B.B.M Mangalore University-FINANCIAL MANAGEMENT-ELECTIVE

BM - 305/306: FINANCIAL MANAGEMENT-ELECTIVE
PAPER-I (FMI) INVESTMENT DECISIONS AND WORKING CAPITAL MANAGEMENT
Objective: To enable the students to analyze complex investments decisions and to acquaint the students with the concept and techniques of working capital management.
UNIT I
Investment Decisions under certainty - Project Designing. Planning. Project planning & Appraisal project implementation & control 12 hrs.
UNIT II
Investment decisions under uncertainty - Project evaluation under risk & uncertainty
12 hrs.
UNIT III
Working Capital Management - an overview, concept of working capital. determination of optimum investment in current assets Assessment of working capital requirements. working Capital Finance - Forms of Credit, working Capital Control & Banking policy. Exposure limits/permissible limits, policy guidelines regarding working capital. Tandon & Chore Committee recommendations on working capital financing - Working capital trends in India. Term loans - norms. assessment/exposure limits. Securitization – Policy - SARFACSI Act Importance & Scope. 12 hrs.
UNIT IV
Management of Cash and Marketable securities - Motives for holding cash: cash management objectives: determinants of cash needs, preparation of cash budgets. determination of optimum cash balance, CRR-Role of reputation
12 hrs.
UNIT V
Management of Receivables - Inventory - Objectives costs. Benefits. Credit policies; Credit Terms; Collection policies, Optimum Credit Policy; Techniques of inventory management -EOQ Stock Levels, Methods & Calculation 12 hrs.
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Total 60 hrs.
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BOOKS FOR STUDY:
1. Brown J.L. - Principles & Practice of Management Accounting.
2. Chaudary S.B. - Management Accounting.
3. Ghosh P.K. & Gupta G.S. - Fundamentals of Management Accounting.
4. I.M.Pandey - Financial Management
5. Khan & Jain - Financial Management
6. B.S.Raman - Management Accounting
7.S.N.Maheshwari - Problems & Solution:, in Management Accounting & Finance
Accounting.
BOOKS FOR REFERENCE:
1. Shukla & Grewal - Advanced Accounts.
2. Morngren .lames - Financial Management.