Course Plan

Financial Management

KF2FIN3

Dr. Filomina P George/Mr.Praveen Madhavan/ Mr.Pradeep K V

Term III

March 2020 - May 2020

Batch 28

Programme: Post Graduate Diploma in Management (PGDM)

SCMS COCHIN SCHOOL OF BUSINESS

Faculty : HOD:

Dean :

Director :
 Table of Contents

1. COURSE PROFILE............................................................................................................................................3

2. COURSE LEARNING OBJECTIVES..............................................................................................................3

3. COURSE OUTLINE (SYLLABUS)...................................................................................................................4

4. COURSEWARE:................................................................................................................................................4

5. COURSE OUTCOMES:.....................................................................................................................................5

6. THE INTERNAL ASSESSMENT.....................................................................................................................5

6.1 MILESTONES / IMPORTANT DATES..............................................................................................................5

6.2 RUBRICS FOR ASSESSMENT...........................................................................................................................6

7. SPECIAL INFORMATION ON COURSEWORK..........................................................................................8

8. MID TERM EXAMINATION COVERAGE AND QP PATTERN................................................................8

9. END TERM EXAMINATION COVERAGE AND QP PATTERN................................................................8

10. Course Implementation : Module and Session Plan...........................................................................................9

2
1. Course Profile

Course Title FINANCIAL MANAGEMENT

Course Number KF1 FIN3

Academic Year 2019-2020

Post Graduate Diploma in Management
Programme
(PGDM)
Total Credits 3

Total Number of Sessions 26

Session Duration 1 hr 10 mins

Dr. Filomina P.George
Faculty/course facilitator Mr. Praveen Madhavan
Mr. Pradeep K V

2. Course Learning Objectives

This course will facilitate the students to:

• understand the role and significance of financial management in the successful management of business
• understand the concept of time value of money and apply the techniques of discounting and
compounding in financial decision making.
• appreciate the significance of risk and return in financial decisions.
• learn the tools and techniques of capital budgeting and use them to evaluate long term investments
decisions.
• identify the various sources of capital and understand the concepts of Cost of capital, capital structure
and leverage and the relationship while choosing sources of capital and making decisions on capital
structure.
• appreciate the theories guiding dividend decisions and the inter relationship between dividend decisions
and firm valuation.
• appreciate the importance of working capital management and its significance on liquidity and
profitability of a firm.

3
3. Course Outline (syllabus)

Module Weight Sess Description

no age ions
Basic concepts of Financial Management: Introduction to Financial Management -
Role of Financial Management in Business- Financial decisions in firm.
20% 5
1 Time value of money – Application of compounding and discounting concepts in
sinking fund, capital recovery, Loan amortisation. Risk return trade off.
Investment Decisions : Long Term Investment decisions-Capital Budgeting–nature,
importance, capital budgeting process – Investment evaluation– appraisal techniques
2 20% 6 – traditional/Non discounted cash flow techniques – payback period, ARR -
Modern/Discounted cash flow techniques-NPV, IRR, PI Method. Capital rationing
Financing Decisions: Sources of Capital– Capital markets- Capitalization and Cost of
Capital – Estimation of cost of debt and preference share capital – Cost of equity &
3 25% 8 cost of retained earnings- Weighted Average Cost of Capital (WACC). Capital
Structure Planning– Factors determining the Capital Structure, Leverage Analysis-
EBIT-EPS Analysis, Capital Structure & Value of the Firm,
Dividend Decisions-determinants of dividend policy-Dividend and value of the
4 20% 4 firm-relevance of dividend policy – Irrelevance of dividend policy. Legal and
procedural aspects of payment of Dividend
Decisions related to Working Capital and Short term planning- Overview of
working capital- Components of working capital- Operating cycle –cash conversion
5 10% 2
cycle-determinants of working capital – Sources of Working capital - Cash
management –Credit management.
6 5% 1 Financial ethics and contemporary corporate happenings in finance spectrum

Total 100% 26

4. Courseware:

4.1 Text / Reference Books

Book/ Journal/ Author Year/ edition/ Publisher
Serial
Article/case studies volume
No.
Title
I M Pandey
1 Financial Management 11th Edition,2015 Vikas Publishing house
Fundamentals of Financial Prasanna Chandra
2 6th Edition, 2016 Tata Mcgraw Hill
Management

Financial Management- M.Y.Khan and P.K. 7th Edition,

3 Tata Mcgraw Hill
Text, Problems and Cases. Jain 2016

Financial Management, Prasanna Chandra

4 9th Edition, 2015 Tata Mcgraw Hill
Theory & Practice
Dr Anil Kumar
5 Financial Management
Dhagat
1st Edition 2012 Dreamtech Press
Financial Management- A
6 N R Parasuraman 2014 Cengage
step by step Approach
7 Financial Management Ravi M. Kishore 10th Edition Taxmann
8 “Case studies in Finance” Robert F Bruner TMH

4.2 Business Newspapers :

4
 1. The Economic Times
2. Business Standard
3. Business Line

4.3 Case Studies for Class Teaching:

1. Selected cases from the book “Case studies in Finance” by Robert F Bruner (TMH)

5
 5. Course Outcome Program Outcome Mapping:

