Académique Documents
Professionnel Documents
Culture Documents
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Commercial Paper, Certificate of Deposits, T-Bills, Transactions in Repose & Reverse Repose. Commercial Bills etc., Management of short-term funds such as money Market Mutual Funds, Managing Receivables that is, Factoring or Bills Discounting) Asset Related Credits such as Leasing, Hire-Purchase, Stock Financing & Venture Financing: Risk- based such as Letters of Credit, Guarantees and Bills Receivables, Mortgages & Housing Finance. Financial Engineering and Advisory services - Concepts - Procedures/Formalities and Regulatory and Legal framework governing the functioning of Money Markets. Reform of the Financial System - Financial Services - Challenges Ahead. B Management of Financial Services 1. Banking Finance. 3. Consumer Finance 5. Securitisation 7. Swaps 9. Factoring 11. Electronic Banking 2. 4. 6. 8. 10. Venture Capital Disinvestment Leasing or Lease Finance Derivatives International Finance (Foreign-Exchange)
PRINCIPLES OF MANAGEMENT
Module 1.2.
1. Nature of Management : Definition of Management. Nature of Management. Management as a Science, as an Art. as a Profession- Professionalisation of Management, Traditional Management Vs. Professional Management, Level of Management. Development of Management Thought. Taylors Scientific Management, Contribution of Henri Fayol, Contribution of Peter Druker, Contribution of behavioural scientists and Indian Management thoughts. Management Process: Functions of Management, coordination, Planning, Organising, Controlling, Directing, Decision Making. Motivating and Leadership. Planning & Decision Making: Definition and importance of Planning, steps in Planning, Corporate Planning. Strategic Planning. Limitations of Planning. Forecasting Concepts and technique of forecasting, planning premises. Organising : Organisation Structure, Process of organising, Basic structures and operating Mechanism, Features of a good Organisation structure, Organisation Chart-Organisation ManualDepartmentalisation. Authority and Responsibility, Management of change - Delegation. Types of organisation. Controlling : Steps In Controlling, Essentials of effective controlling. Importance of controlling control techniques. Budgetary control. Break even analysis. Pert-CPM-Management audit. Human resource audit, social audit. Motivation : Theories of Motivation. Maslows need hirarchy. Hezbergs motivation. Hygiene theory McGregors theory -X and rooms expectancy theory and theory-Y Leadership: Definition. Importance. Leadership styles. Effective leadership, Quality of good leader & Mentor. 97
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Staffing : Recruitment and Selection, sources of man-power, selection process. Training and Development
Visits : Atleast a day visit to a leading Bank or Financial Institution and one visit to a Insurance Company.
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COMMUNICATIVE FUNCTIONS : Enquiry order, persuasion, complaints, claims, adjustments, (practice may be given to the students in using specimen documents e.g. circulars from SEBI, RBI bulletins, Govt. notifications rules, amendments, advertisements, sales letters etc. and other relevant material may be used to explicate the above mentioned functions) BARRIERS TO COMMUNICATION : Types of barriers - Physical and mechanical. Psychological linguistic and socio-cultural How to overcome barriers WRITTEN COMMUNICATION : Principles of letter writing. Layout/Format of business letters Application, appointment, confirmation, promotion, demotion, termination. Bio-data. Testimonials. ORALCOMMUNICATION : Speeches on different occasion e.g. Inauguration, welcome. Introduction, felicitation vote of thanks Group Communication (Inter action) Group discussions, committees, conferences. Symposium, Seminars, panel discussions teleconferencing.(Practices may be arranged for the students for the above topics)
5. 6. 7.
ECONOMICS : PAPER - I
MICRO ECONOMICS Module 1.4
1. INTRODUCTION: Scarcity, choice and. efficiency (with reference to PPC) - Basic tools of economic analysis: equations, functions, identities, slope, time - series, cross-section analysis, scatter diagrams, derivatives and limits. DEMAND AND SUPPLY: Determination of equilibrium price in an open market system. Elasticity of demand - Price, Income. Cross. Promotional elasticity of demand- its measurement and its application in business decisions. Demand forecasting Survey and statistical methods. PRODUCTION FUNCTION: Production function-Laws explaining production function in the short and the long run- Internal and external economies. COST AND REVENUE ANALYSIS: Cost concepts behaviour of costs in the short-run and longrun. Revenue concepts-Break-even analysis MARKET STRUCTURE: Features of perfect competitions and monopoly-concepts of price discrimination-equilibrium under dumping. Features of Monopolistic competition. Oligopoly- Price indeterminateness - Cartel formation. Different forms of price leadership. PRICING PRACTICES: Marginal cost-pricing-Cost, plus pricing -Transfer pricing -Case studies of Pricing practices.
