SAPM 6410: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Objective: To Familiarize Students With The Different Investment Avenues And Its Analysis
And Managing A Portfolio.

MODULE- I: 8 Hrs
Introduction and scope of the subject, economic meaning and significance of savings,
investments, security, portfolio, speculation, gambling, and arbitrage mechanisms. Legal
framework of securities market, investors and stock exchanges, Comparison between
investment and speculation and its significance in Indian financial system.
MODULE - II 14 Hrs
Investment options: company shares, debentures, bonds, convertible securities, hybrid
securities, fixed deposits, gilt- edged securities, post office schemes, company and public
provident funds, unit trust of India, LIC, real estate, and insurance schemes

Investments attributes: Various investments means available in India, characteristics features

of financial instruments, types of financial assets and instruments, risk, return, security,
maturity, and optional features. Finance vs. investments- interactive decision elements.

MODULE – III 12 Hrs

Security analysis:
Fundamental –technical-economic analysis of securities. Profile of Indian investors and factors
influencing investment decisions, financial positions, tax positions, risk perception and
attitude. Introduction to systematic and non-systematic risks.
MODULE - IV:
Security pricing: 14 Hrs
Factors influencing valuation, constant growth modal, equity valuation, dividend capitalization,
earnings capitalization, use of P/E ratio, security pricing model.
Securities valuations:
Valuation of fixed income instruments and equities, calculation of return on yield, intrinsic
value, Mathematics of financial evaluation, discounting, compounding, annuities, present’
value, and yield calculations. (Simple problems only)

MODULE - V 10 Hrs
Security markets:
Features of capital markets and functioning, new issues market, IPO’s, valuation of issues
fundamental and technical considerations - role of SEBI.

Stock exchanges: role and importance, trading procedures in securities, and brokers and
Jobbers, impact of certain economic indicators on the stock market. Role of SEBI in brief.

MODULE - VI:
Options and futures: 7 Hrs
Options – meaning and salient features, calls and put options, types of derivatives, options
price, writer of options, price changes, risks, market structure, options v/s Badla

Futures – meaning, future v/s options, index futures, valuation of index future. Arbitrage,
Hedging, topic price index futures, advantages of futures index, duration effect.
MODULE - VII: 10 Hrs
Portfolio management;
Meaning, return on portfolio, risk on portfolio, portfolio managers, SEBI guidelines for
portfolio managers, portfolio management services.
Portfolio theory - contribution of William Sharpe and Harry Markowitz,- Single index model,
capital asset pricing modal and arbitrage pricing theory

BOOKS FOR REFERENCE:

1. Fisher & Jordan, “Investment Management.”
2. Avadhani, Security Analysis and Portfolio Management. VII edition
3. Shalla, Security Analysis and portfolio management.
4. Puneethavathi & Pandian, Security Analysis and Portfolio Management.
5. Prasanna Chandra, Managing Investments.
 GBF – 6420 : GLOBAL BUSINESS FINANCE

The objective is to blend sound theoretical knowledge of foreign exchange

economics with practical and procedural aspects of banks and other institutions
connected with foreign exchange. It also provides understanding of risk
management by banks as well as exporters and importers.

MODULE 1:CHANGING GLOBAL FINANCIAL ENVIRONMENT

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 (12 Hours)

MODULE 2: BALANCE OF PAYMENTS

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 (11 Hours)

MODULE 3:FOREIGN EXCHANGE MARKETS

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. (14 Hours)

MODULE 4: EXCHANGE RATE DETERMINATION

Interest rate parity, Purchasing power parity, The Fisher effects, Forecasting exchange rates –
Efficient market approach, Fundamental approach, Technical approach, Performance of
forecasters (12 Hours)

MODULE 5: EURO CURRENCY MARKETS

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 (12 Hours)

MODULE 6:MANAGING FOREIGN EXCHANGE EXPOSURE

Management of foreign exchange risk, Management of translation Exposure, Management of
transaction Exposure, Management of Economic Exposure (14 Hours)

Suggested books:
Madhu Vij, International Financial Management, Excel Books,Second Edition
Eun and Resnick, Mc Graw Hill international editions
Allan C.Shapiro, Multinational Finance Management, Prentice Hall, New Delhi, 1995
Apte P.G,International financial Management,TMH,New Delhi,
 SFM – 6430 STRATEGIC FINANCIAL MANAGEMENT

Obiective: To familiarize the students with traditional and modem strategies of financial
planning and management of corporate enterprise in the context of globalization.

