CHRIST UNIVERSITY, BANGALORE

DEPARTMENT OF MANAGEMENT STUDIES

MANAGEMENT ACCOUNTING

CLASS:MFM231 SEMESTER: II

Overview

Financial decisions affect virtually every area of the business. The subject „Management Accounting‟

comprises of, an in-depth coverage of two crucial areas of business i.e., Management of Current Assets &

Management of Working Capital. It presents the principles and techniques of managing each element of

current assets and their financing. Basic theories & application is included in each unit. The course is

intended to familiarize students with the basic concepts and to application of management accounting

principles in practice at intermediate and advanced level of management.

Course Objective:

To emphasize on application of theoretical knowledge and help managers in decision making and to

familiarize the students with managerial financial decisions, which are taking, place in organizations. Also,

to appreciate the importance of financial information for decision-making process and to interpret the

impact of such financial decisions on the value creation for the business.

Specific objective

1. To impart managerial accounting and control system skills for decision making under challenging

business situations.

2. To make students understand the concept and application of marginal cost, variance and break even

analysis.

3. To impart the knowledge of tools and techniques of ratios, budgeting and marginal costing.

4. To make students to interpret accounting information for managerial decisions.

Course Text: Cost and Management Accounting by Dr. S. N. Maheshwari, Sultan Chand Publications

Unit Date Hours Methodology Remarks

I UNIT-I

Cost Elements, Cost Centers, Profit Planning

PRESENTATION

& PROBLEM SOLVING

Cost Elements, Cost Centers, Profit

Planning 5-11-2013 1 -D0-

Activities and Prices, Cost Estimates

with Material, 8, 9 2 -D0-

Scenario of Cost Object Controlling, 11, 12, 2 -D0-

Profit Center and profit analysis. Cost

accounting system, 15 1 -D0-

General ledger system.. -D0-

Cost statement and report preparation 16,18 2 -D0-

II Short Term Decision Making -D0-

Make Vs. Buy Decisions, 19,22 2 -D0-

Decisions Relating To Acceptance

And Rejection Of A Special Offer /

Order,

23,25 2

Selling Price Decisions, 26 1 -D0-

Add Or Drop Products, 29 1 -D0-

Product Line Decisions, 2-12-2013 1 -D0-

Operate Or Shut Down Decisions, 3 1 -D0-

Manufacture V s. Sub-Contract Or 5 1 -D0-

Lease Out Decisions, 6

Decisions Based On Incremental

Revenue And Differential Cost

Approach, Choice Based Alternative

7,10 2 -D0-

III Budgeting -D0-

Budget And Budgeting, 13 1 -D0-

Budgetary Control, 14 1 -D0-

Functional Budgets, 16 1 -D0-

Master Budget 17 1 -D0-

Cash Budget, 19,20,21 3 -D0

Flexible Budgets, 2-1-2014 1 -D0

Projected Balance Sheet, 4 1 -D0

Responsibility Budgeting, 6 1 -D0-

Performance Budgeting, 7 1 -D0-

Zero Based Budgeting, (Theory Only) 10 1 -D0-

Responsibility Accounting (Theory

Only) 11 1 -D0-

IV Financial Statement Analysis -D0-

Comparative Income Statements 13 1 -D0-

Analysis And Common Size, 21 1 -D0-

Comparative And Common Size

Balance Sheet, 22 1 Case Study

Tata Motors

Infosys ltd

Funds Flow Statement, And 23,24,25 3 -D0-

Cash Flow Statements 28,29,31 3 -D0-

Ratio Analysis

V Liquidity ratios, 1-2-2014 1 -D0-

Profitability ratios, 4,5 2 -D0-

Turnover ratios, 7,10 2 -D0-

Leverage ratios and Investment

Analysis ratios., 11,12 2 -D0-

Construction of P&L account and

Balance sheet with the help of ratios 14,17 2 -D0-

Marginal Costing Vs. Absorption

Costing (Theory Only) 18,19 2 -D0-

VI Variance Analysis- -D0-

Importance of variance analysis for

cost control,

Methods of calculating variances:

Material cost variance,

Materials Price Variance,

Materials Usage Variance,

Materials Mix Variance,

Materials Yield variance,

Labour cost variance,

Labour rate variance,

Labour efficiency variance,

Overhead Variances –

Manufacturing Overhead

Variances,

Variable Overhead Variances,

Combined-overhead variance-

Three Variance Approach and

Two-variance Approach.

21,23,24,25

26,28,

1-3-2014,

5,

8 -D0-

VII

Responsibility Accounting –

Introduction, Meaning, and Objectives,

Types of Responsibility centers. (Theory

Only)

6,10 2 Article review

(Self study)

VIII Inflation accounting –

Meaning, objective, nature and importance

and methods, (Theory Only)

11, 1 Article review

(Self study)

Human Resource Accounting,

Meaning, Objective, Nature and importance,

methods-Human resource cost

accounting(HRCA), Human resources value

accounting(HRVA) (Theory Only)

12 1 Article review

(Self study)

Revision 15,17 2

Total 60

CIA DETAILS:

DETAILS MARKS ALLOTTED

CIA-I Mid semester Exam for 50 marks 50

CIA II Written assignment (Two components) 20

CIA III Other than written assignment 20

Attendance As per slab (Maximum) 5

CIA-II DETAILS:

Topic Date of submission Marks

Written assignment

Topics mentioned below 27– 11- 2013 20

CIA – II TOPICS:

1) You are required to analyze the financial position of any two listed companies for last five years

using all financial statement analytical tools. Pls upload the file in the moodle on or before 25th

November. (10 Marks)

2) Does management control system require Information technology support for effective

implementation and discuss different ERP available with regard this including SAP. Pls upload your

file in the moodle on or before 25th

November.

CIA-III DETAILS:

CIA – III

It can be any one or combination of the following 1. Problem solving (10 Marks) 2. Discussion forum (5 Marks) 3. MCQ test (5 Marks)

GENERAL ASSESSMENT CRITERIA

Assessment of the submitted work will be evaluated on understanding of the concepts learned, research

done and the presentation. The written assignments must satisfy the following:

1. Understanding of the relevant topic.

2. Ability to apply the concept from the text appropriately to the question or topic of discussion.

3. Evidence of critical thinking, valid arguments, appropriate evidence, to articulate and defend a position

on issues.

4. On time submission - Late submission would welcome a penalty of 10% per day for every day such

work is overdue including Weekends and Public Holidays.

5. Your opinion on an issue is not what matters but how you relate it to the appropriate portions of the text,

supported with other evidences (collected from library or other researches from authentic sources) is

what fetches marks.

Plagiarism and Unethical Practices Plagiarism is using the work of others (ideas & words) without acknowledging your source of information

or inspiration.

This includes:

1. Using words more or less exactly as used in articles, lectures, TV, books or anywhere else

2. Using other peoples ideas or theories

3. Paraphrasing what you read or hear

4. Plagiarism is a Serious ACADEMIC OFFENSE and the plagiarized work is usually disqualified.

Plagiarism will include any or all of the following:

1) Submitting a paper someone else has written as your own work.

2) Using another author's phrasing with occasional slight modification but without quotation marks to

indicate the unchanged phrasing, even though you have referenced that book as the main source of the

idea.

3) Occasionally using someone else's phrasing without quotation marks, in a paper which is mainly original

4) Using someone else's organizational terms without acknowledgment, except for generic terms like

"quality" or "reframing" [there is a fine line with this].

5) Using someone else's illustrations and examples as if they were your own.

6) Presenting someone else's opinions as if they were your own, or borrowing specific facts from another

author without acknowledging the source.

7) Using experimental results obtained by another person as if they were your own.

8) Using another author's charts and graphs.

9) Half crediting of a source

10) Hiding the dependency on a source by translating its academic terms into more credible language and

including it in your work.

11) You have to give credit to the source even if it is an idea, word, Phrase, analysis, example, illustration,

interpretation or a paraphrase. The bottom line is if it is not your own it has to be referenced. BOOKS FOR REFERENCE:

1. Khan & Jain, Management Accounting, Mc. Graw Hill

2. I.M Pandey, Management Accounting, Vikas Publishers

3. Homgren, Sundem, Stratton, Introduction to Management Accounting, Pearson Education

4. S.N. Maheshwari, Management Accounting, Sulthan Chand & Sons

5. M.N. Arora, Management Accounting, Himalaya Publishers.

COURSE PLAN

SUBJECT : APPLIED FINANCIAL ECONOMICS

MFM 232/ SEMESTER II, MFM FACULTY: Manjunath Shettigar

4 Credits 4 hrs/ week

COURSE DESCRIPTION:

Financial economics is developing at a blistering pace: the instruments, the technology, the applications, and

the size of the markets. Students who aspire in a financial profession need a solid grounding in the

fundamentals of this subject techniques provided by this subject provide substantial assistance to finance

and investment areas.

Learning Outcome:

To understand the average-cost pricing and a critique of the neoclassical theory of the firm: the

marginality controversy.

To Managerial Theories Of The Firm:Baumol's Theory Of Sales Revenue Maximization

To understand Marris's Model Of The Managerial Enterprise And O.Williamson's Model Of

Managerial Discretion

Level of Knowledge: Advanced

Sl No. Module Date Unit 1

(5 hours) Average-cost pricing: A critique of the neoclassical

theory of the firm: the marginalist controversy

The Basic Assumptions of the Neoclassical Theory 11-11-2013

14-11-2013

The Hall and Hitch Report and the 'Full-Cost' Pricing

Principle, Gordon's Attack on Marginalism, 16-11-2013

18-11-2013

In Defence of Marginalism 21-11-2013

Unit II

(10 hours) A Representative Model Of Average-Cost Pricing

Goals of the Firm, Demand and Cost Schedules, Price

Determination:

22-11-2013

23-11-2013

25-11-2013

28-11-2013 The 'Mark-Up' Rule Comparison with Pure Competition, 29-11-2013

Predictions of Average-Cost Pricing Theory in Changing

Market Conditions

30-11-2013

2-12-2013

5-12-2013 Critique of Average-Cost Pricing 6-12-2013

7-12-2013 Unit III

(8 hours) limit-pricing (or entry-preventing pricing) Bain's limit-

pricing theory

Barriers to New Competition, A. Bain's Concepts of

'Competition' and 'Entry', Barriers to Entry, Summary of

Bain's Empirical Findings, Industry Equilibrium,

9-12-2013

12-12-2013

13-12-2013

14-12-2013

B. RECENT DEVELOPMENTS IN THE THEORY OF

LIMIT PRICING

The Model of Sylos-Labini, The Model of Franco

Modigliani, The Model of Bhagwati, The Model of

Pashigian

16-12-2013

19-12-2013

20-12-2013

21-12-2013

Unit IV

(7 hours) Managerial Theories Of The Firm:Baumol's Theory Of

Sales Revenue Maximisation

Rationalisation of the Sales Maximisation Hypothesis, 2-1-2014

Interdependence and Oligopolistic Behaviour, 3-1-2014

Baumol's Static Models, 4-1-2014

6-1-2014 Baumol's Dynamic Model, 9-1-2014

10-1-2014 Empirical Evidence 11-1-2014

Unit V

(11 hours) Marris's Model Of The Managerial Enterprise And

O.Williamson's Model Of Managerial Discretion

Goals of the Firm, Constraints, 13-1-2014

16-1-2014 The Model: Equilibrium of the Firm, Maximum Rate of

Growth and Profits,

17-1-2014

18-1-2014

20-1-2014 The Managerial Utility Function,

Basic Relationships and Definitions,

23-1-2014

24-1-2014

25-1-2014 The Model,. A Simplified Model of Managerial Discretion,

The General Model of Managerial Discretion

27-1-2014

30-1-2014

31-1-2014

Unit VI

(7 hours) Behavioural Theory Of The Firm The Beha Vioural

Model Of Cyert And March

The Firm as a Coalition of Groups with Conflicting Goals,

Satisficing Behaviour, Means for the Resolution of the

Conflict, The Process of Decision-making,

1-2-2014

3-2-2014

6-2-2014

7-2-2014 Uncertainty and the Environment of the Firm, A Simple

Model of Behaviourism.