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b) c)
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Arithmetic mean, Geometric, Harmonic mean and its usages, mode and medium (using graph also) for both grouped as well ungrouped data. Measures of Dispersions: Concept and idea of dispersion. Various measures Range, Quartile Deviation. Mean Deviation, Standard Deviation and corresponding relative measures of Dispersion, Geographical representation and utility of various measures of Dispersions. Co-variance, Co-relation arid Regression: Meaning, Definition and Implication of covariance. Concept of correlation. Rank Correlation. Regression concept. Relationship with Correlation, Assumptions in Simple Regression. Estimation using Simple Regression: Fitting of a straight line, Method of least squares, construction of characteristics line/estimation line (y = a+ bx), Slope of the regression line and its interpretation (theoretical and graphical). Multiple Regression : Regression with two independent variables. Y =a+b1 x1+b2+x2, standard error of the Estimate. Co-efficient of Multiple Correlation and Partial Correlation. Probability: Probability Distribution and Decision Theory, Concept of Probability yenn diagrams. Rules of Probability (addition and multiplication) Conditional and Unconditional Probability (dependent and independent events), Bayes theorem. Discrete and Continuous Variable. Expected value of the variable. Decision theory, Normal distribution. Mathematical Topics a. Percentage Brokerage b. Linear equation Solutions (for 2 variables) c. Graphs, d. Concept of slope, area under the curve optimization. e. Extrapolation, Interpolation (Meaning & uses. Graphical & linear method. Interpolation in financial analysis)
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Database Management Systems : The file based approach and the database approach to data management. Differences between them. The advantages of the database approach. Data entities, attributes and relationships. Data dictionary and the DBMS. Database model: hierarchic. network and relational DBMS. Tables and relationships between tables. Data records and fields: primary key, composite key, candidate key, candidate key and foreign key: Facilities available in a DBMS ODBC and OLEDB connectivity. Object relational and object oriented databases Networks : Their uses. LAN. MAN. WAN. Peer to peer. client server, 3-tier n-tier networks. Network topologies. Network media; UTP. STP, coaxial, fiber optic, microwave, satellite and VSAT networks. Hubs, switches, routers, gateway and earth station equipment. Ethernet LANs. Fast Ethernet. Network software. Network OS, NetWare, Windows 2000 server. Cellular transmission. Data Communication : Over telephone lines, modems, fax modems, multiplexers, front end processors. ISDN. T1; T3 and ATM digital communication. DSL technologies. Digital communication over a cable network. The Internet : What is it ? What are its uses? TCP/IP. Internet addressing scheme. Domains and sub domains, URL. lpv6,DNS, E-mail, voice over IP. telnet. IRC. newsgroups. Intranets and Extranets. Introduction to Information Systems : Data and information.. Characteristics and value of information. System and modeling concepts. What is an information system? Business information systems. Transaction processing and workflow systems. Management information systems; decision support systems, artificial Intelligence systems and virtual reality systems. Electronic Commerce : Multi-stage module; Challenges of E-commerce. supply chain in an ecommerce system. B2B and B2C E-commerce. E-commerce applications in retail, wholesale, Manufacturing marketing, investments and finance. E-commerce technology infrastructure. Electronic payment systems. Threats to E-commerce. Strategies for successful E-commerce.
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10. Security Privacy and Ethical Issues : in Information Systems and the Internet. Computer related mistakes Computer crime and viruses. Anti-virus software and Firewalls Legal framework for avoiding computer crime. Privacy issues. Health concerns. Ethical issues. 11. Review, Additional Case Studies Practical Work 1. Windows 3. Spreadsheet Software 2. 4. Word Processing software Multi-media presentation
5.
Internet
Project Work Study a banking, FIFFI or NBFC site on the Internet and write a report on it. Comment about the content, look and feel, speed and ease of the use of the site. OR Develop a Website using Microsoft Front Page, Dream Weaver, or a similar tool.
