Hi Everyone, If you pursuing Group E then it would be useful to you or forward these points to other students you are

pursuing Group E you may know off.

Important Points of FM.

Now, i am intending to give most important points for Financial Management. I know that usually students find lot of problem to clear group E but i would suggest you to after reading text book then please give one will study theory properly then he\she may not find difficulty to clear these exam. Main thing is that please give good time to old papers. Chapter 1 (Introduction to financial mangement) Page no. 2 Objective of Financial management, Page no. 3 Functions of the finance manager ( Please learn all heading ) Page no. 7, sole proprietorship , partnership & companies. time to solve work book. I cleared FM as i gave good time for numerical part even i studied theory, if any

page no. 8 minimum number of a person to form a company,maximum number of persons to form company, minimum number of directors,maximum number of directors. page no. 11 All bullet points. Page no. 9 Audit committee,Statutory Meeting, Quorum For a general meeting etc. Page no. 11-12 Industrial Licensing provisions and procedures., all points of page nil 12 page no. 13, Foreign exchange Management ACT ( you need to study only 5 lines) page no. 14 monopolies and restrictive trade practices ACT page no. 15 companies ACT,1956 ( You need to read & learn all 5 bullet points) Chapter 2 ( Indian Financial System ) Page no.19: the saving function,liquidity function,payment function. page no. 20 : Risk function, policy function, You need to learn all examples of Money market, call money market & purpose ( Note : you need to learn all 3 bullet points which you can find in page no. 21) Page no. 22 : CP Page no. 24 : CD

page no. 25 MMMFs

page no. 27 : Functions and powers of SEBI ( you need to learn all bullet points ) page no. 28 : Types of ISSUE ( you need to learn all ) Page no. 31 : The order ( you need to learn all ) & last paragraph of page no. 31 14,28,91,182&364 days ) )

Page no. 32 , you need to know about types of T-bills ( Only days related , only examples such as Note : their is big mistake in page no. of 39 . 362 days is wrong. 364 days should be instead of 362days Page no. 41 : you need to learn formula T-Bill. page no. 44 : American Depository Receipts page no. 45 Foreign Bonds

page no. 43 : All 3 sub heading of Intermediaries

page no. 46 : Euronotes

Page no. 50-51 : Participants page no. 66 : Nidhis,venture capital funds etc. Chapter 3 ( Time value of Money ) you need to learn all single line. Chapter 4 ( Risk and return ) Page no. 90 : Probabilities and rates of return page no. 93 : Sources of Risk. page no. 94: all 4 bullet points. page no.95-96: Non diversification or market risk factors and Diversification or specific risk factors. page no. 98-99: CAPM, Assumptions , risk premium. page no. 100 : SML Chapter 5 : leverage One of the easy chapter for me.

page no. 106 : all 4 bullets points

page no. 109 : all 4 bullets points. page no. 113 : all 4 bullets points. I created notes from old papers so it would better study this chapter line by line. Chapter 6 : Valuation of Securities Page no. 116 : concepts of value & valuation of bonds including all headings. page no. 125 : Warrant price & Convertible debentures page no. 133 : Comparing Expected and Actual P\E Ratios Chapter 7 : Sources of Long - term Fianance page no. 138 : Preference capital page no. 139 : Debenture capital & types of debentures page no. 140 : SPNs page no. 141 : Issues of securities deals, private placement

page no. 142-143, you need to learn formula of Ex- rights of a share and value of a right . Bought out page no. 144 : Deferred Credit Chapter 8: cost of capital and capital structure T page no. 151 : Realized yield approach

page no. 152-153 : CAPM, Bond yield plus risk premium approach , earning price ratio approach , cost of

retained earning and cost of external equity page no. 158 : A-E points page no. 159 : Features of an optimal capital structures, assumptions

page no. 160-161 : Net income approach ( including graph ) , Net operating Approach ( including graph ) page no. 162-163 : Traditional Approach , Miller and modigliani approach page no. 168 : Bankruptcy costs and agency costs. Chapter 9 : Dividend Policy page no. 171-172-175-178-182 : Traditional Position, walter model , Gordon's Dividend capitalization Model, millar and modigliani model & Rational expectations Models. About 2nd part (Paper II) of Financial Management. Dear Friends, Now i am going to let you that i prepared 2 part by using text book & work book but i created small notes from Old question papers. Chapter 10: Working Capital management Page no. 186 Description of current assets and current liabilities page no. 206 under-trading and over trading page no. 207 Ratio Analysis

