Scheme of Examination and Courses

of Reading for B.Com.(Hons.)

SEMESTER-VI

SCHOOL OF OPEN LEARNING

University of Delhi

Syllabus Applicable for the students seeking admission to

B.Com.(Hons.) Course from 2019-20 onwards
 B.Com. (Hons.) Semester-VI

CORE COURSE
Paper 13 : Auditing and Corporate Governance
Paper 14 : Goods and Service Tax (GST) and Customs Law
DISCIPLINE SPECIFIC ELECTIVE (DSE)
DSE-3 (Any one)
1. Fundamentals of Investment
2. Compensation Management
DSE-4 (Any one)
1. International Business
2. Industrial Relations and Labour Laws
 Core Course
Paper 13 : Auditing and Corporate Governance
Credits: 6

Course Objective
To provide knowledge of corporate governance and auditing principles, procedures and
techniques in accordance with current legal requirements and professional standards.

Course Learning Outcome

After completing the course, the student shall be able to:

CO1: differentiate between different aspects of auditing especially for internal check, internal
control and for overall corporate governance.
CO2: understand the concept of corporate governance in organisations and its essence for
management.
CO3: provide and assimilate information leading to failure of organisation and corporate scams.
CO4: comprehend the governance framework for an organisation provided by different
regulatory bodies in India and Abroad.
CO5: recognise the essence of ethics in business.

Course Contents
Unit I: Auditing

Basic Principles and Techniques of Auditing; Classification of Audit, Audit Planning, Internal
Control – Internal Check and Internal Audit; Role of Auditors in corporate governance; Peer
review and Independent review of Audit; Public Company Accounting Oversight Board
(PCAOB); National Financial Reporting Authority (NFRA).

Unit II: Corporate Governance

Corporate Governance: Meaning, significance and principles, Management and corporate

governance,; Theories and Models of corporate governance; Board structure and Independent
director, board committees and their functions; shareholder activism and, proxy advisory firms.,
role of rating agencies Whistle blowing, , Class Action

Unit III: Major Corporate Governance Failures and International Codes

BCCI (UK), Maxwell Communication (UK), Enron (USA), World.Com (USA), Andersen,
Worldwide (USA), Vivendi (France), Satyam Computer Services Ltd, Lehman Brothers,
Kingfisher Airlines, PNB Heist and IL&FS Group Crisis; Common Governance Problems
Noticed in various Corporate Failures; Codes and Standards on Corporate Governance: Sir

1
Adrian Cadbury Committee 1992 (UK), OECD Principles of Corporate Governance and
Sarbanes Oxley (SOX) Act, 2002 (USA).

Unit IV: Corporate Governance Framework in India

Initiatives and reforms- Confederation of Indian Industry (CII) (1997), Kumar Mangalam Birla
(1999), NR Narayana Murthy Committee (2005) and UdayKotak Committee (2017).
Regulatory framework: Relevant provisions of Companies Act, 2013, SEBI: Listing Obligations
and Disclosure Requirements Regulations (LODR), 2015.
Corporate Governance in public sector, banking, non- banking financial institutions.

Unit V: Business Ethics and Corporate Social Responsibility (CSR)

Business Ethics and Values; Importance of Ethics; Corporate Governance and Ethics; Ethical
theories; Code of Ethics and ethics committee.
Concept of Corporate Social Responsibility; CSR and Corporate Sustainability, CSR and
Business Ethics, CSR and Corporate Governance, CSR and Corporate Philanthropy;
Environmental Aspect of CSR, Models and benefits of CSR, Drivers of CSR; CSR in India.

References
• Kumar A., Gupta L. and R.J. Arora, Auditing and Corporate Governance, (2016),
Taxmann Pvt Ltd.
• Sharma, J.P.(2016), Corporate Governance, Business Ethics, and CSR, Ane Books Pvt
Ltd, New Delhi
• Tricker, Bob.(2015) Corporate Governance-Principles, Policies, and Practice (Indian
Edition). Oxford University Press, New Delhi.
Additional Resources
• Gupta, Kamal and Ashok Arora, (2015) Fundamentals of Auditing, Tata Mc-Graw Hill
Publishing Co. Ltd., New Delhi.
• Institute of Chartered Accountants of India, Auditing and Assurance Standards, ICAI,
New Delhi.
• Mallin, Christine A.(2018), Corporate Governance (Indian Edition), Oxford University
Press, New Delhi.
• Rani, Geeta D., and R.K. Mishra, (2017) Corporate Governance- Theory and Practice,
Excel Books, New Delhi.

