FINANCIAL MANAGEMENT

(Session Plan)
MMS-SECOND SEMESTER-2011-13 COURSE CODE 2.8

No. of sessions: 18 (2 Hrs per session)

MAX. MARKS 100

Tutorials : 8 (1 Hr per session (Saturday)

TEACHNING FACULTY: Prof. Rakhi R. Shrivastava

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Why Financial Management For an MBA Trainee? Prescribed Text Book and Additional Reference Text Books Current Vista (Trends) of Finance World through:

Module one
Module 1: Scope and Objectives of Financial Management Session- 1 (Teaching Hours per Session: 2) A. Scope of Financial Management
a. b. c. d. e. f. Why Financial Management? ( Functions of Financial Management) Major Decisions in Financial Management Importance of Financial Management in Business World Risk and Return in Financial Planning Impact of Taxation and Inflation on Business and Role of FM Impact of Depreciation and FM

B. Objectives of Financial Management

a. Profit Maximization as an objective of FM b. Wealth Maximization as an objective of FM c. Value Maximization as an objective of FM

C. Techniques of Financial Management (An Introduction) Value Added Teaching: Case Analysis

Module Two Module 2: Analysis of Financial Statement as a Technique of Financial Management Session- 2 , 3 & 4 ( Teaching Hours per Session: 2)
A. Analysis of Financial Statement as a technique to derive value information for Effective and Successful Financial Management
a. b. c. d. Objectives of Financial Statements, Different Types and forms of Financial Statements Meaning of FSA Objectives and significance of FSA Limitations of FSA

B. Various tools / Methods used for Financial Statement Analysis

a. b. c. d. e. Comparative Financial Statements Common Size Financial Statements Trend Analysis Ratio Analysis Funds Flow Analysis Cash flow Analysis through Cash Flow Statements

f.

Value Added Teaching: Case Analysis

Module Three Module 3: Financing Decision Analysis: Sources of Finance No. of Sessions- 5 & 6 ( Teaching Hours Per Session: 2)
A. Need for financing B. Classification of various sources of Finance C. Short term Sources of financing or Sources of working capital financing
a. b. c. d. e. f. g. Implicit Cost of Cash Discount Commercial paper Trade Credit Public Deposits Bank Finance Bill of Exchange Factoring

D. Long Term and Medium Term Sources of Financing

a. Domestic Sources of Finance: Equity capital and Debt Capital: Various types of both. b. Foreign Capital ( FDI, Euro Issues and FCB)

Value Added Teaching: Case Analysis

Module Four

Module 4: Long Term & Investment Decision Analysis - I No. of Sessions- 7, 8 & 9 ( Teaching Hours: 2)
A. Time Value of Money (Calculation of Interest rates and Discounting of Cash flows)
a. Techniques to calculate Time Value of Money, Compounding and Discounting b. Application of compounding and discounting c. Term Structure and Interest rates

B. Cost of Capital
a. b. c. d. e. f. Cost of Equity Capital Cost of Retained Earnings Cost of Preference Capital Cost of Debt Weighted Cost of Capital Opportunity and Marginal Cost of Capital

Value Added Teaching: Case Analysis

Module Five

Module 5: Long Term & Investment Decision Analysis II

No. of Sessions- 10, 11 & 12 ( Teaching Hours: 2)
A. Capital Structure Planning
a. b. c. d. e. f. Concept of Capital What is capital structure Financial Structure and Capital Structure Classification of Capital Structure Planning of Capital Structure Capital Structure Trends in Private and Public Sector of India

B. Capital Budgeting: Principles and Techniques

a. b. c. d. e. Nature of Capital Budgeting Evaluation (Investment Appraisal Techniques) Project selection under Capital Rationing Inflation and Capital Budgeting Taxation and Capital Budgeting

Value Added Teaching: Case Analysis

Module Six

Module 6: Current Asset Management through Working Capital Management

No. of Sessions- 13, 14 & 15 ( Teaching Hours: 2)

A. Scope, Concepts, Forecasting and Financing of Working Capital a. Meaning and Objectives of Working Capital b. Working Capital: A Tradeoff between liquidity and Profitability c. Factors Determining WC Requirement d. Forecasting Working Capital Requirement e. Financing Current Assets f. Estimation of Working Capital g. Methods of WC Estimation B. Management of Components of Working Capital a. Introduction b. Working Capital Management Strategies c. Inventory Management d. Cash & Marketable Securities Management e. Receivables Management Value Added Teaching: Case Analysis- 1 Bharat Heavy Electricals Ltd. Case Analysis- 2 TISCO & SAIL

Module Seven

Module 7: Dividend Decision Analysis: Dividend And Retention Policies

No. of Sessions- 16 & 17 (Teaching Hours: 2)
A. B. C. D. E. F. Meaning and Kinds of Dividend Determinants of Dividend Policy Some Dividend policies Formulating a Dividend Policy Dividend Distribution Procedure Theories related to Valuation of Dividend

Value Added Teaching: Case Analysis