MFC OU Syllabi

MASTER OF FINANCE AND CONTROL (SEMESTER SYSTEM)

(Applicable to University College of Commerce, Osmania University, w.e.f. the batch of students

Admitted during 2007-2008 onwards)

SYLLABUS

..

FACULTY OF COMMERCE OSMANIA UNIVERSITY

HYDERABAD- 500 007 A.P April 2007

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DEPARTMENT OF COMMERCE, OSMANIA UNIVERSITY, HYDERABAD. REVISED COURSE STRUCTURE OF M.COM SEMESTER COURSE

w.e.f 2007 - 2008 academic year onwards

Code Name of the Subject PPW Exam Max Marks duration Sem. Marks IA

FIRST SEMESTER 101 Cost and Management Accounting 5 3 hours 80 20 102 Management and Organisational Behaviour 5 3 hours 80 20 103 Marketing Management 5 3 hours 80 20 104 Financial Management 5 3 hours 80 20 105 Business Environment and Policy 5 3 hours 80 20 106@ Business Organisation and Management 5 3 hours 80 20 (106 – Interdisciplinary paper)

SECOND SEMESTER201 Management Control & Information System 5 3 hours 56 14 30P202 Security Analysis and Asset Management 5 3 hours 80 20203 Financial Institution and Markets 5 3 hours 80 20204 IT and E-Commerce (3T+2P) 5 3 hours 56 14 30P205 Financial Services 5 3 hours 80 20206@ Business Accounting 5 3 hours 80 20 (206 – Interdisciplinary paper)

THIRD SEMESTER301 Quantitative Techniques for Business Decisions 5 3 hours 80 20302 Project Management 5 3 hours 80 20303 Marketing of Financial Services 5 3 hours 80 20304 Elective Paper – 304 BAN/304 INS 5 3 hours 80 20305 Elective Paper – 305 BAN/305 INS 5 3 hours 80 20306@ Consumer Protection 5 3 hours 80 20

(306 – Interdisciplinary paper)

FOURTH SEMESTER

401 Tax Planning and Audit Control 5 3 hours 80 20

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402 International Finance 5 3 hours 80 20403 Elective Paper – 403 BAN/403 INS 5 3 hours 80 20 404 Elective Paper – 404 BAN/404 INS 5 3 hours 80 20405 PROJECT WORK* 5 PR + VIVA 100**406 Taxation 5 3 hours 80 20

(406 – Interdisciplinary paper)

* Seminars are meant for the students’ micro presentations and guest lectures by the external faculty/industry expert. **75 Marks for Project report and 25 Marks for Viva Voce examination by the external examiner from within the university.

**Refer Project work guidelines for details

Note: 1. For each paper there will be semester examination for 80 marks and 20 marks for

Internal assessment (10 marks for Micro presentations, 10 marks for tests (better of the two tests) in the subject.

2. Teachers are advised to handle/analyze at least 3 or 4 cases in the subject in the classroom on any topics outlined wherever feasible.

3. Interdisciplinary paper offered in each semester is for the students of courses other than commerce i.e; MFC.

@ Semestet-wise interdisciplinary courses for students other than commerce department:

106 Business Organisation and Management206 Business Accounting306 Consumer Protection406 Taxation

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SPECIALIZATION – ELECTIVES:

Code Name of the Subject PPW Exam Max Marks duration Sem. Marks IA

ELECTIVE – I

BANKING

304 BAN Banking Principles 5 3 hours 80 20 305 BAN Banking Practices and Operations 5 3 hours 80 20 403 BAN Risk Management in Banking 5 3 hours 80 20 404 BAN Rural Banking 5 3 hours 80 20

ELECTIVE – II

INSURANCE

304 INS Principles of Insurance 5 3 hours 80 20305 INS Management of Life Insurance Products 5 3 hours 80 20403 INS Risk Management in Insurance 5 3 hours 80 20404 INS Management of General Insurance Products 5 3 hours 80 20

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Note: Teachers are advised to handle/analyse at least 3 or 4 cases in the subject in the classroom on any topics outlined wherever feasible.

MASTER OF FINANCE AND CONTROL

COST AND MANAGEMENT ACCOUNTING

Semester - I

Paper Code 101 Exam. Duration 3 HoursPPW: 5 Max. Marks: 80+20 IA

Objectives: To Familiarise the student with the basics of Cost and Managerial Accounting and acquaint the student with practical knowledge in application of Cost and Managerial accounting Techniques

UNIT-I : INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING:Cost Accounting – Objectives – Importance – Cost concepts – Methods and Techniques of Cost Accounting – Cost Classification – Overheads costing including Activity Based (ABC) Costing (Theory only)

Management Accouting – Meaning - Management Accounting its relationship with Financial Accounting and Cost Accounting – Techniques of management accounting – Limitations of Management Accounting (Theory Only)

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Accounting Standards – Concept – Types of Accounting Standards – An overview of accounting standards in India (Theory only)

UNIT-II: MARGINAL COSTING, DIFFERENTIAL COSTING AND CVP ANALYSIS:Absorption Costing and Variable Costing – Comparison – Preparation of income statements – Marginal and relevant costs for decision making – Cost – Volume – Profit Analysis – break Even Analysis CVP analysis – Multi product BEP – Differential Costing – Decision making uder Marginal and Differential Costing (Including Problems)

Managerial Decision Making – Pricing decisions – Product decision: Profit planning Level of Activity, Dropping a product line, Introducing a new product line, Product /Sales mix decision – Make or Buy decisions Key/Limiting Factors (Including Problems)

UNIT-III: RESPONSIBILITY ACCOUNTING AND INFLATION ACCOUNTING:

Responsibility Accounting – Concepts – Steps – Responsibility Centre – Types of Responsibility Centres: Cost Centre, Revenue, Profit Centre and Investment Centre (Including Problems)Inflation Accounting – Concept – Limitations of historical based-cost financial statements – Methods of Inflation Accounting: Current Purchasing Power Method – Current Cost Accounting Methods (Including Problems)

UNIT –IV: FINANCIAL MEASURES OF PERFORMANCE AND CASH FLOW STATEMENT:

Introduction – Return On Investment (ROI) – Concept – Uses and Limitations – Economic Value Added (EVA) – Concept – Significance of EVA – Measurement of EVA (Theory only)

Balanced Score Card (BSC) – Concept – Objectives – Perspectives of BSC - Multiple Scorecard Measures to a Single Strategy (Theory Only).

Cash Flow Statement – Meaning - Preparation of Cash Flow Statement as per Accounting Standard No. 3 (Including Problems)

UNIT V: REPORTING OF FINANCIAL DATA:

Concepts of Financial reporting – Development in Financial reporting : Trueblood Report – The Corporate Report (UK) - Objectives of Financial Reporting – Qualities of Financial Reporting – Specific issues in corporate reporting: Social Reporting, Segment Reporting – Interim Reporting and Human Resource Accounting (HRA) - Harmonization in Financial Reporting -Concept - Obstacles in Harmonization - Recent trend in corporate reporting in India (Theory only)

SUGGESTED READINGS:

1. Sharma RK & Shashi K. Gupta: “Management Accounting” Kalyani Publishers, New Delhi, 2003.

2. Hansen & Mowen: Management Accounting, Thomson, 2007.6

3. Lele & Jawaharlal “Accounting Theory” Himalya Publishing Company, New Delhi, 2005.

4. Louderback: Managerial Accounting. Thomson, 2005.5. Jain S.P. & Narang K.L. “Accounting Theory & Management Accounting”

Kalyani Publishers, New Delhi, 2000.6. Atkinson: Management Accounting”3e Prentice-Hall of India Private Limited,

New Delhi, 2005.7. Rawat D.S. “Accounting Standards” Taxmann Allied Services Private Limited,

New Delhi, 2005.8. Rustagi R.P. “Management Accounting”, Galgotia Publishing Company, New

Delhi, 2006.9. Ghosh T.P. “Accounting Standards and Corporate Accounting Practices”,

Taxmann Allied Services Private Limited, New Delhi, 2000.10. Antle: Financial Accounting with GAAP, Thomson, 2005.11. Gupta R.L & Radhaswamy “Advanced Accountancy” Sultan Chand & Sons, New

Delhi.12. Stice: Financial Accounting: Reporting & Analysis, 7e, Thomson, 2007.13. Saudagaran: International Accounting, Thomson, 2007.

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MANAGEMENT AND ORGANISATION BEHAVIOUR

Semester - I


Unit 1: MANAGEMENT PROCESS AND FUNCTIONS:Introduction:. Organization and the need for Management- Factors Contributing to the increasing Significance of Management – Relationship between Management Theory and Management Practice – The Challenges in Management – Human Relations Approach: Elton Mayo’s Hawthorne Experiments – Douglas McGregor’s Theory of ‘X’ and ‘Y’ – Management Process and Functions: Nature and Description of Management Process and Functions – Planning – Organizing – Directing – Co-ordinating and Controlling.

Unit II: Understanding Individual and Group Behaviour:a. Organization - Definition – Organisation Theories: Classical Theory- Features – limitations. Neoclassical Theory – features –Modern Organisation Theory – Systems Approach – Contingency Approach.Organisational Behaviour (OB) – Features – Scope – Fundamentals Concepts of OB – Challenges and Opportunities for OB.b. Individual Behaviour –Attributes– Factors influencing perception attitudes – Attitude Formation and Attitude Change. Group Behaviour – Features – Group Cohesiveness- Important Factors influencing group cohesive–Group Norms – Decision Making

Unit III: Motivation, Morale and Culture:a. Motivation- Theories of Motivation – Motivational Processes - Content Theories ( Maslow,

Herzberg, McCleland) – Process Theories (Adam, Victor, Vroom and Lawler and Porter) – Learning and Reinforcement Theory.

b. Morale – Factors influencing Moralec. Organisational Culture – Concepts – Forming a Culture – Sustaining a Culture –

Changing a Culture

Unit IV. Organisational Power and Politics and Conflict & Negotiationsa. Power and Politics: Power Bases – Dependency – Individual Versus Organisational Power –

Political process in Organisation – Factors contributing – Techniques of Organisational Politics – Managing Political Behaviour.

b. Conflict – Transition in Conflict Thought – Functional and Dysfunctional Conflict – Process of Conflict – Managing Conflict.