Note: Latest edition of readings may be used

Keywords
Corporate Governance, Business Ethics and Corporate Social Responsibility (CSR), Auditing

2
 Paper 14 : Goods and Services Tax (GST) and Customs Law

Credits: 6

Course Objective
To impart knowledge of principles and provisions of GST and Customs Law, the important
legislation dealing with indirect tax system in India; and to enable the students to apply the same
practically.

Course Learning Outcomes

After completing the course, the student shall be able to:

CO1: connect with the genesis of goods and services tax (GST), decipher the constitutional
amendment carried out to install GST in India and comprehend the composition and
working of GST council.
CO2: understand the meaning of supply under GST law, differentiate between intra-state and
inter-state supply, comprehend rules related to the place of supply and compute the value
of supply.
CO3: comprehend the utilization of input tax credit, and the reverse charge mechanism of
paying GST and to know the procedure for claiming refund under GST law.
CO4: understand the provisions for registration under GST along with special provisions such
as those related to anti-profiteering; avoidance of dual control; e-way bills and penalties.
CO5: know the basic concepts of Customs Act and to compute the assessable value for
charging customs duty.

Course Contents

Unit 1: Introduction

Constitutional framework of indirect taxes before GST (taxation powers of Union & State
Government); Concept of VAT: meaning, variants and methods; Major defects in the structure of
indirect taxes prior to GST; Rationale for GST; Structure of GST ( SGST, CGST, UTGST &
IGST); GST Council; GST Network; State compensation mechanism.

Unit 2: Levy and collection of GST

Taxable event- “Supply” of goods and services; Place of supply: intra-state, inter-state, import
and export; Time of supply; Valuation for GST- valuation rules; Taxation of reimbursement of
expenses; Exemption from GST: Small supplies and Composition scheme; Classification of
goods and services: Composite and Mixed supplies.

3
Unit 3: Input Tax Credit
Eligible and ineligible input tax credit; Apportionments of credit and blocked credits;
Tax credit in respect of capital goods; Recovery of excess tax credit; Availability of tax credit
in special circumstances; Transfer of input credit (Input Service Distribution); Payment of
taxes; Refund; Doctrine of unjust enrichment; TDS; TCS; Reverse Charge Mechanism; Job
work.
Unit 4: Procedures and Special Provisions under GST
Registration; Tax Invoice; Credit and debit notes; Returns; Audit in GST; Assessment: Self-
assessment; Summary and scrutiny; Taxability of e-Commerce; Anti-profiteering; Avoidance of
dual control; e-way bills; Zero-rated supply; Offences and penalties; Appeals.
Unit 5: Customs Law
Basic concepts; Territorial waters; High seas; Types of custom duties; Valuation; Baggage
rules & exemptions.
Note: In case of any subsequent notifications/amendments regarding GST or customs law by the
government, the syllabus would be updated accordingly.
References
• Ahuja, Girish, Gupta Ravi, GST & Customs Law.
• Babbar, Sonal, Kaur, Rasleen and Khurana, Kritika. Goods and Service Tax (GST) and
Customs Law. Scholar Tech Press.
• Bansal, K. M., GST & Customs Law, Taxmann Publication.
• Gupta, S.S. , GST- How to meet your obligations (April 2017), Taxmann Publications
• Gupta, S.S., Vastu and Sevakar, Taxmann Publications, 2017
• Sahi, Shilpi. Concept Building Approach to Goods & Service Tax, & Customs Laws.
Cengage
• Singhania V. K , GST & Customs Lax, Taxmann Publication.
• Sisodia Pushpendra, GST Law, Bharat Law House.

Additional Resources
• The Central Goods and Services Tax, 2017
• The Constitution (One hundred and First Amendment) Act, 2016
• The Goods and Services Tax (Compensation to States), 2017
• The Integrated Goods and Services Tax, 2017
• The Union Territory Goods and Services Tax, 2017
• Vastu and Sevakar Vidhan, by Government of India

Note: Latest edition of readings may be used

Keywords
State Compensation Cess, Job Work Way Bill, Inter State Spply, IGST, SGST, UTGST, CGST,
GST Network

4
 Discipline Specific Elective (DSE)
DSE-3 : Fundamentals of Investment
Credits: 6
Course Objective

To familiarize the students with different investment alternatives, introduce them to the
framework of their analysis, valuation and investor protection.
Course Learning Outcomes
After completing the course, the student shall be able to:

CO1: explain investment environment and concept of return & risk.

