sylabrbus

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

SYLLABUS

for

Master of Finance & Control (MFC)(w.e.f. 2012 and onwards)

Department of Business & Financial Studies

U n i v e r s i t y o f K a s h m i rH a z r a t b a l , S r i n a g a r


Syllabi and courses of studyFor

MFC Semester –IIIEffective from academic session-2013

SubjectCode

Name of the Subject Theory Cont.Assessment

Viva-voce ProjectReport

Max Min Max Min Max Min Max Min

MFC-301 ORGANIZATIONALBEHAVIOUR

70 35 30 15 ___ ___ ___ ___

MFC-302 Management ControlSystem

70 35 30 15 ___ ___ ___ ___

MFC-303 Risk Management inFinancial Institutions

70 35 30 15 ___ ___ ___ ___

MFC-304 Financial Management 70 35 30 15 ___ ___ ___ ___MFC-305 Project Planning &

Evaluation70 35 30 15 ___ ___ ___ ___

MFC-306 Corporate Tax Planning& Management

70 35 30 15 ___ ___ ___ ___

MFC-307 Insurance Management 70 35 30 15 ___ ___ ___ ___MFC-308 Financial Services

Marketing70 35 30 15 ___ ___ ___ ___



ORGANIZATIONAL BEHAVIOURCourse Code :MFC-301Semester : 3rd

Max. Marks :100Term End Exam : 70

Cont. Assessment : 30

Course Objectives: This course is designed to equip the students with the tools necessary tounderstanding the dynamics of individual and group behaviour for efficient and effective utilization ofhuman resources in the organizations.

Unit - IOrganisational Behaviour the human context of a managerial job, Contributing disciplines,Emerging trends in OB, Historical evolution of OB; Perception: Process & errors, Improvingperceptions, managerial implications of perception ;Personality development, Determinantsof Personality, Personality traits relevant to OB; Learning, Theories , Principles of Learning ,Contingencies & Schedules of Reinforcement.

Unit - IIMotivation: Early theories, contemporary theories; Stress: Concept of stress, Sources &Effects of stress on humans, Management of Stress; Concept of Group Dynamics and Teams,Theories of Group Formation, Team Development, Communication: Concept of two-way &Open Communication, Transactional Analysis.

Unit - IIIOrganisational Conflict: Traditional & Modern view of conflict, Constructive & Destructiveconflict, Conflict Process, Strategies for encouraging constructive conflict, Strategies forresolving destructive conflict, Leadership Styles, Models and Theories of Leadership.

Unit - IVElements of Organisational Structure, Traditional & Modern Organisational Design, Power &Politics: Sources & Consequences of Power, Organisational Politics, Types of PoliticalActivity, Controlling Political Behaviour, Organisational culture: Elements of OrganisationalCulture, Hofstedes culture typology, Management of Change, Forces responsible for change,Resistance to change, Overcoming resistance to change.

Suggested Readings:

1. Steven McShane & Van Glinar, “Organizational Behavior”, Tata McGraw Hill Publishing Co.2. Stephen Robbins, “Organizational Behavior”. Prentice Hall India Pvt. Ltd New Delhi.3. Fred Luthans, “Organizational Behavior”. McGraw Hill Book Company.4. Kavita Sharma, “Organizational Behavior”, Pearson India.5. Ricky Griffin & Georgy Moorehead, “Organizational Behavior”, Hongh Co. Boston.



MANAGEMENT CONTROL SYSTEMCourse Code :MFC-302Semester : 3rd



Course Objective: This course is aimed at introducing the process and techniques of ManagementControls as practiced in the organizations.

Unit – INature of Management Control Systems: Basic concepts; boundaries of management controlsystems: Strategic planning, management control and operational control. Strategies:Corporate level and business unit strategies. Goal congruence: Factors of goal congruence.Formal management control system: design, implementation and administration. Informalmanagement controls.

Unit – IIManagement Control Structure: Decentralized organization and responsibility accounting.Responsibility centres: Concept and characteristic. Types of responsibility centres: Expensecenters, revenue centres, administrative and support centres, R&D centres and marketingcentres. Profit centres: General considerations, role and performance measurement. Transferpricing; different methods. Investment centres: Performance measure of investment centres.

