Gujarat Technological University: Integrated Master of Business Administration
Gujarat Technological University: Integrated Master of Business Administration
Gujarat Technological University: Integrated Master of Business Administration
1. Learning Outcome:
Understanding of Finance and basic terms related to Finance.
Developing insights into the Indian Financial System and overview of its related elements.
Exposure to investigate and critically examine various means of Business financing and Risk
related to the same.
Understand the concept of Working Capital and various means of determining the Working
Capital which includes inventory valuation, cash management and receivables.
Marks
Module No. of
Modules with its Contents/Chapters (out of
No. Sessions
70)
Introduction to Financial Management and Basics of
Time Value of Money
Introduction: Understanding the Meaning of Financial
Management, Scope of Financial Management, Finance
Function, Role of Finance Manager, Objectives of
Financial Management – Profit Maximization & Wealth
I 10 14
Maximization.
Time Value of Money: Concept of Time Value of Money,
Simple Interest & Compound Interest, Lump Sum Amount
& Annuity, Compounding & Discounting. Future Value &
Present Value of Single (Lump Sum) Amount, Future
Value & Present Value of Ordinary Annuity.
Indian Financial System
Introduction: Understanding the meaning and significance
of Financial System, Types of Indian Financial System
II (Financial Market, Financial Instruments, Financial 9 21
Services, Financial Institutions, Financial Regulators &
Informal Financial System) in detail, Inter-relation of
various Financial Systems , Functions of Financial System.
Sources of Finance & Leverage
Important Features & Limitations of Various Types of
Sources of Finance: Ordinary (Equity) Shares, Debentures
& Bonds, Preference Shares, Retained Earnings, Term
III 9 14
Loans, Venture Capital.
Leverage: Concept of Leverage, Types of Leverage:
Financial Leverage, Operating Leverage & Combined
Leverage.
Working Capital Management
Basics of Working Capital: Concept of Working Capital,
Objectives of Working Capital, Need of Working Capital,
Permanent & Variable Working Capital, Gross Operating
Cycle & Net Operating Cycle, Factors Affecting Working
Capital Requirement, Policies for Financing Current Assets
– Matching Approach, Conservative Approach and
Aggressive Approach, Liquidity Vs Profitability Trade off,
Practical Problems – Estimation of Working Capital
Requirements.
Receivables:
IV 13 21
Cost & Benefits of Receivables, Credit Policy, Credit
Evaluation, Factoring & Receivables Management,
Evaluation of Credit Policy, Practical Problems.
Cash Management:
Motives for Holding Cash, Cash Forecasting and
Budgeting, Managing Cash Collection and Disbursement.
Inventory Management:
Need for Inventory, Order Quantity-EOQ, Inventory
Management Techniques, Inventory Control Systems-
ABC & JIT, Practical Problems.
Practical:
30 marks
V Select a company or industry in Gujarat, perform an ---
CEC
analysis of working capital (e.g. receivables policy,
inventory management policy) and prepare a report.
Select a startup company in India, analyze its capital
structure and evaluate the same.
4. Teaching Methods:
Lectures
Case Discussions and Role Playing
Audio-visual Material (Using CDs/Clippings/ online videos)
Assignments and Presentations
5. Evaluation:
The evaluation of participants will be on continuous basis comprising of the following elements:
Continuous Evaluation Component
A comprising of Projects / Assignments /
(Internal Assessment-50 Marks)
Quiz / Class Participation / Class test /
Presentation on specific topic etc.
B Mid-Semester examination (Internal Assessment-30 Marks)
C End –Semester Examination (External Assessment-70 Marks)
6. Reference Books: