master of financial management - mfm

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Master of Business Administration - Finance Management (MBA - FM)

MBA (Finance Management) Programme Structure 2019

I Semester

Course code

Course Title Type No. of

hrs Marks Credits

MBAF 131 Financial Accounting and Reporting Core 4 100 4

MBAF 132 Contemporary Management Core 4 100 4

MBAF 133 Managerial Economics Core 4 100 4

MBAF 134 Operations Research models in Finance Core 4 100 4

MBAF 135 Bank Management Core 4 100 4

MBAF 136 Research Methodology Core 4 100 4

MBAF 171 Communication and Soft Skills for Managers SEC 4 Grade 2

MBAF 172 Industry Review Project - - Grade 1

FOC 131 Holistic Education SEC 1 Grade 1

MBAF 151 Financial Markets and Technology for Managers* GE 2 Grade 1

TOTAL 31 600 29

II Semester

Course code

Title Type No. of

hrs Marks Credits

MBAF 231 Strategic Management Core 4 100 4

MBAF 232 Financial Econometrics Core 4 100 4

MBAF 233 Management Accounting and Control Systems Core 4 100 4

MBAF 234 Financial Management Core 4 100 4

MBAF 235 Business Information System Core 4 100 4

MBAF 236 Corporate Law, Governance and Ethics Core 4 100 4

MBAF 271 Micro Soft Excel and VBA SEC 4 Grade 2

MBAF 272 Social Responsibility Project - - Grade 1

FOC 231 Holistic Education SEC 1 Grade 1

MBAF251 Financial Technology and Applications For Managers* GE 2 Grade 1

TOTAL 31 600 29

III Semester

Course code

Title Type No. of

hrs Marks Credits

MBAF 331 Strategic Financial Management Core 4 100 4

MBAF 332 Taxation Law and Planning Core 4 100 4

Electives-Choose any 4

MBAF 343 Security Analysis and Portfolio Management DSE 4 100 4

MBAF 344 Commodity Markets and Derivatives DSE 4 100 4

MBAF 345 Technology in Retail Banking and Insurance DSE 4 100 4

MBAF 346 Time series analysis and Forecasting DSE 4 100 4

Christ (Deemed to be University)-Bangalore

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MBAF 347 Financial Risk Management DSE 4 100 4

MBAF 348 Project Appraisal and Financing DSE 4 100 4

MBAF 371 Internship and Viva Voce - 100 2

MBAF 372 Financial Modeling SEC 4 Grade 2

MBAF 351 Risk Modeling and decision Making* GE 2 Grade 1

Total 30 500 29

IV Semester

Course code

Title Type No. of

hrs Marks Credits

MBAF 441 International Finance Core 4 100 4

MBAF 442 Marketing of Financial Services Core 4 100 4

Electives-Choose any 4

MBAF 443 Bond Market Operations DSE 4 100 4

MBAF 444 Algorithmic trading and Quantitative strategies DSE 4 100 4

MBAF 445 Financial Technology: Fundamentals And Applications DSE 4 100 4

MBAF 446 Corporate Tax planning and Management DSE 4 100 4

MBAF 447 Treasury and Risk Management DSE 4 100 4

MBAF 448 Contemporary trends in Finance DSE 4 100 4

MBAF 481 Project and Viva-Voce - 150 4

MBAF 472 Financial Analytics using R SEC 4 Grade 2

Total

30 950 30

Total 2650 117

Assessment Criteria

Components (Indicative) Marks Weightage Final Marks

Continuous Internal Assessment (CIA)- I

Written assignments Group Task Company analysis Industry Review Review of Literature Simulation Role Play Case Study

20 50% 10

Continuous Internal Assessment (CIA)- II

Mid Term Exam 50 50% 25

Continuous Internal Assessment (CIA)- III

Case Analysis Problem Solving Field Work Micro Presentations Model Building

20 50% 10

Master of Business Administration - Finance Management (MBA – FM) Syllabus 2019

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Simulation Discussion forum Group Discussion Subject Interviews

Attendance 5

End Examination Written (Duration 3 hrs) 100 50% 50

CIA Components (Indicative) Multiple Choice Quiz (10 Marks): This component tests familiarity and understanding the content of the course. Students who regularly attend classes and read the text and other relevant materials will be able to do well in the Quiz. Article Review (10 Marks): The purpose of article review is the active participation in the class and developing analytical and critical thinking on various contemporary topics of the course. This is achieved through looking out for articles related to the assigned topic/areas in library and online research, reading through it and preparing a summary about it for classroom Written Assignments (10 Marks): The objective is to develop writing and research skills of the students. You are required to follow APA format for any referencing. General rubrics for assessing essays will be followed for grading purpose. Micro Presentations: Students are required to make micro presentations on assigned topics on the relevant subjects

Case study: The objective is to impart case analytical skills to students. It is a mandatory component of assessment.

Group Projects (10 Marks): Group projects will involve working with your peers outside of class on a specific project. You will be asked to study an organization and any issues faced by the firms and the probable ways of dealing with it. You have to suggest strategies they can adopt to resolve these issues.

Pattern of Question Paper

SECTION

No of

Questions

to be

Answered

No of

Questions

to be given

Marks for

Each

Question

Total Marks

Section A 7 9 2 14

Section B 5 7 6 30

Section C 3 5 12 36

Section D 1 1 20 20

100


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MBAF131 FINANCIAL ACCOUNTING AND REPORTING

Course Description:

This course introduces students to concepts of financial accounting and reporting compliances of corporate in India and helps focus on learning technical skills required for preparation of financial statements and financial disclosures as per the accounting standards. This course emphasizes on recording business transactions within the accounting and double entry system and provides an understanding of both Indian and international financial reporting regulations, uses and limitation of financial accounting information and current issues in reporting including the integrated reporting concept. Course Objectives:

1. To explain and recognize elements of financial statements and record transactions

using double entry system.

2. To prepare and critically analyze financial statements

3. To apply accounting concepts, techniques and analytical skills at an advanced level

4. To critically reflect on financial reporting and accounting practice from an ethical and

a global perspective, and respect ethical standards

5. To communicate confidently and accurately to a high professional standard and

employ technology effectively for communicating accounting information

6. To synthesize information from academic and professional literature and use

information effectively for independent research, applied problem solving and

management decision making.

7. To demonstrate thorough knowledge of current concepts, frameworks and

techniques in financial accounting.

Course Learning Outcomes: Upon successful completion of this paper, you should be able to

1. Explain and recognize elements of financial statements and record transactions using

double entry system.

2. Prepare and critically analyze financial statements

3. Apply accounting concepts, techniques and analytical skills at an advanced level

4. Critically reflect on financial reporting and accounting practice from an ethical and a

global perspective, and respect ethical standards

5. Communicate confidently and accurately to a high professional standard and

employ technology effectively for communicating accounting information

6. Synthesize information from academic and professional literature and use

information effectively for independent research, applied problem solving and

management decision making.

7. Demonstrate thorough knowledge of current concepts, frameworks and techniques

in financial accounting.

Level of Knowledge: Conceptual and Application No.Hrs: 60

Unit 1 10 Hrs

Introduction to Accounting, different types of businesses, Accounting Principles &Conventions, Ethics in Accounting, Process of Recording Business Transactions, the


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Accounting Equation, transaction analysis, Journalizing a transaction, trail balance, financial reporting framework of firms and companies.

Unit 2 8 hrs

Asset Accounting: sector specific depreciation accounting and Fixed Assets Accounting (including a brief introduction to Impairment), Accounting for current assets-Problems and theory.

Unit 3

IFRS and Ind Accounting Standards 6 hrs

Accounting Standards for Disclosure of accounting policies, Depreciation Accounting, Accounting for Fixed Assets, Contingencies and Events occurring after Balance sheet date, Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies, Intangible Assets, share based payments and earnings per share, Problems and theory.

Unit 4

Accounting and reporting of financial instruments 8 hrs

Meaning, recognition, derecognition and offset, compound financial instruments, Measurement of financial instruments, Hedge accounting, Disclosures. Concepts of book building & Demat shares. Accounting for Employee Share option Scheme (ESOS); Redemption of preference shares and buy back of shares. Issues And Redemption of Debentures; Process of issue of Debentures; Accounting for issue of debentures. Accounting of redemption of debentures including sinking fund (Practical problems).

Unit 5 12hrs

Corporate Financial Reporting

The need for a conceptual framework – Understandability, relevance, reliability and comparability – recognition and measurement – legal versus the commercial view of accounting – alternative models and practices – the concept of faithful representation. Users of Financial Statements; Objectives of Corporate Financial Reporting; Components of Financial Statements; Qualitative Characteristics of Financial Statements; Financial Statements of Limited Companies: Legal Requirement relating to preparation of Financial Statements of Companies (including Schedule VI of the Companies Act); Note to the Accounts and Significant Account Policies and other Financial Reports and the contents of Annual Report. Regulatory requirements relating to the preparation of financial statements – taxation - structure and contents of financial statements presented under IFRS –identifying and reporting the results of discontinued operations – Earnings per share – Preparation of financial statements (Practical problems).

Unit 6

Financial Reporting for Financial institutions 4 hrs

Financial Reporting by Mutual funds, Non-banking finance companies, Merchant bankers, Stock and commodity market intermediaries.

Unit 7

Consolidated Financial Statements of Group Companies, 12 hrs

Concept of a Group, purposes of consolidated financial statements, minority interest, Goodwill , Consolidation procedures - Minority interests, Goodwill, Treatment of pre-acquisition and post-acquisition profit. Consolidation with two or more subsidiaries, consolidation with foreign subsidiaries. Consolidated profit and loss account, balance sheet


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and cash flow statement. Treatment of investment in associates in consolidated financial statements. Treatment of investments in joint ventures in consolidated financial statements.

Essential Readings:

Naryanswamy, R. Financial accounting – A management perspective, (4th ed.). PHI.

Reference books:

1. Ashish K. Bhattacharya : Financial Accounting for Business Managers: Prentice Hall of India Pvt. Ltd. Year of Publication 2016

2. Naryanswamy, R. Financial accounting – A management perspective, (4th ed.). PHI.

3. Financial Accounting and Reporting Collins.B and Mckeith.J

4. Financial Reporting and Analysis (3rd edition) Daniel.W. Collins, W.Bruce Johnson

5. Jain and Narang (2011). Advanced Accounting – II. New Delhi. Kalyani Publishers.

6. R.L.Gupta and Radhaswamy(2010). Advanced Accounting –II, Bangalore. Himalaya Publications.

7. Shukla and Grewal (2009)- Advanced Accountancy. New Delhi. S. Chand Group.

8. T.P.Ghosh, Accounting Standards and Corporate Accounting practices-with special emphasis on International Accounting standards, TaxmannAlied Services private Limited.

9. James A Schweikart (2011) – International Accounting: A Case Approach– McGraw Hill

10. Paul E Holt – International Accounting, Dame Publications6/e

MBAF 132

CONTEMPORARY MANAGEMENT

Course Description

This course introduces students to the development and value business and organizations to the society. Students will examine the dynamics of business decision making and demonstrate the ability to identify, describe and apply the essential business concepts, theories and practices. The relationship among business activities will be studied to determine their interactions with the economic, political, legal, global and social environments.

Learning Outcome

The objective is to enable students to practice, negotiating real world business and also to learn the changes, challenge, new rules & innovations in the contemporary business.

Level of Knowledge: Conceptual and Advanced

Total Hrs: 60

Course Outline

UNIT I 6 hrs

BUSINESS IN A GLOBAL ENVIRONMENT

Level of Knowledge: Conceptual

Business: Blending People, Technology, and Ethical Behavior

The Six Eras in the History of Business, The Colonial Period The Industrial Revolution . The Age of the Industrial Entrepreneur. The Production Era. The Marketing Era The Relationship Era, Managing the Technology Revolution, From Transaction Management to Relationship Management. Strategic Alliances and Partnerships


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Creating Value through Quality and Customer Satisfaction. Competing in a Global Market. Productivity: Key to Global Competitiveness. Developing and Sustaining a World-Class Workforce. Preparing for Changes in the Workforce . Reaping the Benefits of Diversity. A New Type of Manager, Importance of Vision . Importance of Critical, Thinking and Creativity. Ability to Steer Change, UNIT II 5 hrs Achieving Business Success by Demonstrating Ethical Behavior and Social Responsibility Level of Knowledge: Advanced

Concern for Ethical and Societal Issues, Individual Business Ethics, Development of Individual Ethics. On-the-Job Ethical Dilemmas, How Organizations Shape Ethical Conduct Ethical Awareness. Ethical Reasoning. Ethical Action. Ethical Leadership, Controlling Business Behavior through Government Regulation, Acting Responsibly to Satisfy Society Responsibilities to the General Public. Responsibilities to Customers Responsibilities to Employees. Responsibilities to Investors and the Financial Community UNIT III 6 hrs Global Economic Challenges of the 21st Century Level of Knowledge: Conceptual The Shift toward a Global Information Economy. Effect of an Ageing Population, Improving Quality and Customer Service. Maintaining the Competitiveness of the Workforce. Creating a Long-Term Global Strategy. Why Nations Trade International Sources of Factors of Production . Size of the International Marketplace. Major World Markets. Absolute and Comparative Advantage Measuring Trade Between Nations Barriers to International Trade, Social and Cultural Differences. Economic Differences. Political and Legal Differences. Types of Trade Restrictions Reducing Barriers to International Trade, Going Global From Multinational Corporation to Global Business, International Organization Structures . UNIT IV 6 hrs

Starting Your Own Business: The Entrepreneurship Alternative Level of Knowledge: Advanced

What Is an Entrepreneur. Categories of Entrepreneurs. Reasons to Choose Entrepreneurship as a Career Path Being One's Own Boss . Financial Success . Job Security . Quality of Life The Environment for Entrepreneurs. Globalization . Education. Entrepreneurship around the World. The Influence of Entrepreneurs on the Economy Innovation . Job Generation Diversity. Characteristics of Entrepreneurs Vision . High Energy Level . Need to Achieve Self-Confidence and Optimism. Tolerance for Failure. Creativity. Tolerance for Ambiguity . Internal Locus of Control. Starting a New Venture. Selecting a Business Idea . Creating a Business UNIT V Management, Leadership, and the Internal Organization 12 hrs Level of Knowledge: Advanced

What Is Management? The Management Hierarchy . Skills Needed for Managerial Success . Special Skills for Overseas Managers . Managerial Functions The Need for Vision The Importance of Planning. Types of Planning . Planning at Different Organizational Levels . The Strategic Planning Process. Defining the Organization's Mission . Assessing Competitive Position . Setting Objectives for the Organization . Creating Strategies for Competitive Differentiation. Implementation: Turning Strategy into Action . Monitoring


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and Adapting Strategic Plans. Managers as Decision Makers . Programmed and Nonprogrammed Decisions . How Managers Make Decisions Managers as Leaders . Leadership Styles . Which Leadership Style Is. Best?. Corporate Culture Structure in Organizations. Departmentalization . Delegating Work Assignments . Types of Organization Structures . Comparing the Four Types of Organization Structure . Coordination and Control. Change Management. Organizational Climate.

UNIT VI 8 HRS

Human Resource Management and Motivation


Human Resource Management: A Vital Organizational Function

Human Resource Planning. Recruitment and Selection. Finding Qualified Candidates. Selecting and Hiring Employees. Orientation, Training, and Evaluation. Training Programs . Performance Appraisals. Compensation Employee Benefits . Flexible Benefits . Flexible Work. Employee Separation . Downsizing. Outsourcing. Motivating Employees

Maslow's Hierarchy of Needs Theory . Motivating Employees through Job Design. Motivating Employees through Managers' Attitudes. Human Resources Concerns for the 21st Century Demographic Trends. Workforce Trends . Economic Trends . Work/Life Trends

UNIT VII 7 hrs

Improving Performance through Empowerment, Teamwork, and Communication


Empowering Employees Sharing Information. Sharing Decision-Making Authority. Linking Rewards to Company Performance. Teamwork. What Is a Team? Team Characteristics Team Size . Team Roles . Team Diversity. Teamwork in Small Organizations. The Process of Forming Teams . Stages of Team Development . Team Cohesiveness . Team Norms . Team Conflict. Styles of Conflict Resolution The Importance of Effective Communication

UNIT VIII 5 hrs


The Process of Communication . Basic Forms of in Teams. Communication Outside the Organization.Communication Technology Benefits of Communication Technology. Challenges of Communication Technology. International Business Communication

Essential Readings:

Stoner, Freemen, Gilbert Jr, Management, Prentice Hall

References:

1. Stoner, Freemen, Gilbert Jr, Management, Prentice Hall

2. Koontz, Weihrich, Essentials of Management, Mc.Graw Hill

3. S.L Gupta, Anurag Mittal, Dr. Sunil K. Gupta, Case Studies in Management, Wisdom Publications

4. R.K Sharma, Shashi Gupta, Business Management, Kalyani Publishers

5. L.M. Prasad, Principles and Practice of Management, Sulthan Chand publishers

6. Boone and Kurtz, Contemporary Business – Harcourt College Publishers, 2002


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MBAF 133 MANAGERIAL ECONOMICS

Course Description The course provides a foundation to microeconomics and gives an understanding of the basic principles of microeconomics. It also explains analytical tools of economics used to understand business organizations and the dynamics of business. It deals with basic dynamics of the market through the analysis of the economics of consumption and production. Course Objectives:

1. To understand the dynamics of micro economic environment and its implications on business decisions.

2. The objective is to enable students to understand the dynamics of micro economic environment and its implications on business decisions.

3. To evaluate the consumer behavior from economics perspective and its implications on managerial decisions.

4. To forecast the demand and cost analysis of a production and its implications on the revenues of the organization from economic perspectives

5. To apply the economic factors in managerial decision making. Learning Outcome: At the end of the course students will be able to

1. Understand the dynamics of micro economic environment and its implications on business decisions.

2. Evaluate the consumer behavior from economics perspective and its implications on managerial decisions.

3. Forecast the demand and cost analysis of a production and its implications on the revenues of the organization from economic perspectives

4. apply the macro economic factors in managerial decision making. Level of Knowledge: Conceptual and Advanced

Total Hrs - 60 UNIT – I 5hrs Introduction to Managerial Economics – Definition and characteristics – Objectives scope and utility of managerial economics- role and responsibilities – scarcity and economic problem – Economic approaches to economic problem – methodologies of economics- economic models- circular flow- production possibility curve- market equilibrium- economic concepts applied in business analysis UNIT –II 5 hrs Goals of business firms – Profit maximisation goal- Sales maximisation goal- Growth maximisation goal- Managerial utility function- Satisfying behaviour- Long run survival- Managerial utility function- Prevention of potential entry – Social responsibility goal UNIT –III 6hrs Theory of consumer behaviour – Cardinal utility- Law of diminishing marginal utility- Equi-marginal utility- Consumer equilibrium- Indifference curve approach- Income effect and substitution effect- Revealed preference theorem- Consumer sovereignty


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UNIT –IV 7 hrs Demand analysis – individual and market demand- determinants- types- law of demand- exceptions- demand distinctions- elasticity of demand- types – degrees – methods for measuring elasticity – demand forecasting - methods UNIT –V 7 hrs Theory of production – production function with one variable input- law of diminishing returns – production with two variable inputs- law of returns to scale- economies and diseconomies of scale of production UNIT – VI 5 hrs Cost analysis – cost concepts- cost-output relations-breakeven analysis and cost control UNIT –VII 6 hrs Revenue and supply analysis –revenue curves- law of supply- elasticity of supply – factors affecting elasticity of supply UNIT –VIII 4hrs Market structure- perfect competition – monopoly- price discrimination- monopolistic competition- product differentiation- oligopoly- carls- price leadership- price rigidity UNIT – IX 4hrs Pricing policies and methods- factors involved in pricing policy- pricing methods- pricing strategies UNIT –X 6hrs Capital budgeting – classification of expenditures- techniques in capital budgeting, National income analysis – Concepts - methods of measurement- problems in measurements, Business cycles – phases and theories of business cycles Books for References

1. William J Baumol, Economic theory and Operational analysis, Prentice-Hall, New Delhi, 1982 2. Joel Dean, Managerial Economics, Prentice-Hall, 1976. 3. Koutsiannis A, Modern Microeconomics, Macmillan, London, 1973. 4. Stiglitz J., Principles of Microeconomics, Norton Publishers 2nd Edition, 1998. 5. Peterson, HC and W.C. Lewis Managerial Economics, Prentice-Hall of India, New

Delhi. 6. Salvatore Dominique, Managerial Economics in a Globalised Economy, Mc-graw-

Hill, New York. 7. Watson, D.S., Price theory and uses, Scientific Book agency, Calcutta, 1986. 8. Xavier V.K, Pious Thomas and Emmanuel P.J, Managerial Economics, Magi’s

Publications, Bangalore, 2008.

