MFM YEAR I SYLLABUS

COURSE CODE: H1010

PAPER - I
MANAGEMENT CONCEPTS
UNIT - I
Nature of Management - Social Responsibilities of Business - Manager and Environment Levels in
Management - Managerial Skills - Planning - Steps in Planning Process - Scope and Limitations -
Short Range and Long Range Planning - Flexibility in Planning Characteristics of a sound Plan -
Management by Objectives (MBO) - Policies and Strategies - Scope and Formulation - Decision
Making - Techniques and Processes.
UNIT - II
Organising - Organisation Structure and Design - Authority and Responsibility Relationships -
Delegation of Authority and Decentralisation - Interdepartmental Coordination - Emerging Trends
in Corporate Structure, Strategy and Culture - Impact of Technology on Organisational design -
Mechanistic vs Adoptive Structures - Formal and Informal Organisation.
UNIT - III
Perception and Learning - Personality and Individual Differences - Motivation and Job Performance
- Values, Attitudes and Beliefs - Stress Management - Communication Types-Process - Barriers -
Making Communication Effective.
UNIT - IV
Group Dynamics - Leadership - Styles - Approaches - Power and Politics - Organisational Structure
- Organisational Climate and Culture - Organisational Change and Development.
UNIT - V
Comparative Management Styles and approaches - Japanese Management Practices Organisational
Creativity and Innovation - Management of Innovation - Entrepreneurial Management -
Benchmarking - Best Management Practices across the world - Select cases of Domestic &
International Corporations - Management of Diversity.
REFERENCES
1. Koontz & Weirich: MANAGEMENT, McGraw-Hill.
2. Hampton: MANAGEMENT, McGraw-Hill.
3. Stoner & Wankel: MANAGEMENT, Prentice Hall.
4. Peter F. Drucker: PRACTICE OF MANAGEMENT, Pan Books.
5. Fred Luthans: ORGANISA TIONAL BEHAVIOUR, McGraw-Hill.
6. Robbins: ORGANISA TIONAL BEHAVIOUR, McGraw-Hili.
7. Important Business Magazines like: Business India, Business World and Fortune
8. Anyone Financial Daily: Economic Times, Financial Express, Business Standard.
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 COURSE CODE: H1020
PAPER-II INDIAN CAPITAL MARKET AND FINACIAL SYSTEMS