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ECONOMICS : PAPER - II
MACRO ECONOMICS Module 2.4
1. 2. National Income: Concept and measurement- Real Vs. Nominal GNP -Price Indies and National Income deflator. Income Determination: Integrated approach (IS-LM curve model) - Goods market equilibrium (Derivation of IS curve) - Money market equilibrium (derivation of LM curve) Simultaneous equilibrium of the goods market and money market Impact of changes of monetary policy and fiscal policy on the rate of interest and level of income. Money and Banking : Money Supply: constituents and determinants -Credit Creation by the banking 103
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system. Central banking: functions-monetary and liquidity aggregates objectives of monetary policy and conflict between objectives of monetary policy. OVERVIEW OF FINANCIAL SYSTEM : Role of financial systems in economic development - Financial development ratios: Finance Ratio, Financial interrelation Ratio, New Issues Ratio, Intermediation ratio. FISCAL OPERATIONS : Public Revenue: Sources - Public expenditure: classification Public debt: Management. Deficit financing and Inflation Components of budgets, and concept of deficits Business cycles, fiscal policy and economic stabilization. BALANCE OF PAYMENTS : Concepts and components of balance of trade and balance of payments - disequilibrium in balance of payments - measures to correct the disequilibrium in balance of payments. Relative merits and demerits and limitation of Devaluation.
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BUSINESS LAW
Module 2.6
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Concept of Law : Principles of Natural Justice Constitution of India (i.e. Articles 14,19,32, 136 and 226 only) Indian Contract Act, 1872, Principles i.e.S/1-74 & indemnify Guarantee, Bailment, pledge and Agency) Consumer Protection Act, 1986 Indian Partnership Act, 193 Indian Trusts Act, 1882 Sale of Goods Act, 1930 Indian Registration Act, 1908 Indian Stamp Act, 1819 Bombay Stamp Act, 1958 Code of Civil Procedure 1908 (i.e. S/60 and orders VII (Plaint). VIII (Written Statement) XXXVIII R. 5 (Attachment before judgment XXXIX (Injunction) and XL (Receiver) only.
4. 1. 2. 3. 4. 5. 5. 1) 2) 3) 4) 5) 6. 1) 2) 7. 1. 2. 3. 4. 5. 6. 8. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 9. 1. 2. 3. 4. 5. 6. 10. 1. 2. 3. 4. 5. 6.
ECONOMICS : Paper - I Ahuja H.L.-H.L.Ahuja 999 Business Economics Micro. Lipsey. R. K. A. Crystall 999- of Economics. Lipsey-An Introduction to Positive Economics. P.A.Samuelson-Economics. Tata McGraw Hill. New Delhi. Manklw G.N.2001 -Principles of Economics, Thomson South Western. QUANTITATIVE METHODS Mathematics for Economics & Finance by. Martin Anthony & Norman Biggs. Fundamentals of Statistics - D.N.Elhance. Statistical Methods - S. G. Gupta(S.Chand.& Co.) . Statistics for Management - Lovin R. Rubin D.S. (Prentice Hall of India) Statistics - Theory 'Method & Applications D.S.Sancheti & V. K. Kapoor. INTRODUCTION TO COMPUTER SYSTEMS Principles of Information Systems 5" Ed. Stair & Reynolds Peter Norton's Introduction to Computer 4'" Ed. TMH - 2001 FINANCIAL ACCOUNTING : PAPER - I Introduction to Accountancy -T. S. Grewal-(S.Chand & Co.) Double Entry Book Keeping- J. R. Batliboi. Double Entry Book Keeping - M. M. Chokshi Advanced Accounts -Shukia & Grewal (S.Chand & Co.) Advanced Accountancy - R.L.Gupta & M. Radhaswamy Accounting Standards -Institute of Chartered Accountants of India. New Delhi ECONOMICS : PAPER - II International Economics, SalvatoreD I.(1997). Prentice Hall. NewJersey. U.S.A. The International Economy, Kennen. P.B. (1994), Cambridge University Press, London International Economics Theory and Policy., Krugmen.P.R.& Obstgeld.M, (1994), Monetary Economics, Lewis. M. K. and Mizan. P.O. Oxford Univ. Press,New Delhi. Outline of Monetary Economics Day A. C. L., (1960). Oxford University Press, Oxford. Macroeconomics:Theory & Policy Ackley, G. (1976). Macmillan Publishing Company, New York. Macro economic Analysis,Gupta.S.B. (1994), Galgotia Publications New Delhi. Foundations of Modern, HeijdraB.J. and Ploeg.F.V. (2001), University Press. Oxford. Macro Economics. Macro economic Analysis, Shapiro E..(.1996), Galgotia Publications, New Delhi. Modern Banking. Sayers, R.S. (1978), Oxford University Press, New Delhi BUSINESS LAW The Constitution of India Respective Acts Indian Contract Act, Sale of Goods Act, Partnership Act. Business Law - Kucchat M. C. Business Law - Kapoor N. D. Business Law - Chaudha P. R. LAWS RELATING TO BANKING & INSURANCE Banking Laws & Practice, S.R. Davar Banking Laws & Practice, M.L. Tandon Banking Laws Practice, P.N.Varshney Banking Laws & Practice, P.K. Srivastava Banking Laws &. Practice, B.MJ. Nigam Insurance Management, Anand Ganguly
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b) c) d) e) f) 4.
