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PGDBM – FINANCE

Contents:

Paper – I Management Process and Organizational Behavior.

Paper – II Environment Management.

Paper – III Managerial Skill Development.

Paper – IV Accounting For Managers.

Paper – V Principles of management

Paper –VI Financial Management

Paper – VII Investment Management

Paper – VIII Merchant banking and financial services


PGDBM – FINANCE
Paper – I

Management Process and Organization Behavior

UNIT – I A History Of Organization Development: The Laboratory Training


Stem, The
Survey Research And Feedback Stem, The Action Research Stem, The
Sociological Stem, The Changing Context, Second - Generation OD.

Values, Assumptions, And Beliefs In OD: Chronology Of Events In


Management And Organization Thought, Early Statements Of OD Values
And Assumption, A Values Study.

UNIT – II Foundations Of Organization Development: Models And Theories Of


Planned Change, Systems Theory Participation And Empowerment,
Teams And Teamwork, Parallel Learning Structures, A Normative-
Reeducative Strategy Of Chaining, Applied Behavioral Science, Action
Research.

Managing The OD Process: Diagnosis, The Action Components: Id


Interventions, The Program Management Component.

Action Research and Organization Development: Action Research: A


Process And An Approach, History And Varieties Of Action Research,
Examples Of Action Research In Organization Development.

Comprehensive OD Interventions : “Getting The Whole System In The


Room” Search Conferences And Future Search Conferences, Beckhard’s
Confrontation Meeting, Strategic Management Activities, Teal Time
Strategic Chang, Stream Analysis, Survey Feedback, Systems 1-4t, Grid
Organization Development, Schein’s Cultural Analysis, Large-Scale
Change And Hig-Performance Systems, Systems, Transoganizational
Development.

UNIT – III Structural Interventions And The Applicability Of OD : Sociotechnical


Systems, Self-Managed Teams: Problems In Implementation, Work
Redesign, MBO And Appraisal, Quality Circles, Quality Of Work Life
Projects, Parallel Learning Structures, Physical Settings And OD, Total
Quality Management, Reengineering, The Self-Design Strategy, High-
Involvement And High- Performance Work Systems, Large-Scale
Systems Change And Organizational Transformation.

Training Experiences: T-Groups, Behavioral Modeling, Life And Career


Planning, Coaching And Mentoring, Instrumented Training.

UNIT – IV Issued In Consultant-Client Relationships: Entry And Contracting,


Defining The Client System, The Trust Issue, The Nature Of The
Consultant’s Expertise, Diagnosis And Appropriate Intervention, Depth Of
Intervention, On Beeingn Absorbed By The Culture., The Consultant As A
Microcosm, Action Research And The OD Process, The Development Of
Consultation Skills, Rewards, Staffing And Career Development
Organizational Justice, Labor Relations, Monetary Costs And Skill
Demands.

UNIT – V Power, Politics, And Organization Development: Assessing The


Effects Of OD: Some Issues And Problems, Positive Developments In
Research On OD Does OD Work? A Review of Reviews.

The Future And Organization Development: The Changing


Environment, Fundamental Strengths of OD, OD’s Future.

PAPER – II
Environment Management

UNIT – I An Introduction To Business Environment: Meaning And Definition Of


Business Environment, Importance Of The Study Of Business
Environment, Environmental Analysis, Macro Environment.

Industrial Policy and Licensing: The Meaning Of Industrial Policy,


Industrial Policy, 1948, Industrial Policy Resolution, 1956, Industrial Policy
Statement, 1977, Industrial Policy Statement, 1980, New Industrial Policy,
1991, Small- Scale Sector Industrial Policy, Industrial Licensing.

Industrial (Development And Regulation) Act, 1951: Introduction,


Coverage Of The Act, Licensing Provisions Of The Industries Act, 1951,
Investigation Into Scheduled Industrial Undertakings, Power To Regulate
Supply And Distribution Of Certain Articles, Central Advisory Council And
Development Councils.

UNIT – II Monopolies and Restrictive Trade Practices Act, (MRTP Act), 1969:
Objectives, Amendments, MRTP Commission, Monopolistic, Restrictive
and Unfair Trade Practices, Monopolistic Trade A practices, Restrictive
Trade Practices, Unfair Trade Practices.

