Risk avoidance - Risk
reduction and los control - The Factories Act 1948 - Role of Insurance surveyors in
loss prevention - Mutual aid schemes.
Unit-V:
Risk financing - Risk financing options - Risk retention - Risk ransfer; Insurance -
Benefits and limitations - Partial insurances - Captive insurance companies.
Readings:
1. Insurance Institute of India (Course material and books)

2. Treischmann: Risk Management & Insurance, Thomson 2007
3. Alka Mittal: Principles of Insurance and Risk management; Sultan Chand & Sons.
4. Rejda, George,E(2001): Principles of Risk management and Insurance (7tn.
edition), Addison Wesley Longman, Inc. Boston. MS
MANAGEMENT OF GENERAL INSURANCE PRODUCTS
Semester - IV
Paper Code 404 INS Exam. Duration 3

Hours
Objective: To acquaint the students with the knowledge of General Insurance
Products/Schemes/Coverages and the practices and procedures in managing the General
Insurance Coverages. .
UNIT-1 : Insurance Legislation:
The Insurance Act 1938 - General Insurance Business (Nationalisation)Act, 1972 - IRDA
- Amendment of Insurance Act - The Insurance Amendment Act, 2002, Motor Vehicles
Act 1988 - The Inland Steam - Vessels (Amendment)Act 1977 - Marine Insurance Act
1963 - The Carriage of Goods Act by Sea Act 1925 - The Merchant Shipping Act, 1958 -
The Bill of Lading Act 1855 -The Carriage by Air Act 1972 - Workers' Compensation
Act 1923 - Employees State Insurance Act, 1948 - Public Liability Insurance Act, 1991 -
The Indian Stamp Act, 1899 - Marine Claims - Overseas Medical Insurance - Reinsurance
- Consumer Protection Act, 1986 - Insurance Ombudsman.
UNIT-11: The Insurance Market:
Corporate Agents - Broker - Function of Insurance Broker - Tariff Advisory Committee -

Insurance forms - Proposal of Insurance - Cover notes - Motor Vehicles Act, 1988 -
Motor Vehicle Coverage - Fire & Marine Policies and Coverage - Standard policies -
Reinstatement value policies - Declaration policy - Floating policy.
Private Insurance Companies - Insurance intermediaries in overseas market - Comparison
between different products offered by various insurers.
UNIT-111: Policy document in General Insurance

Policy document in General Insurance - Need and format - Policy preamble - Schedule -
Attestation - Conditions and privileges - Alteration - Duplicate policy - Policy renewal
procedure - Premium payment lapse and revival - Assignment - Nomination loans -
Surrenders - Foreclosure.
UNIT-IV: Miscellaneous Coverages

Miscellaneous coverages - Group Policies - Health Insurance - Mediclaim Insurance - Jan
Arogya(Bima)Policy - Cancer Insurance - Universal Health Insurance Policy - Overseas
Medical Policy - Bhavishya Arogya Policy - Burglary Insurance - Money
Policy - Banker's Indemnity policy - Legal liability Insurance - Personal Accident

Insurance - Mediclaim Insurance package policies - Householders Insurance -
Shopkeepers Insurance - Property Insurance - Rural Insurance - Engineering Insurance
Coverages- Marine cargo and Hull Insurance - Baggage policy - Fidelity Guarantee
Insurance - Specialised Insurance - Oil & Gas Insurance - Satellite Insurance.
Rating premium - Tariff Rating - Physical & Moral Hazards - Underwriting of Moral
Hazard - Premium - Agreement in the policy - Declaration policy - Underwriting practice
in India and other important Insurance market Limit of acceptance - Risk Inspection -
Insurer's role in risk management - IRDA Regulation-2002.
UNIT-V: Claims Procedure
Claims procedure - Preliminary procedure - Investigation and assessment - Role of

Surveyors & Loss assessors - Claims documents - Arbitration - Limitation - Settlement
-Loss minimization and salvage - Practices in UK and USA - Investment and accounting
aspects - Unexpired risk reserves.
References:
1. Insurance Institute of India, Mumbai (Course material and books)
2. Alka Mittal and SLGupta: Principles of Insurane and risk Management: Sultan
Chand and sons
3. Luthardt, Constance M. et.al(1999): property and liability insurance principles

(3`d. edition), Insurance Insurance of America, Malvem.
4. Bickelhaupt, D.L.(1983): General Insurance (l lth. edition), Richard D.Irwin,

Inc. Homewood,III.
5. Huebner,S.S., K.Black and R.Cline (1982): Property and Liability insurance

(3`a. edition), Prentice Hall Inc., Eaglewood Cliffs, N.J.