Unit – IIIManagement Control Process: Strategic planning, programming and budgeting. Classificationof budgets, preparation of sales, production, production cost, (Material, Labour andoverhead), Flexible, Cash and master budgets. performance and zero base budgeting.Performance evaluation and reporting.

Unit – IVBalance score card as a measure of business strategy. Perspectives of measurement: financial,customer, internal-business-process and learning & growth perspectives. Linking balancedscorecard measures to the business strategy. Implementing balanced scorecard managementprogramme.Controls for Differentiated Strategies: Corporate strategies and business unit strategies.Management styles in differentiated strategies. Management control systems in serviceorganizations: Banks and insurance companies. Management control systems in multinationalcorporations.

Note: This paper shall have 50% numerical & 50% theoretical questions.

Suggested Readings:

1. Anthony, Robert N and Govindrajan, Vijay: Management Control Systems, Tata McGraw Hill.2. Merchant, K.C. : Modern Management Control Systems, Prentice Hall.3. Solomons, David, :Divisional Performance:Measurement and Control, Richard D Irwin.4. Mohi-ud-Din, Ghulam; Management Control Systems in Banks, Anmol Publications



RISK MANAGEMENT IN FINANCIAL INSTITUTIONSCourse Code :MFC-303Semester : 3rd



Course Objectives: The course is intended to acquaint students with necessary analytical skills inthe area of management of risk in financial institutions.

Unit – IRisk Management: Concept, objectives, sources of risk, types of financial risks- market risk,liquidity risk, credit risk, operational risk, systemic risk: definition, causes, the bankingbook, the trading book and off balance sheet exposures: types and associated risks, Scientificrisk management process; Regulatory mechanism for risk management, Regulatory capital,economic capital, components, RAROC, concept, measurement.

Unit-IIRisk Measurement: Market Risk sources: currency risk, fixed income risk, equity risk,commodity risk, modeling risk factors, computing returns, time aggregation, measuringvolatility, VaR as downside risk measure, VaR caveats, VaR parameters, Correlation effect,VaR back testing and stress testing, Credit risk Drivers, Probability of default, MeasuringCredit exposure, Loss given default, measurement of expected credit loss, unexpected creditloss.

Unit-IIIOperational Risk Management: Concept of operational risk (OR), importance of OR, ORdrivers, peculiarity of OR, BIS definition of OR, Categorization of OR, OR measurementmodels: earnings volatility method, CAPM based method, Operational risk managementprocess, Regulatory Approaches for attribution of capital charge for operational risks- BasicIndicator Approach, Standardized Approach and Advanced Measurement Approaches.

Unit-IVAsset-Liability Management: Concept, evolution, significance, scope and objectives of ALM,Liquidity Risk, dimensions of liquidity risk, measurement of liquidity gaps, static gaps,dynamic gaps, Sources of interest rate risk, measurement of interest rate gap, The RepricingGap Model, price-yield relationship of fixed income securities, duration and convexity, TheDuration Model. Introduction to Derivatives: Use of Futures and options in Hedging.

Note: This paper shall have 50% numerical & 50% theoretical questions.Suggested Readings:1. John C Hull, Risk Management and Financial Institutions, 3rd Edition, 2009, Pearson Education, India.2. Reto Gallati, Risk Management and Capital Adequacy, 2003 Edition, McGraw Hill Series.3. Karen. A Horcher, Essentials of Financial Risk Management, 2005 Edition, John Wiley & Sons.4. Joel Bessis, Risk Management in Banking, 2nd Edition, 2002, John Wiley & Sons.5. Andrea Resti & Andrea Sironi, Risk Management and shareholder’s value in banking, 2007, John Wiley & Sons.6. S. Scott McDonald & Timothy W. Koch, Management of Banking, Sixth Edition, Cengage Learning India.7. Philippe Jorion, Value at Risk, 3rd edition, 2007, The McGraw Hill Company.8. Websites: www.rbi.gov.in; www.bis.org, www.nseindia.com

MFC Semester –III


Effective from academic session-2013

FINANCIAL MANAGEMENTCourse Code :MFC-304Semester : 3rd



Course Objective: This course is aimed to enable the students to learn the implications of the threeimportant financial decisions viz; financing, dividend and working capital management decisions.

