Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

NCRDS STERLING INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to University of Mumbai)

MMS 2011-13

SEMESTER - II

COURSE WARE

FINANCIAL MANAGEMENT

Course faculty Prof. Rakhi R. Shrivastava

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Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

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

No. of sessions: 18 (2 Hrs per session) Hr PS on Saturday)

MAX. MARKS 100

Tutorials: 8 (1

TEACHNING FACULTY: Prof.

Rakhi R. Shrivastava _____________________________________________________________________________ ____________________________

Module one

Module1:ScopeandObjectivesofFinancialManagement
Session1(TeachingHoursperSession:2) A. ScopeofFinancialManagement
a. b. c. d. e. f. WhyFinancialManagement?(FunctionsofFinancialManagement) MajorDecisionsinFinancialManagement ImportanceofFinancialManagementinBusinessWorld RiskandReturninFinancialPlanning ImpactofTaxationandInflationonBusinessandRoleofFM ImpactofDepreciationandFM

B. ObjectivesofFinancialManagement 2|For Private Circulation and classroom discussion only

Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester
a. b. c. ProfitMaximizationasanobjectiveofFM WealthMaximizationasanobjectiveofFM ValueMaximizationasanobjectiveofFM

C. TechniquesofFinancialManagement(AnIntroduction) ValueAddedTeaching:CaseStudyAnalysis:FinancialManagementatHeroHonda Ltd.

Module Two

Module2:AnalysisofFinancialStatementasaTechniqueofFinancial Management
Session2,3&4(TeachingHoursperSession:2) A. AnalysisofFinancialStatementasatechniquetoderivevalueinformation forEffectiveandSuccessfulFinancialManagement
a. ObjectivesofFinancialStatements,DifferentTypesandformsofFinancial Statements b. MeaningofFSA c. ObjectivesandsignificanceofFSA d. LimitationsofFSA

B. Varioustools/MethodsusedforFinancialStatementAnalysis
a. b. c. d. e. f. ComparativeFinancialStatements CommonSizeFinancialStatements TrendAnalysis RatioAnalysis FundsFlowAnalysis CashflowAnalysisthroughCashFlowStatements

ValueAddedTeaching:CaseAnalysis:1.BajajAutoLimited:TheUnprecedented GrowthStory 2.PracticalProblems Module Three

Module3:FinancingDecisionAnalysis:SourcesofFinance
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Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

No.ofSessions5&6(TeachingHoursPerSession:2) A. Needforfinancing B. ClassificationofvarioussourcesofFinance C. ShorttermSourcesoffinancingorSourcesofworkingcapitalfinancing

a. b. c. d. e. f. g. ImplicitCostofCashDiscount Commercialpaper TradeCredit PublicDeposits BankFinance BillofExchange Factoring

D. LongTermandMediumTermSourcesofFinancing

a. DomesticSourcesofFinance:EquitycapitalandDebtCapital:Varioustypesof both. b. ForeignCapital(FDI,EuroIssuesandFCB)

ValueAddedTeaching:CaseAnalysisFinancingofNTPC Module Four

Module4:LongTerm&InvestmentDecisionAnalysisI
No.ofSessions7,8&9(TeachingHours:2) A. TimeValueofMoney(CalculationofInterestratesandDiscountingofCash flows)
a. TechniquestocalculateTimeValueofMoney,CompoundingandDiscounting b. Applicationofcompoundinganddiscounting c. TermStructureandInterestrates

B. CostofCapital
a. b. c. d. e. CostofEquityCapital CostofRetainedEarnings CostofPreferenceCapital CostofDebt WeightedCostofCapital

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Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester
f. OpportunityandMarginalCostofCapital

ValueAddedTeaching:CaseAnalysis:1.BharatEngineeringWorks2.Acme ConsultancyLtd. NumericalsandPracticalproblems Module Five

Module5:LongTerm&InvestmentDecisionAnalysisII
No.ofSessions10,11&12(TeachingHours:2) A. CapitalStructurePlanning
a. b. c. d. e. f.

ConceptofCapital Whatiscapitalstructure FinancialStructureandCapitalStructure ClassificationofCapitalStructure PlanningofCapitalStructure CapitalStructureTrendsinPrivateandPublicSectorofIndia

B. CapitalBudgeting:PrinciplesandTechniques
a. b. c. d. e. NatureofCapitalBudgeting Evaluation(InvestmentAppraisalTechniques) ProjectselectionunderCapitalRationing InflationandCapitalBudgeting TaxationandCapitalBudgeting

ValueAddedTeaching:CaseAnalysis:1.GuptaBricks(relatedtoCapital Budgeting) NumericalsandPracticalproblems Module Six

