Annexure to Notification No.

No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

SYLLABUS
for
Master of Finance & Control (MFC)
(w.e.f. 2012 and onwards)

Department of Business & Financial Studies

University of Kashmir
Hazratbal, Srinagar

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

Syllabi and courses of study

For

MFC Semester II
Effective from academic session-2012
Subject
Code

Name of the Subject

MFC-201

Strategic Management

70

35

30

MFC-202

Monetary Economics

70

35

MFC-203

Accounting for Decision

Making
Operations Research
Corporate Finance
Funds Management in
Commercial Banks
Security Analysis &
Portfolio Management
Comprehensive
Viva-Voce

70

MFC-204
MFC-205
MFC-206
MFC-207
MFC-208

Theory
Max

Min

Cont.
Assessment
Max
Min

Viva-voce

Project
Report
Max
Min

Max

Min

15

___

___

___

___

30

15

___

___

___

___

35

30

15

___

___

___

___

70
70
70

35
35
35

30
30
30

15
15
15

___
___
___

___
___
___

___
___
___

___
___
___

70

35

30

15

___

___

___

___

___

___

___

___

100

50

___

___

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
STRATEGIC MANAGEMENT
Course Code :MFC-201
Semester : 2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objective: The objective of this course is to improve the studentss ability to
understand the core concepts and issues relating to strategic Management and also to know
about crafting, implementing and executing business strategies in todays fast changing
business environment.
Unit I
Introduction: Need for Strategic Management, Strategy Analysis, Managerial Process of
Crafting and Executive, Strategy v/s Business Policy & Tactics, Strategy v/s Planning
Strategic Direction. Organizational Vision, Mission, Goals and Objectives; Strategic Decision
Making, Mintzbergs Modes of Strategic Decision-Making, Its Process.
Unit II
Environmental Analysis & Strategic Options: Environmental Scanning, Elements of Internal
& External Environment; Industry Analysis: Michael Porters Five Forces of Competitive
Model, Strategic Internal Factors Analysis, Approaches to SIFs, Corporate Value Chain
Analysis; Corporate Strategies: Growth Strategies, Stability Strategies, Retrenchment
Strategies & Combination Strategies.
Unit III
Strategic Choice & Implementation: Implementation Issues, Strategic Alternative & Strategic
Choice, Factors affecting Strategic Choice. Porters Generic Competitive Strategies; Business
Portfolio Analysis: BCG Growth-Share Matrix; GE Business Screen. Designing
Organizational Structure & Systems; Corporate Leadership, Role of a Strategic Leader,
Strategic Significance of Culture; Strategy-Culture Compatibility.
Unit IV
Strategy Evaluation & Control: Significance & Need of Evaluation & Control, Strategic
Control v/s Operational Control, Types of Control, Balanced Score Card: Significance, Need
& Purpose of Balanced Score Card. ABC Analysis Tool: Significance, Need & Purpose of
ABC Analysis.

Suggested Readings:
1. Alex Miller Strategic Management IRWIN/Tata McGraw Hill, Publishing Company Ltd., New Delhi.
2.
3.
4.

Charles W.L. Hill & Gareth R. Jones; Strategic Management Theory: An Integrated Approach, Houghton
Miflin Company, Princeton New Jersey, All India Publisher and Distributors, Chennai.
Thomas L. Wheelen, J. David Hunger; Strategic Management Addison Wesley, Longman Singapore Pvt.
Ltd., 6th Edition.
Azhar Kazmi; Business Policy & Strategic Management, Tata McGraw Hill, Publishing Company Ltd.,
New Delhi, Second Edition.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

5. Dess, Lumpkin & Eisner, Strategic Management- Text & Cases, Tata McGraw Hill, Publishing
Company Ltd., New Delhi.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
MONETARY ECONOMICS
Course Code :MFC-202
Semester : 2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objective: The objective of this course is to help the students in understanding the macroeconomic variables which will enable them in decision making.

