MBA-Finance
SECOND YEAR – THIRD SEMESTER
PAPER - XI
STRATEGIC FINANCIAL MANAGEMENT
COURSE
CODE: 37
PAPER CODE:H3010
UNIT - I
Financial Policy and Strategic Planning:
Components of financial strategy; Objectives and
goals; Strategic planning process.
UNIT – II
Investments Decisions under Risk and
Uncertainty: Techniques of investment decision-
risk adjusted discount rate, certainty
equivalent factor, statistical method,
sensitivity analysis and simulation method;
Corporate strategy and high technology
investments.
UNIT – III
Expansion and Financial Restructuring: Mergers
and amalgamations - corporate restructuring,
reasons for merger, legal procedure for merger,
benefits and cost of merger; Determination of
swap ratios; Evaluation of merger proposal;
Corporate and distress restructuring.
UNIT – IV
Leasing: Meaning, importance, types, tax
considerations, and accounting considerations.
Evaluation of lease from the point of view of
lessor and lessee; Lease versus buy decision;
Venture capital: Concept and developments in
India; Process and methods of financing, fiscal
incentives.
UNIT – V
Financing strategy: Hybrid securities namely
convertible and non-convertible debentures, deep
discount bonds, secured premium notes,
convertible preference shares; Option financing,
warrants, convertibles and exchangeable.
REFERENCES:
1. Allen D: An Introduction to strategic
Financial Management, CIMA/Kogan Page, London.
2. Chandra, Prasanna: Financial Management, Tata
McGraw Hill, Delhi.
3. Copeland, T., T Koller and J Murrin:
Valuation: Measuring and Managing the value of
Companies, John Wiley, International Edition,
New York.
4. Copeland, T.E. and J.F Weston: Financial
Theory and Corporate Policy, Addison-Wesley,
New York..
5. Hampton, Jone: Financial Decision Making,
PHI, New Delhi.
PAPER - XII
INDIAN FINANCIAL SYSTEM
COURSE CODE: 37
PAPER CODE:H3020
UNIT - I
Introduction to Indian Financial System -
Financial System: Significance and Definition,
Purpose and Organization, Liberalization of the
Financial System; Savings and Financial
Intermediation- Factors Determining Savings,
Composition of Savings, Financial Liabilities,
Savings Rate in Ninth Plan, Financial
Intermediation; Commercial Banking-Evolution,
Financial Services, Fiduciary Services,
Off-balance Sheet Activities, Analysis of Assets
and Liabilities of Scheduled Commercial Banks;
Reserve Bank of India-Central Banking-
Introduction to Central Banking, Instruments of
Monetary Control, Reserve Bank of India, Public
Debt, Secondary Debt Market, REPO's, Reserve
Requirements, Selective Credit Controls,
Advances to Priority Sector, Supervision System;
Regional Rural Banks- Objectives, RBI
Assistance, Evaluation of RRB's.
UNIT - II
Cooperative Credit- Introduction, Role of RBI,
Organizational Structure, National Bank for
Agriculture and Rural Development (NABARD),
Reforms in Cooperative Credit.
UNIT – III
Non-banking Finance Companies - Introduction,
Definition of Non-banking Finance Company,
Mutual Benefit Finance Companies (MBFC's),
Financial Sector Reform, Liberalization Measures
for NBFC's, Regulations for NBFC's Accepting
Public Deposits, Limits on Acceptance of
Deposits, Size of Non-banking Companies,
Deposits, Distribution of Deposits, Comparison
of NOF and Deposits, Capital Issues by Finance
Companies, FCNR Deposits for NBFC's, Assets of
NBFC's, Investment Norms for NBFC's, Deployment
of Funds, Funds Mismatch of HP/Leasing
Companies.
UNIT IV
Merchant Banking- Introduction, Banking
Commission Report, Merchant Banking in India,
Origin of Merchant Banking Abroad, Regulations
of Merchant Banking, Definition of Merchant
Banker, Prospectus (Filing and Registration),
General Obligations and Responsibilities,
Procedures for Inspection; Mutual Funds-
Introduction, Mutual Funds in India, Types of
Mutual Funds, Return from Mutual Funds, Mutual
Fund Holder's Account, Recommendations of the
Study Group, SEBI's Directives for Mutual Funds,
Private Mutual Funds, Asset Management Company,
Unit Trust of India, Evaluation of Performance
of Mutual Funds, Components of Investment
Performance, Market Timing, Money Market Mutual
Funds, RBI Guidelines.