8-2-2014

10-2-2014

13-2-2014

Unit VII

(7 hours) Factor Pricing Pricing Of Factors Of Production

Factor Pricing 14-2-2014

Factor Pricing in Perfectly Competitive Markets 15-2-2014

17-2-2014 Wage and interest determination 20-2-2014

21-2-2014

22-2-2014

24-2-2014 Revision 27-2-2014

15-3-2014

Essential Readings:

A. Koutsoyiannis (1979), Modern Micro Economics. New Delhi. Macmillan Press Ltd International Edition.

References:

Copeland. T. E. and J. F. Weston (1992). Financial Theory and Corporate Policy, Addison Wesley.

Brealey, R. and S. Myers (1997), Principles of Corporate Finance, fifth edition, New York. McGraw

Hill,.

Elton, E.J and M.J. Gruber (1991). Modern Portfolio Theory & Investment Analysis, (fourth edition)

John Wiley & Sons.

Houthakker, H.S. and P.J. Williamson (1996). Economics of Financial Markets. Oxford University

Press.

Evaluation Criteria

1. CIA I

Assignment 1( Library based) ( 20 marks)

Presentation1( Ativity based)

2. CIA II

Moodle Quiz (5 numbers)

ET readings

Seminar 1 ( 20 marks)

3. CIA III

Mid Semester Test (50 marks)

4. End Semester Examination (100 marks)

CIA 1 Assignments

CIA 2 Quiz, ET Readings, Seminar CIA 3 Mid Semester Examination January 15

th , 2014 (Tentative

Dates)

Course objective: To introduce the different functional areas of Banking.

To lay a sound foundation on Banking concepts and their managerial implications.

To enable them to familiarize with the regulatory framework of Banking and the laws relating to the business relationship between the bank and its customers.

To facilitate the students with the modern practical banking applications in the Indian and global context.

Unit Topics Date Hours Methodology

1 Introduction to Banking 5/11/13 1 Lecture/Presentation

History and Evolution of

Banking

8/11/13 1 -do-

commercial Banks –

Importance, role and corporate

responsibility

11/11/13 1 -do-

Reforms in the banking sector 12/11/13 1 -do-

CRM practices in banks 13/11/13 1 -do-

Banking legislation 19/11/13 1 -do-

2 Law and procedure governing

banking instruments: cheques

15/11/13 1 -do-

Instruments: bills of exchange,

promissory notes

18/11/13 1 -do-

Letter of credit and deferred

payment and guarantees

19/11/13 1 -do-

Securities – issues and legalities 22/11/13 1 -do-

Valuation of securities 25/11/13 1 -do-

Charge on securities : lien,

pledge, mortgage,

Hypothecation

29/11/13 1 -do-

ALM in commercial banks 02/12/13 1 -do-

Risk in banks - lending policies

and profitability planning

03/12/13 1 -do-

3 Development banking and

central banking

04/12/13 1 -do-

Growth of development

banking

06/12/13 1 -do-

Role of development banks in

economic development

09/12/13 1 -do-

Reserve bank of Indi and it’s

control on commercial banks

10/12/13 1 -do-

Impact of reserve bank of

India’s policies on operations of

11/12/13, 1 -do-

commercial banks 12/12/13,

National Bank for Agriculture

and Rural

Development

13/12/13 1 -do-

National Housing Bank 16/12/13 1 -do-

Law relating to Banking

regulation

17/12/13 1 -do-

Banker’s Book evidence 18/12/13 1 -do-

Recovery of debts due to banks

and financial institutions

20/12/13 1 -do-

4 Banking sector Reforms in

India:

Overview: co-operative banks:

Nationalized banks; private

sector banks; international

banking; foreign banks

3/1/14

4/1/14

5/1/14

3 -do-

Offshore banking: Recent

Developments in Banking

sector, Banking

Ombudsman(complaints

redresssal)

6/1/14 1 -do-

5 Innovation in banking and

introduction to banking

application software:

Electronic payment systems:

Teller machines at the bank

counters, cash dispensers

7/1/14 1 -do-

ATMs, Anywhere Anytime

banking

8/1/14 1 -do-

Home banking (corporate and

personal), online enquiry and

update facilities personal

identification.

10/1/14 1 -do-

Numbers and their use in

conjunction with magnetic

cards of both credit and debit

cards

20/1/14 1 -do-

Smart cards, signature storage

and display by electronic

means, cheque truncation

22/1/14 1 -do-

MID SEMESTER EXAMINATION

Electronic fund transfers

system:

NEFT, RTGS, SWIFT etc.,-

NFS,SFMS,INFINET etc.,

(security features, formats and

infrastructure requirement)

24/1/14,

27/1/14,

28/1/14

3 -do-

4 Deposit and credit Provisions: 29/1/14

1 -do-

Credit assessment :fund based

and Non-fund based services

31/1/14 1 -do-

Loan financing: different types,

its pricing, credit disbursal &

monitoring

11/2/14 1 -do-

7 Risk management in banks-

Introduction

12/12/14 1 -do-

Risk management process 14/2/1 1 -do-

Risk identification- market Risk,

Liquidity, interest rate, forex

credit, operational, capital and

reputation risk

17/2/14,

19/2/14,

24/2/14

3 -do-

Risk measurement and risk

management

26/2/14

27/2/14

2 -do-

Market Risk- Beta Management 03/3/14 1 -do-

GAP Analysis, duration 04/3/14 1 -do-

Value at risk, forex risk-

operating exposure

05/3/14 1 -do-

Operational risk – operating

leverage and financial leverage

07/3/14 1 -do-

Article review 11/3/14 1 Article review

Revision 14/3/14 1

Revision 17/3/14 1

Revision 18/3/14 1

54

CIA DETAILS

Details Marks Allotted

CIA – I Mid semester Exam for 50

marks

50

CIA –II Written assignment (15

marks) quiz ( 5 marks),

20

CIA – III Case study, article

review(10marks)project

presentation (10 marks)class

participation (5 marks)

25

Attendance As per slab(maximum) 5

Topic Date of

submission

Marks

Written

assignment

Topics

mentioned

below

04/12/13 15/12/2013

CIA – II TOPICS

a. Critically examine the issues in online banking. b. Consult with a concerned official of any foreign bank and find out the features of various Pension

fund schemes available. CIA – III Topics

a. Group mini project in different banks b. Presentation, group discussions, Question and answers etc., c. Class participation.

RECOMMENDED BOOOKS

Banking Law and Practice by S.N Maheswari, Kalayani Publishers.

Books for Reference:

1.M L Tannan, Banking law and practice, Orient Law House, New Delhi

2/ S.N. Gupta, Banking Law in Theory and Practice , Allahabad

3. Banking Theory and Practice Shekhar & Shekhar.

CHRIST UNIVERISTY Department of Management Studies

Master of Financial Management (MFM) II - Semester (November 2013 to March 2014)

Hosur Road, Bangalore – 29

COURSE PLAN

Subject: Research Methods & Data Analysis Faculty Name: Dr. K. Srinivasan

Subject Code: MFM 234 Email ID: srinivasan@christuniversity.in

No. of Credits: FOUR Marks: 100

INTRODUCTION:

The data obtained from a study may or may not be in numerical or quantitative form, that is, in the form of numbers.

If they are not in numerical form, then we can still carry out qualitative analyses based on the experiences of the

individual participants. If they are in numerical form, then we typically start by working out some descriptive

statistics to summaries the pattern of findings. These descriptive statistics include measures of central tendency within

a sample and measures of the spread of scores within a sample. Another useful way of summarizing the findings is by

means of graphs and figures. Several such ways of summarizing the data are discussed later on in this chapter.

In any study, two things might be true: there is a difference or there is no difference. Various statistical tests

have been devised to permit a decision between the experimental and null hypotheses on the basis of the data.

Decision making based on a statistical test is open to error, in that we can never be sure whether we have made the

correct decision. However, certain standard procedures are generally followed, and these are discussed in this chapter.

Finally, there are important issues relating to the validity of the findings obtained from a study. One reason why the

validity of the findings may be limited is that the study itself was not carried out in a properly controlled and scientific

fashion. Another reason why the findings may be partially lacking in validity is that they cannot readily be applied to

everyday life, a state of affairs that occurs most often with laboratory studies. Therefore, the issues relating to these

two kinds of validity are discussed in the module.

COURSE OBJECTIVES:

1. To investigate the basic understanding of qualitative and quantitative research and how it pave way for the

future researchers in developing their goals.

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

3. To study about the valuable guidelines provided by SPSS, Gretl and Eviews package and understand their

functions in quantitative research towards business operations.

Referred Books:

1. Arora P. N & S. Arora on Statistics for Management, Sultan Chand Sons Company Limited, New Delhi.

2. Brooks Chris (2002), “Introductory Econometrics for Finance”, Second Edition, Cambridge University Press,

Cambridge.

3. Gujarati, D. N. (2003), “Basic Econometrics”, Fourth Edition. McGraw-Hill, New York.

4. Kothari. C. R on Research Methodology towards Methods & Techniques, New Age International Publishers,

New Delhi.

Recommended Text:

1. C. R. Kothari on Research Methodology towards Methods & Techniques, New Age International Publishers,

New Delhi.

2. P.N. Arora & S. Arora on Statistics for Management, Sultan Chand Sons Company Limited, New Delhi.

RESEARCH METHODS AND DATA ANALYSIS

UNIT: I Research Methodology - An Introduction - 8 Hrs

Meaning of research, Objectives of Research, Significance of Research, Research and Scientific method, Objectivity,

Importance of knowing how research is done, Types and Methods of research, research process, Criteria of good

research, Limitations of Social research, Ethics in Social science research.

UNIT: II Research Design - 8 Hrs

Meaning of a Research problem, Selecting the problem, Necessity of defining the problem, Techniques involved in

defining a problem, An illustration, Conclusion, Meaning of Research design, Need for Research Design, Basic

features of a good design, importance concepts relating to research design, Different Research Designs – Exploratory

research Design & Conclusive Research Design: Descriptive Research & Causal Research, Basic Principles of

Experimental Designs.

