Mba Financial Management
Mba Financial Management
(FINANCIAL MANAGEMENT)
Semester
(With Effect from the Academic Year 2013-14)
ELIGIBILITY FOR ADMISSION
Candidates who apply for the degree of MBA shall possess the following qualifications.
(b) QUALIFICATION:
Any Degree
The course will be conducted for Two years under Semester pattern.
On completion of two years, the students will be awarded MBA with Respective
Specialisation.
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LIST OF SUBJECTS AND DETAILED SYLLABUS
Students are required to undertake a Research for in a relevant specialization. They must
submit a research report on the relevant specialization guided by the Qualified External
Examiner before the end of IV semester. The maximum mark for the research report is 100. The
SEMESTER I
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UNIT II: Importance of planning – Types of planning – decision making process – Approaches
to decision making – Decision models – Pay off Matrices – Decision trees – Break Even
Analysis.
UNIT III: Departmentation – Span of Control – Delegation – Centralisation and
Decentralisation – Commitees – Line and Staff relationships – Recent trends in organisation
structures.
UNIT IV: Process of Recruitment, Selection, Induction Training – Motivation – Leading –
Leadership styles and qualities – Communication – process and barriers.
UNIT V: Managements control systems – techniques – Types of control.
REFERENCES
1. Bateman Snell, Management: Competing in the new era, McGraw-Hill Irwin, 2002.
2. Chandan J.S., Management Concepts and Strategies, Vikas Publishing House, 2002.
3. Hellriegel, Jackson and Slocum, Management: A Competency-Based Approach, South
Western, 9th edition, 2002.
4. Koontz, Essentials of Management, Tata McGraw-Hill, 5th Edition, 2001.
5. Stephen P. Robbins and David A. Decenzo, Fundamentals of Management, Pearson
Education, Third Edition, 2001.
6. Tim Hannagan, Management Concepts and Practices, Macmillan India Ltd., 1997.
Objectives: To introduce students to framework that are useful for diagnosing problems
involving human behaviour, to increase students understanding of psychological and sociological
phenomenon that regularly occur in organizations. To understand the dynamics of human
organizations and concepts of individual as well as the group level.
UNIT I: Definition, need and importance of organizational behaviour – nature and scope –
frame work – organizational behaviour models.
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UNIT II: Personality – types – factors influencing personality – theories – learning – types of
learners – the learning process – learning theories – organizational behaviour modification.
Attitudes – characteristics – components – formation – measurement. Perceptions – importance –
factors influencing perception – interpersonal perception. Motivation – importance – types –
effects on work behavior.
UNIT III: Organization structure – formation – groups in organizations – influence – group
dynamics – emergence of informal leaders and working norms – group decision making
techniques – interpersonal relations – communication – control.
UNIT IV: Meaning – importance – leadership styles – theories – leaders Vs managers – sources
of power – power centers – power and politics.
UNIT V : Organizational climate – factors affecting organizational climate – importance. Job
satisfaction – determinants – measurements – influence on behavior. Organizational change –
importance – stability Vs change – proactive Vs reactive change – the change process –
resistance to change – managing change. Organizational development – characteristics –
objectives – team building. Organizational effectiveness – perspective – effectiveness Vs
efficiency – approaches – the time dimension – achieving organizational effectiveness.
REFERENCES
Objectives: To familiarize the students with basic Accounting concepts and Conventions, to
make the students understand Financial Statements, to familiarize with the intricacies of
accounting, planning and Management and to make them aware about the tools for decision
making.
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UNIT III: Elements of Cost - Cost Classification - Cost Control & Cost reduction – Methods of
costing - Preparation of cost sheet – Activity based costing.
UNIT IV: Basics of Cost Volume Profit (CVP) analysis – BEP analysis- Application of
marginal costing in decisionmaking - Basic framework of budgeting-Preparation of Master,
flexible and cash budgets- Zero based budgeting
REFERENCES
1. Bhattacharyya, Management Accounting,Pearson,2010
2. Khan,Jain,Management Accounting : Text, Problems and Cases Tata McGraw Hill
3. Kuppapally, Accounting for Managers, Prentice Hall of India,2009
4. Maheswari ,Maheswari Accounting for Management Vikas Publishing 2009
5. Pandikumar, Management Accounting-Theory and Practice, Excel Books 2009
6. Vijayakumar, Accounting for Management,Tata McGraw Hill,2009
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UNIT :Determination of national income – Keynesian perspective - multiplier – accelerator –
business cycle – the role of fiscal policy – Indian fiscal policy and experiences.Demand and
supply of money – money market equilibrium – the role of money - monetary policy – Indian
perspectives.
