THIRD SEMESTER

3.1Project Management
Course Objectives: To enable the students to understand project
management and feasibility studies. Analyze project work breakdown
structure, cost and time estimation. Understand project risk management
with contingency planning; Evaluate project team performance and control;
Ensure project closure with post audit.
Course Outcomes: At the end of this course, the students can choose a
feasible project and allocate resources optimally. Develop a responsibility
matrix and arrive at project completion time and cost. Mitigate risk factors
and project crashes. Develop and manage virtual project teams.
1. Project Management: concepts & key terms, evolution of integrated
project management system, aligning projects with organization strategy,
project life cycle, feasibility studies -different forms of project contracting.
2. Project Scope Management: defining project scope, creating work
breakdown structure (WBS), project roll up, process breakdown structure,
and responsibility matrix.
3. Estimating project cost and time: factors influencing the quality of
estimates, top-down versus bottom-up estimating, methods for estimating
project cost and times.
4. Project Risk Management: measuring risk, contingency planning,
scheduling resources, and reducing project duration.
5. Project Team Management: building high-performance project teams,
managing virtual project teams, and project control process. Performance
measurement and evaluation, project quality, planning, quality assurance,
quality audit, project closure, post-completion audit.
References:
 Project Management – Clifford Gray & Larson
 The practice and theory of project management creating value through
change – Newton, Richard – 2009, Hampshire, Palgrave Pub
 Effective project Management – Clements, James P &Gido Jack –
2006, NewDelhi, Cengage Learning
 Project Management: A managerial approach – Meredith, Jack.R&
Mantel Samuel.J – 2006, New Delhi, John Wiley & Sons
 Project Management for business, engineering & technology:
principles & practice – Nicholas, John.M&Steynl, Hermann
 Project Management – Harvey Maylor – 1999, New Delhi, Macmillan
pub
 www.pmi.org
3.2Entrepreneurship and Small Business

Course Objectives: To help the students to develop entrepreneurial skills

and mindset among the students. Understand the role of financial and
educational institutions in fostering entrepreneurial development. Analyze
various perspectives of the business environment and import-export policy
from a global perspective.
Course Outcomes: At the end of the course the students will be able to
conceptualize the ideas and develop business models; Operate the business
under the socio-economic and legal framework; plan strategies to develop
small-scale businesses; gain exposure to international trade.
1. Foundations of Entrepreneurship: nature of Entrepreneurship, social &
cultural factors in nurturing entrepreneurship. Institutional support for
promoting entrepreneurship in India, role of Universities & Colleges, CSIR
labs.
2. Business Planning: from idea generation to preparation of detailed
business plans. Exercises in preparation of business plans. Business
Continuity aspect-contingency, workflow reallocation
3. Venture Capital: Valuing and financing a venture, stages of venture
development and financing, venture capital firms (VCs). Rural & social
entrepreneurship, potential for entrepreneurship in rural India, SHGs, micro-
credit etc. family businesses, new generation entrepreneurs, women
entrepreneurs- case studies
4. Small Business in Indian Environment – Economic, Social, Political
cultural and Legal; Policies Governing small scale units; industrial policies
and strategies relating to small scale sector. Start-ups in India. Impact of
pandemic on small business.
5. Institution assisting export promotion of small business in India;
Export promotion councils global perspective of small business in selected
countries.
 References:
 Entrepreneurship – Prof. T.V.Rao
 Entrepreneurship – Hisrich& Peter
 Stay hungry stay foolish-RashmiBhansal
 Entrepreneurship-Mathew J Manimala
 Indias new capitalist – Harish Damodaran
 Business Maharaja’s – GeethaPeramal
 Desai Vasant, Organization and Management of Small scale industry,
Bombay, Himalaya,
3.3: Elective FM 1: Advanced Corporate Finance
Course Objectives: To familiarize the students with basic concepts of
financial management and capital budgeting. Ranking and analyzing various
investment proposals. Understand the importance and relevance of dividend
decisions under a legal framework. Gain knowledge about firm valuation
using various models. Gain insight into Information asymmetry and
principal-agent conflicts.
Course Outcomes: At the end of the course students will be able to apply
capital budgeting techniques to evaluate various investment proposals.
Design a suitable dividend policy. Firm valuation is based on various
models and information asymmetry in an ideal capital market.
1. Advanced Topics in Capital Budgeting: Cash Flow Measurement
Problems, Use of Probabilities, serial dependence and independence of cash
flows, Use of Decision Trees, Real Options in Capital Budgeting:
Expansion, Abandonment and Postponement
2. Ranking Projects: Conflicts in Ranking Projects using NPV and IRR,
Fisher’s rate of intersection, Multiple IRRs, MIRR, Optimal decision under
capital rationing-Risk Analysis in Capital Budgeting using Sensitivity
Analysis and Scenario Analysis and Simulation
3. Dividend Decisions: Dividend As a Passive Residue, Signaling device.
Determinants of Dividend Policy of a firm. Provisions of Company Law and
Income Tax Law pertaining to Dividends.
4. Valuation of the Firm: Ideal capital market, valuation of the firm using
MM, CAPM, Binomial and BSOPM models and their reconciliation-
5. Information Asymmetry and Principal Agent Conflicts: Separation of
ownership and control, principal and agent conflicts, real-world factors and
violation of conditions of ideal capital market on the valuation of securities
and firms. The classic directive, maximizing V vs E. Information asymmetry,
Ackerlofs market for lemons, Spence’s job market signalling, causes of
information asymmetry, valuation of securities and quality of stock market.
Information asymmetry and bond valuation and dividend.
3.4: Elective FM 2: Financial Markets and Institutions
Course Objectives: This course helps the students to understand the Indian
financial system provides an overview of capital markets and market for
government securities. Throws light about Banking functions and
regulatory framework; imparts knowledge about merchant banking and
functions of credit rating agencies; Comprehends fraudulent activities
under the companies act.
Course outcomes: At the end of this course the student will be equipped
with the Indian financial system; Thorough about various financial
instruments and stock market operations; and Proficient enough to design
corporate debt restructuring mechanisms. Will be capable of assessing credit
rating and take up the role of merchant bankers practically. Investigate
fraudulent activities under the SEBI framework.
1. Overview of Indian Financial System: Indian Capital Market and
Money Market, Foreign Institutional Investors (FIIs)-Portfolio Management
Schemes of Indian Institutional Investors, Global Capital Flows-Hedge
Funds, Private Equity. ADR and GDR.
2. Indian Capital Market: Primary and Secondary Capital Markets in
India-Market for Stocks and Bonds, Market for Derivative Instruments
(Financial and Commodities), Over the Counter Markets (OCTEI), NCDEX,
MCX. Markets for Government Securities, Mock Exercises in Online Stock
Market Operations on Sensex and Nifty.
3. Banking in India: current problems of public sector banks, capital
adequacy norms, Basel norms, NPA problem, corporate debt restructuring,
and securitization of debt and asset reconstruction companies, the new
Insolvency and bankruptcy code.
4. Merchant Banking and Credit Rating: Introduction to merchant
banking, merchant bankers/lead managers, registration, obligation and
responsibilities, underwriters, obligation, bankers to an issue, brokers to an
issue. Issue management activities and procedure pricing of issue, issue of
debt instruments, book building green shoe option, services of merchant
banks, Credit Rating - SEBI guidelines, limitations of rating.
5. Regulatory Mechanisms: The role of SEBI in regulating the Capital
Market and Stock Exchanges- Outlines of the SEBI Act and Powers of SEBI-
Important Cases dealt with by SEBI-Sahara, NSEL, Insider Trading Cases etc.
Investigation into Corporate Frauds under Companies Act. NFRA and IBBI.
3.5Elective FM 3: Portfolio Management
Course Objectives: This course enables the students to learn about the
valuation of equity, debt and mutual funds; provides an understanding of the
concept of market efficiency; impart awareness about EIC framework and
technical analysis for making equity investment decisions; enables portfolio
construction and evaluation using various measures.
Course outcomes: At the end of the course the student will be able to
make investment decisions into equity and debt; Will be able to predict the
intrinsic value of an investment and future stock price movements;
Construct and manage active portfolio; Evaluate the performance of
portfolio based on the performance measures.
1 . Efficient Market Hypothesis: The Concept of Market Efficiency-Weak
Form, Semi-strong and Strong form of efficiency Tests for Measuring
Efficiency-STIGLITZ paradox of Market Efficiency-Optimal risky
portfolios-Markowitz’s mean variance model Vs Stochastic Dominance
Analysis(SDA), Equilibrium in capital markets – Capital asset pricing
model, Index models and Arbitrage pricing theory and multifactor models of
risk and return.
2 . Fixed Income Securities: Bond Prices and yield –Bond Characteristics
and Types, Bond Pricing, Bond yield, Term Structure of Interest rate,
Interest rate interest rate sensitivity, duration, convexity and immunization.