Negotiations – Process – Approaches – Issues in negotiations

Unit V. Leadership and Change:a. Leadership – Introduction – Leadership and Management – Leadership Stylesb. Theories of Leadership – Traits – Behavioral Model (Managerial Grid) – Contingency

( Feilder, Path goal, Tri-dimensional – Inspirational approaches

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Suggested Readings:

1. Hellriegel: Organisational Behaviour, 10e, Thomson 2006.2. Robins P.Stephen & Judge: Organizational Behavior, 12/e PHI, New De1hi.20073. Daft: Organisation Theory and Design, Thomson 20054. Fred Luthans: Organizational Behavior, Me Graw Hill, New Delhi.5. Nelson: Organisational Behaviour, 3e, Thomson 20066. Daft: The New Era of Management, 7e, 2007.7. Aswathappa: Organizational Behavior, Himalaya Publisher.8. Hodgetts: Modern Human Relations at Work, Thomson 2007.9. Jones G R :Organizational Theory, Pearson Education, New Delhi10. Shashi Gupta & Rosy: Organisation Behaviour—Kalyani Publication.

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MARKETING MANAGEMENT

Semester - I


Unit-I: Product ManagementConcept of Product - Classification of Products - Product Levels Classification – Product Mix - Product Mix Decisions - New Product – New Product Development Stages - Product Life Cycle Stages &. Implications - Branding - Packaging & Labeling

Unit- II Price Management

Reasons for New Product Failure – Pricing – Objectives of Pricing – Role of Price in Marketing Mix – Factors influencing Price Determination – Pricing under different Competitive conditions – New Product Pricing Skimming and Penetration Pricing – Pricing Approaches – Cost base – Value Based – Competition – Pricing Methods.

.Unit-III: Promotion Management

Promotion – Significance – Product Mix – Advertising – Objection – Media – Budget – Types of Advertising – Advertising Effectiveness.Personal Selling – Nature – Steps in personal sellingSales Promotion – Objection – ToolsPublic Relations.

Unit-IV: Channel Management

Nature of Marketing Channels – Channel Levels - Channel Structure &. Participants – Functions Marketing Intermediaries- Channel Design Decisions - Channel Conflict and Resolutions - Online Marketing - Online Marketing Channels – Marketing Merits – Limitations Trends in Retailing.

Unit-V: Marketing Information System (MklS) & Control

Concept of MkIS - Components of a Marketing Information System (Internal Records System-Marketing Intelligence System-Marketing Research System-Marketing Decision Support System) - Marketing Research Process - Marketing Research Vs MkIS - Marketing Research in India - Annual Plan Control Profitability Control- Efficiency Control- Strategic Control.

Suggested Readings

1.Czinkota: Marketing Management, 2e2.Philip Kotler: Principles of Marketing, Pearson/PHI 20073.Ramaswamy &. Namakumari: Marketing Management4.Jain: Marketing Planning and Strategy, 7e5.Gandhi IC : Marketing Management6.Me Carthy EJ &. OtheIS: Basic Marketing7.Rosenbloom: marketing Channels8.Majare: The Essence of Marketing9.Ian Chasten: New Marketing Strategies10.Rajan Saxena: Marketing Management

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FINANCIAL MANAGEMENT

Semester - I


Objectives: 1) To introduce the subject of Financial management; and 2) To acquaint the student with various techniques of Financial Management

UNIT -I: FINANCIAL MANAGEMENT –BASIC CONCEPTS:

Financial Management – Meaning, Goals and Objectives – Functions of a finance manager - Financial decision-making; Concept and relevance of Time Value of Money - Compounding technique – Discounting technique (Simple applications of the time value of money)

UNIT II: LONG TERM INVESTMENT DECISIONS: CAPITAL BUDGETING:

Nature of Investment decision – Features and significance of Capital budgeting - Types of Capital budgeting decisions - Capital budgeting process - Cash flows estimation - Methods/Techniques of Evaluation -Traditional techniques - Payback period method -Accounting Rate of Return (ARR) method - Discounted Cash Flows (DCF) methods/techniques - Net Present Value (NPV) method - Internal Rate of Return (IRR) method - Reciprocal Rate of return method – Profitability Index - Criteria for Selection of a project - Evaluation and Interpretation of all the methods – Issues in Capital budgeting. (including problems)

UNIT - III: RISK ANALYSIS IN CAPITAL BUDGETING AND COST OF CAPITALa) Risk - meaning and nature - Risk adjusted discount rate - Certainty Equivalent (including problems) - Statistical Techniques to handle risk - Probability Assignments - Standard Deviation and Coefficient of Variation - Probability Distribution approaches - Decision Tree Analysis (theory only)

b) Cost of Capital: Concepts - Importance - Specific cost of capital for various sources of finance - Cost of Debt - Cost of Preference Capital - Cost of Equity Capital - Cost of External Equity - Cost of Retained Earnings - Weighted Average Cost of Capital - Book Value and Market Value Weights and Marginal Cost of Capital (including problems)

UNIT – IV: FINANCING AND DIVIDEND DECISIOINS a) Concept of Leverages - Operating Leverage - Meaning and measurement – Financial leverage - meaning and measurement – Degree of Financial and Operating Leverages- Combined Leverage: Meaning, measurement and importance EBIT- EPS Analysis with different financing patterns – Indifference point/level of EBIT. (Including simple problems)

b) Capital structure - meaning - Determinants of Capital Structure' - Optimum Capital Structure - Capital Structure Theories - Net Income Approach. Net Operating Income approach -Traditional view - M.M.Hypothesis (theory only);

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c) Dividend decisions: Concept and significance – Types - Dividend policy and value of the firm - Determinants of dividend decision – Relevance of dividend decision (Walter’s Model – Gordon’s Model) – Irrelevance of dividend policy (Residuals theory of dividends, MM Approach – Dividend policy and share value – Legal and procedural considerations. (Including Simple Problems on approaches to Dividend policy)

UNIT - V: WORKING CAPITAL MANAGEMENT:

a) Concepts of Working Capital - Determinants of Working Capital -Optimum level of current assets - Liquidity vs. Profitability - Risk Return Trade off . Estimating Working Capital needs (including Simple Problems).

b) Objectives and importance of .Cash Management . Receivables Management and Inventory Management (including problems on cash management and receivables management)..

suggested Readings:

1. Van Horn, James C: Financial Management, Prentice Hall of India (P) Ltd. New Delhi

2. Eugene Brigham & Erhardt: Fundamental of Financial Management, 10e Thomson, 2006.3. Solemen Ezra & Pringle John. J: An Introduction to Financial Management, Prentice Hall of

India (P)Ltd. New Delhi4. Khan M.Y. & Jain PK: Financial management, Tata Mcgraw Hill Publishing Co.Ltd,

New Delhi5. Pandey I.M.: Financial Management ,Vikas Publishing House (P) Ltd6. Chandra Prasanna: Financial management, Tata Mcgraw Hill Publishing co. Ltd.

New Delhi.77. Kulkarni P.V.: Financial Management, Himalaya Publishing House, Bombay8. Erhardt & Brigham: Corporate Finance: A Focused Approach, Thomson, 20059. Srivatsava R.M.: Essential of Business Finances, Himalaya Publishing House, Mumbai10. Lasher: Practical Financial Management, Thomson 2005

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BUSINESS ENVIRONMENT AND POLICY

Semester - I


Objective: To acquaint the student with the national and global environment pertaining to business '

Unit- I: Components of Business Environmenta) Business environment - micro-environment macro environment.

b) Policy environment - industrial policy - industrial policy resolution 1956 - newindustrial policy 1991 - shift in focus.

Unit - II: Liberalization and Globalizationa) New economic policy - economic reforms - liberalization.b) Globalization - meaning - stages - factors facilitating and impeding globalization in India - consequences of globalization for India.

Unit - III: Public Sector and Privatizationa) Public sector - changing role of public sector - relevance of public sector - public

Sector reforms.b) Privatization and disinvestments - concepts - forms.

Regulatory framework with reference to insurance, power and telecom sectors.

Unit - IV: Foreign Capitala) Foreign direct investment - policy - trends -problems - consequences - FEMA. Multinational corporations - entry strategies - role - growth – problems Consequences.b) Mergers and acquisitions - reasons - trends - advantages and disadvantages competition law.

Unit -- V: WTO and Trade Policya) WTO agreements - Agreement on Agriculture (AOA) - Multi-fibre Agreement (MFA) - Trade Related Intellectual Property Rights (TRIPS) - Trade Related Investment Measures (TRIMS) - General Agreement on Trade in Services (GATS) - Barriers to trade.

b) Trade policy changes consequent to WTO - recent Exim policy - consequences of WTOFor India.

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References:

Books:

1. Prof. Laxmi Narain - Globalization - liberalization and privatization of public enterprises - Sultan Chand & Co.2. S.K.Misra & V.K.Puri - Economic Environment of Business - Himalaya Publishing

House 3. I S.K.Misra &V.K.Puri - Indian Economy - Himalaya Publishing House4. Francis Cherunilam - Global Economy and Business Environment - Himalaya Publishing House5. Francis Cherunilam - Business Environment - Text and Cases - Himalaya Publishing House6. Aswathappa - Business Environment - Himalaya Publishing House 7. Dutt and Sundharam - Indian Economy 8. Ray: Indian Economy, PHI 2007

Reports:1. World Development Report 2. Human Development

Report3 India Development Report 4. Pre-budget economic urvey

PeriodicalEconomic and Political weeklyBusiness India 'Business WorldBusiness TodayFinance IndiaBusiness standard

MASTER OF FINANCE AND CONTROLBUSINESS ORGANISATION AND MANAGEMENT

Semester - I


Objective: To introduce the students to the various concepts of Business Industry, Commerce and Trade and Management.

UNIT- I: INTRODUCTION:

Concepts of Business, Industry, Commerce, Trade, Plant and Firm. Objective of Business – Forms of Business Organisation and their salient features – Sole Traders, Partnership, HUF – Companies and Co-operatives – Company Promotion and Documentation.