Comparative Financial Statements Trend analysis Ratios : Balance sheet Ratios, Income statement Ratios - Combined statement Ratios Funds flow analysis Sources and Uses of funds Cash Flow Statement.
Working Capital Management a) Gross working capital b) Net working capital c) Positive & Negative working capital (Meaning & Implications) d) Estimation of working capital Sources of Finance a) Long term and Short term Sources of Finance b) Long term sources i) Debt Instruments - Term loans, Debentures, Bonds, Convertible Bonds, Zero Coupon Bonds. ii) Equity shares. Preference shares c) Short term sources - Bank finance. Trade credit, Other short-term sources.
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- Web development tools, value chain for EC; globalization. security, Challenges; business barriers: Market space; Business opportunities; EC-based IPOs; technical environment, Reaching the wired consumer; Intranets: Firefly Network; Web Shopping; Site Specific. Information Technology- & its application in Insurance Cos. 2) 3) Problem Solving : Solving problem by searching; Informed search methods, game playing. Knowledge and reasoning : Agents that Reason Logically; First Order; Logic Building a Knowledge Base; Inference in First Order Logic; Logical Reasoning Systems. (Language for Al problems solving, A PROLOG; B LISP) Acting locally : Planning; Practical Planning; Planning and Acting. Uncertain Knowledge and Reasoning (4 Lectures) Uncertainly; Probabilistic Reasoning Systems: Making Simple Decisions. Learning: Learning from Observations; Learning from Neural Network. Reinforcement Learning; Knowledge in Learning. Future Perspectives: Philosophical Foundations; Al: Present and Future. (Evolutionary Computing; Hard problems and approximate methods; stochastic iterative search; Evolutionary search; classifier systems; applications.) E-Commerce Applications: Online Banking. Virtual Shopping Centers. Portals and Vortals Creating E-Commerce Site : Web Server: Hardware. Software. Security. Installing new Web Server Designing and maintaining Webpages. Website administration, Advertising the Website. Ecommerce Interaction: Using CGI for Ecommerce, CGI Authoring Tools, Applet and Serviet solutions, handling Credit cards, Secure Transport, Processing Credit cards, using JDBC for Ecommerce, Interaction Examples; Virtual Shopping Cards, Auction Engines. Java Commerce Tools: Standard CGI Library, configuration and storage devices, File String Replacement facility, Credit card Transaction Processing , Single Page CGI, Shopping Cart CGI Ecommerce Website Design Web Query Language, Embedded SQL; Development of Ecommerce sites by using CGI, JAVA and databases. Future Trends : Set-top Boxes, TV interface, Emerging Technologies
4) 5) 6) 7)
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Practicals : 06 assignments covering the syllabus 2 Seminar presentations on case studies of IT in Banking and Insurance sectors.
ORGANIZATIONAL BEHAVIOUR
Module-3.6
1. 2. Fundamentals of Organisational Behaviour- Nature & scope of Organizational Behaviour Dynamics of people - Models of Organizational Behaviour - The Behavioral approach to Management. Motivation & Leadership-Theories & Models of Motivation 110
Importance of Motivation in organization Organizational Behaviour & Performance Appraisal- Leadership & Leadership Styles- Empowerment and Participation. 3. 4. 5. 6. Individual Behaviour & Group Behaviour Formula and Informal Groups-Team Building & its importance Organization structure & Design - Kind of organization structures - Delegation Of Authority span of control Organizational culture - Emerging Trends in organizational culture- organizational climate -Factors affecting organizational climate. Organisational Development & changes -Nature & characteristics of organizational DevelopmentTechniques of Organisational Development - Definition & Objectives of Organisational Change Effects of change Resistance to change & overcoming the resistance - stress & counseling
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UNIVERSAL BANKING
Module 4.1
1. 2. Evolution of Universal Banking Commercial Banking versus development banking: sources and uses of funds of commercial banks and development banks; Universal banking a mix of Commercial and development banking; the asset - liability mismatch possibilities; risks in project lending; the short term nature of funding sources; universal banking in the open economy context; off-balance sheet items and services that the development wing of the universal bank provides. The entry of commercial banks into the securities business; Consumer Finance , Merchant Banking, non-banking investments and activities of banks; universal banking and the future of small business lending. Case studies - universal banking abroad - applicability of universal banking in open market oriented emerging economies - advantages and disadvantages; supervisory issues and regulatory concerns. The debate over universal banking in India; recent trends in universal banking in India. Challenges of universal banking in the Indian Context.