UNIT - I
Dynamics of Business and its Environment - Corporate Governance and social Responsibility -
Ethics in Business - A Discussion - Economic Systems and Management Structure - Family
Management to Professionalism - Economic Transition in India: Privatisation, Globalisation and
Competition - Resource Base of the Economy - Land, Forest, Water, Fisheries, Minerals - Economic
and Business Development and Environmental Issues.
UNIT - II
Infrastructure - Economic: Energy, Power, Transport, Communication, - Social: Education, Science
and Technology; Demographic Issues - Political: Constitution, Electoral Issues, Democracy -
Productivity Factors, Human Elements and Issues for Improvement - Total Quality - Management
Issues - Global Trends in Business and Management; International Relations - MNCs - Foreign
Capital and Collaboration - Trends in Indian Industry - The Capital Market Scenario - Future
Perspective of Indian Industry and Management; Emerging Geo Political Dimensions of Business
Environment.
UNIT - III
Law of Contract - Agreement - Offer - Acceptance - Consideration - Capacity of Contract
Contingent Contract - Quasi Contract - Performance - Discharge - Remedies to breach of Contract
- Partnership - Sale of Goods - Law of Insurance - Negotiable Instruments - Notes, Bills, Cheques -
Crossing - Endorsement - Holder in due course - Holder in value - Contract of Agency.
UNIT - IV
Company - Formation - Memorandum - Articles - Prospectus - Shares - Debentures -Directors -
Appointment - Powers and Duties - Meetings - Proceedings - Management ¬Accounts - Audit -
Appression and Mismanagement - Winding up.
UNIT - V
Factory Act - Industrial Disputes Act - Minimum Wages Act - Workmen Compensation Act.
REFERENCES
1.Keith-Davis & William Frederick: BUSINESS AND SOCIETY, (McGraw-Hill, Tokyo).
2. Rudder Dutt & Sundaram: INDIAN ECONOMY; New Delhi[Vikas]
3. Kapoor, N.D.: ELEMENTS OF MERCANTILE LAW.
4. Maheswari & Maheswari: MERCANTILE LAW.
5. Ramiah: COMPANY LAW.
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 COURSE CODE: H1030
PAPER-III ACCOUNTING AND FINANCE FOR MANAGERS
UNIT -I
Book-keeping and Accounting -- Accounting - Branches of Accounting - Concept and Role of
Financial Accounting and Management Accounting - International Accounting Standards. Financial
Accounting - Concepts and Conventions - Double Entry System - Preparation of Journal, Ledger
and Trial Balance - Preparation of Final Accounts: Trading, Profit and Loss Account and Balance
Sheet - Groups interested in Accounting Information - Introduction to Tally Package.
UNIT-II
Capital and Revenue Expenditure and Receipts - Depreciation - Meaning - Causes Methods of
Calculating Depreciation: Straight Line Method, Diminishing Balance Method and Annuity Method.
UNIT -III
Financial statement analysis and interpretation - Types of Analysis - Objectives - Tools of Analysis
- Ratio Analysis: Objectives, Uses and Limitations - Classification of Ratios: Liquidity, Profitability,
Financial and Turnover Ratios - Funds Flow Analysis and Cash Flow Analysis: Sources and Uses of
Funds, Preparation of Funds Flow statement, Uses and Limitations.
UNIT -IV
Breakeven Analysis - Cost Volume Profit Relationship - Applications of Marginal Costing
Techniques: Fixing Selling Price, Make of Buy, Accepting a foreign order, Deciding sales mix.
UNIT - V
Cost Accounting - Concepts -Distinction between Costing and Cost Accounting - Elements of Cost -
Preparation of Cost Sheet - Types of Costs.
REFERENCES
1. Horngren.C.T., ACCOUNTING FOR MANAGEMENT CONTROL - AN NTRODUCTION, Englewood
Cliffs, Prentice Hall, 1965.
2. Anthony,r.N., MANAGEMENT ACCOUNTING-TEXT AND CASES, Homewood,R.D., Inwin, 1964.
3. Charumathi,B and Vinayakam,N., FINANCIAL ACCOUNTING, S.Chand & Company Ltd., New
Delhi, 2002.
4. Maheswari,S.N., MANAGEMENT ACCOUNTING, Sultan Chand & Sons, New Delhi.
5. Hingorani, Ramanathan & Grewal, MANAGEMENT ACCOUNTING.
6. Jain S.P. and Narang, K.L., COST ACCOUNTING.
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 COURSE CODE: H1040
PAPER-IV QUANTITATIVE TECHNIQUES FOR MANAGERIAL DECISION MAKING

UNIT -I
INTRODUCTION: Definition of Research, Qualities of Researcher, Components of Research
Problem, Various Steps in Scientific Research, Types of Research; Hypotheses Research Purposes -
Research Design - Survey Research - Case Study Research.
UNIT-II
DATA COLLECTION: - Sources of Data: Primary Data, Secondary Data; Procedure Questionnaire -
Sampling Merits and Demerits - Experiments - Kinds - Procedure; Control Observation - Merits -
Demerits - Kinds - Procedure - Sampling Errors - Type-I Error Type-II Error.
UNIT-III
STATISTICAL ANALYSIS: Introduction to Statistics - Probability Theories -Conditional Probability,
Poisson Distribution, Binomial Distribution and Properties of Normal Distributions, Point and
Interval Estimates of Means and Proportions; Hypothesis Tests, One Sample Test - Two Sample
Tests / Chi-Square Test, Association of Attributes - t¬Test - Standard deviation - Co-efficient of
variations - Index Number, Time Series Analysis, Decision Tree.
UNIT -IV
STATISTICAL APPLICATIONS: Correlation and Regression Analysis - Analysis of Variance,
Completely Randomized Design, Randomized Complete Block Design, Latin Square Design - Partial
and Multiple Correlation - Discriminate Analysis - Cluster Analysis - Factor Analysis and Conjoint
Analysis - Multifactor Evaluation, Two-factor Evaluation Approaches.
UNIT - V
RESEARCH REPORTS: Structure and Components of Research Report, Types of Report, Good
Research Report, Pictures and Graphs, Introduction to SPSS.
REFERENCES
1. Wilkinson & Bhandarkar: METHODOLOGY AND TECHNIQUES OF SOCIAL RESEARCH.
2. Pauline Vyoung: SCIENTIFIC SOCIAL SURVEYS AND RESEARCH.
3. Panneerselvam, R., RESEARCH METHODOLOGY, Prentice Hall of India, New Delhi, 2004.
4. Kothari: RESEARCH METHODOLOGY.
5. Festinger. L & D. Katz: RESEARCH METHODS IN BEHA VIOURAL SCIENCE.
6. Sellitz, et al: RESEARCH METHODS IN SOCIAL RELATIONS.
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 COURSE CODE: H1050
PAPER-V MANAGEMENT OF FINANCIAL SERVICES

