ANNEXURE – V

MBA (FULL-TIME & PART-TIME)

AND MIB COURSES

LIST OF ELECTIVES

Note: During the course, in addition to the compulsory papers, a student shall have to
choose Five Elective Papers from the List of Elective Papers announced at the
beginning of each semester for MBA (Full Time) & MIB during Third & Fourth
Semesters and for MBA (Part-Time) during Fifth and Sixth Semesters

Electives – Finance Area Page 95

 I. FINANACE
1. FINANCIAL DERIVATIVES
2. FINANCING OF SMALL BUSINESS
3. CORPORATE RESTRUCTURING
4. INTERNATIONAL FINANCIAL MANAGEMENT
5. INTERNATIONAL ECONOMIC ORGANISATIONS
6. INDUSTRIAL FINANCE
7. MANAGEMENT OF FINANCIAL SERVICES
8. MANAGEMENT CONTROL SYSTEM
9. PROJECTS PLANNING, ANALYSIS AND MANAGEMENT
10. SECURITY ANALYSIS AND INVESTMENT MANAGEMENT
11. WORKING CAPITAL MANAGEMENT
12. CORPORATE TAXATION
13. PORTFOLIO MANAGEMENT
14. FINANCIAL DECISIONS ANALYSIS
15. INTERNATIONAL ACCOUNTING
16. INTERNATIONAL FINANCIL MARKETS
17. FOREIGN EXCHANGE MANAGEMENT
18. INFRASTRUCTURE FINANCE

Electives – Finance Area Page 96

1. FINANCIAL DERIVATIVES

Objectives: The course is to give an understanding of the functioning of derivative

markets.

Module I

Financial risk – Risk and uncertainty – types of risk – interest rate risk currency risk,
transaction risk, translation risk & economic risk systematic and unsystematic risk – Risk
management & tools. Financial Derivative Risk Management using derivatives.

Module II

Forward and futures market – Mechanism of forward and futures market Determinants of
forward and futures prices – Hedging strategies using futures – Interest rate futures –
Foreign currency futures.

Module III

Options – Mechanics of option markets – Characteristics and types – Option models –

Black-Schools and Binomial Models – Trading strategies, Interest rate options

Module IV

Swaps and swaptions – Mechanics of interest rate swaps valuation of interest rate swaps –
Currency swaps and its valuation options on swaps.

Module V

Derivative markets in India – Futures and options on Index , Stock commodities and
interest rates – Trading infrastructure for derivatives in India.

Suggested Readings:

1. Hull, John C. Introduction to Futures and Option markets, Prentice Hall

international edition.
2. ………..Options, Futures and Other Derivative Securities, New Delhi. Prentice
Hall of India.
3. Cox John C and Rubinstein, Mark Options Markets New Jersey, Prentice Hall
Inc.
4. Bhalla V.K. Financial Derivatives, New Delhi, S. Chand.

Electives – Finance Area Page 97

2. FINANCING OF SMALL BUSINESS

Objectives

The objective of the course is to familiarize the participants with the various modes of
Small Business Financing.

Module I : Financial Management in Small Industries: Definition & Characteristics of

small business SSI Sector in India – Financial needs of small business – types of
capital requirements – Cash Management Problems.

Module II: Institutional agencies for promotion of small business and various schemes
of assistance available – Banking and non-Banking financial intermediaries – Role of
SIDBI

Module III: Monetary Policy of RBI for small Business – Priority sector advance –
Lender’s appraisal for working capital assessment and project finance – guidelines and
procedures.

Module IV: Rationale for incentives and role of SSI sector in India – Incentives and
other assistance from Central and State Governments – Fiscal & Financial.

Module V: Government Policy towards VSI sector – a review SSIs and Financial
Allocation and utilization under Five Year Plans – a critical appraisal.