UNIT IV: Analysis of inflation and unemployment – the role of economic policies – Indian
experiences.
UNIT V: International trade – trade multiplier – linkage model – the role of trade policy –
analysis of performance of Indian economy in external sector.
REFERENCES
1. Geetika, Ghosh, Choudhury, Managerial Economics, Tata McGraw Hill 2009
2. Gupta, G.S. Macroeconomics, Theory and Applications, Tata McGraw-Hill
3. Hirschey, Managerial Economics- An integrative Approach, Cengage,2009
4. Mankar ,Business Economics Macmillan India Ltd 2009
UNIT III TESTING OF HYPOTHESIS - Hypothesis testing: one sample and two samples
tests for means and proportions of large samples (z-test), one sample and two sample tests for
means of small samples (t-test), F-test for two sample standard deviations, Chisquare test for
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single samples standard deviation. Chi-square tests for independence of attributes and goodness
of fit.
UNIT IV NON-PARAMETRIC METHODS - Sign test for paired data. Rank sum test: Mann
– Whitney U test and Kruskal Wallis test. One sample run test, rank correlation.
SEMESTER II
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customer satisfaction, retail stores image, customer perception, distribution, customer
relationship, competitor analysis and related aspects
UNIT V: Online marketing – web based marketing programmes – emerging now trends and
challenges to marketers.
REFERENCES
1. Aakar Day, Kumar, Essential of Marketing Research.
2. Boyd Walker, Marketing Management, McGraw Hill, 2002.
3. Keith Flether, Marketing Management and Information Technology Prentice Hall, 1998
4. Phlip Kortler: Marketing management (Millenium edidtion), Prentice hall of India.
5. Zikmand d’Amico, Marketing South western, Thomson Learning, 2000.
Objectives: Imbibing knowledge about the decisions and decision variables involved in building
the asset side of balance sheet of the firm and developing the analytical skills by associating the
tools and techniques with the situation and to develop skills for interpretation business
information and application of financial theory in corporate investment decisions.
UNIT III: Financial and operating leverage, capital structure, Cost of capital and revaluation,
designing capital structure. Dividend policy, Aspects of dividend policy, practical consideration,
forms of dividend policy, practical considerations, forms of dividends, share splits.
UNIT IV: Principles of working capital: Concepts, need; Determinants, issues and estimation of
working capital, Accounts Receivables Management and factoring, Inventory management, Cash
management, Working capital finance, Trade credit, Bank finance and Commercial paper.
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UNIT V: Indian capital and stock market, New issues market. Long term finance: Shares
debentures and term loans, lease, hire purchase, project financing, venture capital financing.
REFERENCES
1.. Khan M.Y and.Jain P.K, Financial Management, Text, Problems and Cases - Tata
McGraw 2. Pandey I.M , Financial Management, Vikas Publishing House Pvt. Ltd.,
Objectives: To provide the future manager with inputs with a view to Enhancing the
appreciation of the Human Resources function as a potential career option, Understanding the
interface of the Human Resources function with Operations, Marketing, and Finance functions
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2. Venkatapathy R.& Assissi Menacheri, Industrial Relations & Labour Welfare, Adithya
Publications, CBE, 2001.
3. VSP Roa, Human Resource Management : Text and cases, First edition, Excel Books,
UNIT V: Johnson’s Algorithm for job sequencing -Use of Gantt charts, Queuing analysis and
Critical Ratios as methods for job scheduling. work measurement methods (WM) - Time study,
methods-time measurement, Work Sampling, White color measurement and learning curves,
Using WM to increase productivity- PERT / CPM – Drawing the network, computation of
processing time, floats and critical path. Resource leveling techniques.
REFERENCES
1. Paneer Selvam R., Production and Operations Management, Prentice Hall of India.
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2. Sang M Lee and Marc J Schniederjans, Operation Management, All India Publishers
UNIT I: Business Research – Definition and Significance – the research process – Types of
Research –Research questions / Problems – Research objectives – Research hypotheses –
characteristics – Research in an evolutionary perspective – the role of theory in research.