UNIT I
The basic Theoretical Framework: The financial system and its technology; The factors affecting
the stability of the financial system; Development finance vs. universal banking; Financial
intermediaries and Financial Innovation; RBI-Central Banking.
UNIT II
The Financial Institutions: A brief historical perspective. An update on the performance of IDBI,
ICICI, IFCI and SFCs, LIC & GIC. Asset/fund based Financial services - lease finance, consumer
credit and hire purchase finance, factoring definition, functions, advantages, evaluation and
forfeiting, bills discounting, housing finance, venture capital financing. Fee-based / Advisory
services: Stock broking, credit rating.
UNIT III
The banking Institutions: Commercial banks - the public and the private sectors - structure and
comparative performance. The problems of competition; interest rates, spreads, and NPAs. Bank
capital - adequacy norms and capital market support. Functions and activities, underwriting,
bankers to an issue, debenture trustees, portfolio managers. Financial Assets/ Instruments Rights
issues, issue of Debentures, issue of Equity shares - pre-issue activity, post-issue activities. The
regulatory framework: SEBI and Regulation of Primary and Secondary Markets, Company Law
provisions.
UNIT IV
The Non-banking financial institutions : Evolution, control by RBI and SEBI. A perspective on
future role. Unit Trust of India and Mutual Funds. Reserve bank of India Framework for/Regulation
of Bank Credit . Commercial paper: Features and advantages, Framework of Indian CP Market,
effective cost/interest yield.
UNIT V
Insurance: The Economics of Insurance; Life Insurance; Reinsurance; The Insurance Industry and
its regulation. Efficiency and the Structure of the Insurance Industry; Pension funds; Pension plans
REFERENCES
1. M.Y.Khan, Financial Services, Tata McGraw-Hill, New Delhi, 2002.
2. Harsh V.Verma, Marketing of Services, Global Business Press, 2002
3. Sames L .Heskett, Managing In the Service Economy, Harvard Business School Press, Boston,
2001.
4. M.Y.Khan, Indian Financial System, 4/eTata Mc Graw-Hill, New Delhi, 2001
5. Frank.J.Fabozzi & Franco Modigliani, Foundations of Financial Markets and Institutions, 3/e,
Pearson Education Asia, 2002.
6. H.R Machiraju, Indian Financial Systems, Vikas Publishing House Pvt. Ltd.2002.
7. Meir Kohn, Financial Institutions and Markets, Tata McGraw-Hill, New Delhi, 2001.
8. Pathak : Indian Financial Systems Pearson Education
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MFM YEAR II SYLLABUS

COURSE CODE: H2010

PAPER-VI CAPITAL BUDGETING AND FINANCIAL DECISIONS

UNIT I
Capital budgeting: rationale, scope, and policy framework; Model and practice; Capital improvement
programming; Prioritizing capital projects
UNIT II
Capital Budgeting: Nature of investment decisions; Investment evaluation criteria - net present
value, internal rate of return, profitability index, payback period, accounting rate of return: NPV
and IRR comparison
UNIT III
Capital financing strategy: Capital rationing; Risk analysis in capital budgeting. Cost of Capital:
Meaning and significance of cost of capital: Calculation of cost of debt, preference capital, equity
capital and retained earnings; Combined cost of capital (weighted); Cost of equity and CAPM
UNIT IV
Operating and Financial Leverage: Measurement of leverages; Effects of operating and financial
leverage on profit; analyzing alternate financial plans; Combined financial and operating leverage.
Capital Structure Theories: Traditional and M.M. Hypotheses - without taxes and with taxes;
Determining capital structure in practice.
UNIT V
Dividend Policies: Issues in dividend decisions, Walter's model. Gordon's model. M-M hypothesis.
dividend and uncertainty, relevance of dividend; dividend policy in practice; Forms of dividends;
stability in dividend policy; Corporate dividend behaviour.

