Format No. MBA/1.

01/F2010-2012
Issue No.01 Rev. No 2 Dated: December 13, 2010
______________________________________________________________________________

DOON UNIVERSITY
School of Management
Dehradun
__________________________________________________________________
COURSE PLAN

Programme : Masters in Business Administration (MBA)

Course : Business Administration
Semester : II
Session : January to June 2010
Batch : 2010-2012
Subject Code : SMS 511
No. of credits : 3
Subject: Financial Management

Prepared by : Dr. Sudhanshu Joshi

Email : drsudhanshu.joshi@gmail.com

Approved By

Head/Incharge Vice Chancellor

 DOON UNIVERSITY (Established by the Government of Uttarakhand)
School of Management Dehradun

Doon University Tel : +91-135-2533108/2533107

Mothrawala Road, Kedarpur Fax : +91 135- 2532014
P.O.Ajabpur, Dehradun Web : www.doonuniversity.ac.in
Uttrakhand -248 004 (U K)

COURSE PLAN (DETAILED)

A. LEVEL OF KNOWLEDGE REQUIRED

Prerequisite: Graduate from any discipline with analytical skills. Familiarity with basic concepts terms of Financial
& Management Accounting.

B. LEARNING OBJECTIVES
To gain expert knowledge of corporate finance & decision making.

C. COURSE OUTLINE

PEDAGOGY

1. Interactive approach during the study. Students shall be advised in advance to prepare the topics for discussion in
the class).
2. Work in small groups and personalized teaching.
(Student counseling, tutoring, and individual projects/ assignments, exercises)
 Presentations (Individual/Group)
 Case Study (Case Laws)
 Online Assignments
 Role Play
 Group Discussion
 Managerial Issues

D. COURSE COMPLETION PLAN

Lectures: 4 LH/week; Guest lecture: 1 LH/Unit*;

Total hours per week: 4 contact hours per week is used to introduce new material and solve sample exercises/ case
studies. Tutorial time will be used for problem solving exercises, taking up tests, assignments and discussing
assignments.

* Subject to administrative approval

E. EVALUATION & GRADING

The students shall be evaluated in the Courses through the following examination.

(a) FIRST PRE-FINAL EXAMINATION with the final weightage of 15 marks to be held during 6/7th Week
of the Semester.. In Courses with no Practical the weight age shall be 20 Marks.

(b) SECOND PRE-FINAL EXAMINATION with the final weightage of 15 marks to be held during 12/13th
Week of the Semester in Coursers with Practical Component. In Courses with no Practical the weight age shall
be 20 Marks.

Course Plan- Dr. Sudhanshu Joshi- Jan-June 2011 Page 2

 DOON UNIVERSITY (Established by the Government of Uttarakhand)
School of Management Dehradun

Doon University Tel : +91-135-2533108/2533107

Mothrawala Road, Kedarpur Fax : +91 135- 2532014
P.O.Ajabpur, Dehradun Web : www.doonuniversity.ac.in
Uttrakhand -248 004 (U K)

(e). In case the Instructors decide to administer announced/un-announced quizzes with weightage of not
exceeding
5 marks each, the weightage of the Pre-Final Examinations(s) would be adjusted accordingly. Case
Studies/Project Work/Assignment shall have a final weightage of 10-Marks in Courses with no Practical
components.

(f).Semester Final Examination: With a final Weightage of 50 Marks shall be conducted in the 21 st Week of the
semester.

Attendance
Students are required to have minimum attendance of 85% in each subject. Students with less than said percentage shall not
be allowed to appear in the end semester examination.

Cell Phones and other Electronic Communication Devices: Cell phones and other electronic communication devices (such
as Blackberries) are not permitted in classes, Tests or the Mid/Final Examination. Such devices MUST be turned off in the
class room during the lectures too.

E-Mail and LMS: Each student in the class should have an e-mail id to access the Google e-groups regularly
(doon_sms2010@googlegroups.com). Regularly, important information – Date of conducting class tests, guest lectures,
syndicate sessions etc. to the class will be transmitted via e-mail ONLY.

F. DETAILED SESSION PLAN

TOPICS
SESSIONS
READINGS APPROACH
(No.)

Introductory Session: Financial Statement Analysis for 2 e-Docket/googlegroup Interactive Classroom

Discussion.
Finance Decision
Objective: The Introductory Session is primarily framed to
understand the logical and functional linkage between Financial
Statement Analysis and Financial Decision Making and also a quick
recap on previous semesters course leanings

Unit I –Environment of Business Finance

Objective: The Unit primarily focused understanding the need of Finance and its Management in the business firm. It also give a introductory
information about different method to evaluate the efficiency of a Financial System.