Module6:CurrentAssetManagementthroughWorkingCapital Management
No.ofSessions13,14&15(TeachingHours:2) A. Scope,Concepts,ForecastingandFinancingofWorkingCapital 5|For Private Circulation and classroom discussion only

Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester a. b. c. d. e. f. g. MeaningandObjectivesofWorkingCapital WorkingCapital:ATradeoffbetweenliquidityandProfitability FactorsDeterminingWCRequirement ForecastingWorkingCapitalRequirement FinancingCurrentAssets EstimationofWorkingCapital MethodsofWCEstimation

B. ManagementofComponentsofWorkingCapital a. Introduction b. WorkingCapitalManagementStrategies c. InventoryManagement d. Cash&MarketableSecuritiesManagement e. ReceivablesManagement ValueAddedTeaching:CaseAnalysis1BharatHeavyElectricalsLtd. CaseAnalysis2TISCO&SAIL 3.MarutiUdyogLimited. Practicalproblems Module Seven

Module7:DividendDecisionAnalysis:DividendAndRetention Policies
No.ofSessions16&17(TeachingHours:2)
A. B. C. D. E. F. MeaningandKindsofDividend DeterminantsofDividendPolicy SomeDividendpolicies FormulatingaDividendPolicy DividendDistributionProcedure TheoriesrelatedtoValuationofDividend

ValueAddedTeaching:CaseAnalysis:ICIIndiaLimitedBuybackofShares

Session 18
Revision & SGD 6|For Private Circulation and classroom discussion only

Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

Prescribed Text Book and Additional Reference Text Books

1. I M Pandey, (10th Edition) Financial Management, Vikas Publication, New Delhi 2. MY Khan and PK Jain (6th Edition) Financial Management Tata McGraw Hill Pvt Ltd. 3. Prasanna Chandra (5th Edition) Financial Management, Tata McGraw Hill Pvt Ltd. 4. Rajiv Srivastava and Anil Misra Financial Management, Oxford Higher Education

Current Vista (Trends) of Finance World through:

Daily news paper reading and reading leading business and finance magazines will be very useful for the students. Students are required to come to the class with update knowledge about current issues in the business world, Economy and in the financial system. 1. The Economic Times (Newspaper) 2. The Financial Express (Newspaper) 3. Business Standard (News Paper) 4. Business Today ( Magazine 5. Business World. (Magazine) Evaluation Pattern:
This subject carries 100 marks, out of which internal evaluation is for 40 marks and 60 marks are for external evaluation. The internal assessment breakup for 40 marks goes as follows: Internal & External Evaluation

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Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester
Type of test Home Assignment Quiz/Class Assignment Seminar & Group discussion Discipline and Attendance Total (A) Term End Examination (B) Grand Total Maximum marks 10 20 20 10 --Marks after conversion 10 10 10 10 40 60 100

Teaching pedagogy
The course objectives will be achieved by lecture method, individual and group assignments, case discussion, quizzes, articles, presentations etc. Entire pedagogy is envisaged to be learner centric. The class will be divided into 10 groups. Each group will be responsible to accomplish various assignments given from time to time. For each session, topic will be announced in advance, so it is essential that students should come prepared for the class to discuss the material due for the session. The students will be informed for the dates of submission and presentation of assignments.

FINANCE NEWS ANALYSIS: Each group will have to identify a news related to finance field published in any national daily during one month. Each group will analyze the news bringing out the financial concepts and their application and make a presentation.

CASE ANALYSIS: This covers the analysis of the given cases. The same case will be given to all the groups. Any group will be asked to make a presentation followed by the answering the questions by students and the faculty and expressing the view points of the groups. INDIVIDUAL EXERCISES: These include class tests, quiz, , Internet exercises and home-assignment solutions and submission in time.

INTERNAL ASSESSMENT ACTION PLAN

Internal Assessment plan given below is in general. Kindly follow the above table for university modes of internal evaluation. 8|For Private Circulation and classroom discussion only

Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

Quizzes & Class Assignment:

There will be two quizzes of (10+10+20) questions. First quiz will be based on 1,2,3, modules prescribed as syllabus for this quiz.. You are advised to update yourself as soon as the topic is taught in the class for better scores. Second quiz will have remaining modules as syllabus. The best quiz out of two will be counted for assessment, so good preparation is must. Or Class Assignment will be conducted based on the two modules taught in the class. In this One essay type question will be given to the students and they have to write the answer in logical language. Any one of the following forms of class assignment will be followed.

Class Assignments:
a. b. c. d. common Conceptual question (answer will be different). problem set Case Study Analysis writing a case let

Home Assignment:

Topics will be allotted group wise to the students for this assignment. Students are required to write detailed case study on the same and submit the same in hard as well as soft copy. Date of submission will be displayed on the notice board.

Topics for Home Assignment: To be given in the class.