UNIT-II: STRUCTURE AND SIZE OF INDUSTRY:

Industrial Structure – Public, Private, Joint and Co-operative sectors, Definition of size of industrial unit – Measurement of size – Optimum size of firm – Different optima – Representation Firm.

UNIT-III: STATE AND INDUSTRY AND INDUSTRIAL FINANCE:

Factors affecting Industrilization – Industrial policy – Liberalization and consequences – Globalizations – Privatization – Role of MNC in Industrial development – Definition of SSI – Problems and prospects of SSI.

Long Term and Short Term Finance: Fixed and working capital finances – Sources of Finance – Stock Exchanges – Functions and services Working of stock exchanges in individual Mutual Funds – Role of SEBI in regulating capital market.

UNIT – IV: INTRODUCTION TO MANAGEMENT:

Definition and Significance of Management – Different approaches to Management- Functions of Management.

UNIT-V: PLANNING AND ORGANISATION:

Meaning – Importance and steps in planning – Types of Plans, Meaning and forms of Organisation, Authority and power – Distinction – Delegation.

SUGGESTED READINGS:11. Koontz & O’Donnel: Principles of Management, TMH12. Dubrin : Essentials of Management, Thomson13. Davar R.S Rustam: The Management Process,14. Bhushan: Business Organisation and Management15. Jagdish Prakash: Business Organisation and Management16. Shukla: Business Organisation and Management

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MANAGEMENT CONTROL AND INFORMATION SYSTEMS

Semester - II


Objective of the Course :

This course prepares the students to appreciate the necessary dimensions of developing such systems and enables them to become effective management professionals in Finance/Accounting areas. It also provides practical knowledge of computerized accounting packages.

Unit-1: Management Control Structure:

Nature of Control – Control in Organizations – Planning and Control Processes – Overview of Management Control Systems – Management Control Information;Responsibility Centers – Investment Centers – Revenue Centers – Expense Centers – Discretionary Expense Centers – Administrative Centers – Development Centers – Marketing Centers – Profit Centers – Other Profit Centers – Measuring Profitability.Transfer pricing – Meaning and Objectives – Methods.

Unit- II: Management Control Process

Management Control Process – Programming: The Process of Programming – Principal Steps in Programming Process:

Budget Preparation – Budget Vs. Forecasts – Types of Budgets(Expensive Budget, Revenue Budget, Profit Budget) – Review of and approval of Budgets – Budget administration – Behavioral aspects of Budget.

Analyising and reporting of financial performance: Analysis of variances (revenues variance, cost variance), reporting variances. Factors affecting performance appraisal – Financial measures – The profit budget in performance appraisal – Tight Vs. Loose delegation – Other financial performance Measures – Non-budgetary techniques – Non-financial measures.

Unit-III: INFORMATION SYSTEMS IN ORGANIZATIONS

Information Systems – Organization, Management & StrategyInformation needs of management at various levels of organization-flow of Information in the organizations – Top down – Bottom up – Integration Information Systems – meaning – nature – Role.

Current Issues in Information Systems – Role of Intranet and Internet in the development of financial information system for a Business organization – E-Commerce – Enterprise Resource Planning – SCM – CRM – Integration planning of the above with financial system.

Unit-IV: Approaches and Types of Information Systems:

Approaches of Information Systems – Technical – Behavioral – Social-technical Approaches – Types of Information Systems in Business Organizations – Decision Support System – MIS – Expert System – Knowledge Management System – Transaction Processing System – Importance of Information Systems in supporting various levels of Business Strategy formulation and decision making – Software and Hardware requirements for developing efficient Information System.

Unit-V: Computerised Accounting and Accounting Packages:

Computeriesed Accounting – Features – Advantages and Disadvantages – Computerized Accounting and Manual Accounting – Creation of Company – Grouping of Accounts – Creation of Accounts and Inventory – Entering transctions – Vouchers – Tyepes – Numbering deleting and editing vouchers – Opening and closing balances – Stock valuation. Reports generation: Trial balance – Profit and Loss Account – Balance Sheet – Balance Reconciliation – Stock Report – Budget Variance Report - Transaction list – Customer /Supplier Report – Value Added Tax (VAT) – Register – Report – Service Tax – Register – Report.

Lab work: Accounting Package – Tally and others.

References:

1. Anthony and Dearden: Management Control Systems TMH2. Stair: Principles of Information Systems, 8e – Thomson3. Turban: Introduction to Information Technology, Wiley India4. O’Brien: Introduction to Information Systems, 4e, TMH5. Cyzanshy: I.T - Inside and Outside – Pearson Education6. Handbooks and documentation of the relevant package for UNIT-V.


SECURITY ANALYSIS AND ASSET MANAGEMENT

Semester - II


Objective: To familiarize the student with the principles and practice of Risk-Return analysis, Asset and Portfolio Management;

UNIT-I SECURITIES MANAGEMENT

Money market sercurities – Bonds and debentures – Equity shares – Convertible securities – Primary market – secondary market – Market Indexes – Construction of an Index – Arbitrage.Assets Security Management – Investment Assets (Treasury Management, Bond Management); Funded assets – Loan and advances; Non-funded assets – Cutomer acceptance and obligations.

UNIT- II: EQUITY AND BOND VALUATION:

Fundamental analysis – Capitalizing earnings – Price – Earnings (PE) Ratio – Economy, industry and firm – Charting and technical analysis – Market Interest rates – Yeidl spreads – Yield to maturity – Yield curve – Interest rate swaps and bond swaps – spot Effiecient Market Hypothesis (EMH).

UNIT –III: RIST – RETURN RELATIONSHIP

Risk management - Risk of Securities -.Systematic Risk - Interest Rate Risk -Market Risk –Purchasing Power Risk-Unsystematic Risk -Business Risk -Financial Risk – Efficient Market Theory.

Measurement of Risk and Return, Expected Return, Standard Deviation and Variance of Securities (Including simple problems)

Unit -IV : Portfolio Management

Diversification - Portfolio Analysis. Traditional Vs Modern - Rationale of Diversification - Asset allocation and Portfolio design - Markowitz Diversification - Effect of Combining two securities - Measurement of Expected Return of Portfolio - Portfolio Risk – Capital Assets Pricing Model (CAPM) (including simple Problems).

UNIT –V: DERIVATIVES:Futures and Options – Index Futures – puts and calls – Applications of derivatives – Hedging and speculation (Theory only)

SUGGESTING READINGS:1. Agarwal: A Guide to Indian Capital Market, New Delhi2. Stulz: Risk Management and Derivatives, Thomson 20073. Avadhani: Indian Capital Markets, Himalaya Publishing House.4. Reilly: Investment Analysis and Portfolio Management, Thomson5. Devin: Portfolio Management, PHI6. Mayo : Investment, 7e , Thomson7. Alexander & Sharpe: Fundamentals of Investments, PHI8. Gangadhar : Investments9. Machiraju: Working of Stock Exchanges in India – New Age10. Strong : Derivatives: An Introduction, Thomson11. Preeti Singh: Investment Management, Himalaya Publications12. Bhalla: Investment Management, S. Chand & Company.13. Whatsham: Futures and Options in Risk Management. Thomson


FINANCIAL INSTITUTIONS AND MARKETS

Semester - II

Paper Code 203 Exam. Duration 3 HoursPPW: 5 Max. Marks: 80+20 IAObjective:

To provide the students with an exposure and thorough understanding of Financial Institutions and Markets and its components. The focus is given more on the Stock market operations, regulatory provisions, financial institutions and markets.

UNIT I: Introduction

Financial Institutions - Meaning - Characteristics - Broad Categories - Money market institutions - Capital market institutions - Indian Financial institutions - FtnanClllo Markets - Meaning - Definition - Role - Functions - Constituents - Financial Instruments - Capital Market Instruments - Indian Money and Capital TIfll'kCtS - Glohvl Financial Markets

UNIT II: SEBI and Regulations of Primary and Secondary Markets

Securities and Exchange Board of India (SEBI) - Primary Market -- Regulations of Public Issues - Guidelines for Debentures - Issue of Shares - Underwriting - Employee Stock Option Scheme - Issue cSf Shares through OTC exchange of India - Book Building - Secondary Market - Registration of Members of Stock Exchange - Stockbrokers and Sub-brokers Regulations - Prohibition of Fraudulent and Unfair Trade Practices - Monitoring of Price Manipulation - Surveillance and Enforcement - Insider Trading

UNIT III: Money Market and Capital Market

Moiey Market - Meaning - Characteristics - Objectives - Importance - Functions - Segments - Financial Institutions - Money market and Capital Market - Global Money Market - Call Money Market - Meaning - Features - Benefits - Indian Call money market - nature of dealings - Participants - Modes of operation - Call money market rates - Commercial Bill Market - Meaning - Features - Satellite Dealers - Capital market - Meaning - Indian Capital Market - New Financial Instruments - Capital Market Doldrums - Harshad Factor - Measures of Rejuvenation - Recent initiatives in the Indian Capital Market

UNIT IV

Clearing Corporation of India Limited (CCIL) - Settlement risks - Settlement method - lusk management system - Maa aging specific risk - Benefits - Modern technology - Outlook for the future - CredA Rating and Information Services of India I.imited ('CRISIL) - Range of Services - Strategic Alliance - Strengths - Achievements -Discount and Finance House of India Limited (DFHIL) - Financial resources - Objectives - Operations - Achievements - Challenges ahead

Investment Information and Credit Rating Agency of India Limited (ICRA) - Genesis -Range of Services - Corporate Governance Rating services - Mutual funds rating - Corporate review - Achievements - Securities Trading Corporation of India Limited (STCI) - RBI Support - Current Activities - Money Market - Money Market Instruments

UNIT V

a) Capital Market Instruments - Preference shares - Equity shares - non-voting equity shares - Convertible cumulative preference shares - Company fixed deposits - Warrants - Debentures and Bonds - Global debt instrumentsCapital Market reforms - General Capital Market reforms - Primary market reforms - Secondary market reforms

b) Depository system - National Securities Depository Limited (NSDh) - Promoters - Objectives - Benefits of depository system.

c)Internet Stock Trading - Meaning - Features - Current Scenario - Internet Trading alternatives - Regulating internet stock trading - IPOs on the internct - Indian experience -13-1P0 - f?-I3rokint; and Inlcrnct SUx;l< "I rauling

SUGGESTED READINGS

1. Machiraju, H.R., Indian Financial System, Vikas Publishing How,e Pvt. Ltd.

2. Gursamy S., Financial Markets and Institutions, Thomson.(2004)3. Vasant Desai, Indian Financial System, Himalaya Publishing House 4. Gurusamy, S. Financial Services and System, Thomson.5. Madura: Financial Institution and Markets, Thomson 20076. M.Y.Khan, Financial Services:7. Preeti Singh: Investment Management, Himalaya Publishing House.


IT & E-COMMERCE

Semester - II

Paper Code 204 Exam. Duration 3 HoursPPW: (3T+2P) Max. Marks: 56+14 IA

Objective: Information Technology is useful in acquisition, processing and Organization of data, be it text, graphical, audio, video or multimedia. Main aim of the subject is to make students know and learn about Information Technology through its applications. Most stress is therefore laid on learning of Computers from users' point view. The course contents also aimed at evaluating the Indian Bank Vision vis-a-vis the Global standards. In this context the technology implementation in Banking and systematic progress of E-Commerce is evaluated.

UNIT 1:. INTRODUCTION TO INFORMATION TECHNOLOGY

Data, Information and knowledge and IT. Changing decision-making scenario; Quality of information; IT Applications in various sectors, such as Banking, Insurance, Finance, Health care, Medical field, education, Transport, traffic, Manufacturing and retail and distribution.UNIT II: DATA ACQUITSITION AND ORGANISATION

Acquisition of Textual Data - Acquisition of Pictures-Storage Formats for Pictures, Image Compression Fundamentals, Image Acquisition with Digital Camera, Exercises, Acquisition of Audio Data - Basics of Audio Signals and their acquisition and their storage, Compression of Audio Signals, Exercises; Acquisition of Video-Capturing a moving image with a Video Camera, Compression of Video data, MPEG Compression, Exercises; Procession Multimedia Data-Graphics Processing, Audio Signal Processing, Exercises.

UNIT III : MS OFFICE PROGRAMMES-Word, Excel, Access and Power Point

Importance of MS Office; MS Word-Parts of window. Mouse, Mouse operations, Key board operations, Important keys, Formatting features, Toolbars and their icons, Creating a document/Template, Mail merge, Macros-Exercises, MS ExcelEntering and Editing text, Entering formulae, Centering across cells, Entering dates, Menus, commands, toolbars and their icons, Currency format, Data sorting, Data filters Functions, Round, SQRT, Average Max, Min, COUNT, SUM, IF, SUMIF, ABS, CELL, TODAY; FINANCE FUNCTIONS, SLN, SYD,PV,NPV, IRR, IPMT, FV DB DDB, VDB, CUMPRINC, CUMIPMT, AMORDEGRC, Exercises, MS Power point-Uses, Toolbars and their icons & commands, Navigating, Preparing a presentation, content Wizard, Exercises.Unit-1V: E- Commerce, Internet and E-Banking:

Introduction-Concept of E-commerce, Elements of E-Commerce, Impact of Internet on e-commerce, e-commerce in Indian Scenario, Economic Potential of e-commerce, e-commerce concerns & M Commerce.Implementing E-Commerce, Creating an E-Commerce Website, E-Commerce Implementation -Technology - Constraints in implementation of E-Commerce - E-Commerce-Distinct Advantages & Business Models of E-CommerceIntroduction to Internet, Growth of Internet, Internet-Gateway to Digital World, Internet Governance, World Wide Web, Dynamics of Internet Banking, Internet Banking-A critics Viewpoint, Intranet Portal, Intranet Portals- A new way to Bank, E-Sourcing, ETrading, Net Telephony, Advertisement and Marketing through Internet - M-Banking, Data Warehousing and Data Mining.

Unit-V: Net Work and Infrastructure for E-Payment Systems, E-Cheques, E-Payment Channelsand Security.

Basic Networking Infrastructure, Networking Standards, Electronic Payment Gateways, Additional Requirements for E-Commerce, Web Technology Products.

Banking Network in online Commerce, Electronic Cheques, Electronic Cash, Electronic Credit, Electronic Purse, Smart Cards, SWIFT, ECS, etc., Designing Electronic Payments and Settlement Systems and Operational Risks and Legal Issues.

Security concerns of E-Banking - Encryption Techniques and Digital Signatures - Public Key Infrastructure - Digital Copyrights and Electronic Commerce - Firewalls and Network Security - Secure Socket Layer and Secure Electronic TransactionLAB WORK: MS Office - MS Word, MS Excel, Power Point; Applications under MS Excel and Access; Acquisition of data- Textual, Audio and Video.

Prescribed books:

1. Effy Oz: Management Information Systems, 5e, Thomson 2007

2. V.Rajaraman='Introduction to Information Technology-Prentice Hall of India Private Limited.

3. Sanjay Saxena-A First Course in Computers-Vikas Publishing House.

4. Morley: Understanding Computers. Thomson 2007

5. Laudon & Laudon-MIS, Organisation and Technology, MC Grawhill

6. Stair: Principles of Information Systems, 8e, 2007

7. Schneider: Electronic Commerce, Thomson 2007


FINANCIAL SERVICES

Semester - II


OBJECTIVE: To acquaint the student with Innovative financial services offered to met the varied requirement of both the corporate and Individual customers.

UNIT-I: AN OVERVIEW OF THE FINANCIAL SERVICES

1. Meaning – Classifications – Traditional Activities – Financial sector reforms and Financial Innovations in India – Banking and Non-Banking services

2. Overview of Financial products and services – Merchant Banking. Loan Syndication, Leasing, Mutual Funds factoring, Forfeiting, Venture capital, Custodial services, Corporate, Advisory services, Depository services, Securitization, Under-writing services ( Banks and Insurance), banking services – Bancassrance services, Credit rating, Credit cards, Derivatives Mergers, Acquisitions and Amalgamation – Services in Forex Market, Lines of Credit – Innovative Finance Instruments – Micro Credit Finance – Importance and different products/schemes – Challenges facing the financial services sector.

UNIT-II: LEASE, HIRE PURCHASE AND HOUSING FINANCE

1. Leasing – Financial lease and Operating lease – Differences between Lease and Hire purchase – Types of financial leasing – Advantages of leasing – Consideration under lease Vs. Buy decision-leasing in India – Problems of Leasing companies – RBI guidelines on leasing and finance companies.

2. Hire Purchase – Terms of the agreement under hire purchase – types of hire purchase – Advantages

3. Housing Finance – Housing Finance policy and Role of National Housing Bank (NHB) – Housing and Urban Development corporation (HUDCO) – Role of Housing Finance Corporations and the housing schemes – Recent Developments

UNIT-III: MUTUAL FUNDS:

Mutual fund – fund unit Vs. Equity share – Importance of Mutual funds – Types of Mutual funds- main features of the close ended funds – Open ended funds Income funds Growth funds – Risks involved – Organisation of firm – Facilities available to investors – guideline from the government of India – Recent reforms in mutual funds – Banks providing MF services – Factors to be considered in selection of fund – reasons for commercial banks to offer mutual funds – Scenario of Mutual funds in India – Problems in future prospects.

UNIT-IV: DISCOUNTING, FACTORING AND FORFEITING:

Discounting factoring – Modus Operandi of factoring scheme – Terms and conditions in factoring agreement – function of factoring services - Types of factoring – Role of Banks in providing discounting, factoring and forfeiting services , Cost of factoring and pricing of factoring services – Benefit to the clients – Export factoring – Edifactoring : Forfeiting – factoring Vs. Forfeiting – Advantages and limitations of forfeiting – Forfeiting in India.

UNIT-V: SECURITISAION OF DEBT

Meaning and Concept of Securitization – Structured securities Vs. Conventional Securities – Securitization Vs. Factoring – Operational mechanism of securitization – Types of securitized assets – Securitization and Role of Banks – Advantages and limitation of securitization – Future prospects of securitization.

REFERNECES:

1. Gordon: Financial Markets and Services, 2e Himalaya 20032. Gurusamy: Financial Services & Markets, Thomson 20053. Gurusamy: Financial Systems and Services, Thomson4. Avadhani: Marketing of Financial Services, Himalaya 20045. Madura: Financial Institution & Markets, Thomson 20076. Pathak: Financial Markets and Services, Pearson 20057. Khan & Akbar Ali Khan Sudershan: International Trade &

Finance, Himalaya 2006


BUSINESS ACCOUNTING

Semester - I


Objective: To enable the students to acquire basic fundamental knowledge of business accounting; ot acquaint students as to how business transactions are entered into all books of accounts; to acquaint the students about the preparation of final accounts, preparation of bank reconciliation statement and preparation of business accounting and their applications to measure the performance of business.

UNIT – I : Introductiona. Definition, meaning, need and scope of accounting – Book keeping and accounting –

Advantage and limitations of accounting process – Accounting Concepts – Introduction to Accounting Statndards

b. Journalizing – classification of accounts – Ledger – Interpretation of balance of ledger accounts – subsidiary books including different types of cash books analyzed petty cash book and the imprest system.

UNIT –II: Preparation of Final Accounts:

a. Final Accounts of sole trader – Trial balance – Capital and Revenue Expenditure and Receipts – Trading Account – Profit & Loss account and Balance Sheet – Adjusting and Closing entries – Depreciation – Bad debts, Provisions for Bad Debts, Provisions for Discounts on Debtors – Other Adjustments for Final Accounts: Accruals, Prepayments etc. – Introduction to Compute Accounting ( Including simpe problem).

b. Errors and their Rectification – Types of errors – Rectification before and after preparations of final statements of Accounts – Suspense Account – Effect of erros on profit ( Including simpe problem).