UNIT II: Research Process- Research design – Definition – types of research design –
exploratory and causal researchdesign – Descriptive and experimental design – different types of
experimental design – Validity of findings – internal and external validity – Variables in
Research – Measurement and scaling – Different scales – Construction of instrument – Validity
and Reliability of instrument.
UNIT III: Types of data – Primary Vs Secondary data – Methods of primary data collection –
Survey Vs Observation – Experiments – Construction of questionaire and instrument –
Validation of questionaire – Sampling plan – Sample size – determinants optimal sample size –
sampling techniques – Probability Vs Non–probability sampling methods.
UNIT IV: Data Preparation – editing – Coding –Data entry – Validity of data – Qualitative Vs
Quantitative data analyses – Bivariate and Multivariate statistical techniques – Factor Analysis -
multiple regression and correlation –Application of statistical software for data analysis.
UNIT V Research report – Different types – Contents of report – need of executive summary –
chapterization – contents of chapter – report writing – the role of audience – readability –
comprehension –report format – title of the report – ethics in research – ethical behaviour of
research
REFERENCES
1. Alan Bryman and Emma Bell, Business Research methods, OUP.
2. Cooper and Pamela Business Research methods , Tata Mc Graw Hill, 2006.
3. Uma Sekaran, Research methods for Business, Wiley India, New Delhi, 2006.
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SEMESTER III
PAPER I OPERATIONS RESEARCH
Objectives: To provide a formal quantitative approach to problem solving and an intuition about
situations where such an approach is appropriate, to introduce some widely-used mathematical
models. The understanding of these models will allow the students to communicate with persons
who run them and to evaluate the results they present and to provide a tool that the students can
use to solve management problems.
UNIT II: Transportation models (minimizing and maximizing cases) –Balanced and unbalanced
cases –Initial basic feasible solution by N-W corner rule, least cost and Vogel’s approximation
methods. Check for optimality. Solution by MODI /Stepping stone method. Cases of degeneracy.
Transshipment models.
UNIT III: Solution to pure and mixed integer programming problem by Branch and bound and
cutting plane algorithms. Game theory-Two person zero sum games-saddle point, Dominance
Rule, Convex Linear combination (averages), methods of matrices, graphical and LP solutions.
UNIT IV: Dynamic programming (DP) – Deterministic cases – Maximizing and minimizing
problems. DP techniques for LP problems. Decision making under risk – Decision trees –
Decision making under uncertainty. Application of simulation techniques for decision making.
UNIT V QUEUING THEORY AND REPLACEMENT MODELS -Queuing theory – single
and multi-channel models – Infinite number of customers and infinite calling source.
Replacement models –Individual replacement models (with and without time value of money) –
Group replacement models.
REFERENCES
1. Paneerselvam R., Operations Research, Prentice Hall of India,
2. Toha, “Operations Research”, Tata Mc Graw Hill
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Objectives: The Objective of the course is to enable students have a grasp of various business
strategies in general and functional management areas. It will provide a strategic
orientation in conduct of the business.
UNIT I: Conceptual framework for strategic management, the Concept of Strategy and the
Strategy Formation Process – Stakeholders in business – Vision, Mission and Purpose – Business
definition, Objectives and Goals - Corporate Governance and Social responsibility
UNIT II External Environment - Environmental Threat and Opportunity Profile (ETOP) –
SWOT- Porter’s Five Forces Model-Strategic Groups Competitive Changes during Industry
Evolution- Globalisation and Industry Structure - National Context and Competitive advantage
Resources- Avoiding failures and sustaining competitive advantage-
UNIT III The generic strategic alternatives – Stability, Expansion, Retrenchment and
Combination strategies - Business level strategy- Strategic analysis and choice -OCP - Strategic
Advantage Profile - Corporate Portfolio Analysis - SWOT Analysis - GAP Analysis - Mc
Kinsey's 7s Framework - GE 9 Cell Model - Distinctive competitiveness - Selection of matrix -
Balance Score Card
UNIT IV : The implementation process, Resource allocation, Designing organisational
structure-Designing Strategic Control Systems- Matching structure and control to strategy-
Implementing Strategic change-Politics-Power and Conflict-Techniques of strategic evaluation
& control
UNIT V: Managing Technology and Innovation- Strategic issues for Non Profit organizations-
New Business Models and strategies for Internet Economy
REFERENCES
1. Azhar Kazmi, Strategic Management & Business Policy, Tata McGraw Hill, Third
Edition
2. Thomas L. Wheelen, J.David Hunger and Krish Rangarajan, Strategic Management and
Business policy, Pearson Education., 2006
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An overview of Indian Financial System-Financial Markets-Money Market and Capital
Market-Money Market Instruments-call Money, T-Bills, Commercial Paper, Certificate
of Deposits, Repo and Reverse Repo.-Primary and Secondary Market-Role of
RBI,SEBI.DFHI,SHCI in Financial Markets.
