BBM-641: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Objective: To Familiarize Students With The Different Investment Avenues And Its Analysis And Managing A Portfolio.
MODULE- I: 8 Hrs
Introduction and scope of the subject, economic meaning and significance of savings, investments, security, portfolio, speculation, gambling, and arbitrage mechanisms. Legal framework of securities market, investors and stock exchanges, Comparison between investment and speculation and its significance in Indian financial system.
MODULE - II 14 Hrs Investment options: company shares, debentures, bonds, convertible securities, hybrid securities, fixed deposits, gilt- edged securities, post office schemes, company and public provident funds, unit trust of India, LIC, real estate, and insurance schemes
Investments attributes: Various investments means available in India, characteristics features of financial instruments, types of financial assets and instruments, risk, return, security, maturity, and optional features. Finance vs. investments- interactive decision elements.
MODULE – III 12 Hrs
Security analysis:
Fundamental –technical-economic analysis of securities. Profile of Indian investors and factors influencing investment decisions, financial positions, tax positions, risk perception and attitude. Introduction to systematic and non-systematic risks.
MODULE - IV:
Security pricing: 14 Hrs
Factors influencing valuation, constant growth modal, equity valuation, dividend capitalization, earnings capitalization, use of P/E ratio, security pricing model.
Securities valuations:
Valuation of fixed income instruments and equities, calculation of return on yield, intrinsic value, Mathematics of financial evaluation, discounting, compounding, annuities, present’
value, and yield calculations. (Simple problems only)
MODULE - V 10 Hrs Security markets:
Features of capital markets and functioning, new issues market, IPO’s, valuation of issues fundamental and technical considerations - role of SEBI.
Stock exchanges: role and importance, trading procedures in securities, and brokers and Jobbers, impact of certain economic indicators on the stock market. Role of SEBI in brief.
MODULE - VI:
Options and futures: 7 Hrs
Options – meaning and salient features, calls and put options, types of derivatives, options price, writer of options, price changes, risks, market structure, options v/s Badla
Futures – meaning, future v/s options, index futures, valuation of index future. Arbitrage, Hedging, topic price index futures, advantages of futures index, duration effect.
MODULE - VII: 10 Hrs Portfolio management;
Meaning, return on portfolio, risk on portfolio, portfolio managers, SEBI guidelines for portfolio managers, portfolio management services.
Portfolio theory - contribution of William Sharpe and Harry Markowitz,- Single index model, capital asset pricing modal and arbitrage pricing theory
BOOKS FOR REFERENCE:
1. Fisher & Jordan, “Investment Management.”
2. Avadhani, Security Analysis and Portfolio Management. VII edition 3. Shalla, Security Analysis and portfolio management.
4. Puneethavathi & Pandian, Security Analysis and Portfolio Management.
5. Prasanna Chandra, Managing Investments.
BBM-642: GLOBAL BUSINESS FINANCE
The objective is to blend sound theoretical knowledge of foreign exchange economics with practical and procedural aspects of banks and other institutions connected with foreign exchange. It also provides understanding of risk
management by banks as well as exporters and importers.
MODULE 1:CHANGING GLOBAL FINANCIAL ENVIRONMENT
Evolution of the International Monetary system, Bimetallism, Classical Gold standard, Interwar period, Bretton woods system, Flexible Exchange rate regime. The current exchange rate agreements, European monetary system, Mexican peso crisis, Fixed Versus Flexible
Exchange rate regime (12 Hours)
MODULE 2: BALANCE OF PAYMENTS
Concept of Balance of payments, Concept and Principles behind compilation of BoP account, Components of BoP and factors affecting them, Importance and Limitations of BoP statistics, Relationship of BoP with other Economic Variables (11 Hours)
MODULE 3:FOREIGN EXCHANGE MARKETS
The structure of the FOREX markets, Functions of Foreign exchange markets, The foreign exchange rates, Arbitrage, The spot market, Cross rates of exchange, Bid-ask spreads, The forward market, The regulations. Derivatives, Foreign currency futures, Foreign currency
options. (14 Hours)
MODULE 4: EXCHANGE RATE DETERMINATION
Interest rate parity, Purchasing power parity, The Fisher effects, Forecasting exchange rates – Efficient market approach, Fundamental approach, Technical approach, Performance of
forecasters (12 Hours)
MODULE 5: EURO CURRENCY MARKETS
Introduction to Euro markets, Euro currency instruments, Determinants of Euro currency rates, Growth of Euro dollar markets, International bond markets, External commercial borrowings, Euro debts, foreign currency convertible bonds, Advantages of Euro bonds, Performance of
Indian Euro issues (12 Hours)
MODULE 6:MANAGING FOREIGN EXCHANGE EXPOSURE
Management of foreign exchange risk, Management of translation Exposure, Management of transaction Exposure, Management of Economic Exposure (14 Hours)
Suggested books:
Madhu Vij, International Financial Management, Excel Books,Second Edition Eun and Resnick, Mc Graw Hill international editions
Allan C.Shapiro, Multinational Finance Management, Prentice Hall, New Delhi, 1995 Apte P.G,International financial Management,TMH,New Delhi,
BBM-643 STRATEGIC FINANCIAL MANAGEMENT
Obiective: To familiarize the students with traditional and modem strategies of financial planning and management of corporate enterprise in the context of globalization.