CO2: understand bond valuation & role of credit rating agencies.
CO3: examine equity approaches.
CO4: analyze two securities portfolio using Harry Markowitz model, Calculating portfolio risk
and return, explaining CAPM and evaluating Mutual Funds and Financial derivatives.
CO5: evaluate investors protection framework

Course Contents
Unit-I: The Investment Environment
The investment decision process. Types of Investment-Commodities, Real Estate and Financial
Assets. The Indian securities market, the market participants and trading of securities, security
market indices, sources of financial information. Return and Risk: Concept, Calculation, Trade
off between return and risk, Impact of taxes and inflation on return.
Unit-II: Bond Analysis
Bond Fundamentals, Estimating bond yields, Bond Valuation & Malkiel Theorems, bond risks
and credit rating.
Unit-III: Approaches to Equity Analysis
Fundamental Analysis, Technical Analysis and Efficient Market Hypothesis, Valuation of Equity
Shares using Dividend Discount model and P/E ratio model.
Unit-IV: Portfolio Analysis and Financial Derivatives
Harry Markowitz model of Portfolio Analysis and Diversification, CAPM model. Portfolio Risk
and Return, Mutual Funds, overview of Financial Derivatives-Forwards, Future & Options.
Unit-V: Investor Protection
Role of SEBI and stock exchanges in investor protection; Investor grievances and their redressal
system, insider trading, investors’ education and awareness.
Practical
Spreadsheet is the recommended software for doing basic calculations in finance and hence can
be used for giving students subject related assignments for their internal assessment purposes.
References
• Jones, C.P., Investment Analysis and Management. Wiley.
• Mayo., An Introduction to Investment. Cengage Learning.
• Rustagi, R.P., Investment Management. Sultan Chand, New Delhi.
• Sharma, S.K. and Kaur, Gurmeet, Fundamentals of Investments, Sultan Chand & Sons.

5
 • Singh, Y.P. “Fundamentals of Investment Management”. Galgotia Publications
• Tripathi, Vanita (2019), Fundamentals of Investments. Taxmann. Publications.

Additional Resources:
• Videos of Eugene Fama on the history of Finance.
• Vohra, N.D., and Bagri, Future and Options. McGraw Hill Publishing
Note: The latest edition of text books may be used.
Keywords
Investments, Bonds, Equity, Portfolio, Diversification, Investor Protection,
Financial Derivatives.

6
 DSE-3 : Compensation Management

Credits: 6

Course Objective
To acquaint students with various aspects of compensation management while meeting its three
aims of attracting, motivating and retaining employees.
Course Learning Outcomes
After completing the course, the student shall be able to:
CO1: acquaint with basic legal framework envisaged under the statutes for compensation and
welfare of employees in different modes.
CO2: identify the internal and external environmental factors that have an impact on pay
structure of an organisation.
CO3: understand the various principles involved and premise of the grant of bonus, wages, and
minimum wages to workers.
CO4: understand international compensation rules to meet requirement of overseas workforce.
CO5: know various compensation laws to meet employee satisfaction.
Course Contents
Unit I: Introduction to Compensation Management
Concept and principles; Consequences of pay dissatisfaction; Job grading, broad banding and
job design.
Unit II: Foundations of Compensation
Theories of compensation; Executive compensation; Challenges of compensation design;
Developing strategic compensation alternatives; Compensation policies in India.
Unit III: Components of Compensation
Basic pay, dearness allowance, fringe benefits, incentive wage plans (individual, group,
organisation wide), employee stock ownership, retirements benefits– (pension, gratuity,
provident fund); Impact of collective bargaining and negotiation skills on compensation.
Unit IV: International Compensation Management
Types of overseas employment, kinds of overseas workforce, components of expatriate
compensation, approaches to international compensation.
Unit V: Compensation Laws