MBAF 134

OPERATIONS RESEARCH MODELS IN FINANCE Course description:

This course is an introduction to mathematical finance and intended to equip students with

basic mathematical knowledge and computational skills need to solve problems related to


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finance. This course lays the foundation for more advanced topics, such as econometrics,

stochastic calculus, and optimal control theory, which makes finance a very exciting subject. The course is designed to familiarize the students with analytical approach through a scientific process. The LPP models help the students to formulate and arrive at optimal solution. They also learn Transportation and Assignment models and Game theory as extension of LPP. For each of these models the optimization techniques are applied. Sequencing problems apply tools for finding optimum sequence and finding idle time of machines or facilities. Networking is a tool for splitting large projects into smaller activities

and then determining critical activities as well as project completion time. This course will

demonstrate how recent advances in optimization modeling, algorithm and software can be

applied to solve practical problems in computational finance. It introduces basic concepts

from continuous time finance and stochastic calculus, from applied optimization, and key

ideas on the structure and functioning of financial markets.

Course objective:

The course aims to familiarize students with basic operations research tools used in modern

finance. It introduces models and computational methods for static and dynamic optimization

problems occurring in finance. Students acquire knowledge on the basic types of optimization

problems, the stress being on the problems suitable for modeling problems coming from the

field of finance. The students get acquainted with the basic mathematical approaches for

solving the above optimization problems and use suitable software packages for solving

practical problems.

1. Cultivate a basic understanding of the optimization methodologies used in financial

decision-making.

2. Understand how to formulate financial optimization programs using the tools of

mathematical Programming.

3. Understand how to select the optimization technique most appropriate for a given

financial Optimization problem.

4. Understand how to use spreadsheets and modeling languages to interface with

optimization Software for solving financial optimization problems.

Learning outcome:

At the end of the course students will be able to

1. Describe various problems from the field of finance with a mathematical model.

2. Comprehend knowledge on the basic approaches and software tools for efficient

solving of the acquired optimization problems.

3. Apply tools that support in decision making process using LPP and other resource

optimization techniques and sequence planning operations in an organizations

4. Understand how to use spreadsheets and modeling languages to interface with

optimization Software for solving financial optimization problems.

Level of Knowledge: Conceptual and Application Total Hrs: 60

Unit 1: Basics of Operations Research: 07 hrs


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Development of OR, Definitions, Characteristics, Phases of OR study, OR Models.

Optimization problems, Optimization with data uncertainty, Introduction to financial

mathematics& computational mathematics.

Unit 2: Linear programming & Nonlinear Programming: 15 hrs

Introduction, requirements and assumptions of LPP, Graphical method, Simplex method,

interior point methods, software packages for practical problem solving. Linear models in

finance: the basic theorem of asset pricing, the pricing of financial derivatives in the

arbitrage-free setting, use of linear programming for data classification.Basic numerical

methods in nonlinear programming,applied models (logistics regression/classification),

unconstrained problems, convex optimization, inequality constraints.

Unit 3: Quadratic programming & Conic optimization: 10 hrs

Condition for optimality, duality, interior point methods, software packages for practical

problem solving. Financial models: various methods for creating and managing a portfolio,

maximization of the Sharpe's ratio, mean-variance optimization, Introduction to conic

optimization: minimal risk arbitrage, covariant matrix approximation, Second-order cone

programming, Semi definite programming, tracking error and volatility constraints, arbitrage

bounds forforward start options.

Unit 4: Stochastic programming: 10 hrs

Use of stochastic models, modeling with uncertanity, methods for solving various stochastic

prgramming problems. Examples in finance: portfolio building and management, risk averse

optimization.

Unit 5: Integer programming &Dynamic programming: 10 hrs

Modeling logical conditions, Solving mixed integer linear programs, constructing an index

fund, dynamic programming in discrete and continuous time, continuous state space, optimal

control. Examples in financial models: dynamic portfolio analysis, optimal stopping problem

Unit 6: Game Theory: 08 hrs

Competitive games, Rules of game theory, Saddle point, Reduce game by Dominance, Solve

for mixed strategies (2x2, 2xn,mx2,3x3 games),Two person Zero sum game N person zero

sum game

Recommended Book:

Gerard Corneujols and Reha Tutuncu. “Optimization Methods in Finance”,

Cambridge University Press, 1st Edition, 2007

Reference Books:

1. D. P. Bertsekas, Dynamic programming and optimal control, Athena Scientific, 2005.

2. V. Chvátal: Linear Programming, Freeman, New York, 1983.

3. G. Cornuejols, R. Tütüncü: Optimization Methods in Finance, Cambridge Univ.

Press, Cambridge, 2007.

4. Shapiro, D. Dentscheva, A. Ruszczynski: Lectures on Stochastic Programming:

Modeling and Theory, MPS/SIAM Series on Optimization 9, SIAM, 2009.


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5. S. Zenios: Financial Optimization, Cambridge Univ. Press, Cambridge, 1996.

6. Optimization in Finance by Reha Tutunchu

7. Optimization Methods in Finance by Gerard Gornuejols

8. Mathematical Modeling and Optimization with Applications in Finance by Soren

Nielsen

MBAF 135

BANK MANAGEMENT

Course Description:

This course familiarizes students with the latest trends in banking and its management. It brings in a broad framework of the banking scenario. The course provides a good understanding on the banking development and innovation. It refers to the innovative products dealt by the banks in the last decade. It also incorporates the contemporary mobile banking, E-banking, security systems and control. It focus on the interface systems and the sound lending practice adopted by a bank. The banking financial management, the information technology part of banking and the adoption of banking application in the international context is dealt with in the last module.

Course Objectives

1. To enable students to understand the general banking scenario in India and abroad.

2. The students will be able to comprehend various aspects in banking and will be updated with all changes happening in the banking sector.

3. To enable students to demonstrate an understanding of the financials of the bank.

4. The student will also acquaint himself with practical banking application and the regulation governing this sector.

Learning Outcome


1. Understand the general banking scenario in India and abroad.

2. Comprehend various aspects in banking and will be updated with all changes happening in the banking sector.

3. Demonstrate an understanding of the financials of the bank.

4. Acquaint himself with practical banking application and the regulation governing this sector.

Level of Knowledge: Conceptual and Operational Total: 60 Hrs

UNIT I 10Hrs

Banking Business Scenario:

Types of banks: Banking functions - Mid & Back Office functions: Risk Management, Asset/Liability Management, support Functions: Marketing of banking services-Customer services in banks-Public relations in banks- The Business Offerings of a Bank: Departmentalization of bank activities-Audit, Finance and control in banks-Banking channels-Payment Banks-Other operational and regulatory trends in the banking sector

UNIT II

Banking Development and Innovation: 9 Hrs


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Electronic fund transfers system: Negotiated Dealing Systems & Securities Settlement Systems – Electronic Money – E Cheque.–Smart banking technologies-Application of AI, Robotics, wearable apps, Internet of things-Latest trends in the delivery channels- National payment corporation of India – Mobile banking-Fintech in banking-Disruptive technologies.Core banking software package-BaNCS, Finacle,Flexcube-Interface with Payment system Network – Structured Financial Messaging system-SWIFT. Contemporary issues in banking techniques UNIT III Development Banking and Central Banking 11Hrs Development banks: Types-key characteristics-Difference between development banking and commercial banking.Reserve Bank of India and it’s control on commercial banks, Impact of Reserve Bank of India’s policies on operations of commercial banks;Money and capital market operation of banks, central banking requirements- Liquidity Adjustment facility - CRR, SLR, REPO, Reverse REPO National Bank for Agriculture and Rural Development, National Housing Bank.Financial inclusion-Business correspondents UNIT IV Insolvency and bankruptcy code 8 Hrs

Rules and Regulations under the Bankruptcy Code (All Rules and Regulations notified under the Code till date. UNIT – V 12 Hrs Banking regulation and requirement

General principle of bank regulation –Requirements licensing and supervision, capital,reserve, corporate governance, financial reporting and disclosures, Capital adequacy – Basel III norms.Law relating to Banking Regulation: Banker’s book Evidence; Recovery of debts due to banks and financial institutions.Anti money laundering and Prevention of money laundering act UNIT – VI International Banking and Compliance 12 Hrs International banks and financial markets –Role of banking institutions – IMF, WB, IDB–London Interbank offered rate(Libor)/London interbank bid rate (Libid)/Europe Interbank offer rate(Euribor)- International commercial bank’s assets -Forms of International lending. Risk Management –securitization – Asset backed securities, Collateralised debt obligations, Credit default swaps.International sanctioning-Trade financing: Documentary letter of credit- Customer due diligence-KYC- Fraud detection and management in banks- Financial intelligence unit Essential Reading:

Hand book of banking Information by N S Toor(2015) RBI Master circulars. Reference Books: 1) Bank financial management - by IIBF ( Indian Institute of Banking and Finance) latest

edition. 2) Advanced Bank Management – by IIBF ( Indian Institute of Banking and Finance)Latest

edition.

3) Agrawal O.P Modern Banking of India. Himalaya Publishers, Latest Revised edition.


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4) Desai Vasant Bank Management. Himalaya Publishers, Latest Revised edition.

5) S. N. Gupta.(2010) 'Banking Law in Theory & Practice'. Universal Law Publishers,5th edition. (edited by R.N Gupta & S. Gupta).

MBAF 136

RESEARCH METHODOLOGY

Course Description

The world of business is fast changing in terms of customer preference, designing new products, customer experience and satisfaction. Management students who are future managers need to know how to source the information that is required for decision making. They need to find if the information is authentic and reliable to take a decision. This course equips students with knowledge and skills involved in the basic research process that will simplify and provide more accuracy to their search of business intelligence. The course gives a blend of research methodology as rigorous process and application of the same in the business situations. The main approach of the course is skill building, where students will get hands-on experience in understanding the problems in a given business scenario, deducing the theory and concepts behind the problem, designing a rigorous and scientific research process, develop measuring instruments, using modern techniques for collecting data, using statistical software for analyzing data, report writing and disseminating findings. The course will also provide basic understanding of quantitative and qualitative data and their importance in decision making, differentiate the cross-sectional and longitudinal data in terms of finance and economics, and the techniques to handle them.

Course Objectives:

1. To provide dasic understanding of quantitative research and develops the goals of the future researchers.

2. To identify the various components of research and to provide a cross discipline perspective on research methodology.

3. To familiarize the students about the different statistical models used for different set of research.

4. To apply the software tools for research and understand their functions in quantitative research towards business operations.

Learning Outcomes:


1. Understand the quantitative research and develop research framework for a defined goal under a given business scenario.

2. Identify the various components of research and to provide a cross discipline perspective on research methodology.

3. Familiarize different statistical models used for different set of research.

4. Use independently the research software’s like SPSS and understand their functions in quantitative research and interpret for business decisions.

Level of Knowledge: Conceptual and Analytical

Course Outline Total Hrs: 60

UNIT: 1 - Research Methodology - An Introduction 8 Hrs



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Meaning of research, Objectives of Research, Significance of Research, Research and Scientific method, Objectivity, Importance of knowing how research is done, Types and Methods of research, research process, Criteria of good research, Limitations of research, Ethics in research.

UNIT: 2 - Research Design 8 Hrs


Meaning of a Research problem, Selecting the problem, Necessity of defining the problem, Techniques involved in defining a problem, Meaning of Research design, Need for Research Design, Basic features of a good design, importance concepts relating to research design, Different Research Designs – Exploratory research Design & Conclusive Research Design: Descriptive Research & Causal Research, Basic Principles of Experimental Designs. Framing Hypothesis and steps in testing hypothesis

UNIT: 3 - Sampling Design 4 Hrs


Introduction, Sampling techniques or methods, Probability sampling techniques: Simple Random Sampling, Systematic Sampling, Stratified Sampling, Cluster Sampling, Non Probability Sampling: Convenient Sampling, Judgment Sampling, Quota Sampling, Snowball Sampling, Sampling Design & Sampling technique, Sample size, sampling & Non-Sampling Errors.

UNIT: 4 – Measurement Scales & Data Collection Methods 8 Hrs


Concept of Measurement, Types of measurement Scales, Collection of Primary Data, Collection of data through Questionnaire, Collection of Data through Schedule, Difference between Questionnaires and Schedules, Guidelines for Constructing Questionnaire/Schedule, Some other methods of primary data collection.

UNIT: 5 – Secondary and qualitative data collection 6 Hrs

Collection of Secondary data, Qualitative data, Selection of appropriate method of data collection.

UNIT: 6 - Statistical Package for Social Sciences - Basics 10 Hrs

Level of Knowledge: analytical

Overview of SPSS for Windows Step by Step Process, Creating & Editing a Data File, Managing Data, Descriptive Summary, Measures of Univariate Data, Measures of Central Tendency - Mean, Median and Mode. Measures of Dispersion - Range, , Mean Deviation, Standard Deviation, Coefficient of variation, Quartile & Percentiles. Coefficients of Skewness and Kurtosis.

UNIT: 7 - Statistical Package for Social Sciences – Advanced 10 Hrs

Level of Knowledge: analytical

Correlation, Factor Analysis, Cluster Analysis, Reliability Analysis, Regression Analysis – Bivariate Regression Probit, Tobit & Logit. Tests for Normality, Chi-Square test for Independence, One-Way ANOVA, Two-Way ANOVA, Non Parametric Methods - Sign test, Mann Whitney U test, Kruskal Wallis test, Kolmograv Smirnov test.

UNIT: 8 - Report Writing 6 Hrs



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Significance of Report Writing, Different steps in Writing Reports, Layout of a Research Report, Types of Reports, Mechanics of Writing a writing a research report, Precautions for writing research reports. APA writing style. Learning Activities Lecture led discussions, Case Studies, Article Review, Classroom Debates/Discussion, and Hands on Analysis, Data Interpretation, Problem Solving, Research Papers and Videos etc. Essential Readings

1. Zikmund W. Business Research Methods. (8th India Edition.). Cengage Learning. New Delhi (2004).

Reference 1. Arora P. N & S. Arora (2009). Statistics for Management, New Delhi. Sultan Chand

Sons Company Limited. 2. Albright, Winston, Zappe (2007). Data Analysis and Decision Making (International

Student ed.). New Delhi. Thomson Publication Press 3. O. P. Krishnaswami & Ranganatham (2011). Methodology of Research in Social

Sciences, New Delhi. Himalaya Publishing House.

MBAF171

COMMUNICATION AND SOFT SKILLS FOR MANAGERS

Course Description Management skill development primarily focuses on developing the essential communication and soft skills which are very essential for the successful managers. The course is driven by activities and is highly effective towards successful managerial career. This course also intends to develop the core skills in the domains of finance with focus on analytical skills on key data for business decisions, simulated trading games, Fundamental and Technical Analysis, use and misuse of markets, finance quiz and excel skills Course Objective

1. To develop the essential skills for successful placement 2. To learn to work in teams 3. To acquire managerial skills for professional success

Learning Outcome At the end of the course students will be able to

1. Demonstrate the effective communication skills for successful placement 2. Be Self-motivated and Work in teams confidently and produce results 3. Apply soft skills in managerial or for professional success.

Total hrs: 60 UNIT 01 Attitude Building 4 hrs

Introduction, The Objectives of the course, Attitude Building, the Need, Importance and ways to develop Positive Attitude UNIT 02 Write yourself 2 hrs Resume writing, Styles, Format, internet resume/ video resume, Cover letter. UNIT 03 Interview 4 hrs Pre-Interview Preparations, During Interview, Post Interview, do’s and don’ts, Dress code and Grooming


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UNIT 04 Time Management 4 hrs Characteristics of Time Management, Myths about TM, Pareto Principle, time wasters, Procrastination, Goal Setting, Delegation UNIT 05 Synergy 2 hrs

Self-perception Inventory of the Team Members, Group Vs Teams, and Attitude required to build Team, 13 C’s of the Team, Types of Dysfunction in a Team, Five Dysfunctions of the Team UNIT 06 Supervisor/Managerial Skills 2 hrs

Fundamentals of Supervision, Your Attitude and Productivity of your Staff, How to Demonstrate Authority, Delegate, Coach, Counsel, deal with Special problems

. UNIT 07 Managerial Mentoring & Creativity 6 hrs

Meaning, functions o Mentors, Manager Vs Mentor, Adapting & Managing a Change, Dimensions of Mentoring, Mentoring Process, Productive Confrontation. Concept, Examples of creativity, Test your creativity, Brain and its functions, How to foster creativity, Meditation and its use in creativity UNIT 08 Personality developments & Leadership 6 hrs

Introduction/Activity, meaning of Personality, Determinants of Personality, Know your Personality - Keirsey’s Temperament Sorter Test, Positive Thinking, How to Build Positive Self-esteem, SWOT analysis, How to handle Adversities. Icebreakers/Activities, concept and need, types of leaders, techniques of acquiring leadership skills UNIT 09 Stress Management 2 hrs

Concept, causes – internal external factors, managing stress - Avoid unnecessary stress, Alter the situation, Adapt to the stressor, Accept the things you can’t change, Make time for fun and relaxation, Adopt a healthy life style, Healthy ways to relax and recharge. UNIT 11 Conflict Management 4 hrs

Meaning, Critical Features of Conflict Management, Types of Conflict, Conflict Resolution Techniques,Conflict and Organisational Culture UNIT – 12 Key Numbers for Business Decision Environment 6 hrs

RBI Bulletin, Economic Survey Data, Annual of Reports of Regulatory bodies, GOI and CPI, IIP,World Bank, SEBI, IRDA,PFRDA, etc…

UNIT- 13 Fundamental &Technical Analysis and Simulated Trading Games 6 hrs

Forex, commodity trading, equity and Debt underlying based trading games. Practical based activities on company analysis – Industry analysis – economic analysis – understanding market movements through technical analysis methods UNIT – 14 Use and Misuse of Markets 4 hrs

Corporate scams, stock market scams, impact on investors and regulatory environment UNIT -15 Accounting, Finance & Taxation skills 6 hrs

Basis of Accounting, Finance & Taxation – using MS Excel for recording and reporting the accounting statements, financial reports and tax statements.


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Reference

1. You Can Win – Shiv Khera

2. The Seven Habits of Highly Effective People, - Stephen Covey

3. The 8th Habit: From Effectiveness to Greatness, - Stephen Covey

4. First Things First, - Stephen Covey

5. The Leader in Me, - Stephen Covey

6. The SPEED of Trust - Stephen Covey

MBAF 151

FINANCIAL MARKETS AND TECHNOLOGY -1 Total hrs 30

Candidates are required to choose any one course from the following, to be pursued under the guidance of a faculty/self-study mode, using online resources and open market certifications.

1. Data Structures and financial application programming

2. R Application for financial decisions

3. Python Programming for financial decisions

4. Info graphics and Data Visualizations

5. Securities Market Certifications

MBAF 231 STRATEGIC MANAGEMENT

Course Description

This course introduces to the strategic decisions for business firms and for individuals in a

changing environment. It discusses about key strategic management issues faced by

managers, consultants, and researchers. The course also provides a comprehensive

and integrated presentation of current strategic management thinking in a clear and succinct

format.

