MCom 2nd Year Syllabus: Semester 3 & 4 Subject-wise Syllabus

MCom Semester 3 Syllabus 2027

S.No.

Subjects

1

Research Methodology and Quantitative Techniques

2

Cost Accounting and Control

3

International Financial Management

4

Securities Analysis and Portfolio Management

MCom Semester 4 Syllabus 2027

S.No.

Subjects

6

Strategic Management

7

Taxation

8

Financial Derivatives

9

Entrepreneurship Development 

Unit

Title

Syllabus / Topics

Unit I

Introduction

Research: Meaning, purpose, characteristics and types; process of research; formulation of objectives; research plan and its components; methods of research: survey, observation, case study, experimental, empirical and comparative methods; difficulties in business research (theory only). Collection, Presentation and Analysis of Data: Sources of data: primary and secondary sources; methods of collecting primary data; measurement and scaling; designing questionnaires/schedules; census vs. sampling; methods and techniques of random and non-random sampling (theory only).

Unit II

Interpretation and Report Writing

Interpretation: Introduction; essentials and precautions in interpretation; conclusions and generalisation; methods of generalisation; statistical fallacies, including bias, inconsistency in definitions, inappropriate comparisons, faulty generalisations, drawing wrong inferences, misuse of statistical tools and failure to comprehend data. Report Writing: Meaning and types of reports; stages in report preparation; characteristics of a good report; structure of a report; documentation, including footnotes and bibliography; checklist for the report.

Unit III

Statistical Estimation, Hypothesis Testing and Sampling of Variables

Statistical Estimation: Concepts of population, sample and sampling distribution; parameters and statistics; central limit theorem; standard error; confidence limits; estimation of population parameters; properties of a good estimator; point and interval estimation. Hypothesis Testing: Formulation and types of hypotheses; methods of testing hypotheses; Type I and Type II errors; one-tail and two-tail tests (theory only). Sampling of Attributes: Estimation and testing of number and proportions of successes; difference between two proportions (including problems). Sampling of Variables: Large samples—difference between large and small samples, estimating population mean, significance of mean, difference between means of two samples and difference between standard deviations of two samples (including problems). Small samples—t-test, fixing fiducial limits to population mean, significance of mean, difference between two independent means and difference between two dependent means (including problems).

Unit IV

Analysis of Variance, Association of Attributes and Chi-Square Test

Analysis of Variance: F-test—meaning and applications; ANOVA assumptions and procedure; one-way and two-way analysis of variance (including problems). Association of Attributes: Meaning; distinction between correlation and association; methods of studying association; interpretation of results. Chi-Square Test: Definition; conditions for applying the chi-square test; Yates's correction; uses and limitations; chi-square test for testing the independence of attributes and goodness of fit (including problems).

Unit V

Statistical Decision Theory, Game Theory and Linear Programming

Statistical Decision Theory: Nature of decision; state of nature; payoff tables; expected payoff; expected opportunity loss; value of perfect information; types of decision situations; choice of decision criteria; decision tree analysis; decision-making under uncertainty (including simple problems). Game Theory: Characteristics; two-person zero-sum game; maximin and minimax strategies; saddle point; dominating strategy; mixed strategy; limitations of game theory (including simple problems using analytical formulae and graphical methods). Linear Programming: Meaning; requirements for application; assumptions; advantages; applications; formulation of linear programming problems; graphical solutions of problems involving two variables only (including simple problems).

Unit

Title

Syllabus / Topics

Unit I

Introduction

Cost Accounting: Nature and scope, need and objectives; cost concepts; installation of costing system; relationship of cost accounting with financial accounting and management accounting; cost accounting standards; cost classification; cost sheet; books of accounts; integral and non-integral accounting; reconciliation of cost and financial accounts (including problems).

Unit II

Process Costing

Meaning, features, applicability, advantages and disadvantages of process costing; unit costing vs. process costing; job costing vs. process costing; normal loss and abnormal loss; process accounts with stocks; inter-process profit; equivalent production; First In-First Out (FIFO) method and average method; joint products and by-products (including problems).

Unit III

Marginal, Absorption and Differential Costing

Marginal Cost: Meaning and features. Absorption Costing: Meaning, advantages and disadvantages; marginal costing vs. absorption costing; preparation of income statements under marginal costing and absorption costing. Differential Costing: Meaning of differential cost; marginal cost vs. differential cost; characteristics of differential costing; managerial applications of differential cost analysis (including problems).