Unit – IOperating leverage, financial leverage and combined leverage, uses of leverage, effects of leverage.Capital Structure: theories of capital structure, features of an appropriate capital structure; factorsaffecting capital structure decision; capital structure planning: EBIT-EPS analysis, ROI-ROEanalysis, coverage ratios, cash flow analysis; indifference point.

Unit – IIDividend Decision: Dividend theories: Walters Model, Gordon’s Model, M-M-hypothesis. Differentdividend policies; Analysis of dividend policies, factors affecting dividend decision, forms ofdividend payments, Stock dividend, stock split, stock repurchases, bonus shares.

Unit – IIIWorking capital: Concepts, and components of working capital, objectives of WCM, determinants ofWC, estimating working capital needs. Sources of working capital: Accruals, trade credit, CPs,factoring, public deposits. Bank credit, forms of bank credit, regulations of bank finance. Types ofinventories, objectives of inventory management, costs of inventories, techniques of inventorycontrol, selective inventory control techniques.

Unit – IVReceivables: purpose of receivables, cost of maintaining receivables; credit and collection policy,credit granting decision, control of receivables. Discriminant analysis and customer classification.Cash management: meaning of cash, motives for holding cash, Methods of accelerating cash receiptsand decelerating cash payments; cash management models: determining optimum cash balance, formsof liquidity, choosing the liquidity mix; management of surplus cash.

Note: this paper shall have 50% numerical and 50% theoretical question.

Suggested Readings:

1. Brealey Richard A. & Steward C. Myers : Corporate Finance, McGraw Hill, New York.2. Block, Stanley B., Geoffrey Ahilt : Foundations of Financial Management, Richard D. Irwin, Homewood,

Illinois.3. Chnadra Prasana: Financial Management, Tata McGraw Hill, New Delhi.4. Hampton Jhon : Financial Decision Making, Prentice Hall Delhi.5. Pandey i. M. :Financial Management, Vikas Publishing House Delhi.



PROJECT PLANNING & EVALUATIONCourse Code :MFC-305Semester : 3rd



Course Objective: The objective of this course is develop a knowledge base of the students aboutplanning, analyzing & evaluating Capital investment projects.

Unit – ICapital budgeting: Significance, process and sources of Capital Investment Proposals. Typesof capital projects. Levels of capital budgeting decisions. Facets of capital project analysis.Market Analysis: Basic objective of market analysis, steps involved in market analysis.

Unit – IITechnical Analysis: Basic objectives, different facets of technical analysis. Ecologicalanalysis.Cost of Project; Means of Financing; Cost of Production; Working Capital Requirement;Financial Projections-Projected Balance Sheet, Projected Sources and Uses of FundsStatement; Projected Cash Flow Statement and Projected Income Statement - Estimation ofSales and Costs Financial Analysis:

Unit – IIIEstimation of cash flows; Operating cash flows, Cash outflows & terminal cash flows.Capital Budgeting Techniques: PBP, ARR, NPV, IRR, MIRR and PI. Techniques of riskanalysis: Sensitivity analysis, scenario analysis, break-even analysis, simulation, risk-adjusteddiscount rate, standardization of probability distribution. How financial institutions analyzerisk.

Unit – IVSocial Cost – Benefits analysis: Rationale of SCBA, UNIDO approach, LITTLE-MIRRLEESapproach, shadow prices. Social Cost Benefits Analysis by financial institutions, public sectorinvestment decisions in India.


Suggested Readings:

1. Chandra, P. : Projects Planning, Analysis, Financing Implementation and Review, Tata McGraw Hill,New Delhi.

2. Dhankar, R.S. : Financial Management of Public Sector Undertakings, Westvila, New Delhi.3. IDBI : Manual of Industrial Project Analysis in Developing Countries.4. O.E.C.D. : (i) Manual for Preparation of Industrial Feasibility Studies. (ii) Guide to Practical Project

Appraisal.5. Pitale, R.L. : Project Appraisal Techniques, Oxford and IBH.6. Planning Commission : Manual for Preparation of Feasibility Report.7. Timothy, D.R. and W.R. Sewell : Project Appraisal and Review, Macmillan, India.8. Chaudhary, S. : Project Management, Tata McGraw Hill, New Delhi.9. Singh M.K, “Project Evaluation and Management”.