I. Wages and bonus: The Payment of Wages Act, 1936; The Minimum Wages Act, 1948; The
Payment of Bonus Act, 1965.
II. Social security: The Workmen's Compensation Act, 1923; The Employees' State Insurance
Act, 1948; The Employees' Provident Funds & Miscellaneous Provisions Act, 1952; The
Maternity Benefit Act, 1961; The Employees' Family Pension Scheme, 1995.
References
• Armstrong, M. And Murlis, H. Reward Management. Kogan Page.
• Chhabra T. N. and Rastogi, S. Compensation Management. Sun India

7
 • Dunn, J. D. and Stephens, E. C. Management of Personnel. Mcgraw, NY
• Dwivedi, R.S. Managing Human Resources. Galgotias publishing house.
• Milkovich, G. T. & Newman, J. M. Compensation. Irvin.
• Venkataraman, C.S and Srivastava, B. K. Personnel Management & Human Resources.
Tata Mc Graw Hill.

Note: Latest edition of readings may be used

Keywords
Compensation Theories, Wages and Bonus, Expatriate Compensation, Compensation Laws,
Fringe Benefits, Collective Bargaining.

8
 DSE-4 : International Business

Credits: 6

Course Objective

This course aims to introduce students to the international business, trading and
financial environment. Students are also expected to understand the basic features of the foreign
exchange market and types of exchange rates. The course also creates awareness about
emerging issues such as outsourcing and environmental sustainability in the context of
international business.
Course learning outcomes
After completing the course, the student shall be able to:
CO1: understand the process of globalization, its impact on the evolution and growth of
international business and to appreciate the changing dynamics of the
diverse international business environment.
CO2: analyze the theoretical dimensions of international trade and intervention measures
adopted; to appreciate the significance of different forms of regional economic
integration and to understand the concept of Balance of payment account and its
components.
CO3: understand the significance of different forms of regional economic integration and to
appreciate the role played by various international economic organisations such as the
WTO, UNCTAD, IMF and World Bank.
CO4: familiarize students with the international financial environment, and get them acquainted
with the basic features of the foreign exchange market – its characteristics and
determinants.
CO5: critically examine the concept and form of foreign direct investment, and to create
awareness about emerging issues in international business such as outsourcing and
ecological issues.

Course Contents
Unit I
Introduction to International Business: Globalization and its growing importance in the
world economy; Impact of Globalization; International business contrasted with domestic
businesses –complexities of international business; Internationalization stages and
orientations; Modes of entry into International businesses.
International Business Environment: Economic, demographic, cultural and political-legal
environment

Unit 2
International Trade: Theories of International trade - Absolute advantage theory, Comparative
advantage theory, Factory proportion theory and Leontief paradox, Product life cycle theory,
National competitive advantage theory; Tariff and Non-Tariff Barriers.
BOP- Balance of payment account and its components

9
Unit 3

Regional Economic Integration: Forms of regional integration; Integration efforts amongst

countries in Europe, North America and Asia: EU, NAFTA and SAARC; Cost and benefits of
regional economic integration.
International Economic Organisations: WTO, UNCTAD, World Bank and IMF

Unit 4

International Financial Environment: Foreign exchange markets, Spot market, spot rate
quotations, bid-ask spreads, trading in spot markets, cross exchange rates, forward markets,
forward rate, long and short forward positions, forwards premium and discount; Arbitrage,
Hedging and Speculation; Types of exchange rate systems – fixed and floating, soft peg,
crawling peg, free float, managed float; Foreign exchange risk and exposure
Exchange rate Determination: Types of Exchange rates, Factors affecting exchange rate-
relative inflation rates, interest rates, relative interest rates, relative income levels, government
controls, expectations.

Unit 5

Foreign Direct Investment: Types of FDI - Greenfield investment, Brownfield investments,

Mergers & Acquisition, Strategic alliances; Benefits and drawbacks of FDI
Developments and Issues in International Business: Outsourcing and its potential for India;
International Business & Ecological considerations.

References
• Bennett, Roger. International Business, Delhi: Pearson
• Charles, W L Hill and Jain, Arun Kumar, International Business, New Delhi: Tata
McGraw Hill
• Daniels John. D. Lee H. Radenbaugh and David P Sullivan. International Business,
Pearson Education.
• Griffin, Ricky W and Michael W Pustay- International Business-A Managerial
Perspective Prentice Hall
• Michael R. Czinkota, et al. International Business. Fortforth. The Dryden Press.
• Menipaz, E., Menipaz A. and Tripathi S.S. International Business : Theory and Practice.
New Delhi. Sage Publications India Pvt. Ltd.

