SYLLABUS. MBA - IInd YEAR FINANCE

Transcription

1 SYLLABUS MBA - IInd YEAR FINANCE

2 Syllabus for M.B.A. (Finance) Paper - I Paper - II Paper - III Paper - IV Security Analysis and Investment Management. Corporate Taxation. Working Capital Management. Infrastructure Financing.

3 Unit - I. Group - II nd Finance Paper - I Security Analysis and Investment Management Nature and Scope of Investment Management What is Investment?, Financial and Economic Meaning of Investment, Investment and Speculation, Investment and Gambling, Why Investments are Important? Factors favourable for Investment, Investment Media, Features of an Investment Programme, The Investment Process. Financial Institutions and markets in INDIA Development of the Financial System in India, Structure of Financial Markets, Financial Institutions, A Critique of the Indian Financial System, New Developments in the Financial System. New issue Market and Stock exchange in INDIA The Relationship of the new issue market and stock exchange, Role of the New Issue market, Mechanics of Floating new Issues, Mechanics of Security Trading in Stock Exchanges, kinds of Trading Activity, Membership rules in Stock Exchange, Listing of Securities, Legal control of stock exchanges in India, Capital issues control. Security Valuation Elements of Investment, Approaches to Investment, Hostorical Developments of Investment Management, Basic Valuation Models, Bonds, Preference Shares, Common Stock. Returns Measurement, Traditional Technique, Holding Period, Yield, Probability Distributions, Statistical Methods. Risk Risk classification, Systematic, Unsystematic risk measurement, Standard Deviation and Variance, Regression Equation, Correlation Coefficient, Co-variance, Investor's Attitude Towards Return and Risk. The Investment Alternatives Investor Classification, Corporate Bonds, Bond Indenture, Features of Bonds, Types, Classification, Convertible Bonds, Evaluation, Analysis of preference shares, Equity Shares, Options, Warrants. Alternative Forms of Investment Government Securities, Types, Prices and Yields, Life Insurance, Kinds of Policies, Procedure for taking a policy, Investment in Units, Objectives of Investment in units, Different unit schemes, New schemes of UTI, Tax Benefits, providen Funds, Post Office Scheme, National Saving Schemes, Post office Savings, Investments in Land, Gold, Silver, Diamonds, Stamps, Antiques. Investor and Intersest Rate Kinds of Interest, Determination of Market Rate Theories, Financial intermediaries and Term Structure, Interest Rates in India. Dividend Policies and the Investor Kinds of Dividends, Dividend Policies, Factors Affecting Dividend Decisions of Firms, Limitations on Dividend payment, Dividend Theories. Investments and Tax Planning Computation of Tax, Liability, Other Taxes, Exemptions, Deductions.

4 Unit - V. Unit - I. Fundamental Analysis Econimic Analysis, Industry Analysis, Company Analysis, Company Financial Statement, Ratio Analysis, Book Value, Market Value of Share, Growth Shares, Income Shares, Analysis of Management. Technical Analysis Assumptions, Dow Theory Charts and Signals, Technical Indicators, Summary. Efficient Market Theory Theory, Weak Form, Semi-Strong Form, Strong Form of Market, Experiments and Analysis of Theory, Comparisons with Fundamental and Technical School of Thought. Portfolio Analysis Computation of Tax, Liability, Other Taxes, Exemptions, Deductions. Portfolio Selection and International diversification Types of Investors, Finding cut off rate, Efficient and Portfolio Selection, Borrowing and Lending Factor and Efficient Frontier, Internal Diversification. Techniques of Portfolio Revision Formula Plans, Constant Rupee Value, constant Ratio, Variable Ratio, Rupee cost Averaging Performance measurements of Managed Portfolio Classification of Investment Companies, Management Performance Evaluation, Sharpe's Index. Treynor's Index, Jensen's Index, Empirical Tests, Mutual Fund.... Paper - II Corporate Taxation Direct Tax Direct Tax Laws A comprehensive study of the Income-tax act, 1961, Wealth-tax act, case laws governing capital and revenue expenditure, deemed income, residence concept. Special Problems Centring on the concept of assesses, registered Firm, Hindu Undivided family, Companies, Association of persons and trust, minors, Cooperatives, non-resident Indias and avoidance of double taxation. Problems covering heads of income Salaries, perquistes, gratuity and retirement benefits, inccome from house property, capital gains, income from other sources, Income from business and profession, problems arising from aggregation of income and set off and carry forward of losses. computation of income and Return of Income Tax, Filing procedure. Tax audit Tax administration appeals, revisions, review, rectification and application to central Board of Direct Taxes. Acquistion Proceedings Principles of valuation of movable and immovable property. Tax incentives and export promotion, deductions under chaper VI, other benefits and tax exemptions. Indirect Tax Indirect Tax Laws, administration and relevant procedures The central Excise including Central Value Added Tax (CENVAT);