Foreign Capital: The Need For Foreign Capital, Forms Of Foreign Capital,
Advantages Of Foreign Direct Investment, Limitations Of Foreign Direct
Investment, Indian Government’s Policy Towards Foreign Capital, Policy
Regarding Foreign Investment (1991), Changes In Foreign Investment
Policy During The Year 1994-95, Changes Made With Regard To Foreign
Investment In 1996-97, BJP Government’s Policy Of Foreign Investment,
Inflows Of Foreign Investment To India In Recent Years.

Multinational Corporation: Definition, Origin of MNCs, Benefits of


MNCs, Harmful Effects Of MNCs, Multinational Corporations In India.

UNIT – III The Securities And Exchange Board Of India (SEBI) : Introduction,
Salient Features Of The SEBI Act, 1992, Functions Of The SEBI, The
SEBI’s Guidelines For Disclosure And Investor Protection, The SEBI’s
Guidelines For Issue Of Issue Of Fully Convertible/ Partly Convertible
Debentures/Non-Convertible Debentures, Promoters Contribution, The
SEBI’s Guidelines For Bonus Issue, Rights Issue Recent Amendments,

UNIT – IV Industrial Sickness: Magnitude Of Industrial Sickness, Definition Of


Sickness, Kinds Of Sickness And Their Causes, Remedial Measures, The
Sick Industrial Companies, (Special Provisions) Act (Since), 1985, The
Sick Industrial Companies (Special Provisions) Bill, 1997

Small-Scale Industries: Definition Of Small-Scale Industries,


Classification, Role Of Small-Scale Industries In The Indian Economy,
Problems Of Small-Scale Industries, Incentives To Small-Scale
Industries, New Policy For The Small-Scale Sector, 1991.

UNIT – V Social Responsibility of Business: Definition Of Social Responsibility


Dimensions Of Social Responsibilities, Arguments Against Social
Responsibility Of Business, Arguments For Social Responsibility Of
Business, The Indian Situation, Social Audit.

Consumerism And Consumer Protection : Definition Of Consumerism,


Need For Consumerism, Utility Of Consumerism, Legislative Measures
For Consumer Protection In India, Consumer Rights , The Consumer
Movement In India, Journalism And Consumer Protection Hindrances To
The Growth Of A Strong Consumer Movement, The Consumer Protection
Act, 1986, Consumer Protection Councils, Consumer Dispute Redressal
Forums

Privatisation Of Public Enterprises: Introduction, What Is Privatization,


Forms Of Privatization, Arguments In Favour Of Privatization, Arguments
Against Privatization.

PAPER – III
Managerial Skill Development

UNIT – I Managerial Work: Managerial Roles, Understanding Your Philosophy Of


Management, Forecasting The Future Organization.
Interpersonal Relations, Communication And Conflict: Introduction,
Readings, Execises An Cases, Memo.
Developing Conflict-Resolution Skills, Case: Bob Knowlton, Dealing
With Problem Subordinates.

UNIT – II Motivation, Job Design, and Performance: Frederick Herzberg, One


More Time: How Do You Motivate Employees, J. Richard Hackman,
Designing Work For Individuals And For Groups, Herbert H. Meyer, A
Solution To The Performance Appraisal Feedback Enigma,

Exercise: Enlivening the Job Characteristics Model: A Job Redesign


Project, Case: Saturn Rising: Work Redesign On The Factory Shop Floor,
Exercise: Giving And Receiving Feedback,

Leadership and Decision Making: Introduction, Readings, Exercises


And Cases, Memo, Victor H. Vroom, Two Decades Of Research On
Participation: Beyond Buzz Words and Management Fads, Bernard M.
Bass Leadership Good, Better, Bes, Jay A. Conger
Leadership: The Art Of Empowering Other, Exercise: Leadership And
Decision Making: Applying The Vroom-Jago Modal, Case: The Man Who
Killed Braniff, Exercise: Leadership Empowerment,
UNIT – III Power And Politics: Introduction, Readings, Exercises And Cases,
Memo, David Kipnis, Stuart M. Schmidt, Chirs Staffin- Smit, Lan
Wilkinson, Patterns Of Managerial Influence: Shotgun Managers,
Tacticians, And Bystanders, Rosabeth Moss Kanter, Power Failure In
Management Circuits, Gerld R. Salancik, Jeffrey Pfeffr, Who Gets Power
And How They Hold Onto It: A Strategic Contingency Model Of Power
Exercise: Dependency Situations, Case: Jennifer Carson At The Science
Museum Execise: Power Lab,

