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PG Diploma Financial Management 1 Syllabus Mumbai University by munotes
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AC 26/6/15
Item no. 4.36
Post Graduate Diploma in Financial Management - PGDFM
Revised Course
(A) Ordinance and Regulations relating to PGDFM
O _______
1. A Candidate for being eligible for admission to the diploma course in Financial
Management: -
(a) Must hold a U niversity degree in any faculty
And
(b) Must be residing within India
2. Defence Service Personnel may be admitted to the course even if they are not degree holders .
R ___________
Course will be of one year duration spread over two semesters.
R ____________
a. Each Semester carrying four papers each. There shall be
University Examination of Diploma Course in Financial
Management at the end of each semester. No student shall be admitted to the examination unless he satisfies following requirement :-
b. She/he shall have submitted at -least 50% of the assignments
assigned under the course
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R __________
The tuition fees for Diploma in Financial Management shall be Rs. 12,000.
Rs. 500 for Registration and
Rs. 250 as examination fees (Total of Rs. 750)
Instructions
1. A candidate must forward his application for admission to Director IDOL on
or before the date fixed for this purpose.
2. A student who has once registered himself for the Diploma course in
Financial Management but had not appeared the said examination or has appeared and failed thereat and desires to re- appear at the subsequent
examination shall re- new his registration for the examination at least three
months prior to the date of commencement of examination. The fees for renewal of registration shall be: -
3. IDOL will keep record of each student registered for the Diploma courses in Financial Management in regard to assignments submitted by him /her in
each of the subjects and the number of marks obtained thereat.
4. A candidate will be examined in the following subjects of the Diploma
course in Financial Management at the end of each Semester :-
Semester -I
Semester -II
1.1 Accounting System
2.1 Taxation (Direct & Indirect)
1.2 Cost & Management Accounting
2.2 Financial Management
1.3 Financial Markets
2.3 International Finance
1.4 Financial Statement Analysis
2.4 Investment Management
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(B) Detailed Syllabus of the Course is as follows: -
Semester – I
1.1 Accounting System
Unit Syllabus Approx.
Weight
I
Accounting - The Language of Business. Accounting: An
Information System. Users of Accounting information,
Branches of Accounting. Financial Accounting Concepts
and Conventions. Double entry System and accounting
equations .
25%
II Generally Accepted Accounting Principles, basics of Indian
Accounting Standard, Indian Accounting Standard Vs US
GAAP, Introduction to IFRS.
25%
III
Capital and Revenue Expenditure – Deferred Revenu e
Expenditure – Capital and Revenue Receipts. Depreciation
– Definition – Causes – Necessity of providing for
depreciation – Methods of Calculating Depreciation:
Straight Line Method and Written Down Value Method –
Problems 25%
IV
Preparation Basic Accounting Records - - Preparation of
Journal, Ledger and Trial Balance - Preparation of Final
Accounts: Trading, Profit and Loss Account and Balance
Sheet. Presentation of financial statements Revised
Schedule VI. 25%
Reference Books-
1. N. Ramchandran and RamkumarKakani, Financial Accounting for Management, New Delhi,Tata -Mac Graw -Hill, 2nd Edition, 2008.
2.Narayanaswamy – Financial Accounting: A managerial perspective (2nd Edn) –
PHI.
3. Paresh Shah, Basic Financial Accounting for Management, New Delhi, Oxford
UniversityPress, 2008.
4. P.C. Tulsian, Financial Accounting, Pearson, 2008 5. S.N. Maheshwari, Introduction to Accountancy, New Delhi, Vikas Publishing House, 10
thEdition, 2009
1.2 Cost & Management Accounting
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Unit Syllabus Weigh t
in Paper
I
Cost Accounting - Objectives of costing system, cost
concepts and cost classification.Management Accounting -
Nature & scope, role of management accounting, tool and
techniques of management accounting. Distinction
between financial accounting, cost accounting and
management accounting
25%
II Methods of Costing - Unit costing, job & batch cost, contract
costing and process costing.Classification of costs.
Element of costs - Material cost, labour cost and
overheads. 25%
III
Breakeven Analysis - Cost Volume Profit Relationship -
Applications of Marginal Costing
Techniques: Fixing Selling Price, Make of Buy, Accepting a
foreign order, Deciding sales mix.
25%
IV
Budgetary control & Variance analysis - Preparation of
various types of budgets, advantages & limitations,
budgetary control report to management.
