Students can follow any book from any author; the only caution - - PDF document

DEPARTMENT OF FINANCE MANAGEMENT, COLLEGE OF AGRIBUSINESS MANAGEMENT, GOVIND BALLABH PANT KRISHI EVAM PRODYOGIK VISHWA VIDYALAYA, PANTNAGAR – 263145, U. S. NAGAR, UTTARAKHAND

I. Course Offered: MAM-660 FINANCIAL MANAGEMENT 2(1-1-3) Objective: The course aims to acquaint students with various concepts and techniques as also their application in financial analysis and forecasting, working capital management and capital structure management. Content: Introduction to financial management objectives functions, interface of financial management with other functional areas; preparation of financial statements - balance sheet, income statement, funds flow statement, cash flow statement; financial statement analysis - ratio analysis, time series analysis common size analysis, du-pont-analysis, leverage, risk and return analysis; Cost-volume -profit analysis, monitoring costs and sales through variance analysis; financial forecasting; Capital structure-factors affecting capital structure, features of an optimal capital structure, capital structure theories; sources of long term finance and cost

• f capital. Working capital - concepts and components of working capital, determinants of the

size of working capital, factors affecting the composition of working capital; managing working capital -conservative V/s aggressive policies, static V/s dynamic view of working capital,

• perating cycle approach to working capital, inventory management, receivable management

and cash management, dividend decision; sources of working capital finance; capital budgeting, estimating costs and benefits of investments, appraisal criteria - payback period, simple rate of return; net present value, benefit cost ratio, internal rate of return, Agri business financing system in India-money and capital markets, regional and all India financial institutions. II. EXAMINATION SYSTEM

Particulars Weights Assigned Cumulative Weights Mid – term Examinations : 20 per cent 20 per cent Lab/ Practical Final Examination : 20 per cent 40 per cent PGCAP (Including Assignments) : 20 per cent 60 per cent Semester End Final Examinations : 40 per cent 100 per cent

III. BOOK RECOMMENDED Students can follow any book from any author; the only caution required is the Coverage of the Prescribed

• Syllabus. The students can obtain a copy of prescribed detailed syllabus from Head, Department of Finance

Management of College of Agribusiness Management, Pantnagar The books mentioned below are just for an impression. The instructor may follow any of these books or different sections from different books.

• 1. Name of the Book:

Financial Management: Text & Cases Name of Authors : Brigham Eugene F., Professor – University of Florida Ehrhardt Michael C., Professor – University of Tennessee Publisher : SOUTH WESTERN CENGAGE LEARNING Edition : One Published Year : 2008 ISBN-13 : 978-81-315-04918-0

• 2. Name of the Book:

Corporate Finance Name of Authors : Jonathan Berk, Professor – University of California, Berkley Peter DeMarzo, Professor – Stanford University

Publisher : PRENTICE HALL Edition : One Published Year : July 2008 ISBN10 : 140-82-15039-0

• 3. Name of the Book:

Financial Management Name of Authors : Jonathan Berk, Professor – University of California, Berkley Peter DeMarzo, Professor – Stanford University Publisher : PEARSON EDUCATION Edition : First Impression for South East Asia Published Year : July 2008 ISBN : 978-81-317-2194-0

• 4. Name of the Book:

Financial Management: Text, Problems & Cases Name of Authors :

• M. Y. Khan, Professor & Dean, Department of Financial Studies, University of Delhi
• P. K. Jain, Professor, Department of Management Studies, Indian Institute of Technology, Delhi

Publisher : TATA McGraw-Hill Edition : 5TH Edition Published Year : 2007 ISBN : 978-00-706-5614-7

• 5. Name of the Book:

Financial Management: Theory and Practices Name of Authors : Prasanna Chandra; Director, Center for Financial Management, Bangalore, Ex – Professor IIM C Publisher : TATA McGraw-Hill Edition : 7TH Edition Published Year : 2007 ISBN: 978-00-706-5665-9

• 6. Name of the Book:

Financial Management Name of Authors :

• I. M. Pandey; Professor, University of Delhi, Ex – Director, Pearl Academy of Business and

