SEMESTER - II

COMMUNICATION SKILLS

I. Concept of communication :
Definition, Need & Importance of Communication, Process of Communication,
Characteristics of Effective Communication, Methods & Modes of
Communications.

II. Reading :
Reading with fluency & speed, Ways of reading, Skimming, Scanning, Extensive
reading, identifying, inferring, Interpreting, Collecting & Re-ordering relevant
information from text vocabulary, Grammar Language Structure & Punctuation.

III. Writing :
Organised presentation of matter (Factual/Informative, Descriptive or
Persuasive)
A. Editing, summarizing, considering, (practice to be given through
comprehension passages, summarization, book review, note-making précis
writing from literary texts, business & financial journals, magazines & news
papers. Familiarity & acquaintance with business & financial terms should
be encouraged.)
B. Correspondence in different registers :-
- Theory of Letter Writing
- 7 Cs of Letter Writing
- Revision of structure of forms of layout
- Appearance of B.L
- Use of Computer for Letter Writing.
Official a) Enquiries / Complaints & Replies, Representations
b) Letters of applications for jobs, Inter-departmental Memos
c) Letters to Bank
d) Request for loans, Overdraft, Current A/c, Credit Facility, Status Enquiry,
Letters related to Share Market, Capital Market.
Semi Official - Letters to Editors

Social Correspondence :

e) Invitations, Congratulations, Condolences.

f) Appeal e.g. blood donations, environmental and other civic issues.

IV. Speaking / Listening :

Fluency, pronouncing, voice modulation, tone pitch, sensitivity to audience.
How to listen effectively - listening comprehension meaning & sequence of
thought
 (practice may be given through audio-video methods) passages/exercises to be
set to highlight the objective of communications with special emphasis on ‘You’
attitude.

V. Barriers to Communication :
Types of Barriers : Physical, Mechanical, Psychological, Linguistic, Socio-
Cultural,
Barriers to Listening. How to overcome barriers (to be taught along with case
studies, assignments, tasks, field visit etc.)

VI. Group Communication :

A) Written aspects :
1. Drafting Notice, Agenda, resolutions, Minutes of Meetings.
2. Drafting of Reports structure of Business Report, Various Types of Reports-
Following reports to be studied - Routine, Investigative, Projects, Director’s
Report etc.
B) Oral aspects :
1. Interviews
2. Group Discussions
3. Presentations
4. Speeches : Social/Corporate Situations
SEMESTER - II

ENVIRONMENT OF FINANCIAL SYSTEM

UNIT I
Financial System :
Meaning, Significance & Components, Composition of Indian Financial Systems, RBI -
Organisation, Management, Functions - Credit Creation & Credit Control, Monetary Policy.

UNIT II
Commercial Banks :
Meaning, Functions ; Management & Investments, Policies of Commercial Banks, Recent
trend in Indian Commercial Banks. All India Development Banks : Interest Rate Structure :
Determinants of interest rate structure, Differential rate structure : Recent charges in
interest rate structure, State level Development Banks : State Financial Corporation;
Development banks in Industry Financing.

UNIT III
Insurance Organisations :
Objective & Functions, various schemes of LIC & GIC, Unit Trust of India : Objective &
Functions, various schemes of UTI & Role of UTI in Industrial Financing

UNIT IV
Financial Markets :
Indian Money Market, Indian capital Market
SEMESTER - II

MACRO ECONOMICS

MODULE I
MONEY & RELATED ISSUES
 Introduction to Money-Functions-Demands & Supply of Money
 IS-LM Curves
 Inflation - Causes & Effects
 Philips Curve

MODULE II
I (A) ROLE OF FUNCTION OF BANKING
 Commercial Banks - Functions-Creation (multiple expansion of credit)
 Evolution of Central Banks- Functions (in detail)
 Monetary Policy

II (B) BANKING SECTOR REFORM

 Banking Sector Reforms- Evaluation
 Financial Liberalisation - Universal Banking, Private Banking, Foreign Banks
 Banks run & Systematic fragility

MODULE III
FINANCIAL & CAPITAL MARKETS
 Structure of the money market in India - Features, Limitations & Measures to
strengthen the market
 Capital Market - Share Market in India - Function of the Stock Exchange
 SEBI - Need & Role
 Financial Soundness - credit rate agencies
 New Financial instruments of the Capital Market (Zero coupon bonds, Warrants,
Secured premium notes, Stock invest, Swaps, Options, Derivatives deep discount
bonds)

MODULE IV
FOREIGN CAPITAL - POST GLOBALISATION SCENARIO
 Balance of Payment - Structure
 Convertibility - Pros & Cons of Capital account convertibility
 Capital Movements - Direct & Portfolio Investments - MNC’s & FDI
 Impact of Foreign Capital
SEMESTER - II

