Gujarat Technological University: Integrated Master of Business Administration

Download as pdf or txt
Download as pdf or txt
You are on page 1of 3

GUJARAT TECHNOLOGICAL UNIVERSITY

INTEGRATED MASTER OF BUSINESS


ADMINISTRATION
Year – 2 (Semester –4) (W.E.F. Academic Year 2018-19)
Subject Name: Basics of Financial Management (BFM)
Subject Code: 2547104

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.

2. Course Duration: The course duration is of 40 sessions of 60 minutes each.


3. Course Contents:

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:

Sr. No. Author Name of the Book Publisher Year of


Publication
Vikas
1 I M Pandey Financial Management 2015
Publication
M. Y. Khan and P. Tata McGraw
2 Financial Management 2007
K. Jain Hill
3 R P Rastogi Financial Management Taxmann 2016
Financial
Tata McGraw
4 Prasanna Chandra Management, theory 2011
Hill
and Practice

7. List of Journals/Periodicals/Magazines/Newspapers, etc.

1. Chartered Financial Analyst


2. Economic Times
3. Business Standard
4. Financial Express
5. Harvard Business Review

You might also like