SIVA SIVANI INSTITUTE OF MANAGEMENT

MANAGEMENT OF FINANCIAL INSTITUTIONS

COURSE: PGDM-BIFAAS DEPT: FINANCECODE: B 241 TERM: IVCREDITS: 3 BATCH:

Objective of the Module : The main objective of this course is to make the student well versed with the management functions of the administrative office of Financial Institutions with in the guidelines provided by concerned regulatory authority.

Value Addition: At the end of the course, the student can comfortable work in the head office of any financial Institutions and can work for corporate stragies

CONTENTS:

UNIT-IIntroduction: Overview of Insurance Institutions, Theory of the Firm: Application to Insurance Companies. Agency Problems- Financial Intermediation - Banks as Financial Intermediaries - Mutual Funds - Other Intermediaries -Financial Intermediation and Impact on the Economy- Risks of Financial Intermediation.

UNIT-IICash Management and Demand Forecasting in ATMs - Cash Demand Forecasting - ATM Post and Pre installation Activities- Innovations in Products and Services - Capital Adequacy -Prudential Norms on Bank Capital Adequacy.

UNIT-IIIFinancial Management and Analysis. - Capital Management - Capital and Risk of Insolvency -Evaluating Capital Needs - Process of Capital Planning - 'Cash Flow Analysis - InvestmentManagement - Importance of Investment Performance. - Establishing. Investment Policies - LifeInsurer Investment Risk - Credit Risk and Loan Losses in Banks - Credit Derivatives - BaselCommittee.

UNIT-IVIndustrial Organization of Financial Institutions - Public Sector and Private Sector - Banks & Insurance Companies - Insurance and Government - Purpose of Government Intervention into Markets. Theories of Regulation. Efficacy of State Regulation. - Areas of State Regulation - Mergers and Acquisitions in the Banking Sector.

UNIT-V Case studies

Recommended Book - "R M Srivatasava & Divya Nigam", Management of Indian financial institutions, Himalaya publications, Mumbai, 2009

Further Reference:

1. Saunders Anthony, " Financial Institutions Management", TMH, New Delhi, 2007.2. Justin Paul & Padmalatha Suresh, " Management of Banking and Financial Services", Pearson

Education, New Delhi, 2007.

SIVA SIVANI INSTITUTE OF MANAGEMENT

INTERNATIONAL FINANCIAL MANAGEMENT

COURSE: PGDM BIFAAS DEPT: FINANCECOURSE CODE: B 242 TERM: IVCREDIT: 3 BATCH:

Objective of the Module: This course aims at giving a broad understanding of what International Finance, what are the factors that can affect the financial results of a firm doing business internationally and what can the firm do to diminish its exposure to these factors.

Value Addition: At the end of the course students should be in a position to understand-• The overall international financial markets and major factors in the international

financial markets.• The determinants of exchange rates and the impact of exchange rates on the

profitability of an MNC• Should be able to compare different methods to in order to protect from the

exposure and choose the best one accordingly.

CONTENTS

UNIT-IGlobalization and Multinational Firm- Process of expanding abroad- Different types ofRisks - Emergence of Global Financial Markets- International Monetary System - Bimetallism- Classic Gold Standard- Interwar Period- Bretton Woods System – The Flexible Exchange Rate Regime- Current Exchange Rate Regime- European Monetary System.

UNIT-IIBalance of Payments- The Current Account- The Capital Account- Statistical Discrepancy- Official Reserve Account- Balance of Payments Trends in Major Countries- The Foreign Exchange Market- Participants- The Spot Market- The Forward Market- Futures and Options Market- International Parity Relationship- Interest Rate Parity - Purchasing Parity- The Fisher Effect.