Unit IV

Budgetary Control

Budget: Meaning and essentials; budgeting. Budgetary Control: Essentials, advantages and limitations. Classification of Budgets: Functional budgets, including sales budget, production budget, direct material budget, direct labour budget and manufacturing overheads budget; capital expenditure budget; cash budget; master budget; flexible budget; performance budget; traditional system of budgeting; zero-based budgeting (including problems).

Unit V

Standard Costing

Standards: Meaning, types and establishment. Standard Costing: Need, prerequisites, advantages and disadvantages; standard costing and budgetary control; variance analysis; revision of standards; control and efficiency ratios (including problems).

Unit

Title

Syllabus / Topics

Unit I

Introduction to International Financial Management

(a) An Overview of International Financial Management: Meaning; features and scope of international finance; international financial management vs. domestic financial management; factors influencing the growth of international finance; international monetary system (theory only). (b) Balance of Payments Accounting: Accounting principles; debit and credit entries; balance of payments statement (theory only).

Unit II

Foreign Exchange Markets and Exchange Rate Mechanism

(a) Foreign Exchange Market: Features; major participants; spot market—features, arbitrage and speculation; forward market—features, arbitrage, hedging, speculation and swapping (including problems). (b) Exchange Rate Mechanism: Exchange rate quotations; nominal, real and effective exchange rates; exchange rate determination in the spot market and forward market (including problems).

Unit III

Foreign Exchange Exposure

(a) Measurement of Foreign Exchange Exposure: Meaning and relevance of foreign exchange exposure; classification of foreign exchange exposure—transaction exposure, operating exposure and accounting exposure (including problems). (b) Management of Foreign Exchange Exposure: Need; hedging of transaction exposure; hedging of real operating exposure; management of accounting exposure (including problems).

Unit IV

International Investment Decision

(a) Foreign Direct Investment (FDI): Theories of FDI; costs and benefits of FDI; strategy for FDI; control of multinational corporations (theory only). (b) International Capital Budgeting: Evaluation criteria—non-discounting and discounting methods; computation of cash flow; cost of capital, including average cost of capital, cost of debt, cost of equity shares and cost of retained earnings (including problems).

Unit V

International Financing Decisions

(a) International Financial Markets: Channels for international flow of funds; changing structure of the international financial market; selection of sources and forms of funds (theory only). (b) International Financial Instruments: Euro credits—revolving credit and term credit; Euro bonds—straight bonds, convertible bonds, currency optional bonds and floating-rate notes (FRNs); Euro currency deposits—call deposits, term deposits and certificates of deposit; Euro notes—commercial paper, note issuance facilities (NIF) and medium-term notes; Euro issues—foreign currency convertible bonds (FCCBs), global depository receipts (GDRs) and American depository receipts (ADRs) (theory only).

U​nit

Title

Syllabus / Topics

Unit I

Security Analysis

(a) Fundamental and Technical Analysis: Meaning; economic analysis; economic forecasting and forecasting techniques; industry analysis, including concept of industry, industry life cycle and industry characteristics; company analysis; financial statements and analysis of financial statements (theory only). Technical Analysis: Meaning; Dow Theory; basic principles of technical analysis; trends and trend reversal; Elliott Wave Theory; mathematical indicators; market indicators (theory only). (b) EMH and Behavioural Analysis: Random Walk Theory; Efficient Market Hypothesis (EMH); forms of market efficiency; tests of EMH (theory only). Behavioural Analysis: Concept, assumptions, nature, scope, objectives and applications of behavioural finance; behavioural biases (theory only).

Unit II

Valuation of Securities

(a) Share Valuation: Concept of present value; share valuation models; one-year and multiple-year holding periods; constant growth model; multiple growth model; multiplier approach to share valuation (including problems). (b) Bond Valuation: Bond returns; coupon rate; current yield; spot interest rate; yield to maturity; yield to call; bond prices; bond risks; bond duration (including problems).

Unit III

Capital Market Theory

(a) Capital Market Theory: Assumptions; Capital Asset Pricing Model (CAPM); efficient frontier with riskless lending and borrowing; Capital Market Line (CML); Security Market Line (SML); SML vs. CML; pricing of securities using CAPM; limitations of CAPM (including problems). (b) Arbitrage Pricing Theory (APT): Law of One Price; assumptions; arbitrage pricing for one risk factor; two-factor arbitrage pricing; multiple-factor arbitrage pricing; limitations of APT (including problems).