Meaning and uses of standard costing; procedure of
setting standards; variance analysis, one wayand two way
analysis of variance; overall cost variance; material
variance; labour variance andoverhead variance 25%
Reference Books-
1.Horngren, Foster &Datar - Cost Accounting: A Managerial Emphasis (Pearson)
2.Pillai&Bhagavathi –Cost Accounting (S.Chand)
3.M.N. Arora – Cost and Management Accounting Theory and Problems (HPH)
1.3 Financial Markets
Unit Syllabus Weight
in
Paper
I Financial system – Structure of financial system – Indian
financial system – Financial Development – Savings and
investment – Financial Integration – Regulation and De-
regulation – Regulatory Institutions 25 %
II Capital Markets –
Industrial securities, Primary markets, Secondary markets, Stock exchanges, Stock market index – Buying and selling
securities on the stock exchanges – Stock exchange terms 25%
III Money Market –
Call money markets, - Commercial Bill market, - Markets for
commercial papers and Certificate of deposits, - The 25%
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discount market, Government securities market, - treasury
bills.
IV Foreign exchange market
Nature, Organization and Participants, Exchange rates,
devaluation and depreciation, Currency convertibility.
Market for futures, Options and other Derivatives 25 %
Reference Books:
1. Financial Markets and Institutions - L.M. Bhole
2. Financial Markets – Dr. P. K. Bandgar
1.4 Financial Statement Analysis
Unit Syllabus Weight
in Paper
I
Basics of Balance Sheet and P rofit & Loss Account
statement
Analysis of Financial Statements through Trend Analysis, Common Size Statements
25%
II Introduction to Funds Flow Statement, Calculating
Funds from Operation, Analysis of Funds flow Statement, Importance of Funds Flow Analysis
Introduction to Cash Flow Statement, Calculating Operating/Financing and Investing Cash Flows,
Analysis of Cash flow Statement, Importance of
Cash Flow Analysis
25%
III
Introduction to Ratio Analysis, Importance of Ratio
Analysis, Understanding Liquidity/Leverage & Coverage/Turnover/Expense and Profitability ratios, using ratios to analyse the financial performance of a company, Introduction to DuPont Analysis
25%
IV
Understanding Annual Report of a Company;
Director’s Report, Management Discussion and
Analysis, Notes to Account
Basic computation of Free Cash Flows for Equity
25%
Reference Books:
1. Financial Management - Prasanna Chandra
2. Financial Management – I.M. Pandey
3. Financial Management – Khan & Jain
4. Corporate Finance – Brealey&Mayers
5. Techniques of Financial Analysis – Erich A. Helfert (Tata McGraw Hill)
6. Understanding Financial Statements – Interpretation and Analysis – A. A.
Gopalakrishnan
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Semester – II
2.1 Taxation (Direct & Indirect)
Unit Syllabus Weight
in Paper
I
Important definitions in the Income -tax Act, 1961 and
Concepts of previous year and assessment year
Basis of charge; rates of taxes applicable for different types of assesses
Residential status and scope of total income; Income deemed t o be received / deemed to accrue or arise in
India
Incomes which do not form part of total income 25%
II Heads of income and the provisions governing
computation of income for individual and business
Aggregation of income; set -off or carry forward and
set-off of losses
Deductions from gross total income
Computation of total income and tax payable; rebates and reliefs
25%
III Service tax – concepts and general principles
Charge of service tax and taxable services
Valuation of taxable services
Exemptions and Abatements 25%
IV VAT – concepts and general principles
Calculation of VAT Liability including input Tax
Credits
Small Dealers and Composition Scheme
VAT Procedures 25%
SUGGESTED READINGS
1 Bare Acts
2 Judgements and pronouncements by statutory authorities
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2.2 Financial Management
Unit Syllabus Weight in
Paper
I Indian Financial System
- Significance of the Financial System
- Components of Financial System
- Financial Intermediaries
- Regulatory System
Time Value of Money
25%
II Theory of capital Structure
Cost of Capital - Leverages 25%
III Working Capital Management
-Inventory Management - Receivables
Management - Cash Management (Budget) 25%
IV Capital Budgeting
Nature and P rinciples – Identifying
Relevant Cash Flows – Evaluation
Techniques
25%
Reference Books -
1. Financial Management - Prasanna Chandra
2. Financial Management – I.M. Pandey
3. Financial Management – Khan & Jain
4. Financial Management – Sihler, Crawford and Davis
5. Advanced Financial Management – Dr. P.K. Bandgar
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2.3 International Finance
Unit Syllabus Weight in
Paper
I Introduction to the history of International Monetary
System; Gold Standard, Bretton Woods System,
Collapse of Bretton Wood System, Smithso nian
Agreement
Understanding Modern Exchange rate Management
Systems; Fixed Peg, Crawling Peg, Peg with Bands,
Currency Board, Managed Float, Independent Float
Introduction to Eurocurrency Markets
Introduction to FEMA
25%
II Introduction to Factors the impacting Exchange Rate:
Inflation, Interest Rate, Demand and Supply of Foreign Currency, economic environment etc.