Course Objectives:

1. The objective is to consider implications of strategic decisions for business firms and

for individuals in a changing environment.

2. To study the generation, and dissemination of knowledge about key strategic

management issues to managers, consultants, students, and researchers.

3. The course also provides a comprehensive and integrated presentation of current

strategic management thinking in a clear and succinct format.

Learning Outcome

1. To explain the strategy adopted by the companies in response to environmental changes (Internal & external).

2. To understand the manner in which strategic and competitive advantage is developed.

3. To understand the importance of competencies for business organizations.

4. To explore the tools and technique for strategic analysis to understand different business strategies.

5. To examine how strategic management contributes to effective corporate structuring.

6. To study the importance of leadership in strategic management.


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Total No of Hrs: 60

Unit I 6 hrs

Introduction: Defining strategy, levels at which strategy operates, approaches to strategic

decision making. Strategic management process and intent: Vision, mission and objectives,

Components of mission statement.

Unit II 12 hrs

Environment & Resource Analysis: The organization’s environment, environment

scanning, organizations’ responses to the environment, External and internal environment and

components. Implications of PESTEL Framework on strategy formulation, internal analysis:

Resource based strategy- the resource based view, Resources- capabilities and competencies-

approaches to internal analysis- carrying out SWOT. Value chain analysis, Competitive

analysis: Forces shaping competition in an industry- interpreting the Five force models-

Strategic group, and competitor analysis, BCG Matrix, GE Matrix, usefulness of Industry

analysis.

Unit III 10 hrs

Strategy Formulation & Choice: Corporate level strategy: Introduction- Balanced score

card, Grand strategies, Growth/Expansion, strategy, Diversification Strategy, Stability

strategy, Retrenchment strategy, combination strategy, The concept of corporate

restructuring, The process of restructuring, mergers and acquisition, Takeovers, co operative

strategies, Reasons for strategic alliances, Business Integrations – Vertical and Horizontal

Integration, Risks and costs of strategic alliances, Defensive strategies - Leveraged buyouts.

Unit IV 6 hrs

Business Level Strategies: Business Level Strategies – Cost Leadership Strategy-

Differentiation Strategy, Focused Cost Leadership Strategy Focused Differentiation strategy,

Speed as a Corporate Strategy – First Mover as a Corporate Strategy.

Unit V 8 hrs

Strategy Implementation & Functional Strategies: Issues in strategy implementation,

Activating strategy resource allocation, Strategy-structure relationship, the functional

structure & Divisionalisation, Functional level strategies – Operational, Financial, Marketing

and Human Resource, Balanced Score Card.

Unit VI 8 hrs

Strategic Leadership & Control: Corporate Governance and Strategic management,

Strategic leadership, Corporate Culture and Strategic management, Corporate politics and

power, Personal values and Business ethics, Strategic control, operational control, Evaluation

techniques for operational control, characteristics of an effective control system, Mc Kinsey

7S Framework.

Unit VII 5 hrs

Strategy & Technology Management: Designing a technology strategy, Technology

forecasting and R & D Strategies, Strategies for acquisition and absorption of technology.

Unit VIII 5 hrs

Emerging Issues in Strategic Management: Social audit – Need and importance, difference

between financial and social audit.


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Essential Reading:

Rao, V. S. P., & Krishna, V. H. (2009). Strategic Management: Text and Cases. (5th ed.).

India: Excel Books.

Reference Books:

1. Hill W.L., C., & Jones R., G. (2010). Strategic Management: An Integrated

Approach. (9th ed.). South-Western: Cenage Learning.

2. Fred R David (2011). Strategic Management, Concepts and Cases (13th ed). Prentice

Hall

3. Jay,B.Barney & William S. Hesterly.(2011).Strategic Management & Competitive

Advantage: Concepts & Cases(4th ed.).Prentice Hall

4. Hunger , J. D., & L.Thomas, W. (2000). Strategic Management. (7th ed.). Prentice

Hall.

5. Hitt,M.A., Ireland, R. D., & Hoskisson, R. E. (2007).Strategic Management:

Competitiveness & Globalization(concepts & cases). (7th ed.). Cengage Learning. 6. Alex Miller, Strategic Management, (3rd ed) Irwin Mc Graw Hill

7. Lawrence R.Jauch, William F Glueck, Business Policy and Strategic Management, (5th ed)

Mc Graw Hill International

MBAF 232

FINANCIAL ECONOMETRICS

Course Description

Financial econometrics is the intersection of statistical techniques and financial economics. Financial econometrics provides a set of tools that are useful for modeling financial data and testing beliefs about how markets work and prices are formed. Conversely, new techniques in analyzing financial data can lead to empirical facts inconsistent with existing theories, begging for new models or investment strategies.

Learning Objectives: This course is intended

1. To understand the basics of econometrics.

2. Test the standard asset pricing models and investigate market interdependence (in the mean and variance equations).

3. To Estimate non-linear models and Forecast financial data using econometric techniques and measure their effectiveness.

Learning Outcome:


1. Understand and appreciate basic principles of financial econometrics.

2. Apply the standard asset pricing models and investigate market interdependence (in the mean and variance equations) in real scenarios.

3. Estimate non-linear models and Forecast financial data using econometric techniques and measure their effectiveness.

Level of Knowledge: Conceptual and Operational

Total Hrs: 60

UNIT – I Basics of Econometrics 6hrs


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Nature and Scope of Econometrics - Introduction to what is econometrics and steps taken by an econometrician in carrying out an empirical study. Different data types – cross section, time series and panel data and problems associated with them – examples from Indian context Statistical Concepts - Normal distribution; chi-sq, t- and F-distributions; estimation of parameters; properties of estimators; testing of hypotheses.

UNIT – II Properties of Financial Data 10 hrs

Introduction - First Look at the Data – Prices, Returns, Simple Returns, Log Returns, Excess Returns, Yields, Dividends, Spreads, Financial Distributions, Transactions, - Summary Statistics Univariate, Bivariate - Percentiles and Computing Value-at-Risk - Efficient Markets Hypothesis and Return Predictability, Efficient Market Hypothesis and Variance Ratio Tests, Exercises. - Qualitative Variables - Stock Market Crashes, Day-of-the-week Effects, Event Studies.

UNIT - II Linear Regression Model: 12 hrs

Estimation of model by method of ordinary least squares; properties of estimators; goodness of fit; tests of hypotheses; scaling and units of measurement; confidence intervals- Multiple Linear Regression Model:Estimation of parameters; properties of OLS estimators; goodness of fit - R2 and adjusted R2; partial regression coefficients; testing hypotheses – individual and joint, BLUE property;

UNIT-III Extension of Linear Regression Model: 10 Hrs

Violations of CLRM Assumptions: Consequences, Detection and Remedies - Multicollinearity; heteroscedasticity (WLS, MLE) and serial correlation (GLS). Specification error (omitted variable, inclusion of irrelevant variables).

UNIT-IV Dummy Variables 10 Hrs

Qualitative (dummy) independent variables. Dummy variable trap. Chow test for cross-section data and for time-series data (test structural stability of regression models). Choice of function forms: linear, log-linear, log-log, quadratic functional forms, Box-Cox test.

UNIT-V 12hrs

Modeling With Stationary & Non-Stationarity Variables in Financial Time Series : Introduction – Unit root tests - Deterministic and stochastic trend models-Augmented Dickey Fuller Testing Framework - Univariate Autoregressive Models - Univariate Moving Average Models - Autoregressive-Moving Average Models. – Forecasting Univariate financial Time Series Models- ARIMA Model-Box-Jenkins approach - Forecast Evaluation Statistics.

Essential Reading: D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 5th edition, International Edition.

References: 1. D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 4th


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edition, International Edition, 2009. 2. Christopher Dougherty, Introduction to Econometrics, Oxford University Press, 3rd

edition, Indian Edition, 2007. 3. Jan Kmenta, Elements of Econometrics, Indian Reprint, Khosla Publishing House,

2nd edition, 2008. 4. Stan Hurn, Vance Martin, Peter Phillips and Jun Yu, Financial Econometric Modeling 5. Hamilton, J. D., Time Series Analysis, Princeton University Press, 1994 6. Peijewang “Financial Econometrics: Methods and Models” Rout ledge – Taylor & Francis

Gorup – Vikas Publishing House, Pvt Ltd.

MBAF 233

MANAGEMENT ACCOUNTING & CONTROL SYSTEMS

Course Description Today organizations as open systems where people in different functional areas use resources to perform a variety of activities that result in outputs and outcomes that satisfy stakeholders and realize the organization's objectives, while complying with the law and adhering to ethical principles. Therefore, to ensure that the organization achieves its objectives, management control has to address all its sub-systems. Management control thus has four broad objectives - effectiveness, efficiency, disclosure, and compliance. This subject introduces students to various control system procedure and tools to achieve these management objectives.

Course objective 1. To understand the nature of management accounting and control systems. 2. To facilitate students to comprehend the Management Control Structure in

modern organizations. 3. To understand the concept of transfer pricing, Measuring and Controlling

Assets employed, Cost-Volume Profit analysis and Budget as an Instrument of Control.

4. To impart knowledge on performance variance analysis and targets and performance tracking of organizations.

Learning Outcome: At the end of the course students will be able to

1. Understand and appreciate the concepts of management accounting and control systems.

2. Comprehend the Management Control Structure in modern organizations. 3. Apply the tools of management accounting and interpret the financial

position of a firm 4. Apply transfer pricing, measuring and Controlling Assets employed, Cost-

Volume Profit analysis and Budget as an Instrument of Control in real life business scenarios.

5. Evaluate the performance variance analysis and targets and performance tracking of organizations.

Total Hrs.60 UNIT- I 3 hrs


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Level of Knowledge: Conceptual The Nature of Management Accounting and Control Systems Definition and Concept of Management Control, Sub systems of Management control-Strategic Control, operational control and task control, Functions of management accountant and controller, Impact of changing business environment on management accounting and control systems, Requisites for designing and implementing management control systems. UNIT II 3 Hrs Level of Knowledge: Conceptual Introduction to Cost and Management Accounting Cost Accounting: Concepts of Costs , Classifications and Elements of Cost- Cost Centre and Cost Unit - Methods and Techniques of Costing- Cost Accounting Standards - Installation of a Costing System - Practical Difficulties in Installing a Costing System - Role of Cost Accountant in Decision Making. Management Accounting: Tools and Techniques of Management Accounting - Conflicts in Profit versus Value Maximization Principle, Role of Management Accountant in Decision Making. UNIT III 10 Hrs Level of Knowledge: Conceptual & Application Elements of Cost Control Materials Control – Concept and Techniques, Procurement Procedures and Documentation: Methods of Purchasing; Procedure of Purchases, Stores and Issue of Material; Stock Verification, Methods of Pricing of Material: Accounting and Control of Material Losses, Wastage, Scrap, Spoilage and Defectives, Inventory Control: Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC Analysis ; Stock Verification and Perpetual Inventory. Labour Cost Control - Accounting and Control of Labour Costs, Time Keeping and Time Booking, • Attendance and Payroll Procedures, Time Recording, Overtime and Idle Time, Labour turnover and Remedial Measures, Efficiency Rating Procedures; Remuneration Systems and Incentive Schemes. Direct Expenses and Overheads: Classification and Treatment of Direct and Indirect Expenses, Overheads: Meaning, Nature, Collection and Classification Functional Analysis: Factory, Administration, Selling, Distribution, Research and Development, Behavioural Analysis: Fixed, Variable, Semi variable and Step Cost Allocation, Apportionment, Absorption and Control of Overheads, Preparation of Cost Sheet. UNIT IV 4 Hrs Level of Knowledge: Conceptual & Application Activity Based Costing Meaning, Importance, Characteristics, Elements and Steps involved, ABC vs. Traditional Costing, Uses and Limitations (Practical Problems) UNIT V


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Level of Knowledge: Conceptual & Application

Marginal Costing Decisions and Break Even Analysis 10 hrs

Meaning, Advantages, Limitations and Applications - Breakeven Analysis - Cost-Volume Profit Analysis - P/V Ratio and its Significance – Margin of Safety - Absorption Costing: System of Profit Reporting and Stock Valuation - Income Measurement under Marginal Costing and Absorption Costing. Decision Making - Relevant Cost, - Limiting Factor Analysis, Single Product, Multi Product. Necessity, assumptions using CVP for managerial decision making, sensitivity, profit planning, CVP analysis of multi-product units, CVP analysis in service and non-profit organizations- 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.

UNIT VI 8 hrs

Level of Knowledge: Application

Budget as an Instrument of Control

Formulation and Administration of Budgets - The Importance of Budgets- Budget and Strategy - Steps in Budget Formulation and Administration - Rolling Budgets/Forecasts -

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 (Practicle Problems)

UNIT VII 8 hrs


Variance Analysis- Importance of variance analysis for cost control, Methods of calculating variances: Material cost variance, Materials Price Variance, Materials Usage Variance, Materials Mix Variance, Materials Yield variance, Labour cost variance, Labour rate variance, Labour efficiency variance, Overhead Variances – Manufacturing Overhead Variances, Variable Overhead Variances, Combined-overhead variance-Three Variance Approach and Two-variance Approach.

UNIT VIII 8 hrs


Introduction to Targets and Performance Tracking

Role of Targets - Tracking of Performance - Financial control variables and analysis - 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. Fund flow and cash flow statement analysis.

UNIT- IX 6 hrs

The Management Control Structure


26

Functional and divisionalised organizational structures, Advantages and disadvantages of divisionalised organizations, Organizational Segmentation by responsibility. Responsibility Accounting and Responsibility Centres, Strategic Business units. Management Control through Transfer Pricing: Objectives of Transfer Prices, Requisites of a good Transfer pricing system, Transfer pricing methods, Tax considerations in Transfer Pricing. Measuring and Controlling Assets

employed: Measuring assets employed, Capital Investment decisions, choosing among performance measures – Rate of return of Investment, Economic value added, performance measurement of multinationals. Recommended Text: Ravi M kishore, Cost and Management Accounting , 6th edition,Taxman References 1. R.S. Kaplan & A.A. Atkinson, Advanced Management Accounting PHI. 2. R.N. Anthony and V.Govindarajan, Management Control Systems, Tata McGraw

Hill. 3. B. Banerjee, Financial Policy and Management Accounting, PHI. 4. R.M. Kishore, Advanced Management Accounting, Taxmann Publications. 5. Horngren, Foster and Datar, Cost accounting – A managerial emphasis. 6. B.K. Basu, Lectures in Management Accounting, New Central Book Agency. 7. R.W. Hilton, Managerial Accounting, Tata McGraw Hill. 8. M.N. Kaura, Management Control and Reporting Systems, Sage Publications. 9. C. Drury: Management and Cost Accounting: Thomson Learning.

MBAF 234 FINANCIAL MANAGEMENT Course Description: This course familiarize students with the financial concepts, techniques, tools and decision making in business enterprises. The course provides a working knowledge of the tools and analytical conventions used in the practice of corporate finance. It focuses on Capital Structure decisions, Budgeting and Corporate Financial Modeling. Course Objectives:

1. Introduce to the Corporate financial management principles and practices 2. To familiarize students with cost of capital, capital structure and capital budgeting,

techniques and working capital management to support for managerial decisions. 3. To acquaint students with corporate financial modeling and financial management of

sick unit. Course Learning Outcome: At the end of the course students will be able to

1. Comprehend corporate financial management principles and practices 2. Apply the concepts of cost of capital, capital structure and capital budgeting,

techniques and working capital management to support for managerial decisions. 3. Evaluate the corporate financial positions and financial management of sick unit.

Level of Knowledge: Conceptual and Analytical Total Hrs: 60


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UNIT I 7hrs Level of Knowledge: Conceptual Financial Management: Meaning, nature and scope of finance; financial goal - profit vs. wealth maximization; Investment, Financing and Dividend decisions - Finance functions – organization structure – functions of finance manager in 21st century – Modern role - treasurer and controller. Emerging role of finance managers – Sources of long term finance. UNIT II 7hrs Level of Knowledge: Analytical Value and Return – time preference for money – Future value – single cash flow – annuity – annuity of a future sum(sinking fund) Present value – single cash flow – annuity – uneven cash flow – growing annuity. UNIT III 12 hrs Level of Knowledge: Analytical Capital Budgeting: Nature of investment decisions; Investment evaluation criteria - net present value, internal rate of return, profitability index, payback period, accounting rate of return: NPV and IRR comparison; Capital rationing; Risk analysis in capital budgeting. UNIT IV 12hrs Level of Knowledge: Analytical Cost of Capital: Meaning and significance of cost of capital: Calculation of cost of debt, preference capital, equity capital and retained earnings; Combined cost of capital (weighted); Cost of equity and CAPM; Leverages: Meaning and types of leverages in business – Financial leverage and its impact on EPS – Operating leverage – combined leverage – degree of leverages – working capital leverages – practical use of leverages. UNIT V 10hrs Level of Knowledge: Analytical Capital Structure decisions – Capital Structure & Market value of a firm. Theories of capital structure – NI approach, NOI approach, Modigliani Miller approach, traditional approach. Arbitrage process in capital structure. Planning the capital structure: EBIT and EPS analysis. ROI & ROE analysis. Capital structure policy. UNIT VI 12 hrs Level of Knowledge: Conceptual Working capital Management – concepts of working Capital – Operating and cash conversion cycle – permanent and variable working capital – Determinants of working capital – issues in working capital – Estimating working capital needs – Receivables management – Inventory management – Cash management – Working capital finance. Essential Readings

I.M. Pandey (2011). Financial Management 9/e. Mumbai. Vikas Publicatoins. Reference: 1. Prasanna Chandra (2011). Financial Management 6/e. Mumbai. Tata Mc gra Hill. 2. M.Y. Khan & P.K. Jain (2010). Financial Management 4/e, Mumbai. Tata Mc gra Hill 3. Brearly and Myers (2004). Principle of Corporate Finance-7/e. Mumbai Tata Mc Graw

Hill – 4. Sudhindra Bhat (2011). Advanced Financial Management New Delhi.Excel Books.


28

5. Vanhorne (2010). Financial Management & Policy. New Delhi. Pearson

6. Ashwath Damodaran (2008). Corporate Finance – Theory & Practice – John Wiley.

MBAF 235 BUSINESS INFORMATION SYSTEM Course Description:

The course provides a theoretical base in understanding fundamentals of Business Information

systems, required to run business and decision making. The contents of the subject aim at developing

student’s understanding on information systems and how it works in business decision-making. This

subject also enables students to know the application of BIS in various functional areas and its

application in the business. The course is facilitated by class room lectures, case studies, videos,

studentpresentation and classroom discussions on emerging topics of BIS. Covers latest developments

and security features in BIS.

Learning objective:

1. To analyze the different components of a BIS

2. To categorize and understand the application of different types of BIS

3. To create a high level design of a BIS

4. To compare and contrast different types of system development life cycle (SDLC) for a BIS

Learning outcome:


1. To be able to understand the different components of a BIS and analyze their inter-

connections

2. To be able to recognize several types of BIS in use for running the business and adopt the

most suitable type for their nature of business

3. To create a high level blue print of BIS to meet information requirement to support decision

making.

4. To be able to evaluate different types of SDLC methods

Level of Knowledge: Conceptual and Application

Total Hours: 60

UNIT 1: 4 Hours

Introduction to information system


Introduction, Characteristics and classification of information, What is a System?, Computer based

information systems, Data processing cycle, Technical operation of a CBIS, OLTP and OLAP

UNIT 2: 6Hours

Business information systems


Pyramid structure of BIS, BIS versus data processing, Structure of BIS, Subsystems of BIS,

Components of BIS, Benefits of BIS, Types of BISand Issuesin BIS of a multinational organization

UNIT 3: 6 Hours

The concept of data processing


Database management system, Major challenges in data management, Objectives of DBMS, Database

concepts, Database models, Difference between models, Online and Offline processing, Data ware

Housing, Data Mining, Big data and analytics.