UNIT: III Sampling - 5 Hrs

Introduction, Sampling techniques or methods, Probability sampling techniques: Simple Random Sampling,

Systematic Sampling, Stratified Sampling, Cluster Sampling, Non Probability Sampling: Convenient Sampling,

Judgment Sampling, Quota Sampling, Snowball Sampling, Sampling Design & Sampling technique, Sample size,

sampling & Non-Sampling Errors

UNIT: IV Methods of Data Collection - 6 Hrs

Collection of Primary Data, Collection of data through Questionnaire, Collection of Data through Schedule,

Difference between Questionnaires and Schedules, Guidelines for Constructing Questionnaire/Schedule, Some other

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

UNIT: V Hypothesis Testing - 12 Hrs

Introduction, Concepts in Hypothesis Testing, Hypothesis Tests for a Population Mean, Hypothesis tests for other

Parameters, Tests for Normality, Chi-Square test for Independence, One-Way ANOVA, Two-Way ANOVA, Non

Parametric Methods - Sign test, Mann Whitney U test, Kruskal Wallis test, Kolmograv Smirnov test.

UNIT: VI Statistical Package for Social Studies - 12 Hrs

Overview of SPSS for Windows Step by Step Process, Creating & Editing a Data File, Managing Data, Correlation,

Bivariate Regression, Factor Analysis, Cluster Analysis and Discriminate Analysis, Conjoint Analysis, Reliability

Analysis, Regression Analysis – Probit Regression - Tobit Regression - Logit Regression.

UNIT: VII Basic Applied Financial Econometrics - 9 Hrs

Introduction to Financial Econometrics, Returns in Financial Modeling, Classical Linear Regression Models (CLRM),

Generalized Regression Models and Issues Related Assumptions of Normal CLRM, Errors in Variables,

Multicollinearity, Heteroskedasticity, Autocorrelation & its Consequences on the OLS, Detecting Autocorrelation,

Resolving Autocorrelation.

UNIT: VIII Report Writing - 4 Hrs

Significance of Report Writing, Different steps in Writing Reports, Layout of a Research Report, Types of Reports,

Mechanics of Writing a writing a research report, Precautions for writing research reports.

RESEARCH METHODS & DATA ANALYSIS SESSION PLAN

Module/ Hrs Topics Session Methodology

I – 8 Hrs

(05/11/13 to

24/11/13)

Meaning, Objective & Significance of Research, 2

Lectures,

Presentations &

Assignment

Research and Scientific method & Its Objectivity 1

Importance of knowing how research is done 1

Types & Methods of research, research process 1

Criteria of good research 1

Limitations of Social Research 1

Ethics in Social Science Research 1

II - 8 Hrs

(26/11/13 to

08/12/13)

Meaning of a Research Problem, Selecting the

Problem, Necessity of defining the Problem

1

Lectures,

Presentations, &

Discussions

Techniques involved in defining a Problem - An

illustration, Conclusion

2

Meaning of Research Design, Need for Research

Design and Basic features of a Good Design

1

Importance concepts relating to Research Design 1

Different Research Designs - Exploratory Research

Design & Conclusive Research Design

2

Descriptive Research and Causal research, Basic

Principles of Experimental Designs.

1

III - 5 Hrs

(10/12/13 to

17/12/13)

Introduction, Sampling Techniques or Methods,

Probability Vs Non-Probability Sampling

1

Presentation,

Discussions &

Lectures

Probability Sampling Techniques: Simple Random

Sampling, Systematic Sampling, Stratified Sampling,

Cluster Sampling

1

Non Probability Sampling: Convenient Sampling,

Judgment Sampling, Quota Sampling, Snowball

Sampling

1

Sampling Design & Choice of Sampling techniques 1

Sample size, Sampling and Non-Sampling Errors 1

IV - 6 Hrs

(18/01/14 to

31/01/14)

Collection of Primary Data, Collection of data through

Questionnaire & Schedule

1

Presentation,

Discussions &

Case Study

Difference between Questionnaires and Schedules 1

Guidelines for Constructing Questionnaire & Schedule

& other Methods of Data Collection.

2

Collection of Secondary data, Selection of appropriate

method of data collection

2

V - 12 Hrs

(01/02/14 to

19/02/14)

Introduction, Concepts in Hypothesis Testing 1

Discussion, Chalk

& Talk

Hypothesis Tests for a Population Mean, Hypothesis

tests for other Parameters & Tests for Normality

1

Chi-Square test for Independence 2

One-Way ANOVA & Two-Way ANOVA 4

Non Parametric Methods - Sign test, Mann Whitney U

test

2

Kruskal Wallis test, Kolmograv Smirnov test. 2

VI - 09 Hrs

(20/02/14 to

28/02/14)

Introduction to SPSS, Overview of SPSS for Windows

Step by Step

1

Students Hands-

on Practice

Process, Creating & Editing a Data File, Managing

Data

1

Correlation & Bivariate Regression 1

Reliability test, Factor & Cluster Analysis 2

Discriminate Analysis & Conjoint Analysis 2

Regression Analysis – Probit Regression - Tobit

Regression - Logit Regression.

2

VII - 09 Hrs

(01/03/14 to

Introduction to Financial Econometrics 1

Discussion, Chalk

& Talk

Classical Linear Regression Models (CLRM),

Generalized Regression Models & Issues Related to

Assumptions on CLRM, Errors in Variables

2

Multicollinearity & Heteroskedasticity 2

11/03/14)

Autocorrelation & its Consequences on the OLS 1

Detecting & Resolving Autocorrelation 2

VIII - 4 Hrs

(12/03/14 to

16/03/14)

Significance & Different Steps in Report Writing 2 Lectures,

Presentation &

Discussion Layout of a Research Report & Types of Reports 1

Mechanics & Precautions of Writing Report 2

TOTAL 61

ASSESSMENT AND EVALUATION

Details Particulars Submission Date

CIA-I Mid Semester Exam for 50 marks 15th January 2014

CIA – II

Written Assignment Topics mentioned below

a) Documentary on Research Methods

b) Data Identification

c) Open Book test

1th December 2013

CIA III

Students want to work on Statistical Package like SPSS, Gretl &

Eviews and the results will be evaluated through Peer Group &

Faculty

a) Econometric & Statistical Model submission through Online

b) Results & Discussion Skills

c) Error verification

1th February 2014

Attendance As per Slab (Maximum)

CIA – II ASSIGNMENT TOPIC:

The students are requested to submit a detailed report on certain research topic like issues on Basel Accord

Norms, Fuel Price Fluctuations, Monetary Control, Euro Crisis, Commodity Derivative Issues, Behavioural Finance,

Hedging and Weather Derivatives etc, where the topic will be given by the subject coordinator and they want to make

a presentation and pass valuable suggestion from the research topic for the class room development.

CIA – II ASSIGNMENT TOPIC:

In CIA - III, students are advised to make a Hands-on Session with certain statistical models, where the topic

and software package will be provided by the class coordinator. The students are requested to make a presentation on

the assigned topic for 20 minutes. The presentation will be marked by the class students and the faculty.

CHRIST UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

COURSE PLAN 2013-2014

CLASS: II SEM MFM 235

SUBJECT TEACHERS

SUBJECT: BUSINESS INFORMATION SYSTEMS Vijay Agawane

UNITS TOPICS Date HOURS METHODOLOGY

I(5)

MODULE:I

A SIMPLE MODEL OF BIS: Meaning of BIS,

Definition, and A Simple model of BIS.

Nov 5 1 PPT

What an information system, Characteristics of

information, Classification

Nov 6 1 Lecture

What is a system, Computer based information

systems, Technical operation of a CBIS

Nov 8 1 PPT

Business data processing, Data processing cycle Nov 10 1 GD

A business perspective of information systems Nov 12 1 Lecture

II(8)

MODULE II:

What are management information systems,

Features of BIS

Nov13 1 GD

Importance of management information systems, Nov15 1 CASE STUDY

Pyramid structure of BIS Nov17

1 PPT

BIS versus data processing Nov18 1 PPT

Subsystems of BIS Nov19 Lecture

The Conceptual structure of BIS Nov20 1 CASE

Security and international issues of BIS Nov22 1 GD

BIS issues of a multinational organization? Nov24 1 Article Review

III(7)

MODULE III:

THE CONCEPT OF DATA PROCESSING:

Database, Major issues in data management

Dec3

1 Lecture

File management, File organization, File based

systems problems

Dec 4 1

Online(Wi-Fi)

Objectives of DBMS, Database concepts Dec 6 1

Database models Dec 8 1 Online(Wi-Fi)

Difference between models Dec 10 1 Online(Wi-Fi)

Data ware Housing, Data Mining. Dec 12 1 Online(Wi-Fi)

Differences between DBM and FM Dec14 2 Online(Wi-Fi)

IV(8)

MODULE IV:

BIS AND NETWORKS : Batch Processing, Online

Processing (Quick Response Systems)

Dec 15

1

Online(Wi-Fi)

Architecture of OLTP and TPS Dec 17 1 PPT

Components of a Telecommunication Systems Dec19 1 Lecture

Communication Networks Dec20 1 Lecture

Network Topologies Dec21 1 PPT

Implementation of LANS – Transmission Media,

Wireless LAN (WLAN), Internet, Jan02-05 1 Article Review

World Wide Web (WWW), E-Mail, Intranet. Jan 05 1 GD

V(8)

MODULE V:

ANALYSIS AND DESIGN OF BIS: Software

Engineering, Systems Analysis, System Design, Jan07 1 Activity

Importance and Process of SAD Jan08 1 PPT

MID SEM EXAM Jan12-

Jan19

Systems Analysis and Design,

Jan21 1 PPT

Entity Relationship Diagram Jan 22 1 PPT

Systems Development life Cycle Jan 24 1 PPT

Design of SDLC by students and presentation Jan 25 1 Activity

Project Management. Jan 28 1 PPT

Leading edge award winning Mobility Solutions Jan 30 1 PPT

VI(5) MODULE VI:

BIS DEVELOPMENT & IMPLEMENTATION:

BIS Planning, Project Preparation.

Feb 1 1 PPT

Needs Analysis, BIS Design Feb 4 1 PPT

Selection, BIS Implementation Feb 5 1 Activity

BIS Design and Implementation Feb 8 1 Case Study

Management Challenges.

Feb 9 1

PPT

VII(5)

MODULE VII:

HUMAR RESOURCES INFORMATION

SYSTEMS: Types of personnel administration data

systems

Feb 11 1 PPT

Employee Profile system Feb13 1 PPT

Employment control reporting system. Feb 14 1 Videos

HRIS Model Feb 16 1 Videos

Payroll Accounting and HR Management Feb 18 1 Quiz

VIII(6) MODULE VIII:

FINANCIAL / OPERATIONS DATA SYSTEMS:

Payroll data system,

Feb 19 1 PPT

Accounts payable systems Feb 21 1 PPT

Accounts receivable system

Feb 22 1 Videos

Materials requirement planning (MRP)

Feb 25 1 PPT

Manufacturing Resource Planning (MRP II).

Feb 26 1 PPT

Activity Feb 28 1 Videos

IX(6)

MODULE IX:

DIFFERENT TYPES OF INFORMATIONS

SYSTEMS : Group decision support systems

(GDSS)

March1

1 CD

Executive information systems (EIS) March4 1 CD AND TESTS

Expert systems March5 1

Artificial intelligence, ERP, E-CRM March7 1

Transaction processing systems, Knowledge work

and office automation systems,

March8 1

Computer crimes and ethics, Information security

and control, Information out sourcing and Data

Resource Management.