UNIT - V
Primary Market- Introduction, Instruments,
Debentures, Credit Rating of Debt Instruments,
Preference Shares, Equity Shares, Public Issue
of Securities, Underwriting Public Issues
Through Prospectus, Venture Capital; Secondary
Market: Stock Markets-Introduction, Growth of
Stock Exchanges, Growth Pattern of Listed Stock,
Stock Brokers, Functions of a Stock Exchange,
Trading in Stock Exchanges, Margin Trading,
Regulations Relating to Stock Exchanges,
Surveillance at Stock Exchanges, Forward
Trading, Weaknesses of Badla System, Ban on
Badla, Stock Index Futures, Bombay Stock
Exchange, National Stock exchange, Calcutta
Stock Exchange, Over the Counter Exchange of
India, Depositories; Foreign Investment and its
Regulations- Significance and Role of Foreign
Investments, Non-resident Indians, Report of the
Working Group on Non-resident Indian Investment;
The Indian Fiscal System- Introduction, Finance
Commission, Finance Administration.
REFERENCES:
1. H R Machiraju, Indian Financial System,
Second Edition, Vikas Publishing House Pvt Ltd
2. H R Machiraju, Fiscal Policy of Equitable
Growth, Mac Millan Publications.
3. Eitemen Wilford, The Stock market, McGraw
Hill Co, New Edition.
PAPER - XIII
MANAGEMENT OF FINANCIAL SERVICES
COURSE CODE: 37
PAPER CODE:H3030
UNIT - I
Financial services; Role, concepts, nature and
characteristics; Financial services marketing
versus goods marketing; Services marketing
triangle; Strategic financial services marketing
planning - an overview.
UNIT – II
Marketing Environment: Analysing financial
services marketing environment- macro and micro
components; Understanding financial services
customer; Service quality-GAP model and quality
dimensions.
UNIT – III
Marketing Mix Strategy Development and Project
Planning: Need for expanded marketing mix;
Concept of financial product; Product levels;
Major product decisions - branding and product
mix decisions, customer service strategy;
Product life cycle and new product development;
Innovation, diffusion and adoption.
UNIT – IV
Pricing, Promotion and Distribution Decisions:
Price determination - factors, process and
strategies; Promotion of financial
products-communication process, promotion mix
planning - advertising, personal selling, public
relations and sales promotion; Distribution
strategies and channel alternatives.
UNIT – V
Service Marketing Applications: Marketing,
retention strategies of some special fund and
non-fund based financial services - leasing and
hire purchase services, consumer finance,
insurance and factoring; Mutual funds and credit
cards.
REFERENCES:
1. Auerbach, Robert D: Money, Banking and
Financial Markets, Macmillan Publishing Co.; New
York and Collier MacMillan Publisher; London.
2. Avadhani, V.A: Investment and Securities
Market in India, Himalaya Publishing House;
Bombay.
3. Gosney, John W. and Thomas P. Boehm: Customer
Relationship Essentials, Prentice Hall,
New Delhi.
4. Khan, M.Y: Indian Financial System - Theory
and Practice; Vikas Publishing House; New Delhi.
5. Mishkin, Frederics, S: The Economics of Money
Banking and Financial Markets; HarperCollins
Publisher; New York.
PAPER - XIV
PROJECT FINANCING AND MANAGEMENT
COURSE CODE: 37
PAPER CODE:H3040
UNIT - I
Project - Concept - Classification - Projects
and Developments - External and Internal Causes
of Delay - Avoiding Overruns - Project Assets -
Issues and Problems - Strategic Variables:
Contractual/legal, Engineering/Technology,
Financial and Economical, Post-commissioning
operations, social and human aspects, material
problems - Project Formulation checklist.