29

UNIT 4: 8 Hours

Strategic Information System Level of Knowledge: Conceptual Knowledge Management Systems, Business value of Knowledge Management, Mobile computing,

Mobile Commerce and Challenges, Business analytics, e-governance, Cloud Computing and Grid

Computing

UNIT 5: 6Hours

Analysis and design of BIS:


Software Engineering, Systems Analysis, Role of Functional Analyst, System Design, Entity

Relationship Diagram, Systems Development life Cycle, Project Management.

UNIT 6: 8Hours

BIS Development & Implementation:


BIS Planning, BIS Selection, BIS Implementation, BIS Migration, Management Challenges, Agile

software development, SCRUM, Lean Development, CMM in IT organizations, BCP and Disaster

Recovery and Business process reengineering.

UNIT 7: 6 Hours

Human resources and financial management Systems


Types of personnel administration data systems, Employee Profile system, Payroll data system,

Accounts payable systems, Accounts receivable system, Core banking system, Digital payment and

analytics

UNIT 8: 6Hours

Marketing and Operations systems


Marketing Information Systems, Customer Relationship Management, Impact of Web and Social

Media on business process, Manufacturing Information Systems –MRP and ERP, Supply Chain

Management, Supplier Relationship Management

UNIT 9: 6Hours

Decision support systems

Level of Knowledge; Conceptual

Introduction, Role of DSS in BIS, Types of Decision systems, Decision Models, Artificial Intelligence

system, Knowledge Based Expert System

UNIT 10: 4Hours

Security in Information Systems


Security challenges in BIS, Cyber Crimes against Individuals, Institution and State, Hacking, Identity

Theft & Fraud, Intellectual property rights and Information Technology Act

Essential Readings:

Effy Oz (2013), Management Information Systems, 6th Edition, Boston, Cengage.

Reference:

1) Girdhar Joshi (2013), Management Information Systems, Chennai. Oxford Higher education

press.

2) C.S.V. Murthy (2017). Management Information Systems. Bangalore. Himalaya Publishing

House


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3) Gordon B Davis, Margrethe H Olson(2014).Management Information Systems Conceptual

Foundations Structure & Development. Mumbai. Tata McGraw Hill Education

4) James A. O'Brien, George M. Marakas, Ramesh Behl. (2017 ). Management Information

Systems 10th Edition, McGraw Hill Education, India.

MBAF236

CORPORATE LAW, GOVERNANCE AND ETHICS

Course description:

Corporate Law and Governance deals with the ways in which a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Evolution of Corporate Governance in India and Abroad gives the background and origin of the concept. This will enhance the awareness of the students on recent mandatory guidelines on corporate law and governance..

Course Objective:

1. To familiarize the students with the concept of Corporate Law and Governance and its regulations in India

2. To create an awareness about need and importance of legal framework and governance in businesses.

3. To educate the students about the Challenges of Corporate Governance in India and to provide an understanding about changing compliance of good corporate governance practices.

4. To impart the knowledge of organizational ethics and comprehend the need for ethics in work place for sustainable growth.

Learning outcome:


1. Comprehend the concept of Corporate Law and Governance and its regulations in India.

2. Understand the legal framework and governance in businesses.

3. Evaluate the challenges of Corporate Governance in India and to provide an understanding about changing compliance of good corporate governance practices.

4. Appreciate the organizational ethics and comprehend the need for ethics in work place for sustainable growth.

Total hrs: 60

UNIT 1: Corporate governance regulations as per Companies act, 2013 10 hrs

Key Highlights of Indian Companies Act 2013 on Management, administration, accounts & audit of companies. Meeting, Power of Tribunal to call AGM, Power of Tribunal to call meetings of members etc. Calling of extraordinary general meeting

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and its procedure. Declaration and payment of dividend, , Investor Education and Protection Fund, Right to dividend, punishment for failure to distribute dividends.. Appointment of Auditors, Removal resignation of auditor and giving special notice, eligibility, qualifications and disqualifications of auditors, remuneration of auditors, powers and duties of auditors and auditing standards.

UNIT: 2.Appointment, qualifications, remuneration of directors & managerial personnel. 6 hrs

Appointment, and selection of directors and independent directors and maintenance of databank of independent directors, allotment of Director Identification Number, Appointment of additional director, alternate director and nominee director, number of directorships, duties of directors, vacation of office of director, resignation of director, removal of directors, registers of directors and key managerial personnel and their shareholding, members right to inspect, punishment.

Appointment of Managing Director and whole time director or manager, overall managerial remuneration and managerial remuneration in case of absence or inadequacy of profits, calculation of profits, recovery of remuneration in certain cases, compensation for loss of office of managing or whole time director, secretarial audit for bigger companies, functions of company secretary.

UNIT 3. Meetings of board and it’s powers. 8 hrs

Meeting of Board, Quorum, passing of resolution by circulation, Audit Committee, Nomination and Remuneration Committee and Stakeholders Committee, Powers of Board, Restrictions on powers of Board, prohibitions and restrictions regarding political contributions, powers of Board & other persons to make contributions to national defense fund etc.Disclosure of interest by director, loans to directors, etc., restrictions on non cash transactions involving directors, Prohibition on forward dealings in securities of company by director or key managerial personnel prohibition on insider trading of securities.

UNIT 4: Evolution of corporate governance in India and abroad. 8 Hrs

Concept of corporate Governance, Evolution-Introduction-Need and Importance- OECD Principles of Corporate Governance- Genesis in India-Development in India. The The Naresh Chandra Committee, Kumar Mangalam Birla committee, The Narayana Murthy Committee, New amendments.

UNIT: 5 Clause 49-Corpoorate Governance 10 Hrs

Board of Directors -Audit Committee-Subsidiary Companies-Disclosures-CEO and CFO Certification-. Suggested List of Items to be Included In the Report on Corporate Governance in the Annual Report of Companies:

1,A brief statement on company’s philosophy on code of corporate governance.- 2.Board of

Directors- 3,.Audit Committee- 4.Remuneration Committee- 5.Shareholders Committee- 6. General Body Meetings-7. Disclosure-.Means of communication- 9.General Shareholder Information. Non-mandatory Requirements: 1.The Board-


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2.Remuneration Committee- 3.Shareholders Rights-4.Audit-Qualifications-5.Training of Board Members -6.Mechanism for evaluating non-executive Board Members-7.Whistle Blower Policy Report on Corporate-Governance-Compliance UNIT: 6. Forensic Accounting and Fraud Prevention 6 Hrs The need for Forensic Accounting and Fraud Prevention, forensic accountant's role in today's economy, include fraud detection and fraud investigation techniques, valuation of closely held businesses and professional practices, lost profits analyses, and various types of litigation support services. UNIT: 7 Board Systems and Procedures 4 hrs Good Boardroom Practice: A Code for Directors and Company Secretaries- Code of Conduct for Board of Directors and Senior Management-Guidelines for Companies.-Wipro – Code of Conduct -Tata Code of Conduct- Infosys Technologies Code of Corporate Governance-Whistle Blower Policy UNIT 8 Business Ethics and CSR 8 hrs Ethics- Meaning and nature of Ethics Meaning of Moral & Ethics. Types of Ethics, Importance of Ethics, Nature of Ethics. Importance of ethics in business. Types of business Ethics-Relation between corporate responsibility & Business ethics. Individual Ethics- Professional ethics. Corporate Ethics- Ethical behavior - Ten Commandments of ethical Behavior Control & audit of ethical behavior. Basic

initiatives in the field of CSR and sustainability. Socially responsible CSR and leadership.

Corporate CSR reports.

Books Recommended:

1. The Companies Act,2013 Taxmann Publications, New Delhi,2013. 2. Sanjeev Aggarwal –Corporate Governance: Concept and Dimensions -Snow

White Publications Pvt.Ltd-2003 Books for Reference:

1. The Companies Act,2013.Vinod Kothari.Lexis Nexis Publications.Gurgaon. 2. Corporate Governance Giles Proctor & Lilian Miles-Cavendish Publishing

Ltd, London 3. Corporate Governance –ICSI-Publications, New Delhi. 4. Corporate Governance: Principles, Policies & Practices –A C Fernand-Pearson

Education, 2009 5. Geoffrey Morse, Companies Act, 2013, Volume 1, Sweet & Maxwell 6. Prakash Pandya, The Companies Act, 2013: Bare Act, Prakash K. Pandya,

2014 Committee Reports: 1. Sir Adrien Committee Report on Corporate Governance 2. Naresh Chandra Committee Recommendations on Corporate Governance 3. Kumar Mangalam Birla Committee Recommendations on


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Corporate Governance

3. Narayan Murthy Committee Recommendations on Corporate Governance

MBAF271

MICRO SOFT EXCEL AND VBA

Total Hrs: 60

Course Description

As the standard for spreadsheet applications, Excel is used worldwide - but it's not always user-friendly. The course introduces Excel basics, worksheet design, formulas and functions, worksheet collaboration and review, charts and graphics, data management, data analysis, and Excel and VBA. It covers the changes in the newest version as well as familiar tasks, such as creating and editing worksheets, setting up formulas, and performing statistical functions.

Course Objectives:

This course acquaints students with the MS Excel application skills and enables them to use these in managerial decisions.

Learning Outcome:

At the end of the course students will be able to effectively use MS Excel application for managerial decisions.

UNIT I 4 Hrs

Basic Excel Calculation

Methods & shortcuts to Open Excel - Basic Excel Calculations - Define Ranges to perform Calculations - Absolute and Relative Reference in Excel - Mixed Referencing - Write a 3D Function and How to consolidated- Useful Quick Excel Shortcuts - Shortcut to AutoSum, Copy, Paste - How to repete previous task - Shortcut to Fill Down , Fill Right, How to Insert and Delete Rows & Columns, Show and Hide the ribbon with shortcut keys, Use of ribbon without mouse, How to Customize the shortcuts, How to Customize Ribbon, Paste Special,

Text Functions,

Unit 2 Conditional Formatting 2 Hrs

Use Conditional Formatting to Color Cell based on content, Identify Bottom And Top No.s using Conditional Formatting, Display Data with Data Bar, Use a Formulas to Format the Cell

Unit 3 Rounding Functions 4 Hrs

Int, Trunc, Odd, Even Functions, Round, Roundup, Round Down Functions,

Mround, Ceiling, Floor Functions

Unit 4 Mathematical Functions 4 Hrs

Max, Min, Median, Average, Sum functions, Count, Counta, Countblank, Rank the list with Rank Function, Large and Small Functions, Introduction to IF related functions, Use of SUMIF Function - Part 1, Use of SUMIF Function - Part 2,Use of


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Average IF Function,Use of SumIFs and AverageIFs Functions, Use of Count IF Function,Use of CountIFs Function Unit 5 Database Functions 6 Hrs Introduction of Data Base Functions, Using DSUM, Function for AND Criteria, Using DSUM Function for OR Criteria, Using DGET Function to Find Single Record, Unit 6 Validation and Protections 4 Hrs How to prevent from entering incorrect values, How to Validate Huge range of Values How to Protect the Whole Worksheet with Password, How to keep few cells unprotected while entire worksheet is protected, Document Encryption & Mark as Final Unit 7 Is and Lookup Functions 8 Hrs Introduction to IsNumber, IsError, IsBlank Functions, Use of IF, Match and IsError & IsNumber functions, Simple Use of Choose Function, Use of Choose Function to make Scenario Analysis, Use of Vlookup to extract Record from Table like Data, Advance use of Vlookup, IF, and IsError functions, Use Hlookup function with Match function, Combined Ue of Vlookup and Hlookup with Iferror, How Index Function is much better than Vlookup & Hlookup, Indirect Function- Prepare an Output Sheet UNIT 8 Financial Functions 12 Hrs Use of FV & PV Functions to analyse Investment Returns, Use of FvSchedule function in case of Variable Interest Rates, Effective & Nominal Rates with Effect & Nominal Functions Use of IPMT, PPMT, PMT functions to Prepare Debt Repayment Schedule, Use of CumIPMT and CumPrince Functions UNIT 9 Date and Time Functions 2 Hrs Introduction of Date & Time Functions and Format Convention, How to change default Date and Time Format, Custom Formatting of Dates, Today & Now Functions to Enter current Date and Time, Weekday Function to Indentify the Day of Week, Weekday and Networkday Functions, How to find Age with DatedIF Function, Edate & Eomonth Functions, How to Extract Year, Month, Day from Given Dates, How to use AutoFill to Write Date Series What if Analysis and subtotal - Use of Goal Seek to get a Particular Result, How to summarize data using Sub Total tool, How to use data table for Senstivity Analysis, Scenario Manager for Different Outcome UNIT 10 Charts 4 Hrs Introduction to Chart Elements and Chart Types, How to create first chart and display specific data, Learn to Create Instant Chart , Use Switch & Move Buttons


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,Learn to Change The Default Chart, Give Title, Save As Template, Understanding the use of Legends, Chart Title, Axis, Data Labels, Gridlines etc, How to add an Average to the Chart, How to create Double Axis Chart to display values with huge difference, How to create a Pie Chart

Formatting of Pie Chart & Key Features, Pie To Bar and Seperate Peices of Pie Chart

UNIT 11 Pivot Table 4 Hrs

Introduction to Pivot Table, How to find out values as % of Grand Total and Column/Row Total in Pivot Table, How to Display Revenue By Quarter in Pivot Table, Use of Calculated Field for calculating Commision on revenue, Use of External Data Connections to import data from different file,Condolidate Sheets Thorugh Pivot Wizard, Filter the Pivot Table by Row and Column Label, Adding and Removing Subtotal And Grand Totals, Conditional Formating in the Pivot Table, Create your First Pivot Chart, Change Chart type, Formatting, Filter Column

UNIT 12 VBA 6 Hrs

Basics of Macro VBA - Usefull VBA Commands - Use of Excel Formulas and Functions in VBA - Work Sheet and Wook Book Events - User Form in Excel Case Studies on VBA.

Recommended Text

Excel 2013 All-in-One For Dummies, Greg Harvey

MBAF 251

FINANCIAL TECHNOLOGY AND APPLICATIONS FOR MANAGERS

(Choose Any one Course)

Total hrs 30

Candidates are required to choose any one course from the following, to be pursued under the guidance of a faculty/self-study mode, using online resources and open market certifications.

1. Tableau application

2. Eviews Application for financial decisions

3. STATA applications for financial decisions

4. Coding algorithms for stock trading

5. Machine Learning and Reinforcement learning in Finance

6. Fundamentals of Machine Learning in Finance

7. Computational Investing

8. Securities Market and Technology Certifications

MBAF 331

STRATEGIC FINANCIAL MANAGEMENT

Course Description:

The objective of this course is to acquaint students with the advanced concepts of financial management and the application of the same in developing financial strategies for


36

the organization. Achieving competitive advantage through strategic financial management is inevitable in this 21st century business world. This subject explores the contemporary concepts and trends in strategic financial management (SFM), particularly focusing on cutting-edge areas like corporate valuation methods, value based management, need, causes and impact of Buy-back of Shares, Takeover Tactics, organizational architecture and other related areas of strategic financial decision making in the present corporate world.

Course Objectives

1. To evaluate the role of financial management in achieving the strategic objectives of a firm

2. To critically appraise the various methods of corporate valuation and compare them from the strategic perspective

3. To analyze and debate the reasons for/against M&As and Buy back of shares

4. To critically assess various financial risk management approaches with reference to takeover tactics

5. To debate on the existence of the organizational architecture

6. To contribute more effectively to corporate strategy by taking a more proactive and forward looking approach

Learning Outcomes:


1. Evaluate the role of financial management in achieving the strategic objectives of a firm

2. Critically appraise the various methods of corporate valuation and compare them from the strategic perspective

3. Analyze and debate the reasons for/against M&As and Buy back of shares

4. Critically assess various financial risk management approaches with reference to takeover tactics

5. Debate on the existence of the organizational architecture

6. Contribute more effectively to corporate strategy by taking a more proactive and forward looking approach

Total Hrs: 60

Level of Knowledge: Managerial and Decision Making

UNIT I Financial Policy and Corporate Strategy 5 Hrs

Concept of strategy: Defining strategy, levels at which strategy operates. Approaches to strategic decision making, Mission and purpose, objectives and goals, strategic business unit (SBU). Functional level strategies. Strategic decision making framework - Interface of Financial Policy and strategic management - Balancing financial goals.

UNIT II Corporate Asset Financing 8 hrs

Lease Financing: Meaning – definitions -Types – (Finance Lease and Operating Lease, Sale and Lease Back and Direct Lease, Single Investor Lease and Leveraged Lease, Domestic Lease and International Lease) - Lease Agreement - Tax provisions - Accounting Treatment of Lease - Lease Evaluation [Lessor’s & lessee view point] (concepts and problems.)

Off Balance sheet financing – reasons – methods and implications

UNIT III Financial Decisions 4 Hrs


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Strategic decisions on capital budgeting – strategic Cost of capital – leverages – Operating capital financing decisions– leverages – dividend decisions.

UNIT IV 12 hrs Mergers and Acquisition decisions

Difference and commonalities of the concepts, differentiation with regard to Take Over, Strategic & Financial Aspects, Hostile vs. Friendly Takeovers, Defense Tactics, Structural Defenses Vs. Non Structural Defenses, Contribution Analysis, Duties of Board of Directors, Market for Corporate Control. UNIT V Corporate Valuation 8 Hrs

Adjusted book value approach – stock and debt approach – direct comparison approach – discounted cash flow approach – DCF Approach two and three stage models – Free cash flow to equity valuation

UNIT V Value Based Management 8 Hrs

Marakon approach – ALCAR approach – Mckinsey approach – EVA Approach – BCG Approach

UNIT VI Other Related Areas 15 Hrs

Share buy backs decisions (Procedure and accounting effects) Angel investors and Venture Capital funds – Definition - origin - Differentiate PE funds, VC funds, and Angel investors – Features of Venture Capital - stages of Venture Capital - process of selection of investment – growth of venture industry in India.

Crowd funding in US and latest developments in India - cloud investments - Corporate Governance - Balance Score card – Financial management of sick units – Financial management in Intangible Intensive companies – Corporate Risk Management and Financial Engineering Essential Readings: G.P Jakhotiya (2007), strategic financial management, New Delhi. Vikas publishing house,

Reference Books

1. Allen, David, (2007) "An introduction to strategic financial management : the key to long term profitability", London : Kogan Page,

2. Chandra, Prasanna (2010). Financial Management – VIIth Edition, New Delhi, Tata McGraw – Hill Publishing Company Ltd.

3. Mattoo, P.K. (2006), Corporate Restructuring, an Indian Perspective. New Delhi MacMillan India Pvt. Ltd

4. Samuel C. Weaver, John Fred Weston (2008). Strategic financial management: applications of corporate finance. Cengage Learning,

MBAF 332

TAXATION LAW AND PLANNING Course Description

The study of Indian taxation and practice is of great importance for management students as it exposes students to the tax environment in India. It enables individuals to understand the tax implication on income or profit made through different sources. The course introduces students to


38

taxation in India: Direct and Indirect taxes. The study imparts both conceptual and applications of Income tax under the head of salary, house property, business and profess, capital gain, other sources and of Indirect taxes such as GST and Customs. The course aims at comprehending with the effects of tax policies on the Indian economy and its significance. The Tax data analytics interface, helps in understanding the use of vast tax data available and its analysis in predictions and policy decision making. Course Objectives:

To enable students, understand the provisions of various Indian Taxation Laws such as

Income Tax Act,1961, GST Acts, 2016 and Customs Act 1962.

To gain knowledge on different ways of computing Income tax for various assessees.

To impart knowledge pertaining to various regulations ofGST and Customs.

To make students aware of importance of tax planning for all types of assessees.

To enable students, understand the implications of taxation on the Indian economy.

To familiarize with tax data analytics and policy decision making using the same.

Course Outcome: On successful completion of this subject, students will be able to:

Understand major provisions of various Indian Taxation laws.

Apply various aspects of taxation, both Direct and Indirect taxes in various aspects of personal and professional life.