Unit IV

Portfolio Performance Evaluation

(a) Portfolio Performance Evaluation: Need for evaluation; evaluation perspective; meaning of portfolio evaluation; measuring portfolio return; risk-adjusted returns; Sharpe ratio; Treynor ratio; differential return (including problems). (b) Forecasting Portfolio Performance: Chaotic theory; artificial neural networks; fuzzy theory; behavioural models, including prospect theory and heuristic theory; genetic algorithms (theory only).

Unit V

Portfolio Revision

(a) Portfolio Revision: Need and meaning of portfolio revision; constraints in portfolio revision; portfolio revision strategies; formula plans; constant rupee value plan; constant ratio plan; dollar-cost averaging (theory only). (b) International Investing: Benefits and risks of global investing; factors influencing international investing; foreign exchange risk (theory only).

Unit

Title

Syllabus / Topics

Unit I

Overview of Strategic Management

Strategy: Concept; Mintzberg models of strategy; levels of strategy. Strategic management: Process, benefits and guidelines for effective strategic management. Strategy, ethics and social responsibility; need for good corporate governance; corporate citizenship.

Unit II

Environmental Analysis

Internal Analysis: Competitive advantage; competencies; SWOT analysis; resources, capabilities and core competence; resource-based view of a firm; key success factors; value chain analysis; benchmarking. External Analysis: Components of external analysis; segments of the general environment; industry's dominant factors; Porter's Five Forces Model; PEST analysis; industry driving forces; strategic group mapping.

Unit III

Crafting Strategy

Vision and mission: Significance, characteristics and types; objectives and setting of objectives; factors affecting strategy. Generic Strategies: Overall low-cost provider, focused low-cost, broad differentiation, focused differentiation and best-cost provider. Other Strategy Choices: Strategic alliances; mergers and acquisitions; vertical integration; outsourcing; offensive strategies; first-mover advantages and disadvantages; diversification; modernization; turnaround.

Unit IV

Executing Strategy (Implementation of Strategy)

Nature of strategy implementation. Organizational Issues: Annual objectives, policies, resource allocation, structure, restructuring, reengineering, e-reengineering, performance pay, change, conflict, culture, HR issues and leadership. Marketing, Finance and Accounting Issues: Segmentation, targeting, positioning and marketing mix; financing, investment, dividends and budgets. Performance Evaluation: ROI, EVA and MVA; balanced scorecard.

Unit V

Evaluation of Strategy

Strategic evaluation: Significance, criteria, barriers and ways to overcome barriers. Strategic control and operational control; types of strategic controls; process of operational control; evaluation techniques for strategic and operational control.

Unit

Title

Syllabus / Topics

Unit I

Assessment of Hindu Undivided Families

Meaning of HUF; Hindu coparcenary; different schools of Hindu law; assessment of HUF; basic conditions; taxable income; assessment in case of partition of an HUF; computation of taxable income and tax payable (theory and problems).

Unit II

Assessment of Partnership Firms and AOP

Meaning of partnership firm; conditions for assessment as a firm under Sections 184 and 185; treatment of interest and remuneration paid to partners under Section 40(b); computation of total income; assessment of partners of a firm; change in constitution of a firm; succession of one firm by another; assessment of dissolved or discontinued firms; partnership firm assessed as an Association of Persons (AOP); computation of total income of a partnership firm assessed as an AOP (theory and problems).

Unit III

Assessment of Companies

Meaning and types of companies; computation procedure; taxable income; deductions; tax liability; Minimum Alternate Tax (MAT); carry forward and set-off of losses; tax on distributed profits; tax on income received from venture capital companies and funds; computation of total income of companies; determination of tax liability (problems). Other Taxes: Securities Transaction Tax (STT); tonnage tax (theory and problems).

Unit IV

Assessment of Co-operatives and Trusts

Co-operative Societies: Meaning; deduction under Section 80P; other deductions; computation of tax (theory and problems). Trusts: Definition; creation; registration; types of trusts; tax exemptions; accumulation of income; income not exempted; assessment of trusts (theory and problems).