Unit - I
Money-Evolution, functions and importance. Monetary Standards - Gold and Paper
Standards. Value of Money- Measurement and its Standards, Index Numbers - Classification,
Construction and difficulties in construction and its Significance.
Unit - II
Supply of Money: Concept, Constituents and determinants. Velocity of Money- Determinants
and factors influencing Velocity, Theories of Velocity of Money. Money multiplier, Quantity
theory of Money- Fishers approach and Cambridge Cash balance approach. Demand for
Money- Constituents and determinants.
Unit - III
Saving Function- Meaning and determinants. The Paradox of Thrift. Consumption FunctionMeaning, technical attributes, determinants, significance. Measures to raise propensity to
consume. Investment Function- Concept of capital and investment. Classification and
determinants. Investment multiplier. MEI and MEC. Measures to stimulate investment.
Unit - IV
National Income - Concept and Methods of estimation and deflation. Monetary Policy- Tools
of monetary policy, Targets and effectiveness, Fiscal Policy- Instruments and application.
Integration of fiscal and monetary policy. Operations of RBI, ECB and Federal Reserve of
America.

Suggested Readings:
1.
2.
3.
4.
5.

R.R.Paul: Monetary Economics, Himalaya Publishing House.

D.M.Mithani: Money and Banking, International Trade and Public Finance, Himalaya Publishing House.
Gibson, William: monetary Economics, Tata McGraw Hill.
Vaish. M.C. : Monetary Economics, Vikas Publishing House.
Seth, M.L.: Monetary Economics, Stya Prakash Publications.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
ACCOUNTING FOR DECISION MAKING
Course Code :MFC-203
Semester : 2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objective: This course is intended to help the students to understand the cost and cost &
Management Accounting Techniques for Managerial Decision making.

Unit 1
Role of accounting in managerial decision making. Financial, cost and management
accounting. Cost : Classification and determination, cost elements: material, labour and
overheads. Cost sheet.
Cost Management Systems: treatment of overheads under traditional systems, allocation and
absorption of overheads. Treatment of overheads under modern systems like activity based
costing. Measuring the cost of resource activity. Implementation of ABC.
Unit II
Marginal Costing and Management Decisions, absorption vs. marginal costing, segregation
of semi-variable costs, tools of marginal costing. Cost volume-profit relationship. Break
even analysis: methods and applications.
Differential Costing and Management Decisions: (i) make or buy (ii) optimum sale mix (iii)
selling or further processing (iv) change v/s status quo (v) shutdown or continue (vi)
exploring new markets (vii) adding or dropping a new product.
Unit III
Standard Costing: standard setting for material, labour, overheads and sales. Variance
accounting for material, labour, overheads and sales. Investigation of variances. Control and
disposition of variances. Revision of standards and variances. Social responsibility
accounting : Concept and applications of social responsibility of accounting reports in India.
Unit IV
Fund flow & cash flow analysis; Computation of funds flow, Cash flow and economic value
added analysis. Human resource accounting; Concept, objectives and significance. Human
Resource models. Human resource accounting reports.
Note: This paper shall have 60% numerical & 40% theoretical questions.

Suggested Readings:
1.
2.
3.
4.
5.
6.

Horngren, Sudem & Stratton : Introduction to Management Accounting, Pearson Education.

lynch Richard and Williamson Robert: accounting for management, Planning and Control, Tata McGraw
Hill.
Atknison, Banker, Kaplan & Young : Management Accounting, Pearson Education.
Kaplan & Atknison : Advanced management Accounting, Pearson Education.
Kishore, Ravi M. : Advanced Management Accounting: Taxman Publications.
Sharma & Gupta : Management accounting, Kalyani Publishers.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
OPERATIONS RESEARCH
Course Code :MFC-204
Semester : 2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objective: The objective of this course is to develop in students the skill to apply operations
research techniques in business decision making.

Unit I
Introduction: Concept and significance of OR; Evolution of OR; Steps in designing OR
studies; OR models; Theory of games; Decision theory: Decision rules under uncertainty and
risk; Baysian decision rule; decision trees; utility theory
Unit II
Linear Programming: Graphical method, Simples method; Duality; Sensitivity analysis;
Transportation problems, assignment models.
Unit III
Network analysis and Simulation: Introduction; application to CPM and PERT; Applications
of simulation techniques Monte Carlo Approach; Statistical quality control: Control charts
for variables and attributes; Acceptance sampling.
Unit IV
Waiting line models and statistical quality control Control charts for variables and
attributes, acceptance sampling.
Suggested Readings:
1.
2.
3.
4.