Unit I : Environment of Business Finance Total LH=7

Course Plan- Dr. Sudhanshu Joshi- Jan-June 2011 Page 3

 DOON UNIVERSITY (Established by the Government of Uttarakhand)
School of Management Dehradun

Doon University Tel : +91-135-2533108/2533107

Mothrawala Road, Kedarpur Fax : +91 135- 2532014
P.O.Ajabpur, Dehradun Web : www.doonuniversity.ac.in
Uttrakhand -248 004 (U K)

1. Introduction 5
2. Modern Approach to Financial Management 1. PPT & Interactive
3. Interrelationship of Investment, Financing & Decision Discussion
4. Significance of Financial Management 2. Assignment –
Teaching notes and E-Dockets (individual= 2nos)
5. Reasons for Centralizing Finance Function
(will be provided in advance) (Group=1no.) 5*4 groups
6. Objectives of a firm
7. Financial Planning and Decision Making Process Recommended Text Book:
8. Taxation and Financial Management Ravi M. Kishore, Taxmann
9. Techniques of Financial Management Publication
Classroom Discussion: Indian Financial System 1 Teaching notes and E-Dockets Group Presentation(allotted
Classroom sessions).
GUEST LECTURE (*Subject to administrative Approval) 1 *Lecture notes will be provided inInteractive discussion.
Advance(if any)
Revision Session & Class Test 1

Unit II- Short Term Investment and Financing Decisions

Objective: To provide an introduction to the firm level short term funds planning, Management and Decisions.

Unit II: Short Term Investment and Financing Decisions Total

=6+7 LH
(a). Working Capital Planning
1. Introduction 4 Teaching notes and E-Dockets 1. Case Studies
2. Objectives of Working Capital Management (will be provided in advance) 2. Assignment –
3. Factors Determining Working Capital Requirement Recommended Text Book: (individual= 2nos)
4. Strategies in Working Capital Management Prasanna Chandra (Group=1no.) 5*4 groups
5. Working Capital Ratios
6. Working Capital Leverage
7. Estimation of Working Capital
Classroom Discussion: Case Study on Working Capital 1 Teaching notes and E-Dockets Group Presentation
Management
GUEST LECTURE (*Subject to administrative Approval) 1 *Lecture notes will be provided inInteractive discussion.
Advance(if any)
Revision Session & Class Test 1
(b). Working Capital Finance 2
1. Sources of Working Capital Finance Teaching notes and E-Dockets 1. Role Play
2. Case: Working Capital Finance from Banks (will be provided in advance) 2. Case Study
3. Other Sources of Working Capital Finance Recommended Text Book: 3. Assignment –
R.N. Joshi (individual= 2nos)
4. Security for Short-term Financing (Group=1no.) 5*4 groups

Revision session: Working Capital Planning & Financing – 1

Quiz (I)
(c). Inventory Management 2 Teaching notes and E-Dockets
1. Introduction (will be provided in advance) 1. Interactive Sessions through
2. Requirements of Stock Control Case laws.
3. Economic Order Quantity 2. CLB Manual
4. Fixation of Inventory Levels
5. Inventory Analysis: VED Analysis/FNSD Analysis/ABC
Analysis/Pareto Analysis
6. Just in Time(JIT) & Inventory Management
7. Supply Chain & Inventory Management

Course Plan- Dr. Sudhanshu Joshi- Jan-June 2011 Page 4

 DOON UNIVERSITY (Established by the Government of Uttarakhand)
School of Management Dehradun

Doon University Tel : +91-135-2533108/2533107

Mothrawala Road, Kedarpur Fax : +91 135- 2532014
P.O.Ajabpur, Dehradun Web : www.doonuniversity.ac.in
Uttrakhand -248 004 (U K)

Revision session: Bullwhip Effect-Bear Game 2

Unit III To VI- Capital Structure and Dividend Decisions
Objective: To understand the significance of Capital Structure in accordance to long term financial Planning and Dividend Decisions.

