Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials

Course No MGT333

Cours Title BASIC FINANCIAL MANAGEMENT

Course Planner 13532 :: Babli Dhiman

Lectures Tutorial Practical Credits 3 1 0 4

Text Book:

1 Rajiv Shrivastava, Anil Mishra, Financial management, Oxford Publications, 2010 edition

Other Specific Book:

2 Sharan Vyuptkesh, Fundamentals of financial Management, Pearson Education, 2009 edition 3 Reddy G. Sudarshana, Financial Management, Principles and Practice, Ist edition, Himalaya Publishing House, 2008 edition 4 Chandra, Prasana; Financial Management, Tata McGraw Hill, New Delhi (2008), 7th Edition 5 Pandey, I.M., Financial Management, Vikas Publishing, New Delhi, 9th Edition. 6 Khan & Jain, Financial Management, Tata McGraw Hill, 2011

Other Reading Sr No Jouranls atricles as compulsary readings (specific articles, Complete reference) 7 Video-How to create value-Growing by cooking values http://www.accountingcoach.com/online-accounting-course/01Xpg01.html 8 Working Capital Mgt-Challenges and Strategies by M Dinesh, ICFAI Journal of Accounting World, April 2008,Pg.37 9 Earnings management using Restructuring Charges by J G Rao, ICFAI journal of accounting world, May 07, Pg.32 10 HBR-FINANCIAL STRATEGY, William Parrott. Financial Management. London: Oct 2009. pg. 44, 3 pgs 11 HBR-The Finance Function in Global Corporation, M A Desai, July- Aug 2008, Page 108 12 Video-Managing radical changes- video on accounting and finance, www.cnbcnews.com 13 Proq-Dynamics in IFS-http://search.proquest.com/pqcentral/docview/235040483/fulltextPDF/1304F41EC1E10D49AB3/1?accountid=80692

Approved for Autumn Session 2011-12

Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 14 http://businessfinancemag.com/corporate-finance Salient Features Articles related to Corporate Finance

15 http://economictimes.indiatimes.com/opinionshome/89722863 Insight into editorials, forums, interviews related to finance 9 16 http://www.youtube.com/watch?v=FNkFAUFxQIs 17 http://www.youtube.com/watch?v=FNkFAUFxQIs 18 http://www.youtube.com/watch?v=1_6MZA2KnEE 19 http://www.youtube.com/watch?v=f48Cb2kKhs0 Video on Financial management Video on Financial mgt: as strategic tool Accounting softwares and financial mgt solutions Strategies for business financial mgt

20 http://www.investopedia.com/articles/basics/06/capitalstructur Current Financial practice with capital structure e.asp?viewed=1 21 http://www.sagepub.com/upmdata/5005_Seidman_Chapter_5.pdf Working capital practices

22 http://unpan1.un.org/intradoc/groups/public/documents/APCIT Factors influencing dividend practices of the companies Y/UNPAN023819.pdf

Detailed Plan For Lectures

Week Number Lecture Number Lecture Topic Chapters/Sections of Pedagogical tool Textbook/other Demonstration/case reference study/images/anmatio n ctc. planned

Part 1
Week 1 Lecture 1 Lecture 2 Financial Management- Intro, Objectives Financial Management- Scope and functions ->Reference :1,Ch 1 ->Reference :5,Ch 1 ->Reference :1,Ch 1 PPT ->Reference :5,Ch 1 ->Reference :11,Article

Lecture 3

Finance Functions - Investment, Financing, Liquidity & Dividend Decisions. Risk & Return Trade off. ->Reference :1,Ch 1 ->Reference :5,Ch 1 ->Reference :7,video video discussion

Week 2

Lecture 4

Approved for Autumn Session 2011-12

Week 2

Lecture 5

Source of Finance Long term, Medium term & short term Time Value of Money Basic Concepts

->Reference :5,Ch 20

Discussion on presently available sources of finance

Lecture 6 Week 3 Lecture 7

->Reference :1,ch4 ->Reference :5,Ch 2 Practical problems

Time Value of Money -Practical problem on present ->Reference :1,ch4 value ->Reference :5,Ch 2 Time Value of Money Practical problems future value Cost of Capital: Concept and its significance Cost of Capital: measurement of cost of Debts ->Reference :1,ch13 ->Reference :5,Ch 9 ->Reference :1,ch13 ->Reference :5,Ch 9

Lecture 8

real life examples of investments cost of different sources of finance Problem solving

Lecture 9 Week 4 Lecture 10

Part 2
Week 4 Lecture 11 Lecture 12 Week 5 Lecture 13 Cost of Capital: measurement of cost of preference capital Cost of Capital: measurement of cost of equity Cost of Capital: Weighted Average cost of capital. ->Reference :1,ch13 ->Reference :5,Ch 9 ->Reference :17 ->Reference :1,ch16 ->Reference :4,ch15 ->Reference :17 problem solving ->Reference :1,ch13 ->Reference :5,Ch 9 Problem solving

Lecture 14

Capital Structure Decision: Intro, Understanding debt and equity , Theories of capital structureTraditional approach

Discussion on capital structure of any company

Lecture 15

Theories of Capital Structure- NI and NOI approach ->Reference :1,ch16 ->Reference :4,ch15 ->Reference :7,article ->Reference :17 Capital Structure Decision: Theories of Capital Structure- MM approach, Optimum Capital Structure ->Reference :1,ch16 ->Reference :4,ch15 ->Reference :7,article ->Reference :20 Discussion on article