Unit V

Fundamentals of GST and Customs Act

Goods and Services Tax (GST): Introduction; registration; inter-state and intra-state transactions under GST; distinction between goods and services; levy and collection of GST; exemptions from GST; place, time and value of supply; input tax credit; payment of GST (theory only). Customs Act: Meaning; classification; types of customs duty; exemptions.

Unit

Title

Syllabus / Topics

Unit I

Introduction to Financial Derivatives and Markets

(a) Financial Derivatives: Meaning, definition, features, types, uses, history of derivatives markets, critiques and myths (theory only). (b) Financial Derivatives Markets in India: Need, evolution, recommendations of the L.C. Gupta Committee, equity derivatives, categories of derivatives traded in India, derivatives trading at NSE/BSE, eligibility of stocks and emerging structure of derivatives markets in India (theory only).

Unit II

Forwards and Futures Contracts

(a) Forward Contracts: Meaning, features, forward contracts vs. spot contracts, forward contracts vs. futures contracts, working of forward contracts, classification, advantages and disadvantages (theory only). (b) Futures Contracts: Meaning, features, types, trading mechanism; theories of futures prices, including basic concepts in futures pricing, cost-of-carry approach, expectation approach, normal backwardation approach and CAPM approach; hedging, perfect hedging model, basic long and short hedges, cross hedging, basis risk and hedging, hedging effectiveness and hedge ratio (simple problems).

Unit III

Options

(a) Options Basics: Meaning, types, options terminology, value of an option—intrinsic value and time value; option positions and payoff profiles (simple problems). (b) Options Pricing and Greeks: Determinants of option pricing; binomial option pricing model; Black-Scholes option pricing model; option Greeks—Delta, Theta, Gamma, Rho and Vega (simple problems).

Unit IV

Swaps

(a) Swaps Basics: Meaning, features, advantages, disadvantages, swaps markets, types of swaps and economic motives for swaps (theory only). (b) Pricing and Valuing Swaps: Interest rate swaps, currency swaps and equity swaps (simple problems).

Unit V

Volatility and Value at Risk

(a) Volatility: Measures of risk; volatility; exponentially weighted moving average (EWMA); correlation and covariance; GARCH (1,1) model; volatility index; computation of India Volatility Index (simple problems). (b) Value at Risk (VaR): Features and concerns of the financial sector; definition and meaning of VaR; decisions in VaR; methods of calculating VaR; historical simulation; Monte Carlo simulation; limitations (simple problems).

Unit

Title

Syllabus / Topics

Unit I

Introduction to Entrepreneurship

Concept of entrepreneurship; role of entrepreneurship in economic development; entrepreneurial ecosystem and its components; process of entrepreneurial development; entrepreneurship as a career; scope of entrepreneurship in local and global markets; skills and traits required to be an entrepreneur; creative and design thinking; skill gap analysis; entrepreneurial decision process.

Unit II

Exploring and Evaluating Business Opportunity

Concept and sources of business ideas; screening business ideas through macro and micro screening; opportunity recognition; product/service selection; mortality curve; creativity and innovation in product/service modification; process selection; technology life cycle; forms and cost of transformation; market study procedures; prototyping; capstone project presentation.

Unit III

Approaches to Entrepreneurship and Competency Development

Approaches to entrepreneurship; theories of entrepreneurship; entrepreneurial motivation; concept of entrepreneurial competencies; competencies of successful entrepreneurs; assessing entrepreneurial competencies; Entrepreneurial Competency Development (ECD); need and objectives of ECD; development and phases of ECD programmes; issues of entrepreneurial competency development programmes in India.

Unit IV

Feasibility Analysis

Industry analysis; competition analysis; environment analysis; meaning and significance of a business plan; components and preparation of a business plan; viability of a business plan and evaluation criteria; iterating the Minimum Viable Product (MVP); describing the value proposition; choosing a business model; product-market fit; cost and profitability analysis; establishing operational metrics.

Unit V

Risk Analysis

Meaning and types of business risks; planning for undertaking calculated risks; critical risk contingencies of a business proposal; initiating low-cost projects; integrated futuristic planning; identifying business verticals; lean method; identifying sources of finance; scalability and revenue models; legal and regulatory aspects of starting an enterprise; obtaining business licences; business incubation centres—their role and procedures; team formation and teamwork planning.