UNIT-III: Bills of Exchange

Bills of Exchange – Definition – Promisory Notes and Bills of exchange – Recording of transactions relating to Bills – Books fo Drawer and Acceptor – Honour and dishonour of Bills – Renewal of bills – Retiring of bills under rebate – Accommodation bills. ( Including simpe problem).

UNIT – IV: Consignments and Joint Ventures:

Consignments – Features, Proforma invoice – Account sale decreed commission – Accounting treatment in the books of the consignor and the consignee – Valuation of consignment stock – Normal and abnormal loss – Invoice of goods at a price higher the

cost price – Joint Ventures – Accounting procedures – Joint Bank Account (Including simpe problem).

UNIT-V: Bank Reconciliation Statement:

Bank Reconciliation Statement – Need – Reasons for difference between cash book and pass book balances – problems on favourable and over draft balances – Ascertainment of correct cash book balance. ( Including simpe problem).

SUGGESTED READINGS:1. A N Agarwal : Higher Science of Accountancy2. Jain & Narang: Advanced Accounting3. Gupta & Radhaswamy: Advanced Accounting4. Warren: Financial Accounting5. Grewal: Introduction to Accountancy6. Patil & Kollahalli: Principles & Practice of Accounting


QUANTITATIVE TECHNIQUES FOR BUSINESS DECISIONS

Semester - III


OBJECTIVE: The purpose is to impart inferential skills to the student by using quantitative Techniques for business decisions.

UNIT- I: STATISTICAL ESTIMATION AND HYPOTHESIS TESTINGIntroduction to Hypothesis testing: Meaning of Population, sample and sampling distribution - parameters and statistics - Central limit theorem - Concept of Standard Error - Confidential limits - Estimation of population parameters - properties of a good estimator - Point and interval estimation - Hypothesis Formulation and testing procedure - Type I and Type II errors - one tail and two tail tests (Theory only) Sampling of Attributes -: Estimation and testing Number and Proportions of Successes, Difference between two proportions (including problems).

UNIT- II : SAMPLING OF VARIABLESLARGE SAMPLES: - Difference between large and small samples - Estimating population mean - testing the significance of Mean - Significance of the difference between means of two samples - Significance between the standard deviations of two samples (Including problems).

SMALL SAMPLES: - 't' test - fixing fiducial limits to population mean - testing the significance of the mean - testing the significance of the difference between two independent means - testing the significance of the difference between two dependent means (Including problems). .

UNIT- III : ANALYSIS OF VARIANCE AND STATISTICAL QUALITY CONTROLF test - meaning - Applications of F test - ANOVA - Assumptions - Procedure - one way and two-way analysis of variance (including problems) .

STATISTICAL QUALITY CONTROL:- Introduction - Chance and Assignable Causes of Variation Uses of SQC - Process Control and Product Control- Control Charts - Control Charts for Variables -X: Chart - Range chart - Standard deviation chart - Control charts for attributes - C chart -p chart - np chart.

UNIT IV – NON- PARAMETRIC TESTS:Association of Attributes: Meaning – Distinction between Correlation and Association – Methods of Studying Association – Interpretation of Results. Meaning and application of Non-parametric Tests –

Chi Square Test – Definition – Conditions for Appling Chi Square Test – Yates’s Correction – Uses and Limitations of Chi Square Test – Chi Square Test for Testing the Independence of Attributes – Chi Square Test for Goodness of fit ( Including Problems)

One Sample Tests- Kolmogorov-Smirov One Sample Test –Runs Test for Randomness, One Sample Sign Test

Two Sample Tests – The sign test Mann-Whitney U Test and Wilcoxon Matched –Paired Signed Rank Test.

K Sample Tests – Median Test and Krusdkal – Wallis Test.

UNIT V - LINEAR PROGRAMMING:Linear Programming Meaning - Requirements for application of linear programming - assumptions advantages - application of LP - Formulation of LP problems (including simple problems)Graphical solutions of Linear Programming problems with two variables only (including simple problems).

SUGGESTED READINGS:

Levin and Rubin : Quantitative Approaches in Management, Pearson Education/PHI

S.C.Gupta : Fundamentals of Statistics, Himalaya Publishing House

Anderson Quantitative Methods for Business Decision, 8e Thomson

Barry Render, Ralph M. Stair Jr., Michael E.Hanna: Quantitative Analysis for Management, 9e PHI

Anderson Introduction to Management Science: Quantitative Techniques for Decision Making, 11e, Thomson

G. Gopikuttan: Quantitative Methods and Operational Research Himalaya Publishing House.

D.C.Sancheti & V.K.Kapoor Statistics, Sultan Chand & Sons

Anand Sharma: Quantitative Techniques for Decision Making Himalaya Publishing House.

Mendenhall Introduction to Probability and Statistics, 12e Thomson

Shenoy .G.V.,: Quantitative Techniques for Managerial Decisions. New Age

Gupta and Khanna Quantitative Techniques for Decision Making, 2e PHI 2006.


PROJECT MANAGEMENT

Semester - III


Objective: The objective of this course is to enable the students to gain basic knowledge about the concept of project, project management, project life-cycle, project appraisal; to acquaint the students about various issues of project management; preparation stages of the project proposals and how the costs and benefits are determined. Further, the course aims at providing the students an exposure to project financing, monitoring and implementation techniques also.

UNIT-I: BASICS OF PROJECT MANAGEMENT:

Concept of Project Management - Project environment - Types of Projects - Project life cycle - Project proposals - Monitoring project progress - Project appraisal and Project selection - Causes of delay in Project commissioning (External causes and Internal constraints) - Remedies to avoid overruns - Strategic Issues and variables involved in Project identification and its commissioning -

Introduction to Use of Software in project management- Software development Process - Selection of software packages for Project management-.

UNIT-II: PROJECT IDENTIFICATION AND FEASIBILITY:

Identification of Investment opportunities - Sources of new project ideas, preliminary screening of projects - Feasibility studies and reports - Stages of Project feasibility study - Components for project feasibility studies - Broad aspects of appraisal: Market feasibility ( Market survey - Categories of Market survey - steps involved in conducting market survey - Demand forecasting techniques, sales projections); Technical feasibility (Production technology, materials and inputs, plant capacity, site selection, plant layout, site preparation, civil works and structures, details of machines and equipment, specifications and cost determination); Operational feasibility (Heads of cost, estimates of cost of production, Breakeven point, economics of working); Managerial Feasibility -Project organization and responsibilities.

UNIT-III: FINANCIAL ANALYSIS:

Capital Expenditure - Criteria and Investment strategies - Capital Investment Appraisal Techniques (Non DCF and DCF), risk analysis.

Cost and financial feasibility - Cost of project and means of financing, Project Life-Cycle Costing (LCC) - Objectives and significance of LCC - Estimation of cash flows - Estimation of Capital costs and operating costs; Revenue estimation - Incomedeterminants - Forecasting income - Preparation of detailed financial projections; Use and preparation of CMA Reporting Formats - Bank appraisal of the Project finance - Submission of statement - Periodical follow up - Terms and conditions.

Project cost reduction methods (Value engineering, TQM, Standardization, project inventory, sub-contracting, Judicious time management, maintainability and others);

UNIT-IV: PROJECT MONITORING AND CONTROL:

Network Concept (Concept of event, activity, ladders, numbering of events)- Objectives of network - Rules for drawing a network - Advantages of network planning/scheduling. Development of Programme Evaluation & Review Technique (PERT) - Benefits of PERT - Assumptions in PERT modeling - Construction of PERT (Project duration and valuation, slack and critical activities, critical path interpretation);

Critical Path Method (CPM) - Difference between PERT and CPM - Assumptions in CPM modeling - Aspects of Time - Cost Trade-offs - Effective Project cost control ; Resource Planning, Resource allocation and control.

UNIT-V: LEGAL ASPECTS OF PROJECT MANAGEMENT:

Legalities - Basic legal provisions - Agency and Power of Attorney - Sale of Goods Act - Central Sales Tax - Transfer of Title - Negotiable Instruments - Bailment - Indemnity - Excise duty -VAT.

Letter of Credit - Bill of Lading -Mode of transportation - Carriage of Goods and the provisions thereof.

Insurance for projects - Important risks in Projects and relevant insurance policies.

(Note: Financial appraisal techniques of Non-DCF and DCF are covered in the subject Financial Management. They will not be taught in this paper. Similarly, market survey and steps involved in conducting market survey are covered in marketing management subject. They will not be taught in detail in this paper.)

Suggested Readings:

1. Gido: Effective Project Management, 2e, Thomson, 20072. Prasanna Chandra: "Projects,Planning,Analysis,Selection, Financing,

Implementation and Review" Tata McGraw Hill Company Pvt. Ltd., New Delhi.(1998)

3. Damodaran: "Corporate Finance"; Johy Wiley Publications.4. Erhardt & Brigham: Principles of Corporate Finance; Thomson, 20065. Singh,M.K.: Project Evaluation and Management.6. Prasad, N.K.: Principles and practice of Cost Accounting. 8. Pahwa,HPS: Project

Financing.

7. Clifford,F.Gray, Erik W.Larson: Project Management, the Managerial Emphasis, McGraw Hill-2000.


MARKETING OF FINANCIAL SERVICES

Semester - III


OBJECTIVE:The objective of this paper is to acquaint the students about the marketing mix

of Banking and Insurance services and strategies for marketing of Banking and insurance services.UNIT-1: SERVICES - AN OVERVIEW:Services - Importance of service marketing - Services marketing environment (Political, legal, economic, social, cultural, technological and others) - Reasons for the growth of service sector - Differences between goods and services and their classification - Trends in the development of services in the Post reforms period.UNIT-III: CONSUMER BEHAVIOUR AND MEASURING THE QUALITY OF SERVICES:Consumer Buying Process - Segmentation - Target market selection - Position services -Services marketing mix (Product, Price, Promotion, Place, Channels of distribution, Process, people).Service Quality dimensions - StrategiesF to deal with service quality dimensions; Internal marketing- definition - aspects - approaches - value and practices; External Marketing; Interactive marketing - introduction - design - development - methods; Relationship marketing - definition - application - customer relationship, Usage of technology in services marketing.UNIT-11: MARKETING OF FINANCIAL SERVICES:Introduction to Marketing of Financial Services - New Challenges - Special features of service marketing - Basic bricks for marketing

strategies - Marketing services in banking field - Marketing services in Mutual Funds - Marketing services in Insurance - Need for meeting global competition - Customer Satisfaction.UNIT-IV: MARKETING OF BANKING SERVICES:Introduction - Marketing of Banking services - Marketing mix of Banking services (Product, Product Development, Promotion, Pricing, Place or Distribution Channels, Process, People -Insurance based product marketing - Corporate segmentation marketing - Retail marketing - Internet marketing - Consumer oriented marketing - Ancillary services marketing.