Appreciate the GST implementation and compute GST payable, along with custom duty as another part of Indirect taxes.

Comprehend with tax management, planning and administrative procedures.

Relate the effects of tax policies on the economy of a nation.

Champion in the use of tax data analytics to make meaningful interpretations.

Total Hours: 60 Hrs UNIT 1: Introduction to Taxation 4 hours Level of Knowledge: Conceptual Introduction To Taxation-Direct And Indirect Tax, Income Tax Act 1961, Income Tax Rules 1962, Finance Act, Scheme of IT An Over-View Basic Concepts- Assessee, Person, Assessment Year, Previous Year, Agricultural Income, Income, GTI, Total Income, Average Rate Of Tax Capital And Revenue. UNIT 2: Residential Status and Incidence of Tax 4 hours Level of Knowledge: Conceptual Determination of residential status, Kinds of income, incidence of tax, Tax free income,Tax Planning special reference to 100% EOU and SEZ/FTZ. UNIT 3: Computation of Income: 14 hours Level of Knowledge: Application Income from Salary- Briefly about components of salary, pension, retirement benefits and section 16, Income from house property - Briefly about GAV, NAV and deductions u/s 24, Profits and Gains of Business and Profession – Briefly about Depreciation and general deductions u/s 37(1), maintenance of accounts u/s 44AA, Capital Gains – Briefly about STCG, LTCG and slump sale, Income from other sources – Briefly about dividends, casual income and interest income. Small problems under each head,More problems on Computation of GTI. UNIT 4: Clubbing of Income, Set offs, Deductions and Procedures of tax 10hours Level of Knowledge: Application Income of spouse, son’s spouse, minor child, converted property. Carry forward and Set off of losses, Deductions from u/s 80 C to 80 U, Rebate u/s 87A, Relief u/s 89; Procedural Compliance: Permanent Account Number /Tax Collection Account Number TAN; Introduction to Tax Deduction at Source TDS & Tax Collection at Source TCS(Briefly); Advance Tax & Self-Assessment Tax; IT Returns, Signatures, E-Filing ; Fee and interest for default in furnishing return of Income ; Collection, Recovery of Tax, Refunds.


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UNIT 5: Tax planning 10 hours Level of Knowledge: Application Detailed aspects of Tax planning for Individuals – salaried(More thanone house loan, HRA or RFA, Medical allowance or medical perquisite; pensioners – various investment schemes and their tax implications; Business organizations and Startups. UNIT 6: GST and Customs 12 hours Level of Knowledge: Conceptual Concept of Indirect Taxes at a glance, Pre-GST tax structure and deficiencies; Basics of Goods and Services Tax GST- concept and overview; Constitutional Framework of GST; GST Model – CGST / IGST / SGST / UTGST; Taxable Event; Concept of supply including composite and mixed supply; Levy and collection of CGST and IGST; Composition scheme & Reverse Charge; Exemptions under GST. Concept of Time, Value & Place of Taxable Supply, Input Tax Credit Customs Act; Overview of Customs Act: Overview of Customs Law; Levy and collection of customs duties; Types of Custom duties; Classification and valuation of import and export goods. UNIT 7: Economics of Taxation 2 hours Level of Knowledge: Conceptual Tax incidence- Economy vs statutory incidence, partial equilibrium model; Efficiency cost of taxation – Excess burden of tax; Tax policy implications; Optimal taxation - Income tax (Laffer curve) and commodity tax (Ramsey model) Basic problems. UNIT 8: Introduction to Tax Analytics 4 hours Level of Knowledge: Applicationareas of Tax data analytics, Introduction to tax data analytics; Interpretation of Tax data such as PAN, TAN, TIN, various types of assesses, revenue collected,zone wise tax collected –both direct and indirect taxes using MS Excel based visualization and predictive analysis tools.( data source: http://www.mospi.gov.in/statistical-year-book-india/2017/175: Ministry of Statistics and Program Implementation and https://www.incometaxindia.gov.in/Pages/Direct-Taxes-Data.aspx). Essential Reading: Dr. Vinod .K. Singhania ,Students Guide To Income Tax, New Delhi, Tax Man Publications. References: 1. Dr. Bhagawathy Prasad. Direct Tax Law And Practice. Mumbai, New Age Publications 2. Dr. H.P Mehrotra. Direct Tax Law And Practice. New Delhi,SahityaBhavan Publications 3. T S Manoharan. Direct Taxes. Pearson Education Publications. 4. VS Datey, 2018 , GST ready Reckoner, New Delhi, Tax Man Publications. 5. Dr. Vinod .K. Singhania ,Students Guide To GST and Customs, New Delhi, Tax Man Publications. 6. Web references: www.incometaxindia.gov.in, www.gst.gov.in, www.icai.org.

DISCIPLINE SPECIFIC ELECTIVE COURSES

Choose Any Four courses

MBAF 343 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT Course Description In economics, a financial market is a mechanism that allows people to buy and sell financial securities such as stocks, bonds and other commodities items of value at low transaction costs and at prices that reflect the efficient-market hypothesis. In case of general market are concerned and specialized markets exist. Markets work by placing many interested buyers


40

and sellers in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. In finance, financial markets facilitate the following activities like rising of capital in the capital markets, transferability of risk from the various markets, transferability of liquidity in the money markets and international trade in the currency markets are used to match those who want capital to those who have it. Frankly speaking, investing has been perceived as the chief source of finances of the rich people and has also been viewed as a minefield of opportunities to the inexperienced. For the reason that the western standards of living continue to improve, more and more individuals start to recognize the advantages investing can give even if they only have a small capital. The introduction to investment will help you explore a few basic principles to get you started the right way. Course Objectives:

The aim of this course is to provide a conceptual framework for analysis from an investor‟s perspective of maximizing return on investment – a sound theoretical base with examples and references related to the Indian financial system. Learning Outcomes

1. To know the different investment policies and the various factors influencing investment decision of Indian financial system.

2. To provide insight about the risk and return relationship between various types of investors like Arbitrator, Speculator and Gambler.

3. To acquire knowledge on various investment alternatives like shares, debentures and real estate with different risk and return analysis.

4. To analyze the various techniques followed by the investors in forecasting the behavior of the Indian market and their major influence with macro economic variables.

5. To explore sound theoretical knowledge on Capital Asset Pricing Theory (CAPM) & Arbitrage Pricing Theory (APT).

Level of Knowledge: Conceptual and Application Course Outline Total Hrs: 60

UNIT: 1 - Nature & Scope of Investments 6 Hrs


Basics of investment - Scope - Economic meaning and significance of income, savings, investments, security, speculation, and gambling Comparison between investment and speculation - Profile of Indian investors and factors influencing investment decisions - Internal and external factors, Legal framework of securities market in India, investors and stock exchanges, and its significance in Indian financial system. Characteristics features of financial instruments, Types of financial assets & Instruments. UNIT: 2 - Financial Markets in India 10 Hr


Security Markets Features of capital markets and functioning, New issues market - IPO’s, procedures – Book Building procedures, ASBA, role of Anchor Investors and Book running lead managers, valuation of issues - fundamental and technical considerations - Stock exchanges - role and importance, trading procedures in securities, - brokers and Jobbers,


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Index’s - Role of SEBI in brief.

UNIT: 3 - Risk & Types of Investment Analysis 9 Hrs


Security Analysis Risk perception and attitude, Systematic and Non-Systematic risks, Fundamental analysis - Company, Industry and Economic analysis - Technical analysis of securities - Charts, and Graphs - Moving averages - Types - implications on investment.

UNIT: 4 – Security Valuation 10 Hrs


Security pricing Security Valuation - Factors influence valuation - 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 and calculations Net worth. Equity valuation - Constant Growth Modal - Dividend capitalization - Earnings capitalization, security pricing model

Unit: 5 - Capital Asset Pricing Model (CAPM) 10 hrs

Efficient frontier with a combination of risky and risk free assets. Assumptions of single period

classical CAPM model. Characteristic line, Capital Market Line, Security market Line. Expected

return, required return, overvalued and undervalued assets. Mutual Funds :Introduction, calculation

of Net Asset Value (NAV) of a Fund, classification of mutual fund schemes by structure and

objective, advantages and disadvantages of investing through mutual funds. Performance

Evaluation using Sharpe‟s Treynor‟s and Jensen‟s measures and Fama's Decomposition.

UNIT: 6 - Portfolio Management 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

Learning Activities

Lecture led discussions, Case Studies, Article Review, Classroom Debates/Discussion, Mock Investment, Problem Solving, Research Papers and Videos etc.

Prescribed Text

1. M. Ranganathan and R. Madhumathi (2010). Investment Analysis and Portfolio Management. New Delhi. Pearson Education Press

Reference

1. PUNIThavathy & Pandian (2008). Security Analysis and Portfolio Management. New Delhi. Vikas Publishing House Pvt. Ltd.

2. Ronald Fisher & Jordan (2009). Investment Management. New Delhi. Tata Mc Grawl Publication.

3. V. A. Avadhani (2005). Security Analysis and Portfolio Management (7th ed.). New Delhi. Himalaya Publication.

4. V. K. Bhalla (2009). Security Analysis and Portfolio Management. New Delhi. Sultan Chand Publisher.


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MBAF 344 COMMODITY MARKETS AND DERIVATIVES

Course Description

Derivative securities are the most rapidly growing area in the global financial market. The purpose of this course is to provide a comprehensive analysis on the properties of Options and futures and to offer a theoretical framework within which all derivatives can be valued and hedged. Topics covered includes simple arbitrage relationships for forward and Futures contracts, hedging and basis risk, stock index futures, swaps, trading strategies Involving options, valuation of options using a binomial model and the Black ‐ Scholes formula, financial engineering and security design. This course also familiarize the students with the functioning, settlement systems, the factors influencing the commodity markets, the global and the domestic scenario of commodity markets, its role in the economy and the risk management aspects relating commodity trading. Course Objectives

1. To familiarize students with the functioning, settlement systems, the factors influencing the commodity markets.

2. To understand the global and the domestic scenario of commodity markets, and its role in the economy.

3. Apply derivatives instrument the risk management aspects relating commodity trading.

4. Understand the warehousing procedures and delivery systems in commodity markets.

5. To develop trading strategies using stocks, indices and commodities. Learning Outcomes

After the completion of this course, the students should be able to have understanding of the

1. Understand difference risk management tools 2. Valuation of Futures and Options

3. Commodity market operations and trading plat form

4. Use of derivatives tools for corporate risk management


COURSE OUTLINE

Total Hours: 60 UNIT- I 8 Hrs Introduction to Derivatives

Level Of Knowledge: Conceptual

Derivatives defined - Types of derivatives - Financial derivatives - Commodity derivatives - Products, participants and functions – Exchange – traded versus OTC derivatives - Instruments available for trading - Types of instruments (future, options) Basics – Payoffs - Using commodity derivative Markets - Hedging – Speculation – Arbitrage UNIT-II Risk Management using Derivatives 12 Hrs

Level Of Knowledge: Application

Risk Management using forwards and futures futures terminology, forward and future differences, limitations of forward markets, futures pay off – pay off for buyer and seller of future - Long future and Short future, application futures- Hedging, speculation and


43

arbitrage, contract specification for stock futures and index future, eligibility criteria of stocks and indices.

Risk management using options optional terminology, types of options and specifications option pay off –long short assets, long and short call, long short put, Margin, factors affecting options pricing , pricing of options, options Greeks, application of options-hedging and speculation, contract specification for stock and index option, option strategies (applications)

UNIT- III 10 Hrs

Commodity Derivatives


How they differ from financial derivatives – Warehousing - Quality of underlying assets

Global commodities exchanges - Commodities exchanges in India (regional & national)- Commodities permitted for trading - Kabra Committee Report (Roadmap) – Commodity - specific issues - Cropping and growth patterns - Global and domestic demand- supply – dynamics - Price trends and factors that influence prices

UNIT- IV 6 Hrs

Pricing commodity derivatives


Investment assets versus consumption assets - The cost of carry model - Pricing futures contracts on investment commodities - Pricing futures contracts on consumption – commodities - The futures basis-Option valuation models-Black Scholes, Binomial theorem.

UNIT- V 6 Hrs

The MCX platform


About MCX - Exchange membership - Rules, regulations, byelaws - Commodities to be traded on the MCX platform - Types of commodities - Bullion (silver & gold) - Agricultural commodities and Currency Derivatives. Trading on the MCX platform - Contract specifications - Trading system - Entities in the trading system – Trader – workstation - Order types and conditions - Exposure limits.

UNIT – VI 5 hrs

Currency Derivatives

Foreign Exchange Derivatives – Definition, market players, growth drivers, key economic functions of currency derivatives. Trading on currency derivatives at NSE and MCX.

UNIT- VII 8 Hrs

Clearing, Settlement and Risk Management


Calendar and settlement schedule - Position determination - Settlement mechanism - Daily Mark to Market Settlement - Settlement price - Daily settlement price – Final - settlement price – Margining - Initial margin - Daily Mark to Market margin – Open - interest limits - Second Line of Defence - SPAN@ - Final settlement - Cash settlement - Physical settlement(Warehousing) - Exception Handling - Funds Shortages - Delivery Shortages

UNIT- VIII 5 Hrs

Regulatory Framework



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Rules governing Commodity Derivatives Exchanges - Rules governing Intermediaries - Investor Grievances, Arbitration Rules - Accounting and Taxation issues.

ESSENTIAL READING

Hull, John C., “Options, Futures and Other Derivatives”, 6th edition, Prentice Hall India.

BOOKS FOR RECOMMENDED READINGS

1. Jayanth Rama Varma (2011). Derivatives and Risk management. New Delhi. Tata Mc Graw Hill

2. Hull, John C., “Options, Futures and Other Derivatives”, 6th edition, Prentice Hall India.

3. S.L.Gupta (2011) Financial Derivatives – Theory, Concepts and Problems. New Delhi. Prenctice hall publications.

4. “Futures and Options” Mumbai, BSE Book's Publication.

5. Avadhani, V.K., “Security Analysis and Portfolio Management” 7th edition, Himalaya Publication.

6. Mahajan R., (2011), “Futures & Options - Introduction to Equity Derivatives”, Vision Books

MBAF 345

TECHNOLOGY IN RETAIL BANKING AND INSURANCE

COURSE DESCRIPTION

This course provides an understanding of the banking and Insurance Industry and technological developments. It focuses on the important tools and, techniques, rules & regulations related to Insurance Business in India and to contribute effectively industry in particular and to the society in general. It explains the concept of retail banking products and services and insurance sectors and how it is used to cover risk. How insurance is transacted as a business and how the insurance market operates is also explained. The relationship between insurers and their customers and the importance of insurance contracts are discussed.

LEARNING OBJECTIVES

1. To understand the retail banking products and services and role of technology in retail banking industry.

2. Dimensions of Technological disruptions and reachability in banking and insurance sector.

3. To evaluate the developments in Cyber Security and Banking software based security

4. To understand different insurance contracts and rules and regulations governing the insurance industry.

LEARNING OUTCOMES

After the completion of this course, the students should be able to

1. Familiarize with the scenario of banking and Insurance business

2. Create awareness and develop an understanding about the best practices in banking and Insurance Business.

3. Apply the knowledge and skills required to take up challenges and exploit opportunities in banking and insurance sector.

4. Critically evaluate the role of technology in banking and insurance sector in India.


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LEVEL OF KNOWLEDGE: Conceptual and Application Total hrs: 60

COURSE OUTLINE Unit 1: Retail V/s Wholesale banking: 10 hrs

Concept of Retail Banking-Retail Products Overview: Customer requirements, products development process, Liabilities and Assets Products-Retail strategies-trends and optimization in retail banking channels-Current Trends in retailing- Technology for retail banking-Fintech disruption in retail banking. Corporate banking: Concept of corporate banking- services provided: Cash Management - Salary Payment - Debt Management - Factoring and Forfaiting – Trusteeship - Custodial services - Business advisory - Off shore services –loan syndication-venture financing -Trade financing services: Documentary letter of credit, collection and guarantees- Trends in trade financing: Application of block chain technology-Forex Management etc.-Technology trends in wholesale banking- Structure and functioning of investment banks in India-International banking scenario

Unit 2: Compliance in banks: 10 hrs

Need for regulation in banks-Compliance Risk and significance of Compliance Function-steps taken by banks for compliance-scope of compliance function -Reasons for compliance failures-Anti-money laundering: Prevention of money laundering act (PMLA)-Customer due diligence-Know your customer norms- International sanctioning-Financial Intelligence unit-fraud detection and management in banks

Unit 3 Cyber Security and Banking: 8 hrs

Information security- software based security systems- hardware based security systems (smart card, M chip)- hackers- techniques used by the hackers- phishing- pharming- key loggers- screen loggers- phishing Trojans- transaction poisoning- card related fraud- site cloning- false merchant site- authentication methodologies and security measures (password protection- smart cards- biometric characteristics)- encryption and security- customer confidentiality- regulatory environment of internet banking.

Unit 4: Insurance Sector 8 Hrs


Historical perspective, Meaning, Nature and Scope of Insurance, Classification of Insurance Business- Life Insurance and General Insurance- Fundamental principles of insurance- Essentials of Insurance Contracts. Indian Insurance Industry- Insurance sector Reforms in India-Liberalization of Insurance Markets-Major players of Insurance. Regulation of Insurance-IRDA Unit 5 Life and General Insurance 12 Hrs


Regulations relating to Life Insurance-General principles of life insurance contract proposals and policy; assignment and nomination; title and claims; concept of trusts in life policy; Growth of Actuarial Science-Features of Life Insurance-Life Insurance Contract-Life Insurance Documents-Insurance Premium Calculations. Classification -Classification on the Basis –Duration-Premium Payment- Participation in Profit-Number of Persons Assured-Payment of Policy Amount-Money Back Policies-Unit Linked Plans. Annuities -Need of Annuity Contracts -Classification of Annuities. General Insurance-Laws Related to General Insurance-General Insurance Contracts, different products of general insurance. Unit 6: Technology in Banking and Insurance: 12 hrs

Electronic delivery channels -Core banking Solution: concept, functioning, core banking software developed by IT companies-Inter-bank payment system- Structured messaging system-Global


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developments in Banking Technology-Banking technology development in the Indian scenario: role of IDRBT-Digital banking dimensions: Customer dimension (customer in a digitalized environment), Regulatory dimension- Technology dimension, Data dimension- Analytical dimension (customer analysis, analytical CRM, fraud analytics, risk analytics, operational analytics, HR analysis), Block Chain Technology, digital insurance, and emerging technology.

Essential reading

Principles and Practices of Banking and Insurance by V. S. Gopal and Sumati Gopal

Recommended Readings

1. Dr Neelam C Gulati (2011).Principles of Risk Management and Insurance. New Delhi Excel Publishing

2. Dr G Syamala Rao (2011).Growth and Performance of Insurance Sector with Special Reference to LIC of India. New Delhi Excel Publishing

3. Panda G.S., (2012) “principle and practice of insurance”bengaluru, kalyani publishers.

4. Scott E. Harrington, Gregory R Niehaus, (2007), “Risk Management and Insurance”, Second Edition, Tata McGraw Hill Publishing Company Limited, New Delhi.

5. Dorfman, Mark S., (2008), “Introduction to Risk Management and Insurance”, Ninth Edition, Prentice Hall India, New Delhi.

6. George E Rejda, (2009), “Principles of Risk Management and Insurance”, Twelfth Edition, Pearson, New Delhi.

7. P. Periasamy, (2009), Principles and Practice of Insurance”, Second Edition, Himalaya Publishing House, Mumbai.

8. Emmett J. Vaughan, Therese Vaughan, (2007), “Fundamentals of Risk and Insurance”, First Edition, Wiley India, New Delhi.

9. C. Arthur Williams, Jr. Peter Young, Michael Smith, (2007), “Risk Management and Insurance”, Eighth Edition, Tata McGraw Hill Publishing Company Limited, New Delhi.