UNIT - IIIForeign Exchange Exposure and Management- Types of Exposure- Measuring and Managing Operating Exposure - Measuring and Managing Transaction Exposure-Measuring and Managing Translation Exposure-

UNIT - IVFinancial Management of Multinational Firm- FDI- Cross Border Acquisitions- International Capital Structure and Cost of Capital- Cost of Capital in segments versus Integrated Market- CAPM and Cross Listings- International Capital Budgeting

UNIT-VMultinational Cash Management - International Tax Environment - Objective of Taxation- Types of Taxation- Worldwide Taxation- Corporate Governance around the World- Governance of Public Corporations- The Agency Problem

Recommended Book - Eun/ Resnick, 'International Financial Management’, Third Edition, Tata McGrawhill Publication, Delhi, 2006

Further Reference:l. A.K. Seth,' International Financial Management', Galgotia Publishing Company, New

Delhi, 2006 2. Alan C Shapiro, 'Multinational Financial Management' 8th Edition, Willey India

Edition, 20083. Iyan H Giddy, ' International Financial Management' 4. Madhu Vij, ' International Financial Management', Second Edition, Excel Books, new

Delhi, 2006.5.Maurice D. Levi, 'International Financial Management' Fifth Edition, Imported

Edition, 20096.Prakash G Apte, ' International Financial Management' Fourth Edition, Tata

Mc Graw hill Publishing Ltd. , New Delhi, 2007.7. Vyutakesh Sharan, ' International Financial Management', Fourth Edition, Prentice

Hall of India Pvt. Ltd., New Delhi, 2007.

SIVA SIVANI INSTITUTE OF MANAGEMENT Treasury

Treasury management in Banks

SYLLABUS: PGDM-BIFAAS DEPT: FINANCECOURSE CODE: B243 TERM: IVCREDITS: 3 _______________________________________________ BATCH: __________

Objective of the module: Bankers face regular challenges in the light of market based approach of banking and intense competition in banking and they need to develop their competence in all upcoming areas and treasury is one such area which is considered as a profit-centre of banks. Treasurers are required to become increasingly adept at managing the products, risk and profit from

Value Addition: This course is designed to equip the students with skills to understand treasury function as an integral part of bank management, to gain in-depth knowledge of Risk Analysis and Risk Control and discuss the contemporary banking practices in the Indian context.

UNIT -IFinancial Markets - Money Markets -Fixed Income Securities - Other Capital Market Instruments - Forex Markets - Derivatives Market - Recap of Time Value of Money -Introduction to Investment & Treasury Management.

UNIT - IITreasury Operations - The Global Scenario -Scope and Functions of Treasury Management -Objectivities of Treasury & Organizational Structure - Nature of Treasury Assets & Liabilities -Asset / Liability Management - ALCO.

UNIT-IIIIntegrated Treasury - Cost Center - Profit Center -Risk Analysis and Risk Control - Interest Rate Risk - Value at Risk (VaR) - Forex (Market) Risk - Risk Management Process - Measures for Identifying and Controlling Risks.

UNIT- IVExchange Rate Mechanism - Factors Influencing Exchange Rates - Forex Valuation -Regulations, Supervision and Compliance of Treasury Operations. - Bond Dynamics Accounting -Valuations - Settlements and Custodians.

UNIT- VProblems and Case studies

Recommended Book - Theory and Practice of Treasury and Risk Management in Banks - IIBF, Taxman Publications

Further Reference:

1) Economic Times.2) Business Line.3) Financial websites.

SIVA SIVANI INSTITUTE OF MANAGEMENT

ACTURIAL PRINCIPLES AND PRACTICES

SYLLABUS: PGDM - BIFAAS DEPT : FINANCECOURSE CODE: B244 TERM : IVCREDITS: 3 BATCH :

Objectives of the Module: This module is designed with a specific objective of providing insight into Life insurance business and its relationship to Actuarial science. The module also focuses on the issues with respect Mortality table construction, Probability, Pricing and Valuations.

Value Addition: At the end of this module student will be able to understand and evaluate the operational issues of Actuarial science in Life Insurance. The student will be able to understand various aspects that are integrated in Life insurance products & valuations of thy business there in. Further, the student will be able to get knowledge on Life insurance functionalities and its relationship to Actuarial profession.

CONTENTS:

UNIT -1Introduction to Actuarial profession-Basic methodology of setting assumptions-Productdesign-History of Actuarial Science-Demographics and their relationship to product designing.