Suggested Reading

1. Bhalla, V K. Financial management and Policy 2nd ed. New Delhi, Anmol 1998
2. Bhattaacharya C D Public Sector Enterprises in India. Allahabad, Kitab mahal,
1990
3. Desai, Vasant, Small Scale Industries and Enterpreneurship, Bombay, Himalaya,
1995
4. Pickle, Hal B and Abrahamjon Royee – Small Business management 5th ed. New
York, John Wiley, 1990
5. Schumacher, E.F. Small is Beautiful, New Delhi, Rupa, 1990
6. Staley, E and Morsey, R. Small scale Industries in the Developing countries, Nedw
York, McGraw hill
7. Vepa, Ram N How to Success in Small Industry New Delhi, Vikas, 1984

The list of case and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 98

3. CORPORATE RESTRUCTURING
Objectives:

The objective of this course is to familiarise the student with the various strategies adopted
by business organizations in the context of the dynamic environment facing them by re-
engineering and restructuring themselves.

Module1

Corporate Valuation: Methods of valuing the firm—value creation—Corporate expansions

and diversifications

Module 2

Mergers and Acquisitions: Rationale—mechanics—evaluation of targets—merger

negotiations—Legal and other formalities –tax aspects of mergers—Regulation of mergers
and Takeovers in India—Takeover code—Competition Act.

Module 3

Sell offs and changes in ownership: Business downsizing-- Divestitures—Spin offs and
Split ups—Going public—privatisation—Leveraged Buy Outs(LBOs)—Buyback of
shares—Joint Ventures and Strategic Alliances—Defense tactics against takeovers and
their rationale.

Module 4

Business Failure and Reorganisation: Types and causes of business failure—

Reorganisation, reconstruction and liquidation—Rehabilitation and Turnaround of sick
units—funding, refunding, and refinancing.

Module 5

Privatization and Disinvestments of public sector units—an evaluation of Government’ s

policy and strategy .

Suggested Readings:

1. Bhalla, V.K., Financial Management and Policy, Anmol Publications, New Delhi.
2. Chandra, Prasanna, Financial Management, Theory and Practice, Tata McGraw-
Hill Publishing Co.Ltd, New Delhi.

3. Weston, Chung, and Hoag, Mergers, Restructuring, and Corporate Control,

Prentice-Hall, New Delhi.
4. Copeland , Keller, and Murrin, Valuation: Measuring and Managing the Value of
Companies, John Wiley & Sons, New York.
5. Donaldson, G, Corporate Restructuring: Managing the Change Process from
within, HBS Press, Boston, Massachusetts.

Electives – Finance Area Page 99

 6. Hitt, Harrison, and Ireland, Mergers & Acquisitions-A guide to Creating Value for
Stakeholder, Oxford University Press, New York.
7. Shiva Ramu,S, Cross-Border Mergers and Acquisitions, Wheeler Publishing, New
Delhi.
8. Mohana Rao, P(ed), Mergers and Acquisitions of Companies, Deep& Deep
Publications, New Delhi.
9. Sudarsanam, P.S,, The Essence of Mergers and Acquisitions, Prentice-Hall, New
Delhi.
10. Ramaiya, A., A Guide to the Companies Act, Wadhwa & Co, Nagpur.
11. Laxmi Narain, Principles and Practices of Public Enterprise Management, Sultan
Chand, New Delhi.

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 100

4. INTERNATIONAL FINANCIAL MANAGEMENT

Objectives

The objective of this paper is to give students an overall view of the international financial
system and how multinational corporations operate.

Course Contents

Module I:

Multinational Financial Management – An overview: Evolution of the International

monetary and Financial System.

Module II:
Long-term Investment Decision. Foreign Investment Decision. Risk Analysis

Module III:
Multinational Capital Budgeting – Application and interpretation.
Module IV:

Cost of capital and Capital Structure of the Multinational Firm. Managing Short-term
assets and liabilities; Long-term Financing.

Module V:

Dividend Policy of the Multinational Firm. Taxation of the multinational Firm.

Suggested Readings

1. Abdullah, F A Financial management for the Multinational firm, Englewood cliff,

New Jersey, Prentice Hall Inc. 1987
2. Bhalla, V K International Financial management 2nd ed. New Delhi, Anmol, 2001
3. Buckley, Adrian, Multinational Finance, New York, Prentice hall Inc. 1996
4. Kim Suk and Kim, Seung Global Corporate Finance: Text and Cases 2nd ed. Miami
Florida, Kolb, 1993
5. Shapikro, Alan C. multinational Financial management, New Delhi, Prentice hall
of India, 1995.

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 101

5. INTERNATIONAL ECONOMIC ORGANISATIONS

Objectives
To familiarize the students with the functioning of the international economic
organisations and their changing role in the context of globalisation of the world economy.

Course Contents

Module I:
Regimes, International Economic Organisations and Development Diplomacy: Regimes
and regimes theory.
Module II:
International Organisations as international institutions; International monetary Fund
(IMF).

Module III:
World Bank Group—International bank For Reconstruction and development (IBRD),
International development Agency (IDA), International Finance corporation (IFC).
Module IV:
Multilateral Investment Guarantee Agency (MIGA); Agreement on Tariffs and Trade
(GATT); World Trade Organisation (WTO).
Module V:
United nations Conference on Trade and Development (UNCTAD); International labour
Organisation (ILO).
Selected Readings
1. Bhalla, V.K. International Monetary cooperation, Delhi, Anmol, 1992
2. Hunt, Diana Economic Theories of Development: An Analysis of Competing
Paradigms, Hemel Hempstead: Harvester Wheat heal, 1989
3. Keohane, Robert,O International Institutions and State Power Essays in
International relations Theory Boulder West view, 1989
4. Krasner, Stephen D Structural Conflict The Third World Against Global
Liberalism, Berkley University of California Press, 1985
5. Simai Mihaly The Future of Global Governance, Washington,D,C. United States
Institute of Peace Process 1994
6. Sidell, Scott The IMF and Third World Political Instability, London, Macmillan,
1988
The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 102

6. INDUSTRIAL FINANCE

Course Objectives :
The objectives of this course is to give the students a through knowledge of the various
sources of finance for business/industrial firms in India. He/She is expected to be familiar
with the terms and conditions affecting various sources. Various issues are examined from
the point of view of the borrower rather than the institutions/agencies involved.

Module I :
Source of funds - Internal and External source for meeting short, medium and long term
requirements - Their relative advantages and disadvantages.

Module II :
Capital market - Functions and Organisation - Method of floating new issues - Statutory
framework of securities market in India. Capital issue control and its aims - SEBI -
Listing of securities - Objectives- Importance and scope - New issue market in India -
Underwriting of issues.

Module III :
Term loans - Institutions providing term loans - IFCI : ICICI :IDBI and SFCs - various
schemes of financing - lending policies - Appraisal methods.

Module IV :
Commercial Banks and Industrial Finance-Evolution of their role - Banking policies and
practices - Social control - Nationalisation-Lead Bank Scheme-Service Area Approach -
Lending to priority sector-Lender’s appraisal and computation of working capital
requirement-Advance against inventory - Credit Authorisation scheme -
Recommendations of Tandon Committee and Chore Committee on working capital
financing - recent changes.

Module V:
Financing small scale industries - Institutional sources - Role of commercial Banks -
Various small business loan schemes.

Suggested Readings :
1. Bhalla V.K. :Indian Financial System Anmol Publications,New Delhi
2. P.V. Kulkarni : Corporation Finance- Principles & Problems
(Himalaya Publishing Co.)
3. M.Y.Khan , : Indian Financial System, Tata McGraw Hill N.Delhi
4. Francis Cherunilam : Business & Government ( Himalaya Publishing Co.)
5. H.P.S. Pahwa, : Bank Finance to Business and Industry,Vinod Law
Publications, Lucknow
6.M.L.Tnnan, : Banking Law and Practice in India, India Law House
The list of case and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 103

7. MANAGEMENT OF FINANCIAL SERVICES

Objectives

The main objective of this course is to help students to learn the various financial
services and their role in the overall financial system.

Module I : Financial System and markets; Concept, Nature and scope of financial
Services.

Module II : Regulatory Framework for Financial Services; Management of Risk in

Financial Services; Stock Exchange Operations; Mutual Funds.

Module III : Merchant banking Services Managing of issue shares and bonds Mobilising
of Fixed Deposits-Inter-corporate loans-international finance

Module IV : Other Financial services leasing and Hire Purchase; Debt Securitization;
Housing finance, Credit rating; Credit cards banking and Insurance.

Module V: Venture Capital, Factoring and Bill Discounting, Insurance; The Tax
environment and Financial Services; Pricing Financial Services.

Suggested Readings

1. Bhalla, V K Management of Financial Services Anmol, New Delhi, 2001

2. Bhalla, V K And Dilbag, Singh, International Financial Centres, New Delhi,
Anmol, 1997
3. Ennew.C, Trevor Watkins & Mike Wright: Marketing of Financial Services,
Heinemann Professional Pub., 1990
4. Gordan, E and K Natrajan Emerging Scenario of Financial Services, Himalaya
Publishing House, 1997
5. Meidan, Arthur Brennet, M, Option Pricing Theory & Applications. Toronto,
Lexington Books, 1983
6. Kim, Suk and Kim, Seung, Global Corporate Finance Text and cases. 2nd ed.
Miami Florida, Kolb, 1993

The list of case and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 104

8. MANAGEMENT CONTROL SYSTEM

Objectives
The main objective of the course is to appraise the students the about the concept of
management control system as well as its role in efficient management of public system
organization.

Course Contents
Module I:
Management Control - An Overview: Nature, Scope and Concept of management Control
Systems. Organization Goals, Strategic Planning and Implementations, Organisation
Structure, Contingency Theory, Organizational climate, Position of Controller in the
Organisation Structure, of an Organization.

Module II:
Management Control Process Programming, Budgetary Planning and Procedures,
Budgetary Control, Analysis of Variances, Flexible budgeting, Zero-base Begetting,
Performance Budgeting Accounting Aspects of Control including internal Audit and
Control and Value for Money, Analysis and Reporting, Variance Reporting.

Module III:
Management Control Structure Responsibility Centre, Responsibility Accounting, Cost
Centre, Profit Centre, Interdivisional Transfer Pricing, Measurement of Divisional
Performance including Performance Evaluation – Qualitative and Quantitative, Investment
Centre.

Module IV:
Behavioural Aspects of management Control: Motivation and Morale, Goal Congruency,
participative and responsive management. Human as a Part of information Process,
learning Curves.

Module V:
Management control in Specialised Organisation Selected Case Studies on Non-profit and
Public Service Organization.

Suggested Readings
1. Anthony, R N and Govindrajan V Management Control Systems 8th ed.
Taraporevala, Chicago, Irwin, 1995
2. Emmanuel, C and Otlely, D Accounting for management Control, London,
Nostrand Reinhold, 1985
3. Ghosh, P K and Gupta G S Cost Analysis and Control New Delhi, Vision 1985
4. Glynn, J J Value for Money: Auditing in Public Sector, London, Prentice hall Inc.
1985
5. Hersey, P and Blanchard, H B Management of Organization Behaviour: Utilising
Human Resources, New Delhi, Prentice hall of India, 1988
6. Maciariello, J A and Kirby C J management Control System Englewood Cliffs,
New Jersey, Prentice hall Inc., 1994

The list of cases and specific references including recent articles will be announced in
the class at the time of launching of the course.

Electives – Finance Area Page 105

 9. PROJECTS PLANNING, ANALYSIS AND MANAGEMENT

Objectives
The basic purpose of this course is to understand the framework for evaluating capital
expenditure proposals, their planning and management in the review of the projects
undertaken.

Course Contents
Module I:

Generation and Screening of Project idea; Capital expenditure; Importance and

difficulties.

Module II:

Market Demand and Situational Analysis; Technical Analysis; Financial Analysis.

Module III:

Analysis of Project Risk, Firm Risk and market Risk; Social Cost Benefit Analysis ,
Multiple Projects and Constraints.

Module IV:

Network Techniques for Project Management; Project Review and Administrative

Aspects.

