Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials

Course No MGT333

Cours Title BASIC FINANCIAL MANAGEMENT

Course Planner 14723 :: Lalit Kumar Bhardwaj

Lectures Tutorial Practical Credits 3 1 0 4

Text Book:

1 Rajiv Shrivastava, Anil Mishra, Financial management, Oxford Publications, 3rd edition, 2009 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.

Other Reading Sr No Jouranls atricles as compulsary readings (specific articles, Complete reference) 6 Why Did the Crisis of 2008 Happen? By Nassim Nicholas Taleb, 3rd version August 2010: Source:http://papers.ssrn.com/sol3/papers.cfm? abstract_id=1666042 7 ) Value Maximization, Stakeholder Theory, and the Corporate Objective Function by Michael J. Hensen: Harvad Business school working paper no. 0058 8 A Note on Stakeholder Theory and Risk: Implications for Corporate cash holding and Dividend Policy: Frontiers in Finance and Economics vol 6, No 1, Pg 5172, 2009 9 Working Capital Management and Firm's profitability: An optimal cash conversion cycle By Haitham source:http://papers.ssrn.com/sol3/papers.cfm? abstract_id=1471230 10 Case study: Bharat Heavy Electricals: Source: Financial Management By I.M Pandey Pg 16, Ninth edition, Vikas Publications 11 Case study: Divya Handtools Private Limited( DHPL) Source: Financial Management By I.M Pandey Pg 40 Ninth edition, Vikas Publications 12 Case study: Hindustan Lever Limited Source: I.M Pandey Pg 192 13 Case study: Delite Furniture Company Limited: Source: I.M Pandey Pg 444, ninth edition, vikas Publications 1 Approved for Spring Session 2010-11

14 Case study: G.S. Petropull Company: Source: I.M Pandey pg 165, ninth edition, vikas Publications Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 15 http://businessfinancemag.com/corporate-finance Salient Features Articles related to Corporate Finance

16 http://economictimes.indiatimes.com/opinionshome/89722863 Insight into editorials, forums, interviews related to finance 9 17 http://www.youtube.com/watch?v=FNkFAUFxQIs 18 http://www.youtube.com/watch?v=FNkFAUFxQIs 19 http://www.youtube.com/watch?v=1_6MZA2KnEE 20 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

21 http://www.investopedia.com/articles/basics/06/capitalstructur Current Financial practice with capital structure e.asp?viewed=1 22 http://www.sagepub.com/upmdata/5005_Seidman_Chapter_5.pdf Working capital practices

23 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 Homework to be Assigned Pedagogical tool Textbook/other to students Demonstration/case reference study/images/anmatio n ctc. planned

Part 1
Week 1 Lecture 1 Meaning of Financial Management, Profit Maximization objectives, Wealth Maximization Objective Scope of Financial Management: Traditional and modern Approach Finance Functions an overview: Investment decision, Financing Decision, Liquidity decisions Finance Functions: Dividend Decision, Risk and return Trade off in terms of finance functions Source of Finance: Long term sources Book :4,ch 1

Lecture 2 Lecture 3 Week 2 Lecture 4 Lecture 5

Book :5,ch1 Book :4,ch 1 Book :4,ch 1 Book :4,ch 3 HomeWork 1 Allocation Term Paper 1 Allocation

Ref 17: Video

Case study: Ref 13: Delite Furniture Limited

Approved for Spring Session 2010-11

Week 2 Week 3

Lecture 6 Lecture 7 Lecture 8 Lecture 9

Preference share capital as the source of finance Debentures & other long term source of finance Medium Term Sources of finance Short term Sources of finance Time Value of Money: Present Value (Basics using tables)

Book :4,ch 3 Book :4,ch 3 HomeWork 1 Submission

Week 4

Lecture 10

Book :1,ch 2

case study 3- ICICI Prudential retirement plan

Part 2
Week 4 Lecture 11 Lecture 12 Week 5 Lecture 13 Lecture 14 Lecture 15 Week 6 Lecture 16 Lecture 17 Lecture 18 Week 7 Lecture 19 Lecture 20 Lecture 21 Time Value of Money: Future Value, Net Present Value (Basics using tables) Time value of money: numerical based on net present value Other related aspects & application for time value Cost of Capital: Concept and its significance Cost of Capital: Cost of Debt & preference share capital Cost of Capital: Cost of Equity Cost of Capital: Weighted Average Cost of Capital Cost of Capital: numerical based upon WACOC Capital Structure Decision: Basics, significance etc. ->Reference :1,ch 14 ->Reference :2,ch 17 Understanding debt and equity and the factors affecting the debt and equity proportion Revision / test of the syllabus before MTE Quiz 1 ->Reference :1,ch 9 HomeWork 2 Submission ->Reference :1,ch 2 ->Reference :1,ch 2 ->Reference :1,ch 2 ->Reference :1,ch 9 HomeWork 2 Allocation excel templates Case study: Ref 12 Hindustan Lever Limited excel template

MID-TERM Part 3
Week 8 Lecture 22 Lecture 23 Capital Structure Decision: Concept of Financial Leverage, Effect on EPS Capital Structure Decision: Theories of Capital Structure (excluding the determination of value of firm numerically); Net Income Theory Capital Structure Decision: Traditional Theory HomeWork 3 Allocation ->Reference :1,ch 14 ->Reference :2,ch 17 Ref 18: Video excel templates