Group Dynamics: Introduction, Readings, Exercises and Cases, Memo,


Norman R.F.
Maier, Assets And Liabilities In Group Problem Solving: The Need For An
Integrative Function Irving I. Janis, Groupthink, Daniel C. Feldman, The
Development And Enforcement Of Group Norms, Exercise: Wilderness
Survival: Group Decision Making And Effectiveness, , Exercise: The
Nasa/Challenger Incident, Exercise: Norms And Deviance,

Intergroup Dynamics: Introduction, Readings, Exercises And Cases,


Memo, L. Dave Brown, Managing COflict Among Group, Imuzafer Sherif,
Experiments In Group Conflict, Kenwyn K. Smith, An Intergroup
Perspective On Individual Behavior, Exercise: Battle Of The Sexes
Confrontation.

Organization Design, Evolution And Culture: Introduction, Readings,


Exercises And Cases, Memo Robert Duncan, What Is The Right
Organization Structure? Decision Tree Analysis Provides The Answer,
Larry E. Greiner, Evolution And Revolution As Organizations Grow, Vijay
Sathe, Implications Of Corporate Culture: A Manager’s Guide To Action,
Exercises: Small Business Design: The Case Of A Startup Publishing
Firm, Exercises: Fairfield Flyer Wagons, Case: Managing By Mystique,

Careers And Stress: Introduction, Readings, Exercises And Cases,


Memo, Gene W. Ealton, Paul H. Thompson, Raymond L. Price, The Four
Stages Of Professional Cares A New Lok At Performance By
Professional, Douglas T. Hall. Judith Richter, Career Gridlock: Baby
Boomers Hit the Wall, Morely D. Glicken, Katherine Janka, Executives
Under Fire: The Burnout Syndrome, Case: Jane Moore: An Executive
Woman’s Carer Story, Exercise: Career Anchors, Exercise: The Burnout
Questionnaire,

Managing Diversity, Ethics, International Issues, and Corporate Social


Responsibility: Introducation, Readings, Execises and Cases, Memo.
Itaylor Cox, Jr. The Multicultural Organization, Richard P. Nielsern,
Changing Unetical Organizational Behavior, Paul H. Weaver, After Social
Responsibility, Exercises: Four Cultures, Exercises: The Maquiladora
Decision, Exercises: Vsnatin – Group Decision Making and Ethics.
Paper – IV
Accounting for Managers
Unit – I An Introduction to Management Accounting: Objectives, The two
costs and management accounting Systems, The elements of Cost, the
Classification of cost, what is management accounting? Cost decision
making.
Material: Objectives, the valuation of materials, Materials management.

Unit - II Labour: Objectives, Payroll analysis, Incentive schemes, the Cost of


labour turnover.
Absorption Costing: The aim of absorption costing, Overheads, Cost
centers, Overhead absorption, the limitation of absorption costing.

Unit – III Marginal costing and breakeven analysis: Objectives, Marginal


costing, breakeven analysis.
Absorption costing and breakeven analysis: Objectives, Absorption
costing, marginal cost the effects on profits and stock valuation.

Unit – IV Budgeting and budgetary control: Objectives, Introduction: the


household budget, Principals, Practical considerations, Budget
relationships, the cash budget, the budgeted trading and profit and loss
account and the budgeted balance sheet, the master budget, Flexible
budgets, the behavioral aspects of budgeting, the benefits of budgeting,
Zero base budgeting.

Unit – V Standard Costing: Objectives, What standard costing? Cost Control


using standard costing, Material variances, labour variances, the profit
variance.
Capital investment appraisal: Objectives, payback method, Average
rate of return method, How to use annuity tables, Present value tables,
Depreciation and cash flows, residual values, Taxation, Other methods,
Which methods?

Paper – V
Principles of management

UNIT – I Nature And Functions of Management : Importance of Management,


Definition of Management, Management Functions of The Process of
Management, Process, Roles of A Manager, Leveis of Management,
Managerial Skills, Management And Management Vs. Family
Management
Development of Management Thought: Early Management
Approaches, Modem Management Approaches.
Coordination: Distinction Between Coordination And Cooperation, Need
For Coordination Requisites For Excellent Coordination, Types of
Coordination, Techniques of Coordination, Difficulty of Coordination,
Systems Approach And Coordination.
Planning: Nature of Planning, Importance of Planning, Forms of
Planning, Types of Plans, Steps In Planning, Limitations of Planning,
Making Planning Effective, Strategic Planning In Indian Industry.