Module V:

Project Financing in India; Problem of Time and cost Overrun in Public Sector
Enterprises in India, Assessment of the Tax burden; Environmental Appraisal of
Projects.

Suggested Readings

1. Ahuja, G.K. & Gupta, Ravi, Systematic Approach to Income Tax, Allahabad,
Bharat Law House, 1997
2. Bhalla, V K Modern Working Capital management New Delhi, Anmol, 1997
3. Bhalla, V K Financial management and Policy 2nd ed. New Delhi, Anmol, 1998
4. Chandra, Prasanna, Projects: Preparation, Appraisal, Budgeting and
Implementation 3rd ed. New Delhi, Tata McGraw Hill, 1987
5. Dhankar, Raj S. Financial Management of Public Sector Undertakings New Delhi,
Westville, 1995

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 106

10. SECURITY ANALYSIS AND INVESTMENT MANAGEMENT

objective: To impart knowledge on different investment avenues available and to ceate

awareness on the theory and practice of security analysis and investment decision making
process.

Module I

Investment objectives, characteristics & policies – Risk return relationship Measures of

risk & return – Time value of money – determinants of required return – Financial market
instruments – Money and Capital market instruments – Mutual funds – Tax implications
on income.

Module II

Fixed income securities – Charactristics – Concept of yield – Types and measurement of

risk – Valuation methods – Investment management and risk avoidance techniques – use
of credit rating information

Module III

Common stock – Charactristics – Estimation of income – Economy, industry. Company

analysis – Valuation models – Dividend discount models. P/E Ratio. Capital Asset Pricing
Model.

Module IV

Technical Analysis-Charting-Dow theory and wave principles – patterns & indicators –

Moving averages – Trends – Efficient market Hypothesis & Anomalies

Module V

Security markets in India – Money and capital market in India – New Issue market –
Methods of Issue – Secondary market – Stock exchange – Role & Functions – Listing –
Trading procedures and settlement – Regulatory and supplementary organizations and
regulatory measures.

Suggested Readings:
1. Francis, jack Clark. Management of Investments, mc Grow Hill International
Edition
2. Sharpe,William F. etc. Investments, New Delhi, Prentice Hall of India
3. Bhalla, V.K. Investment Management: Security analysis and Portfolio
Management, New Delhi, S. Chand
4. Fisher, Donald E. and Jordan, Ronald J. Security Analysis and Portfolio
Management, new Delhi, Prentice hall of India.

Electives – Finance Area Page 107

11. WORKING CAPITAL MANAGEMENT

Objectives
The objective of the course is to acquaint the students with the importance of the working
capital and the techniques used for effective working capital management.

Course Contents
Module I:
Concept of Working Capital Management, Importance of Working Capital, Kinds of
Working Capital, Factors Determining Working capital, Estimating Working capital
Requirements.

Module II:
Management of Cash – Motives for Holding Cash and marketable securities; Cash System
Managing the Cash Flows, Types of Collection Systems, Cash Concentration Strategies
Disbursement Tools, Investment in marketable Securities, Forecasting Cash Flows;
Managing Corporate Liquidity and Financial Flexibility; Measures of Liquidity,
Determining the Optimum Level of Cash Balances – Baumol Model, Beranek Model,
Miller-Orr Model, Stone Model.

Module III:
Receivable Management – Determining the Appropriate receivable Policy, marginal
Analysis, Credit Analysis and Decision, Heuristic Approach, Discriminant Analysis,
Sequential Decision Analysis.

Module IV:
Inventory Management Kinds of Inventories, Benefits and Costs of Holding Inventories,
Inventory management and Valuation, Inventory Control Models.

Module V:
Short-term financing; Programming Working Capital Management; Integrating Working
capital and capital Investment processes; Monetary System; Money market in India;
Banking system in India; the restructuring Process; working Capital Control and banking
Policy in India; Instruments of The International Money market; managing Short-term
International Transactions.