Module 1:
Financial policy and strategic planning: Formulation of strategies and policies, components of financial
strategy, objectives and goals, strategic planning process
5Hrs
Module 2:
Financial planning and strategy: Strategic decision Characteristics of Financial Planning,
Estimating between strategic planning and financial planning making and planning- Meaning,
financial requirements, Linkage
10 Hrs
Module 3:
Risk analysis in Capital Budgeting - Sources of risk, Nature of risk, statsistical techniques for
risk analysis - Probability defined, Standard Deviation, co-efficient of variation, Conventional
techniques of Risk analysis-payback method, risk adjusted discount rate, Certainity equivalent,
Risk adjusted discount rate vs. Certainity equivalent, Sensitivity analysis, Decision Tree
analysis.
15 Hrs
Module 4:
Corporate restructuring, mergers and acquisitions: Corporate restructuring, Types of business
combination, Mergers and acquisition trends in India, Motives and merits of M&A, Value
creation through M&A, Valuation under M&A: DCF approach, Regulations of M&A in India
10 Hrs
Module 5:
Asset based financing-Leasing ,hire purchase and project financing - Leasing: meaning,
importance, types, tax considerations, and accounting considerations, Evaluation of lease from
the point of Lessor and lessee; lease Vs. Buy decision; Hire Purchase - Meaning and features -
Differences between hire purchase and credit sale, hire purchase and Installment sale and
leasing. RBI guidelines for hire purchase, problems of hire purchase in India, Project financing,
Characteristics of Project financing and financing arrangement for infrastructure projects.
15 Hrs
Module 6:
Venture capital., Concept of venture Capital fund- Characteristics - Growth of venture Capital,
Differences between venture capital financing and conventional financing Stages of venture
capital financing schemes - legal aspects - working of venture capital funding agencies in India.
10 Hrs
Module 7:
Financing strategy: Hybrid securities namely convertible and non-convertible debentures, deep
discount bonds, secured premium notes, convertible preference shares, option
financing, warrants, convertibles and exchangeable
10 Hrs
BOOKS FOR REFERENCE:
1. Pandey.I.M, Financial Management, Vikas Publishing house, Ninth edition
2..S.N Maheshwari Financial Management.
3. Sharma and Sashi Gupta, Financial Management
4. Allen.D., An Introduction to strategic financial Management, CIMA/Kogan page, London
 AMA 6440: ADVANCED MANAGEMENT ACCOUNTING

Objective: to emphasize on application of theoretical knowledge and help managers in decision

making.

Module - 1
Marginal Costing And Break Even Analysis - Using P/V Ratio, Effect Of Changes
In Cost, Volume And Profit, Overall PN And Composite BEP, Impact Of Key Factors
Including Sales Mix, Mergers Of Two Plants / Factories, Cost Difference Point, Cash
Break Even Point, Profit Volume Graph, Marginal Costing Vs. Absorption Costing.
10 Hours
Module - 2
Short Term Decision Making - Make Vs. Buy Decisions, Decisions Relating To
Acceptance And Rejection Of A Special Offer / Order, Selling Price Decisions, Add Or
Drop Products, Product Line Decisions, Operate Or Shut Down Decisions, Manufacture
V s. Sub-Contract Or Lease Out Decisions, Decisions Based On Incremental Revenue
And Differential Cost Approach, Choice Based Alternative.
10 Hours
Module 3
Budgeting - Budget And Budgeting, Budgetary Control, Functional Budgets, Master

Budget Cash Budget, Flexible Budgets, Projected Balance Sheet, Responsibility

Budgeting, Performance Budgeting, Zero Based Budgeting, Responsibility Accounting
5 Hours
Module 4
Financial Statement Analysis - Comparative Income Statements Analysis And Common
Size, Comparative And Common Size Balance Sheet, Funds Flow Statement, And Cash
Flow Statements .