REFERENCES:
1. Brealey, Richard A and Steward C. Myers: Corporate Finance, McGraw Hill, lnt. Ed., New York.
2. Chandra, Prasanna: Financial Management, Tata McGraw Hill, Delhi.
3. Hampton, John: Financial Decision Making, Prentice Hall, Delhi.
4. Advanced Capital Budgeting: Refinements in the Economic Analysis of Investment Projects,
Harold Bierman Jr. Paperback
5. Pandey, I.M: Financial Management, Vikas Publishing House, Delhi.

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 COURSE CODE: H2020
PAPER-VII WORKING CAPITAL MANAGEMENT

UNIT I
Working Capital Management: Meaning, Concepts, Classification and Importance of working
capital. Excess or Inadequate working capital, tis disadvantages; Objective of working capital;
Factors determining working capital requirements, Forecast of working capital requirement.
UNIT II
Working Capital Financing: Financing of working capital; Determining the working capital Financing
Mix; New Trends in Financing of Working Capital by Banks Dahejia Committee Report Tondon
Committee Report Chore Committee Report Marathe Committee Report Chakravarty Committee
Report Kannan committee Report.
UNIT III
Management of Cash: Nature of Cash Motives of holding Cash; Cash Management Managing cash
Flows Determining Optimum Cash Balance; Cash Management Models Investment of Surplus Funds
UNIT IV
Receivables Management: Meaning of Receivables; Cost of maintaining Receivables; Factors
Influencing Receivables; Meaning, Objects and Dimensions of Receivable Management; Formation
and Execution of Credit Policy; Formation and Execution of Collection Policy.
UNIT V
Inventory Management Meaning and Nature of Inventory; Purpose and Benefits of Holding
Inventory; Risk and cost of Holding Inventory; Inventory Management - Tools, Techniques,
Objective and Meaning; Determining Stock levels and safety stocks; EOQ, VED, and ABC Analysis;
Inventory Turnover Ratios; Aging schedule of Inventory; Classification, Codification and valuation
of Inventories.

REFERENCES
1. Bhattacharya, Hrishikas: Working Capital Management: Strategies and Techniques, Prentice
Hall, New Delhi.
2. James Sagner: Essentials of Working Capital Management: Latest trends around working
capital.
3. N.K. Jain: Working Capital Management: Working capital management of the manufacturing
firms and on customer services in the banking industry.
4. Robert Alan Hill: Working Capital Management: Theory and Strategy
5. R.K. Gupta and Himanshu Gupta: Working Capital Management and Finance: Handbook for
Bankers and Finance Managers.

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 COURSE CODE: H2030
PAPER-VIII SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

UNIT I
INVESTMENT SETTING: Financial and economic meaning of Investment; Characteristics and
objectives of Investment; Types of Investment; Investment alternatives; Choice and Evaluation;
Risk and return concepts.
UNIT II
SECURITIES MARKETS: Financial Market; Segments, Types; Participants in financial Market;
Regulatory Environment, Primary Market, Methods of floating new issues, Book building; Role of
primary market, Regulation of primary market, Stock exchanges in India BSE, OTCEI , NSE, ISE,
and Regulations of stock exchanges, Trading system in stock exchanges SEBI.
UNIT III
FUNDAMENTAL ANALYSIS: Economic Analysis, Economic forecasting and stock Investment
Decisions, Forecasting techniques; Industry Analysis : Industry classification, Industry life cycle,
Company Analysis, Measuring Earnings, Forecasting Earnings; Applied Valuation Techniques,
Graham and Dodds investor ratios.
UNIT IV
TECHNICAL ANALYSIS: Fundamental Analysis Vs Technical Analysis, Charting methods, Market
Indicators; Trend, Trend reversals, Patterns, Moving Average, Exponential moving Average,
Oscillators, Market Indicators, Efficient Market theory.
UNIT V
PORTFOLIO MANAGEMENT: Portfolio analysis, Portfolio Selection, Capital Asset Pricing model,
Portfolio Revision, Portfolio Evaluation, Mutual Funds.

REFERENCES
1. Reilly & Brown, Investment Analysis and Portfolio Management, Cengage Learning, 5th edition,
2002.
2. S. Kevin , Securities Analysis and Portfolio Management , PHI Learning , 2002.
3. Bodi, Kane, Markus, Mohanty, Investments, 4th edition, Tata McGraw Hill, 2002.
4. V.A.Avadhan, Securities Analysis and Portfolio Management, Himalaya Publishing House, 2002.
5. V.K.Bhalla, Investment Management, S.Chand & Company Ltd., 2001.
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 COURSE CODE: H2040
PAPER-IX INTERNATIONAL BUSINESS FINANCE