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Tools of Evaluating Capital Investments a) Payback Method b) c) Net Present Value d) e) Profitability Index f) g) Modified internal Rate of return
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Cost of Capital a) Computation of Weighted Average Cost of Capital b) Cost of Debt & Cost of Preference Shares and Net Worth c) Minimum Acceptable Rate of Return and its relationship with Cost of Capital Negotiating Term Loan proposals with Banks. Appraisals of Borrowers Credit worthiness by lending banks 112
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Equity Capital as a source of finance : Rights Issue and issue at a premium, SEBI regulations governing issues of securities in India, Prospectus for issue of securities, Understanding and interpreting Initial Public Offerings (IPO) their mode of operation, Employee Stock Options Plan and Sweat Equity. Role of Taxation in influencing Corporate Financial Management a) Concept of Tax Shield (Tax Deductibility of Expenditures and their implications for financial decisions) b) Depreciation Policy
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SEBI - (Disclosure & Investor Protection) - Guidelines Securities Contract (Regulation) Act. Contracts & Options in Securities Listing of Securities Penalties and Procedures. -
ENTREPRENEURSHIP MANAGEMENT
Module 4.5
1. Entrepreneurship -Meaning- Entrepreneurship Awareness - Need for Entrepreneurship & Self Employment Qualities to become an entrepreneur - Building your own enterprise - Government & Entrepreneurship Development Programmes. Business opportunities - Importance of creativity in Entrepreneurship - Bringing our creative ideas. In reality - Managing Resources for small enterprise (6 Ms of Management) - Risk Factor in the self employment - Preparation of project for small scale unit - starting the venture. Legal considerations for opening a new unit forms of ownership - sole proprietary Partnership Elements of Contract Law. Planning for a small scale business - Location of the business - Financial Management Human Resource Management - Production Management - Marketing Management - Cost Controlling Accounting of a business - Developing, Expanding and Ending the venture. Quick start methods - A new approach to selling products & services - franchises - Turnkey or packaged business - Buying an existing business. Entrepreneurship in Banking & Insurance Sectors - opportunities available after privatisation of these sectors. Entrepreneurship Development Centers - Training to entrepreneurs - Training Centers in India. Case Studies - Wherever essential
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The Discount Market: Introduction - Discounting Services - Discount Houses in the UK Discount and Finance House of India- Securities Trading Corporation of India - DFHI and STCI : Volume and Composition of Business Treasury Bills + Government ( Gilt - Edged) Securities Market Treasury Bills, Auction, Participation in T. B. Markets & Role of market in Government Finances Nature and Organisation of Government Securities Market Volume and Composition of Issues Secondary Market Transactions Ownership and maturity Pattern Prices and Yields Implications for Monetary Policy Recent Development in Government Securities Market. Industrial Securities Market Introduction - Finance - Organisation and Structure of Primary and Secondary Market Listing, trading and settlement systems Primary Market and Disclosure Norms Prices and Yields of Industrial Securities Measures to Develop Equity Culture Intermediaries in Primary and Secondary Market Market for futures, Options and other Financial Derivatives Introduction and Meaning, Types and Uses of Derivatives Valuation or pricing of Derivatives Derivatives Market Abroad Derivatives in India : Prospects and Policy Foreign Exchange Market Introduction, Nature, Organisation and participants of Market Central Bank Intervention Exchange Rates (ERs) Devaluation and depreciation Currency convertibility (CC) Forward transaction and Forward Premium
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Cost Accounts & Financial Accounts Compare - Contrast and Reconcile Cost Classification by behaviour with reference to Banking & Insurance Industries Standard Costing Criticisms of standard costing Material prices and usage; labour rate and efficiency (including idle time), variable overhead 115
6.
efficiency and expenditure; fixed overhead expenditure, Volume, capacity and efficiency/productivity Total material mix. and yield variances Total labour mix and yield variances Sales price and volume variances (Note: the volume variance will be calculated on a unit basis using sales revenue, contribution or gross profit) Interpretation of variances: interrelationship, significance Benchmarking Behavioural implications of setting standard costs (Note Standard process costing is not included) Planning what-if analysis Fixed and Flexible budgeting Rolling budgets Activity - based budgeting Behavioural implications
Budgeting Time series and regression Controllable and uncontrollable costs Incremental budgeting Zero-based budgeting Balanced scorecard
7.