CORPORATE TAX PLANNING & MANAGMENTCourse Code :MFC-306Semester : 3rd



Course Objective: This course aims at making students conversant with the concept of CorporateTax Planning & Indian Tax Laws, as also their implications for corporate financial management.

Unit – IAssessment of Companies: Meaning and kinds of companies under Income Tax Act,determination of residential status of companies, computation of taxable income andtax liability of companies. Advance Tax payment for Companies: Pay as you earnscheme, computation of advance tax and interest payable on shortfall of advance tax.

Unit – IICorporate Tax Planning : Concept & scope; tax planning differentiated from tax evasionand tax avoidance; tax shifting and its types; areas of tax planning; significance,methods and problems of tax planning. Minimum Alternate Tax (MAT): Scheme ofMAT in brief, concept of zero tax company; computation of book profits u/s 115JB;computation of tax liability under MAT provisions.

Unit – IIITax Planning with regard to Specific Management Decision: : i) Lease or buy; ii) retainor replace; iii) New capital investment; (with practical problems). Tax Planning &Financial Management Decisions: Tax planning and tax implications in developingcapital structure; Tax considerations in dividend policy; (with practical problems).

Unit - IVCapital Gains Tax: Provisions for computation of capital gains and related exemptions,Sale of Investment and Securities transaction tax (STT).Service Tax: Taxable services and their classification, registration procedure, records to bemaintained. Valuation of taxable services and payment of service tax.


Suggested Readings:

1. Acharya Shuklander : Tax Planning Under Direct Taxes, Modern Law Publication, Allahabad.2. Bhatnagar, s.p: Customs Law & Procedures, Centax Publications, New Delhi.3. Datey, V.s : Indirect Taxes : Law & Practice, Taxman Publications, New Delhi.4. Income Tax Act, BARE act, Taxman Publications, New Delhi.5. Singhania, V.K : Direct Tax Planning & Management, Taxman Publications, New Delhi.6. Singhania, V.K : Direct Taxes-Law & Practice, Taxman Publications, New Delhi.7. Srinivas, E.A : Corporate Tax Planning : Tata McGraw Hill Publishing Co. Ltd. New Delhi.



INSURANCE MANAGEMENTCourse Code :MFC-307Semester : 3rd



Course Objective: The objective of this course is to introduce fundamentals of insurance businessand its management.

Unit - INature, purpose and need of insurance. Insurance as a social security tool. Functions of insurance: risk sharingand risk transfer, risk reduction through pooling of transactions. The concept of risk - Kinds and classification ofrisks - Assessment - Transfer; Classification of Insurance - Types of Life Insurance - Pure and Terms - Types ofGeneral Insurance, Fire, Marine, Motor, Engineering, Aviation and Agricultural - Insurance of Property,pecuniary interest, liability and person. Privatization of insurance sector and pre-cum-post privatization scenarioof insurance industry in India. Role and functions of IRDA.

Unit-IIBasic principles of Insurance - Utmost Good faith - Insurable Interest - Material facts - Indemnity - ProximateCause. Economic principles of Insurance - Sharing - Subrogation - Contribution; Insurance company operations;rate making; underwriting; production; claims management; Reinsurance; investments patterns and theirregulations; other insurance company functions. Financial soundness indicators and insurance code principles:Selection criteria and implementation issues: core set of indicators. Determination of solvency margins

Unit-IIIPlans of Life Insurance - Need levels - Basic elements - Some popular plans (Limited payment plan,participating policies, convertible plans, joint life policies, Children’s' plans, educational annuity plans, variableInsurance plans, riders for the Handicapped, Miscellaneous.Annuities - Nature of annuities, types. Group Insurance - Nature of Group Insurance - Types - Group gratuityschemes. IRDA Regulations on Management of Life Insurance Services/products. Policy Claims - MaturityClaims - Survival benefits - Death claims - Claim Concession - Presumption of Death - Accident benefit anddisability benefit - Post-maturity Options - Settlement options - Valuation and surplus.