UNIT - II
Managing Resources-Phases from Project planning
to project completion:Pre-investment,
investment and operational phase - Capital
Cost-time-value System - Project Feasibility
Studies: Stages - Opportunity Studies: General
and Specific - Prefeasibility Studies:
Functional or support studies - Feasibility
Study - Components of Project Feasibility Study.
UNIT - III
Financial Evaluation of projects under
certainty: Pay Back Method, Average Rate of
Return Method and Net Present Value method -
Project Evaluation under Uncertainty and risk.
UNIT – IV
Appraisal Process - Concept - the methodology
for project evaluation - Commercial vs. National
Profitability: Social Cost Benefit Analysis,
Commercial or financial profitability, Social or
national profitability- International Project
Appraisal.
UNIT- V
Planning, Implementation and Control: Network
Analysis, Techniques, PERT, CPM - Crashing of
Project Network - Resource Levelling and
Resource Allocation, Line of Balance.
REFERENCES
1. Gopalakrishnan,P. and Rama Moorthy,
V.E., PROJECT MANAGEMENT, Mac Millan India
Ltd.', New Delhi.
2. Prasanna Chandra, PROJECTS:PLANNING,
ANALYSIS, SELECTION, IMPLEMENTATION AND REVIEW,
Tata McGraw Hill
3. GoeLB.B., PROJECT
MANAGEMENT-PRINCIPLES & TECHNIQUES, Deep and
Deep Publciations, New Delhi.
4. TriMTOO Series on Project Management.
PAPER - XV
MANAGEMENT ACCOUNTING
COURSE CODE: 37
PAPER CODE:H3050
UNIT - I
Introduction to Accounting: Management
accounting as an area of accounting; Objectives,
nature, and scope of financial accounting, cost
accounting, and management accounting;
Management accounting and managerial decisions;
Management accountant's position, role, and
responsibilities; Accounting Plan and
Responsibility Centres: Meaning and significance
of responsibility accounting; Responsibility
centers - cost centre, profit centre and
investment centre; Problems in transfer pricing;
Objectives and determinants of responsibility
centers.
UNIT – II
Budgeting: Definition of budget; Essentials of
budgeting; Types of budgets -functional, master,
etc.; Fixed and flexible budget; Budgetary
control; Zero-base budgeting; Performance
budgeting; Standard Costing and Variance
Analysis: Standard costing as a control
technique; Setting of standards and their
revision; Variance analysis - meaning and
importance, kinds of variances and their uses
-material, labour and overhead variances;
Disposal of variances; Relevance of variance
analysis to budgeting and standard costing.
UNIT – III
Marginal Costing and Break-even Analysis:
Concept of marginal cost; Marginal costing and
absorption costing; Marginal costing versus
direct costing; cost-volume-profit analysis;
Break-even analysis; Assumptions and practical
applications of break-even-analysis; Decisions
regarding sales-mix, make or buy decisions and
discontinuation of a product line etc.
UNIT - IV
Analysing Financial Statements: Horizontal,
vertical and ratio analyses; Cash flow analysis;
Contemporary Issues in Management Accounting:
Value chain analysis; Activity-based costing;
Quality costing; Target and life cycle costing.
UNIT – V
Reporting to Management: Objectives of
reporting, reporting needs at different
managerial levels; Types of reports, modes of
reporting, reporting at different levels of
management.
REFERENCES:
1. Anthony, Robert: Management
Accounting, Tarapore-wala, Mumbai.
2. Barfield, Jessie, Celly A. Raiborn and
Michael R. Kenney: Cost Accouting; Traditions
and Innovations, South - Western College
Publishing, Cincinnati, Ohio.
3. N. Vinayakam and I.B. Sinha,
Management Accounting – Tools and Techniques,
Himalaya Publishing House, Mumbai.
4. Decoster, Don T. and Elden L. Schater:
Management Accounting: A Decision Emphasis, John
Wiley and Sons Inc., New York.
5. Garrison, Ray H. and Eric W. Noreen:
Management Accounting, Richard D. Irwin,
Chicago.
6. Hansen, Don R. and Maryanne M. Moreen:
Management Accounting, South-western College
Publishing, Cincinnati, Ohio.
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