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MASTER OF FINANCE AND CONTROL

Code Name of the Subject PPW Exam Max Marks

101 Cost and Management Accounting 5 3 hours

**Refer Project work guidelines for details

@ Semestet-wise interdisciplinary courses for students other than commerce department:

106 Business Organisation and Management

304 BAN Banking Principles 5 3 hours

304 INS Principles of Insurance 5 3 hours

MASTER OF FINANCE AND CONTROL

COST AND MANAGEMENT ACCOUNTING

Paper Code 101 Exam. Duration 3

UNIT-I : INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING:

Management Accouting – Meaning - Management Accounting its relationship with

Accounting Standards – Concept – Types of Accounting Standards – An overview of

UNIT-II: MARGINAL COSTING, DIFFERENTIAL COSTING AND CVP

Managerial Decision Making – Pricing decisions – Product decision: Profit planning

UNIT-III: RESPONSIBILITY ACCOUNTING AND INFLATION ACCOUNTING:

Responsibility Accounting – Concepts – Steps – Responsibility Centre – Types of

UNIT –IV: FINANCIAL MEASURES OF PERFORMANCE AND CASH FLOW

Introduction – Return On Investment (ROI) – Concept – Uses and Limitations –

Balanced Score Card (BSC) – Concept – Objectives – Perspectives of BSC - Multiple

UNIT V: REPORTING OF FINANCIAL DATA:

Concepts of Financial reporting – Development in Financial reporting : Trueblood Report

1. Sharma RK & Shashi K. Gupta: “Management Accounting” Kalyani Publishers,

MASTER OF FINANCE AND CONTROL

MANAGEMENT AND ORGANISATION BEHAVIOUR

Paper Code 102 Exam. Duration 3 Hours

Unit 1: MANAGEMENT PROCESS AND FUNCTIONS:

Unit III: Motivation, Morale and Culture:

Unit V. Leadership and Change:

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

Paper Code 103 Exam. Duration 3 Hours

Czinkota: Marketing Management, 2e

MASTER OF FINANCE AND CONTROL

Paper Code 104 Exam. Duration 3 Hours

Objectives: 1) To introduce the subject of Financial management; and

UNIT -I: FINANCIAL MANAGEMENT –BASIC CONCEPTS:

Financial Management –Meaning, Goals and Objectives –Functions of a finance manager -

UNIT II: LONG TERM INVESTMENT DECISIONS: CAPITAL BUDGETING:

UNIT - III: RISK ANALYSIS IN CAPITAL BUDGETING AND COST OF

UNIT – IV: FINANCING AND DIVIDEND DECISIOINS

b) Capital structure - meaning - Determinants of Capital Structure' - Optimum Capital Structure

UNIT - V: WORKING CAPITAL MANAGEMENT:

MASTER OF FINANCE AND CONTROL

BUSINESS ENVIRONMENT AND POLICY

Paper Code 105 Exam. Duration 3 Hours

Unit- I: Components of Business Environment

Unit - IV: Foreign Capital

1. Prof. Laxmi Narain - Globalization - liberalization and privatization of public

Paper Code 106 Exam. Duration 3 Hours

MANAGEMENT CONTROL AND INFORMATION SYSTEMS

Paper Code 201 Exam. Duration 3 Hours

Objective of the Course :

Unit-1: Management Control Structure:

Nature of Control – Control in Organizations – Planning and Control Processes –

Unit- II: Management Control Process

Management Control Process – Programming: The Process of Programming – Principal

Budget Preparation – Budget Vs. Forecasts – Types of Budgets(Expensive Budget,

Analyising and reporting of financial performance: Analysis of variances (revenues

Unit-III: INFORMATION SYSTEMS IN ORGANIZATIONS

Information Systems – Organization, Management & Strategy

Unit-IV: Approaches and Types of Information Systems:

Approaches of Information Systems – Technical – Behavioral – Social-technical