Costing Systems and Decision Making Value and functional cost analysis Resource planning systems : MRPL, MRPII and ERP Just in time Activity based, absorption, marginal and process (Eg. FIFO and Average Variable Cost Approach AVCO) costing and throughput Accounting. Cost reduction programmes Total Quality Management Multi-products CVP analysis including breakeven, margin of safety, contribution/sales ratio, break even charts, contributionprofit/volume graphs Relevant costs and revenues for short term decision making Single limiting factor analysis where a company has restricted freedom of action Graphical Linear programming (including an explanation of shadow prices)
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ENTREPRENEURSHIP MANAGEMENT Entrepreneurship - Robert D. Hisrich & Michael P. Peters - Tata Mc Graw Hill New Delhi Entrepreneurship Development-Indo German Technical Co-operation Project (Bhopal) Tata Mc Graw Hill-New Delhi Developing New Entrepreneurs - Entrepreneurship Development Institute of India, Ahmedabad Manual on Developing Entrepreneur Motivation - National Institute for Entrepreneurship and Small Business Development-New Delhi Entrepreneurship Development - Principles, Policies & Programmes, Sara Navel P. Ess Peekay Pub. House. Sarma S. V. S.- Developing Entrepreneurship - National Institute of small Industry Extension Training, Hyderabad Ram K. Vepa - Sage Publication, New Delhi - Modern Small Industry in India, Problems & Prospectus Suri K. B. - Sage Publication New Delhi - Small Scale Entrepreneurs on Industrial Development Taub P. T., Richard Taub and L. Doris - Manohar Publications - New Delhi, Entrepreneurship in India's small scale Industries R. D. Harish & C. G. Brush - The Woman Entrepreneur : Starting Financing & Managing a successful New Business.
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Credit Cards: What is a Credit Cards?- Who can be Member - Types of Credit Cards - New types of Credit Cards - Parties to Credit Card - Procedure at the time of Purchase - Procedure for Reimbursement - Facilities offered to Card Holders - Benefits - Demerits - Credit Card Business in India - Future Prospects.
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Study of Disclosures by way of notes from annual reports of listed companies, branches and insurance companies Analysis and interpretation of the contents of annual reports of companies covering the following: a) Chairman's Statement. b) Director Report & Annexure c) Management Discussion & Analysis d) Corporate Governance Disclosures e) Compliance Certificate in Corporate Governance Auditors Report f) Annexure to Auditors Report including CARO Balance Sheet g) Profit & Loss Account h) Schedules forming part of the Accounts i) Statement u/s 212 of the Companies ct, 1956 j) Balance Sheet Abstract.
E.
Financial Analysis and Interpretation of final Accounts using tools of financial management and investment analysis like ratio analysis, funds flow, cash flows, and common size statements.
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Risk and Return: 4.1 Measuring Historical Return 4.2 Measuring Historical Risk 4.3 Measuring Expected (Ex Ante) Return & Risk The Time Value of Money : 5.1 Time Lines and Notation 5.3 Present Value of a Single Amount 5.2 5.4 122 Future Value of a Single Amount Future Value of an Annuity
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Financial Statement Analysis: 6.1 Financial Statement 6.2 Financial Ratio 6.3 Comparative Analysis 6.4 Du Pont Analysis 6.5 Applications of Financial Statement 6.6 Problems in Financial Statement Analysis Analysis 6.7 Guidelines for Financial Statement Analysis Portfolio Theory: 7.1 Portfolio Return 7.3 Portfolio Diversification 7.5 The Single Index Model 7.2 7.4 Portfolio Risk Optimal Portfolio
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Capital Asset Pricing Model: 8.1 Basic Assumptions 8.2 Capital Market Line 8.3 Security Market Line 8.4 Inputs Required for Applying CAPM 8.5 Empirical Evidence on Capital Asset Pricing Model Efficient Market Hypothesis: 9.1 Random Walk and Search for Theory 9.2 9.3 Empirical Evidence on Weak Form 9.4 Efficient Market Hypothesis 9.5 Empirical Evidence on the Strong-form9.6 Efficient Market Hypothesis 9.7 What is the Verdict? 9.8 Analysis and valuation of Debt : 10.1 Types &Features of Debt Instruments 10.3 Bond Yields 10.5 Interest Rate Risk 10.7 The Yield Curve 10.9 Analysis of Convertible Bonds Equity Valuation: 11.1 Balance Sheet Valuation 11.3 Earnings Multiplier Approach Return and Growth 11.5 Equity Portfolio Management Fundamental Analysis: 12.1 Macroeconomic Analysis 12.3 Company Analysis: The Study of Financials 12.5 Estimation of Intrinsic Value Technical Analysis: 13.1 What is Technical Analysis? 13.3 Technical Indicators 13.5 Evaluation of Technical Analysis 10.2 10.4 10.6 10.8 10.10 What is an Efficient Market? Empirical Evidence on Semi-Strong form Efficient Market Hypothesis An Alternative Paradigm Implications for Investment Analysis Bond Pricing Risk in Debt Rating of Debt Securities Determinants of Interest Rates Bond Portfolio Management
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12.2 Industry Analysis 12.4 Company Analysis: Going Beyond Numbers 12.6 Some Tools for Judging Undervaluation of overvaluation. 13.2 Charting Techniques 13.4 Testing Technical Trading Rules
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Options: 14.1 How Options Work 14.3 Option Strategies 14.5 Binomial Model for Option Values 14.7 Equity Options in India.