UNIT I
Introduction to International Business: Elements of International Business, Globalisation;
International Trade theories and their application: Why do nations trade, Theories of International
trade- mercantilism, Absolute advantage, Comparative advantage, Heckscher- Ohlin, Product life
cycle theory and Porter’s diamond model; International Business Environment: Economic
Environment, Political Environment, Demographic environment, Legal Environment.
UNIT II
Culture and International Business: Meaning of Culture, Country Culture, and Culture in an
International Business Organization; Foreign Investments- Types and Motives: Foreign
investments, types of foreign investments, motives; Regional integration: Overview of Regional
Integration, Types of Integration, Regional Trading Arrangements, India and Trade Agreements.
UNIT III
Global trade institutions: World trade organization (WTO), International Labour Organisation
(ILO); International Financial Management: Overview of International Financial Management,
Components of International Financial Management, Scope of International Financial Management;
International Accounting Practices: International Accounting Standards, Accounting for
International Business, International Regulatory Bodies, International Financial Reporting
Standards.
UNIT IV
Strategic Management: Strategic Management, Strategic Planning, Strategic Management
Process; Ethics in International Business: Business Ethics Factors, International Business and
Ethics, National Differences in Ethics, Corporate Governance, Code of conduct for MNCs.
UNIT V
Finance and International Trade: Understanding payment mechanism, Documentation in
International Trade, Financing Techniques, Export Promotion Schemes, Export and Import
Finance; Global Sourcing and Indian Industries structure: What is global sourcing, Reasons for
global sourcing, advantages and disadvantages, Challenges for Indian Businesses

REFERENCES
1. John D. Daniels, Lee H. Radebaugh, Daniel P. Sullivan: International Business: Environments
and Operations, 2001
2. Jeff Madura: International Financial Management: International finance theory with current,
practical applications, 2000
3. Helen Deresky: International Management: Managing Across Borders and Cultures, 1999
4. Michael Connolly: International Business Finance: Business and finance in the global economy,
2002
5. Charles W. L. Hill: International Business: Pros and cons of economic theories, government
policies, business strategies, organizational structures, 2002

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Central
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COURSE CODE: H2050

PAPER-X GLOBAL FINANCIAL MARKETS AND INSTRUMENTS

UNIT I
Asset Pricing and Present Value: Overview of Global Financial Markets, Risk and Return, Asset
Pricing and the Present Value Formula.
UNIT II
Risk and Risk Aversion: Asset Allocation, Portfolio Theory and Mean-Variance Analysis,
International Investments, the Black and Litterman Model, Life-Cycle Investing.
UNIT II
Multifactor Models and the Arbitrage Pricing Theory (APT), Market Predictability, Market
Hypothesis, The Random Walk Hypothesis, Anomalies, Bubbles and Market Crashes; Behavioral
Finance, Money and Finance (R), Investment, Extrapolation and Risk.
UNIT III
Money Management Industry: Forwards, Futures and Swaps. Dimensional Fund Advisors, Ivory-
tower Investing; Derivatives Markets, Option Pricing, Hedge Funds and Crashes, the LTCM
Securitization; Structured Finance: Asset Backed Securities, the Collapse of Long-Term Capital
Management.
UNIT IV
Financial Markets Instruments: T-Bills, NBCD, Commercial Paper, Banker’s Acceptances; Money
Market Rates, Repurchase Agreements; Capital Market Instruments: Stocks, Mortgages, Mortgage
backed securities, Bonds, Bond Prices and Yields, the Term Structure of Interest Rates, Duration
Matching and Immunization.
UNIT V
Currencies and exchange rates: Bid-ask spreads, market structure, triangular arbitrage, real
exchange rates, exchange rate systems, exchange rate determination, role of central banks,
forecasting, and crashes; the global CAPM: Global diversification, global equity investments
strategies; Currency crises: financial, banking, and sovereign.

REFERENCES
1. Stephen Valdez: An Introduction to Global Financial Markets: commercial and investment
banking, foreign exchange, money and bond markets, stock markets and derivatives products,
2001
2. J. Orlin Grabbe: International Financial Markets: Major international financial markets - foreign
exchange, Eurocurrencies and international bonds, 2002
3. N.K. Guptha: Financial Markets, Institutions & Services, 2001
4. H.R. Machi Raju: International Financial Markets and India, 2002
5. Sunil Parameswaran: Fundamentals of Financial Instruments: An Introduction to Stocks, Bonds,
Foreign Exchange, and Derivatives, 2002

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