N. D. Vohra : Quantitative Techniques in Management, Tata McGraw Hill, New Delhi.

Frank S. Budnick : Principles of Operations Research for Management, Richard Irwin, Inc.
Andrew Vazsonyi & Herbert F. Spirer : Quantitative Analysis for Business, Prentice Hall Pvt. Ltd.,
New Delhi.
Billy E Gillet : Introduction to Operations Research, McGraw Hill, New Delhi.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
CORPORATE FINANCE
Course Code :MFC-205
Semester : 2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objective: This course introduces the students to the fundamentals of managerial finance
with the purpose to develop the understanding about the mathematics of finance necessary for taking
various financial decisions.

Unit I
Finance function, Goal of financial management, shareowners wealth maximization v/s
maximization of social welfare, Agency relationship conflict.
Time value of money: Simple interest and compound interest; Computation of present value
and future value; Special applications of time value of money.
Unit II
Financial Statement analysis. Nature and types of financial statements. Need for financial
analysis. Techniques of financial statement analysis- Ratio analysis and statement of changes
in financial position, DuPont chart and equation, uses and limitations of ratio analysis.
Unit III
Risk and Return; Types of risk, diversification of risk, Measurement of risk and return of a
single asset; Measurement of risk and return of a portfolio; Capital asset pricing model;
Arbitrage pricing theory. Performance Evaluation of mutual funds Sharpes Performance
measure Treyners Performance Measure Jensens Model.
Unit IV
Different types of values, features of bonds, Preferred stock and equity, Valuation of bonds,
Valuation of prepared stocks, valuation of common stock; Calculation of yields.
Cost of Capital: Meaning, Various cost concepts, Basic assumptions. Measurement of cost of
debt, Preferred stock, Equity and retained earnings. Weighted average cost of capital.
Note: This paper shall have 70% numerical & 30% theoretical questions.
Suggested Readings:
1.
2.
3.
4.
5.

Brealey Richards A. & Steward C. Myers; Corporate Finance, McGraw Hill, New York.
Block, Stanley B., Geoffrey Ahilt: Foundations of Financial Management, Richards D. Irwin Homewood,
Illinois.
Chandra Prasana : Financial Management, Tata McGraw Hill, New Delhi.
Hampton Jhon: Financial Decision Making, Prentice Hall.
Panday I. M: Financial Management, Vikas publishing House Delhi.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
FUNDS MANAGEMENT IN COMMERCIAL BANKS
Course Code :MFC-206
Semester :2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objectives: The course is intended to acquaint students with the concepts and issues and
regulations related to management of funds in commercial banks.

Unit I
Introduction to Commercial banking, Indian banking system, nature and composition of bank
balance sheet and income statement, contingent liabilities, types of deposit liabilities and loan
assets, Concept of Depositors insurance, problem of moral hazard, Need for Bank
Regulation, Central Bank and its monetary policy tools, banks as financial intermediaries,
bank credit, types, features, credit process, modes of credit delivery, legal aspects of lending.
Unit II
Bank investments, objectives, components, role of treasury, treasury investment products,
valuation of investments, Management of reserves: primary and secondary reserves, nature,
composition and purpose of reserves, factors influencing reserves; estimation and secondary
reserves. Regulatory Reserves: significance, management of CRR & SLR investments.
Liquidity management, theories of liquidity management.
Unit III
Management of capital funds in commercial banks: meaning, functions and necessity of
adequate capital funds, risk based capital standards, Basel Regulations, constituents of capital
funds, calculation of capital ratio, Asset Securitization: introduction, objectives, process of
asset securitization, cash flow in asset securitization, underlying assets: mortgage backed
securitization, (commercial); auto loan receivable securitization; future flow receivable
securitization.
Unit IV
Management of Income, asset quality and Operational Efficiency: various sources of income
and expenditure, determination of income, concept of non-performing assets (NPAs), causes
of NPAs, prudential norms regarding non-performing assets, classification of loans,
provisioning requirements, recognition of income and non-performing loans, measurement of
operational efficiency, parameters.
Note: - This paper shall have 40% numerical and 60% theoretical questions.
Suggested Readings:
1.
2.
3.
4.
5.
6.
7.
8.

