TEACHING PLAN FORMAT

Institute of Management Studies

Devi Ahilya Vishwavidyalaya, Indore, India

2013 14
Course Code and Title
Credit Hours
Faculty
E-mail Id

FT-20 : FINANCIAL MANAGEMENT

40
Dr. Kapil Jain
Kapil_jain1411@yahoo.com

Course Overview
The course is designed for specialisation in Financial Administration to explain the
students, basic techniques of financial analysis & business valuation. The course provides
linkage between industry analysis, strategic business analysis, accounting analysis,
financial analysis & prospective analysis. It also enables them to learn about how to use
various valuation models as well as the benefits & limitations of these models to value
the corporate entity, pre-requisite in various decision makings.

Learning Outcomes
By getting a comprehensive knowledge with this course, Students would be well versed
about Financial Statements of the corporate, reporting practices & valuation of Business
enterprises thereby developing their analytical skills & their investing & valuing
decisions, which is very much needed in a practical business world & would assist in
exploiting employment opportunities galore.

Pedagogy
Teaching methods included for imparting the subject knowledge are solving
ample amount of numerical, activities in the form of Questionnaires or Quiz in
the class, to augment general awareness & knowledge of business valuations &
analysis. Morever with the help of various Case Studies, practically viewing the
corporate documentations & reporting norms, Sharing corporate experiences, &
discussions about business valuations & laws governing them would make
students well versed about the course.

Examination Scheme:
Assessment Components
External
Internal 1
Internal 2
Internal 3

% Weightage
60
20*
20*
20*

*The best two of the three internal tests are taken giving a combined
weightage of 40% for the internals.

Assignments/Projects/Exercises

% Weightage

The assignments and projects/exercises,

overall class participation etc. are evaluated
on a continuous basis and a final
assessment is done for the third internal.

20 (included as a
part of the third
internal)

Text Books/Reference Books

Analysis of Financial Statement by TS Grewal;
Stephen Penman, Financial Statement Analysis & security
Valuation, Mcgraw Hill
Financial Reporting Practices by M.P Vijay Kumar;
Corporate Valuation by S.D Bala;
Financial Reporting-Volume I & Volume II , published by
ICAI;
Mergers & Acquisitions by Sridhar;
Financial Management by M.Y Khan;

The students are advised to refer the latest editions of the books to remain
updated about the latest introductions in the books.

Session Plan:
Sessions

Topics

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Concept and Nature of financial

management, Goals of Financial
management, Finance function, Scope of
Finance. Organization of Finance
Function, Relationship of Finance Function
with other disciplines, Role and Functions
of finance manager..
Concept and Utility, Future Value of a
Single Cash Flow, Multiple Flows and
Annuity. Present value of a Single Cash
Flow, Multiple Flows and Annuity.
Compounding and Discounting
Techniques, Numerical Problems
Introduction, Concept of Working Capital,
Working Capital Financing, nature &
concepts, management of receivables, cash
and inventory. Planning for Working
Capital management, Determination of
financing mix, Determinants of working
capital, Estimation and Calculation of
Working Capital, Numerical problems
Working Capital Finance, Composition of
ST Financing, Various modes/ methods of
ST Financing, MPBF, management of
current liabilities.
Concept of Leverage, Operating Leverage,
Financial Leverage, and Combined
Leverage. Importance of Leverages,
Relationship of Leverages with Capital
Structure, EBIT-EPS analysis Numerical
problems (leverage ratio).
Concept, Debt and Equity, Equity and
Preference Shares, Debentures, Term
Loans, etc. Lease, Hire purchase & Project
financing. Venture Capital finance.

Chapters/ Readings /
Study Material / Cases

Presentation on Financial
statements (PPT format ) &
Discussions on understanding
the concepts

Case Studies ,Presentations,

Quiz to understand & then
practicals/numerical solved

Explanations of the concepts &

various illustrations solved to
understand different situations

Presentations, Questionnaires
& Discussions along with
providing of written notes

Explaining all the concepts &

Practicals Solved

Introduction, Concept, Definition &

Importance, Assumptions, Cost of Debt,
Cost of Preference shares, Cost of Equity,
Weighted Average Cost of Capital.
Numerical Problems.
Introduction, Concept & Definitions,
Capital Structure Theories- assumptions,
Valuation of Firms- NI Approach & NOI
Approach, Optimum Capital Structure,
MM Approach- Basic Propositions,
Assumptions & Limitations, Designing
Capital Structure and determination of
optimal capital structure.

Discussion of various corporate

terminologies, Real world
calculations & strategies,
Numericals solved & Live
Examples
Presentation in PPT Format &
Solving practicals

Introduction, Importance, Difficulties and

kinds of CB Decisions, Basic Data
Requirements- Identifying relevant cash
flows, Basic Principles in estimating cost
and benefits of investments. Appraisal
Criterias; DCF and Non DCF Methods for
Evaluating Projects, Evaluating Mutually
Exclusive and Independent Proposals.
Evaluating projects with unequal life and
capital ratios.
Dividend & valuation- an introduction,
Irrelevance of Dividends- MM Hypothesis,
Relevance of Dividends- Walters Model
& Gordons Model, factors determining
Dividend Policy, Cash Dividend Vs. Stock
Dividend, Legal, Procedural & Tax
Aspects.

Additional Resources / Web links

The students are provided with notes, extra questions for practice wherever
deemed necessary. They are also advised to look up on the other web resources
for extra knowledge