UNIT – II Decision-Making: Meaning of a Decision, Types of Decision, Steps in


Rational Decision-Making, Rationality in Decision-Making, Environment of
Decision-Making, Common Difficulties in Decision-Making.
Business Forecasting And Operations Research: Business
Forecasting, Techniques of Forecasting, Management Science Or
Operations Research Advantages And Limitations of OR .

Organization: Meaning, Why Study Organizations?, Process of


Organizing, Span of Management Principles of Organizing,
Departmentalization, Organization Structure, What Type of Structure Is
Best?, Committees.

Informal Organization : Why Do Informal Groups Form ?, Types of


Informal Groups, Stages of Group Development, Distinction Between
Formal And Informal Organization, Benefits of Informal Organization To
Management, Disadvantages of Informal Organization, Harmonizing
Informal And Formal Organization, Group Dynamics.

UNIT – III Staffing: Importance and Need for Proper Staffing Manpower Planning,
Recruitment, Selection, Placement and Orientation, Recruitment and
Selection Practices in India.

Training And Development: Advantages of A Training Programme,


Types of Training Programmes, Training Methods, Selection of A Training
Method, Evaluation of Training And Development, Training Practices In
India, Evaluation By Indian Companies of Their Management
Development Programmes.
Performance Appraisal : Purposes of Appraisal, Essentials of A Good
Appraisal System, Criteria of Performance Appraisal, Performance
Appraisal Methods, Appraisal Interview, Appraisal of Management,
Limitations of Appraisal Methods, Performance Appraisal In Indian
Industries Need For An Appraisal System To Suit Indian Behaviour,
Promotions.

Wage Payment Plans: Primary Compensation, Incentive Compensation,


Requisites for the Success of and Incentive Plan, Non-Monetary
Incentives, Indian Wage Policy, Wage Incentives in Indian Industry.

UNIT – IV Motivation: What in Motivation?, Some Early Motivation Theories,


Theory Today : And Expectancy Approach, the Psychological Approach.

Job Design, Work Scheduling, And Motivation: Design, Scheduling,


And Expectancy Theory The Job Characteristics Model Job Enrichment
Job Rotation Work Modules, Flex-Time, New Trends In Work Scheduling.

Benefits And Services: Benefits: Something For Everybody Services,


Trends In Benefits And Services.
UNIT – V Safety And Health: The Occupational Safety And Health Act Trends For
OSHA, Safety Programs, Health Programs, Trends In Health Programs,
What Is Stress?, What Is Burnout?, Reducing Burnout.

Labor Relations: How Unions Constrain Managerial Discretion Major


Labor Legislation, Growth of Professional Occupational Associations
Goals of Group Representation, Unions And Occupational Associations
Today.

Research In Human Resource Management: What Is Research? Types


of Research, Why Research In HRM? Secondary Sources: Where To
Look It Up Primary Sources: Relevant Research Methods.

Paper – VI
Financial Management

UNIT – I Nature of Financial Management: Introduction, Scop of Finance,


Finance Functions, Financial Manager’s Role, Financial Goal: Profit
Versus Wealth, Conflict of Goals: Management Versus Owners, Financial
Goal And Firm’s Objectives, Organization of The Financial Functions.

Statements of Financial Information: Introduction, Accounting System :


A Source of Financial Information, Financial Statements, Balance Sheet,
Profit And Loss Account, Relation Between Balance Sheet And Profit &
Loss Account, Definition of Profit : Economic Versus Accounting.

UNIT – II Financial Ration Analysis : Introduction, Users of Financial Analysis,


Nature of Ration Analysis, Liquidity Ratios, Leverage Ratios, Activity
Ratios, Profitability Ratios, Evaluation of A Firm’s Earning Power,
Comparative Statements Analysis, Trend Analysis, Inter-Firm Analysis,
Inter-Firm Analysis, Utility of Ratio Analysis, Cautions Is Using Ratio
Analysis.

Cost-Volume-Profit Analysis And Operating Leverage: Introduction,


Break-Even Analysis Cash Break-Even Point, Operating And Risk, Profit
Analysis: Impact of Changing Factors, Cost-Volume-Profit Analysis For A
Multi-Product Firm Utility of CVP Analysis, Limitations. Of CVP Analysis.

