MGT1028 Accounting and Financial Management L T P J C

Pre-Requisite: Nil 2 1 0 4 4
Module Topics L Hrs SLO
1 Basic Accounting Procedures: Double entry system
- Classification of Accounts – Golden Rules of
Accounting. 4 1,3,7
Accounting Cycle: Books of original record; Journal,
Ledger –Subsidiary Books - Trial Balance
2 Final Accounts: Preparation of Final Accounts;
4 1,6,7
Trading, Profit and Loss Account – B alance Sheet.
3 Financial Statement Analysis I : Analysis and
interpretation of financial statements from investor
and company point of view.
5 2,4,6,7
Financial Reporting: Corpor ate Financial Reporting
- Issues and problems with special r eference to
published financial statements IAS, IFRS.
4 Fundamentals of Financial management: Financial
Management - Meaning - Scope and Objectives – Finance
1 2,7
decisions- Financial goal: Profit maximization Vs. Wealth
Maximization- Role of finance manager.
5 Time Value of Money: Time preference for money- methods of
adjusting cash flows for time value of money : Compounding
Method, Discounting Method
Risk and Return: Introducing risk and return -Risk
5 2,3,6
Diversification: systematic and unsystematic risk - Beta - Risk-free
rate - risk premium
Sources of Finance: Introduction- Short-term Funds, Long-term
Funds.
6 Finance Decisions: Cost of Capital - significance - Calculation of
cost of debt, preference capital, equity capital and retained
earnings; Weighted Average Cost of Capital. Capital Structure-
Determinants – Theories; Leverage: Financial and Operating
Leverage. 5 5,6,7
Investment Decisions : Nature of Investment Decisions,
Investment Evaluation criteria:net present value, internal rate of
return, profitability index, payback period, accounting rate of
return
7 Dividend Decisions : Determinants of Dividend, Forms of
dividends, Issues in Dividend Policy;Walter’s model, Gordon’s
model, M‐M hypothesis
4 5,6,7,8,9
Liquidity Decisions: Concepts of working capital- need of
working capital and its determinants – Types -Working capital
estimation.
8 Contemporary topics 2
Total Lecture Hours 30
# Mode: Lecture,Individual Exer cises, Team Exer cises ,
Assignments and Continuous Assessment tests .
Tutorial 2,4,6,7,9
# A minimum of 2 problems to be worked out by students in 15
ever y Tutorial Class. Another 5 problems per Tutorial Class to
be given as home work.
Projects: 60
*1. Assessment of Financial performance using final accounts
(Non-
2. Assessment of risk for different industry Contact
3. Financial decision making in listed companies Hours)

TextBooks
1. DhaneshK.Khatri (2012) “Financial Accounting & Analysis”, Tata McGraw-Hill Publishing
Limited, New Delhi.
2. I.M. Pandey (2015), Financial Management,11th Edition,Vikas Publications
Reference Books:
1. Gupta R. L. and Gupta V. K., (2012), Financial Accounting, S. Chand & Sons
Publications, New Delhi.
2. Maheshwari S N and Maheshwari S K, (2009), An Introduction to Accountancy,
9th Edition, Vikas Publishing House.
3. Shashi K Gupta, Rk Sharma (2014), Financial Management Theory & Practice, 8th Edition, Kalyani
Publishers.
4. M Y Khan, P. K J ain (2014), Financial Management, T ata M cgr aw Hill.
5. Prasanna Chandr a(2014), Fundamentals of Financial Management, Tata Mcgraw
Hill
6. James C VanHorne, John M Wachowicz (2008), Fundamentals of Financial
Management, 13th Edition, Pr entice Hall.
7. Stephen Ross, Randolph Westerfield, Bradford Jordan (2010), Fundamentals of Corporate Finance,
Tata Mcgraw Hill.
Recommended by the Board of Studies on: 3.3.2016
Compiled by: Dr. Seetharam V