MANAGEMENT ACCOUNTING

I. Introducing to Financial Statements Analysis :

a) Meaning, Nature, Uses, Scope & Function of Management Accounting.
Role of Management Accounting in decision making, Tools & Techniques of
Management Accounting.
b) Financial Statements Analysis :
1) Meaning & Types of Financial Statements, Limitations of Financial
Statements, Objectives of Financial Statements
2) Interpretation of Financial Statements, Inter - Firm & Intra - Firm.
Comparison with the help of ratio, comparative, commonsize & trnd
analysis
3) Fund Flow, Cash Flow.

II. Working Capital Management :

a) Operations cycle, Need & Importance, Monitoring & Control, Estimation &
Calculation W.C. for trading & other.
b) Management of Current Assets : Management of Cash & Marketing Securities,
Receivables.

III. a) Long Term Funds Management :

Sources, Capital Investment Decisions, Risk analysis in Capital Budgeting
b) Capital Structure :
Theories & Determinations

IV. a) Operating & Financial Leverage

b) Concept in Valuation :
The time of Money, P.V. IPR of yield, Bond Returns, Returns from Stock
Investments, Dividend modules & Measuring Risks-Standard Deviation
SEMESTER - II

PRINCIPLES OF BUSINESS MANAGEMENT

UNIT I
Management - Definitions - Objectives - Importance & Nature - Management - Arts, Science
or Profession. Levels of Management & Managerial Skills.

UNIT II
Functions of Management
a) Planning - Meaning, Nature, Importance-Types of Plans, Steps in Planning.
b) Organizing - Meaning, Process of Organizing, Span of Management, Authority &
Responsibility, Delegation of Authority.
c) Controlling - Meaning, Steps, Types of Control, Feed Forward Control, concurrent
Control, Feedback Control, Contemporary issues in Control.
d) Staffing - Meaning, Nature & Purpose - Selection training & Performance appraisal.
e) Co-ordination - Need Techniques of Co-ordination, Difficulty of Co-ordination.
f) Motivation - Definition - Motivation, & Motivators.
Self Motivations, the need/want satisfaction chain, motivational techniques : Financial
& non Financial incentives, Theories of Motivation - Hierarchy of need Theory; Mc
Gregor’s theory X & Y, Herzberg’s Two factor theory, Theory Z by Ouchi.

UNIT III
Development of Management thought - Scientific management - Frederick W.Taylor
Modern Operational Management thought - Henry Fayol
Behavioral approach - Elton Mayo
System Approach - Chester Barnard
Contingency Approach

UNIT IV
Organization Structures
Roles & Functions of Manager
Roles of Values & Ethics in Management.
SEMESTER - II

STATISTICAL APPLICATION
UNIT I
TESTING OF HYPOTHESIS
Concepts of a statistical population and sample form a population, Primary data, Secondary
data sample surveys, Concept of Hypothesis, Testing of Hypothesis, Null & Alternative
Hypothesis, Types of Error, (Consumer & Producers Risk), Level of Significance.
Large Sample Tests : Hypothesis testing for proportion & Means of single & two sample test
Chi-Square test of goodness of fit (with special reference to Finance)

UNIT II
LINEAR PROGRAMMING PROBLEM
Formulation of Linear Programming Problems (LPP), Graphic solution to LPP, Cases of
unique & multiple optimal solutions, unbounded solutions & infeasibility & redundant
constraints.
Solution to LPP using simple method - maximization & minimization cases. Shadow prices
of the resources & the ranges of their validity. Identification of unique & multiple optimal
solutions, unbounded solution, infeasibility & degeneracy.

UNIT III
APPLICATION OF STATISTICS IN FINANCE I
Rate of Interest - Nominal, Effective - and their inter-relationships, Compounding &
Discounting a sum using different types of Rates. Types of Annuities, like immediate, due,
deferred, perpetual, and their future & present value using different types of rates of
interest, PV, NPV and IRR Depreciation of asssets. Valuation of simple loans & debentures.
Sinking Funds (General annuities to be excluded).

UNIT IV
APPLICATION OF STATISTICS IN FINANCE II
Network Analysis : PERT, CPM (Without crashing)
Modern Portfolio Theory : Markowitz Theory, Sharpe’s Theory & randon :
Walk Theory.
Risk Analysis : Measures of Risk & Performance : Range, Variance, Standard
Deviation, Expected value & Beta.
Measures of Risks related to portfolio : Covariance & Correlation
Return on security & Market Returns.