Financial and Profit Planning: Financial Planning. Profit Planning.


Objectives of Profit Planning (of Budgeting), Essentials of Profit Planning,
Budget Administration, Types of Budgets, Preparation of Profit Plan of
Budgets, Advantages of Budgeting, Problems And Dangers of Budgeting.

Concepts of Value and Return: Time Preference for Money, Compound


Value, Present Value of an Annuity Due, Multi-Period Compounding, Net
Present Value, Present Value and Rate of Return.

UNIT – III Risk And Return: Portfolio Theory, CAPM And APM : Risk And Return of
A Single Asset, Portfolio Theory And Risk Diversification, Efficient
Portfolio, Systematic And Unsystematic Risk, Capital Asset Pricing
Model(CAPM), Security Market Line (SML), Beta Estimation : Example of
Hindustan Lever Limited (HLL), Implications And Relevance of CAPM,
The Arbitrage Pricing Model (APM).
Option Pricing : Combinations of Put Option, Call Option And Share,
Factors Determining Option Value, Binomial Model For Option Valuation,
Black And Scholes Model For Option Valuation, Ordinary Share As An
Option,

Analysis of Capital Budgeting Decisions: Introduction, Nature of


Investment Decisions, Investment Evaluation Criteria, Net Present Value
Method, Internal Rate of Return Method, NPV Versus IRR, NPV Versus.

Determining Cash Flows for Investment Analysis: Cash Flows versus


Profit, Incremental Cash Flows, Components of Cash Flows, Calculation
of Depreciation For Tax Purposes, Additional Aspects of Incremental
Analysis, Investment And Financing Decisions.

UNIT – IV The Cost of Capital : Introduction, Significance of The Cost of Capital


The Concept of The Cost of Capital : Opportunity Cost, Determining
Component Cost of Capital, Cost of Equity And The Capital Asset Pricing
Model (CAPM), Cost of Quity : CAPM Vs Dividend-Growth Model,
Weighted Average Cost of Capital, Flotation Costs, of Capital And
Investment Analysis, Calculation of The Cost of Cost of Capital : Larsen
& Toubro (L&T) Limited, Divisional And Project Cost of Capital, WACC
And Investment Evaluation.

Risk Analysis in Capital Budgeting: Introduction, Nature of Risk,


Conventional Techniques to Handle Risk, Decision Trees for Sequential
Investment Decisions, Utility Theory and Capital Budgeting.

The Capital Budgeting Process And Practices: Introduction, Capital


Expenditure: Definition, Capital Expenditure Planning Phases, Qualitative
Factors And Judgement, Strategic Aspects of Investment Decision,
Capital Budgeting Decision-Making Levels.

Financial and Operating Leverage: Capital Structure Defined, Meaning


of Financial Leverage, Measures of Financial Leverage, Financial
Leverage and the Shareholders’
Return Combining Financial And Operation Leverages, Financial
Leverage And The Shareholders’ Risk Leverage Analysis of Hindustan
Level Limited (HLL).

UNIT – V Theories: Introduction, Lssues In Dividend Policy, Dividend


Relevance: Walter’s Model, Dividend Relevance: Gordon’s Model,
Dividends and Uncertainty: The Bird-In-The –Hand Argument, Dividend
Irrelevance: Modigliani and Miller’s Hypothesis, Relevance of Dividend
Policy: Market Imperfections, Informational Content of Dividens.

Dividend Policy : Introduction, Aspects of Dividend Policy, Practical


Considerations In Dividend Policy, Stability of Dividends, Forms of
Dividends Share Splits, Corporate Dividend Behaviour, Dividend Policy
Analysis : Case of Larsen And Toubro Limited (L&T).

Principles of Working Capital: Introduction, Concepts of Working


Capital, Need for Working Capital, Determinants of Working Capital,
Issues in Working Capital Management Estimating Working Capital
Needs, Financing Current Assets.
Cash Management: Facets of Cash Management, Motives For Holding
Cash, Cash Planning, Managing Cash Collections And Disbursements,
Investing Surplus Cash In Marketable Securities.