Suggested Readings
1. Bhalla, V.K. Working capital management: Text and cases 4th ed., Delhi, Anmol,
2001
2. Hampton J J and C L Wagner Working capital management, John Wiley & Sons
1989
3. Mannes, T S and J T Zietlow Short-term Financial management, west Pub. Co.
1993
4. Scherr, F.C. Modern Working capital management, Prentice hall, 1989
5. Smith, Keith V. and G.W. Gallinger Readings on Short-term Financial
management, 3rd ed. West Pub. Co., 1988

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 108

 12. CORPORATE TAXATION

Objectives

The objective of the course is to acquaint the participant with the implications of tax
structure and corporate profit planning in operational as well as strategic terms.

Course Contents

Module I
Basic Concepts of Income Tax - residential status of Assessee – Tax free incomes

Module II
Computation of Income under Different Heads of Income: Income from house
property – Income from business/profession – Capital Gain – Income from other
sources.

Module III
Aggregation of income - Set off and Carry forward of Losses - Deductions and
Exemptions.

Module IV
Assessment of Companies – Computation of total income - Filing of Return of income
– Procedure of Assessment – Collection and Recovery of Tax

Module V
Income tax Authorities - Tax Planning Relating to Companies

Suggested Readings

1. Vinod K Singhania : Direct Taxes Law & Practice

2. Bhagavathi Prasad: Income Tax Law & Practice
3. Mehrotra H.C.: Direct Taxes - Law & Practice

Electives – Finance Area Page 109

13. PORTFOLIO MANAGEMENT

Objectives

The objective of this course is to give the students an in-depth knowledge of the theory
and practice of Portfolio Management.

Module I: Portfolio Management: Introduction to Portfolio Management – Portfolio

Analysis: Risk and Return – Valuation of Bonds and Shares – Portfolio construction.

Module II: Portfolio Selection: An Optimum Portfolio Selection problem – Markowitz

Model – Single Index Model.

Module III: Capital Asset Pricing Model – Arbitrage Pricing Theory.

Module IV: Portfolio Revision: Portfolio Investment Process – Meaning of Portfolio

Revision – Need for Portfolio Revision – Constraints in Portfolio Revision – Portfolio
Revision Strategies – Formula plans.

Module V: Portfolio Evaluation : Meaning of Portfolio Evaluation, Need for Evaluation –

Measuring Portfolio Return – Risk Adjusted Returns; Sharpe Ratio, Treynor ratio,
Jensen’s performance index.

Suggested Readings

1. Alexander, Gordon J and sharpe, William, F. Fundamentals of Investments,

Englewood Cliffs, New Jersy, Prentice Hall Inc., 1989
2. Bhalla, V.K. Investment management: Security Analysis and Portfolio
management , 8th ed. Delhi. S. Chand 2001.
3. …………………………Portfolio Analysis and management, Delhi, S. Chand,
2002
4. Elton, Edwin Jand Gruber, Martin J Modern Portfolio Theory and Investment
Analysis. New York, john Wiley 1984
5. Lee Cheng F. etc Security Analysis and portfolio management Scott, Foresman,
1990
6. Markowitz harry M Mean., Variance Analysis in Portfolio Choice and capital
Market London, Basic Blackwell, 1987

Electives – Finance Area Page 110

UGC

14 FINANCIAL DECISIONS ANALYSIS

Objectives

The basic objective of this course is to impart an intensive knowledge about the use of
quantitative techniques in specified financial decision making areas.

Course Contents

Application of Linear programming; Goal programming; regression Analysis and

Simulation Technique in Financial Decision making Areas: Corporate Debt Capacity
Management Decision; Business Failure and Reorganisation -- Application of Multiple
Discriminant Analysis; Decision Tree Analysis, Capital Expenditure Decision Under
Conditions of Risk and Uncertainty. Cost Volume profit Analysis under conditions of
Uncertainty; Leasing Vs. Borrowing Decisions Sequencing of Decisions; Replacement
Decisions; Mergers and Acquisitions, Take over code Goodwill and valuation of Shares
Dividend Valuation Model, Determination of the Exchange ratio: Legal and Procedural
Aspects of Merger Decision, Specific Areas and Problems in the Area of Financial
Decision Making; Estimation and Projection of Working Capital Decisions.,