10. Kakkar D.N. & Srivastava S.N.- Insurance & Risk Management (New Age Publication, New Delhi)

MBAF346

TIME SERIES ANALYSIS AND FORECASTING

Course Description

This course introduces students to the main concepts of Time Series theory and methods of analysis. The course enables students to use time series and forecasting techniques in examining financial processes and should understand methods, ideas, results and conclusions that can be applied in managerial decisions. In this course, students will master different methods of Time Series analysis, intended mainly for working with time series data for applications in business scenarios. Students should understand the differences between cross-sections and time series, and with those specific economic problems, using Stationarity and Non stationary Univariate Models, Conditional and multi Variance Models.

Course Objectives

1. To equip students with various time series methods of forecasting

2. To understand the modern statistical methods for analyzing time series data.

3. To apply the Stationarity and Non stationary Univariate Models, Conditional and multi Variance Models in business and economic scenarios.

Learning Outcome:


1. Find out the Long term and short term association among the variables


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2. Estimate volatility of Financial time series variables 3. Forecast financial data using advanced econometric techniques and measure their

effectiveness. Level of Knowledge: Application

Total Hrs: 60 Unit 1 Stationarity Univariate Models 10Hrs Introduction to Stationary financial- Time Series, Definition and examples of financial Time Series Models-Stochastic processes - Properties of stochastic process. Time series as a discrete stochastic process– Stationarity-Characteristics of stochastic component of time series (mean, autocovariation and autocorrelation functions). Lag operator- Data transformations - Methods of estimation –Trend, Seasonal and exponential. Unit 2 Non Stationarity Univariate Models 10 Hrs Univariate Nonstationary processes Nonstationary process, deterministic and stochastic trends, integrated process and random walk, random walk with drift, Unit root process-, test for unit root- Dicky Fuller tests. Unit 3 Conditional Variance Models 14Hrs Volatility Clustering- Meaning and measurement - Leverage Effects- Econometric models of volatility- AutoRegressive Conditional Heteroscedasticity (ARCH) Model- GeneralisedAutoRegressive Conditional Heteroscedasticity (GARCH) Model - Extensions to GARCH-Exponential GARCH and Threshold GARCH models. Unit 4 Multivariate Stationary and Non-stationary models 12Hrs Dynamic simultaneous equations models- Granger causality test - Vector Auto Regressive (VAR) models-Impulse Response Function (IRF)-Variance Decomposition Analysis - Diagnostic Checking. Unit 5 Multivariate Non-stationary models: 14Hrs Introduction to cointegration, testing for cointegration: Single-equation approaches: Engle Granger method, Johansen test for cointegration, Vector error correction model Essential Readings: Kerry Patterson, An Introduction to Applied Econometrics: A Time Series Approach. Palgrave Macmillan, 2000. RECOMMENDED BOOKS: 1. D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 5th edition,

International Edition. 2. Chris Brooks, Introductory Econometrics to Finance - Cambridge University Press, 2002 3. Christopher Dougherty, Introduction to Econometrics, Oxford University Press, 3rd

edition, Indian Edition, 2007. 4. Jan Kmenta, Elements of Econometrics, Indian Reprint, Khosla Publishing House,2nd

edition, 2008. 5. Stan Hurn, Vance Martin, Peter Phillips and Jun Yu, Financial Econometric Modeling

http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CEEQFjAD&url=http%3A%2F%2Fwww.cambridge.org%2Fus%2Facademic%2Fsubjects%2Feconomics%2Feconometrics-statistics-and-mathematical-economics%2Fintroductory-econometrics-finance&ei=O7XcUrywPMmOrQeH5oGgAg&usg=AFQjCNGwtWCE7ga8ZgVVJqmXrMxFn8FYUw


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6. Hamilton, J. D., Time Series Analysis, Princeton University Press, 1994

7. Peijewang “Financial Econometrics: Methods and Models” Rout ledge – Taylor &Francis Gorup – Vikas Publishing House, Pvt Ltd.

8. Kerry Patterson, An Introduction to Applied Econometrics: A Time Series Approach. Palgrave Macmillan, 2000.

9. Walter Enders, Applied Econometric Time Series. New York: John Wiley & Sons, Inc., 1995.

MBAF 347

FINANCIAL RISK MANAGEMENT

Course Description

The course offers an introduction into the evolving and expanding practice of financial risk management. Risk management is a complex process of identifying, quantifying and managing various risk exposures. The course analyzes and discusses the various sources of risk. Particular attention is devoted to the main risk management techniques such as Value at Risk (VaR), volatility models, and correlation models. The course focuses on the main issues of financial risk management. Risk management has emerged as one of the most important area in finance. The evolution of this subject has been attracting the interest of both practitioners and academia. Therefore, the course is a blend of theory and application. Real data analysis is an important part of this course. A student successfully completing this course will be familiar with the main current practices of financial risk management.

Course objective:

The course addresses how to control for market and credit risks. Liquidity, operational, and legal risks. Topics include value at risk, Monte Carlo simulation, scenario analysis, stress testing, credit value at risk, and credit derivatives.

Course learning Outcome:


1. Understand the financial risk management framework.

2. Compare and contrast different risk management techniques.

3. Measure the Financial Risk Measurement using advanced tools.

4. Apply risk management techniques using derivative tools for decision making.

Level of knowledge: Conceptual and Application

Total Hrs: 60

UNIT – 1 4 hrs

Financial Risk: An Overview, Evolution, and the Environment. Risks definition (market, credit, liquidity, operational), more specifically on the identification of different forms of risk (currency, interest rate, equity, commodity).

UNIT – 2 10 hrs


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Market Data Analysis -Probability and distributions of asset prices, measuring return and risk, Modeling Risk Factors, Using implied volatility in Value-at-Risk measures Risk and volatility Measurement.

UNIT – 3 8 hrs

Financial Risk Measurement -The issue of time aggregation, different measures of volatility such as AR, ARMA, EWMA, ARCH & GARCH processes, volatility clusters and the issue of time varying volatility.

UNIT – 4 10 hrs

Measuring risk using Value-at-Risk, concept and computation of Var using different approaches, expected shortfalls, treasury applications Stress testing and back-testing, Extreme Value Theory UNIT – 5 10 hrs Credit Risk Basics: Probability of Default, Credit ratings & Transition Matrix analysis, Contingent claim approach and the KMV Model, Credit Risk Management and Credit VaR. Indian environment in VaR applications (NSE, BSE, MCX, CCIL), RBI guidelines for credit & market risk management, VaR based margining. UNIT – 6 12 hrs

Futures and Forwards - Differences- valuation of futures, valuation of long and short forward contracts. Mechanics of buying & selling futures, Margins, Hedging using futures - specification of futures - Index futures, interest rate futures - arbitrage opportunities. UNIT – 7 6 hrs Case Discussions (Asia Currency Crisis , Amaranth Hedge funds, Allied Irish Bank Bank of Credit and Commerce International (BCCI), ERM Crisis, Orange County, Barings, Daiwa, Kidder Peabody, Metallgesellschaft, Northern Rock, Procter and Gamble (P&G), US Savings & Loan Crisis, etc) An Integrated Risk Management framework, Operational, An integrated approach to risk management considering issues such as operational, supervisory, legal, Accounting, Issue of Governance ratings and risk in institutions, the role of risk management offices (front, middle and back offices), Risk reporting, Risk Budgeting and Setting Risk Limits, limits using notional, stop loss and Var based limits, establishing trading limits. Essential Readings: John Marthinsen (2009), Risk Takers: Uses and Abuses of Financial Derivatives, 2nd Edition, Pearson Education. Books for reference:

1. Peter Christoffersen (2003), Elements of Financial Risk Management, Academic Press. 2. Robert McDonald (2006), Derivatives Markets, 2nd Edition, Addison Wesley. 3. Jonathan Mun (2006), Modeling Risk: Applying Monte Carlo Simulation, Real

Options Analysis, Forecasting, and Optimization Techniques, 1st Edition, Wiley. 4. John Marthinsen (2009), Risk Takers: Uses and Abuses of Financial Derivatives, 2nd

Edition, Pearson Education. 5. Hull, John C., “Options, Futures and Other Derivatives”, 6th edition, Prentice Hall


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India.

MBAF 348

PROJECT APPRAISAL AND FINANCING Course Description

This course embarks on a contemporary approach to the subject, discusses the traditional as well as emerging challenges, in the area of Project appraisal. In this era of competition projects are important part of any organization. A project manager should know how to manage the flow of project information during various phases of the project. He should be able to manage the various types and sources of risk that are the primary responsibility of the project supervisor. He needs to understand the role of planning and scheduling projects.

This course introduces to Planning & Analysis of projects, Generation and Screening of Project Ideas, Financial Analysis, Types and Measures of Risk, Social Cost Benefit Analysis, and the methods in applying fundamentals of project financing; rationale for this type of financing; completion, operating, regulatory, and sovereign risk analysis; risk mitigation strategies; financing options. Course Objectives:

To develop skills in applying fundamentals of project financing; rationale for this type of financing; completion, operating, regulatory, and sovereign risk analysis; risk mitigation strategies; financing options. Learning Outcome

1. Know how to manage the flow of project information during the various phases of the project.

2. Be able to manage the various types and sources of risk that are the primary responsibility of the project supervisor.

3. Understand the role of planning and scheduling project.

4. Study of origin of NGOs, bye-laws, annual report and financial statements

5. Conduct of feasibility studies and pre-funding appraisal exercises

6. Development of indicators for monitoring and evaluation of selected projects

7. Location of the possible solutions for the problems identified Level of Knowledge: Managerial and Decision making Total Hrs: 60 UNIT: 1 - Planning & Analysis Overview 5 Hrs

Phases of Capital Budgeting - Levels of Decision Making – Objective, Resource Allocation Framework: Key Criteria for Allocation of Resource - Elementary Investment Strategies - Portfolio Planning tools – Strategic Position and Action Evaluation - Aspects Relating to Conglomerate Diversification - interface between Strategic Planning and Capital Budgeting.

UNIT: 2 - Generation and Screening of Project Ideas 8 Hrs

Generation of ideas – Monitoring, the environment - regulatory framework for projects - corporate appraisal - preliminary screening - project rating index - Sources of positive NPV qualities of a successful entrepreneur - the porter model for estimation of profit potential of industries. Market and demand analysis: Situational analysis and specification of objectives - collection of secondary information - conduct of market survey - characterization of the market - demand forecasting - market planning. Technical Analysis: Study of Material Inputs and Utilities – Manufacturing Process and technology - Product Mixes - Plant


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Capacity - Location and Site - Machinery and Equipment - Structures and Civil Works - Project Charts and Layouts - Work Schedule.

UNIT: 3 – Financial Analysis 6 Hrs

Financial Analysis: Estimation of cost of project and means of financing - estimates of sales and production - cost of production - working capital requirement and its financing - estimates of working results – breakeven points - projected cash flow statement - projected balance sheet. Project cash flows: Basic principles of measurement of cash flows - components of the cash flow streams - viewing a project from different points of view - definition of cash flows by financial institutions and planning commission - biases in cash flow estimation. Appraisal criteria: Net Present Value - benefit cost ratio - internal rate of returns urgency - payback period - accounting rate of returns – investment appraisal in practice, Analysis of Risk, Assessing the Tax Burden.

UNIT: 4 – Types and Measures of Risk 7 Hrs

Types and Measure of Risk - Simple estimation of risk - Sensitivity Analysis - Scenario Analysis, Monte Carlo Simulation - Decision Tree Analysis – Selection of Project - Risk Analysis in practice. Special Decision Situations: Choice between Mutually Exclusive Projects of unequal life - Optimal Timing Decision - Determination of Economic Life - inter-relationships between Investment and Financing aspects - Inflation and Capital Budgeting.

UNIT: 5 - Social Cost Benefit Analysis 5 Hrs

Rationale for Social Cost Benefit Analysis (SCBA) – UNIDO Approach to SCBA - Little and Mirle Approach to SCBA, Qualitative Considerations-Social Cost Benefit Analysis, Contribution to Government Revenue, Political Stability, Priority and Evaluation of International Competitiveness.

UNIT: 6 Multiple Projects and Constraints 5 Hrs

Constraints - Methods of Ranking - Mathematical Programming Approach - Linear Programming Model - Qualitative Analysis: Qualitative Factors in Capital Budgeting – Strategic aspects Strategic Planning and Financial Analysis - Informational Asymmetry and Capital Budgeting Organizational Considerations. Environmental Appraisal of Projects: Types and Dimensions of a project - Meaning and Scope of Environment - Environment – Environmental Resources Values - Environmental impact Assessment and Environmental Impact Statement.

UNIT: 7 - Project Financing in India 5 Hrs

Means of Finance - Norms and Policies of Financial Institutions - SEBI Guidelines - Sample Financing plans - structure of Financial Institutions in India - Schemes of assistance - term Loans procedures - Project Appraisal by Financial Institutions.

UNIT: 8 - Project Management 10 Hrs

Forms of Project Organization - Project Planning, Project Control, Human aspects of project Management - Prerequisites for successful Project Implementation. Network techniques for Project Management - Development of Project Network - Time Estimation - Determination of critical path - scheduling when resources are limit - PERT and CPM models - Network cost system (Only Problems on Resources Allocation and resources leveling) Project review and administrative aspects: Initial review – Performance evaluation - Abandonment analysis - Administrative aspects of Capital Budgeting - Evaluating the Capital Budgeting System of an organization.


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Learning Activities Lecture led discussions, Case Studies, Article Review, Classroom Debates/Discussion, Mock Investment, Problem Solving, Research Papers and Videos etc. Essential Readings:

Prasanna Chandra (2011). Project Preparation Appraisal Budgeting and Implementation (7th ed.). New Delhi. Tata McGraw Hill.

Reference

1. Bennet P. Lientz, Kathryn P. Rea (2010). Breakthrough Technology Project Management (2nd ed.). New Delhi. Academic Press.

2. Machiraju, H.R. (2009). Introduction to Project Finance, New Delhi. Vikas Publishing House.

3. Narendra Singh (2009). Problems and Solutions in Project Management and Control. New Delhi. Himalaya Publishing House.

4. Prasanna Chandra (2011). Project Preparation Appraisal Budgeting and Implementation (7th ed.). New Delhi. Tata McGraw Hill.

5. Rao.P.C.K (2009). Project Management and control. New Delhi. Sultan Chand & Sons. 6. Vasanth Desai (2008). Project Management. New Delhi. Himalaya Publishing House

MBAF372: FINANCIAL MODELING Total hrs: 60

Course Description This course aims to familiarize the students with the different aspects of financial modeling using computer applications. It is a key skill with application in several domains of banking and finance industry as well as within corporations. It equips students for roles in core finance areas such as Equity Research, Investment Banking, Project Finance, Business Analysis, Credit Rating, Mergers & Acquisitions, Financial Analysis, Corporate Finance, IPO Analysis. Course Objective

1. To understand different financial modeling tools 2. To have hands-on experience on modeling under different financial variables. 3. To apply financial modeling for business decisions

Course Learning Outcome After the completion of this course, the students should be able to have understanding of the

1. Understand different financial modeling tools 2. Apply effectively financial modeling for different financial variables 3. Demonstrate the modeling outcomes on decision making.

UNIT – 1 10 Hrs Excel Proficiency Formatting of Excel Sheets, Use of Excel Formulae Function, Advanced Modeling Techniques, Data Filter and Sort, Charts and Graphs, Table formula and Scenario


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building, lookups, pivot tables, Macros, Recording of Macros, understanding Visual Basic Enviornment (VBE)

UNIT – 2 12 Hrs

Financial Modeling using Excel - Build a financial model from a scratch using the best structuring techniques - Use efficiently key Excel functions to construct sound financial forecasting models - Economy Industry and Company Framework - Step by Step analysis of company- Interpret and analyze the key ratios used in a financial forecast - Projecting B/S , Income statement and Cash Flows - Developing dynamic models using Excel - Equity Valuation using DDM, DCF, Relative Valuation , Residual Valuation and - Regression Based Models - Preparing a comprehensive high quality report

UNIT 3 8 Hrs

Valuation Modeling

Understanding Integrated Financial Models - Scenario Analysis - Excel Efficiency Shortcuts and formulae - Cash and Interest Revolver - Building Historical Financial Statements - Ratio Analysis - Projecting Financial Statements.

UNIT 4 6 Hrs

Merger & Acquisition (M&A) Analysis

Building Merger Inputs - Stock and Cash Mix Deal - Contribution Analysis - Accretion and Dilution -

UNIT 5 8 Hrs

Project Finance Modeling

Why Project evaluation; stage of project; construction & development phase; funding during investment phase; costs during investment phase; life of project; decision making, cash flow waterfall & resolve circular reference problem in interest during construction; Understanding Date functions, Modeling Cash flow waterfall, Delays in Projects

UNIT 6 10 Hrs

Equity Research Modeling

Prepare an Income Statement, Balance sheet, Cash Flow Statement, Geographic Revenue Sheet, Segment Revenue Sheet, Cost Statement, Debt Sheet, Analyze Revenue Drivers - Forecast Geographic Revenues, Segment Revenues, Geographic Revenues, Cost Statement, Debt, Income Statement, Balance Sheet, Cash Flow Statement. Performa Adjustments, Income Statement - Compute Margins, Balance Sheet -Compute Ratios

UNIT 7 6 Hrs

Cash Flow Statement Projection, Valuation- Discounted Cash Flow Method (DCF), Valuation – Relative Valuation (Football Field Chart)

Valuation – Assumptions for Valuation Model, Prepare Valuation Model, Prepare Presentation Sheet, Prepare


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ESSENTIAL READING

Mastering Financial Modeling in Excel – ALSTAIR L DAY (Pearson Publications)

References

1. Financial Modeling – Simon Benninga, MIT Pr.

2. SWAN, Practical financial modeling, ELSER publications, 2nd edition

3. Alastair Day, Mastering Financial Modelling in Microsoft Excel : A practitioner's guide to applied corporate finance (English) 2nd Edition

MBAF 351 RISK MODELING AND DECISION MAKING

Total hrs 30 Candidates are required to choose any one course from the following, to be pursued under the guidance of a faculty/self-study mode, using online resources and open market certifications.

1. Credit risk modeling

2. Financial Modeling

3. Business Analytics

4. Artificial intelligence in Finance

MBAF 431

INTERNATIONAL FINANCE Course Description:

International finance is a branch of economics that studies the balance of payments issues, exchange rates, foreign direct investment, capital flows, trade deficits, and surpluses, and how they affect international trade and the global economy. The players in the foreign market are increasing in numbers with the presence of the much more liberalized policies and regulations. Students need to acquire knowledge on the functioning of trade globally and its financial implications. Knowledge of foreign exchange activities and the hedging of foreign exchange exposures and other related aspects of risk coverage while doing international business shall be imparted. The objective of including multinational financial management is to provide clear understanding about BOP, FOREX, Hedging in international market.

Course Objectives

1. To understand with deregulation of financial markets, globalization, technological development that have increased competition in International financial markets.

2. To analyse foreign exchange markets, euro currency, International bond markets which are crucial to international business.

3. To Understanding of various Hedging techniques

4. To develop skills in Forex trading capabilities

5. To evaluate the implications of international trade on the country’s development.


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Learning Outcomes

After the completion of this course, the students should be able to

6. Understand with deregulation of financial markets, globalization, technological development that have increased competition in International financial markets. Hence the International Finance shall help students in decision making in an international context.

7. The syllabus covers foreign exchange markets, euro currency, International bond markets which are crucial to international business.

8. Understanding of various Hedging techniques

9. Increase Forex trading capabilities

10. Implications of international trade on the country’s development.

Level Of Knowledge: Conceptual And Application Total Hrs:60

Unit I: Changing Global Financial Environment 8 Hours


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. Foreign Exchange Markets - The structure of the FOREX markets, Functions of Foreign exchange markets, The foreign exchange rates, Arbitrage – Theory & problems on Locational, Triangular & Interest rate arbitrage, The spot market, Cross rates of exchange, Bid-ask spreads, The forward market, The regulations.