Concept of Interest - history of compound interest rate theory- compound interest rate tables-present value- accumulated value -Nominal and effective rate of interest-varying interest rates.

UNIT -IIAnnuities -Deferred annuity certain-Perpetuity-Deferred perpetuity- Annuities with: frequency different from that with which interest is convertible-Varying rates of interest-Redemption of loan-Average Interest yield on the life fund.

Probability-classical definition-Properties of probability-Limitations of classical definition-Relative frequency-Additional theorem of probability-Conditional Probability-Multiplication theorem.

UNIT-IIIMortality- tables of Mortality- Select and Ultimate tables-Stages involved in construction ofMortality tables.Pricing-Basic elements of computation of Life insurance premium-Premium calculation-Level annual Premium-Net premium-Formulae for net premium-commutation functions-

Expected present value calculation of Life Annuities and Temporary annuities-Calculation of net premium- Office premium-net premium for annuity policies-Cash flow approach for Pricing-Applications of cash flow projections-Applications of pricing-Comparison of Formula approach and cash flow approach for pricing.

UNIT-IVValuation of Life insurance policies-Policy valuation-Types of policy provisions-Gross premium valuation-Net premium valuation-Consistency between Assets and Liability valuation-Surrender value calculation- Calculation of paid up sum assured for traditional Policies-Alterations to policies-Unit linked contracts-IRDA guidelines-Dynamic solvency-Application of valuation methods-Goodwill and appraisal value.

UNIT - VIntroduction to Surplus-Sources of surplus-Approaches to distribution of surplus-Increase inBenefits Approach-Terminal bonus-Revalorization method-contribution method.

Recommended Book - Elements of Actuarial Science. K C Misra and C S Kumar., NIA., CENGAGE Learning.

Further reference:

1. Statistics-IC-82, III publication.2. History of Actuarial Profession - Reproduced from the encyclopedia of Actuarial

Science. John Wiley & Sons Ltd., 20043. An estimate of-the degrees of the Mortality of Mankind, drawn from curious

tables of the births and funerals of the city of Breslau; with an attempt to ascertain the price of annuities upon lives: By Mr. E. Halley.

4. Defensive Pricing - A presentation from 8th Annual Product development Actuary Symposium held May'2008.

5. A primer on advance Pricing topics - A presentation from 8 th Annual Product development Actuary Symposium held May'2008.

6. Protection Products / SGUL- A presentation from- & Annual Product development, Actuary Symposium held May'2008.7. .'Life table for the total population: USA, 2003. - National vital Statistics reports VoL"

54, No. 14, April 19,2006.8. The changing face and pace of Mortality- A presentation from 8 th Annual Product

development Actuary Symposium held May'2008.9. Actuarial Mathematics and Life-Table Statistics -. By Eric V. Slud, Mathematics Department, University of Maryland, College Park, 2006

SIVA SIVANI INSTITUTE OF MANAGEMENT

STRATEGIC FINANCIAL MANAGEMENT

COURSE: PGDM - BIFAAS DEPT: FINANCECOURSE CODE: B245 TERM: IVCREDITS: 3 BATCH:

Objective of the Module: To familiarize the students with the financial implications of corporate strategies on investment, financing and dividend policy decisions. Strategic Alliances, consolidated, Merges & Acquisition is a regular feature in the news paper reporting. Strategic Financial Management refers to both the financial implications of corporate strategy and the strategic management of finances. The corporate strategies of cost leadership differentiation etc. and the financial strategies to be devised by a finance manager and dividend policy decision. It also focuses on the strategic approach when company adopts merger and. takeover strategy and the financial implications of the corporate mergers and acquisions, and the financial strategies to be devised for corporate restructuring.

Value Addition: At the end of this module students are equipped with an in -depth knowledge of methods and techniques of Strategic Financial Management for developing their skills and ability to enable them to:(a) Evaluate the alternative sources and use of finance for maximizing profitability

and effectiveness.(b) Select and apply the most suitable financial management techniques for taking

appropriate strategic financial management decisions.