Ex – Professor, IIM, Ahmadabad Publisher : Vikas Publishers Edition : 9TH Edition Published Year : 2007 Further Readings: Students who want to improve their basics should go for: 1. Study Material for Accountancy in Foundation Course of ICAI 2. Study Material for Accountancy in Foundation Course of ICWAI 3. Study Material for Accountancy in Foundation Course of ICSI 4. Study Material for Accountancy in Foundation Course of ICFAI University 5. Study Material for Accountancy in Foundation Course of ICPA, London U. K. OR If any of the instructor from the university or college has created any lab manual or something like that, which the instructor may not be aware as due to their humble nature professor do not let colleagues know due to fear of being dubbed as commercial. Students who feel to be comfortable about basics but want to develop better understanding of basic concepts [In Case Planning to go for opting Specialization in Finance] should also go through [besides what is being taught] : 1. The Self Learning Modules offered by IGNOU for Financial Management for its any degree program. It comprises 5 to 6 Units. The Module on Capital Budgeting from IGNOU can be asked for from your Instructor itself; as the same has been authored by Saurabh Singh, Department of Finance Management for Post Graduate Program in Agricultural Policy offered by IGNOU, New Delhi. 2. Self Learning Module on Financial Management from All India Management Studies, Management House, New Delhi

3. Self Learning Module and Work – Book Prepared by ICFAI University of Course Concerned. 4. Self Learning Modules of Course Concerned from IMT, NMIMT, S. P. Jain

• IV. ABOUT CASE STUDIES

This is to specifically bring to notice of the students that in the Domain of Financial Management, majority of times, the numerical itself tends to be as good as a case. So please try to concentrate on them. The learning will certainly be supplemented by Case Studies – if you feel like, but let me state one aspect before talking further: The requirements for the Case Studies are as below: 1. The students should be well versed with and have sufficient command on the Course that they have cleared as pre-requisite, i.e., Managerial Accounting and Control along with Managerial Economics. If you have been through quantitative analysis, it’s good enough. 2. The other course that the students would have cleared before reaching this level would have been Business

• Law. Please revise following topics from the portion of syllabus that is termed The Companies Act 1952.
• A. The Performa prescribed preparation of Final Accounts or to say financial statements, the same are

listed as below: a. Trading and Manufacturing Account b. Profit and Loss Account c. Balance Sheet d. Statements of Change in Financial Position

• i. Fund Flow Statement
• ii. Cash Flow Statement

e. Definition of terms clearly defined in Companies Law as illustrated below: i. Shares a. Ordinary Shares b. Preferential Shares a) Non Cumulative Preference Shares b) Cumulative Preference Shares c) Non Participative Preference Shares d) Participative Preference Shares ii. Debentures

• a. Debentures with maturity
• b. Perpetual Debentures

iii. Warrants

• B. Share Capital

i. Authorized Share Capital ii. Issued Share Capital iii. Paid up Share Capital iv. Called up Share Capital The general awareness is assumed to be O. K. Levels. IV. GENERAL READINGS This part is not being prescribed. It should become part of your daily routine if plan to make a career with all the glamour of Corporate Sector. Remember a few things: the first being – there is no free lunch these days. Following the behavior as prescribed inside the limits of ethics will not do, you may sometimes have to turn and behave otherwise.

This I am telling from my experience of corporate sector, but is more true in case of public sectors. Probably I will share these once you think you are mature enough to learn by just listening the story. The worst battle I am still fighting for securing better benefits of my students. If I do not get success this year, I will certainly get it for your juniors. V. COMING BACK TO DISCUSSION, I WOULD EMPHASIZE ONE POINT As I deliberated above that you should be groomed enough to learn from stories --- now probably you can learn the limitations of case study. I cannot rule like Akbar or Ashoka just by reading about them, as it’s a history and situations were much different in those times. So, probably I can say and you will agree that case studies are just history. They benefit you also in the same sense,

• i. e., you can learn certainly the basic facts and at least not make the same mistakes again.

Now after so much deliberations I can attach a list of case studies; but it is you people who need to let me know as per your level of understanding, that do you requires lectures or you can come prepared already so as to smoothly transition to case studies and numerical. So now who will let me understand what the Financial Management is all about? Please acquaint me also, so that I can forge some understanding to grow ahead along with you in this discipline. Really believe me I love your company but certainly do not want you to hang around; we can be in touch ones you start climbing the ladder of success. Wish all the best at start itself.

Always yours as Usual --- Saurabh Singh - An Endeavor to Share with You What Ever Little I Know