5 Unit - V. Unit - I. Unit - V. The Central Sales Tax Act, 1956 (74 of 1956); The Customs Act, 1962 (52 of 1962); and Excise audit. Assessment of Tax payable by the Assess under Indirect Taxes Power of different authorities Impact of Tax on Gatt 94, WTO, Anti Dumping Processing Tariff Commission and other tariff authorities.... Paper - III Working Capital Management Working Capital Management Meaning, Concepts, Classification and Importance of working capital. Excess or Inadequate working capital, tis disadvantages. Objective of working capital. Factors determining working capital requirements, Forecast of working capital requirement Working Capital Financing Financing of working capital Determining the working capital Financing Mix. New Trends in Financing of Working Capital by Banks Dahejia Committee Report Tondon Committee Report Chore Committee Report Marathe Committee Report Chakravarty Committee Report Kannan committee Report Management of Cash Nature of Cash Motives of holding Cash Cash Management Managing cash Flows Determining Optimum Cash Balance Cah Management Models Investment of Surplus Funds Recivables Management Meaning of Recivables. Cost of maintaing Recivables. Factors Influencing Recivables. Meaning, Objects and Dimensions of Recivable Management. Formation and Execution of Credit Policy. Formation and Execution of Collection Policy. Inventory Management Meaning and Nature of Inventory. Purpose and Benefits of Holding Inventory. Risk and cost of Holding Inventory. Inventory Management - Tools, Techniques, Objective and Meaning. Determining Stock levels and safety stocks. EOQ, VED, and ABC Analysis. Inventory Turnover Ratios. Aging schedule of Inventory. Classification, Codification and valuation of Inventories.

6 Paper - IV Infrastructure Financing Unit - I. Unit - V. Planning environment Financial objectives, policies on financing, investments and dividends. Financial forcasting, planning and uncertainties, interest rates, inflation, capital gains and losses exchange control regulation, government credit policies and incentives statistics on production, price indices, labour, capital market based on published statistical data. Internal source, retained earnings, provisions etc, Issues in raising finance, legel form of organisation, provisions of the companies Act, control of capital issues. Short term sources : Trade credit, factoring, Bill of exchange, Bank Loan, Cash credit, overdraft, public deposit, SEBI regulations, primary and Secondary markets. Analysis of operating and financial leverages concept and nature of leverages ooerating risk and financial risk, operating leverages, financial leverage and combined leverage concepts, measures and their interpretations. Operating leverage and Cost volume Profit analysis- Earning Before Interest and Tax (EBIT) and Earning Per Share (EPS), indifference point. Capital Structure theories and Planning Concept of capital structure and its perimeters, Financial structure and capital structure - simple and complex, theories of capital structure - net income approach, net operating income approach, traditional and Miller and Modigliani approaches and their criticism. Factors for capital structure planning; capital structure trend in private and public sectors in India. Cost of Capital Its nature and meaning, relevance of cost of capital in financial decisions computation of specific cost selection of weight, overall cost and marginal cost of capital corporate tax and its impact on cost of capital. Working capital management operating cycle concept, forcasting, working capital regulations; monitoring advance management of different components. working capital management under inflation, new projects working capital management Advanced financial analysis and planning Finacial statement, Financial ratio analysis fund flow and cash flow analysis, leverages, Cost-Volume-Profit analysis, Financial forecasting, inter firm comparision, Financial analysis and aspects inflation. Dividend and retention policies Formulating dividend policy : factors for consideration dividend theories - Walter's model, Gordon's model, residual theory of dividend, Miller and Modigliani hypothesis. Indian position in private and public sector in general.