UNIT-V: INSURANCE MARKETING:Introduction to Insurance marketing - Marketing of Insurance Products - Direct Marketing - Salesmanship in Insurance - Marketing mix of Insurance - Intermediaries and distribution channels - Bancassurance - Bancassurance schemes / products - The Marketing mix of insurance services (Product, Product Development, Promotion, Pricing, Place or Distribution Channels, Process, People) - Client servicing in Marketing - Critical success factors for Insurance Marketing - Marketing strategies of Insurance Players in India - Marketing strategies of prominent Insurance players.References:

1. M.K. Rampal, S.L.Gupta (2002): Service Marketing Cocnepts, Applications and cases: Galgotia Publishing Company, New Delhi.

2. Hoffman: Services Marketing, 3e , Thomson 2007.3. Mohan Rao, R.L. Hyderabad: Financial services - Text , Cases and

Strategies; Deep and Deep Publications Pvt. Ltd. , Delhi.4. Gurusamy: Financial Services and Markets, Thomson 20055. J. Owen Stalson : Marketing Life Insurance; Mc Cahan Foundation

Publications.6. Avadhani, VA: Marketing of Financial Services; Himalaya

Publishing House. 7. Course material of Institute of Banking and Insurance Institute of

India.8. M.Y. Khan: Financial Services.


TAX PLANNING AND AUDIT CONTROL

Semester - IV


Objective: To acquaint the student with theoretical and practical knowledge of Tax Planning and Auditing techniques.

UNIT - I: INTRODUCTION TO TAX PLANNING

Nature of tax - Essential components in levy of tax - Legal principles of taxation laws - Five basic Rules of interpretation of statutes - Law Lexicon and Legal Maxims - Concepts of Tax Avoidance, Tax Evasion, Tax planning and Tax management (Only Theory).

UNIT - II: TAX PLANNING - INDIVIDULAS

Planning with reference to all five heads of Income for Individuals - Salaries, House Property, Profits From Business & Profession capital gains and other sources (Theory and Simple Problems).

UNIT - III: TAX MANAGEMENT DECISIONS

Tax considerations arising with regard to specific managemPnt decisions, such as make/buy, own/lease export/local sale, shut down/continue, Expand or Contract, Merger and Amalgamations and New Capitz Investment. Guidelines to Tax planning - Relief's - Concessions - Rebates - Deductions - Incentives {Payment of Advance Tax - Filing of Returns - Refunds - Penalties for non-compliance, (Problems on ta planning with reference to tax liability of Firms and Companies should be worked out) (Theory an Simple Problems).

UNIT - IV: AUDITING

Meaning - definition - Objectives - Types of audit: Internal audit, statutory audit, Government audi Balance sheet audit, Periodical audit - Position of an auditor in case of fraud - Generally accepted auditin practices with special reference to Banks and Insurance - advantages and limitations of audit - Person, qualities of an auditors.

UNIT - V: AUDIT PLANNING AND CONTROL

Determining the scope of audit - Audit programme and planning - Internal control: meaning - importancf Internal check - Internal audit - Vouching of cash transactions and trading transactions -Verification an valuation of assets and liabilities - Audit of sole trader and partnership firms.Auditing Procedure in Banks - Auditing Procedure in Insurance.

References:

1. Vinod K. Singhania : Taxmann's Indirect Tax Laws2. Bhagawathi Prasad : Direct Tax Laws and Practice Reading Material Published by ICAI, ICWA and ACS3. V.S. Datey : Indirect Taxes, Taxmann Publications.

4. Kamal Gupta :Contemporary Auditing

5. N.D. Kapoor :Auditing:

6. T.N. Tandon :Practical Auditing

7. Jagdish Prakash : Principles and practices of Auditing:

8. Course material of : Insurance Institute of India and Institute of Banking in India.


INTERNATIONAL FINANCE

Semester - IV


OBJECTIVE: To acquaint the student with International Finance environment and the channels of International financial flows, and expose them with different sources of international financing, how exchange exposure risk, what are the currency futures and option markets, what the modes and the methods of foreign trade financing.

UNIT-I: AN OVERVIEW OF INTERNATIONAL FINANCIAL MANAGEMENT AND FOREIGN EXCHANGE RATE MECHANISH

2. Need – Meaning, Nature and scope of International Finance – International Financial Management – International Finance Vs Domestic Finance ( Theory Only).

3. Foreign Exchange Rate Mechanism: Exchange rate quotations – Determination of exchange rate in the spot market – exchange rate determination in forward market – Factors influencing Exchange rate ( Including Problems)

UNIT-II: CURRENCY FUTRUES AND OPTION MARKETS

Introduction to derivatives market – Types of financial derivatives – Distinctive features of derivatives market – Traders in derivatives market – Currency futures – Future contracts Vs. Forward contracts – Pricing futures – Futures trading strategies ( Hedging, speculative trading and arbitrage strategies) – Currency options – Salient features and types of options – Futures Vs. Options – Pricing options ( Black Scholes option Pricing Model) – Opting trading strategies – Derivatives trading in India ( Theory Only)

UNIT-III: FOREIGN EXCHANGE EXPOSURE AND RISK:

Nature of exposure and risk – Exchange rate and interest rate volatility – Foreign exchange and risk – Classification of foreign exposure and risk – Transaction exposure – Operating exposure – Accounting treatment – Management of foreign exchange exposure risk through hedging (Including Problems)

UNIT-IV: INTERNATIONAL FINANCIAL INSTRUMENTS:

Channels of International Flow of funds – Euro currency market – Euro credit – Euro Bonds – Types of Euro Bonds – Euro currency deposits – Certificate of deposits and other instruments – Euro notes – Types of notes – Euro issues – Foreign Currency Convertible Bonds – Depository Receipts – Global Depository Receipt (GDR’s) – GDR issue mechanism – American Depository (Theory only)

UNIT-V: FINANCING OF FOREIGN TRADE

Introduction too foreign Trade financing – Export financing – Pre-shipment and Post-Shipment finance – Documentation formalities and procedures for the grant of packing credit – Documentation formalities and procedure for the grant of Post-Shipment finance – Modes and sources of import finance – Methods of payment – Role of Letter of Credit in import finance. (Only Theory)

REFERNECES:

1. Shapiro: Multinational Financial Management PHI,2. .Madura: International Corporate Finance, 8e Thomson 20073. Sharan: International Financial Management, PHI4. Clark: International Finance, 2e Thomson 20065. Bharati V Pathak: Indian Financial Management , Pearson6. Jeevenandam: Foreign Trade Finance and Risk Management, Sultan Chand7. Avadhani: International Finance, Himalaya


TAXATION

Semester - I


Objective: To acquaint the students with the basics and the latest developments in the area of Taxation.

UNIT I – INTRODUCTIONa) Introduction to Taxation – Cannons of Taxation – Types of Taxes (Direct and

Indirect) – Features – Differences – Constitutional Provisions relating to Taxes – Concepts of Tax avaoidance, Tax evasions, Tax Planning and Tax Management.

b) Income Tax: An overview of Income Tax Act 1961 – Basic Concepts – Person – Assessee – Previous year – Assessment year – Income – Gross Total Income – Taxable Total Income – Incomes exempt from Tax.

UNIT II – ASSESSMENT:Residential Status – Incidence of Tax – Rates of Tax – Income Tax authorities – Functions – Filing of different types of returns fo Income – PAN – Important due dates under IT Act – Types of Assessment – Penalities and Prosecutions.

UNIT III – WEALTH TAXIntroduction – Definitions – Assessee – Assessment year – Assets – Net worth – Valuation date – Rates of Tax – Persons liable for tax – Charge of Wealth Tax – Deemed Assests – assets exempt from Wealth Tax

UNIT III – INDIRECT TAXESa) An overview of Central Excise Act – Central Excise Tariff Act – Central Excise

Rules – Important terms and definitions – Goods – Excisable goods – assessee – Asseable value – Manufacturer – Cenvat – Meaning – Salient features.

b) Customs Act – An overview – Classification for Customs – Types of Customs duties – Exemptions – Overview of organisaional and authorities of Central Excise and Customs.

c) Service Tax – Indtroduction – Significance and rationale for Service Tax – Chargingof Service Tax – Taxable Service – Taxable Event – Person who has to

pay Service Tax – Service Provider and Service receiver – Registration – Records – Records – Payment of Tax.

UNIT V – APVAT and CSTa) Introduction of APVAT – Important terms and definitions – Registrations –

Assessment Procedure – Appeals – Revision – Recovery and Refund of Tax.b) Introduction to CST Act – Objects – Principles determining in the course of Inter

State Sale – Outsied a State – Import and Export – Determination of Turnover – Rates of Tax.

SUGGESTED READINGS:1. Vinod K Singhania – Direct Taxes – Taxman’s Publications2. BB Lal and N Vashisht – Direct Taxes – Pearson3. V S Date – Indirect Taxes – Taxman;s Publicaiton4. Andhra Pradesh Valued Added Tax – Ordinance and Rules issued by

Commissioner of Ceommerical taxes – Namplayy, Hyderabad – AP5. Gaur & Narang – Wealth Tax and CST Act-Kalyani Publishers6. PS Chandrasekhar – Essays on Central Sales Tax Act – Sai Publications7. Not Know Services – Taxman’s Publications


BANKING PRINCIPLES

Semester - III

Paper Code 304 BAN Exam. Duration 3 HoursPPW: 5 Max. Marks: 80+20 IA

Objective: To provide basic knowledge on Banking systems and functions and to help inunderstanding all aspects of banking the course is designed

Unit 1.Indian Financial System

Structure and Characteristics of Banking and Financial Systems, Classification of Banks. Role and Functions of Commercial Banks in IndiaRegulatory provisions/enactments governing Banks - RBI major Functions. Development Banks and Financial Institutions in India,Indian Capital Markets and Regulatory Body, Legislations.

