Fin

LESSON PLAN FOR THEORY

Subject: Financial Management Subject Code: 12MBA25Branch: MBA Semester: IIFaculty: Academic Year: 2012-2013 Section:

Sl.No

Unit No.

Lesson TopicsPedagogy

Planned

Date

Actual Date

Signature

Remarks

1

1

Introduction to Financial Management PPT

2Objectives of Financial Management. Changing role of finance managers.

PPT

3Interface of Financial Management with other functional areas.

PPT

4Primary market, Secondary Market PPT

5Stocks & Commodities Market, Money Market, Forex Markets.

PPT

6

2

Sources of Financing PPT

7Shares, Debentures, Term loans, Lease financing. PPT

8Hybrid financing, Venture capital investing. PPT

9Warrants. Angel investing Private equity PPT

10 Warrants and convertibles PPT11 3 Time value of money PPT

12Future value of single cash flow & annuity PPT

13present value of single cash flow, annuity & perpetuity PPT

14Simple Interest & Compound Interest PPT

15Capital Recovery & Loan Amortization PPT

16Problems on future value and present values

Problem

solving


Problem

solving18 Problems on future value Proble

and present valuesm

solving


Problem

solving


Problem

solving

21

4

Cost of capital – basic concepts PPT

22Cost of Debenture and Preference Capital PPT

23Cost of Equity and Retained earnings PPT

24Weighted Average Cost of Capital PPT

25 Problems on cost of capitalsProble

m solving


m solving


m solving


m solving

295 Investment decisions -–

Investment evaluation techniques

PPT

30Net Payment Period, Accounting rate of return PPT

31Net Present Value, Internal Rate of return and Modified Internal Rate of Return

PPT

32Estimation of cash flow for new project and replacement projects

PPT

33Problems on investment decisions

Problem

solving


Problem

solving35 Problems on investment

decisionsProble

m

solving


Problem

solving


Problem

solving


Problem

solving

39

6

Working Capital Management – factors influencing working capital requirements

PPT

40Current asset policy and current asset finance policy PPT

41Determination of operating cycle and cash cycle

Problem

solving

42Estimation of working capital requirements of a firm

Problem

solving

43Problems on working capital requirements

Problem

solving


Problem

solving

45

7 Capital structure and dividend decisions – Planning the capital structure

PPT

46Leverages: Determination of operating leverage, financial leverage and total leverage

PPT

47Dividend Policies and types of dividend policies PPT

48 Problems on leveragesProble

m solving


m solving

50 Problems on leverages Problem

solving


m solving


m solving

53

8

Emerging Issues in Financial management PPT

54Derivatives, Mergers and Acquisitions PPT

55Behavioral Finance, Financial Modeling. PPT

56Financial engineering, risk management. PPT

Signature of Faculty Director


Subject: Financial Management Subject Code: 12MBA25Branch: MBA Semester: IIFaculty: Academic Year: 2012-2013 Section:

Sl.No

Unit No.


Planned

Date

Actual Date

Signature

Remarks

1

1

Introduction to Financial Management PPT

2Objectives of Financial Management. Changing role of finance managers.

PPT

3Interface of Financial Management with other functional areas.

PPT

4Primary market, Secondary Market PPT

5Stocks & Commodities Market, Money Market, Forex Markets.

PPT

6 2 Sources of Financing PPT7 Shares, Debentures, Term PPT

loans, Lease financing.

8Hybrid financing, Venture capital investing. PPT

9Warrants. Angel investing Private equity PPT

10 Warrants and convertibles PPT11

3

Time value of money PPT

12Future value of single cash flow & annuity PPT

13present value of single cash flow, annuity & perpetuity PPT

14Simple Interest & Compound Interest PPT

15Capital Recovery & Loan Amortization PPT


Problem

solving


Problem

solving


Problem

solving


Problem

solving


Problem

solving

21 4 Cost of capital – basic concepts PPT

22Cost of Debenture and Preference Capital PPT

23Cost of Equity and Retained earnings PPT

24Weighted Average Cost of Capital PPT


m solving


m solving

27 Problems on cost of capitals Problem

solving


m solving

29

5

Investment decisions -– Investment evaluation techniques

PPT

30Net Payment Period, Accounting rate of return PPT

31Net Present Value, Internal Rate of return and Modified Internal Rate of Return

PPT

32Estimation of cash flow for new project and replacement projects

PPT


Problem

solving


Problem

solving


Problem

solving


Problem

solving


Problem

solving


Problem

solving

39

6 Working Capital Management – factors influencing working capital requirements

PPT

40Current asset policy and current asset finance policy PPT

41Determination of operating cycle and cash cycle

Problem

solving

42Estimation of working capital requirements of a firm

Problem

solving43 Problems on working capital

requirementsProble

m solving


Problem

solving

45

7

Capital structure and dividend decisions – Planning the capital structure

PPT

46Leverages: Determination of operating leverage, financial leverage and total leverage

PPT

47Dividend Policies and types of dividend policies PPT


m solving


m solving


m solving


m solving


m solving

53

8

Emerging Issues in Financial management PPT

54Derivatives, Mergers and Acquisitions PPT

55Behavioral Finance, Financial Modeling. PPT

56Financial engineering, risk management. PPT



Subject: Project Appraisal, Planning & Control Subject Code: 10MBAFM425

Branch: MBA Semester: IVFaculty: Academic Year: 2012-2013

Sl.No

Unit No.