Risks in Banking activities-Credit Risk, Liquidity Risk, Interest Rate Risk, Market Risk,
Exchange Rate Risk and Operational risk-Risk Mitigation Measures. Capital
Management in Banking-Capital Adequacy Norms-Basel II -Three Pillars Overview and
Compliance Requirements.
Role of RBI in ensuring economic growth and Containing Inflation through Commercial
banks - Recent Trends in Banking - Retail Lending and Corporate Banking - Universal
banking-Leasing and Hire purchase - Credit Rating- Home Loans- Mutual fund -
Bancassurance - Resolving customer complaints through Ombudsman.
REFERENCES
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Objectives:
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References
Objectives
• To explain how the costing techniques are useful in the process of managerial
decision-making
• To Understand the role of a cost manager in pricing
• To familiarize the strategic cost management tools and techniques
Unit – I
Cost analysis and Management decisions – Concepts of Cost – Cost information – Cost
behaviour – Cost structure today – Cost Volume Profit Analysis, its application and
limitations – Discussions involving alternative choices – Curvilinear BEP – Cost
indifference point.
Unit – II
Strategic Cost Management Tools and Techniques – Activity Based Costing and Activity
Based Management – Drawbacks of conventional Manufacturing Costing System –
Target Costing - Life Cycle Costing.
Unit – III
Measuring total business unit performance – Financial and non financial – Balanced
Score card and its perspectives. Divisional performance and segment performance
Unit – IV
Cost information for pricing and product planning- Factors Involved in deciding pricing -
Role of BICP –– Role of Product’s cost in pricing – Short term and long term pricing
decisiions – ROI, Cost plus,Marginal cost, Bottom line Pricing - Transfer pricing –
International Transfer Pricing - Governments intervention in pricing.
Unit – V
Total Cost management and Value engineering – Cost control and cost reduction –
Techniniques of cost reduction -- Six sigma and cost manager – Benchmarking
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References
SEMESTER IV
PAPER I : ENTREPRENEURSHIP
Objectives: To enable the students have entrepreneurial motivation by providing the basic
idea of entrepreneurship, business ideas, project writing and new venture creation
UNIT III : Business Idea- Idea generating Techniques- Sources of Product for Business -
Prefeasibility Study - Criteria for Selection of Product - Ownership - Capital - Budgeting
Project Profile Preparation - Matching Entrepreneur with the Project - Feasibility Report
Preparation and Evaluation Criteria- Venture Creation.
UNIT IV: Finance and Human Resource Mobilization Operations Planning - Market and
Channel Selection - Growth Strategies - Product Launching- Role of Venture Capitalists
and Angel Investors in promoting entrepreneurship.
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UNIT V: Monitoring and Evaluation of Business - Preventing Sickness and
Rehabilitation of Business Units- Effective Management of small Business.
REFERENCES
1. Hisrich, Entrepreneurship, Tata McGraw Hill, New Delhi, 2001.
2. Khanka S.S., Entrepreneurial Development, S.Chand and Company Limited
3.Mathew Manimala, Entrepreneurship Theory at the Crossroads, Paradigms & Praxis,
Biztrantra ,2nd Edition ,2005
Objectives:
Unit - II
Unit - III
Unit - IV
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Technical Analysis - Features - Tools for analysis of individual security - Tools for
market analysis - Charts - Dow Theory – Efficient Market Hypothesis - Forms of market
efficiency - Random Walk Theory.
Unit - V
References
Objectives
Unit II
Determination of Futures price: Stock, Commodity and Currency: Cost of carry, Basis, Spot –
Futures parity theorem, Spreads, Forward Vs futures pricing. Future prices vs Expected spot
prices, Expectation hypothesis, Normal backwardation, Contango - Mechanics of trading in
derivatives: Clearing house, SPAN Margin, Marking to Market, Cash Vs Actual delivery,
Regulations.