14.2 Options and Their Payoffs Just Before Expiration 14.4 Factors Determining Option Values 14.6 Black and Scholes Model
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Futures: 15.1 Features of a Futures Contract 15.3 Equity Futures in India 15.5 Use of Futures Contracts
15.2 Futures Contracts: The Global Scene 15.4 Pricing of Future Contracts
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Port Folio Management Framework 16.1 Specification of Investment objectives & constraints 16.3 Formulation of Port Folio strategy 16.5 Portfolio Execution 16.7 Performance Evaluation
16.2 Selection of Asset Mix 16.4 Selection of Securities 16.6 Portfolio Revision
AUDITING
Module 5.6
A. B. C. D. E. F. G. H. Introduction to different types of audits including higher forms of audits. Viz Internal Audit, External (Statutory)Audit, Financial Statement Audit, Cost Audit, Due Diligence Audit. Management Audit, Proprietary Audit, Environment Audit Social Audit and Auditing in a computerized environment. Financial Statement Audit of Corporate Banks and Insurance Companies, including there in the planning of audit, the execution of audit and the reporting of audit results-clear report, qualified reports and disclaimer of opinion Study of auditing standards prescribed by the. Institute of Chartered Accounts of India. Study of qualifications, observations and remarks in auditor's reports of listed companies, banks and insurance companies. Role of Regulatory authorities like Department of Company Affairs, SEBI, RBI, IRDA and Comptroller & Auditor General of India. Study of portfolio of an auditor-independence, professionalism, professional competencies. Responsibilities, rights, duties and liabilities of an auditor. Role of ethics and regulation in auditing profession-provisions relating to appointment removal and misconduct of an auditor. Role of auditor vis-a-vis audit committees and corporate governance Principles.
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STRATEGIC MANAGEMENT
Module 6.1
(A) An overview of Strategic Management, Levels of Strategic Management, Organizational Strategists, strategic management, Process Environmental considerations, context of strategic management, formulating & implementing strategy. The Dynamic Nature of the Model. The Environment of strategic Management. 1) The Social facet: Ethics, Social responsibility of Business, (Traditional view versus Emerging Trends & issues) the social contract of Business. 2) The Political Facet : Govt. & Business, Govts Role (Historic Role Vs Emerging Role). Cost and implications of Govt. intervention. Recent Trends. 3) The Technological facet: Issues in Technology and Solutions. Impact of Technology on Business. 4) The Economic facet: A conduit for social, political and Technological forces,. Role of competition. National and Global Trends. Strategy Formulation 1) Mission, vision and Goals, Environmental Scanning, Organizational Assessment using Organizational and Environment Information, Objective Setting. Strategy Setting. 2) Tools of corporate level Strategic management. The Boston Consulting Group matrix. The GE Planning Grid, The Life Cycle concept. The Mckinsey 7-S Framework. 3) Strategies: Integration, Diversification, Disinvestment, Downsizing. Activating Strategies 1) Organizational Structure, Does structure. Drive strategy or strategy drive structure. Different organizational structures for different strategies. 2) Resource Mobilization Viz. Money, Markets, Machine, Material, Men. (Human Resources) 3) Leadership and Motivation as Key drivers of Strategy. 4) Role of creativity and innovation. 5) Evaluation and control of strategies. Standards, Bench marking. Benefit Cost Analysis of Options, Performance gap Analysis, Responsibility centers, ROI, Budgeting.
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CENTRAL BANKING
Module 6.2
1. Why Central Banks? An overview of the functions of Central banks; Objectives of Central banks.RBI - Role functions and organizational structure. 125
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Instruments of Central Banking Policy- Bank Rate, cash Reserve Ratio (CRR), open Marketoperations, selective credit control etc. Their working & efficacy in the India context. RBI and rural credit, industrial Finance. RBI and non-banking financial companies. Regulation & supervision. Financial sector reform and the role of the RBI. Credit creation and money supply determination process, reserve money and money supply; the sources and uses of money supply. The conduct of Central banking in open and market-oriented economies. Uncertainties and risks in integrated financial systems; the new orientations in traditional functions; the changing face of monetary policy management in open and market oriented economics; transmission mechanism of monetary policy. Issues of financial stability and autonomy and independence of Central banks.
