10ME767 Finance Management syllabus for ME


Part A
Unit-1 Introduction To Financial Management 6 hours

Forms of organization, direct and indirect taxes. Statutory Registration- excise Duty, central sales tax, VAT, service tax, international fund availability.

Unit-2 Risk And Required Return 6 hours

Risk and return relationship, methods of measuring the risk, Business risk, financial risk, calculation of expected rate of return to the portfolio, numerical problems.

Unit-3 Working Capital Management 7 hours

Definition, need and factors influencing the working capital requirement. Determination of operating cycle, cash cycle and operating cycle analysis. Calculation of gross working capital and net working capital requirement.

Unit-4 Long Term Financing 7 hours

Raising of finance from primary and secondary markets. Valuation of securities, features of convertible securities and warrants. Features of debt, types of debt instruments, return on investment(ROI) and credit rating of units. Shares, debentures.

Part B
Unit-5 Introduction 7 hours

Book keeping – systems of book keeping, journal and ledger posting. Financial Statement, Preparation of Trial balance, profit and Loss Account, Balance Sheet with adjustments.

Unit-6 Ratio Analysis / Accounting Ratio 7 hours

Liquidity ratio – Current ratio, quick ratio, turnover ratio, capital structure ratio- Debt – equity ratio, Coverage ratio, Profitability ratio, Profit margin, Return on assets, Activity ratios – Inventory turnover ratio, Debtors Turnover ratio. Preparation of the balance sheet from various ratios. Analysis of any one published balanced sheet.

Unit-7 Costing 6 hours

Classification of cost, preparation of cost sheet, absorption and variable costing, job costing, process costing. Classification of the variances analysis – material, labour and overhead variances.

Unit-8 Budgeting 6 hours

Types of budgets – Flexible budgets, preparation of cash budgets, purchase and production budgets and master budget, Budgetory control, advantages & limitations of budgeting.

Last Updated: Tuesday, January 24, 2023