Module 1:
Financial policy and strategic planning: Formulation of strategies and policies, components of financial strategy, objectives and goals, strategic planning process
5Hrs Module 2:
Financial planning and strategy: Strategic decision Characteristics of Financial Planning, Estimating between strategic planning and financial planning making and planning- Meaning, financial requirements, Linkage
10 Hrs Module 3:
Risk analysis in Capital Budgeting
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Sources of risk, Nature of risk, statsistical techniques for risk analysis - Probability defined, Standard Deviation, co-efficient of variation, Conventional techniques of Risk analysis-payback method, risk adjusted discount rate, Certainity equivalent, Risk adjusted discount rate vs. Certainity equivalent, Sensitivity analysis, Decision Tree analysis.15 Hrs Module 4:
Corporate restructuring, mergers and acquisitions: Corporate restructuring, Types of business combination, Mergers and acquisition trends in India, Motives and merits of M&A, Value creation through M&A, Valuation under M&A: DCF approach, Regulations of M&A in India
10 Hrs Module 5:
Asset based financing-Leasing ,hire purchase and project financing - Leasing: meaning, importance, types, tax considerations, and accounting considerations, Evaluation of lease from the point of Lessor and lessee; lease Vs. Buy decision; Hire Purchase - Meaning and features - Differences between hire purchase and credit sale, hire purchase and Installment sale and leasing. RBI guidelines for hire purchase, problems of hire purchase in India, Project financing, Characteristics of Project financing and financing arrangement for infrastructure projects.
15 Hrs Module 6:
Venture capital., Concept of venture Capital fund- Characteristics - Growth of venture Capital, Differences between venture capital financing and conventional financing Stages of venture capital financing schemes
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legal aspects - working of venture capital funding agencies in India.10 Hrs Module 7:
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
10 Hrs BOOKS FOR REFERENCE:
1. Pandey.I.M, Financial Management, Vikas Publishing house, Ninth edition 2..S.N Maheshwari Financial Management.
3. Sharma and Sashi Gupta, Financial Management
4. Allen.D., An Introduction to strategic financial Management, CIMA/Kogan page, London
BBM 644: ADVANCED MANAGEMENT ACCOUNTING
Objective: to emphasize on application of theoretical knowledge and help managers in decision making.
Module - 1
Marginal Costing And Break Even Analysis - Using P/V Ratio, Effect Of Changes In Cost, Volume And Profit, Overall PN And Composite BEP, Impact Of Key Factors Including Sales Mix, Mergers Of Two Plants / Factories, Cost Difference Point, Cash Break Even Point, Profit Volume Graph, Marginal Costing Vs. Absorption Costing.
10 Hours Module - 2
Short Term Decision Making - Make Vs. Buy Decisions, Decisions Relating To Acceptance And Rejection Of A Special Offer / Order, Selling Price Decisions, Add Or Drop Products, Product Line Decisions, Operate Or Shut Down Decisions, Manufacture V s. Sub-Contract Or Lease Out Decisions, Decisions Based On Incremental Revenue And Differential Cost Approach, Choice Based Alternative.