Chapter 11 : Financing Current Assets page no. 213 cost of trade credit. page no. 216 Letter of credit , Hypothecation,Pledge page no. 221 Tandon Committee page no. 218 Factoring ( read everything including types of factoring

Chapter 12 : Inventory Management Page no. 231 Liquidity Lags ( Learn every single point ) page no. 233 types of inventory page no. 232 Shelf stock,purpose of inventories page no. 235 3 subsystem ( you will find these 3 subsystem above paragraph of EOQ & page no. 237 Economic order quantity including assumptions. page no. 246 the production side page no. 247 THE ABC system

page no. 250 Monitoring of stores and Spares and pricing of Inventories Chapter 13 : Receivables Management page no. 255 : Only title of cost of maintaining receivables page no. 263 collection program ( learn all bullet points ) page no. 272 : Ageing Schedule

chapter 14 : Cash Management page no. 293 : Treasury and controller page no. 294 : accounting and control page no. 295 : Design of internal control

page no. 297 : The Daiwa Episode ( Good for knowledge point of view ) , Internal Audit page no. 299 : Elements of Internal Audit page no. 300 : Objectives of Audit Committee Chapter 15 : Capital Expenditure Decisions Page no. 318 : Aspects Of project appraisal ( Read everything page no. 318-319) page no. 324 : Payback Period page no. 325 : Accounting rate of Return page no. 326: Net present Value page no. 330 : annual capital charge Chapter 16 : Inernational Project Appraisal Page no. 335: Reasons for FDI Chapter : 17 International Trade and Finance Page no. 349 : Heckscher-ohlin Model,Imitation-gap theory page no. 352 :BOP

page no. 350 : International product Life Cycle Theory,trade barriers page no. 355 : Capital Account page no. 357 : Imports of goods and services page no. 362 : Currency board system page no. 370 : Types of Transactions page no. 363: Hybrid Mechanism : Crawling Peg page no. 373 : PPP and the law of one price

page no. 383 : Various Internal Hedging Techniques page no. 385 : Marketing Strategies ( Learn every single bullets properly ) Chapter 18 : Financial Risk Management page no. 390 : Sources of Risk ( learn every thing which will come under this title ) page no. 399 : Motives Behind Using futures page no. 402 : Types of Futures page no. 408 : Black and Scholes Model

page no. 410 : Assumptions of Black and Scholes Model page no. 415 : Parties In a Swap transaction page no. 419 : Commodity Swaps page no. 416 : Types of Interest rate Swaps ( Please learn everything )

I gave most important points of Financial Management so i hope, you may able to cover good scores from understand and follow the Important points highlighted. APART FROM THIS YOU SHOULD PRACTICE THE WORKBOOK AND SOLVE THE PROBLEMS AS YOU PERFECT AND YOU SHOULD BE CONFIDENTLY CLEAR THIS SUBJECT.

Theory part. But please dont forget that without reading through the Text book in total first you be able to

COMPLETE EACH CHAPTER AND REVISE THEM REGULARLY. ONLY PRACTICE CAN MAKE YOU GUYS

ONE MORE IMPORTANT ISSUE REFER TO ATLEAST JULU 08, OCT 08 & JAN 2009 PAST QUESTION PAST QUESTION PAPER I AFTER YOU ARE 60 OR 70% THROUGH OF THE FIRST HALF OF THE II. Best wishes and good luck,

PAPERS AND REVISE THEM AS AND WHEN YOU READING THE TEXT BOOK. PLEASE GO THROUGH BOOK. THE INDEX OF THE TEXT BOOK SHALL TELL YOU THE CHAPTERS FOR PAPER I AND PAPER