Working Capital Finance: Trade Credit, Bank Finance And Commercial


Paper: Introduction, Trade Credit, Accrued Expenses and Deferred
Income, Bank Finance For Working Capital, Regulation of Bank Finance,
Commercial Paper.
Management of Accounts Receivable : Introduction, Motives For
Extending Trade Credit, Limitations, Marginal Cost Consideration,
Elements of Trade Credit Policy, Goal And Functions of Accounts
Receivable Management, Capital Budgeting Approach, Changing Credit
Standards, Changing The Credit Period, Discount Policy, Determination
of Maximum Rate of Cash Discount, Optimal Discount Rate, Selecting
The Customer, Sources of Credit Information, Financial Statement
Analysis, Operating Management, Financial Management, Credit Scoring,
Collection And Monitoring, Monitoring And Control, Forecasting of
Accounts Receivable, Bad Debts, Predicting Accounts Receivable
Behaviour.

Inventory Strategies And Techniques: Introduction, Motives For


Holding Inventory, Types of Organization Holding Inventories, Inventory
Costs, Valuation of Inventories, Goal of Inventory Management, Inventory
Strategies And Techniques of Inventory Management, Quantitve Discount
Present Value Approach, Ordering Intervals, Batch Production, Buffer
Inventory, Stock Out Cost, Excess Inventory, Working Capital
Restrictions, Material Requirements Planning,.

Liquidity And Cash Management : Introduction, Relevant Information


From The Schedules, Funds Analysis And Financial Structure,
Management of Liquidity, Measurement of Liquidity, Uncertainties, Health
Ratio, Amount of Liquidity, Maintaining Cash Balance, Operating
Revenue, Operating Expenditure, Non-Operating Revenues, Financial
Flow, Fixed Asset, Other Expected Cash Flow, Sensitive Analysis, Cast,
Control System, Lockbox System, Other Instruments For Cash Collection.

Management of Accounts Payable: Introduction, Trade Credit,


Managing Account Payable,
Model, Disbursement Float Management, Other Trading and Ned for a
Good Information System.

Financial Working Capital Gap : Introduction, New Notion of Liquidity,


Bank Finance, Principles of Lending, The Norms, Methods of Lending,
Chore Group, Loan System, Bills System, Lending Policies, Consortium
And Syndication, Exposure Limits, Working Capital
Requirement And Assessment Methodology of Commercial Banks,
Assessment of Working Capital Requirement of OSB Ltd, Cash
Budgeting Approach, Short Term Sources of Financing, Factoring, Inter
Corporate Deposit, Interest Rate Swaps And Forward Rate Agreement.
Paper – VII
Investment Management

UNIT – I Investments: An I-P-O Model: An Art or a Science, Economic Welfare Vs


Wealth Maximization, Input-Process-Output Model, Environment, Input,
Process, Output.

Investment Objectives: Simple Vs Compound Return, Anomalies of


Simple Return, Cash Return and Capital Appreciation, Safety Liquidity, a
Healthy Compromise.

Evaluation Techniques: Monetary Value of Time, Payback Period,


Compounded Cash Flows, Discounted Cash Flows.

UNIT – II DCF Methods: Net Present Value, Profitability Ratio, Internal Rate of
Return Choic of Method, Limitations.

An Overview of Direct Taxes: Wealth Tax Income Tax, Salaries, House


Property Business Profession, Capital Gains, Other Provisions.

New Issues of Equity Shares : Vaolumes And Profits, Break Even Point,
Fixed Cost And Contribution, Business Organization, Proprietary
Concern, Partnership Firm, Private Company, Public Company, Capital
Structure, Guidelines For Investors, Market Potential,
Market Structure, Technology, Capital Cost Analysis, Vulnerability,
Borrowings, Promoters’
Track Record, Promoters’equity, Preferential Allotment, Location,
Collaboration, Unofficial Share Market.

UNIT – III Financial Statements : Capital And Revenue Transactions, Accrual


Basic And Cash Basis, Changes In Stock, The Profit And Loss Account,
The Balance Sheet, Liabilities, Assets, IIIustrative Example .

Analytical Parameters: Terminologies, Performance Parameters,


Investors Parameters,
Depositors’ Parameters, Shareholders’parameters.

UNIT – IV Evaluation of Equity Shares : Constant Dividend Stream, Growth


Element, Profitability Growth, Capita/Asset Growth, Components of Fresh
Capital, Implications, Free Funds, Growing Dividend Stream,
Observations, High Growth Rates.

Value Investment : The Concept of Value Parameters, Book Value Per


Share, Dividend Yield, Earning Per Share Or EPS, Importance of EPS
Return of Network, The Holding Zone, Value Matrix, Differential Values,
Major Differentiators, The Economic Environment, Blue Chip Status,
Industry Group, Advantages, Disadvantages.

