Master of Business Administration (MBA) LE ( FINANCE)

Group - IInd
Finance
Paper - I
Security Analysis and Investment Management
Unit - I. Nature and Scope of Investment Management
What is Investment?, Financial and Economic Meaning of Investment, Investment
and Speculation, Investment and Gambling, Why Investments are Important?
Factors favourable for Investment, Investment Media, Features of an Investment
Programme, The Investment Process.
Financial Institutions and markets in INDIA
Development of the Financial System in India, Structure of Financial Markets,
Financial Institutions, A Critique of the Indian Financial System, New Developments
in the Financial System.
New issue Market and Stock exchange in INDIA
The Relationship of the new issue market and stock exchange, Role of the New
Issue market, Mechanics of Floating new Issues, Mechanics of Security Trading
in Stock Exchanges, kinds of Trading Activity, Membership rules in Stock Exchange,
Listing of Securities, Legal control of stock exchanges in India, Capital issues
control.
Unit - II. Security Valuation
Elements of Investment, Approaches to Investment, Hostorical Developments of
Investment Management, Basic Valuation Models, Bonds, Preference Shares,
Common Stock.
Returns
Measurement, Traditional Technique, Holding Period, Yield, Probability Distributions,
Statistical Methods.
Risk
Risk classification, Systematic, Unsystematic risk measurement, Standard
Deviation and Variance, Regression Equation, Correlation Coefficient, Co-variance,
Investor's Attitude Towards Return and Risk.
Unit - III. The Investment Alternatives
Investor Classification, Corporate Bonds, Bond Indenture, Features of Bonds,
Types, Classification, Convertible Bonds, Evaluation, Analysis of preference shares,
Equity Shares, Options, Warrants.
Alternative Forms of Investment
Government Securities, Types, Prices and Yields, Life Insurance, Kinds of Policies,
Procedure for taking a policy, Investment in Units, Objectives of Investment in units,
Different unit schemes, New schemes of UTI, Tax Benefits, providen Funds, Post
Office Scheme, National Saving Schemes, Post office Savings, Investments in
Land, Gold, Silver, Diamonds, Stamps, Antiques.
Investor and Intersest Rate
Kinds of Interest, Determination of Market Rate Theories, Financial intermediaries
and Term Structure, Interest Rates in India.
Dividend Policies and the Investor
Kinds of Dividends, Dividend Policies, Factors Affecting Dividend Decisions of
Firms, Limitations on Dividend payment, Dividend Theories.
Unit - IV. Investments and Tax Planning
Computation of Tax, Liability, Other Taxes, Exemptions, Deductions.
Fundamental Analysis
Econimic Analysis, Industry Analysis, Company Analysis, Company Financial
Statement, Ratio Analysis, Book Value, Market Value of Share, Growth Shares,
Income Shares, Analysis of Management.
Technical Analysis
Assumptions, Dow Theory Charts and Signals, Technical Indicators, Summary.
Efficient Market Theory
Theory, Weak Form, Semi-Strong Form, Strong Form of Market, Experiments and
Analysis of Theory, Comparisons with Fundamental and Technical School of
Thought.
Unit - V. Portfolio Analysis
Computation of Tax, Liability, Other Taxes, Exemptions, Deductions.
Portfolio Selection and International diversification
Types of Investors, Finding cut off rate, Efficient and Portfolio Selection, Borrowing
and Lending Factor and Efficient Frontier, Internal Diversification.
Techniques of Portfolio Revision
Formula Plans, Constant Rupee Value, constant Ratio, Variable Ratio, Rupee cost
Averaging
Performance measurements of Managed Portfolio
Classification of Investment Companies, Management Performance Evaluation,
Sharpe's Index. Treynor's Index, Jensen's Index, Empirical Tests, Mutual Fund.
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Paper - II
Corporate Taxation
Unit - I. Direct Tax
Direct Tax Laws
A comprehensive study of the Income-tax act, 1961, Wealth-tax act, case laws
governing capital and revenue expenditure, deemed income, residence concept.
Special Problems Centring on the concept of assesses, registered Firm, Hindu
Undivided family, Companies, Association of persons and trust, minors, Cooperatives,
non-resident Indias and avoidance of double taxation.
Unit - II. Problems covering heads of income
Salaries, perquistes, gratuity and retirement benefits, inccome from house property,
capital gains, income from other sources, Income from business and profession,
problems arising from aggregation of income and set off and carry forward of
losses. computation of income and Return of Income Tax, Filing procedure.
