TYBMS Sem 5 Syllabus of November 2015 Exam: Financial Management

Financial Management is a Sem 5 subject of TYBMS (Mumbai University exam). Financial Management means efficient and effective management of money or funds in order to accomplish the objectives of the organization. Financial management refers to the operational activities of a business which is responsible for obtaining and effectively utilizing of funds.

Here we present the detailed syllabus of Financial Management:

Unit 1 – 15 lectures

Introduction:

1. Meaning and scope of Financial Management
2. Functions and Objectives of Financial Management
3. Changing Role of finance managers

Working Capital Management:

1. Definition – GWC and NWC – explain core assets and noncore assets
2. Components of working capital
3. Factors determining working capital

Receivables Management:

1. Meaning and importance
2. Credit policy variables
3. Case study on credit evaluation
4. Methods of credit evaluation – traditional and numerical credit scoring
5. Monitoring the debtors – techniques – DSO, ageing schedule, collection matrix.

Cash Management:

1. Motives of holding cash
2. Strategies of cash management
3. Cash budget: meaning and objectives
4. Budgeting of receipts and payments – trading, non trading and capital
5. Preparation of monthly budget and finding out closing cash balance (excl. financial statements to be made from the working capital estimation)

Unit 2 – 15 lectures

Cost of capital and capital structures:

1. Types of capital
2. Debt
3. Equity
4. Retained earnings
5. Preference
6. Cost of capital for each type of capital
7. Weighted cost of capital
8. Marginal cost of capital – w.r.t. expansion
9. Designing capital structure alternatives
10. Types of leverages – combined, operating, financial.

Unit 3 – 15 lectures:

Capital Budgeting:

1. Introduction, types of capital, sources of capital
2. Evaluation of capital expenditure proposal from given cash flow, concept of present value
3. Techniques of appraisal of investment proposal
4. Payback period method, average rate of return method
5. Net present value method
6. Profitability index method

Unit 4 – 15 lectures:

Business Restructuring:

1. Importance
2. Financial Implication
3. Valuation

Types of Business Restructuring:

1. Merger
2. Amalgamation
3. De-Merger
4. Other Restructurings
5. (Elementary accounting problems – testing fundamental knowledge only)

Long term and short term sources of finance:

1. Traditional and modern instruments of finance including securitizations.

The list of Reference books of Financial Management is as follows:

1. Financial Management – Chandra Prasana, Tata McGraw
2. Financial Management – Khan M and Jain, Tata McGraw
3. Financial management and Policy – James, C, Prentice Hall of India
4. Financial Management – Pandey, I.M., Tata McGraw Hill
5. Fundamentals of Financial Management – Horne, J., Walchowicz, J., Prentice Hall of India
6. Investment Management – Bhalla V, S. Chand
7. Financial management – Diwan P., Pentagon
8. Financial Management – Bhalla V.K., Amol
9. Financial Management – Kapur S., S.K. Publishers
10. Financial Management Handbook – Alexander Hamilton, Global Books
11. Techniques of Financial Management – Helfert, Jaico Publishing House