3 . Fundamental Analysis: Economic analysis, Industry analysis, Company
analysis, Forecasting company earnings, Valuation of companies, and
Metrics used in the valuation of firms.
4 . Technical Analysis: Market indicators, Forecasting individual stock
performance, Techniques, Types of charts, Dow theory, Relative strength,
Contrary opinion, Moving average, Conference index, Trading volume,
Concept of depth, breadth and resilience of the market.
5 . Active Portfolio Management: Sharpe, Treynor, Jensen’s Alpha
measures of mutual fund performance – measuring investment return,
conventional theory of performance evaluation, M2 and T2, market timing,
performance attribution procedures, style analysis and morning stars, risk-
adjusted rating. Active portfolio construction using Treynor – Black model
FINANCE
4.2 Elective FM 4: Strategic Financial Management
Course Objectives: To help students acquaint to the methodology of Mergers and
Acquisitions, Leverage Decisions and its practical impact. They learn about Financial
Distress and Restructuring. To study the impact of Dividend policy on the market value
of the firm. To be acquainted with the influence of Stock Repurchases on market
capitalization.
Course Outcomes: Acquire knowledge on the methodology, synergy of Mergers and
Acquisitions, and theories of Leverage Decision. Develop the capability to analyze the
cause and effect of Financial Distress and Restructuring of corporations. Develops
ability to understand the impact of dividend policy and stock repurchases on the
market value of the firm. Enthralls mastery over Managing Internal Equity, Seasoned
Equity Offerings and its pricing phenomenon.
1. Mergers and Acquisitions (M&A): Market for corporate control, basic forms of
M&A as per Indian company law-acquisition, takeovers, amalgamations, leveraged and
management buyouts tax forms of acquisition, accounting methods, pooling v/s
purchase, strategies financial acquisition. Synergy from acquisitions, sources of
synergy, valuation for acquisition-8 metrics to be used, hostile bids and defensive
tactics. Empirical evidence from M&A in India
2. Leverage Decision: Optimal Capital Structure under Revised MM Hypothesis.
Traditional Trade-Off Theory of Capital Structure, Pecking Order Theory of Capital
Structure. An Overview of important empirical studies on Capital Structure
3. Financial Distress and Restructuring: Introduction, indicators, causes and effects
of financial distress, coping strategies, operational cutbacks, divestiture vs. asset sales.
Corporate Debt Restructuring (CDR), Reforming governance (or) Management
structures (or) Replacing management, Bankruptcy, liquidation & reorganization. Laws
about Industrial Sickness-Provisions of Indian Companies Act, 2013 and new
Insolvency and Bankruptcy Code.
4. Dividend policy and Stock Repurchases: the Irrelevance of Dividends and stock
Repurchases in Ideal Capital Market. Types of Dividends and Dividend Payment
Process. Dividends and Principle Agent Conflicts. Dividends, Taxes and Transaction
Costs. Corporate Liabilities- Alternate Debt Financing Sources, Debt Maturity
Decisions, Corporate use of Trade Credit, Bank Loans and Relationship Lending.
Information in Debt-related Events.
5. Managing Internal Equity and Seasoned Equity Offerings:
The equity management perspective, Internal capital market theory, the process of
issuing seasoned equity, determinants of underwriter spreads in SEO’s, Issues related
to SEO, staying private V/s going public. IPO process, characteristics of IPO firms and
their offerings, the post-IPO performance of stock-only IPOs, unit IPO. Underpricing
phenomenon.
4.3 Elective FM5: Derivatives
Course objectives: The students gain an insight on the basics of
derivatives, cognize the operations of Forward and Future
Contracts, comprehend the manoeuvres of Options Contracts and
trading Strategies, fathom the workings of the Valuation of options
apprehend the functioning of Commodity derivatives.
Course Outcomes: The students build the capability to apply the
basics of various derivative instruments in practical tasks, acquire
proficiency in the operations of Forward and Future Contract
hedging and valuation in the current scenario, Twigs the exercises
of Options Contracts and trading Strategies and its practical
implications, probes the operations of Valuation of options,
captures the working knowledge of Commodity derivatives.
1. Introduction to Derivatives: forwards, Futures, options, swaps,
trading mechanisms, Exchanges, Clearinghouse (structure and
operations, regulatory framework), Floor brokers, initiating trade,
Liquidating or Future position, Initial margins, Variation margins,
Types and orders, futures commission merchant.
