Level of Knowledge : Expert knowledge.
Objectives . . .
- To provide conceptual clarity about the management tools and techniques used in financial planning, analysis, control and decision making.
- To provide knowledge of derivatives, forex and treasury management to enable the candidates to tackle practical situation with ease.
Detailed Contents . . .
Nature and Scope of Financial Management
Nature, significance, objectives and scope of financial management; risk-return and value of the firm; financial distress and insolvency; financial sector reforms and their impact on financial management; functions of finance executive in an organisation; financial management recent developments.
Capital Budgeting Decisions
Planning and control of capital expenditure; capital budgeting process; techniques of
capital budgeting- discounted and non-discounted cash flow methods, choice of methods; capital rationing; risk evaluation and sensitivity analysis, simulation for risk evaluation; linear programming and capital budgeting decisions.
Capital Structure Decisions
Meaning and significance of capital structure; capital structure vis-a-vis financial structure; capital structure planning and designing; optimal capital structure; determinants of capital structure; capital structure and valuation - theoretical analysis; EBIT EPS analysis; cost of capital; factors affecting cost of capital, measurement of cost of capital, weighted average cost of capital, marginal cost of capital; risk and leverage; measures of leverage, leverage effects on shareholders returns.
Sources of Company Finance
Equity, non-voting preference shares; debentures and bonds; company deposits; term loans from financial institutions and banks; international finance and syndication of loans; euro-issues and external commercial borrowings; internal funds as a source of finance; dividend policy and retention of profits; bonus shares; deferred payment arrangements; corporate taxation and its impact on corporate financing; financing cost escalation.
Introduction; types, determinants and constraints of dividend policy; different dividend theories Walters Model, Gordons Model and Modigliani-Miller Hypothesis of dividend irrelevance; forms of dividend; dividend policy - practical considerations and legal constraints; corporate dividend practices in India; statutory framework.
Working Capital Management and Control
Working capital - meaning, types, determinants; assessment of working capital requirements - operating cycle concept and applications of quantitative techniques; management of working capital - cash, receivables, inventories; financing of working capital; banking norms and macro aspects of working capital management.
Security Analysis and Portfolio Management
Security analysis - fundamental approach, technical approach and efficient capital market theory; portfolio management - meaning, objectives; portfolio theory traditional approach; modern approach - CAPM model.
Meaning, significance and scope of financial services; types of financial services merchant banking, leasing and hire purchase, venture capital, mutual funds, factoring and forfaiting, securitisation of debt, loan syndication, custodial and corporate advisory services, credit rating; present status of financial services industry in India.
Project Planning and Control
Project Planning and preparation of project report; project appraisal under normal, inflationary and deflationary conditions; project appraisal by financial institutions lending policies and appraisal norms by financial institutions; IDBI, IFCI, ICICI, etc; loan documentation and loan syndication, project review and control; social cost and benefit analysis of project.
Concept of derivatives; financial derivatives and commodity derivatives; types of derivatives forward contracts, futures contracts, options; participants in futures and options market, stock index futures; derivative markets in India.
Meaning, objectives, significance, functions and scope of treasury management; relationship between treasury management and financial management; role and responsibilities of chief finance executive; tools of treasury management; internal treasury controls; environment for treasury management, present status of treasury management in India.
Nature, significance and scope of forex management; forex manager; foreign exchange market; foreign exchange rates; determinants of foreign exchange rates; exchange rate quotes; types of exchange rates; forex trading; foreign exchange risk exposures and their management; exchange rate forecasting; present status of foreign exchange market in India.
Recent Developments in Financial, Treasury and Forex Management.
- Tata McGraw Hill publishing Co. Ltd; New Delhi.
- Financial management
- Financial Management theory & problems
- Vikas publishing House Pvt. Ltd; New Delhi
- Financial management (1999)
- Sultan Chand & Sons, Darya Ganj, New Delhi
- Financial management principles & practice
- Chaitanya publishing House, Allahabad.
- Financial management An Analytical and Conceptual Approach
- Prentice Hall of India (P) Ltd; New Delhi
- Financial Management & Policy
- West Publishing Company, St. Paul (USA)
- Contemporary Financial Markets and services
- Ammol Publications Pvt. Ltd; 437/4B, Ansari Road, Darya Ganj, New Delhi 110002.
- Financial Management and Policy
- Prentice Hall, Inc; Engleword Cliffds (USA)
- Options, Futures and other Derivative Securities
- Himalaya Publishing House
- Treasury Management in India
- Financial Futures and Options
- B. Brahmaiah & P. Subba Rao
- Black well, 118, Cowley Road, Oxford, U.K
- Financial Management
- Prentice Hall of India Pvt, Ltd; M 97, Connaught Circus, New Delhii 110001
- Financial Derivatives An introduction to Futures, Forwards, Options and Swaps
- Academy of Business Students, New Delhi
- Foreign Exchange international Finance and Risk Management
- Snowhite, Mumbai
- Foreign Exchange Management
- Foreign Exchange international Risk Management
- Prentice Hall of India (P) Ltd, New Delhi
- Financial Decision Making Concerns Problems and Cases
- John Willey & Sons, New York
- Principles Preparation Management
- Tata McGraw Hill publishing Co. Ltd, New Delhi
- Projects Preparation, Appraisal and Implementation
- International Financial Management
- Global Business Finance
- Columbia University Press.
- The Theory of Financial Management
- United Nations, New Oxford & IBH publishing Co. New Delhi
- Guidelines for Project Evaluation
- P. Dasgupta, A. Sen & S. Marglin
- Macmillan Publishing Company, New York
- International Dimensions of Financial Management
- Dennis J.O Connor Albert & T. Bueso
- West Publishing Company, New York
- Portfolio Construction, Management and Protection
- Contemporary Financial Management
- R. Charles Moyer, James R. McGuigan & William J. Kresow
- Wadhwa and Co. Pvt, Ltd; Nagpur
- Lease Financing and Hire purchase, Nerchan Banking, Mutual Funds, Factoring and Venture Capital
Journals, Reports etc.
- RBI Publications, Mumbai
- RBI Bulletin
- RBI Annual Report (latest)
- Reportcum Currency and Finance (latest)
- The world Bank Headquarters, Washington, U.S.A
- The world Bank Annual Report (latest)
- Government of India Publication, New Delhi
- Economic Survey (latest)
- Annual Report, Govt. of India, Ministry of Finance
- Report of the working Group, Reserve Bank of India
- Guidelines issued byVarious Financial institutions; Appransal of Term loans
- The journal of American Finance Association, New York.
- Journal of Finance
- Financial and Economic Dailies
Other Relevant Books