SECOND SEMESTER
Paper II: Project Planning & Financial Strategies
Course Planner
Faculty Details :
Course Teacher : Smita Rao
Office Hours
: 10 AM to 5:30 PM
Phone
:
E-mail
: smitamishra111@gmail.com
Course Website
Required Textbook
1. Financial Management- Ravi Kishore, Taxmann’s, New Delhi.
2. Financial Management: Problems and Solutions, Ravi Kishore, Taxmann, New
Delhi
3. Financial Management – Theory & Practice by Prasanna Chandra, TMH
Publishers 2004
4. Financial Management-I.M. Pandey, Vikas publishing house, New Delhi.
5. Financial Management & Policy – V. K. Bhalla – (Anmol Publication, New
Delhi)
Course Objectives
To make the students aware about the Project Management , Risk Analysis in Capital
Budgeting , Capital structure & Value of firm , Working Capital Management , Mergers
& Takeovers , Leasing, Hire-purchase & Project Finance , Management of Cash ,
Management of Receivables , Corporate Valuation , Performance measurement &
balance score card.
Course Assessment
The subject would be assessed for internal marks on the basis of the
following parameters:1) Attendance
5 Marks
2) Subject Project/Assignment/Presentation/Subject Seminar
3) Class test
5 Marks
4) Sessionals
5 Marks
5 Marks
Home Assignments
S.No
1
2
Home Assignment
Topic
Unit II: Risk Analysis in
Capital Budgeting
Unit V: Mergers &
Takeovers
Unit VI: Leasing,
Hire-purchase
Date Given
7th Mar 2012
Last date of
submission
19th Mar 2012
13th Mar 2012
26th Mar 2012
27th Mar 2012
27th Mar 2012
9th April 2012
9th April 2012
Remarks
Project Assignment / Presenatation
10 groups would be made of 6 students each & each topic would be divided
in those 6 students for presentation.
Project Management,
Risk Analysis in Capital Budgeting,
Capital structure & Value of firm,
Working Capital Management,
Mergers & Takeovers,
Leasing, Hire-purchase & Project Finance,
Management of Cash,
Management of Receivables,
Corporate Valuation,
Performance measurement & balance score card.
Teaching Plan
Week 1__ Unit I: Project Management
________________________________________________
Lecture 1 Planning: Generation & Screening of project ideas, Market & Demand Analysis
Lecture 2 Technical Analysis, Financial estimates & projections
Lecture 3 Financing: Intermediate & Long term financing, Appraisal of term loans by Financial
Institutions.
Week 2_ Risk Analysis in Capital Budgeting
_________________________________________________
Lecture 1 Sources & perspective of risk, Sensitivity analysis,
Scenario analysis
Lecture 2 Breakeven analyses, Miller Model, Simulation analysis, Decision tree analysis
Lecture 3 Corporate risk analysis, Managing risk, Project selection under risk, Risk analysis in
practice
Week 3__ Capital structure & Value of firm, Working Capital Management
________________________________________________
Lecture 1 Assumptions & definitions, NI approach, NOI approach
Lecture 2 Traditional Position, MM position, Taxation & capital structure, Trade off theory,
signaling theory.
Lecture 3 Estimating working capital, cash cycle analysis, Working capital finance from banks.
Week 4__: Mergers & Takeovers, Leasing,
________________________________________________
Lecture 1 Introduction, Motives, Categories, Financial evaluation
Lecture 2 Economic value added & market value added Taxation aspects
Lecture 3 Types of leases, rationale for leasing, Mechanics of leasing , Operating lease,
Leasing as financial decision
Week 5__ Leasing, Hire-purchase & Project Finance, Management of Cash
_______________________________________________
Lecture 1
, Hire-purchase arrangement, Choice between leasing & hire purchase, Project
finance, Lease Vs borrow & buy evaluation
Lecture 2 - Motives of holding cash, factors determining the cash balance,
Managing the cash flow, Cash budget,
Lecture 3 Reports for control, Cash collection & disbursement, Options for investing surplus
funds & strategies for managing surplus funds, Models- the Baumol model, The Beranek Model,
The Miller-Orr Model.
Week 6__ Unit VIII: Management of Receivables, Corporate Valuation
________________________________________________
Lecture 1 Credit policies, Evaluating the debtors, Credit analysis & decision, Credit terms &
collection policies,
Lecture 2 Control of accounts receivables, Heuristic approach
Lecture 3 Adjusted book value approach, Stock & debt approach, Direct
Comparison approach, DCF approach,
Week 7_ Corporate Valuation, Performance measurement & balance score card
_________________________________________________
Lecture 1 Cash flow forecast, Continuing value, Firm value, 2 stage , 3 stage approach,
inflation & asset revaluation, EVA & MVA approach.
Lecture 2, Rationale, Financial measures, Non financial measures
Lecture 3 Balance score card, Part system, performance excellence awards,
Week 8__ Performance measurement & balance score card
________________________________________________
Lecture 1 Divisional performance measurement
Lecture 2 Strategic performance measurements
Lecture 3, Memorandum of understanding.
Beyond Syllabus Topics Planned:
S.No
Beyond Syllabus Topic
Remarks
Topics such as Working Capital , Mergers &
Takeovers , Project Finance can be covered
beyond syllabus.
Comments, Suggestions, Additional Information (if any)
Tutorial Plan :
S.No
Topic
Date given
Last day of
submission
Remarks
NA
Suggested Self Readings :
S.No
1
2
Reference to suggested article (Book
chapter/Web page (URL)/Research paper etc)
Journal of accounting & Finance, The
Research development association, Jaipur.
The Global Journal of Finance & Economics,
Serials Publications, New Delhi
Remarks