UNIT II Balance Of Payments 6 hours


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,Currency convertibility with reference to India.

UNIT III Derivatives 6 Hours


Introduction, Exchange traded markets, OTC markets, Forwards, Mechanics of futures, Mechanics of Options, & Swaps, Foreign currency futures & currency options.

UNIT IV Exchange Rate Determination 8 Hours


Interest rate parity, Purchasing power parity, The Fisher effects, Forecasting exchange rates – Efficient market approach, Fundamental approach, Technical approach, Performance of forecasters

UNIT V Euro Currency Markets 4 Hours


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


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UNIT VI Managing Foreign Exchange Exposure 9 Hours


Management of foreign exchange risk, Management of translation Exposure, Management of transaction Exposure, Management of Economic Exposure UNIT: VIII Foreign Investment Analyses 4 Hours


Measuring the Total Return from Foreign Investing, The Benefits of International Equity Investing, International Bond Investing, Optimal International Asset Allocation, Basics of Capital Budgeting, Issues in Foreign Investment, Political Risk Analysis, Growth Options and Project Evaluation.

UNIT: XI Cost Of Capital For Foreign Investments 6 Hours


The Cost of Equity Capital, The Weighted Cost of Capital for Foreign Projects, The All-Equity Cost of Capital for Foreign Projects, Discount Rates for Foreign Investment, Comparing the Cost of Capital with Developed & Developing countries

UNIT: X Capital Structure & Dividend Policy Of Mnc 4 Hours

Level Of Knowledge: Conceptual Capital Structure of Multinational Firms and Dividend Policy of the Multinational Firm

Essential Reading

Madhu Vij, (2012) “International Financial Management”, Second Edition, New Delhi, Excel Books. References:

1. Jeff Madura, (2011), “International Financial Management”, South-western international Thomson publishing company.

2. John.C.Hull, (2010) “Options, Futures & other derivatives”, VIth edition, Prentice Hall India publishing company.

3. Apte P.G, (2011) “International financial Management” New Delhi, TMH.

4. Madhu Vij, (2012) “International Financial Management”, Second Edition, New Delhi, Excel Books.

MBAF: 432

MARKETING OF FINANCIAL SERVICES Course Description

This course is aimed at providing the basic understanding of marketing of financial services and its structure and regulations. The course also provides an overview of various financial services, their emerging role and its service delivery process. Course Objective

The course is intended

1. To impart knowledge on marketing aspects of financial services.

2. To introduce students various financial services and operations.

3. To understand functions of merchant bankers and NBFC.

4. To understand the concept and process of securitization. Learning Outcome:



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1. Understand marketing aspects of financial services. 2. Comprehend and appreciate the distinctive characteristics of financial Services 3. Evaluate the functions of merchant bankers and NBFC. 4. Understand the concept and process of securitization.

Level of Knowledge: Conceptual and Operational

Total Hrs: 60

Unit 1 5 hrs Introduction to Marketing Marketing- Marketing management- Needs, wants and demand- Value and satisfaction -STP -Marketing Channels- Holistic Marketing- Internal marketing, integrated marketing, relationship marketing and social responsibility marketing- Marketing and customer value- Value delivery process. Unit 2 5 hrs Introduction to Services Marketing Services marketing- Nature of services- 7P’s of services marketing- Categories of services mix- Service quality/attributes- 5 Dimensions of servqual attributes- Customer gaps- Distinctive characteristics of services- Holistic marketing of services- Critical behaviors that cause customers to switch services- Service encounters and its types- Purchase process of services- Role and script theories- Managing service quality- Service quality model by Parasuraman, Zeithaml and Berry Unit 3 5 hrs Service Delivery Process Designing service process- Developing service blueprint- Inventory demand through waiting lines and queuing systems- Psychology waiting time- Developing customer relationships- Customer loyalty- The wheel of loyalty- Customer relationship management- Objectives-CRM strategy- Common Failures- Complaint handling and service recovery- Managing Employees for service orientation - Distribution Strategies for Services –Challenges in Distribution of Services - Personal Selling – Advertising and Sales Promotion in Service Industry- e services – online Consumer Behavior – Self-service technologies Unit 4 7 hrs Service Sector in India Service Sector in India: The Growth in Services – Global & Indian Scenarios - Evolution of Financial Services. Nature Scope and Types of Financial Services: fund based and non-fund based financial services. Venture capital: concept and types, regulatory framework How Venture Capitalists Evaluate Potential Venture Opportunities-- Managing Risk and Reward in the Entrepreneurial Venture- New Venture Financing -Risk & Return in venture capital. Unit 5 8 hrs Merchant Banking Merchant Banking; Issue Management, SEBI Guidelines, Institutional & Operational Framework- Regulation of Merchant Banking Activities- Obligations of Merchant Bankers- Domestic and External Investment banking- Difference between investment bank and traditional banks- Structure of an investment bank- Functions of Investment Banks - types within the investment banking division- Factoring: concept, types, delivery network, comparison and contrast with other similar services, Financial and Service charges, Growth and Trend of factoring service in India, Case of SBI factors- Forfeiting: concepts and


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delivery network, forfeiting and risk management, forfeiting and export finance, forfeiting in India.

Unit 6 8 hrs

Banks -Insurance

NBFC: Introduction, RBI act framework-asset-liability management system Housing Finance: introductions, housing finance system, Mortgage-based securitization, Guidelines for extending equity support to housing finance companies. Loan Syndication and Consortium Lending. Online banking services; Types of cards – POS Terminals. Insurance: Types – Marketing of Insurance plans – IRDA regulations on marketing of plans.

Unit 7 7 hrs

Lease and Hire purchase

Lease and Hire purchase: Meaning and Types of leasing – Legislative-frameworks – Matters on

Depreciation and Tax –Hire Purchasing- Concepts and features – Tax and Depreciation implications- Credit rating and Securitization: Definition and meaning- Process of-credit rating of financial instruments- Rating Methodology- Rating agencies –Rating symbols of different companies-Mutual funds, Insurance companies and IPO grading.

Unit 8 8 hrs

Securitization

Securitization of debt- Meaning-Features- Special Purpose Vehicle- Pass Through Certificate & mechanism –Benefits of Securitization – Issues in Securitization Stock Broking: introduction, bodies Regulating Stock Broking Firms-Functions of Stock Broking Firms - Services of Depository and functions Stock lending and Borrowing - Mutual fund: Types Mutual Funds – Advantages of mutual funds – Exchange Traded Funds – Hedge funds- Regulations on mutual funds

Essential Readings:

Khan, M. Y. Financial Services, New Delhi: Tata McGraw-Hill, 6th edition 2015.

Marketing Financial services-Mary Ann Pezzullo

Reference books:

1. Wirtz, Lovelock and Chatterjee. Services Marketing, 2018 Pearson India

2. Kotler, Keller, Koshy and Jha. Marketing Management, 12th edition 2007

3. Khan, M. Y. Financial Services, New Delhi: Tata McGraw-Hill, 4th edition 2008.

4. V.K. Bhalla, Management of Financial Services, New Delhi, Anmol Publication, 2nd edition 2005

5. Payne, Adrian. The Essence of Services Marketing,. New Delhi: Prentice Hall of India, 1993

6. Verma, J.C. Bharat’s Manual of Merchant Banking: Concepts, Practices and Procedures. 4th ed. New Delhi: Bharat Law House. 1996. 1568p.

7. Kotler, Philip and Gary Armstrong: Principles of Marketing, Prentice Hall, New Delhi. 6. Marketing Financial services-Mary Ann Pezzullo

8. Marketing of Financial services: V.A.Avdhani


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DISCIPLINE SPECIFIC ELECTIVE COURSES

Choose Any Four courses

MBAF 443

BOND MARKET OPERATIONS Course Description:

This course familiarizes students with the fixed income market instruments, valuations, market operations and treasury management practices in India. Also to provide insight about the relationship of the Risk and Return, Measuring risk, bringing returns according to the expectations of the investors in the debt market and use of fixed income securities in treasury management of institutions.

Course Objectives

1. To familiarize students with the bond market instruments, valuations, market operations

2. To provide insight about the relationship of the Risk and Return, Measuring risk, bringing returns according to the expectations of the investors in the bond market and use of bond securities in treasury management of institutions.

3. To apply bond portfolio management techniques using advanced tools.

Learning Outcome:


1. Understand the Bond Market environment in India.

2. Understand the Government securities and Corporate Debt Market in India.

3. Compare and contrast the different debt product from risk and return perspective.

4. Apply valuation models and Risk Identification techniques in Bonds.

5. Evaluate the global market conditions and investment patterns in debt markets.

Level of knowledge: Conceptual and Application

Total Hours 60

UNIT I Fixed Income Securities Markets Overview 4 hrs

Level of knowledge: Conceptual

Features - types – Debt market in India - Institutional Arrangements - Market Participants and Instruments - Investors Perspectives - Risk and Rewards - Current trends in Indian Debt market

UNIT – II Government Securities market 8 hrs


Central Government Securities: Bonds - Introduction, Developments Expected, G-Secs: Trends in Volumes, Tenor and Yields, Primary Issuance Process, Participants in Government Bond Markets, Constituent SGL Accounts, Primary Dealers, Satellite Dealers, Secondary Markets for Government Bonds, Settlement of Trades in G-Secs, Clearing Corporation, Negotiated Dealing System, Liquidity Adjustment Facility (LAF). Central Government Securities: Treasury Bill - Issuance Process, Cut-Off Yields, Investors in T-Bills, Secondary Market Activity in T-bills. State Government Bonds - Gross Fiscal Deficit of State Governments and its financing, Volume and Coupon rates on State Government Bonds, Ownership Pattern of State Government Bonds, and State Government Guaranteed Bonds.

UNIT - III

Corporate Debt: Bonds 4 hrs


60


Market Segments, Issue Process, Issue Management and Book Building, Terms of a debenture issue, Credit Rating. UNIT – IV Bond Market Indices Trading Mechanism 6 Hrs

Level of knowledge: Application

I-Bex : Sovereign Bond Index, NSE – MIBOR - Trading Mechanism in the NSE-WDM -

Description of the NSE WDM, Order Types and Conditions, Market Phases and Starting Up, Trading Mechanism, Order Entry in Negotiated Trades Market, Order Validation, Order Matching, Trade Management, Reports, Settlement, Rates of Brokerage - 1.

UNIT V Bond valuation 6 hrs


Time Value of Money – Bond Valuation - Present Value – Future value – Bootstrapping - Interpolation - Price and Yield Conventions - Credit rating system. UNIT VI Risk identification 8 hrs


Risk factors – Duration - Modified Duration and Convexity - Macaulay duration and Convexity, Basis Point Value (BPV), Bond Immunization Strategies – Bond price theorems – Malkiel bond theorems - Yield Curve Analysis - Par Value, Zero, Spot Curve - Term Structure of Interest Rates - Constructing Yield Curve Bootstrapping - Yield curve and yield curve theories – basic Econometric forecasting of the yield curve UNIT VII Bond Portfolio Management Strategies 7 hrs


Fixed Income Derivative Markets - FRAs, Swaps, Futures, Options Global Fixed Income Securities Markets Indexing, Securitization, Constructing the bond portfolio - Passive and active bond portfolio management - Market timing strategies - Timing bets on interest rate level - Timing bets on specific changes in the yield curve - Bullet, barbell, ladder and Butterfly strategies. UNIT – VIII 4 hrs

Level of knowledge: Conceptual Regulatory and Procedural Aspects

Public Debt Act, 1944, SEBI (Guidelines for Disclosure and Investor Protection), 2000, Market Practices and Procedures

UNIT – IX 6 hrs

Level of knowledge: Application Yield Curve and Term Structure of Interest Rates

Yield Curve: The Simple Approach, Bootstrapping, Alternate Methodologies to Estimate the Yield Curve, Theories of the Term Structure of Interest Rates

UNIT – X

Level of knowledge: Conceptual Fixed Income Derivatives 3 Hrs What are Fixed Income Derivatives, Mechanism of Forward Rate Agreements, Interest Rate Futures, Interest Rate Swaps. Learning Activity:


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1. Students are required to develop and New debt offer document and Value the yield for different time period of listed NCD yield for 3years

2. Students are required to construct of a fixed income portfolio. Essential Readings: Moorad Choudhry, old rich Masek (2011), Fixed Income Markets. New Delhi, john wiley and sons inc

BOOKS FOR REFERENCE

1. Moorad Choudhry, old rich Masek (2011), Fixed Income Markets. New Delhi, john wiley and sons inc

2. Fisher & Jordan (2010). “Investment Management. New Delhi. Prentice Hall of India Private Ltd.,

3. Avadhani (2010). Security Analysis and Portfolio Management. Bangalore. Himalaya Publications.

4. Bhalla (2008). Security Analysis and portfolio management. New Delhi.S.chand Publications

5. IIBF, “Bank Financial Management”

MBAF 444 ALGORITHMIC TRADING AND QUANTITATIVE STRATEGIES

Course description In the current scenario, investing in the stock markets poses a significant challenge even for seasoned professionals. This course is an introduction to quantitative trading strategies based on various statistical methods. Topics include methodologies related to statistical arbitrage, factor investing, trend following, momentum, technical trading and order book dynamics. Emphasis is on developing and empirically evaluating the algorithmic trading strategies based on statistical/mathematical models. Course Objectives

1. To make students learn how to use statistical/mathematical tools in developing sound trading

strategies

2. To make students learn how to backtest and develop a trading strategy 3. To make students learn how to use statistical methods to test the significance of

trading strategy results 4. To enable students how to use R & Python in algorithmic trading 5. To equip students with popular systematic trading strategies

Learning outcomes At the end of the course students will be able to

1. Use statistical tools to develop trading strategies

2. Do the back testing of the strategies

3. Use statistical methods to test the results of trading strategies

4. Use R & Python in algorithmic trading

5. Familiar and experienced with popular systematic trading strategies

Level of Knowledge: Analytical Total No. of Hours: 60


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UNIT 1 Introduction to Financial Instruments and Trading 6Hrs Level of Knowledge: Conceptual

Overview of financial markets and instruments, Shorting, margins and leverage, Stylized facts on asset returns UNIT 2 Introduction to Algorithmic Trading 4Hrs Level of Knowledge: Conceptual

Evolution of Algorithmic Trading, Meaning of algorithmic trading, Different Trading Methodologies, Trends in Algorithmic Trading: Global and India, Benefits of Algorithmic Trading UNIT 3 Introduction to R & Python 10Hrs Level of Knowledge: Analytical

Programming basics, obtaining financial data with Rand Python, Strategy Design, Back testing

UNIT 4 Equity & Fixed Income Analytics (Using R) 12Hrs

Level of Knowledge: Analytical

Fundamental Analysis using Ratio Calculations, Peer Group Comparison, Stock Selection Strategy based on Decision Trees, DCF Valuation and Sensitivity analysis, Bond Pricing along with duration and convexity, FX & Interest Rate Derivatives like Interest Rate Futures, Swaps, and Currency Options. UNIT 5 Algorithmic Trading using Python 12Hrs Level of Knowledge: Analytical

Technical Trading (Using Python) ,Basics of Technical Analysis : Chart Types, Chart Patterns, Gap Theory, Candle Pattern, Technical Indicators ,Designing of Strategy Builder using Technical Indicators & Price Theory ,Designing of Back-Testing platform to achieve strategy optimization ,Real-time API Connectivity by handling Broadcast, OMS & RMS ,Real-time Database upgrade & Data wrangling ,Comprehensive LIVE Strategy Engine UNIT 6 Order Book Dynamics and High Frequency Trading 8Hrs Level of Knowledge: Analytical

Order Types, Order Book Dynamics, Transaction costs, market making, High Frequency Trading Unit 7 Trading with Technical Indicators 8 Hrs Level of Knowledge: Analytical

Breakout Strategies: Bollinger Bands, Donchian Channels, New Highs, MACD Strategies, RSI Strategies Recommended readings:

Frank J. Fabozzi, Sergio M. Focardi, and Petter N. Kolm, Quantitative Equity Investing: Techniques and Strategies (Wiley, 2010)

Essential readings

1. Harry Georgakopoulos: Quantitative Trading with R: Understanding Mathematical and Computational Tools from a Quant's Perspective (Palgrave Macmillan, 2015)


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2. Ernie Chan: Algorithmic Trading: Winning Strategies and Their Rationale (Wiley, 2013)

3. Ernie Chan: Quantitative Trading: How to Build Your Own Algorithmic Trading Business (Wiley, 2008)

4. David Aronson: Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals (Wiley, 2006)

5. Algorithmic Trading: Winning Strategies and Their Rationale by Dr. Ernest Chan

MBAF 445

FINANCIAL TECHNOLOGY: FUNDAMENTALS AND APPLICATIONS

Course Description The entrepreneurial startup community is aggressively developing new "Fintech" applications which are dramatically changing the way financial services and products are delivered, especially to Millennial. There are now more than 200 Fintech companies valued at over $1 billion each, the so-called "Unicorns," and global investors pour tens of billions of dollars more into new startups each year. There are stories about new financial applications in the press every day. Some commentators foresee a revolution in finance, where there will be no need for brick and mortar branches, investment counselors, or even physical money itself. This course will provide students with exposure to new Fintech services within a critical context and framework analyzing traditional money, banking and financial markets combined with interdisciplinary content from Computer Science and Entrepreneurship. Course Objectives

1. To engage the student in observation, analysis and critical reflection of economic processes, institutions and innovations, using assigned readings, current events, current press and periodicals, other references, cases and class discussions

2. To master key concepts in financial products and services and the regulation thereof 3. To gain a basic knowledge of current and prospective technology as it relates to

financial products and services 4. To improve research, writing, discussion and presentation skills 5. To improve knowledge of current and future issues in cutting edge developments in

banking, financial markets and entrepreneurial fields Course outcomes Upon completion of this course, the student will have an understanding of

1. The range of financial services and products offered through Fintech in the marketplace

2. New services and products, often mobile and disruptive 3. The importance of the dominant role of Millennials and their unique preferences 4. Technology, as it relates to new Fintech 5. Regulation of financial markets, with relevance to new Fintech 6. How new startups are financed 7. Social and distributional issues around new Fintech 8. Possible future developments.

Level of Knowledge; Conceptual and Analytical

Total Hrs 60 Unit -1: Introduction to Financial Technology 12 Hrs Level of Knowledge: Conceptual


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Disruption and Disintermediation in Financial Products and Services- Millennial, Technology, Entrepreneurial culture and availability of finance - History and purposes of money – FinTech evolution: Infrastructure, Bank, start ups and emerging markets – FinTech Typology - Fintech Companies: Paytm, Google Pay, Apple Pay, Mpesa, Square and stripe – FinTech Regulation FinTech in global setting

Unit - 2: Payments, Crypto Currencies and Block Chain 10 Hrs

Level of Knowledge: Conceptual Individual Payments - Growth of Non-cash payments and mobile money – RTGS system - Crypto currencies - Legal and Regulatory Implications of Crypto-currencies – Crypto-currencies in India – Initial Coin Offer (ICO) - Introduction to Block Chain

Unit - 3: Digital Finance and Alternative Finance 12 Hrs


History of Financial innovation – Digitization of financial services – FinTech and Funds – Alternative Finance – FinTech based alternative finance – growth – regulation – Types – Crowd Funding (Charity, Regards and Equity), P2P and market lending, Lines of Credit, SME loans, Invoice factoring and Equipment financing – alternative finance and inclusive growth – Rise of Indian FinTech Companies in alternative finance – Comparison with Chinese and other Nation’s FinTech in alternative finance

Unit - 4: FinTech Regulation and RegTech 8 Hrs


FinTech Regulations – Evolution of RegTech – RegTech Ecosystem – Financial institutions and start ups – Challenges – Regulators – Regulatory sandboxes Unit - 5: FinTech and Data 8 Hrs


Data in financial services – History of data regulation – Digital identity – KYC to KYD – Application of data analytics in finance – methods of data protection – Challenges of data regulation Unit - 6: FinTech Big Trends and Case studies 10 Hrs

Level of Knowledge: Analytical

Case Study 1: Revolut

Case Study 2: Alibaba Case Study 3: Aadhaar

Case Study 4: Credit Karma

Case Study 5: Digibank FinTech Big Trends at present Essential Readings:

John Hill (2018). FinTech and the Remaking of Financial Institutions. Elsevier (2018) References

1. Frederic S. Mishkin (2016).Economics of Money, Banking, and Financial Markets, 11th Edition, Prentice Hall

2. Susanne Chishti and Janos Barberis (2016), The FinTech Book. Wiley

MBAF 446

CORPORATE TAX PLANNING AND MANAGEMENT


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Course description:

Tax planning involves conceiving of and implementing various strategies in order to minimize the amount of taxes paid for a given period. For a small business, minimizing the tax liability can provide more money for expenses, investment, or growth. In this way, tax planning can be a source of working capital. This course aims at making students conversant with the concept of Individual (Resident and NRI) and Corporate Tax planning, at an advanced level. It will discuss the commonly used tax avoidance devices and the related anti-avoidance rules and practices. The Tax data analytics interface, helps in understanding the use of vast tax data available and its analysis in predictions and policy decision making.