CONTENTS:

UNIT- IIntroduction to Strategic Financial ManagementIntroduction, Strategy and Strategist, The 'Nine References' for Strategic Financial Management, Strategic Investigation of Growth or Profit - Leakages (A Qualitative Assessment). Conceptual Framework of SFM - Value Chain Analysis, Strategic Business Units (SBU's) Cost - Benefit Analysis (CBA), Life Cycle Costing, Activity Based Costing (ABC), Economic Value Added (EVA)

UNIT-IIApplications of Strategic Financial ManagementProject selection under Capital Rationing - Inflation and Capital Budgeting, Description and Measurement of risk, Techniques of risk analysis - various risk evaluation approaches, Decision Tree Analysis - EVA vs MVA - Real Options- valuation of real options - Investment timing etc.

UNIT-IIIFinancial RestructuringFinancial Aspects of Corporate Restructuring - Meaning, scope, symptoms (Operational/strategic/ financial/market, economy, global), Financial Aspects, Restructuring through Mergers & Acquisition - Types, factors, reasons, legal and taxation aspects etc

UNIT - IVValuation of a Business EnterpriseThe basic valuation in terms of different concepts of value - book value, market value, intrinsic / economic value, Realizable value vs. Replacement cost etc., The major approaches to valuation of business - Asset - Based, Earnings- Based, Market - Value and Fair - Value, Brand valuation methods, financial aspects, Brand life cycle.

UNIT - VInnovative Financial EngineeringFinancial Management of Small and Medium Enterprises Sector (SME) – Financial Management in Sick Units - Definition - Causes - Symptoms - Prediction of Sickness (like Z score technique) - Revival of a sick unit - Turnaround Stories- Innovative Financial Engineering - Meaning - Holistic Approach - Benchmarking - Fund Raising Instruments - Fund Deployment Strategies.

Recommended Book - (a) Jakhotiya .G.P. "Strategic Financial Management", Vikas Publishing House Pvt Ltd, New Delhi, (b) Khan & Jain, "Financial Management- Text & Cases", TMH Publishing co, New Delhi.

Further Reference:

1. Financial Management, Prasanna Chandra, TMH Publishing Co, New Delhi2. Principles of Corporate Finance, Richard A Bailey, TMH Publishing co, New Delhi3. Managerial Finance, Gitman, 11th edition, Pearson Education4. Corporate Finance - Theory and Practice, Viswananfh, Response Books, Sage

Publications.5. Financial Management, I.M.Pandey, Vikas Publishing

SIVA SIVAM INSTITUTE OF MANAGEMENT

WEALTH MANAGEMENT AND BEHAVIORAL FINANCE

Course : PGDM - BIFAAS DEPT: FINANCECourse Code : B246 TERM: IVCredits:3 BATCH:

Objectives of the module: The course is designed with an objective that it should give a comprehensive understanding about wealth management practices, tools and techniques, evaluating various investment opportunities , asset allocation and client profiling and planning according to the needs of the client.

Value Addition: The course will give the student an overall view of Wealth Management, need for Wealth Management. It also gives the student to understand various techniques of Wealth Management. It gives exposure and understanding various financial products available, like Shares, Bonds, Mutual Funds, Insurance, Hedge Funds etc. The course also helps the student to learn the scope of investing in other traditional sources like Gold, Real Estates, and Insurance etc. The will get an opportunity to learn "Retirement Planning" and as well as "Estate Planning", and "Asset Management".

The course also helps the student to understand the "Behavior" of the investors in taking investment decisions, which can not be predicted by technical and fundamental analysis.

CONTENTS:

UNIT-IOver view of Wealth Management & Basics of Financial PlanningDefine Wealth Management, Understanding Wealth Management, Wealth Management Process, and Phases in Wealth Management Process, Wealth Management Market in India - Case-let - Wealth Management (Dun and Bradstreet) - Page no's 1 to 13 Concepts of Money Value, Net Worth and simple and Compound Interest - Case-lets Basics of Personal Financial Planning (Insurance Education Series) - Page no's 11-5