Role and Functions of Mutual Funds, Insurance Companies, IRDA, Bank assurance. Retail Banking, International Banking

Unit 2.Functions of Banks

Relationship between Banker and Customer, obligations and rights KYC Norms; Types of Constituents; Deposit Products, and other ancillary services; Types of Loan Products and its features

Unit-3Negotiable Instruments Act

Payment and Collection of Cheques, Duties and Responsibilities of paying and Collecting Banker, Endorsements and Crossings of Cheques, Bouncing of Cheques and its implications. Banking Regulation Act Reserve Bank of India Act..

Unit-4Banking Technology

Bank Mechanization - Core Banking Solutions - WAN and LAN systems - On Line systems - Main Frame Networking Systems - Electronic Payment Systems - Cash Dispensers - ATMs - Anywhere Anytime Banking - EFT, Plain Messages and Current Trends in Information Technology.

Unit –5Reforms in Banking Sector

Social Banking, Nationalization of Banks, Branch Licensing, Liberalization Policies, Adoption to International Standards, New Generation Banks, Committees recommendations

References: 1. Banking Theory Law and Practice by Sundharam and Varshney2. Indian Institute of Banking and Finance- Associate

Examinations Syllabus3. McDonald: Management of Banking, Thomson, 2007


BANKING PRACTICES & OPERATIONS

Semester - III


Objective: This course is aimed at providing bird's eye view of the different aspects of bank practices and operations management. Indeed, a bank is a very important engine of growth and its mismanagement can lead not only to economic disruptions but have social repercussions. In the last decade or so, it has been seen that Banking has increasingly become a knowledge oriented sector rather than a compliance-related activity.Unit-1:Fund Management:

Managing the cost of Funds - Bank capital and Liquidity - Composition of Bank Liabilities (Small and Large) - Calculating Transaction Cost and Cost of Funds - Marginal Cost Analysis - Borrowings from Market.Risk based Capital Standards - Capital Planning - Bank Capital Structure - Effect of Capital Requirements on Bank PoliciesObjectives of cash management - Legal Reserve Requirements - Managing Float Money - Liquidity Planning and Measures of Liquidity

Unit-2: Extending Credit to Customers:

- Credit Policy and Loan Charters tics - Credit process - Evaluating credit requests - Credit analysis and Tools of assessment - Terms and

Conditions; Evaluating Retail Loans - Policy Guidelines - Consumer Credit Ratings - Loan Pricing - Types of Securities and Charges creation thereon

Unit-3: Rural Financing and Rural Banking in India:

Understanding Rural psychology - Credit Delivery Mechanisms - Multi Agency Approach - Rural Development Bank and other Creidt lending institutions - Schemes for rural lending and evaluation - Govt. Policies - Micro Finance and Self Help Groups and Mass Banking - Inclusive Growth - Priorities and practices for Inclusive growth.Unit-4: International Trade Finance:

Balance of Payments - Commercial Banks Role - Foreign Exchange Transactions and Rates - Financing Foreign Trade - Forward Exchange Markets - Exchange Controls - International Trade Terms and Agreements.

Unit-5: Marketing of Bank Products:

Marketing Management-Meaning, Importance and Functions-Marketing of Services Planning, Product Research & Development-Testing, Product Life Cycle, Modifications, New Product Development, Elimination, BrandingPricing-Objectives, Strategies and Methods, Factors influencing and Pricing Decisions Distribution, Factors influencing, Direct & Indirect Channels, Channel Functions and Services - Promotion, Promotion Mix and Role of Promotion in Marketing, MIS; Case Studies on Certain Bank Products.

References:

1. Peter Rose: Commercial Bank Management, Irwin Mc Graw Hill

2. McDonald: Management of Banking, Thomson 20073. T. Ravi Kumar: Asset-Liability Management, ICFAI Publication.

Course material of Indian Institute of Banking.


RISK MANAGEMENT IN BANKING

Semester - IV


Objective:The fundamental objective of Banks is to minimize risk and maximize the returns for improving the shareholders wealth and also focusing on sustained development. The objective of this coyurse is to expose the students to identify, assess, monitor and control risks associated with the financial institutions, in particular Banks.

Unit- 1: Asset Liability Management (ALM):

Introduction – ALM – Meaning – Significance – Objectives; Analyzing Bank performance using the Asset Liability Management Techniques – Components of Bank’s financial Statements – Balance Sheet – Relationship between the Balance sheet and the Income statements – Return on Equity – Banking Risks and Returns (Profitability, Liquidity, Solvency, Trade-Off) – Credit Risk – CAMEL Ratings and Financial Statement Manipulation – Asset Liability Management (ALM) implementation.

Unit-2: Alternative Models of Bank Performance

A critique of Traditional GAAP – Basel Performance Measures – Line of Business Profitability Analysis, Management of Market Risk and Non-interest Income and No Interest Expenses; Peer Group Comparison – Total Operative Revenues – Stock Market Risk Performance – Customer focused Performance.

Unit-3: Managing Interest Rate Risks:

Essentials of Interest Rate Risk – Sources of Interest Rate Risk – Determine of Interest Rates – Effects of Interest Rate Risk – Measurement of Interest rate risk and the techniques of interest rate risks measurement – Strategies for controlling interest rate risk – Controls and supervision of interest rate risk Management – Sound interest rate risk management practices. Pricing Fixed Income Securities – Features on Securities – GAAP and Earning Sensitivity – Financial Features – Forward Rates and Agreements.

Unit-4: Treasure Management:

Introduction to Treasury Management – Concepts and Functions – Instruments in the Markets – Treasury Products – Treasury Risk Management – Controls and Supervision – Derivative Products – Treasury and Asset-Liability Management.

Unit-5: Capital Management and Profit Planning:

Prudential Norms – Capital Adequacy – Basel II – Asset Classification & Provision Norms – Profit Planning – Effect of NPA on profitability – Shareholders Value Maximization and EVA, Profit planning measures to improve performance.Risk Management Systems in Banks in India.Systems introduced in India – Basel II Recommendations and RBI guidelines.

Suggested Reading:

1. Dun & Bradstreet: Financial Risk Management, Tata Mcgraw Hill Publishing Company Limited, New Delhi (2006)

2. Risk Management (for CAIIB), Indian Institute of Banking & Finance, The Arcade, World Trade Centre, Cuffe Parade, Mumbai-400005

3. Bank Management by Koch Mac Donald – Thomson4. Indian Banker Journals5. Indian Institute of Banking and Finance Reading Books


RURAL BANKING

Semester - IV


Objective: This elective paper in Banking is offered to the students to acquaint them with the structure of rural economy and rural banking, rural financing and its operations. To equip the students with necessary knowledge about the emergence and the growth of micro-finance sector and build their perspective.UNIT -1: BASIC FRAMEWORK OF RURAL ECONOMY:Rural economy in India - Form sector and economy - Agriculture production - Farm technology in India - Adoption of crop technology and harvest issues - agrarian reforms - Allied activities. Review of policies and programmes - Five Year Plan priorities for Rural Development - Committees of Government of India - National Policies - Economic reforms and the rural credit financing.UNIT-II: ROLE, STRUCTURE AND PERFORMANCE OF FINANCING INSTITUTIONS IN RURAL AREAS:Multi agency approach to rural credit - Multi agency Institutions - Role of rural credit institutions - Cooperative and Commercial Banks finance for Agriculture and Rural development - Regional Rural Banks - Principles guided by Apex Banks - NABARD - Objectives - Functions - Schemes - Role of NABARD in Institutional support for Rural Development - Techniques of lending in Agriculture - Role of Banks in implementing Development Programmes - Issues - Problems.

UNIT-III: TECHNO-ECONOMIC-FINANCIAL FEASIBILITY OF RURAL SCHEMES OF FINANCETechno-Economic-Financial Feasibility Of Few Schemes Of Finance - Farm sector - Non-farm sector - Rural Housing - Employment oriented programmes - Ancillary activities financing - Agriculture Insurance - The need - Crop Insurance - National crop Insurance scheme - Significance of cattle Insurance - Other Rural Insurance schemes .UNIT-IV: MICRO-CREDIT FINANCEEmergency and growth of Micro-finance delivery at global level - Best practices of micro-credit finance at global level - Emergency and growth of micro-finance sector in India - Best practices of micro finance delivery in India - Regulatory and legal framework of micro finance institutions - Micro-credit financing Institutions - Product(loan) designing of Micro-finance Institutions and interest rate calculation - Emerging issues and challenges.

UNIT-V: SELF-HELP GROUPS (SHGS) AND MICRO-CREDIT FINANCE:Self-Help Groups(SHGs) Evolution - Objectives - RBI Support Policy - Models of Linkage - Credit records and information system for SHGs - Organization and development of SHGs (Organisational development, group dynamics, team building, leadership, leadership and micro dialogue communication skills at SHGs level) - Significance of Micro-credit finance for SHGs - Procedure for loan documentation,disbursement,post-sanction supervision and follow up - Key Issues - Comparative study, specially from third world countries.

References:1. Patel shah, Vimalo: Rural Economy; Himalaya Publishing

House; 2. U.C.Patnaik, R.N.Mishra: Rural Banking in India, Anmol

Publication, New Delhi.3. Khemani and Dr. B. Yerram Raju: How and Why of Rural

Banks;4. Other publications: NABARD publications, Bank Journals, IIB

Journals, Yojana. 5. Karmakar, K.G: Rural credit and self help groups: Micro

finance needs and concepts in India; Sage publications India Pvt. Ltd. ,

6. Mahajan, Vijay and Bharti Gupta Ramola: Financial services for rural poor in India: Access and sustainability(Journal ,of International Development,8(2),pp.211-224.