Lecture 24

Approved for Spring Session 2010-11

Week 9

Lecture 25 Lecture 26 Lecture 27

Capital Structure Theory: Irrelevance theory :Net Operating Income Capital Structure Theory: M&M Theory Capital Budgeting :Define, Type of Investment Projects, Importance Capital Budgeting :Analytical study of various methods : traditional methods: pay back period method Post pay back & accounting rate of return method

->Reference :1,ch 15 ->Reference :2,ch 17

->Reference :1,ch 8 ->Reference :1,ch 8 HomeWork 3 Submission Case: Ref 14: G.S Petropull Company

Week 10

Lecture 28

Lecture 29

Part 4
Week 10 Week 11 Lecture 30 Lecture 31 Lecture 32 Lecture 33 Week 12 Lecture 34 Lecture 35 Lecture 36 Week 13 Lecture 37 Lecture 38 Lecture 39 NPV method PI method & significance of capital budgeting decisions Working Capital : Concept, Types Determining working capital requirements i.e. factors affecting working capital decisions working capital and receivables management Inventory management, EOQ, Cash management theories of dividend Dividend Policy; Concept, Forms of dividend, Dividend Policy; Determinants of forming Dividend Policy, Theories of dividend: Walter Theory, Gorden & MM theory Break-Even Analysis ->Reference :1,Refrence 1; Ch 12 ->Reference :1,ch 18 ->Reference :2,ch 25 Quiz 2 HomeWork 4 Submission ->Reference :1,ch 27 ->Reference :1,ch 8 ->Reference :1,ch 8 ->Reference :1,ch 27 HomeWork 4 Allocation Term Paper 1 Submission

Spill Over
Week 14 Lecture 40 Lecture 41 Lecture 42 Week 15 Lecture 43 Current financial practices with regard to dividend Current financial practices with regard to capital structure Working capital practices International financial management ->Reference :17, ->Reference :15, ->Reference :16, ->Reference :1,ch 27

Approved for Spring Session 2010-11

Details of homework and case studies

Homework No. Homework 1 Topic of the Homework Media watch and analysis of the current financial movements in the business world for the better understanding of the financial world. students are required to collect articles, news. Instructor can check the scrapbook any time. 7 marks For scrapbook and 8 Marks for news Numerical Problems on time value of money. 5 Marks for submission 10 marks for test Numerical problems on capital structure. 5 marks for submission 10 marks for test Numerical Questions on working capital management. 5 marks for submission, 10 marks for test Nature of homework (group/individuals/field work Individual

Homework 2 Homework 3 Homework 4

Individual Individual Individual

Scheme for CA:out of 100*

Component Homework Term Paper Quiz Frequency 3 1 2 Total :Out Of 4 Each Marks Total Marks 15 25 15 55 45 25 30 100

* 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 List of suggested topics for term paper[at least 15] (Student to spend about 15 hrs on any one specified term paper) Sr. No. Topic 1 Outline detailed information regarding the assigned company in terms of its background, history, management; Company position relative to industry Change in its share price over a year Capital Structure for last 3 years; Dividend Policy for last 5 years; Liquidity position; 2 A survey of corporate leasing analysis of any two companies 3 Dividend policy: its influence on the value of the enterprise for the last five years

4 Pre and post impact of dividend announcements on share price of any one company for the last five years 5 Impact of the difference and mix of current assets of two firms on their liquidity and profitability position

Approved for Spring Session 2010-11

6 Analysis of current asset composition of one company, each in Indian manufacturing, food products and electronics industry 7 Analysis of capital structure of a cement plant, software development firm and a call centre 8 Comparative analysis of cost of capital of two companies in the same industry for the last five years 9 Analysis of capital structure of a company over a period of ten years 10 Comparative analysis of Dividend policies of two companies in the same industry for the last three years 11 Analysis of Dividend policy of a company over a period of ten years

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 Tutorial 6 Tutorial 7

Discussion on the case study for the introduction of the Case analysis subject: Ref: 10 Discussion on "WHY DID THE CRISIS OF 2008 HAPPEN?" Ref: 6 Test of HW 1 VIVA & Doubt clearance session Case analysis,Problem solving Problem solving,Test

Practice of Numerical problems of Time value of Money Problem solving Discussion on " Value Maximization, Stakeholder Theory, and the Corporate Objective Function" Ref 7 Test of Hw-2 and Review of Term Paper Practice of Numericals Problems of Cost of capital & Doubt clearance session Case analysis Test Problem solving

After Mid-Term
Tutorial 8 Tutorial 9 Tutorial 10 Tutorial 11 Tutorial 12 6 Ref 8: "A note on stakeholders Theory & Risk" Ref: 11 Case Study " Divya handtools Private ltd" Test of HW 3 & discussion on the general topic of financial mgt Ref 9 " Working capital management and Firm's Profitability" and Review of term paper Test hw-4 Case analysis Case analysis,Problem solving Problem solving,Test Case analysis Test Approved for Spring Session 2010-11

Tutorial 13

Doubt clearance session

Problem solving

Approved for Spring Session 2010-11