Week 6

Lecture 16

Lecture 17 Lecture 18

Capital Budgeting : Intro, features, types of projects ->Reference :1,ch11 ->Reference :4,ch8 Methods of Capital Budgeting- ARR and Payback method ->Reference :1,ch11 ->Reference :5,ch8 ->Reference :20

Discussion on the investment options

Approved for Autumn Session 2011-12

Week 7

Lecture 19

Methods of Capital Budgeting- NPV and IRR method Methods of Capital Budgeting-Profitability index method

->Reference :1,ch11 ->Reference :5,ch8 ->Reference :20 ->Reference :1,ch11 ->Reference :5,ch8 ->Reference :13,case ->Reference :14 ->Reference :1,all topics ->Reference :13,case

Problem solving

Lecture 20

Lecture 21

Revision

MID-TERM Part 3
Week 8 Lecture 22 Lecture 23 Working Capital Concept and Significance, Scope ->Reference :1,ch21 and types ->Reference :5,ch27 Determining working capital requirements, working capital management ->Reference :1,ch21 ->Reference :5,ch27 ->Reference :8,article discussion on various type of businesses and their working capital requirement practicals

Lecture 24

Working Capital operating cycle and relevance

Week 9

Lecture 25

Receivables management-basics with credit policy

->Reference :1,ch23 ->Reference :5,ch28 ->Reference :8,article ->Reference :1,ch22 ->Reference :5,ch29 ->Reference :6,ch16

Discussion on Pros and cons of credit policy

Lecture 26

Inventory management-Introduction , motives for holding inventory, significane Inventory management-Techniques

Lecture 27

practicals

Week 10

Lecture 28

Inventory management-EOQ and various levels

->Reference :1,ch22 ->Reference :5,ch29 ->Reference :6,ch16 ->Reference :8,article

Part 4
Week 10 Lecture 29 Inventory management-FIFO,LIFO, Simple average ->Reference :1,ch22 and Weighted average methods ->Reference :5,ch29 ->Reference :6,ch16 Problems solving

Approved for Autumn Session 2011-12

Week 10

Lecture 30

Inventory management-Problem practice

->Reference :1,ch22 ->Reference :5,ch29 ->Reference :6,ch16

Case study -Inventory mgt. of BHEL Ref 5 pg.635

Week 11

Lecture 31

Cash management- Intro, Motives for holding cash, ->Reference :1,ch24 Cash Planning ->Reference :5,ch30 ->Reference :6,ch14 ->Reference :8,article ->Reference :15 ->Reference :17 Cash management- management of cash and disbursement, Cash forecasting discussion on cash budget

Lecture 32

Lecture 33

Dividend Policy; Intro and forms of Dividend Policy

->Reference :1,ch19 ->Reference :5,ch17 ->Reference :6,ch31 ->Reference :8,article ->Reference :15 ->Reference :1,ch19 ->Reference :5,ch17 ->Reference :6,ch31 ->Reference :8,article ->Reference :15

Factors affecting dividend practices of different companies

Week 12

Lecture 34

Dividend Policy; Determinants of Dividend Policy, Theories of dividend-Walter and Gordon model

Problem solving

Lecture 35

Dividend Policy; Theories of dividend - MM model, Stock split, Stock repurchases, Employee stock option scheme

->Reference :1,ch19 Discussion on Hero ->Reference :5,ch17 Honda dividend Policy ->Reference :6,ch31 ->Reference :8,article ->Reference :12,video ->Reference :15 all topics

Lecture 36

Revision

Spill Over
Week 13 Lecture 37 Lecture 38 Lecture 39 Week 14 Lecture 40 Financial statement analysis Financial planning and strategy business valuation Corporate governance ->Reference :5,ch25 ->Reference :5,ch26 ->Reference :6,ch 30 ->Reference :6,ch 37 Excel application Discussion on strategy formulation of finance Pros and cons of business discussion on ethical and unethical activities in business Approved for Autumn Session 2011-12

Details of homework and case studies

Homework No. Objective Topic of the Homework Nature of homework (group/individuals/field work Individual Evaluation Mode Allottment / submission Week 11 / 11

Quiz 1

To check the Quiz on All the topics covered till date subject knowledge of students Practical application of theory Practical application of theory Test based on Numericals of Time value of money

quiz of 10 marks

Test 1

Individual

Test of 10 marks

3/4

Test 2

Test based on Numericals of Cost of Capital and Capital structure Individual

Test of 10 marks

6/7

Scheme for CA:out of 100*

Component Quiz,Test Frequency 2 Total :Out Of 3 Each Marks Total Marks 10 10 20 20

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc)

Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4 Tutorial 5

Financial management Sources of finance and problems of Time value of money Time value of money cost of capital Capital structure theories

Role play,discussion Problem solving Problem solving Problem solving,cooking sour and sweet video discussion Problem solving,discussion

Approved for Autumn Session 2011-12

Tutorial 6 Tutorial 7

Capital budgeting methods Capital budgeting methods

Problem solving,Test, Home work submission on cost of capital and capital stucture theories Problem solving

After Mid-Term
Tutorial 8 Tutorial 9 Tutorial 10 Tutorial 11 Tutorial 12 Working capital Problems on operating cycle of working capital Receivables and Inventory management Cash management Dividend policy Problem solving,Article discussion Problem solving Problem solving,Home work 2 submission Problem solving,Test,Quiz test Problem solving,Discussion on the Current dividend declarations by different companies

Approved for Autumn Session 2011-12