Suggested Readings

1. Bhalla, V K Financial management And Policy 2nd ed. New Delhi, Anmol, Delhi,
1998
2. Bieman, Harold, Lease Vs. buy Decision Englewood cliffs, New Jersey, Prentice
Hall, Inc.1982
3. Fogler, H and Ganpathy Financial Econometrics.. Englewood Cliffs, New Jersey,
Prentice hall Inc. 1982
4. Levy, H and Samat H. Capital Investment and financial decision Englewood cliffs,
New Jersey, Prentice hall Inc. 1982
5. Van Home, James C. Financial management and Policy, Englewood cliffs, New
Jersey, Prentice Hall of India,1997

The list of cases and specific references including recent articles will be announced in the
class at the time of launching of the course.

Electives – Finance Area Page 111

 15 INTERNATIONAL ACCOUNTING

Objectives

The objective of this course is to acquaint the students with the accounting needs of
international financial markets and to analyse the accounting measurement and
reporting issues unique to multinational business transactions.

Course Contents

International Dimensions of Accounting – Conceptual Development and Comparative

Development Patterns; Currency Transactions; managing International Information
Systems; International Perspective on Inflation Accounting financial Reporting and
disclosure; Analysing
Foreign financial Statements; Financial management of Multinational Entities;
Transfer Pricing and International Accounting – International Standards and
Multinational Corporations.

Suggested Readings

1. Arpon, Jeffrey S and Radebaugh, Lee H. International Accounting and

Multinational Enterprises. New York., John Wiley, 1985
2. Choi, Frederick D S and Mueller Gerhard G. International Accounting, Englewood
Cliffs, New Jersey, Prentice Hall Inc. 1984
3. Evans, Thomas G. International Accounting & Reporting London, MacMillan,
1985
4. Gray, S J International Accounting and Transnational Decisions. London,
butterworth, 1983
5. Hoizer H Peter International Accounting New York, Harper & Row, 1984
6. Prodhan, Bimal, Multinational Accounting London, Croom-Helm, 1986
7. Rathore, Shirin, International accounting, Englewood cliffs, New Jersey, Prentice
Hall Inc. 1996

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of course.

Electives – Finance Area Page 112

16 INTERNATIONAL FINANCIAL MARKETS

Objectives

The objective of this course is to give students an in depth knowledge of the working of
international financial markets.

Course Contents

History of the International Financial System – The rise and Fall of Bretton Woods,
Globalisation and the growth of Derivatives, the Crash of 1994-96 and Beyond, Euro-
currency market, Eurobanking and Euro-currency Centers, Deposit Dealing and the term
Structure of eurocurrency rates, Eurocurrency Futures and Options, Syndicated Euro-
credits, International Bond Markets, - Introduction, New Issue Procedures in the Eurobond
Markets, Eurobond Valuation and Hedging Interest rates and currency Swaps, Pricing
Option, Features of International Bonds., Forecasting and the Image of the Future -
Central banks and the Balance of Payments. The European Monetary System and Other
Regional Artificial Currency Areas, New Instruments in International Capital markets,
International Banking and Country Risk, International Portfolio Diversification,
International Transfer Pricing.

Suggested Readings

1. Bhalla, V K International Financial Management 2nd ed. New Delhi, Anmol 2001
2. Bhalla, V K Managing International Investment and Finance, New Delhi, Anmol,
1997
3. Buckley, Adrian, Multinational Finance 3rd ed. Englewood Cliffs, Prentice Hall
Inc., 1996
4. Eiteman, David K and Stonel ill, Arthur l. Multinational Business Finance.
California, Addison-Wesley, 1988
5. Johnson and Glaccotto, Options and Futures St. Paul, West, 1995
6. Kim Suk and Kim, Seung Global Corporate Finance: Text and Cases, 2nd ed.
Miami, Florida, 1993
7. Shapiro, Alan C. Multinational Financial Management New Delhi, Prentice Hall of
India, 1995

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 113

17 FOREIGN EXCHANGE MANAGEMENT
Objectives
To acquaint the participants with the mechanism of the foreign exchange markets,
measurements of the foreign exchange exposure, and hedging against exposure risk.