Note: Latest edition of the text books may be used.

10
Additional Resources
• Economic Survey, various issues
• RBI Report on Currency & Finance, various issues.
• UNCTAD Reports
• Websites: RBI, IMF, WORLD BANK, WTO.
• WTO Annual report, various reports

Note: Latest edition of readings may be used

Keywords
Globalization, International Business Environment, International Trade, Balance of
payments, Regional Economic Integration, WTO, IMF.

11
 DSE-4 : Industrial Relations and Labour Laws

Credits: 6

Course Objective
To enable the students to learn the concepts of industrial relations including trade unions,
collective bargaining, discipline and various labour enactments.

Course Learning Outcomes

After completing the course, the student shall be able to:
CO1: understand evolution of industrial relations and its significance in managerial world.
CO2: imbibe how to interact, negotiate and transact with trade unions.
CO3: acquaint with the basic framework of collective bargaining and workers’ participation.
CO4: design and understand the discipline measures and address grievance mechanisms.
CO5: understand the legal structure provided for grievance handling under the Industrial
Disputes Act 1947.

Course Contents
Unit I: Industrial Relations (IR)

Concept of Industrial Relations; Nature of Industrial Relations; Objectives of IR; Factors

affecting IR in changing Environment, Evolution of IR in India; Role of State; Trade Union;
Employers' Organisation; Human Resource Management and IR Role of ILO in Industrial
Relations, International Dimensions of IR. Concept of GIG Economy and ramifications for
industrial relations.

Unit II: Trade Union

Trade Union: Origin and growth, unions after Independence, unions in the era of liberalisation;
Factors Affecting Growth of Trade Unions in India, Multiplicity & Recognition of Trade Unions;
Major Provisions of Trade Union Act1926

Unit III: Collective Bargaining and Workers' Participation in Management

Collective Bargaining: Meaning, Nature, Types, Process and Importance of Collective

Bargaining, pre-requisites, issues involved; Status of Collective Bargaining in India, Functions
and role of Trade Unions in collective bargaining
Workers' Participation in Management: Concept, practices in India, Works Committees, Joint
management councils; Participative Management and co-ownership; Productive Bargaining and
Gain Sharing

12
Unit IV: Discipline and Grievance Redressal

Discipline: Causes of indiscipline, Maintenance of discipline. Misconduct; Highlights

of domestic enquiries; Principle of Natural Justice; Labour turnover; Absenteeism;
Grievance: Meaning of Grievance, Grievance redressal machinery in India, Grievance
handling procedure; salient features of Industrial Employment (Standing orders) Act 1946
Unit V: Labour Laws

The Industrial Disputes Act, 1947: Definitions of Industry, workman, and Industrial Dispute;
Authorities under the Act: Procedure, Powers and Duties of Authorities; Strikes and Lock outs:
Lay-off and Retrenchment: Provisions relating to Layoff, Retrenchment, and closure The
Factories Act, 1948: Origin, Growth and Objectives , Provisions relating to Health, Safety,
Welfare facilities, working hours, Employment of young persons, Annual Leave with wages

References
• Bhushan, Bharat., Kapoor, N.D., Abbi, Rajni, “Elements of Industrial Law”. Sultan Chand &
Sons Pvt. Ltd.
• Katz, Harry., Kochan,Thomas A.,& Colvin,A. J.S.(2007) An Introduction to Collective
Bargaining and Industrial Relations, McGraw Hill Companies.
• Padhi, P K, (2017), Industrial Relations, Prentice Hall India
• Sharma, J.P. (2018), Simplified Approach to Labour Laws. Bharat Law House (P) Ltd.
• Venkat Ratnam, (2018) C.S. Industrial Relations: Text and Cases, Oxford University
Press, Delhi.
Additional Resources
• Farnham., and Limlott, J. (1993) Understanding Industrial Relations Cassell.
• Salamon, M. (2001), .Industrial Relations: Theory & practice. Pearson higher Education.

Note: Latest edition of readings may be used

Keywords
The Industrial Disputes Act, 1947, The Factories Act, 1948, Discipline and Grievance
Redressal

13