Unit - III. Tax audit
Tax administration
appeals, revisions, review, rectification and application to central Board of Direct
Taxes.
Acquistion Proceedings
Principles of valuation of movable and immovable property.
Tax incentives and export promotion, deductions under chaper VI, other benefits
and tax exemptions.
Unit - IV. Indirect Tax
Indirect Tax Laws, administration and relevant procedures
The central Excise including Central Value Added Tax (CENVAT);
The Central Sales Tax Act, 1956 (74 of 1956);
The Customs Act, 1962 (52 of 1962); and
Excise audit.
Unit - V. Assessment of Tax payable by the Assess under Indirect Taxes
Power of different authorities
Impact of Tax on Gatt 94, WTO, Anti Dumping Processing
Tariff Commission and other tariff authorities.
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Paper - III
Working Capital Management
Unit - I. Working Capital Management
Meaning, Concepts, Classification and Importance of working capital.
Excess or Inadequate working capital, tis disadvantages.
Objective of working capital.
Factors determining working capital requirements, Forecast of working capital
requirement
Unit - II. Working Capital Financing
Financing of working capital
Determining the working capital Financing Mix.
New Trends in Financing of Working Capital by Banks
Dahejia Committee Report
Tondon Committee Report
Chore Committee Report
Marathe Committee Report
Chakravarty Committee Report
Kannan committee Report
Unit - III. Management of Cash
Nature of Cash
Motives of holding Cash
Cash Management
Managing cash Flows
Determining Optimum Cash Balance
Cah Management Models
Investment of Surplus Funds
Unit - IV. Recivables Management
Meaning of Recivables.
Cost of maintaing Recivables.
Factors Influencing Recivables.
Meaning, Objects and Dimensions of Recivable Management.
Formation and Execution of Credit Policy.
Formation and Execution of Collection Policy.
Unit - V. Inventory Management
Meaning and Nature of Inventory.
Purpose and Benefits of Holding Inventory.
Risk and cost of Holding Inventory.
Inventory Management - Tools, Techniques, Objective and Meaning.
Determining Stock levels and safety stocks.
EOQ, VED, and ABC Analysis.
Inventory Turnover Ratios.
Aging schedule of Inventory.
Classification, Codification and valuation of Inventories.
Paper - IV
Infrastructure Financing
Unit - I. Planning environment
Financial objectives, policies on financing, investments and dividends. Financial
forcasting, planning and uncertainties, interest rates, inflation, capital gains and
losses exchange control regulation, government credit policies and incentives
statistics on production, price indices, labour, capital market based on published
statistical data.
Internal source, retained earnings, provisions etc, Issues in raising finance, legel
form of organisation, provisions of the companies Act, control of capital issues.
Short term sources : Trade credit, factoring, Bill of exchange, Bank Loan, Cash
credit, overdraft, public deposit, SEBI regulations, primary and Secondary markets.
Unit - II. Analysis of operating and financial leverages
concept and nature of leverages ooerating risk and financial risk, operating
leverages, financial leverage and combined leverage concepts, measures and their
interpretations. Operating leverage and Cost volume Profit analysis- Earning Before
Interest and Tax (EBIT) and Earning Per Share (EPS), indifference point.
Capital Structure theories and Planning
Concept of capital structure and its perimeters, Financial structure and capital
structure - simple and complex, theories of capital structure - net income approach,
net operating income approach, traditional and Miller and Modigliani approaches and
their criticism. Factors for capital structure planning; capital structure trend in
private and public sectors in India.
Cost of Capital
Its nature and meaning , relevance of cost of capital in financial decisions
computation of specific cost selection of weight, overall cost and marginal cost of
capital corporate tax and its impact on cost of capital.
Unit - III. Working capital management
operating cycle concept, forcasting, working capital regulations; monitoring
advance management of different components. working capital management under
inflation, new projects working capital management
Unit - IV. Advanced financial analysis and planning
Finacial statement, Financial ratio analysis fund flow and cash flow analysis,
leverages, Cost-Volume-Profit analysis, Financial forecasting, inter firm comparision,
Financial analysis and aspects inflation.
Unit - V. Dividend and retention policies
Formulating dividend policy : factors for consideration dividend theories - Walter's
model, Gordon's model, residual theory of dividend, Miller and Modigliani
hypothesis. Indian position in private and public sector in general.