Course Contents

Types of Foreign Exchange Markets and Transactions, Quoting Foreign exchange rates,
Spread, Official and Free Market Rates, Cross Rates, Forward Rates, Quoting Forward
rates Organisation of the Foreign Exchange markets; Currency Futures; Currency Options;
Currency Swaps; Corporate Exposure Management Alternative Definitions of Foreign
Exchange risk Exposure Information System, Alternative Strategies for Exposure
Management, Exposure management Techniques, Organisation of the exposure
management Function; Parameters and Constraints on Exposure management; Theory and
practice of Forecasting Exchange Rates Economic Fundamentals, Financial and Socio-
Political factors, Technical Analysis; Tax Treatment of Foreign exchange Gains and
Losses; FEMA.

Suggested Readings

1. Aliber, R Z exchange risk and corporate International finance, London, Macmillan,

1978
2. Bhalla, V K International financial management,2nd ed. Delhi, Anmol, 2001
3. Luca Cornelius Trading in the Global Currency Markets, NJ , Prentice hall, 1995
4. Shapiro, A.C. International Financial management Boston, Allyn and bacon, 1979
5. Sutton, W.H. Trading in Currency Options, NY New York Institute of Finance,
1987

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course.

Electives – Finance Area Page 114

18 INFRASTRUCTURE FINANCE

Objective

The objective of the course is to identify the sources of infrastructure financing

Course Contents

Project Finance; Infrastructure Finance Vs. Project Finance; Evolution of Private and
Commercially Financed Infrastructure Projects in India: Structural Issues-Dissatisfaction
with the performance of existing PSUs, Lack of funds with the Government, Structural
finance, risk participation assistance, types of guarantees, contemporary products, pricing
of issues Commercialization/ corporatisation of PSUs with the increased reliance on the
capital market, Privatisation; Outlook for Infrastructure Projects: Demand for
Infrastructure in Future, Supply of Infrastructure Finance: Infrastructure Finance-Scope
and Avenues: Business and major players(Global and Indian), Products (Funded and non-
funded)- types, mezzanine finance, take-out products-tax implications; Role of FI and
banks and shift in portfolio of FI and banks, skills required for career in infrastructure
finance; Process Flow chart of typical Infrastructure projects Process flow for MOU
projects and competitively bid projects; Infrastructure finance-key terms and concepts;
Types of projects (BOT, BOOT, BOLT, BOO, LROT, RMOT), Concession on
agreements/license agreements & key clauses therein; Key contracts (EPC, O & M)
Shareholders agreement) & key clauses therein (including diagram depicting typical
contractual structure) Financial Closure, Role of Independent regulators tariff fixation and
dispute resolution, jurisdiction in each sector and relationship with govt. (coverage would
include briefly the function of TAMP, CERC, SERC, TRAI) Risk Analysis-Key risks in
Infrastructure finance and litigation, allocation of risk including insurance’s Infrastructure
projects appraisal in a financial institution: Appraisal process, Generic issues, Internal
committees and functions, Sanction/letter of intent, Disbursement and post-disbursement
process; Sectoral Outlook: Business process and opportunities for private sector
participation sector-wise; Advisory Services; Recent Deals.

Suggested readings

1. Bamford, C G Transport Economics, Heinemann pub., Oxford, 1998

2. Bhalla, V K Financial management and Policy, 2nd ed. Anmol Pub. Pvt. Ltd. New
Delhi, 1998
3. Dieter, Helm and Tim Jenkinson (ed.) Competition in Regulated Industries, UK,
Oxford University Press, 1998
4. International Finance Corporation Financing Private Infrastructure Lessons of
Experience, World Bank, Washington D.C. 1996
5. Morris, Sebastian Indian Infrastructure Report, ed., oxford University Press, 2001
6. Raghuram S. et al. Infrastructure Development and Financing, Delhi, Macmillan,
1999

The list of cases and specific references including recent articles and reports will be
announced in the class at the time of launching of the course

Electives – Finance Area Page 115