7. www.microjournal.com 8. www.microfinance.com

http://www.microjournal.com/

http://www.microfinance.com/

9. www.mfc.oW.pl 10. www.gdrc.org/icm


PRINCIPLES OF INSURANCE

Semester - III

Paper Code 304 INS Exam. Duration 3 HoursPPW: 5 Max. Marks: 80+20 IA

Objective: To introduce the basic principles of insurance. It provides the understanding of concepts, conventions and principles of Insurance. It enables the student to understand the Insurance business in general.

UNIT - I: The concept of risk - Kinds and classification of risks - Assessment - Transfer;The concept of Insurance - Classification of Insurance - Types of Life Insurance - Pure and Terms - Types of General Insurance, Fire, Marine, Motor, Engineering, Aviation and Agricultural - Insurance of Property, pecuniary interest, liability and person.

UNIT - II: Basic principles of Insurance - Utmost Good faith - Insurable Interest - Material facts - Indemnity - Proximate Cause.

Economic principles of Insurance - Sharing - Subrogation - Contribution;

Role of Insurance in the national economy; Current marketing structure and internal markets.

UNIT - III: Legal principles of Insurance - The Indian Contract Act 1872 - Insurance Interest - Nomination and assignment - Utmost good faith - Indemnity - Subrogation - Contribution - Proximate Cause.

http://www.gdrc.org/icm

http://www.mfc.oW.pl/

Financial principles - Premium funds - Investments - Reserves - Surplus - Valuation of surplus.

UNIT - IV: Theory of rating - Actuarial principles - Mortality tables - Physical and moral hazard - Representations - Warranties - Conditions.

UNIT - V: Risk Appraisal - Risk selection - Underwriting

Reinsurance - Introduction - Brief historical background - Nature and functions of re -insurance - Methods of reinsurance (Major forms: Facultative and Treaty, Facultative reinsurance - proportional - non-proportional (excess of loss) and Treaty reinsurance.

Suggested Readings:

1. Course Material of Insurance Institute of India, Mumbai.

2. Alka Mittal and S.L.Gupta: Principles of Insurance and Risk Management; Sultan Chand & Sons.

are assigned for the Viva-Voce examination (Minimum passing marks to be obtained in Viva-voce are 09). Viva-voce examination is compulsory for all the candidates and they have to attend the viva-voce as per the schedule announced by the Department.


MANAGEMENT OF LIFE INSURANCE PRODUCTS

Semester - III


UNIT 1:

Life Insurance organization - Important activities - The distribution system - Appointment of agent - Functions of agents - Remuneration to agents;

Plans of Life Insurance - Need levels - Basic elements - Some popular plans (Limited payment plan, participating policies, convertible plans, joint life policies, Childrens' plans, educational annuity plans, variable Insurance plans, riders for the Handicapped, Miscellaneous.Annuities - Nature of annuities, types.

UNIT-II:

Group Insurance - Nature of Group Insurance - Types - Group gratuity schemes - Ways of meeting gratuity liability - Group super-annuation schemes - Other group schemes - Social security schemes; Other special need plan - Industrial Life Insurance - Salary saving schemes- Additional Benefits Married Women's Property Act.

UNIT-III:

Application and acceptance - Principle of good faith - Insurable Interest - Prospectus - Proposal forms and other related documents - Medical examination - Age proof - Special reports - Specimens of proposal-Medical report.

IRDA Regulations on Management of Life Insurance Services/products.

UNIT-IV:

Policy document and its need - Policy preamble - Schedule - attestation - conditions and privileges - Alteration - Duplicate policy - Specimen of policy document;Premium payment Lapse and revival procedure - Premium, surrender values, Non-forfeiture Options, Revival.

Assignment Nomination Loans, Surrenders, Foreclosure.UNIT-V:

Policy Claims - Maturity Claims - Survival benefits - Death claims - Claim Concession - Presumption of Death - Accident benefit and disability benefit - Post-maturity o0tions - Settlement options - Valuation and surplus.Re-insurance - Exchange control regulations - Consumer protenction Act - Ombudsman - Information Technology.

References:

1. Insurance Institute of India (Course material).

2. Treischmann: Risk Management & Insurance, Thomson 2007

3. Alka Mittal and SL Gupta: Principles of Insurance and Risk Management: Sultan Chand & Sons.


RISK MANAGEMENT IN INSURANCE

Semester - IV


Unit-1:

Introduction to risk management and Insurance - Risk and uncertainty - Risk perceptions and reactions - Risk analysis and management - Risk Concepts - Types of risks in Insurance - Kinds and classification of risks - Individual risk and the types of individual risks - Operational risks - Financial risks - Strategic risks - Risk Management - Subjective risk - Attitude to, risk - Acceptable risks versus unacceptable risks - The cost of risks - Handling risks - Role of Insurance brokers in risk management;

Unit-II:

Risk management and corporate objectives - Risk management policy - Risk management and functional management; The scope and objectives of risk management in corporate bodies, nationalized industries, local government and public utilities - personal risk management.

Unit-III

Risk management steps - Risk management process - Risk management of liability exposures - Risk management of Public liability exposures - Administration;

Unit-IV:

Risk identification - Losses and causes of loses - Techniques of risk management - Loss prevention - Loss retention - Loss control (loss prevention and loss reduction) - Procedure - Insurance - Risk evaluation - Statistical methods and probability concepts - Decision taking under conditions of risk and uncertainty - Risk avoidance - Risk reduction and los control - The Factories Act 1948 - Role of Insurance surveyors in loss prevention - Mutual aid schemes.

Unit-V:

Risk financing - Risk financing options - Risk retention - Risk ransfer; Insurance - Benefits and limitations - Partial insurances - Captive insurance companies.

Readings:

1. Insurance Institute of India (Course material and books)2. Treischmann: Risk Management & Insurance, Thomson 20073. Alka Mittal: Principles of Insurance and Risk management; Sultan Chand & Sons.4. Rejda, George,E(2001): Principles of Risk management and Insurance (7tn .

edition), Addison Wesley Longman, Inc. Boston. MSMASTER OF FINANCE AND CONTROL

MANAGEMENT OF GENERAL INSURANCE PRODUCTS

Semester - IV

Paper Code 404 INS Exam. Duration 3 HoursPPW: 5 Max. Marks: 80+20 IAObjective: To acquaint the students with the knowledge of General Insurance Products/Schemes/Coverages and the practices and procedures in managing the General Insurance Coverages. .

UNIT-1 : Insurance Legislation:

The Insurance Act 1938 - General Insurance Business (Nationalisation)Act, 1972 - IRDA - Amendment of Insurance Act - The Insurance Amendment Act, 2002, Motor Vehicles Act 1988 - The Inland Steam - Vessels (Amendment)Act 1977 - Marine Insurance Act 1963 - The Carriage of Goods Act by Sea Act 1925 - The Merchant Shipping Act, 1958 - The Bill of Lading Act 1855 -The Carriage by Air Act 1972 - Workers' Compensation Act 1923 - Employees State Insurance Act, 1948 - Public Liability Insurance Act, 1991 - The Indian Stamp Act, 1899 - Marine Claims - Overseas Medical Insurance - Reinsurance - Consumer Protection Act, 1986 - Insurance Ombudsman.

UNIT-11: The Insurance Market:

Corporate Agents - Broker - Function of Insurance Broker - Tariff Advisory Committee - Insurance forms - Proposal of Insurance - Cover notes - Motor Vehicles Act, 1988 - Motor Vehicle Coverage - Fire & Marine Policies and Coverage - Standard policies - Reinstatement value policies - Declaration policy - Floating policy.

Private Insurance Companies - Insurance intermediaries in overseas market - Comparison between different products offered by various insurers.

UNIT-111: Policy document in General Insurance

Policy document in General Insurance - Need and format - Policy preamble - Schedule - Attestation - Conditions and privileges - Alteration - Duplicate policy - Policy renewal procedure - Premium payment lapse and revival - Assignment - Nomination loans - Surrenders - Foreclosure.

UNIT-IV: Miscellaneous Coverages

Miscellaneous coverages - Group Policies - Health Insurance - Mediclaim Insurance - Jan Arogya(Bima)Policy - Cancer Insurance - Universal Health Insurance Policy - Overseas Medical Policy - Bhavishya Arogya Policy - Burglary Insurance - Money

Policy - Banker's Indemnity policy - Legal liability Insurance - Personal Accident Insurance - Mediclaim Insurance package policies - Householders Insurance - Shopkeepers Insurance - Property Insurance - Rural Insurance - Engineering Insurance Coverages- Marine cargo and Hull Insurance - Baggage policy - Fidelity Guarantee Insurance - Specialised Insurance - Oil & Gas Insurance - Satellite Insurance.Rating premium - Tariff Rating - Physical & Moral Hazards - Underwriting of Moral Hazard - Premium - Agreement in the policy - Declaration policy - Underwriting practice in India and other important Insurance market Limit of acceptance - Risk Inspection - Insurer's role in risk management - IRDA Regulation-2002.

UNIT-V: Claims Procedure

Claims procedure - Preliminary procedure - Investigation and assessment - Role of Surveyors & Loss assessors - Claims documents - Arbitration - Limitation - Settlement -Loss minimization and salvage - Practices in UK and USA - Investment and accounting aspects - Unexpired risk reserves.

References:

1. Insurance Institute of India, Mumbai (Course material and books)

2. Alka Mittal and SLGupta: Principles of Insurane and risk Management: Sultan Chand and sons

3. Luthardt, Constance M. et.al(1999): property and liability insurance principles (3`d. edition), Insurance Insurance of America, Malvem.

4. Bickelhaupt, D.L.(1983): General Insurance (l lth. edition), Richard D.Irwin, Inc. Homewood,III.

5. Huebner,S.S., K.Black and R.Cline (1982): Property and Liability insurance (3`a. edition), Prentice Hall Inc., Eaglewood Cliffs, N.J.

MFC OU Syllabi

Documents

hours ppw

406taxation53 hours

management accounting

business decisions53

ban404 ins53 hours

ban304 ins53 hours

ban403 ins53 hours

ban305 ins53 hours