CS - Professional Programme : Module II - Financial, Treasury and Forex Management

ICSICS (2008)PPSyllabus and Books • Module II - Financial, Treasury and Forex Management

CS_PP :: Professional Programme
Paper 3 : Financial Treasury and Forex Management
[One paper: Three Hours – 100 marks]

Level of Knowledge:

Expert knowledge


(i)To provide conceptual clarity about the management tools and techniques used in financial planning, analysis, control and decision making.
(ii)To provide knowledge of derivatives, forex and treasury management to enable the candidates to tackle practical situation with ease.

Detailed contents :

1.Nature and Scope of Financial Management
Nature, significance, objectives and scope of financial management; risk-return and value of the firm; financial distress and insolvency; financial sector reforms and their impact on financial management; functions of finance executive in an organisation; financial management – recent developments.
2.Capital Budgeting Decisions
Planning and control of capital expenditure; capital budgeting process; techniques of capital budgeting- discounted and non-discounted cash flow methods, choice of methods; capital rationing; risk evaluation and sensitivity analysis, simulation for risk evaluation; linear programming and capital budgeting decisions.
3.Capital Structure Decisions
Meaning and significance of capital structure; capital structure vis-avis financial structure; capital structure planning and designing; optimal capital structure; determinants of capital structure; capital structure and valuation - theoretical analysis; EBIT – EPS analysis; cost of capital; factors affecting cost of capital, measurement of cost of capital, weighted average cost of capital, marginal cost of capital; risk and leverage; measures of leverage, leverage effects on shareholders returns.
4.Sources of Finance
Equity, non-voting preference shares; debentures and bonds; company deposits; term loans from financial institutions and banks; international finance and syndication of loans; euro-issues and external commercial borrowings; FCCB; internal funds as a source of finance; dividend policy and retention of profits; bonus shares; deferred payment arrangements; corporate taxation and its impact on corporate financing; financing cost escalation.
5.Dividend Policy
Introduction; types, determinants and constraints of dividend policy; different dividend theories — Walter’s Model, Gordon’s Model andModigliani-Miller Hypothesis of dividend irrelevance; forms of dividend; dividend policy - practical considerations and legal constraints; corporate dividend practices in India; statutory framework.
6.Working Capital Management and Control
Working capital - meaning, types, determinants; assessment of working capital requirements - operating cycle concept and applications of quantitative techniques; management of working capital - cash, receivables, inventories; financing of working capital; banking norms and macro aspects of working capital management.
7.Security Analysis and Portfolio Management
Security analysis - fundamental approach, technical approach and efficient capital market theory; portfolio management - meaning, objectives; portfolio theory – traditional approach; modern approach - CAPM model.
8.Financial Services
Meaning, significance and scope of financial services ; types of financial services – merchant banking, leasing and hire purchase, venture capital, mutual funds, factoring and forfeiting, securitisation of debt, loan syndication, custodial and corporate advisory services, credit rating.
9.Project Planning and Control
Project Planning and preparation of project report; project appraisal under normal, inflationary and deflationary conditions; project appraisal by financial institutions – lending policies and appraisal norms by financial institutions and banks; loan documentation and loan Introduction of New Syllabus of the Company Secretaryship Course Student Company Secretary 43 November 2007 syndication, project review and control; social cost and benefit analysis of project.
10.Derivatives and Commodity Exchanges
Concept of derivatives; financial derivatives and commodity derivatives; types of derivatives - forward contracts, futures contracts, options; participants in futures and options market, Index based derivatives and security based derivatives; derivatives and exposure management, currency forwards, currency futures, currency options and currency swaps and interest rate risk management; derivative markets in India; commodity exchanges in India.
11.Treasury Management
Meaning, objectives, significance, functions and scope of treasury management; relationship between treasury management and financial management; role and responsibilities of chief finance executive; tools of treasury management; internal treasury controls; environment for treasury management; role of information technology in treasury management; liquidity management, regulation, supervision and control of treasury operations, implications of treasury on international banking.
12.Forex Management
Nature, significance and scope of forex management; foreign exchange market and its structure; foreign exchange rates and its determination; exchange rate quotes; types of exchange rates; forex trading; currency futures and options; foreign exchange risk exposures and their management; exchange rate forecasting; risk in foreign exchange business.
13.Recent Developments in Financial, Treasury and Forex Management
14.Practical Problems and Case Studies.