UNIT – V Price Variations : Time Series, Secular Trend, Cyclical Variations,


Random Fluctuations, Share Price Movements, Shome Jargons,
Characteristics, Contrian Principle, Holding, Period Long Term
Investments, Advantages, Disadvantages, Medium Term Investments,
Advantages, Disadvantages, Short Term Investments, Advantages,
Disadvantages.
Technical Considerations : Technical Aspects, Moving Average
Technique, Characteristics, Transaction Limits, Floating Limits,
Speculation, Insider Trading, Fundamentals And Technicals.

Paper – VIII
Merchant banking and financial services

UNIT – I Merchant Banking Nature And Scope : Origin of Merchant Banking,


Money Changer And Exchanger, Merchant Bank In The United Kingdom
Investment Banking In U.S.A. Regulation of Investment Banking In U.S.A
Activities of Investment Banks, Investment Banking In The Indian
Context, Advantages of Investment Banking For India, Banking
Commission Report 1972, Merchant Banking In India, Services Rendered
By Merchant Banks.

Regulation of Merchant Banking Activity : Introduction, Nature of


Merchant Banking, Activities of Merchant Bankers, Notification of The
Ministry of Finance And SEBI, Rationale of Notification of Merchant
Banker, Authorized Activities, Prospectus Four Categories of
Responsibilities, Responsibilities of Lead Manager, Insider Trading,
Procedure For Inspection, Defaults of Merchant Bankers And Penalty
Points, International Code And Standards.

UNIT – II Project Preparation And Appraisal : Introduction, Project Identification,


The Stages of Project Selection, Feasibility Study, Appraisal of Project,
Financial Appraisal, DCF Techniques, Financial Analysis, The Break-
Even Point, Derivation of BEP From Income Statement, Technical
Appraisal, Economic Appraisal, Social Cost Benefit Analysis.

Securities: Nature And Kinds of Securities, Debentures, Floating Rate


Bonds, Warrants, Other Debt Securities In Vogue Abroad, Recent Trends
In Instrument Design And Bond Issues By All Indian Financial Institution
Government of India Guidelines on Issue of Debentures, Pricing of
Bonds, Yield Measures, Piece Volatility of Bond, Measures of Bond Price
Volatility, Debt Issues By Government, National Stock Exchange
Wholesale Debt Market Equity Shares, Listed Shares, Preference
Shares.

UNIT – III SEBI Guidelines For Public Issues : Objective And Scope of SEBI
Guidelines, Issue of Shares, Salient Features of offer Documents,
Underwriting, Minimum Subscription, Composite Issues, Debentures
(PCDs), Debentures of Less Then 18 Months Duration, Prospectus And
PCDs/NCDs, Roll-Over of Non-Convertible Portion, Disclosures For Issue
of Debentures, Issue of Debt Without SEBI Ketting or Acknowledgement,
Protection of Debentures, Holders Interest, Past Issues of FCDs And
PCDs, Reservation And Firm Allotment, Guidelines’ For Preferential
Allotment, Employees Stock Option Scheme, Promoters Contribution And
Lock-In Period, Lock-In Period Under SEBI Guidelines, Deployment of
Issue Proceeds, Bonus Shares, New Financial Instruments, Issue of
Shares Through OTC Exchange of India.

Pre-Issues Management : Pricing of Rights And Furthers Public Issues,


Free Pricing of Issues, Book Building, SEBI Guidelines, Premium Fixation
Or Pricing of Shares, Net Asset Value, Profit Earning Capacity Value,
Market Value, Fair Value, Malegam Committee : Justification of Price,
SEBI Guidelines of Pricing of Rights Issue Premium, Performance of The
Premium Issues In 1994 & 1995, Rights Issues, Safety Net Scheme.
Withdrawal Application, Listing Requirements of Stock Exchanges SEBI
Guidelines For Issue Advertisement (11-10-1993), Allotment,
Proportionate Allotment (SEBI Guidelines 1-12-1993), Cost of Public
Issue, Over The Counter Exchange of India (OTCEI), Listing
Requirements of OTCEL.

Public Deposits and Commercial Paper: Public Deposits, Commercial


Paper.