Planned

Date

Actual Date

Signature

Remarks

1

1

Planning and analysis, capital budgeting, phases, levels of decision making, objectives

PPT

2Resource allocation-framework, key criteria for allocation of resources.

PPT

3Elementary investment strategies, portfolio planning tools

PPT

4

Strategic position and actual evaluation, aspects relating to conglomerate diversification, interface between strategic planning & capital budgeting.

PPT

5

2

Generation and screening of project ideas, monitoring the environment, regulatory framework for projects, corporate appraisal

PPT

6

Preliminary screening, project rating index, source of positive NPV, qualities of a successful entrepreneur

PPT

7

The porter model, market and demand analysis, situation analysis & specification of objectives, collection of secondary information.

PPT

8Conduct of market survey, characteristics of the market demand forecasting

PPT

9

Technical analysis, mate4rial inputs and utilities, manufacturing process & technology, product mixes, plant capacity

PPT

10

Location and site, machines & equipment, structure and civil works, project charts and layouts, work schedules

PPT

11

3

Financial analysis-estimation of cost of project and means of financing, estimating of sales & production, cost of production.

PPT

12

Working capital requirements & its financing, estimates of working results, break even points, projected cash flow statements

PPT

13Projected cash flow statements

Problems

14Projected balance sheet, projected cash flow

Problems

15Basic principles of measurements, components of cash flow streams

Problems

16

Viewing of project from other perspectives, cash flow by financial institutions & planning commission, biases in cash flow estimation (assignment)

Problems

17Appraisal criteria – Pay back period, benefit cost ratio.

Problems

18 Net present valueProblem

s

19Internal rate of return & MIRR

Problems

20Internal rate of return & MIRR

Problems

21Investment appraisal in practice (assignment)

Problems

22 Investment appraisalProblem

s

234 Types & measures of risk,

simple estimation of riskPPT

24Sensitivity analysis, scenario analysis

PPT

25 Montecarlo simulation PPT

26 Decision tree analysisProblem

s


s


s29 Selection of project, risk

analysis in practiceProblem

s

30Determination of economic life

Problems

31Interrelation between investment & financing aspects

Problems

32Inflation capital budgeting, international capital budgeting

Problems

33

5

Social cost benefit analysis PPT34 Social cost benefit analysis PPT35 UNIDO approach PPT

36Rationale of UNIDO approach

PPT

37 Little Mirrless approach PPT

38

6

Quantitative factors in capital, budgeting, strategic aspects

PPT

39Linear programming approach

Problems

40Environmental appraisal of projects

Problems

41Environmental resources, impact assessment and statement.

PPT

42

7

Project financing in India, means of finance

PPT

43Norms & policies of financial institutions, SEBI guidelines

PPT

44 Sample financial plans PPT

45Structure of financial institutions in India

PPT

46

Schemes of assistance, term procedures, project appraisal by financial institutions

PPT

478 Project management, forms

of project, project planningPPT

48Project control, human aspects of project management.

PPT

49Prerequisites of successful project implementation

PPT

50Network techniques for projects development, time estimation

problems

51Determination of critical path

problems

52 Scheduling when resources are limited, PERT – CPM

problems

model

53 Problems on PERT – CPM problem

s

54Network cost system, project review and administrative aspects

problems

55 Performance evaluationproblem

s

56Capital budgeting systems of organization

problems


FINANCIAL MANAGEMENT

Sub Code: 12MBA25 IA Marks: 50No. of Lecture Hrs /week: 04 Exam Hrs: 03Total No. of Lecture Hrs: 56 Exam Marks: 100Practical Component: 01 Hr/ Week

Module I (5 Hours)Financial management – Introduction to Financial Management; Objectives of Financial Management – Profit Maximization and Wealth Maximization. Changing role of finance managers. Interface of Financial Management with other functional areas. Indian financial system – Primary market, Secondary Market – Stocks & Commodities Market, Money Market, Forex Markets. (Theory Only)

Module II (5 Hours)Sources of Financing: Shares, Debentures, Term loans, Lease financing, Hybrid financing, Venture capital investing, Warrants. Angel investing Private equity, Warrants and convertibles (Theory Only)

Module III (10 Hours)Time value of money –Future value of single cash flow & annuity, present value of single cash flow, annuity & perpetuity. Simple Interest & Compound Interest, Capital Recovery & Loan Amortization.

Module IV (8 Hours)Cost of Capital Cost of capital – basic concepts. Cost of debenture capital, Cost of preferential capital, cost of term loans, cost of equity capital (Dividend discounting and CAPM model). Cost of retained earnings. Determination of Weighted average cost of capital (WACC) and Marginal cost of capital.

