INTRODUCTION:
Book keeping – systems of book keeping, journal and ledger posting. Financial Statement, Preparation of Trial balance, profit and Loss Account, Balance Sheet with adjustments.
STATUTORY LEVIES:
Forms of organization, direct and indirect taxes. Statutory Registration- excise Duty, central sales tax, VAT, service tax, central and state general Sales tax, international fund availability.
WORKING CAPITAL MANAGEMENT:
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.
LONG TERM FINANCING:
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.
INVESTMENT DECISIONS:
Inventory investment , Strategic investment , Ownership investments , lending investment, cash equivalent investment, factors affecting investment decisions, Capital Budgeting, disinvestment methods - public offer, sale of equity, cross holding
ASSET MANAGEMENT DECISIONS:
Current Asset Management , Fixed Asset Management, Wealth management , engineering asset management (EAM) - asset maintenance technologies, asset reliability management, project management
RISK AND REQUIRED RETURN:
Risk and return relationship, methods of measuring the risk, Business risk, financial risk, calculation of expected rate of return to the portfolio, financial theories - portfolio theory , capital asset pricing model , arbitage pricing theorynumerical problems.
RATIO ANALYSIS / ACCOUNTING RATIO:
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.
COSTING:
Classification of costs, preparation of cost sheet, absorption and variable costing, standard costing, job costing, process costing. Classification of the variances analysis – material, labor and overhead variances.
BUDGETING:
Types of budgets – Flexible budgets, preparation of cash budgets, purchase and production budgets and master budget, Budgetary control, advantages & limitations of budgeting.
Course outcomes:
1. Measure the returns from engineering projects of differing risks and present a risk-return tradeoff relationship (PO 4, 12)
2. Determine the financial ratios and profitability margins of projects to evaluate economic viability to accept or reject the project. (PO 11)
3. Evaluate cost break ups of engineering projects and processes to determine and control the prohibitive cost components (PO 11)
4. Apply a Engineering Asset Management techniques to evaluate the economic value of physical assets. (PO 1, 11, 12)
TEXT BOOKS:
1. Financial Management, Khan & Jain, text & problems TMH ISBN 0-07-460208-A. 20001
2. Financial Accounting, Costing and Management Accounting, S. M. Maheshwari, 2000
3. Srivatsava, Radhey Mohan, Financial Decision Making : Text Problem and Cases, New Delhi : Sterling Publishers (Private) Limited, 198*, pH.
4. Francis, Pitt, The Foundations of Financial Management, London : Arnold Heinmann, 1983, p.l
REFERENCE BOOKS:
1. Financial Management, I. M. Pandey, Vikas Publication House ISBN 0-7069-5435-1. 2002
2. Financial Management, Abrish Gupta, Pearson.
3. Financial Decision Making,Humpton. 2000
4. Financial Management, Theory and Practice, Prasanna Chandra TMH ISGN -07-462047-9, 3rd edition 2002
5. Essentials of Financial Management, Walker, Ernest W., New Delhi : Prentice Hall of India Pvt. Ltd, 1976, p.l