(Finance Group Major Elective 1) COURSE NAME COURSE CODE SEMESTER SUBJECT NAME SUBJECT CODE : ADVANCE DIPLOMA

A IN BUSINESS MANAGEMENT SCIENCES : BQ : THIRD : ADVANCE FINANCIAL MANAGEMENT : 13543

Teaching and Examination Scheme:TEACHING SCHEME TH 05 TU -PR -EXAMINATION SCHEME & MAXIMUM MARKS PAPER HRS 03 TH 100 OR -PR -TW -TOTAL 100

NOTE: Two tests each of 25 marks to be conducted as per the schedule given by MSBTE. Total of tests marks for all theory subjects are to be converted out of 50 and to be entered in mark sheet under the head Sessional Work. (SW) RATIONALE: The subject deals with analyzing the importance of Financial Management and various aspects of Financial Management such as corporate finance investment banking infrastructure financing etc. OBJECTIVES: 1. Understand and apply the techniques of Risk analysis 2. Various structures in Corporate Finance have to be studied. 3. To understand the basic concept of Benchmarking and applying the same to corporate finance. 4. Analyze the Investment banking for valuation purposes. DETAILED CONTENTS: Section-I (Financial Management) CHAPTER CONTENTS
CORPORATE FINANCE- Capital structuring theory & practice, investment (project) identification & feasibility analysis with sensitivities, financing options- structuring & evaluation. off shore / on shore instruments, multiple option bonds- risk analysis, financial engineering

MARKS HOURS

10

08

3 4 5 6 7

CORPORATE FINANCE- Financial benchmarking- concept of shareholder value-maximization. interest rate structuring, bond valuation, financial interest rate swaps-treasury function in corporate world INVESTMENT BANKING- Valuation of corporate / projects / investment opportunities- due diligence procedures, credit rating of countries / state / investments & instruments INVESTMENT BANKING- joint venture formulations- RBI merchant banking- role & functions- loan syndication- IPO- primary issue management INFRASTRUCTURE FINANCING- issues and considerations financial feasibility, pricing earning model financing options
Sick companies act / Provisions of BIFR / Rehabilitation of sick units Indian financial systems TOTAL

10

07

06 06 08 06 04 50

05 05 06 05 04 40

Weightage:

70 % Numerical and 30 % Theory should be asked in examination (Section-I) Section- II (Management Accounting)

CHAPTER 1 2 3 4 5 6

CONTENTS
Introduction to Management Accounting- Recent Developments and Management Accounting for Service Companies

MARKS HOURS 02 06 04 08 06 10 02 05 04 06 05 08

Cost Analysis for Pricing Decisions- Economist Model, Full Price Costing, Target ROI, Pricing, Activity Based Costing
Measuring Quality- Total Quality Control, Quality Measures, Quality Circles, ISO 9000, Cost of Quality, Non Financial Measures of performance, Capital Budgeting Nature of Capital Budgeting, data requirement identifying relevant costs, Evaluation techniques. Short Term Decision Making- Decision tree analysis, Analytical frame work, Decision situations Return on Investment Analysis- Measuring profits to assets employed, a historical perspective, Residual Income, capitalizing v/s expensing, Identification of Assets in the investment Base Some other concepts in Management AccountingEconomic Value Added Benchmarking Life Cycle Costing Activity Based Cost Modeling Value Chain Analysis Strategic Business Unit and its accounting Balanced Scorecard TOTAL

14

10

50

40

Weightage: 40 % Numerical and 60 % Theory should be asked in examination (Section-II)

REFERENCE: Author HBR Ravi M. Kishor Van Horn Helfert Erich Robert S. Kaplan, Anthony A. Atkinson S.P Jain & K.L.Narang Jawahar Lal Title HBR Students Guide to Cost accounting Financial Management & Policy Techniques of Financial Analysis ADVANCE Management Accounting Name of the Publisher Harward Business Review Taxmann PHI Jaico --

ADVANCE Cost and Management -Accounting ADVANCE Management Accounting Text S Chand Publications and Cases

INTERNET REFERENCE:
www.mckinseyquarterly.com