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Unit III
Option Prices: Factors affecting call & put option prices, Determinants of Option
values/premium, Restriction of option values, Black – Scholes formula, Call option valuation,
Put option valuation, Hedge ratios, Binomial model.,
Unit IV
Option strategies & prices: Protective put, covered call, straddle, Spreads, Collars. Option
valuation: Introduction, Intrinsic and time values- Hedging using Strategies: Protective puts,
protective calls, covered calls, spreads, combinations, delta hedging.
Unit V
Swaps: Swaps-Evolution, Types, Interest rate swap, Designing and valuation, Currency swaps:
designing and valuation, Swap pricing, Credit risk and swap market, Swap variations. Interest
rate futures: Hedging interest rate risk using interest rate futures
References:
1. John Hull, Fundamentals of Futures and Options Markets (7th Edition), Pearson Higher
Education (2010)
2. Options, Futures, and Other Derivatives , (7th Edition), John C Hull, Pearson Higher
Education (2010)
3. NCFM – Derivatives Dealers Module book, National Stock Exchange of India Ltd, 2009
4. NCFM - Options Trading Strategies Module book, National Stock Exchange of India Ltd,
2009
5. Varma A., Derivative and Risk Management (1st Edn.) Tata Mgra Hill
Objectives:
Unit II
Techniques of FSA (Financial Statement Analysis) - Comparison- Intra firm, Inter firm, Inter
period analysis, Regional performance analysis, Cross sectional analysis, Residual method,
Beyond national boundary analysis-merits and limitations-Types of analysis- Comparative,
common-size, trend analysis, Ratio analysis - merits and limitations
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Unit III
Income Statement Analysis - Factors affecting reported income –Classification of income
statement analysis-Barriers and measures to overcome objective income statement analysis-
Revenue and expenses recognition-Techniques used by Management for earning manipulation.
Unit-IV
Balance Sheet Analysis - Asset Reporting - Accounting for Fixed Assets – Accounting for
Liabilities –Off Balance sheet liabilities
Unit- V
Financial Distress And Scams - Need for corporate failure analysis-Stages, Symptoms in FD-
Concepts on sickness, Distress, Failure and insolvency-Factors responsible for FD. Assessing
Bankruptcy status as per Altman’s Model- Corporate(Accounting) scams Enron, World com,
Satyam –Measures taken by SEBI, Companies act to prevent scams after US Soxy Act 2002.
References:
1. Gokul Sinha, Financial Statement analysis, Prentice Hall of India, New Delhi 2009.
2. John J.wild K.R.Subramanyam and Robert F. Halsey, Financial Statement Analysis,
Tata McGraw Hill Publishing company Ltd. New Delhi, 2004.
3. Krishna G. Palepu, Paul M. Healy and victor L. Bernard, Business Analysis and
Valutaion using Financial statements, Cengage Learning India Pvt Ltd., New
Delhi, 2006.
4. Ruzbeh J. Bodhanwala, Understanding and Analyzing Balance Sheets Using
Excel Worksheet, PHI, New Delhi 2009.
5. Stephen H Penman, financial Statement analysis and Security Valuation, Tata
McGraw hill publishing company ltd. New Delhi, 2007.
Objectives: Make the students to understand the interface of the Human Resources
function with Operations, Marketing, and Finance functions and to impart knowledge on
information systems and its relevance to business decisions.
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off-the-job- Management Developments - Performance appraisal in practice.
Managing careers : Career planning and development - Managing promotions and
transfers.
Unit III : Establishing Pay plans : Basics of compensation - factors determining pay
rate - Statutory benefits - non-statutory (voluntary) benefits - Labour relations -
Industrial relation- Discipline administration - grievances handling - managing
dismissals and separation.
UNIT IV: Foundations of Information Systems: A framework for business users -
Roles of Information systems - System concepts - Organisation as a system -
Components of Information Systems - IS Activities - Types of IS-HRIS: Function,
Usage and Application.
UNIT V: DSS: DSS models and software: The decision making process - Structured,
Semi Structured and Unstrcutured problems; Managing Information Technology:
Managing Information Resources and technologies - Security and Ethical Challenges:
IS controls - facility control and procedural control
References
1. Gary Dessler, "Human Resource Management", Seventh edition, Prentice-Hall
of India
2. James A O'Brien, "Management Information Systems", Tata McGraw Hill.
3. VSP Rao, Human Resource Management : Text and cases, First edition, Excel
Books
4. Waman S Jawadekar , "Management Information System Text and cases",
TMH