Benton E. Gup & James W. Kolari: Commercial Banking, The management of risk, Wiley India Pvt Ltd,
Jinkay, Joseph F. Jr.: Commercial Banks Financial Management, Prentice Hall, New Delhi,
Mishkin Frederics S.: The Economics of Banking & Financial Markets, Harper Collins, New York,
Padmalatha Suresh & Justin Paul, Management of Banking and Financial Services, 2nd Ed, 2010, Pearson India.
Peter S. Rose & Milton H Marquis: Money & Capital Markets, McGraw-Hill International,
Shelagh Heffernan, Modern Banking in Theory and Practice, 1996, John Wiley & Sons
Srivastava, R. M. and Divya Nigam: Management of Indian Financial Institutions, 8th edition, 2008, Himalaya
Publishing House, New Delhi
Websites: www.rbi.gov.in; www.bis.org, ,

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
Course Code :MFC-207
Semester : 2nd

Max. Marks :100

Term End Exam : 70
Cont. Assessment : 30

Course Objective: The objective of this course is to help students to understand various issues in
Security Analysis & Portfolio Management.

Unit I
Investment Decisions - Concept of investment, Elements of investment-return, risk and time
elements; Objectives of investment- Investment Vs Speculation Investment Vs. GamblingTypes of Investments- Financial investments securities and derivatives, deposits, taxsheltered investments; Non-financial investment real estate, gold and other types and their
characteristics, Investment Process.
Unit II
Efficient market hypothesis (EMH), Random walk theory - Weak, Semi-strong market;
Testing of different forms of market efficiency and their significance relationship between
EMH and Fundamental analysis and Technical analysis limitations of EMH. Fundamental
Analysis- Economy analysis, industry analysis, & company analysis.
Unit III
Basic assumptions, tools of technical analysis, charting techniques, Dow theory, Elliot wave
theory, Chaos theory, Kondratev Business Cycle Theory, technical indicators of overall
market.
Unit IV
Portfolio analysis & selection, portfolio evaluation, revision of portfolio, portfolio risk &
return, Markovitz theory efficient frontier. Capital market line, security market line,
arbitrage pricing theory.
Options and their valuation; Basics of stock options; Option valuation; The Black-School
option-pricing model.
Suggested Readings:
1.
2.
3.
4.
5.
6.
7.

Amling: Fundamentals of Investment Analysis, Prentice Hall, International Edition.

Donald, E. Fisher & Ronals J. Jordon; Security Analysis & Portfolio Management, Prentice Hall, New
Delhi.
Farozzi, Franch J: Investment Management, Prentice Hall, International Edition.
Gupta, L.C: Stock Exchange Trading in India: Society for capital market research and Development,
Delhi.
Sharpe, William F, Gordon J Alexander and J.V Bailly : Investments, Prentice Hall of India, New
Delhi.
Francies J. Clark : Management of Investments, McGraw Hill, New Delhi.
Chandra, Prasanna : Investment Analysis & Portfolio management, Tata McGraw Hill Publishing
House.

Annexure to Notification No. No: F {Pres/Repet Syllabus-MFC}Acad/KU/12 Dated: 01-09-2012

MFC Semester II
Effective from academic session-2012
COMPREHENSIVE VIVA-VOCE
Course Code :MFC-208
Semester : 2nd

Max. Marks :100

Course Objective: The objective of this course is to test comprehension of students in different
courses.

In this course, an individual student shall be required to present himself for

viva-voce, before a Board of Examiners comprising concerned teachers,
which shall test his knowledge in different courses of this semester. Statute
14 of MFC statutes shall govern the evaluation of this course.