Course Objectives

1. To enable students, understand the provisions of various Corporate tax laws in India,

their computation and planning.

2. To plan and make tax arrangements for Resident ad non-resident Individual and

Corporate assesses.

3. To familiarize with the essential rules of taxation procedures.

4. To make students aware of importance of tax planning while making business decisions.

5. To impart knowledge pertaining to GAAR, Transfer pricing and Advance rulings.

6. To familiarize with Corporate Tax data analytics and policy decision making using the

same.

Course outcome

On successful completing this subject, students will be able to:

1. Comprehend with major provisions of various Corporate taxation laws including computation and planning.

2. Appreciate and apply advanced aspects of Income tax laws in Tax planning for Individual and corporate assesses.

3. Comply with the procedures of taxation in India.

4. Identify tax planning opportunities and integrate appropriate tax Strategies in corporate and personal business planning decisions.

5. Gain knowledge related to GAAR, Transfer pricing and Advance rulings.

6. Champion in the use of Corporate Tax data analytics to make meaningful

interpretations.


Total Hours: 60

UNIT 1: Introduction to Tax Management 10 hours


Concept of tax planning, Tax avoidance and tax evasions, Corporate tax in India - Types of companies - Residential status of companies and tax incidence,Tax liability and computation of taxation of companies- minimum alternate tax.

UNIT 2: Tax Planning for New Business 4 hours


Tax planning with reference to Location, Nature and Form of organization for new business.

UNIT 3: Tax Planning and Financial Management Decisions 6 hours



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Tax planning relating to capital structure decision, Dividend policy Inter – corporate dividends and bonus shares.

UNIT 4. Tax Planning and Managerial Decisions 12 hours Level of Knowledge: Application

Tax planning in respects of own or lease, Sale of assets used for scientific research, Make or Buy decisions; Repair, replace, renewal, or renovation, and Shutdown or Continue decisions. Tax planning with reference to employee’s remuneration - Tax planning with reference to receipt of insurance compensation - distribution of assets at the time of liquidation - Deferred tax assets - Deferred tax liabilities UNIT 5. Tax planning in respect of Non-Resident 10 hours Level of Knowledge: Conceptual

Basic Concepts of International Taxation -Residency Issues; Source of Income; Tax Havens; Withholding Tax, Unilateral Relief and Double Taxation - Avoidance Agreements, Controlled Foreign Corporation, Advance Rulings and Tax Planning, Authority for Advance Rulings, Special provisions relating to non-residents - Double taxation relief - Provisions regulating Transfer pricing - Advance rulings for non-residents. UNIT 6. Tax planning and Business restructuring 6 hours Level of Knowledge: Application

Tax planning with reference to amalgamation - Demerger - Slump sale - Conversion of sole proprietary concern/partnership firm into company - Transfer of assets between holding and subsidiary companies UNIT 7. Tax Management 8 hours Level of Knowledge: Conceptual

Tax deductions and collection at source, Advance payment of tax - Interest Payable by/to Assesses - Collection and Recovery of Tax - Return of Income - Procedure of Assessment- Appeals and Revision - Penalties and Prosecutions - Search, Seizure & Survey and Special - Procedure for Assessment of Search Cases

UNIT 8: Introduction to Corporate Tax data Analytics 4 hours Level of Knowledge: Application

Areas of Corporate Tax data analytics, Introduction to tax data analytics of corporate assesses, advance tax paid, taxes and profits –both direct and indirect taxes using MS Excel based visualization and predictive analysis tools.( data source: http://www.mospi.gov.in/statistical-year-book-india/2017/175: Ministry of Statistics and Program Implementation and https://www.incometaxindia.gov.in/Pages/Direct-Taxes-Data.aspx)

Essential Readings

SinghaniaVinodK . Corporate Tax Planning and Business Tax procedures. New Delhi. Taxmann Publication Recommended Readings

1. Ahuja G.K. and Ravi Gupta , Systematic Approach to Corporate Tax planning and management. New Delhi. Bharat Law House Pvt. Ltd.

2. Lakhotia, R.N: Corporate Tax Planning, Delhi.Vision Publications,.

3. SinghaniaVinod K: Direct Taxes Law and Practice. New Delhi Taxman's Publication.


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4. Web references: www.incometaxindia.gov.in,www.icai.org.

MBAF 447

TREASURY AND RISK MANAGEMENT

Course description: The course aims to make the participants understand the basics of financial markets like money, capital, foreign exchange and derivatives markets as a perquisite to understand various treasury functions and the associated aspects that contribute to protecting or enhancing shareholder value, reducing risk or securing the organizations cash flow. It also wishes to make the participant understand the importance of appropriate treasury systems and controls. In addition to it the course also wishes to make the participants aware of the modern tools to manage risks with specific focus on derivative. Course Objectives:

1. To know the basics of money market, capital market, forex market and derivatives market.

2. To understand the basics of treasury management including domestic cash management, medium and long term funding and liquidity management

3. To understand the risk involved in banking operations. 4. To understand basics of Assets Liability Management 5. To know techniques of hedging the risk.

Learning outcomes: The participants are expected to know the basics of financial markets. They are expected to know the basics of treasury functions in banks, risks involved, Asset Liability Management and hedging techniques. LEVEL OF KNOWLEDGE: Conceptual and Application

Total Hrs: 60 UNIT – 1: FINANCIAL MARKETS 8 hrs Introduction to the Money Market and Capital Market: Intermediaries- Function-Definition-Classification of Intermediaries -Types of markets-Participants-Nature of domestic Market -Classification and Analysis of Primary Instruments -Indirect Instruments -

Repurchase Agreements -Types of Interest Rate Quotations - Capital Markets: Function-

Classification of Instruments-by Issuer and Types-Settlements Procedures-Principles of Valuation-Developments in the Capital Markets UNIT – 2 8 hrs Foreign Exchange Markets: Introduction-Definitions-Direct and Indirect Quotations: Cross Rates, Factors affecting Exchange Rates, Role of Banks in the Market-Spot Operations-

Transfer Methods-Relationship with Market Operations-Financing Spot-Operations-Interest Arbitrage-Forward-Forward Business- Forward Transactions-Factors affecting/influencing forward rates- Premiums: Discounts, Forward Cross Rates-Swap Transactions-Outright Deals- Dealer Operations-Derivatives Markets


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UNIT- 3: TREASURY MANAGEMENT 12 hrs

Scope and Function of Treasury Management: Objectives of Treasury-Structure and Organisation-Responsibilities of Treasury Manager-Function of treasury – Centralised vs Decentralised. Domestic Cash Management-Short Term/Medium Term Funding – Meaning and Importance of Cash Management-Objectives of Cash Management-Cash Flow Cycle-Cash Flow Budgeting and Forecasting-Electronic Cash Management- Medium term and

Long term Funding: FDs/NCDs/Term Loans-Securitisation. Cost Centre / Profit Centre: Financial Planning and Control-Capital Budgeting-Risk Analysis- Liquidity Management: Objectives -Sources of Liquidity-Maturity Concerns: Projected Cash Flow and Core Sources-Contingency Plans-Short term and Long term Liquidity-Maturity Ladder Limits-Internal Control – The Need and Importance – Financial and Operational risks –Internal vs External Control Segregation of Duties among Front and Back Offices – Management-Information – Netting.

UNIT – 4: RISK MANAGEMENT 14 hrs

Introduction: Meaning of Risk in Banking Operations- Financial and Non-Financial Risks-Risk Process-Key Risks in Relation to Treasury Management – Interest Rate Risk, Currency Risk, Liquidity Risk, Credit Risk and-Operational Risk-Relationship with other Financial Risks- Measurement and Control of Risk: Identifying Measures and Controlling Risk – Statistical Methods-Risk Exposure Analysis-Risk Management Policies-Risk Immunization Strategies, Fixation and Delegation of Limits- Different Limits- Open Position / Asset Position Limits/ Deal Size/Individual Dealers/Stop Loss Limits.

UNIT– 5: ASSET LIABILITY MANAGEMENT 10 hrs

Components of Assets and Liabilities – History of AL Management- Organizational and Functions of ALCO- Management and Interest rate Exposure/Liquidity-Risk Adjusted Return on Capital-Capital Adequacy Concerns-ALCO Techniques – GAP Analysis, Simulation, Duration, Analysis and Linear and other mathematical methods.

UNIT – 6: HEDGING RISK 8 hrs

Forward, Futures and Options Market-Mechanics of Futures-Cash and Futures Market-Foreign Currency Futures Market-Options Market- Options Strategies- Hedging Strategies and Arbitrage-Call Options and Put Options, Swaps – introduction, types of swalps – currency swaps, interest rate swaps and cross currency swaps, practical problems.

Essential Reading

Treasury Management (CAIIB 2010), Macmillan Education, India

Books and References

1. Ross, D,, International Treasury Management’3rd edition, Euromoney Publications, London, 1987.

2. Smithson, C.W., ‘Managing Financial Risk: A Guide to Derivative Products’ 3rd edition, McGraw- Hill, New York, 1998.

3. Risk Books, ‘Financial Risk and the Corporate Treasury : New Developments in Strategy and Control’ Latest Edition, Risks Books, 1997.

4. Cuthbertson, K. And D. Nitzsche, ‘Financial Engineering : Derivatives and Risk Management’ Latest Edition, John Wiley, Chichester, 2001.

5. Shapiro, A.C., ‘Multinational Financial Management’, 8th Edition, John Wiley & Sons, London, 2006.


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6. Saunders. A., ‘Financial Institutions Management: A Modern Perspective’ 3rd Ediition, Irwin McGraw-Hill, Boston, 2006.

7. Maness, Terry S. and John T. Zietlow, Short-Term Financial Management’, 2nd Edition, South- western Thomson College Publishing 2002.

8. Higgins, David P, ‘Essentials of Treasury Management’, 2nd Edition, Association for Financial Professionals, www.AFPonline.org, 2007.

9. Dhandapani, Alagiri, ‘Treasury Management: Trends and Developments’, Latest Edition, ICFAI University Press, October 2008.

10. Hull, J., ‘Options, Futures and Other Derivatives’, 6th edition, Upper Saddle River, N. J., Prentice Hall, 2006.

11. Chance, D., ‘An Introduction to Derivatives’, 5th Edition, Harcourt, 2001 12. Dubofsky, David A, Thomas Miller, ‘Derivatives: Valuation and Risk Management’, Latest Edition, Oxford University Press, 2007.

MBAF: 448

CONTEMPORARY TRENDS IN FINANCE

Course Description

Recent years have witnessed major developments in the field of finance and accounting. Accounting standards are being strengthened and brought in line with international standards. The advent of IFRS and green accounting are landmark steps in that direction. Further, the field of finance has witnessed radical developments in the global scale in the form of microcredit, microfinance, financial inclusion, rural fiancé, value chain finance, Islamic finance etc. It is essential to understand such new contemporary developments in finance.

Course objective:

The course aims to inculcate conceptual frameworks of contemporary finance trends and to instill application level knowledge in the minds of students about contemporary finance trends.


Total hrs: 60 hrs

Unit – 1 8 hrs

Microfinance – Meaning, definition and conceptual framework and its history– Models of microfinance – Microcredit Vs Micro-savings Vs Microfinance – Microfinance institutions (MFI) Development of microfinance in India – GOI, RBI and NABARD initiatives for development of microfinance in India – Innovative microfinance models in India – Issues faced by microfinance in India – case study of SKS MFI and Grameen Bank

Unit – 2 6 hrs

Y.H. Malegam committee report on Microfinance – Microfinance and poverty – Microfinance and economic development – microfinance and rural development – microfinance and women empowerment – Microfinance and informal finance sector – Microfinance and small business development. Financial inclusion - Rangarajan Committee on financial inclusion – initiatives of GOI and RBI towards financial inclusion - Prime Minister’s Jan-Dhan scheme of financial inclusion and measurement of financial inclusion - Financial inclusion and SME finance


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Unit – 3 8 hrs

Small Finance Banks – Operating guidelines of Reserve Bank of India for small finance banks – Small finance banks and financial inclusion – History and list of small finance banks –functions of small finance banks – Business model of small finance banks. Payment banks - Operating guidelines of Reserve Bank of India for payment banks –Payment banks and financial inclusion – History and list of payment banks – functions of payment banks – Business model of payment banks

Unit – 4 15 hrs

Pradhan Mantri Mudra Yojana and Pradhan Mantri Kaushal Vikas Yojana – Micro Units

Development and Refinancing Agency (MUDRA) – MUDRA Bank – Genesis and role of MUDRA – Functions, roles and responsibilities of MUDRA – Products and services offered by MUDRA – MUDRA card – Role of MUDRA on financial literacy and financial inclusion –

The MUDRA pricing – Small and Medium Enterprise (SME) exchange in India - AIM (Alternate Investment Market) in UK - TSX Ventures in Canada - GEM (Growth Enterprise Market) in Hong Kong - MOTHERS (Market of the high-growth and emerging stocks) in Japan - Catalist in Singapore – Chinext in China – Regulations and features of SME exchange in India – Listing in SME exchange in India.

Unit – 5 8 hrs

Startups in India –Fund raising norms for startups - SEBI regulations on startup listing and fund raising – Angel funding – Origin of angel funding – SEBI regulations on angel funding – Financial Technology –Fintech companies in India - Prepaid payment mechanism in India

– Prepaid payment mechanisms – Smart cards, magnetic stripe cards, internet accounts, online or e-wallets, mobile accounts, mobile wallets and paper vouchers – Types of e-wallets – RBI regulations on prepaid payment mechanism – Growth of prepaid

payment mechanism in India.

Unit – 6 4 hrs

Value chain financing – rural finance – need for rural finance – Chit fund finance and its regulation in India – Sharadha chit fund case study - Shadow banking

Unit – 7 6 hrs

Islamic financing – origin and development – salient features of Islamic finance – Islamic finance in global financial market and Islamic finance in India - Green Accounting in India

Books for reference: 1. Buzzard, Shirley and Elaine Edgcomb. 1987. Monitoring and Evaluating Small

Business Projects: A Step by Step Guide for Private Development Organizations. PACT, New York (an electronic copy of this book is posted at Blackboard).

2. Kindervatter, Suzanne. 1987. Doing a Feasibility Study: Training Activities for Starting or Reviewing a Small Business. OEF International, Washington, D.C. (an electronic copy of this book is posted at Blackboard).

3. Ledgerwood, Joanna. 2001. Microfinance Handbook: An Institutional and Financial Perspective. World Bank Publications, Washington, D.C.

4. Collins, Daryl, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven. 2009. Portfolios of the Poor: How the World's Poor Live on $2 a Day. Princeton University Press, Princeton, New Jersey.

5. https://www.rbi.org.in/

6. https://www.nabard.org/english/home.aspx

https://www.rbi.org.in/

https://www.nabard.org/english/home.aspx


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MBAF472: FINANCIAL ANALYTICS (Using R)

Course Description Finance is one of the areas in which data is more useful and yet one of the most difficult ones.Financial time series data are indeed a challenging for modeling financial problem. The purpose of this course is to provide students a greater appreciation, both conceptual and techniques of the uses of data mining and big data in financial service. The course covers a number of themes and practical problems that combine data analysis, algorithms, financial issues and their applications in a data driven financial environment. With increased data availability and complexity comes the need for finance professionals who are not only able to work with data, but can separate insights from noise. This course introduces a core set of modern financial analytical concepts and techniques that specifically target finance applications. Course Objectives:

1. This course is intended to expose the students to the latest algorithms and tools of Financial Analytics and applying those tools for effective decision making.

2. Understand why analytics is a key competency essential for financial & banking Sector

3. Understand how financial organization can organize, enhance and store their business data

4. Interpret and analyze financial data to derive actionable intelligence and decision making.

Learning Outcome: The student understands Data Ware Housing, Data Mining, and Big Data for Financial Analytics implementation in Financial and Banking Applications.

Total Hrs: 60

UNIT I: BUSINESS ANALYTICS LIFE CYCLE 10 Hrs Data – Information – Intelligence – Knowledge Approach, Overview of Business Analytics, Stages of analytical evolution, CRISP-DM (Cross-Industry Standard Process for Data Mining), Types of Data Sources- Structured data, Semi structured Unstructured data, different types of financial data, Business Analytics Tools and Software, Role of Business Analyst in Finance & Banking Sector, Business Analytics Process, Business Analytics Architecture & Framework. UNIT II: DATA WAREHOUSE & DATA MINING 10 Hrs Introduction to OLTP and OLAP, Data Mart, Data Lake, Data Warehouse Architecture & Data Warehouse Design, Extract Transform Load (ETL), Data Mining Concepts, Architectural aspects of Data Mining, Data Mining Techniques - Linear Regression, Logistic Regression, Cluster Analysis, Classification, Association, Decision Tree, Data Mining Issues & Challenges, Financial Data Mining, Data Mining in Banking and Finance, Big Data in Banking and Finance, Big Data challenges in Financial Sector


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UNIT III: ANALYTICS APPLICATION IN FINANCE, BANKING & INSURANCE 10 Hrs

Financial Analytics - Financial time series prediction, Stock Prediction, Foreign Exchange Rate Prediction, Bankruptcy Prediction, Analytics in Retail banking (Credit Risk Management and Credit scorecards), Quantitative Trading, Algorithmic Trading,Loan Prediction, Insurance Analytics, Forensic Analytics.

UNIT IV: FINANCE ANALYTICS LAB USING R (Practical) 25 Hrs

Data types in R, Data Structures in R, Data handling in R, Data Preprocessing in R, Function in R, Data Exploration in R, Graphics in R, Financial Statistics, Statistical analysis of financial data, Distribution of financial data, Financial Ratio, Correlation, Regression Analysis, OLS Regression Analysis, Testing Normality, Volatility Models, Reading Time Series Data, Plotting Time Series Data, Graphical Analysis of Simulated Financial Data.

UNIT V: CASE STUDY / USE CASE 5 Hrs

Case studies of how Data & Analytics is enhancing and transforming traditional Finance, Accounting functions, and Banking, Case Study related to financial analyticsin various finance organization, National / International Banking and Insurance Sector.

Essential Reading:

R N Prasad and Seema Acharya,” Fundamentals of Business Analytics”, Second Edition, Wiley India Pvt. Ltd. 2018

Arratia, “Computational Finance, An Introductory Course with R”, Atlantis Press & Springer, 2014.

References & Recommended Reading:

1. Dinesh Kumar U, "Business Analytics- The Science of Data-Driven Decision Making", Wiley Publication, 2017

2. J Han and M Kamber, “Data Mining Concepts and Techniques”, 2nd Edition, Elsevier, 2011

3. Turban, E., Aronson, JE. Liang, T. Sharda R, “Decision Support and Business Intelligence Systems”, Prentice Hall Publisher, 10th Edition, 2011