Attendance:
Disciplined behavior in the class will be foremost basis to award attendance.

Seminar & Group Discussion( Presentation): (20)

In the SGD, students will present a case study analysis. These students will be known as paper presenters. The other group will ask questions based on the content of the case study presented. This group will be called Discussion panel group.

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Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester Each paper presenter group consists of 5 students. On each turn 1 group i.e. 5 students) will present papers and a group of 5 discussion panel members will ask logical questions to them. The class will maintain proper discipline. If not, it will be taken seriously and negative marking will be done for those students as disciplinary action. Each group will be given a topic on which the group members will write the paper. Discussion panel is required to study the topic thoroughly so that they can ask suitable questions to the group. Discipline, group behavior, communication skills, query handling, language proficiency, clarity of thought, logical thinking, quality subject matter etc are the parameters on the basis of which evaluation will be done. The time for each group will be 20 minutes The presentation time will be 10 minutes and 10 minutes will be for discussion.

Topics for Seminar and Group Discussion:

a. To be given in the Class.

Presentation Action Plan:

The tentative plan for seminar and group discussion will go as follows: Week
Wk 1 Wk 2

paper presenter groups

Group 1 Group 2

Discussion Panel group

Group 8 Group, 9

Wk Wk Wk Wk Wk Wk Wk Wk

3 4 5 6 7 8 9 10

Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10

Group,10 Group ,1 Group 7 Group 3 Group 4 Group 5 Group 6 Group 2

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Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

Question Bank:
To study in systematic manner, question bank plays an important role. Dont think that it is the information about important questions but it will cover the whole syllabus and will give an idea what kind of questions can be asked in the examination.

RULES FOR ATTENDANCE, DISCIPLINE, ASSIGNMENT & GENERAL CONDUCT:

Students are hereby informed to be punctual to come to the class. After 10 minutes of the scheduled time of the session, no one will be allowed to enter the class. Students are requested to come in proper dress code. If anybody is found in not up to the mark dress, will be not allowed to sit in the class. Silence, punctuality, regularity, assignment submission in time and discipline all are very essential qualities for effective class room interaction. Severe action will be taken if any student is fount deficient in these. In order to be eligible to appear in the term end examination, one should attend minimum 75% classes.

25% classes one can miss to meet some exigencies such as casual sickness, meeting with parents, attending family functions and hospitalization up to 10 days. Such absence must be supported by required proof in the form of application, medical certificate duly signed by the authority and parents. START STUDYING FROM DAY ONE. SO MANTRA FOR SUCCESS IS STUDY & PRACTICE !

STUDY & PRACTICE !

STUDY &

PRACTICE !
All the assignments should have to be original works of the students. Those who plagiarize will get 00 marks and at the same time their name will be displayed on the Notice Board for public scrutiny. No one will be allowed in the class after the arrival of the teacher. No one can leave the class during the lecture. Timely submission of all assignments is indispensable failing which students will be assessed for lower marks to the extent of number of days of late submission. Class indiscipline will not be tolerated and will attract expulsion from the class. Mobiles and Laptops are not allowed in the class. 11 | F o r P r i v a t e C i r c u l a t i o n a n d c l a s s r o o m d i s c u s s i o n only

Course outline and Session wise Interactive teaching learning Plan Term II: Second Semester

To keep track of one's attendance will be student's responsibility. Attendance doesn't mean physical presence in the class. Disciplined presence and good conduct in the class will be mark worthy criteria to award attendance. Calculators are acceptable in the examination. Students may use only scientific calculator but to use programmable calculator identified by the alphanumeric key board is strictly prohibited. Date of assignment submission will be informed in advance. Marks will be deducted for late submission.

STUDY TIME & How to improve your performance?

Students are expected to prepare a significant amount of material outside of the classroom requirement. Read the chapter once before the lecture and, again, immediately after the lecture.Makeyourownnotes.Accountingneedspracticesodevotesufficient timetopracticetheaccountingtopics. Deviseastrategytoretainwhatyouread,e.g.trytoremembertheformulaand definitions.Basicformulawillnotbesuppliedintheexamination.Thiswillhelp you to write the discussion questions and to solve the numerical problems confidently. WorkoutnumericalproblemsONYOUROWN.Thiswayyoudevelopyour critical thinking capacity and problem solving skills , which is so essentialforsuccessintheFinalExamination. Attendtutorialsarrangedfromtimetotimeasthisisveryimportant. ConsultCourseTeachingFacultyregularlyincaseofanydifficultyregarding numericalsandconcepts. Readingnewspaperandupdatingaboutcurrenteconomicconditions,business worldandFinancescenarioisreallyessentialsoreadnewspaperandbusiness magazinesregularly.

PreparedBy Prof.RakhiR.Shrivastava TeachingFaculty:Finance

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