Client Goals and ConstraintsClient Profiling, Goal Setting, Types of Goals, Goal Prioritization, Time Dimension, Data Gathering, Constraints - Risk Tolerance QuestionnaireWealth Management (Dun and Bradstreet) - Page no's 14 to 33 and Basics of Personal Financial Planning (Insurance Education Series) - Page no's 194-207

Financial Statement analysis and Ratios - Field Work (Preparation of Personal Financial Statements)Importance of Personal Financial Statements, Analysis of Financial Statements , Income and Expenditure Statement , Balance Sheet , Financial Ratio Analysis , Cash Flow

Analysis , Cash Budget - Basics of Personal Financial Planning (Insurance Education Series) - Page no's 20-3 7

UNIT - IIClient EducationInvestment Process , Return on Investment , Source of Risk , Diversification , MarketTiming and Asset Allocation - Case Let - Wealth Management (Dun and Bradstreet) -Page no's 34 to 46

Asset ClassesDebt as an asset class, Role of Debt in Wealth Management, Risk of Investing in Debt Securities , Equity as an Asset Class, Investing in Stocks , Derivatives and Structured Products , Real Estate , Mutual Funds, Hedge Funds, Commodities , Art - Case-let Wealth Management (Dun and Bradstreet) -Page no's 49 to 95

Investment ManagementModern Portfolio Theory, Investment Planning Strategies, Financial Mathematics Basics of Personal Financial Planning (Insurance Education Series) - Page no's 94-100

UNIT-IIIInsurance for Wealth ManagementPersonal Risks & Insurance - Planning a Personal Insurance Program - General Insurance - Health Insurance & Financial Planning - House & Automobile Insurance -Travel Insurance - Wealth Management (Dun and Bradstreet) - Page no's 97 to 104

Personal Credit ManagementConsumer Credit - Uses & Misuses of Credit - Measuring your Credit Capacity - Types of Debt - Housing, Automobile, Education and Credit Cards

Personal Tax ManagementImportance of Tax Planning, Basic concepts of Income Tax, Ethical Considerations, Taxplanning, Tax Calculation - Different Heads, Case StudyBasics of Personal Financial Planning (Insurance Education Series) — Page no's 114-145

UNIT-IVRetirement PlanningWhat is Retirement Planning, Objectives of Retirement Planning , Avoidable Mistakes inRetirement Planning, Wealth Management (Dun and Bradstreet) - Page no's 106 to110Retirement Process, Types of Pensions and Annuities, Review of a Retirement Plan,Pension Reforms, New Pension SchemeBasics of Personal Financial Planning (Insurance Education Series) - Page no's 149-175

Estate PlanningNeed for Estate Planning, Who needs a Plan, Tools for Estate Planning, Management ofEstate - Case-letWealth Management (Dun and Bradstreet) - Page no's 113 to 121Basics of Personal Financial Planning (Insurance Education Series) -Page no's 187

UNIT - VWealth Management StrategyThe Un-wealthy habits, Philosophy of Wealth Creation and ManagementWealth Management (Dun and Bradstreet) - Page no's 122 to 125Strategies for putting together a complete financial planBasics of Personal Financial Planning (Insurance Education Series) - Page no's 210to 220

Behavioral Finance - A New Paradigm in Stock Market - What is Behavioral finance? Historical Background, Conceptual Background, Paradigms in Behavioral Finance, Application of Behavioral Finance, Criticism

Recommended Book — (a) Dun & Bradstreet, Wealth Management, Tata McGrawrHill Publishing Company Limited , New Delhi (b) K.C.Mishra and Steward Doss , Basics of Personal Financial Planning , Cengage Learning , New Delhi

Further Reference:

1) Jae K.Shim, Financial Planning, Thomson South Western, 20042) Joehnk, Gitman ,Personal Finance a User's Perspective, Cengage Learning3) Parag Parikh, Stocks to Riches , Insights on Investor Behaviour , Tata McGraw-Hill4) Bjshnupriya Mishra and Sathya Swaroop Debasish , Indian Stock Market ,Excel Books5) Stuart E, Lucas, Wealth , Wharton School Publishing;;6) SanjivMehta- Winning The Wealth Game -Tata McGraw-Hill 7) Business Line and Economic Times news papers