Module V (10 Hours)Investment decisions -– Investment evaluation techniques – Net present value, Internal rate of return, Modified internal rate of return, Profitability index, Payback period, discounted payback period, Accounting rate of return, Estimation of cash flow for new project and replacement projects.

Module VI 6 Hours)Working Capital Management – factors influencing working capital requirements. Current asset policy and current asset finance policy. Determination of operating cycle and cash cycle; Estimation of working capital requirements of a firm (does not include Cash, Inventory & Receivables Management)

Module VII (8 Hours)Capital structure and dividend decisions – Planning the capital structure. (No capitalStructure theories to be covered); Leverages – Determination of operating leverage, financial leverage and total leverage. Dividend policy – Factors affecting the dividend

policy – dividend policies- stable dividend, stable payout. (No dividend theories to be covered).

Module VIII (4 Hours)Emerging Issues in Financial management: Derivatives, Mergers and Acquisitions, Behavioral Finance, Financial Modeling, Financial engineering, risk management. (Theory only)

Practical Components: Identifying the small or medium sized companies and understanding the

Investment evaluation techniques used by them. Using the annual reports of selected companies, students can study the

working capital management employed by them. Students can also compare the working capital management of companies in the same sector.

Students can choose the companies that have gone for stock split and Bonus issue in the last few years and study the impact of the same on the stock price.

PROJECT APPRAISAL, PLANNING & CONTROLSub Code: 12MBAFM425 IA Marks: 50No.of Lecture Hrs/week: 04 Exam Hrs: 03 HoursTotal No. of Lecture Hrs: 56 Exam Marks: 100Practical Component: 01 Hr/ Week

Module I (4 Hours)Planning & Analysis Overview: Phases of capital budgeting – Levels of decision making –objective. Resource Allocation Framework: Key criteria for allocation of resource – elementary investment strategies – portfolio planning tools – strategic position and action evaluation –aspects relating to conglomerate diversification – interface between strategic planning and capital budgeting.

Module II (6 Hours)Generation and screening of project ideas: Generation of ideas – monitoring the environment – regulatory framework for projects – corporate appraisal – preliminary screening – project rating index – sources of positive NPV – qualities of a successful entrepreneur – the porter model for estimation of profit potential of industries. Market and demand analysis: Situational analysis and specification of objectives – collection of secondary information – conduct of market survey – characterization of the market – demand forecasting – market planning.Technical analysis: Study of material inputs and utilities – manufacturing process and technology – product mixes – plant capacity – location and site – machinery and equipment – structures and civil works – project charts and layouts – work schedule

Module III (12 Hours)Financial Analysis: Estimation of cost of project and means of financing – estimates of sales and production – cost of production – working capital requirement and its financing – estimates of working results – breakeven points – projected cash flow statement – projected balance sheet.Project cash flows: Basic principles of measurement of cash flows – components of the cash flow streams – viewing a project from different points of view – definition of cash flows by financial institutions and planning commission – biases in cash flow estimation. Appraisal criteria: Net Present Value – benefit cost ratio – internal rate of returns urgency – payback period – accounting rate of returns – investment appraisal in practice.

Module IV (10 Hours)Types and measure of risk – simple estimation of risk – sensitivity analysis – scenario analysis – montecarlo simulation – decision tree analysis – selection of project – risk analysis in practice.Special decision situations: Choice between mutually exclusive projects of unequal life –optimal timing decision – determination of economic life – inter-relationships between investment and financing aspects – inflation and capital budgeting.

Analysis of firm and market risk: Portfolio theory and capital budgeting – capital asset pricing model – estimation of key factors – CAPM and Capital budgeting

Module V (5 Hours)Social Cost Benefit Analysis (SCBA): Rationale for SCBA – UNIDO approach to SCBA –Little and Mirle approach to SCBA.

Module VI (4 Hours)Multiple projects and constraints: Constraints – methods of ranking – mathematical programming approach – linear programming model.Qualitative Analysis: Qualitative factors in capital budgeting – strategic aspects – strategic planning and financial analysis – informational asymmetry and capital budgeting – organizational considerations.Environmental appraisal of projects: types and dimensions of a project – meaning and scope of environment – Environment – Environmental resources values – environmental impact assessment and environmental impact statement.

Module VII (5 Hours)Project financing in India: Means of finance – norms and policies of financial institutions – SEBI guidelines – Sample financing plans – structure of financial institutions in India – schemes of assistance – term loans procedures – project appraisal by financial institutions.

Module VIII (10 Hours)Project Management: Forms of project organization – project planning – project control – human aspects of project management – prerequisites for successful project implementation.Network techniques for project management – development of project network – time estimation – determination of critical path – scheduling when resources are limit – PERT and CPM models – Network cost system (Only problems on resources allocation and resources leveling)Project review and administrative aspects: Initial review – performance evaluation – abandonment analysis – administrative aspects of capital budgeting – evaluating the capital budgeting system of an organization.

Fin

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