IMT SYLLABUS BUSINESS VALUATION AND CORPORATE RESTRUCTURING

1.      Elective : Finance

Credit: 2

BUSINESS VALUATION AND CORPORATE RESTRUCTURING

Objectives :

1.        To explain business valuation techniques

2.        To set analytical techniques for  identification of acquisition targets

3.        To analyse  policies of mergers and acquisitions, spin off and demerger

4.        To explain techniques of fixation of purchase consideration and mode of payment

5.        To understand  relevant corporate laws  and tax issues.

Contents:

Business valuation techniques – Discounted cash flow approach, Economic value added approach, Dividend and P/E Ratio based models – Special valuation approaches – valuation of loss making companies and knowledge based companies

Corporate restructuring techniques : Business acquisition, amalgamation in the nature of merger, de-merger, spin off and delisting.

Analysis of merger techniques – purchase consideration – mode of payment

Analysis of acquisition and demerger cases

Acquisition of sick companies - tax advantage – turnaround problem

HR issues in merger and acquisition

Evaluation of merger and acquisition reference.

Main Reading :

       IMT Study Material (SIM)

Additional Readings:

1.     Damodaran on valuation

2.     Krallinger, J, Mergers & Acquisitions, McGrawHill, 1997.

3.     Gaugham, P.A., Mergers, Acquisition and Corporate Restructuring, John Wiley & Sons, Inc., 1996.

IMT SYLLABUS RISK MANAGEMENT

 Elective : Finance

Credit: 3

RISK MANAGEMENT

Objectives :

To develop expert knowledge about business risk and financial risk and various risk management tools and techniques.

Contents :

Introduction to risk exposures – Risk identification and analysis

Risk management in banks : operational risk , credit risk, market risk and  liquidity risk.

Risk management of insurance companies – operational risk – reinsurance strategies

Currency risk management : Application of swap - Managing swap book

Risk management in risk service sector companies: Client concentration risk – Customer satisfaction index – Competition analysis

Value at risk

Credit derivatives

Application of  commodity derivatives for risk management

Main Reading :

       IMT Study Material (SIM)

Additional Readings:

1.      Gary Shoup, Currency Risk Management, Glenlake Publishing Company

2.      Morgan, J.P., Risk Metrics, Irwin

3.      Jorion Philippe, Value at Risk, Irwin

4.      Levy, International Financial Management

Arditi, Fred. A, Derivatives, Harvard Business School Press

IMT Syllabus PROJECT APPRAISAL AND FINANCING

SYLLABUS IMT - PROJECT APPRAISAL AND FINANCING

Objectives :

To explain project appraisal techniques, financial structuring and financing alternatives.  This course intends to involve students to apply appraisal techniques for evaluating live projects.

Contents :

Identification of investment opportunities – industry analysis review of project profiles – feasibility study.

Project Appraisal – techniques of appraising commercial and social projects.  DCF and non-DCF methods – sensitivity analysis.

Project risk assessment – probabilistic cash flow approaches – application of simulation techniques

Social cost benefit analysis – value added concept, social surplus indirect impact of projects

Evaluation of International Projects

Project appraisal parameters of select financial institutions

Preparation of project report – Case Analysis

Financial structuring – innovative financing alternatives, collaboration, lease financing, equity participation – project finance vis-à-vis corporate finance

Managing joint venture projects

Main Reading :

       IMT Study Material (SIM)

Additional Readings:

1.      Machiraju, H.R., Introduction to Project Finance, Vikas Publishing House

2.      Prasanna Chandra, Project Preparation Appraisal Budgeting and Implementation, Tata McGraw.

3.      Bennet P. Lientz, Kathryn P. Rea, Breakthrough Technology Project Management (Second Edition), Academic Press

4.      Narendra Singh, Problems and Solutions in Project Management and Control, Himalaya Publishing House