Financial Management MCOM Semester IV Manan Prakashan

1. Types of Financing (12 Lec.)
Introduction
Needs of Finance and Sources : Long Term, Medium Term, Short Term
Long Term Sources of Finance
Owners Capital / Equity Capital
Preference Share Capital
Retained Earning
Debentures or Bonds
Loans From Financial Institutions / Banks
Short Term Sources of Finance
Trade Credit
Accrued Expenses and Deferred Income
Advances From Customers
Commercial Papers
Bank Advances : Loans, O/D, Clean O/Ds, Cash Credit, Advances against goods, Bills Purchased, Discounted, Advances against documents of title of goods, Advances against supply of bills, Term Loans
Inter Corporate Deposits
Certificate of Deposits
Public Deposits

2. Investment Decisions : Capital Budgeting (12 Lec.)
l Introduction
l Nature of Capital Budgeting
l Purpose of Capital Budgeting
l Capital Budgeting Process
l Types of Capital Investment
l Decisions Project Cash Flows and Net profit Approval
l Basic Principle of Measuring Project Cash Flows
l Increment Principle, Long Term Funds Principle, Exclusion of Financial Cost Principle, Post Tax Principle
l Probability Technique For Measurement of Cash Flow
l Capital Budgeting Techniques : Net Return Value; Internal Rate of Return; Profitability Index Methods
l A Comparison; Project Selection Under Capital Rationing
l (Note : Problems on computation of cash flow, ranking of projects on various techniques, selection and analysis with / without capital rationing. Comparison of IRR with Required rate of return i.e. cut off rate, IRR and mutually exclusive projects with unequal lives, multiple IRR.)

3. Management of Working Capital (12 Lec.)
Meanings, Concepts and Policies of Working Capital
Management of Working Capital
Issues in Working Capital
Estimating Working Capital Needs (only Theory)
Operating or Working Capital Cycle (only Theory)
Management of Components of Working Capital
l Management of Cash and Marketable Securities : Motives for Holding Cash; Objectives of Cash Management; Factors Determining Cash Needs; Basic Strategies of Cash Management; Cash Management Techniques / Processes; Marketable Securities; and Cash Management Practices in India
l Receivable Management : Objectives; Credit Policies; Credit Terms; and Collection Policies
l Inventory Management : Objectives; and Techniques

4. Financial Planning (12 Lec.)
l Introduction
l Meaning of Budget
l Essentials of a budget
l Types of Budgets
l Advantages of Budgeting
l Zero Based Budget
l (Note: Practical Questions on Sales Budget, Production Budget, Material Budget, Cash Budget and Master Budget)5. Financial Policy and Corporate Strategy (12 Lec.)
l Meaning of strategic financial management
l Strategic financial decision making framework
l Functions of Strategic Financial Management
l Financial Planning