March11-

12 1

Impact of IT on the Industry March13 1

Revision March15 1

Total Hours 59

CIA Details:

Details Date of issue of topic Date of submission

or presentation

Marks allotted

CIA I Mid sem exam 16th

Jan 2014 50

CIA II Written assignment on

Telecommunication Network and

presentations -10marks

Case Analysis-10marks

Article Review-10marks

8th

Dec 2013 30

CIA III Moodle-10marks

Surprise tests-10marks

Video making-10marks

Continuous

assessment

30

Attendance ----------------------- ---------------------- 5

BOOKS FOR REFERENCE:

1. Management information systems by James O‟Brien Golgotha publications.

2. Management Information Systems By Davis And Olson Published by TATA MC GRAW HILL

3. Management information systems by THOMAS THARAKAN SURABHI PUBLICATIONS

4. BIS by C.S.V. Murthy, Himalaya Publications

5. Management Information Systems by Nitin C. Kamat and Jyotindra Z, Himalaya Publications

Recommended Book for Text

1. BIS by C.S.V. Murthy, Himalaya Publications

Recommended Book for Cases

1. Management Information Systems by Nitin C. Kamat and Jyotindra Z, Himalaya Publications

DEPARTMENT OF MANAGEMENT STUDIES (MFM)

CHRIST UNIVERSITY

BANGALORE

COURSE PLAN

COURSE: 2 MFM Subject Teacher Dr leena James

Dept of Management Studies

Subject: Corporate Governance and Business Ethics Total Hours: 55

Objectives

To develop an understanding about the concept of Corporate Governance, Business Ethics and its System in India.

To develop an understanding about the changing, Corporate Governance and its legal framework.

Subject Requirements

1. Attendance Students are required to attend all lectures and participation in class discussions is an important requirement.

2. Assignments

. Written work should strive to meet the following requirements:

- use clear, concise expression;

- provide coverage of major points;

- use fluent and logical analysis, discussion, criticism or argument where appropriate (this is important because it

is an indicator a student‟s understanding of a subject);

- observe the word limit where applicable (the purpose of word limits is to force precision of thought and analysis

on the writer).

In presenting work, students must:

- acknowledge the sources of direct quotes in footnotes at the bottom of the page on which quotes are used;

- avoid using long quotations; a student‟s own accurate paraphrasing is preferable;

- acknowledge in footnotes specific ideas read from source material, even if a direct quote has not been used;

- use quotes wisely - to summarize a point of view, to back up a student‟s own opinions, or as a basis for

discussion;

- attach a bibliography at the end of your assignment.

3. Assignment on Terms Students are expected to submit assignment within the stipulated time.

If a student‟s work is seriously affected by illness or other cause, students are advised to intimate the facilitator and seek extra

time to complete task, failing which the assignments shall not be considered for evaluation. Where work is accepted after the

due date on any grounds the work will be assessed at a lower grade.

4. Research Assignment

Assignment or Research Paper: Five article reviews on the topic related to the course material from reputed referred journals

and make an abstract (summary) of 400 words each. The facilitator must approve the topic of the research paper.

Make write of the topic based on literature review and it should broadly cover organizations and its Corporate Governance

mechanisms. Study could be based on Sector, Kind of Organization, Indian, International etc.

Due date: The research assignment must be submitted as Continuous Internal Assessment II ( CIA II ) - latest submissions by

the First week of December 2010.

Module number

and Name

Contents Week & No.

of Hrs

Methodology

Module 1

Evolution of

Corporate

Governance in

India and Abroad

Concept of corporate Governance, Evolution-

Introduction-Need and Importance-Genesis-

abroad-OECD Principles of Corporate

Governance-Genesis in India-Development in

India.The Naresh Chandra Committee,The

Kumar Mangalam Birla.,The Narayana

Murthy Committee

Wk 1

4 hrs

Lecture & Discussion

Corporate Case discusions

Presentations on Corporate Governance of

Contemporary Organizations across

sectors

Wk 2

4 hrs

Seminar presentaions

Module 2

Provision

regarding

Corporate

Governance in the

Listing

Agreement:

Clause 49-Corpoorate Governance

Board of Directors -Audit Committee-

Subsidiary Companies-Disclosures-CEO and

CFO Certification-Report on Corporate

Governance-Compliance

Comparison between Old Clause 49 and New

Clause -Model Listing Agreement for Listing

of Debt Securities-Information to be placed

before Board of Directors

Suggested List of Items to Be Included In the

Report on Corporate Governance in the

Annual Report of Companies:

1.A brief statement on company‟s philosophy

Wk 3, 4, & 5

12 hrs

Lecture & Discussion

Analysis of real life business cases

on code of corporate governance.- 2.Board of

Directors- 3,.Audit Committee-

4.Remuneration Committee- 5.Shareholders

Committee- 6.General Body Meetings-7.

Disclosure-.Means of communication-

9.General Shareholder Information

Non-mandatory Requirements:

1.The Board-2.Remuneration Committee-

3.Shareholders Rights-4.Audit-Qualifications-

5.Training of Board Members -6.Mechanism

for evaluating non-executive Board Members-

7.Whistle Blower Policy

Report on Corporate-Governance-Compliance

Activity – Analysis and Debate on the

topics related to Module 2 – Group activity.

Wk 6

2 hrs

Debate and Moderation

Module 3 Board

Governance and

Independence:

Training and Professional Development of

Board Members-Succession Planning

Wk 7 & 8

8 hrs

Lecture & Discussion

Module 4 Board

Systems and

Procedures:

Good Boardroom Practice: A Code for

Directors and Company Secretaries Code of

Conduct for Board of Directors and Senior

Management

Guidelines for Companies.

Wipro –Code of Conduct -Tata Code of

Conduct- Infosys Technologies Code of

Corporate Governance-Whistle Blower Policy

Wk 9, 10 & 11

12 hrs

Lecture & Discussion

Analysis of real life business cases

Module 6

Disclosure

Requirements &

Reporting

Requirements

Disclosures as per the companies Act,1956

Disclosures may be made in respect of but not

limited to--Financial and operating results-

Company objectives-Ownership-Related party

transaction-Board-Remuneration of the

boards-Risk

12

4 hrs

Practical applications

Lecture & Discussion

Module 7

Business Ethics :

.

Business & Factors influencing Business -

Business Ethics-Approaches to Business

Ethics-Ethical standards and Business Ethics-

Conflicts between Business Demand and

Professional Ideals-Seven General Moral

principals for the managers. Suggestions to

improve organization‟s ethical climate

Wk 13 and 14

8 hrs

Lecture & Discussion

Analysis of real life business cases

Assessments:

1. CIA I – Mid Semester Examination – 25%

2. CIA II – Written Assignments – 05% - Five article reviews on the topic related to the course material from reputed

referred journals and make an abstract (summary) of 400 words each. The facilitator must approve the topic of the

research paper. Case study analysis is the second component of the CIA 11, and the cases shall be announced in class/

Due date: The research assignment must be submitted as Continuous Internal Assessment II ( CIA II ) - latest

submissions by the First week of December 2013.

3. CIA III – Presentations – 05% - Presentations on Corporate Governance of Contemporary Organizations across sectors

Second component of the Continuous internal assessment is a group assignment and activity and carries 05% weightage.

4. Attendance – 5%

5. End Examinations – 50%

Books Recommended:

1.Sanjeev Aggarwal –Corporate Governance: Concept and Dimensions

-Snow White Publications Pvt.Ltd-2003

2.Business Ethics: An Indian Perspective –A C Fernando3-Pearson Education,2009

3. Ferrell, O.C., Fraedrich, John, and Ferrell, Linda (2010). Business Ethics, Ethical Decision Making & Cases, 8th Edition.

Boston, MA: Prentice Hall. ISBN: 978-1-4390-4223-6

Reference Books

1. Dr leena James, Dr Antony Thomas (2013) Corporate Governance, Pratibha publications

2. Prof.SK Sarangi (2008).Value and Ethics of Profession and Business Ethics. Mumbai. V M P Publishers and Distributors

3. Weiss, Joseph (2008). Business Ethics – A stakeholder approach Issues Management. Cengage Learning

4. Crane and Matten (2008). Business Ethics.Oxford University Press.

5. Laura P. Hartman(2004).Perspectives in Business Ethics, McGraw-Hill International.

6. George A Steiner and John F. Steiner (2008). Business, Government and Society, McGraw- Hill International,.

7. Corporate Governance. New Delhi. ICSI-Publications

Course Plan

Even Semester – 2013-14

Subject : Management of Public Finance

Code : MFM 431

Class : MFM (IV Semester)

Name of the Faculty : Dr. Mahesh .E

Prof Ravikumar T

Hours/Week : 4

Credits : 4

Objective:

1) To give proper knowledge and clear understanding about the sources and application of Public finance and its

management by the Government, both at Central and State level.

2) To make the students appreciate the importance of budgeting procedure in Governmental finance.

Syllabus

Unit

Topic- Break up Hrs Date

(Tentative)

Teaching

Method

Assignment Remarks

Unit – 1

(10)

Topic:

Overview of public finance

Public finance –Meaning of

public finance, relation

between public finance,

03 05/11/2013

07/11/2013

08/11/2013

Lecture Method

and Discussion

Article

Review

Government and Economy, 03 09/11/2013

13/11/2013

15/11/2013

Lecture Method

and Discussion

Article

Review

Sources of Public Revenue-

Direct and indirect taxes,

02 16/11/2013

19/11/2013

Public borrowing,

Consolidated Fund of India

02 21/11/2013

22/11/2013

Unit – 2

(08)

Topic:

Financial Administration -

Finance Ministry, Fiscal

Policy- Union Budget –

02 23/11/2013

28/11/2013

Lecture Method

and Discussion

Article

Review

Principle and procedure, 02 29/11/2013

30/12/2013

Deficit Financing, Monitory

Policy,

02 03/12/2013

05/12/2013

Lecture Method

and Discussion

Fiscal policy and Economic

Development.

02 06/12/2013

07/12/2013

Article

Review

Unit – 3

(06)

Topic:

Public expenditure

Effects of Public expenditure

on production and

distribution.,

02 10/12/2013

12/12/2013

Lecture Method

and Discussion

Revenue expenditure and

Capital expenditure.

02 13/12/2013

14/12/2013

Development Finance-Rural

development schemes,

01 17/12/2013 Article

Review

SSI development schemes, Tax

exemptions

01 19/12/2013

Unit – 4

(04)

Topic:

Public debt and its

management. Classification of

public debt.

Methods of public debt,

02 20/12/2013

02/12/2013

Management of public debt

under inflation, depression etc.

02 03/01/2014

04/01/2014

Unit – 5

(04)

Topic:

Centre-State Financial

relations.

Finance Commission

Division of Resources between

Center and States.