10 Hours
Module 5:
Ratio Analysis-Liquidity ratios, Profitability ratios, Turnover ratios, Leverage ratios and
Investment Analysis ratios., Construction of P&L account and Balance sheet with the
help of ratios.
8 Hours
Module 6
Revenue and profit variance analysis - Introduction, sales variance, profit variance,
actual profit and budgeted profit variance reporting.
5 Hours
Module 7
Responsibility Accounting - Introduction, Meaning, and Objectives, Types of
Responsibility centers
2 Hours
Module 8
Inflation accounting - Meaning, objective, nature and importance, methods
2Hours
Module 9
Human Resource Accounting, Meaning, Objective, Nature and importance, methods
3 Hours
BOOKS FOR REFERENCE:
I.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.
 IDTX – 6450: INDIRECT TAXES

Objectives: The objective is to gain expert knowledge of the principles of the

indirect tax and the relevant rules emerging from leading decided cases.

Central Excise Act, 1944 and the related Rules, and Central Excise Tariff Act.
1985.

MODULE: I
5 hrs

Nature of Excise Duty, legislative history, coverage, levy and collection of excise
duties, legal effects of Notifications, Tariff Advises, Trade Notices.

MODULE:II
5 hrs
Registration procedures –Maintenance of records, registers and filing of returns

MODULE:III
5 hrs
Provisions governing manufacture and removal of excisable goods – valuation
under the excise rules.

MODULE:IV
5 hrs
:Provisions relating to storage of excisable goods, time and manner of payment of
duty and other matters relating to removal of goods.

MODULE:V
10 hrs
Classification of goods under the Central Excise Tariff Act with reference to
Rules of Interpretation.

MODULE:VI 10 hrs
Assessment including provisional assessment, self removal procedure,. Payment
of duty, and rate of duty, Record based control and production based control

MODULE:VII
Remission of duty on goods used for special industrial purposes – procedure for
exports, duty draw back – Provisions relating to CENVAT.

MODULE:VIII
Departmental organizational set up, adjudication and appellate procedures –
Offences and Penalties – exemption for small scale industries. Customs Act 1962
and Customs Tarif Act 1975.
 MODULE:IX
Principles governing levy of customs duty, types of duty including protective
duty, safeguard duty, countervailing duty and anti dumping duty and exemption
from customs duties.

MODULE:X
Basic principles of classification of goods and valuation of goods- Customs
authorities, appointment of customs ports, warehousing stations – provisions
governing conveyance, importation and export of goods, special provisions
regarding baggage, goods imported or exported by post, and stores.

MODULE:XI
Detailed procedure in relation to transportation and warehousing – drawback of
customs duties paid – Prohibition, search and seizure, adjudication, appellate
remedies including prosecution in court of law and allied miscellaneous matters.

MODULE:XII
Service Tax: Meaning, Applicability, Procedure for Registration and
Maintenance of records and registers – Payment of Service tax – Liability –
Submission of returns – Authorities . .

MODULE:XIII
central sales tax- meaning, applicability, registration, records to be maintained
returns to be submitted, meaning of dealers, inter state turnover, definition of
turnover, assessment, appeal, and VAT

BOOKS RECOMMENDED
1. Direct Tax Law And Practice By Dr. Bhagawathy Prasad New Age Publications
2. Direct Tax Law And Practice By Dr. H.P Mehrotra Sahitya Bhavan Publications
3. Students Guide To Income Tax By Dr. Vinod .K. Singhani Tax Man Publications
4. Income Tax Law And Practice By Gaur And Narang Kalyani Publications