Unit III : Cost of Capital & WACC Total= 3 LH

1. Introduction 3 Teaching notes and E-Dockets
2. Cost of Equity Capital (Ke) (will be provided in advance) Assignment –
3. Cost of Retained Earnings (Kr ) Recommended Text Book: (individual= 2nos)
4. Cost of Preferred Capital (Kp ) Prasanna Chandra (Group=1no.) 5*4 groups
5. Cost of Debt (Kd)
6. Weighted Average Cost of Capital(WACC)
7. Opportunity Cost of Capital
8. Marginal Cost of Capital
GUEST LECTURE (*Subject to administrative Approval) 1 *Lecture notes will be provided inInteractive discussion.
Advance(if any)
Revision session: Cost of Capital & WACC - Quiz 1
Unit IV: Operating & Financial Leverages Total =3 LH
1. Meaning of Leverage 2 Teaching notes and E-Dockets
2. Activity Leverage (will be provided in advance)
3. Structural leverage Recommended Text Book:
4. Gearing Prasanna Chandra

Revision Session: Case Study on Operating & Financial 1

Leverage
Unit V: Long Term Investment and Cash Flow Estimation Total= 10
LH
(a). Project Planning & Cash Flow Estimation 3 1.Situation Analysis &
1. Introduction Simulation
2. Capital Investment Process Teaching notes and E-Dockets 2. Assignment –
3. Project Planning (will be provided in advance) (individual= 2nos)
(Group=1no.) 5*4 groups
4. Project Appraisal by Financial Institutions
Classroom Discussion: Project Appraisal using Off-Balance 1
Sheet Techniques

GUEST LECTURE (*Subject to administrative Approval) 1 *Lecture notes will be provided inInteractive discussion.
Advance(if any)
(b). Investment Appraisal and Capital Rationing 1. Interactive Sessions through
1. Introduction Teaching notes and E-Dockets Excel Modeling using Oracle’
2. Investment Appraisal Techniques 4 (will be provided in advance) Crystal Ball
3. Capital Rationing Recommended Text Book: 2. PPT & Smartboard
Prasanna Chandra 3. Assignment –
(individual= 2nos)
(Group=1no.) 5*4 groups
Classroom Discussion: Case Study on Investment Appraisal 1
Teaching notes and E-Dockets Group Presentation

GUEST LECTURE (*Subject to administrative Approval) 1 *Lecture notes will be provided inInteractive discussion.
Advance(if any)

Course Plan- Dr. Sudhanshu Joshi- Jan-June 2011 Page 5

 DOON UNIVERSITY (Established by the Government of Uttarakhand)
School of Management Dehradun

Doon University Tel : +91-135-2533108/2533107

Mothrawala Road, Kedarpur Fax : +91 135- 2532014
P.O.Ajabpur, Dehradun Web : www.doonuniversity.ac.in
Uttrakhand -248 004 (U K)

Revision Session (Classroom Test) 1

Unit VI: Dividend Policies and Value of Firm Total=5 LH

1. Introduction 4
2. Determinants of Dividend Policy Teaching notes and E-Dockets
3. Dividend Policies (will be provided in advance)
4. Gordon Growth Valuation Model Recommended Text Book:
Prasanna Chandra
5. Walter’s Valuation Model
6. Modigliani and Miller’s Dividend Irrelevancy Theory
7. Capital Asset Pricing Model (CAPM)
Classroom Discussion: Legal Provisions as to Payment of 1
Dividends
GUEST LECTURE (*Subject to administrative Approval) 1 *Lecture notes will be provided inInteractive discussion.
Advance(if any)
Total Sessions (Approx.) 40
(Excluding Guest Lectures)
Guest Lectu res* = 6 hrs (not in cluded as LH)

*One Session = 01Hr

Instructions

a) Students need to submit individual assignment and then make a presentation (max. 7 minutes)
(Details are given along with assignment topics)
b) All students will be divided in groups comprising of 5 students in each group and be given a
relevant topic. Each group is expected to write a synopsis, carry out the entire assignment
c) Viva-voce would be conducted for those groups for the Assignments, if adequate time for
presentations is not there.
d) Students are expected to read the concerned session’s contents in advance before coming to the
class.
e) The session will be made interactive through active participation from students. The entire
session will be conducted through question-answer, discussion, current practices, examples,
problem solving, Brain storming activities, role plays, group discussions and presentations etc.
f) The case would be given to selected groups (Presenting and Critiquing Groups) who may be
asked to analyze the case/present their views and defend the queries. But the entire class is
expected to be prepared for the same and participate in case discussion.
g) Students need to go through the websites mentioned in the course plan and may be asked for
Book Reviews or Abstract presentation on selected relevant topics from referred journals/
business magazines – HBR/Vikalpa/Indian Management/ Business India/ Forbes/ Business World
etc.
h) All schedules/announcements must be strictly adhered to.

Course Plan- Dr. Sudhanshu Joshi- Jan-June 2011 Page 6