Financial Management – Text and ProblemsM.Y.Khan & P.K.Jain McGraw Hill Education
Financial Management – Theory & PracticePrasanna ChandraMc Graw Hill Education
Financial ManagementI.M.PandeyVikas Publishing House
Financial Management – Theory, Concepts and ProblemsR.P.RustagiGalgotia Publishing
Financial Management – Principles & PracticeS.N.MaheshwariSultan Chand
Financial Management-An Analytical and Conceptual ApproachS.C.KuchhalChaitanya Publishing
Financial Management & PolicyJ.C.VanhornePrentice Hall of India
Financial ManagementSabir Kumar BanerjeeS.Chand
Woking Capital ManagementV K BhallaAnmol Publications
A manual Of Merchant BankingJ.C.VermaBharat Law House
Contemporary Financial Markets and ServicesScott L.WilliamWest Publishing Company
Financial Management and PolicyV.K. BhallaAnmol Publications
Options, Futures and other Derivative SecuritiesJohn C.HullPrentice-Hall
Treasury Management in IndiaV.A.AvadhaniHimalaya Publishing House
Treasury ManagementHudson RobertBlackwell
Financial Future an OptionsB.Brahmaiah & P.SubbaRaoHimalaya Publishing House
Financial Derivatives – an Introduction to
Futures Forwards, Options and Swaps
Keith RedheadPrentice Hall of India
Foreign Exchange International Finance and Risk ManagementA.V.RajwadeAcademy of Business Studies
Foreign Exchange Management ManualD.T.KhilananiSnowhite
Foreign Exchange and Risk ManagementC JeevanandamSultan Chand
Strategic Financial ManagementR P RustagiSultan Chand


Financial Decision Making – Concepts, Problems and CasesJohn J.HamptonPrentice Hall of India
Principles of Financial ManagementBenton E. GupJohn Wiley
Projects Preparation, Appraisal and ImplementationPrasanna ChandraMcGraw Hill Education
The Theory of Financial ManagementEzra SolomonColumbia Unviersity Press
Guidelines for Project EvaluationP.Dasgupta, A.Sen & S. MarglinNew Oxford & IBH Publishing
International Financial ManagementP.G.ApteMcGraw Hill Education
International Dimensions of Financial ManagementDennis J.O’Connor Albert& T.BuesoMacMillan Publishing Company
Portfolio Construction, Management and ProtectionRobert A. StrongWest Publishing Company
Contemporary Financial ManagementR.Charles Moyer, James
R. McGuign & William J.Kretlow
West Publishing Company
Lease Financing and Hire Purchase,
Merchant Banking, Mutual Funds,
Factoring and Venture Capital
Kothari Vinod.Wadhawa
Global Business FinancePrakash G.ApteMcGraw Hill
Management of Financial ServicesV K BhallaAnmol Publications


RBI BulletinRBI Publication, Mumbai.
RBI Annual Report (latest)RBI Publication, Mumbai.
Report on Currency and Finance (Latest)RBI Publication, Mumbai.
The World Bank Annual Report (latest)The World Bank Headquarters, Washington, USA.
Economic Survey (latest)Government of India Publication, New Delhi.
Annual Report, Govt, of India, Ministry of FinanceGovernment of India Publication, New Delhi.
Guidelines issued by various Financial
Institutions; Appraisal of Term-loans
Report of the Working Group, Reserve Bank of India
Journal of FinanceThe Journal of American Finance Association, New York.
Financial and Economic Dailies.