Unit-IVGeneral Insurance forms - Proposal of Insurance - Cover notes - Motor Vehicle Coverage - Fire & MarinePolicies and Coverage - Standard policies - Reinstatement value policies - Declaration policy - Floating policy.Policy document in General Insurance - Need and format - Policy preamble - Schedule - Attestation -Conditions and privileges - Alteration - Duplicate policy - Policy renewal procedure - Premium payment lapseand revival - Assignment - Nomination loans - Surrenders - Foreclosure. IRDA Regulations on Management ofGeneral Insurance Services/productsClaims procedure - Preliminary procedure - Investigation and assessment - Role of Surveyors & Loss assessors -Claims documents - Arbitration - Limitation - Settlement -Loss minimization and salvage.

Suggested Readings:

1. Majumdar, P.I and Diwan, M.G:Principles of Insurance, Insurance of India, Mumbai.2. Pai, V.A and Diwan, M.G : Practice of General Insurance, Insurance Institute of India, Mumbai.3. Pai, V.A and Diwan, M.G : Practice of Life Insurance, Insurance Institute of India, Mumbai.4. Sharma,R.s:Insurance:Principles and Practice, Vora Publications, New Delhi.5. Athearn, James. L :Risk and Insurance, West Publishing Co. USA.6. Gupta P. K., Insurance & Risk Management, Himalaya Publishing House, New Delhi.7. Dinsale, W.A:Elements of Insurance, Pitman.8. Hubner, S.S:Economics of Life Insurance.9. Hubner, S.S and Keneth Black: Life Insurance.



FINANCIAL SERVICES MARKETINGCourse Code :MFC-308Semester : 3rd



Course Objectives: The Course aims at developing knowledge for financial services marketingconcepts and practices used for managerial decisions.

Unit - IFund Based Financial Services – Leasing and Hire Purchase, Consumer Finance, Factoring andForfeiting, Venture Capital, Securities of Debt. Fee Based Financial Services – Merchant Banking,Credit Rating, Bill Discounting, Credit Cards, Underwriting, Depositories.

Unit - IIImportance of Services Sector in the economy; Characteristics and Classification of Services; GoodsVerses Services Marketing. The Services Marketing Triangle. Consumer Behaviour in Services;Customer Expectations of Service; Customer Perceptions of Service; Service Quality, CustomerSatisfaction and loyalty. GAP Model-A Conceptual Tool to Identify and Correct Service.

Unit - IIIServices Marketing Mix: Services Offer; Pricing and Revenue Management; Promotion andDistribution of Services; Management of People, Process and Physical Evidence; Matching ofDemand and Capacity; Strategies for Matching Capacity and Demand.

Unit - IVRelationship Marketing – Scope. Need for Relationship Marketing – Firm and CustomerPerspectives. Developing and Managing Relationships; Relationship Development Strategies; Role ofInformation Technology in Relationship Building (E-CRM). Customer Feedback and ServiceRecovery. Customer Complaining Behaviour; Service Recovery Strategies and Service Guarantees.

Suggested Readings:

1. Bateson John E. G., “Managing Services Marketing: Text and Readings” Dryden Press,Chicago.2. Berry Leonard L. and Parasuraman A., “Marketing Services: Competing Through Quality”, The Free

Press, New York.3. Bitner Mary Jo and Valarie A Zeithaml, “Services Marketing” McGraw-Hill, New York.4. Christopher, H. Lovelock, “Services Marketing”, Prentice Hall, Eaglewood Cliffs, New Jersey.5. Kotlar Philip and Bloom P. N., “Marketing Professional Services”, Prentice Hall, Eaglewood Cliffs, New

Jersey.6. Verma H.H., “Marketing of Services” Global Business Press, New Delhi.7. Avadhani, V.A., “Marketing of Financial Services”, Himalaya Publishing House, Delh.Mohan Rao, “Financial Services – Text, Cases and Strategies”, Deep and Deep publications Pvt Ltd. Delhi.

Documents

sylabrbus