10 Hours Module 3
Budgeting - Budget And Budgeting, Budgetary Control, Functional Budgets, Master Budget Cash Budget, Flexible Budgets, Projected Balance Sheet, Responsibility Budgeting, Performance Budgeting, Zero Based Budgeting, Responsibility Accounting
5 Hours Module 4
Financial Statement Analysis - Comparative Income Statements Analysis And Common Size, Comparative And Common Size Balance Sheet, Funds Flow Statement, And Cash Flow Statements .
10 Hours Module 5:
Ratio Analysis-Liquidity ratios, Profitability ratios, Turnover ratios, Leverage ratios and Investment Analysis ratios., Construction of P&L account and Balance sheet with the help of ratios.
8 Hours Module 6
Variance Analysis: Material cost variance, Labour cost variance and Overhead cost variance.
5 Hours Module 7
Responsibility Accounting - Introduction, Meaning, and Objectives, Types of Responsibility centers 2 Hours Module 8
Inflation accounting - Meaning, objective, nature and importance, methods
2Hours Module 9
Human Resource Accounting, Meaning, Objective, Nature and importance, methods
3 Hours BOOKS FOR REFERENCE:
I.Khan & Jain, Management Accounting, Mc. Graw Hill 2.I.M Pandey, Management Accounting, Vikas Publishers
3.Homgren, Sundem, Stratton, Introduction to Management Accounting, Pearson Education 4.S.N. Maheshwari, Management Accounting, Sulthan Chand & Sons
5.M.N. Arora, Management Accounting, Himalaya Publishers
BBM-645: INDIRECT TAXES
Objectives: The objective is to gain expert knowledge of the principles of the indirect tax and the relevant rules emerging from leading decided cases.
Central Excise Act, 1944 and the related Rules, and Central Excise Tariff Act. 1985.
MODULE: I 5 hrs
Nature of Excise Duty, legislative history, coverage, levy and collection of excise duties, legal effects of Notifications, Tariff Advises, Trade Notices.
MODULE:II 5 hrs
Registration procedures –Maintenance of records, registers and filing of returns
MODULE: III 5 hrs
Provisions governing manufacture and removal of excisable goods – valuation under the excise rules.
MODULE:IV 5 hrs
:Provisions relating to storage of excisable goods, time and manner of payment of duty and other matters relating to removal of goods.
MODULE:V 5 hrs
Classification of goods under the Central Excise Tariff Act with reference to Rules of Interpretation.
MODULE: VI 5 hrs
Assessment including provisional assessment, self removal procedure,. Payment of duty, and rate of duty, Record based control and production based control
MODULE: VII 4 hrs
Remission of duty on goods used for special industrial purposes – procedure for exports, duty draw back – Provisions relating to CENVAT.
MODULE: VIII 5 hrs
Departmental organizational set up, adjudication and appellate procedures – Offences and Penalties – exemption for small scale industries. Customs Act 1962 and Customs Tarif Act 1975.
MODULE: IX 5 hrs
Principles governing levy of customs duty, types of duty including protective duty, safeguard duty, countervailing duty and anti dumping duty and exemption from customs duties.
MODULE: X 10 hrs
Basic principles of classification of goods and valuation of goods- Customs authorities, appointment of customs ports, warehousing stations – provisions governing conveyance, importation and export of goods, special provisions regarding baggage, goods imported or exported by post, and stores.
MODULE: XI 4 hrs
Detailed procedure in relation to transportation and warehousing – drawback of customs duties paid – Prohibition, search and seizure, adjudication, appellate remedies including prosecution in court of law and allied miscellaneous matters.
MODULE: XII 5 hrs
Service Tax: Meaning, Applicability, Procedure for Registration and Maintenance of records and registers – Payment of Service tax – Liability – Submission of returns – Authorities. .
MODULE: XIII 4 hrs
central sales tax- meaning, applicability, registration, records to be maintained returns to be submitted, meaning of dealers, inter state turnover, definition of turnover, assessment, appeal, and VAT
BOOKS RECOMMENDED
1) Indirect Taxes – V S Datey Taxman Publication
2) Indirect Taxes – Yogendra Bangar & Vandana Bangar 3) Indirect Taxes – Vaideeeshwaran