02 07/01/2014

09/01/2014

Lecture Method

and Discussion

Article

Review

Criteria of distribution of

Resources among States

02 10/01/2014

11/01/2014

Unit – 6

(05)

Topic:

Central excise Act Liability

of central excise duty,

excisable goods,

02 21/01/2014

23/01/2014

Lecture Method

and Discussion

manufacturer and

manufacturing,

02 28/01/2014

30/01/2014

Article

Review

classification of goods,

valuation of goods, valuation

rules, CENVAT

01 31/01/2014

Unit – 7

(06)

Topic:

Customs Act-Introduction to

customs duty, type of customs

02 01/02/2014

04/02/2014

Lecture Method

and Discussion

Article

Review

duty,

meaning of basic concepts,

valuation for customs duty,

02 06/02/2014

07/02/2014

meaning of import and export,

baggage clearance, general

procedures in customs

02 08/02/2014

11/02/2014

Unit – 8

(08)

Topic:

Service Tax

Introduction, liability to pay

service,

04 13/02/2014

14/02/2014

15/02/2014

25/02/2014

Lecture Method

and Discussion

Article

Review

services covered under tax

system

04 04/03/2014

06/03/2014

07/03/2014

13/03/2014

Assessment and Evaluation

CIA I : Mid-semester Examination (09th

January to 18th

January 2014)

CIA II : Seminar Presentations/Article Review (The dates are to be mutually decided)

CIA III : Article Review/Seminar Presentation (The dates are to be mutually decided)

References

Bailey, Stephen J., Public Sector Economics, Macmillan, 1995.

Bird, R. M, Federal Finance in Comparative Perspective, Toronto, Canadian Tax Foundation

David A. Starrett, Foundations of Public Economics, Cambridge University Press, 1988

Donijo Robbins (ed.), Handbook of Public Sector Economics, Taylor & Francis, 2005

Danis C. Mueller, Public Choice, Cambridge University Press, 1979

Richard A. Musgrave and Peggy B., Musgrave Public Finance in Theory and Practice, Fifth Edition (1989) McGraw Hill.

International Editions. Financial Services

Kurien, C.T., The Economy: An Interpretative Introduction, Sage, 1992.

Halm, G.N., Economic Systems, Vakils, Feffer and Simons, 1971.

Harvey S. Rosen, Public Finance. Richard D. Irwin; 2002.

K.J.Arrow and Scitovsky (1980), Ed. Reading in Welfare Economics, Cambridge University Press.

Yew-Kwang Ng (1979), Welfare Economics, London Macmillan.

John Rawls (1971), A Theory of Justice, The Belknap Press of Harvard University Press.

R.Nozick (1974), Anarchy, State and Utopia, New York: Basic book Inc.

Jha, R (1998): Modern Public Economics. London and New York: Routledge.

Prest, AR (1975): Public Finance in Theory and Practice, V ed. London: Weidenfeld and Nicolson.

Ramsey, FP (1927): “A Contribution to the Theory of Taxation”, Economic Journal, March.

Stiglitz, JE (2000): Economics of the Public Sector, III Ed. London: W.W. Norton & Company.

Tresch, RW (2002): Public Finance: A Normative Theory. London: Academic Press. II Ed.

Kumar, A., 1999, The Black Economy in India, Penguin, New Delhi.

Andmo, Agnar, 1976, Optimal Taxation: An Introduction to the Literature, Journal of Public Economics, 6, pp. 37-54.

Diamond, P.A. and Mirrlees, J.A. Optimal Taxation and Public Production I-II, American Economic Review, 61, 8-27, 261-78.

Hillman, A L. (2003) Public Finance and Public Policy: Responsibilities and Limitations of Government, Cambridge University

Press, Cambridge, UK.

Rao, M. Govinda, and Tapas K. Sen, Fiscal Federalism in India, Macmillan, 1996

Oates, W. E, Fiscal Federalism, New York, Harcourt, Brace and Jovanovich

William F. Shughart II and Laura Razzolini (ed.), The Elgar Companion to Public Choice, Edward Elgar, 2001

CHRIST UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

BANGALORE

COURSE PLAN

STRATEGIC FINANCIAL MANAGEMENT – 4th

SEMESTER MFM

PRIMARY OBJECTIVE - To provide basic understanding of the theories of modern finance.

SECONDARY OBJECTIVE - To introduce the students to the tools and concepts needed to deal effectively with the

formulation, implementation and monitoring of strategic financial decisions of the firm.

UNIT I FINANCIAL MANAGEMENT – OVERVIEW

8 Hours

Evolution – goals – decisions – organization – relationship with other disciplines – emerging role of finance managers – Sources

of long term finance

UNIT II FINANCIAL DECISIONS

14 Hours

Time value of money – capital budgeting – cost of capital – leverages – capital structure theories – working capital management –

leverages – dividend policies

UNIT III CORPORATE VALUATION

14 Hours

Adjusted book value approach – stock and debt approach – direct comparison approach – discounted cash flow approach – DCF

Approach two and three stage models – Free cash flow to equity valuation

UNIT IV VALUE BASED MANAGEMENT

10 Hours

Marakon approach – Alcar approach – Mckinsey approach – EVA Approach – BCG Approach

UNIT V OTHER RELATED AREAS

14 Hours

Share buy backs – Takeover tactics – Corporate Governance - Balance Score card – Financial management of sick units –

Financial management in Intangible Intensive companies – Corporate Risk Management and Financial Engineering

Reference Books

I. Chandra, Prasanna, Financial Management – VIIth Edition, New Delhi Tata McGraw – Hill Publishing Company Ltd.,

II. Allen, An Introduction to Strategic Financial Management, Kogam Page.

III. Mathew P.K Corporate Restructuring an India, Perspective, Macmillan.

Books Recommended:

Strategic Financial Management – GP Jakhotiya / Vikas Publication

Examination &Grade: CIA 1(Mid Semester Examination)= 50 marks

CIA 2= 20 marks

CIA 3= 20 marks.

Attendance & Participation: 10 marks

Course Schedule:08/11/11 to 16/03/12 (16 weeks)

Note: The subject is a 60-hour paper comprising of 4-hour classes a week.

Detailed Course Plan

UNIT TOPICS Session/Dat

e HRS METHODOLOGY REFERENCE

1 Introductory class sharing

importance of the subject.

Course Plan – Overview

Session 1 1(10) Lecture, PPT.

Financial management –

Overview Evolution

Session 2 1 Lecture, PPT, Case

Study.

Financial

Management by

Prasanna Chandra

Goals – Decisions – Organisations Session 3

& 4

2

relationship with other disciplines –

emerging role of finance managers

Session

5,6 & 7

3

Sources of long term finance Session 8

& 9

2

CIA-II-Component 1 Session 10 1

2

Financial decisions – Time

Value of money

Session 11

& 12

2(15) Lecture, PPT, Case

Study, Practical

Problems.

Financial

Management by

Prasanna Chandra

Capital Budgeting Session 13

& 14

2

CIA-II-Component 2 Session 15 1

Cost of Capital Session 16

& 17

2 Lecture, PPT, Case

Study, Problems

Financial

Management by I.M

Pandey

Leverages Session 18

& 19

2

Capital Structure Theories Session 20

& 21

2

Working Capital Management Session 22

& 23

2

Dividend Policies Session 24

& 25

2

3

Corporate Valuation:

Adjusted Book Value Approach

Session 26

& 27

2(10) Lecture, PPT, Case

Study, Problems

Financial

Management by I.M

Pandey

Stock and debt approach – Direct

comparison approach

Session

28, 29 &

30

3

Discounted cash flow approach –

two and three stage models

Session

31,32 & 33

3

Free cash flow to equity valuation Session

34 & 35

2

4 VALUE BASED MANAGEMENT:

Marakon Approach

Session 36

& 37

2(10) Lecture, PPT, Case

Study, Problems

Financial

Management by I.M

Pandey

Alcar approach Session 38

& 39

2

Mckinsey approach Session 40

& 41

2

EVA approach Session 42

& 43

2

BCG approach Session 44

& 45

2

5 Other Related Areas:

Share buy backs

Session 46 1(15) Lecture, PPT, Case

Study,

Financial

Management by I.M

Pandey

CIA III Presentation Session 47

& 48

2

Takeover tactics Session 49

& 50

2

Corporate governance Session 51

& 52

2

Balance Score Card Session 53

& 54

2

Financial management of sick units Session 55 2

& 56

Financial management in intangible

intensive companies

Session 57

& 58

2

Corporate risk management and

Financial engineering

Session 59

& 60

2

Note: Dates to be provided as per the Time Table

CHRIST UNIVERISTY Department of Management Studies

MASTER IN FINANCIAL MANAGEMENT (MFM) IV - Semester (November 2013 to March 2014)

Hosur Road, Bangalore - 29 COURSE PLAN

Subject: International Finance Faculty Name: Dr. Sunita Panicker

Subject Code: MFM433 Email ID: sunita.panicker@christuniveristy.in

COURSE OBJECTIVES:

1. To know the players in the foreign market and the strengthening measures implemented due to liberalized policies.

2. To acquire knowledge on the functioning of global business and its financial implications.

3. To analyze the foreign exchange activities, hedging of foreign exchange exposures and other related aspects of risk

coverage will be taken into consideration in global business.

4. To explore sound theoretical knowledge of foreign exchange transactions with practical and procedural aspects of banks

and other institutions connected with foreign exchange.

INTERNATIONAL FINANCE LECTURE SCHEDULE

Unit: I International Financial Markets - 4 Hrs

Introduction, Motives for investing & borrowing in Foreign markets, International business methods, How

financial markets affect an MNC‟s value.

Unit: II Changing Global Financial Environment - 8 Hrs

Evolution of the International Monetary system, Bimetallism, Classical Gold standard, Interwar period, Bretton woods

system, Flexible Exchange rate regime. The current exchange rate agreements, European monetary system, Mexican peso crisis,

Fixed Versus Flexible Exchange Rate regime

Unit: III Balance of Payments - 6 Hrs

Concept of Balance of payments, Concept and Principles behind compilation of BoP account, Components of BoP

and factors affecting them, Importance and Limitations of BoP statistics, Relationship of BoP with other Economic Variables

Unit: IV Foreign Exchange Markets - 13 Hrs

The structure of the FOREX markets, Functions of Foreign exchange markets, The foreign exchange rates,

Arbitrage, The spot market, Cross rates of exchange, Bid-ask spreads, The forward market, The regulations, Derivatives, Foreign

currency futures, foreign currency options.