UNIT – IV Security Rating : Introduction, Definition, Origin, Nature of Ratings,


Determinants of Quality Ratings, Utility of Ratings, Rations And Yields,
Rating Agencies, Credit Rating Information Services of India Limited
(CRISIL), Crisil Rating Symbols, Investment Information And Credit
Rating Agency (ICRA), Equity Grading, ICRA Rating Symbols, Duff And
Phelps Credit Rating Agency of India Ltd. Credit Rating For Finance
Companies, Bond Rating In U.S.A. Differences In Quality Ratings, Ethical
Issues, Shortcomings of Security Rating, Recognition And Monitoring of
Rating Agencies.

Loan Syndication : Domestic : Introduction, Term Loans, Development


Finance Institutions, (DFLs), Sources of Funds of DFLs, Trends In
Disbursements, State Finance Corporations, Small Industries
Development Bank of India, Shipping Credit And Investment Company of
India tourism Finance Corporation of India Ltd. Investment Institutions,
Borrowing From Financial Institutions, Foreign Currency Loans,
Promoters Contribution, Capital Incentives, Appraising Term Loans, Debt
Service Coverage Ratio, Security Margin, Loan Syndication, Syndication
Document.

Loan syndication: External, Introduction, Guidelines for External


Commercial Borrowing, Procedure for Approval, New Guidelines for
External, Commercial Borrowing (19-6-1996), Modified Guidelines for
External Commercial Borrowing (1-4-1997), Commercial Borrowings,
Eurodollar Market.

UNIT – V Amalgamations, And Take-Overs : Introduction, Merger, Acquisition,


Amalgamation And Take-Over , Nature of Mergers, Synergism,
Economies of Scale, Financial Advantages, Tax Advantages, Hostile
Take-Over, Valuation Methods, Valuations Methods In Vogue In India,
Take-Over In India, Take-Over of Profit Making Companies, Stock
Exchange Guidelines of Corporate Take-Over SEBI Guidelines of
Substantial Acquisition of Shares In Listed Companies (4-11-1994),
Guidelines For Bailout Acquisitions, Transfer of Shares, Take-Over Code
: Bhagawathi Committee Report (1997), Tax Aspect’s of Mergers And
Amalgamations, Provisions Under The Income Tax, Exemption In respect
of Capital Gains And Gift Taxes, Exemption To Shareholders In Respect
of Capital Gains Tax Amalgamation of Sick Industrial Companies,
Committee On Industrial Sickness And Corporate, Restructuring (1993),
Legal Procedure For Merger, Intimation To SEBI And Stock Exchange
And Notification Application To The Court, Venture Capital : Nature And
Scope, Venture Capital Venture Capital Assistance Guidelines For
venture Capital Funds In India, Forms of Venture Capital Assistance,
Guidelines For Venture Capital Funds, Tax Aspects, Operations of VCFs,
Overseas Venture Capital Investments (21-09-1995).

Non-Resident Indian Investors : Concept of Non-Resident Indian, Bank


Accounts For NRIs Foreign Direct Investment Under New Industrial Policy
(1991), Portfolio Investment, Investment, In New Issues, Investment In
Immovable Properties, Report of The Working Group On NRI Investment
(1995), Relaxation of Investment Procedures, Loans Taxes.

Foreign Investment and Institutional Investors: Significance and Role


of Foreign Investment, Policy for Foreign Direct Investment, FIPB
Guidelines (20-1-19*97), Role of Fearing Investment, Freeing Institutional
Investors, Guidelines of Government of India, Flls
Investment In Government Securities, Foreign Brokers (SEBI Guidelines
(5-10-1993),Sebi (Flls) Regulations, 1995, Preferential Allotment To Flls,
Guidelines Compared To Incentives In Emerging Markets, Empirical
Research And Benefits of Diversification, Global Depository Receipts And
Foreign Currency Convertible Bons, Guidelines of Issue of GDRs And
FCCBs, Guidelines (May, 1994), Guidelines (October,1994), Changes In
Guidelines (June, 1996), Ricing of GDRs, Investment In Gdrs By Flls,
Advantage of GDR For Issuer Advantages To The Investor, Issue of
GDRs And FCCBs.

Joint Ventures: Relevance For Merchant Bankers, Benefits of Joint


Ventures, Investment In Joint Ventures, Guidelines For Joint Ventures
And Wholly Owned Subsidiaries, Main Features of Guidelines, Clearance
of Proposals By RBI, The Committee On Capital Account Convertibility,
Relaxation of Overseas Investment Norms.