Purchasing Power Parity Theory
Interest Rate Parity Theory 25%
III Introduction to modern Foreign Exchange markets,
Structure of Indian Forex Market – Authorised Dealer –
Money Changer – Dealing Room operations – Role of
FEDAI
Types of deals in Forex Market, Foreign Exchange
Quotes, Bid Rate/Ask Rate, Calculation of Forward rate quote
Foreign Exchange arithmet ic; Basic problems on
computation of Inverse quote, one point, two point and three point arbitrage
25%
IV Introduction to International Debt Market, Various
categories of Instruments in International Debt Market;
International Bonds, Syndicate Loans, Ext ernal
Commercial Borrowing, Buyers Credit & Suppliers Credit, Process of Issuance of Bonds
Introduction to International Equity Market and Instruments - GDR/ADR/IDR, Process of Issuance of
Depositary Receipts
Participatory Notes in Indian Forex Market
Introduction to concept of Forex Derivatives; Forward,
Futures, Options and Interest Rate Swap and Currency Swap
25%
Reference Books;
1. International Finance – P.G. Apte
2. Foreign Exchange Management - A.V. Rajwade
3. Fundamentals of International Financial Management –S. Kevin (Prentice Hall
India)
4. Multinational Financial Management – Madhu Vij
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5. International Finance – Avdhani
2.3 Investment Management
Unit Syllabus Weight
in Paper
I Investment management: Objective, investment
opportunities, and philosophy of individual &
institutional investors
Fundamental analysis: Concept & significance of
economic analysis
Industry analysis: introduction, need for industry
analysis, alternative classification of industry
Industry lifecycle analysis, economic factors &
industry analysis, SWOT analysis for industries 25%
II Nature and style of management and its impact on
Company Value
Technical analysis: Introduction to Technical
Analysis, different Charting techniques
Technical analysis: DOW theory, Different technical
indicators - volume indicators, market sentiment
indicators, confidence indicators
Efficient market theory random walk: weak form,
semi -strong, strong form of market. Empirical tests.
Comparison of random walk
25%
III Portfolio theory, selection, risk & return, efficient set
of portfolios, optimum portfolio
Capital Asset Pricing theory (CAPM), capital market line, security market line
Technical analysis: DOW theory, Different technical indicators -
volume indicators, market sentiment
indicators, confidenc e indicators
Efficient market theory random walk: weak form,
semi -strong, strong form of market. Empirical tests.
Comparison of random walk 25%
IV Concept of futures, characteristics of future contract,
its types
Concept of Options, option trading, option contracts
settlement
Pricing of option futures
Difference between future, options, forwards & badla
contracts 25%
SUGGESTED READINGS
1 Investment Management, V K Bhalla, S Chand Publications
2 Investment Analysis & Portfolio Management, P Chandra, Tata McGraw -Hill
3 Options, Futures & Other Derivatives, John C Hull, Pearson Prentice Hall
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(C) Suggested Paper Pattern:
Total Questions in Paper will be 4 (four) with Option as indicated below in
paper Pattern
All Question will be compulsory
Paper patter being;
Q1. (a) 7 marks (from Unit I)
Q1. (b) 8 Marks (from Unit I)
OR
Q1. (a) 7 marks (from Unit I)
Q1. (b) 8 Marks (from Unit I)
Q2. (a) 7 marks (from Unit II)
Q2. (b) 8 Marks (from Unit I)I
OR
Q2. (a) 7 marks (from Unit II)
Q2. (b) 8 Marks (from Unit II)
Q3. (a) 7 marks (from Unit III)
Q3. (b) 8 Marks (from Unit III)
OR
Q3. (a) 7 marks (from Unit III)
Q3. (b) 8 Marks (from Unit III)
Q4. (a) 7 marks (from Unit IV)
Q4. (b) 8 Marks (from Unit IV)
OR
Q4. (a) 7 marks (from Unit IV)
Q4. (b) 8 Marks (from Unit IV)
[If required Paper setter may include three sub questions (a), (b) and (c) of five
marks each with option as indicated above instead of S ub ques tions (a) and (b) as
indicated in the suggested paper pattern]
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