Unit: V Exchange Rate Determination - 12 Hrs

Interest rate parity, Purchasing power parity, The Fisher effects, Forecasting Exchange Rates – Efficient market

approach, Fundamental approach, Technical approach, Performance of forecasters

Unit: VI Euro Currency Markets - 11 Hrs

Introduction to Euro markets, Euro currency instruments, Determinants of Euro currency rates, Growth of Euro dollar

markets, International bond markets, External commercial borrowings, Euro debts, foreign currency convertible bonds,

Advantages of Euro bonds, Performance of Indian Euro issues

Unit: VII Managing Foreign Exchange Exposure - 8 Hrs

Management of foreign exchange risk, Management of translation Exposure, Management of transaction Exposure,

Management of Economic Exposure

INTERNATIONAL FINANCE SESSION PLAN

Module/ Hrs Topics Session Methodology

I - 4 Hrs

(05/11/13 to

13/11/13)

Introduction to Global Business Finance 1

Lectures,

Presentations,

Assignment

Motives for Investing & Borrowing in Foreign Markets

1

International Business Methods 1

Impact of Financial Markets on MNC‟s Value 1

II - 8 Hrs

(15/11/13 to

27/11/13)

Evolution of The IMF & Bimetallism 2

Lectures, Presentation

& Discussion, Case

Study

Classical Gold Standard, Interwar Period 2

Bretton Woods System 1

Flexible Exchange Rate Regime & Current Exchange Rate

Agreements

1

European Monetary System, Mexican Peso Crisis

1

Fixed Vs Flexible Exchange Rate Regime 1

III - 6 Hrs

(29/11/13 to

04/12/13)

Concept of Balance of Payments 1

Lectures, Presentation

& Case Study

Concept and Principles behind compilation of BoP

Account

1

Components of BoP & Factors Affecting BOP 2

Importance and Limitations of BoP Statistics 1

Relationship of BoP with other Economic Variables 1

IV - 13 Hrs

(06/12/13 to

(18/12/13)

Structure of the FOREX markets 1

Lectures,

Presentation,

Discussion, Case

Study & Article

Writing

Functions of Foreign Exchange Markets 1

FOREX Rates, Arbitrage & Spot Market 2

Cross Rates of Exchange 1

Bid-ask Spreads 1

Cross Rates of Exchange 1

Forward Market Regulation 1

Derivatives 2

Foreign Currency Futures 2

Foreign Currency Options 1

V - 12 Hrs

(20/12/13 to

08/01/14)

&

(16/01/2014 to

Interest Rate Parity 1

Lectures,

Presentation, Quizzes

Purchasing Power Parity 1

The Fisher Effects 1

Forecasting Exchange Rates 2

Efficient Market Approach 2

Fundamental Approach 2

Technical Approach 2

Performance of Forecasters 1

05/02/14)

VI - 11 Hrs

07/02/14 to

27/02/14)

Introduction to Euro Markets 1

Lectures,

Presentation,

Discussion,

Extempore

Euro Currency Instruments 1

Determinants of Euro Currency Rates 1

Growth of Euro Dollar Markets 2

International Bond Markets 1

External Commercial Borrowings 1

Euro Debts 1

Foreign Currency Convertible Bonds 1

Advantages of Euro Bonds 1

Performance of Indian Euro issues 1

VII - 8 Hrs

28/02/14 to

15/03/14)

Management of Foreign Exchange Risk 2

Lectures,

Presentation,

Discussion

Management of Translation Exposure 2

Management of Transaction Exposure 2

Management of Economic Exposure 2

TOTAL 62

ASSESSMENT AND EVALUATION

Details Particulars Submission Date

CIA-I Mid semester Exam for 50 marks 9th

January 2014

CIA - II Written Assignment Topics mentioned below 6th

December 2013

CIA III Presenting their CIA - II topic and Evaluation will be done through

Peer Group

10th

February 2014

Attendance As per Slab (Maximum)

CIA – II ASSIGNMENT TOPIC:

The students are advised to identify the global business financial activities for each and every country with the country

GDP, Inflation, Export, Import, Forex rates, Stock market development and their key macro economic variables for each and

every country throughout global level. Finally, students are requested to submit a comparative report of Global Business Finance

and its impact and usefulness towards the growth rate of the country.

CIA – III ASSIGNMENT TOPIC:

In CIA – III, students are advised to present their CIA - II topic and compared with their subject matter. As per the class

instructor advice, the students are formed into different groups and one person from each group should make micro presentation

about their research work for 20 minutes followed by question hour (will be notified in the classroom). The presentation will be

marked by your class students and the faculty.

GUIDE LINES FOR OTHER ASSIGNMENT SUBMISSIONS (ON LINE)

a) Please use the following specifications for your assignment layout:

Font: Times New Roman

Font Size 12

Spacing 1.5 spacing

Margins: Left, Right, Top and Bottom 1'"

Header to include MMA Assignment topic (contained within top margin)

Footer to include Student Name & Number: Page no's formatted to include total

b) Please include a cover-sheet setting out:

Your Name and Register number

Assignment due date

Word count

The title of the assignment.

c) Your assignment should be thoroughly checked for typing, spelling and grammatical errors.

d) You may consider having a colleague proof read your assignment before you submit it.

e) Make sure you acknowledge, all sources used to write your assignment eg., Journals, books, Articles etc.

f) Provide a list of references; at the end of your assignment.

g) Use a range of scholarly materials. e.g. Peer-reviewed articles from the scholarly databases, textbooks and material from the

Internet. Material from the Internet often, however, does not have the same peer review mechanisms in place so you must be

wary what you use as literature to support your reviews.

GENERAL ASSESSMENT CRITERIA

Assessment of the submitted work will be evaluated on understanding the concepts learned, research done and the

presentation. The written assignments must satisfy the following; they are

1. Understanding of the relevant topic.

2. Ability to apply the concept from the text appropriately to the question or topic of discussion.

3. Evidence of critical thinking, valid arguments, appropriate evidence, to articulate and defend a position on issues.

4. On time submission - Late submission would welcome a penalty of 10% per day for every day such work is overdue

including Weekends and Public Holidays.

5. Your opinion on an issue is not what matters but how you relate it to the appropriate portions of the text, supported with

other evidences (collected from library or other researches from authentic sources) is what fetches marks.

Recommended Books:

1. V. A. Avadhani on International Financial Management, Himalaya Publishing House. New Delhi.

2. Allan C. Shapiro on Multinational Financial Management, Prentice Hall, New Delhi.

3. Shashi K. Gupta, Nisha Aggrrwal and Neetu Gupta on Financial Institutions & Markets, Kalyani Publishers, New Delhi.

4. Madhu Vij on International Financial Management, Excel Book House, New Delhi.

5. Ian H. Giddy on Global Financial Markets, A.I.T.B.S Publishers & Distributors, New Delhi.

6. Prakash G. Apte on International Financial Management, McGraw-Hill Publication, New Delhi.

7. Francis Cherunilam on International Economics, McGraw -Hill Publication, New Delhi.

8. C. Jeevanandam on Foreign Exchange Practice, Concepts & Control, Sultan Chand Sons Company Limited, New Delhi.

Recommended Text:

1. V. A. Avadhani on International Financial Management, Himalaya Publishing House. New Delhi.

2. Allan C. Shapiro on Multinational Financial Management, Prentice Hall, New Delhi.

3. Shashi K. Gupta, Nisha Aggrrwal and Neetu Gupta on Financial Institutions & Markets, Kalyani Publishers, New Delhi.

4. Prakash G. Apte on International Financial Management, McGraw-Hill Publication, New Delhi.

CHRIST UNIVERSITY, BANGALORE - 29

DEPARTMENT OF MANAGEMENT STUDIES CLASS: MFM:434 (Revised)

SEMESTER: IV

COMMODITY MARKET AND DERIVATIVES Course Description:

This course aims to familiarize students with the Financial and commodity derivatives markets, valuation of instruments,

functioning, settlement systems, factors influencing the global and the domestic scenario, role in the economy and the risk

management aspects relating to trading. In addition, it intends to provide an understanding of the emerging areas of Risk

Management and to equip students with the tools and techniques needed to manage financial risk efficiently.

Course objective:

To familiarize students with the concept, operations, legal framework and procedures of financial and commodity

derivatives in India.

Course Text:

Financial Derivatives - Theory, concepts and Problems, By S L Gupta, PHI Learning Pvt ltd. Publication 9edition, Eastern

Economy Edition

Commodity Markets: operations, instruments (2011), by Chatnani N N, Tata Mcgraw Hill Publishing Company Limited

Unit

Topics

Expected

Date of

Completion

Hours Methodology Remarks

I Introduction to Derivatives Concept, Need for such market

Origin and History

7, 8TH

NOV

-2013

2 Presentation and

discussion

Types of derivatives

o Financial derivatives

o Commodity derivatives

9, 11 1 ARTICLE

REVIEW

Derivate Market Participants, Functions of

derivate market, Exchange traded funds v/s

OTC Traded funds

Reference: Course Text Page 4 - 15

14 1 -D0-

Types of instruments

o Future,

o Options

15, 16, 2 -D0-

Payoffs calculation 18 1 Problem solving

Using commodity derivative Markets -

o Hedging, 21,22 2 -D0-

o Speculation

o Arbitrage 23,25 2 Problem solving

II Futures and Options

Meaning - types of Futures – 27 1

Presentation and

discussion

index and stock futures - Forward contracts -

Limitations of forward markets - Distinction

between futures and forwards contracts -

28,29 2 -D0-

Options – Meaning – Types – European and

Americal Options 2-12-2013 1

ARTICLE

REVIEW

Put and Call Options - Option terminology 5 1 -D0-

Distinction between Futures and options.

Reference: Course Text Page 86 - 116 & 349-372 6, 7 2

Presentation and

discussion

III Application of Futures & Options –

Payoff for derivatives contracts (futures and

options)

9 1 Problem solving

Problems 12 1 -D0-

Difference between trading securities and

trading futures on individual securities - 13,14 2

Presentation and

discussion

Use of Futures (Only simple strategies of

hedging, speculation and arbitrage) Index

futures - Stock futures

19 1 -D0-

Use of Options (Only simple strategies of

hedging, speculation and arbitrage)

Reference: Course Text Page 86 - 116 & 349-372

19 1 Case study/article

review

IV Commodity Derivatives

Conceptual discuss - How they differ from

financial derivatives

20 1 -D0-

Warehousing, Quality of underlying assets

21 1 Case study/article

review

Global commodities exchanges

Commodities exchanges in India

(regional & national)

23 1 -D0-

Commodities permitted for trading 2-1-2014 1 -D0-

Kabra Committee Report (Roadmap) 4,6 2 -D0-

Commodity - specific issues - Cropping and

growth patterns – 9 1 -D0-

Global and domestic demand- supply –

dynamics - Price trends and factors that

influence prices

10 1 -D0-

V

Pricing commodity derivatives

Investment assets versus Consumption assets –

The cost of carry model - Pricing futures

contracts on investment commodities

11,13 2 -D0-

Pricing futures contracts on consumption –

commodities 21 1 Problem solving

The futures basis - Option valuation models- 22 1 Problem solving

Black Scholes, Binomial theorem

23,24 2 Presentation and

discussion

Problems 25 1 Problem solving

Problems 30 1 -D0-

Problems 1-2-2014 1 -D0-

Problems 3 1 -D0-

CIA Assessment - Presentations 6,7,8 3

CIA Assessment- Presentations

Reference: Course Text Page 86 - 116 & 349-372 10 1

VI The NCDEX platform - -D0-

About NCDEX, Exchange membership -

Rules, regulations, byelaws - Commodities to

be traded on the NCDEX platform -

13 1 -D0-

Types of commodities - Bullion (silver &

gold) - 14 1 -D0-

Agricultural commodities Trading on the

NCDEX platform - 15 1 -D0-

Contract specifications - Trading system - 17 1 -D0-

Entities in the trading system 20, 21 2 -D0-

Trader – workstation

Order types and conditions - Exposure limits

Web reference:ncdex.com/products

22 1 -D0-

VII Clearing, Settlement and Risk Management 24 1 -D0-

Calendar and settlement schedule, Position

determination, Settlement mechanism 27 1 -D0-

Daily Mark to Market Settlement, Settlement

price, Daily settlement price, Final - settlement

price – Margining - Initial margin

28 2 -D0-

Daily Mark to Market margin 1-3-2014 1 -D0-

Open - interest limits - Second Line of

Defence - NSCCL SPAN@ - Final settlement

- Cash settlement

3 1 -D0-

Physical settlement (Warehousing) - Exception

Handling - Funds Shortages - Delivery

Shortages

Web reference:ncdex.com/products

6 1 -D0-

VIII Regulatory Framework

7 Presentation and

Discussion

Rules governing Commodity Derivatives

Exchanges 8 1 -D0-

Rules governing Intermediaries 8 -D0-

Investor Grievances, 8 -D0-

Arbitration Rules 10 1 -D0-

Accounting and Taxation issues 13 1 -D0-

Revision 14 1 -D0-

Revision

Web reference:ncdex.com/products 17 1 -D0-

TOTAL

61

CIA DETAILS:

DETAILS MARKS ALLOTTED

CIA-I Mid semester Exam for 50 marks 50

CIA II Written assignment (Two Components in moodle) 20

CIA III Other than written assignment 20

Attendance As per slab (Maximum) 5

CIA-II DETAILS

TOPIC DATE OF SUBMISSION MARKS

Written assignment

Topics mentioned below 26 – 11- 2013 20

CIA – II TOPICS

1. You are required to select any two commodity future contract traded on NCDEX or MCX and submit a online report on

contract specification and price volitity for 10 trading sessions. (10 marks)

2. You are required to observe any two Stocks or index futures contract traded in NSE for 10 trading sessions and write a

detailed analytical report on Daywise returns, open interest changes and factors influencing the contracts (10 marks)

CIA-III DETAILS:

CIA – III

It consist of the following

4. Online discussion 10 Marks

5. Online quiz 10 marks

GENERAL ASSESSMENT CRITERIA

Assessment of the submitted work will be evaluated on understanding of the concepts learned, research done and the presentation.