Course Title: PO1 PO2 PO3 PO4 PO5 PO6

Apply Foster Ability to Ability to understand, Ability to lead Foster creative,
knowledge of Analytical and develop Value analyse and themselves innovative,
management Critical thinking based & communicate global, and others in progressive and
theories and abilities for Socially economic, legal and the entrepreneurial
practices to data-based responsible ethical aspects of achievement mind set to take
solve business decision leadership. business in order to of advantage of
problems. making. be future ready. organizational contemporary
goals. business
opportunities.
C01: Demonstrate the basic
financial management terms,
theories and relate the HIGH HIGH MEDIUM MEDIUM HIGH
significance of these in the
practical business environment.

CO2: Apply the financial

management decisions in various
business scenarios with a view to HIGH HIGH LOW HIGH HIGH HIGH
enhance the short term and long
term value.

CO3: Solve business problems HIGH HIGH HIGH HIGH MEDIUM MEDIUM
using appropriate tools and
techniques of financial
management for effective and
ethical decision making.
6. The internal assessment

The internal assessment shall be based on the following Evaluation Criteria

Assessment Marks CO1 CO2 CO3

Assigned
Pre midterm
1. Assignment 1 15 5 10
2. Class Test 1 10 3 7
Midterm 20 4 12 4
Post midterm
3. Assignment 2 15 7.5 7.5
4. Class Test 2 10 5 5
End term 30 6 14 10
Total 100 18 55.5 26.5

6.1 Milestones / Important Dates

Sl. Assignment / Class Test / Project/ Presentation etc. Tentative Date/ SESSION
No.
1 Test -1 7th Session
2 Assignment -1 Submission 10th Session
3 Assignment -2 19th Session
4 Test-2 20th Session

6.2 Rubrics for assessment

Rubrics for Assignment-

8
Assignment Rubrics
CRITERIA Scale of Performance
% Outcome below 40% 40% but <60% 60% but < 70% 70% but < 85% 85% - 100%
CONCEPTUAL KNOWLEDGE (20 Marks) Scores
0 1 2 3 4 4.5 5 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 8.25 8.5 8.75 9 9.25 9.5 10 Obtained
Content is accurate. Information is
Content is inaccurate. Content is questionable. Content is accurate. But,
easy to follow. But, some Content is accurate and information is
Content Information not presented in Information is not presented in a information is not presented in a
information is not presented in a presented in a logical order.
Logical order. Difficult to follow. logical order. Difficult to follow. logical order. Difficult to follow.
logical order.
0 1 2 3 4 4.5 5 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 8.25 8.5 8.75 9 9.25 9.5 10

Demonstrates little or no
Response shows some
Conceptual knowledge of key issues. Tries to explain Key issues. But not Shows sufficient knowledge and Demonstrates thorough knowledge and
understanding of the concepts.
knowledge Unable to comprehend / Poor clear. understanding of key issues understanding of key issues
Tries to bring clarity.
understanding
CRITICAL THINKING, ANALYTICAL AND APPLICATION SKILLS (45 Marks)
0 3 6 9 10 12 14 15 16 16.5 17 17.5 18 18.5 19 19.5 20 20.5 21 22 22.5 23 24 25

Application of theory is evident, Understanding of theory is

Appropriate understanding and Evident understanding of theory with
Skill in applying Theories are not linked to however not drawn to appropriate. However, poorly
application of theory. Conclusions correct application and drawn to an
theory conclusions conclusions. Lack of proper applied. Attempted to draw
drawn are sufficiently clear. effective conclusion.
understanding of theories appropriate conclusions
0 2 4 6 8 9 10 11 12 12.5 13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 18 18.5 19 20

No or limited attempt made to Proficient attempt to interpret the

Critical analysis Adequate attempt to interpret the
interpret the results. No Minimal attempt to analyze the results. Attempted to give accurate Advanced attempt to accurately interpret
and logical results and apply analytical tools to
attempt made to analyze the results. analysis. Scope for advanced and analyze the results.
reasoning analyze them.
results. efforts.
OVERALL PERFORMANCE (10 Marks)
0 1 2 3 4 4.5 5 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 8.25 8.5 8.75 9 9.25 9.5 10

Work is not adequately organized. Work is presented in neat and Work is presented in neat, clear and
Neatness and Work appears unorganised. Work is presented neatly. However,
It is hard to know what organized way usually easy to organized way with effective analysis
organization Lacks clarity. lacks clarity.
information goes together. understand. leading to effective conclusion