2. Forward and Future Contracts: Forward contracts, futures
contracts, financial futures, Valuation of forward and futures prices,
Stock index futures, Valuation of stock index futures, Heading
using futures contracts, Heading using stock index futures contracts,
Index futures, Adjusting BETA of a portfolio using stock. Interest
rate futures and currency futures
3. Options Contracts and Trading Strategies: Characteristics of
options contracts, trading strategies.
4. Valuation of options – Graphic analysis of call and put values,
characteristics of option values, Models of valuation; Binomial and
Black and Scholes model. Option Greeks.
5. Commodity derivatives: Commodity futures and options,
outlines of SEBI guidelines, working of NCDX, MCX.
4.4 Elective FM6: International Financial Management
Course Objectives: Helps students to apprehend the role of
International Financial Management in Corporate Financial
Management, gain insight on the Foreign Exchange Market
structure and proceedings, achieve knowledge on the Measurement
of Exposure and risk in exchange rates of International Markets, get
acquainted with the Management of Foreign Exchange exposure
develops competence on evaluation of international investment
decision.
Course Outcomes: Demonstrates capability to understand the role
of International Financial Management in managing Corporate
finance, develops insight into Foreign Exchange Market, gets
acquainted with the Measurement of exchange rates, obtains
Exposure to risk in exchange rates transactions of International
Markets, develops an aptitude in the evaluation of international
investment decisions.
1. Role of International Financial Management in Corporate
Financial Management: Dynamics of Global Capital Flows,
India’s Balance of Payment, trends, direction and
composition.CAD (current account deficit) problems. Economic
and Monetary Union
2. Foreign Exchange Market- Introduction- Structure and
Functions- Types of transaction-spot and forward quotations-
Arbitrage –Exchange rate equations
3. Nature and Measurement of Exposure and risk classification of
Exposure and risk- transaction, translation and economic
exposure- Factors influencing exchange rate- Theories of Exchange
rate behaviour –Fisher’s Effect.
4. Management of Foreign Exchange exposure- Need for
Hedging of transaction, translation and Economic exposure-
Management of interest rate Exposure-FRA- Interest rate caps and
floors- Swaps
5. International Investment Decision –Risk Factors, country Risk,
cost and Benefits International Capital Budgeting- Evaluation
Criteria.
4.5 Elective FM 7: Corporate Taxation
Course objectives: The students develop competencies on the basics of
Income Tax, gain insight into the computation of Income from the Business
of a corporate entity, develop a vision of the computation of Income from
Capital Gains of a Company, learn visualization on the set-off and carry
forward losses of a corporate entity, develop prophecy on the Tax
Implications in Business Restructuring.
Course outcomes: Students establish mastery over the basic concepts of
Income Tax and demonstrate the ability to compute Income from the
Business of a Company with statutory compliance. Achieves computational
proficiency of Income from Capital Gains of the Company and its
exemptions, comprehends the set-off and carry forward losses treatment of a
corporate entity, upsurge knowledge on the tax collection at source and tax
deducted at source, triumphs the computational expertise of the tax
implications in business restructuring.
1. Outlines of Income Tax Act, 1961: Basic Concepts and definitions,
Incidence of Tax, Heads of Income, Exemptions and deductions.
2. Computation of Business Income: definitions, Scope, Computation of
Profits and Gains from Business or Profession, Deductions, Minimum
Alternate Tax, Tax on Distributed Profits.
3. Computation of Capital Gains: capital Asset, Transfer, Short Term and
Long Term Capital Gain, Cost Inflation Index, Exemptions.
4. Set off and Carry Forward: business Loss and Unabsorbed
Depreciation, Return of Income, Assessment, Advance Payment of Tax, Tax
Deduction or Collection at Source.
5. Tax Implications in Business Amalgamation and Restructuring
References for Elective FM 1 to 7:
 Financial Management and Policy – Van Horne
 Corporate Finance – Brealy Myers: Ross, Westfield, jaffe.
 Investments – William Sharpe and others; Bowdie and others
 Investment Management – Prasanna Chandra
 Investments – Schaum Series: Francis and Taylor
 Financial Management – Brigham and Erhardt
 Corporate Finance – Brigham and Erhardt
 Managerial Finance – Weston and Copeland
 Advanced Corporate Finance – Ogden, Jen and O’Connor
 Income Tax Act of 1961
 Income Tax Act – Malhotra; Taxman Publication; Ravikishore