: Commerce and Accountancy : Optional Subject of Main Examination
Accounting & Finance
Part - I: Accounting, Taxation & Auditing
Accounting as a financial information system; Impact of behavioural science.
Accounting Standards e.g., accounting for depreciation, inventories, gratuity,
research and development costs, long term construction contracts, revenue
recognition, fixed assets, contingencies, foreign exchange transactions,
investments and government grants.
Advanced problems of company accounts. Amalgamation absorption and
reconstruction of companies. Valuation of shares and goodwill.
Nature and functions of cost accounting.
Marginal Costing; Techniques of segregating semi-variable costs into fixed and
Cost-volume-profit relationship; aid to decision making including pricing
decisions, shutdown etc.
Techniques of cost control and cost reduction.
Budgetary control, flexible budgets.
Standard costing and variance analysis.
Responsibility accounting, investment, profit and cost centres.
Basis of charge.
Incomes which do not form part of total income.
Simple problems of computation of income under various heads, i.e., salaries,
income from house property, profits and gains from business or profession,
capital gains, income of other persons included in assessees total income.
Aggregation of income and set off/carry forward of loss.
Deductions to be rhade in computing total income.
Audit of cash transactions, expenses, incomes, purchases, sales.
Valuation and verification of assets with special reference to fixed assets,
stocks and debts.
Verification of liabilities.
Audit of limited companies; appointment, removal, powers, duties and liabilities
of company auditor, significance of true and fare, MAOCARO report.
Auditors report and qualifications therein. Special points in the audit of
different organisations like clubs, hospitals, colleges, charitable societies.
Part - II: Business Finance and Financial
Finance Function - Nature, Scope and Objectives of Financial Management -Risk
and Return relationship.
Financial Analysis as a Diagnostic Tool.
Management of Working Capital and its Components - Forecasting working
capital needs, inventory, debtors cash and credit management.
Investment Decisions - Nature and Scope of Capital Budgeting - Various types
of decisions including Make or Buy and Lease or Buy - Techniques of Appraisal
and their application-Consideration of Risk and Uncertainty - Analysis of
Rate of Return on Investments - Required Rate of Return - its measurement -
Cost of Capital - Weighted Average Cost - Different Weights.
Concepts of Valuation - Valuation of firms Fixed Income Securities and Common
Dividend and Retention Policy - Residual Theory or Dividend Policy - Other
Models - Actual Practices.
Capital Structure - Leverages - Significance of Leverages - Theories of
Capital Structure with special reference to Modighani and Miller approach.
Planning the Capital Structure of a Cojmpany; EBIT-EPS Analysis, Cash-flow
ability to service debt, Capital Structure Ratios, other methods.
Raising finance - Short term and long term. Bank finance - norm* and
Financial Distress - Approaching BIFR under Sick Industrial Undertakings Act:
Concept of Sickness, Potential Sickness, Cash Loss, Erosion of Networth.
Money Markets - The purpose of Money Markets, Money Market in India
-Organization and working of Capital markets in India - Organization, Structure
and Role of Financial Institutions in India. Banks and Investing Institutions -
National and International Financial Institutions - their norms and types,of
financial assistance provided - Inter-bank Lending-its regulation, supervision
and control. System of Consortium - Supervision and regulation of banks.
Monetary and Credit policy of Reserve Bank of India.
Organisation Theory and Industrial Relations
Part-I: Organisation Theory
Nature and concept of Organisation - Organisation goals; Primary and secondary
goals, Single and multiple goals, ends means chain-Displacement, succession,
expansion and multiplication of goals - Formal organisation; Type, Structure -
Line and Staff, functional matrix, and project - Informal organisation -
functions and limitations.
Evolution of organisation theory: Classical, Neo-classical and system
approach- Bureaucracy; Nature and basis of power, sources of power, power
structure and politics - Organisational behaviour as a dynamic system:
technical, social and power systems - interrelations and interactions -
Perception-Status system. Theoretical and empirical foundation of theories and
Models of motivation. Morale and productivity - Leadership: Theories and styles
-Management of conflicts in organisation - Transactional Analysis - Significance
of culture to organisations. Limits of rationality - Organisational change,
adaptation, growth and development, Professional management Vs. family
management, Organisational control and effectiveness.
Part-II: Industrial Relations.
Nature and scope of industrial relations, the socio-economic set-up, need for
Industrial labour in India and its commitment - stages of commitments. Migratory
nature - merits and shortcomings.
Theories of Unionism.
Trade Union movement in India - origin, growth and structure; Attitude and
approach of management in India - recognition. Problems before Indian Trade
Industrial disputes - sources; strikes and lockouts.
Compulsory adjudication and collective bargaining - approaches.
Workers participation in management - philosophy, rationale; present day state
of affairs and future prospects.
Prevention and settlement of industrial disputes in India.
Industrial relations in Public Enterprises.
Absenteeism and labour turnover in Indian Industries - causes.
Relative wages and wage differentials; wage policy.
Wage policy in India; the Bonus issue.
I.L.O. and India;
Role of Personnel Department in the Organisation.