Special
Total Marks (out of 75)
Remarks
7. Special information on Coursework
Assignment: Progressive in nature
Select industry groups are identified
1) Pre Mid-term: Students are grouped in teams of six. Each team to select one business unit in
the specified sector and is to make the long term investment for the unit. The individual
parameters/variables for each team will be pre fixed.
Each team is to project the cash flows for the expected life of the project and the necessary
adjustments for taxation. The investment proposal need be evaluated using the different
methods learned during the sessions. A report on the same is to be prepared and submitted.
2) Post Mid-term: Student groups are expected to read the contents of selected financial reports
from the annual report of listed Indian companies (NIFTY, SENSEX and other major indices)
and the relevant notes or schedules attached to the statements, Identify the major sources of
capital, carry out a capital structure analysis and the leverage analysis of the given company.
Identify the key financial indicators and highlights of the trend. A report on the same is to be
prepared and submitted.
3) Criteria for evaluation :
Rubrics based on content, conceptual knowledge, skill in applying theory, critical analysis and
logical reasoning, neatness and organization.
8. Mid Term Examination Coverage and QP pattern

Section A CO 1 & CO 2 8 Marks

Section B CO 1 & CO 2 10 Marks

Section C CO2 & CO 3 12 Marks

9. End Term Examination Coverage and QP pattern

The end term examination shall be for 3 hours and shall cover all the topics that are envisaged in
this plan and the pattern will be as follows:
Section A CO 1,2,3 20

Section B CO 1,2,3 21
Section C CO 2,3 19

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10. Course Implementation: Module and Session Plan
Module
Pedagogy/ Courseware (Cases/
Nu Sessions Topics Activity readings/ book & chapter
mbe Weight age (% references) Evaluation
r
of total content)
Basic concepts of Financial Management: Fin Mgmt By IM Pandey
Introduction to Financial Management - Role of Lecture and Ch 1
1
Financial Management in Business- Financial discussions
decision in firm.
Time value of money – Compounding – future Fin Mgmt By IM Pandey
value of single period cash flow, multi period cash Lecture And Ch 2
2
flow & annuity, Problem Solving

Fin Mgmt By IM Pandey Ch

2
Time value of money – Discounting– PV of single Lecture And
1 20% 3 Financial Management- A Class Test 1
period cash flows, annuity, uneven cash flows, Problem Solving
step-by Step Approach by
N.R. Parasuraman Ch14
Fin Mgmt By IM Pandey Ch
2, Ch 4
Time value of money – Application of Lecture And
4 Financial Management- A
compounding and discounting concepts Problem Solving
step-by Step Approach by
N.R. Parasuraman Ch14
Financial Management- A
Lecture And
5 Time value of money –Risk and Return Trade off. step-by Step Approach by
Problem Solving
N.R. Parasuraman Ch5
Investment Decisions: Long Term Investment Lecture and Fin Mgmt By IM Pandey Ch
decisions-Capital Budgeting–nature, ,importance, discussions, 8
6
capital budgeting process – Investment evaluation Corporate Story
criteria telling
20% Appraisal techniques – traditional techniques – Fin Mgmt By IM Pandey Ch Assignment 1
7 Lecture and
2 payback period, ARR 8
discussions
Modern Methods – Discounted cash flow And Problem
8 techniques- NPV method Solving.
 9 IRR and PI Method.
10 IRR and PI Method.
Capital rationing – Risk Analysis in Capital Fin Mgmt By IM Pandey Ch
11 budgeting 12

Financing Decisions: Sources of Capital- Internal Fin Mgmt By IM Pandey Ch

Lecture and
12 and external sources- Long term source and Short 19,20
discussions
term sources- Capital markets
Capitalization and Cost of Capital – Estimation of Fin Mgmt By IM Pandey Ch
13 cost of debt 9
Estimation of cost of preference share capital – Cost Lecture and Fin Mgmt By IM Pandey Ch
14 Mid Term exam and
of equity & cost of retained earnings discussions 9
3 25% Estimation of cost of equity & cost of retained Fin Mgmt By IM Pandey Ch Assignment 2
And Problem
15 earnings 9,14,15
Solving.
16 Weighted Average Cost of Capital (WACC) Industry
Capital Structure Planning– Factors determining the Interaction. Financial Management- A
17 step-by Step Approach by
Capital Structure,
18 Leverage Analysis-EBIT-EPS Analysis, N.R. Parasuraman Ch10 &
19 Capital Structure & Value of the Firm 12
Dividend Decisions-determinants of dividend policy Fin Mgmt By IM Pandey Ch
20 17,18
Dividend and value of the firm-relevance and Lectures,
21 irrelevance of dividend policy Financial Management- A
Corporate Class Test 2
4 20% Storytelling And step-by Step Approach by
Dividend and value of the firm-relevance and
22 Problem Solving N.R. Parasuraman Ch13
irrelevance of dividend policy
Legal and procedural aspects of payment of
23 Dividend

Decisions related to Working Capital Lecture, Fin Mgmt By IM Pandey Ch

24 Management,-Operating cycle –cash conversion Discussions and 27,28,29,30,31
cycle-determinants of working capital – Problem Solving.
5 10 % Sources of Working capital -Estimation of working Skype/Video Financial Management- A
Capital Management of Working Capital -Working Interaction with step-by Step Approach by Class Test 2
25 capital finance in India. Industry. N.R. Parasuraman
Ch15&16

13
 5% Financial ethics and contemporary corporate Corporate General Articles and
6 26 happenings in finance spectrum Storytelling and Corporate cases World com,
Lecture Enron, Wells Fargo

14