The written assignments must satisfy the following:

1. Understanding of the relevant topic.

2. Ability to apply the concept from the text appropriately to the question or topic of discussion.

3. Evidence of critical thinking, valid arguments, appropriate evidence, to articulate and defend a position on issues.

4. On time submission - Late submission would welcome a penalty of 10% per day for every day such work is overdue

including Weekends and Public Holidays.

5. Your opinion on an issue is not what matters but how you relate it to the appropriate portions of the text, supported with other

evidences (collected from library or other researches from authentic sources) is what fetches marks.

Plagiarism and Unethical Practices

Plagiarism is using the work of others (ideas & words) without acknowledging your source of information or inspiration.

This includes:

5. Using words more or less exactly as used in articles, lectures, TV, books or anywhere else

6. Using other peoples ideas or theories

7. Paraphrasing what you read or hear

8. Plagiarism is a Serious ACADEMIC OFFENSE and the plagiarized work is usually disqualified.

Plagiarism will include any or all of the following:

i. Submitting a paper someone else has written as your own work.

ii. Using another author's phrasing with occasional slight modification but without quotation marks to indicate the

unchanged phrasing, even though you have referenced that book as the main source of the idea.

iii. Occasionally using someone else's phrasing without quotation marks, in a paper which is mainly original

iv. Using someone else's organizational terms without acknowledgment, except for generic terms like "quality" or

"reframing" [there is a fine line with this].

v. Using someone else's illustrations and examples as if they were your own.

vi. Presenting someone else's opinions as if they were your own, or borrowing specific facts from another author

without acknowledging the source.

vii. Using experimental results obtained by another person as if they were your own.

viii. Using another author's charts and graphs.

ix. Half crediting of a source

x. Hiding the dependency on a source by translating its academic terms into more credible language and including it in

your work.

xi. You have to give credit to the source even if it is an idea, word, Phrase, analysis, example, illustration, interpretation

or a paraphrase. The bottom line is if it is not your own it has to be referenced.

BOOKS FOR REFERENCE:

1. Options, Futures And Other Derivatives by Hull, John C.; Prentice Hall EDITION: VI

2. Futures And Options Bse Book's Publication

3. Futures & Options - Introduction to Equity Derivatives R. Mahajan Visionbooks

4. Fisher & Jordan, “Investment Management.”

5. Avadhani, Security Analysis and Portfolio Management. VII edition

CHRIST UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

Master of Financial Management (MFM)

Semester IV

Subject: Corporate Restructuring Contact Sessions – 60 Hours

Facilitator:

Dr. Jyothi Kumar

Associate Professor & Coordinator

Department of Management Studies

Contact ID: jyothi.s@christuniversity.in

Course Description:

The course intends to facilitate understanding of corporate restructuring, and its implications in regard to the corporate

governance in the respective context. This includes exploring the theory and evidence regarding these topics; the motives for

transactions, the sources of value added, details of mergers, acquisitions, takeovers, demergers and managerial incentives to

engage in or resist these activities. It also provides an in depth understanding of all aspects of corporate restructuring.

Course Objective:

1. To assimilate the concepts of Corporate restructuring, as it is the fundamental change in a company's business or financial

structure with the motive of increasing the company's value to shareholders, creditors and to the public at large.

2. The objective is also to examine the phases of Financial restructuring and operational restructuring. While financial

restructuring relates to changes in the capital structure of the firm, operational restructuring relates to changes in the business

model of a firm, with the aim of increasing overall shareholder value.

Assessment Criteria

Assessment of the submitted work will be evaluated on understanding of the concepts learned, research done and the presentation.

The written assignments must satisfy the following:

1. Understanding of the relevant topic.

2. Ability to apply the concept from the text appropriately to the question or topic of discussion.

3. Evidence of critical thinking, valid arguments, appropriate evidence, to articulate and defend a position on issues.

4. On time submission - Late submission would welcome a penalty of 10% per day for every day such work is overdue including

Weekends and Public Holidays.

5. Your opinion on an issue is not what matters but how you relate it to the appropriate portions of the text, supported with other

evidences (collected from library or other researches from authentic sources) is what fetches marks.

Plagiarism and Unethical Practices

Plagiarism is using the work of others (ideas & words) without acknowledging your source of information or inspiration.

This includes:

9. Using words more or less exactly as used in articles, lectures, TV, books or anywhere else

10. Using other peoples ideas or theories

11. Paraphrasing what you read or hear

12. Plagiarism is a Serious ACADEMIC OFFENSE and the plagiarized work is usually disqualified.

Plagiarism will include any or all of the following:

xii. Submitting a paper someone else has written as your own work.

xiii. Using another author's phrasing with occasional slight modification but without quotation marks to indicate the

unchanged phrasing, even though you have referenced that book as the main source of the idea.

xiv. Occasionally using someone else's phrasing without quotation marks, in a paper which is mainly original

xv. Using someone else's organizational terms without acknowledgment, except for generic terms like "quality" or

"reframing" [there is a fine line with this].

xvi. Using someone else's illustrations and examples as if they were your own.

xvii. Presenting someone else's opinions as if they were your own, or borrowing specific facts from another author

without acknowledging the source.

xviii. Using experimental results obtained by another person as if they were your own.

xix. Using another author's charts and graphs.

xx. Half crediting of a source

xxi. Hiding the dependency on a source by translating its academic terms into more credible language and including it in

your work.

xxii. You have to give credit to the source even if it is an idea, word, Phrase, analysis, example, illustration, interpretation

or a paraphrase. The bottom line is if it is not your own it has to be referenced.

BOOKS FOR REFERENCE:

1. L.M. Sharma, Amalgamation, Mergers, Takeovers, Acquisitions-Principles, Practices & regulatory Framework, Company Law Journal, New Delhi

2. J.C.Verma, Corporate mergers, Amalgamations and Takeovers;Bharat Publishing house, New Delhi 3. Fred Weston, Kwang S Chung, Susan E Hoag – Mergers, Restructuring And Corporate Control – Pearson Education, IV/e 4. Merger Acquisitions & Corporate Restructuring – Chandrashekar Krishna Murthy & Vishwanath. S.R – Sage Publication.

RECOMMENDED BOOK

1. L.M. Sharma, Amalgamation, Mergers, Takeovers, Acquisitions-Principles, Practices & regulatory Framework, Company

Law Journal, New Delhi

Course plan

Unit

Topics Hours Methodology Remarks

I

Introduction to Corporate restructuring

Case Study: Corporate Restructuring

Dynamics, A Case Analysis

Case Study: Corporate Financial

Restructuring,

An Analysis of Select Cases

2

2

Analysis and

Discussion,

Conceptual

intelligibility

Meaning of corporate restructuring,

need

Scope and modes of restructuring,

1 Discussion

Historical background, global scenario,

national scenario. 1 Discussion

Strategies-Planning, formulation and

execution of various corporate

restructuring strategies

1 Discussion

Mergers,Acquisitions, takeovers,

disinvestments and Strategic alliance 2 Discussion

Demergers and hiving off.

Case Study : Kingfisher Airlines Saga

1 Discussion

II

Mergers

Case Study: M&As in the Indian

Banking Sector - Strategic and Financial

Implications

Merger Process Dynamics of M&A

process- identification of targets,

negotiation-closing the deal.

1 Presentation and

discussion

Five-stage model – due diligence (detailed

discussion). 2

Discussion

Process of merger integration

1

Discussion

Organizational and human aspects 1 Discussion

Managerial challenges of M&A

2 Presentation and

discussion

III

TAKEOVERS

Case Study :

ICICI Bank Ltd. Acquires Bank of

Madura

Oriental Bank of Commerce Acquires

Global Trust Bank Ltd (August '04)

1 Case study/article

review

Take over defenses – financial

1 Discussion

Defensive measures – Coercive offers and

defense – 2

Presentation and

discussion

Anti-takeover amendments – poison pill

defense 1 Discussion

IV Funding of Mergers and Takeovers

Financial alternatives; merits and demerits;

1 Discussion

Funding through various types of financial

instruments including equity and

preference shares,

1

Presentation and

discussion

Options and securities with differential

rights,

1

Presentation and

discussion

Swaps, stock options; 1

Presentation and

discussion

ECBs, funding through financial

institutions and banks;

2

Presentation and

discussion

Rehabilitation finance; 1

Presentation and

discussion

Management buyouts/ leveraged buyouts.

1 Discussion

V

Valuation of Shares and Business

Introduction

2 Discussion

Need and purpose of valuation; 2 Discussion

Factors influencing valuation; 2 Discussion

Methods of valuation of shares;

2 Presentation and

discussion

Corporate and business valuation.(only

theory) 2 Discussion

VI Corporate Demergers and Reverse

Mergers

Case Study : Dabur India

Concept of demerger; Modes of demerger -

by agreement, Under scheme of

arrangement; demerger and voluntary

winding up; legal and procedural aspects;

2 Case Analysis

Tax aspects and reliefs; reverse mergers -

procedural aspects and tax implications. - Discussion

Post Merger Re-organisation-Factors in

post merger reorganization integration of

businesses and operations, financial

accounting, taxation,

1 Discussion

Post merger valuation, human and cultural

aspects; assessing accomplishment i of post

merger objectives; measuring post merger

efficiency.

1 Discussion

VII Financial Restructuring

Reduction of capital;

1 Discussion

Re-organisation of share capital

1

Discussion

Buy-back of shares - concept

2

Discussion

Necessity; procedure for buy-back of

shares by listed and

unlisted companies.

1

Discussion

Sick companies and their revival with

special reference to the law and procedure

relating to sick companies.

1

Discussion

Sick companies and their revival with

special reference to the law 1

Discussion

Procedure relating to sick companies. 1 Discussion

Cases – Public Sector Undertaking 1 Case Analysis

VIII

Winding up

Presentation and

discussion

Concept; modes of winding up;

administrative machinery for winding up.