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INTERNATIONAL BUSINESS
Module 6.3
What is International Business? Growing importance of International Business. Difference between Domestic and International Business. International Business In The 21st Century. The Global Business Environment- The role of History Analyzing the environmental factors for international business. Importance of the Economic and Political environment in the process of intemationalizatlon International Business Environment & India. The Impact of Technology. Foreign Direct Investment. International Trade and Foreign Direct Investment: UNCTAD World Investment Report 2000-2001. Growth of FDI post World War II, changes in patterns of World Trade and production. Protectionism, Discuss and Evaluate arguments for and against it. Impact of FDI on distribution of wealth. Legal Aspects of International Business. Legal environment for international business. Importance of intellectual property rights and patents. Importance of the regulatory mechanisms in Europe, USA and other major countries concerning imports. Importance of laws relating to product packaging, labeling etc. WTO - Legal Implications and anti dumping. Economic Integration. Theory comparative advantage and its importance to international business. Role of organizations like the IMF, World Bank, WTO etc. Role of regional trade groups and market agreements. International Strategy Globalization of an existing business. Business expansion strategies. Studying the competitiveness for globalization Studying the country and company competitiveness. Market research and data collection. 126
International Marketing. International Markets selection for an existing business. Dynamics of product and market selection. Systematic selection of international markets-industry and company sales potential estimationand making of an international business plan. Segmentation of international markets and consumers selection. Analyzing international competition in each market and designing of the winning internationalmarketing strategies. Transnational Corporations. Emergence of Multinational & Transnational Corporations. Role of Transnational Corporations. Multi-location manufacturing. The process of building of an MNC. International Human Resource Management Business ethics and Values-Corruption. Enron Case Study. Importance of Relationships marketing for creating competitive advantage in the internationalbusiness. International HRM Strategy. Conflicts between Corporate and National Pressures. International Managers-Problems faced in recruiting and retaining such managers. Impact of Religion and Culture. Labour markets / skills and training International Financial Markets. Growth of Financial Markets-London, New York, Tokyo. Deregulation of markets & emerging markets - financial hubs. Disintermediation of markets due to deregulation and technology. Integration of markets e.g. Euro, NAFTA, SAARC, ASEAN, etc. Cross borderAlliances. Export Finance And Risk Management. Export / Import Finance in India. Major variables in the financial environment for international business. Currency risks and how to formulate safe international marketing strategies. Foreign Exchange Risk Management. Types of contracts in international business-Terms of payment. Letters of Credit and their importance in the international business. Financial risks in the international transactions and how to avoid them. Role of ECGC and EXIM Bank. Import / Export documentation in India. Business Risks and the Importance of proper documentation in international business. International Business Environment in India Imports related environment in India and other countries. Role of RBI, Customs, DGFT etc. Export related policies in India and other countries. Export benefits in the Indian environment and the likely future scenario. Special Economics Zones. Impact of export benefits on production pricing. Export pricing in India-A case study. Balance of Payments. Trade and InvestmentTheories. Importance of Balance of Payments. Different Exchange Rate mechanisms-implications. Implications of full convertibility. IMF, World Bank-Their role and implications for International Business.
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TURNAROUND MANAGEMENT
Module 6.6
1. 2. Introduction : Definition of Turnaround - Reasons that lead to turnaround - Effects of competition Industrial sickness - Turnaround package Organization and Management concepts Todays Business Organization Survival & Growth Strategies Business World in Transition 21st Century Organization and its Business Strategies for 21st Century. The Nature, Significance, of Business Process Reengineering. Introduction to Business Process Core Business Processes Need for Process Redesign Underlying Premises of BPR Redesign of Business Processes Generic Business Processes to be redesigned Context and Considerations for Process Redesign The Central Thrust of BPR and A Critical Appraisal of BPR. Implementation of BPR Requirements for BPR Implementation Principles of Reengineering Use of Consultants in BPR Reengineering Team Activity Mapping for BPR and Bench marking for BPR. Problems, Issues, Scope, and Trends in BPR Problems, & Issues in Implementing BPR From Business Process Redesign to Business System Redesign Developmental Trends in BPR Appraisal of BPR Ensuring the results of BPR- Outcome and Achievement of Reengineering Performance measures of successful BPR Points of caution in BPR - Redesigning the ORGANISATION Managing Change in Indian Context. Implications of Turnaround Effect of liberalization BPR in Indian Context- Examples of BPR companies in India (case study)
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