1

Presentation and

discussion

Winding up process and procedure;

managing stakeholders and Parties in

liquidation;

2

Presentation and

discussion

Conducting meetings of shareholders

editors etc.; dealing with contracts; 1

Presentation and

discussion

Managing estate touring responsibilities to

professionals/service providers such as

valuers, security agencies, etc;

1

Presentation and

discussion

Best practices in performing liabilities;

Role of liquidators and insolvency

practitioners.

1

Presentation and

discussion

Consequences of winding up; winding up

of unregistered companies; dissolution.

Cross Border Insolvency.

1

Presentation and

discussion

TOTAL 60

Sample session plan – Session 1

Introduction to Corporate Restructuring

DEFINITION

a. Corporate restructuring can be defined as any change in the business capacity or portfolio that is carried out by an inorganic

route or

b. Any change in the capital structure of a company that is not a part of its ordinary course of business or

c. Any change in the ownership of or control over the management of the company or a combination thereof.

1 Any change in the business capacity or portfolio carried out by inorganic route.

Tata Motors launched Sumo and later, Indica-leading to an expansion of its

business portfolio. However, these products were launched from Tata Motor‟s

own manufacturing capacity in through an organic route. Hence, it would not

qualify as „corporate restructuring‟

Tata Motors acquisition of Jaguar Land Rover from Ford, through Jaguar Land

Rover Limited is „corporate restructuring‟

Grasim‟s acquisition of Larsen & Toubro‟s (L&T) cement division through

UltraTech Cement Limited is an example of „corporate restructuring‟

2 Change in the business portfolio could also be in the nature of reduction of business handled by a company.

In the case of Grasim and L&T, the demerger of L&T‟s cement business into UltraTech

Cement Limited was reduction of its business portfolio and thus, amounted to „corporate restructuring‟ of L&T.

Any change in the capital structure of a company that is not in the ordinary course of its business.

(a) Car finance loan

(b) Scheduled repayment of a term loan, etc. keeps on changing the debt-equity ratio within planned or targeted range. Such

changes do not qualify as Corporate Restructuring.

(a) An initial public issue

(b) Follow-on public issue

(c) buy-back of equity shares may alter the capital structure of a Company permanently. Such activities are not in the ordinary

course of business of a company- amounts to corporate restructuring

(a) Borrowing of a significant amount as term loan

(b) Issue of five year nonconvertible debentures, etc. Such changes may alter the debt-equity ratio significantly but still these do

not qualify as leading to corporate restructuring.

Capital structure refers to the debt equity ratio, i.e., the proportion of debt and equity in the total capital of a company.

This capital structure is never static and changes almost daily. If the debt/equity ratio fluctuates within a targeted or planned range, such changes in the capital structure do not amount to

„capital restructuring‟.

Borrowing of a significant amount of term loan or an issue of five year non-convertible debenture does not qualify to be called

„corporate restructuring‟.

An initial public issue, or a follow-on public issue or buy-back of equity shares would permanently alter the capital structure of a

company and thus, would amount to „corporate restructuring‟

Any change in the ownership of a company or control over its management

a) Merger of two or more companies belonging to different promoters

b) Demerger of a company into two or more with control of the resulting company passing on to other promoters

c) Acquisition of a company

d) Sell-off of a company or its substantial assets

e) Delisting of a company

All these would qualify to be called exercises in „corporate restructuring‟.

The activities or changes which are not termed‘corporate restructuring’

(a) Initial creation of a company

- a limited company

- a proprietary concern and a company

- a partnership firm and company

- a private company and a public company

Its various examples are:

1. Incorporation of a limited company

2. Conversion of a proprietary concern into a company

3. Conversion of a partnership firm into a company

4. Conversion of a private company into a public company

(b) Change in the internal command structure or hierarchy: The command structure of an organization or its hierarchy

simply means the reporting relationships among the employees, managers, top management and their various functions.

Functional organization

Divisional organization

Matrix organization

With businesses having become more complex along with the acceptance of newer concepts of organization building such as

tutorship, mentorship, etc., the hierarchies have stopped strictly falling into one of the three types mentioned above.

Any migration of an organization from functional to divisional or to matrix type or to any new or hybrid type or vice-versa would

not be a case of „corporate restructuring‟.

(c) Change in the business process

Re-engineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvement in critical,

contemporary measures of performance such as, cost, quality, service and speed.

Thus, It refers to the radical redesigning of business processes and not to the ownership and control or to the capital structure of

the organization.

(d) Downsizing

It is another form of organizational change in which the business organization substantially cuts down on its manpower, recurring

cost and/or capital expenditure, either as an objective itself or as a result of re-engineering.

(d) Other Activities: Since there is no standard definition of corporate restructuring, activities such as outsourcing, enterprise

resource planning, total quality management, licensing, etc., have not been termed as corporate restructuring activities.

IV. MAIN FORMS OF CORPORATE RESTRUCTURING

Major Forms of Corporate Restructuring:

Merger

Consolidation

Acquisition

Divestiture

Demerger (spin-off/split-up/split-off)

Carve-Out

Joint Venture

Reduction of Capital

Buy-back of Securities

Delisting of Securities/Company

Continuous internal assessment:

CIA 1 – 20 marks

Topic Type of Assignment Marks Submission

Write in detail about any 5

major mergers /

Acquisitions of 2012-13

Individual 10 10 days from the date of

announcement of the CIA

Financial Implications of

corporate Restructuring -

Cases from any 10

Corporate Restructuring

Group 10 10 days from the date of

announcement of the CIA

CIA 3 – 20 marks

Topic Type of Assignment Marks Submission

Presentations *

Group 10 Continuous

Class Quiz/Moodle

test/Open book Test

Individual 10 On the spot

*Presentation topics

Group Nos. Topics

1 Mergers

2 Consolidation

3 Acquisition

4 Divestiture

5 Demerger (spin-off/split-up/split-off)

6 Carve-Out

7 Joint Venture

8 Reduction of Capital

9 Buy-back of Securities

10 Delisting of Securities/Company

COURSE PLAN

2011-12

CHRIST UNIVERSITY, BANGALORE

DEPARTMENT OF MANAGEMENT STUDIES

CLASS: MFM

Subject Teacher:

SUBJECT: Insurance Management-MFM 436 Prof. Nijumon K John

SEMESTER: IV Semester Hrs/Week:

4 Hrs

Objective:

To provide an exposure and understanding of the mechanism of Insurance Industry and equip the students, with the knowledge

of important tools and , techniques , rules & regulations related to Insurance Business in India and to contribute effectively

industry in particular and to the society in general.

UNIT TOPICS DATE Hrs. METHODOLOGY REMARKS

1(3) Module.1: Introduction

a) What is insurance. Purpose and

need of insurance. How

insurance works. The business

of insurance – pooling of rises &

resources. Insurance as a social

security tool. Role of insurance

in economic development.

b) Fundamentals / principles of

general insurance contract of

insurance, condition necessary

for a contract, contractual duty.

Contribution under policy

conditions.

05/11/2013

To

15/11/2013

1 Lecture Method, Q&A

sessions & Case Analysis.

PPT by students

1 a) Insurance documents proposal

forms, policy forms, cover notes.

Certificate of insurance,

endorsements, renewal notice.

other insurance documents

b) Theory and practice of rating

basis of rate making, tariffs,

market agreements, role of the

T.A.C.

1

1 a) Legislative and regulatory

matters Insurance Act,

IIXIIIVIII. The Insurance

(Amendment)

b) Act, II00II. General Insurance

Business (Nationalisation)

Amendment Act, II00II.I.R.D.A.

Regulations, II00II.

1(3)

2(8) Module .2 LIFE INSURANCE

Regulations relating to Life Insurance 17/11/2013

To

30/11/2013

2

Lecture Method,Q&A

sessions PPT & Case

Analysis. PPT by students

2 General principles of life insurance

contract 2

2 proposals and policy 1

2 assignment and nomination; title and

claims

1

2 concept of trusts in life policy 1

2 Life Insurance Corporation - role and

functions. 1

3(14) Module 3: GENERAL INSURANCE-I 01/12/2013 2 Lecture Method,Q&A

Fire Insurance

To

17/12/2013

Case Analysis. PPT by

students

3 The Standard Fire & Special Perils

Policy. Terrorism Cover. Tariff System.

Special Policies.

1

3 Marine Insurance Marine Policies

,Duration of cover & Claims 2

3 Motor Insurance 2

3 Motor Vehicles Act, IIXVIIIVIII ,

Personal Accident Cover for Owner-

Driver , theft Claims

1

3 Personal Accident insurance Types of

Disablement , Claims & Extended

coverage

1

3 Health Insurance Mediclaim Policy

(Individual), Domiciliary Hospitalisation

Benefit , Bhavishya Arogya Policy

2

3 Liability Insurance Compulsory public

liability Policy, Products liability Policy,

Employer Liability Policy

2

3 Engineering Insurance Contractors All

Risks (C.A.R.)Policy, Marine-Cum-

Erection (MCE) Policy, Machinery loss

of Profits (MLOP) Policy , Advance Loss

of Profits & Electronic Equipment Policy

1(14)

4 (10) Module 4: GENERAL INSURANCE-II

Miscellaneous Insurance Burglary

Insurance , Baggage Insurance , Fidelity

Insurance , Television Insurance

Householders Insurance , Shopkeepers

Insurance, Banker‟s Insurance Policies ,

Jeweller‟s Block Policies , Sport

Insurance , Special contingency Policy

19/12/2013

To

15/01/2014

3 Lecture Method,Q&A &

Case Analysis. PPT by

students

4 Claims Legal Aspects ,Surveyors and

Loss Assessors , Claims documents ,&

Loss Minimisation

2

4 Rural Insurance Rural policies , The Role

of government , Cattle insurance &

Poultry Insurance

1

4 Inland Fish Insurance Schemes

Agricultural Pump Set Policy & Hut

Insurance

1

4 Obligations of Insurers to the social

sector Definition of Social Sector &

Nature and levels of indemnity

2

4 Penalties :Punishment for false

statement, 1(10)

MID SEM EXAM

5(10) Module 5: RISK MANAGEMENT

17/01/2014

To

Lecture Method, & Q&A

Case Analysis. PPT by

20/02/2014 students

5 Risk management is a new managerial

discipline which has become a part of

business management in many corporate

firms. Risk identification , Risk

evaluation , Risk Avoidance &

Implementation

10

6(6) Module 6:

Insurance surveyor ship Appointment,

legal provisions and licensing, functions.

21/02/2014

Till last

working day

6 Lecture Method, & Case

Analysis.

PPT by students

Total Hours 51

CIA-II DETAILS:

Particulars Date of submission Marks

Written assignment

1.

10/01/2014 20

CIA II Details: Answers must be neatly hand written and to be submitted on time .

I. Case Analysis Exercise will be assigned to the students on Insurance

II. Assignments to test the aptitude and interest & to give an industry exposure of risk management

CIA III Details:

1.Moodle test

2. Individual (topic wise) Presentation by students.

3. Case Analysis

Books

1) G S Panda-Principle and Practice of Insurance Kalyani Publishers. Gupta-Insurance

and Risk Management-Gupta P K

2) Insurance Law-Bharat Law House

3) IRDA website

Books Recommended G S Panda-Principle and Practice of Insurance Kalyani Publishers