Financial Management - 1y Module 1: Financing Decisions

The Role and Environment of Managerial Finance, Indian Financial System and Long Term Financing Decisions y Module 2: The Core Concepts in Financial Management Risk and Return, Time Value of Money and Valuation of Securities y Module 3: Investment Decisions Cost of Capital, Capital Budgeting Decisions

Financial Management - 1y 100% case based teaching y Continuous evaluation by way of: y Submission of case write up by students prior to case discussion y Class participation based on assigned text book chapter and case

Financial Management 1 Module 1 (10 sessions)1. Inaugural Session - 1 2. Introduction to Financial Management

( 3 Sessions 3 Cases)3. Indian Financial System

( 1 Session 1 Case) 4. Corporate Long Term Financing Decisions (4 sessions 4 Cases) 5. General Discussion on Financing Decisions and Current Developments 1 Session

Introduction to Financial Management Topicsy The scope and functions of corporate finance and its interface with other functional areas y The concept of shareholders wealth maximisation y The CFO in the changing environment of corporate finance

Introduction to Financial Management Student PreparationTopicy The scope and functions of

Casesy Unilever Limited: Transforming

corporate finance and its interface with other functional areas y The concept of shareholders wealth maximisation y The CFO in the changing environment of corporate finance

the Finance Function

y Infosys and Satyam Computers:

Whose Wealth is Maximised?

y India s Best CFO, Praveen Kadle

Financial Management, 9e, I. M. Pandey, Ch 1 The Role and Environment of Managerial Finance (3-15)

Unilever Limited: Transforming the Finance Function Learning Objectivesy To understand the position and importance of

finance function in an organisation y To analyse the interface of finance function with other functional areas y To understand the required skill sets for an effective CFO.

Infosys and Satyam Computers: Whose Wealth is Maximised? Learning Objectivesy To understand the concept of wealth maximisation

and the different ways of maximising shareholders wealth y To contrast the way shareholders wealth was managed at Infosys and Satyam over years y To debate on the role of CFO on maximising shareholders value.

India s Best CFO, Praveen Kadle

Learning Objectivesy To understand the core function of a CFO and

his/her changing roles with the increasing business demands y To discuss the role of CFO in Tata Motors business between 2001 and 2005 y To analyse the factors that made Praveen Kadle, CFO of Tata Motors, the Best Indian CFO of 2006 y To evaluate the challenges faced by Tata Motors CFO during 2006 2008.

Module 1: Part 2 Indian Financial System

Indian Financial System Topicsy An Overview of Financial System y Constituents of Financial System y Regulation of Financial System

Indian Financial System Learning Objectivesy To analyse the role of a financial system in the

development of an economy y To understand various constituents of a country s financial system and debate on whether and how each of these constituents should work together to have the right influence on the economy y To understand the rules and regulations that govern the Indian financial markets, along with the steps taken by regulators to ensure stability amidst global financial meltdown.

Indian Financial System

Student Preparationy Case: Indian Financial System: A Young Entrepreneur s

Dilemmas y Text Book Chapter: Financial Management, 9e, I. M. Pandey, Ch 19: Capital Markets in India ( 421-431) y Internet:y y y y

www.rbi.org.in www.sebi.gov.in www.nseindia.com www.bseindia.com

Indian Financial System: A Young Entrepreneur s Dilemmas Learning Objectivesy Financial System and its Constituents y Deregulation and Latest Trends y Regulations and Regulatory Bodies

Module 1: Part 3

Corporate Long Term Financing

Corporate Long Term Financing Decisions - Topicsy Equity Financing y Initial Public Offering y Debt Financing y Follow On Public y Debentures Offering y Term Loans and Deferred Credit y Private Placement y Rights Issue y Bonus Issue y Venture Capital Financing

Corporate Long Term Financing Decisions Student Preparationy Financial Management, 9e, I. M. Pandey, Ch 20: Long Term Finance: Shares, Debentures and Term Loans (432-443) y Cases y Suzlon Energy: Financing Problems y Reliance Power ful IPO y Hindalco s Rights Issue: India s Largest Rights Issue Fiasco y Tata Steel s External Commercial Borrowings: The Payoffs

Corporate Long Term Financing Learning Objectivesy To understand the various financing options available

to run a business y To understand the advantages and disadvantages of equity financing y To understand issues involved in public offering, private placement, preferential allotment y To understand the issues involved in rights issue and bonus issue

Corporate Long Term Financing Learning Objectivesy To understand the advantages and disadvantages of

debt financing y To understand the important features of debentures in India y To understand the important features of term loans and deferred credit in India

Suzlon Energy: Financing Problems Learning Objectivesy To understand the various financing options available

to run a business y To understand the nature of business of Suzlon and to reflect upon various funding requirements through its growth phase y To evaluate the reasons for the current crisis in Suzlon y To analyse the various options available for Suzlon to come out of the liquidity crisis

Reliance Power ful IPO Learning Objectivesy To understand the various methods of raising capital y To scrutinise the pricing issue involved in public

offering and highlight the difference between public issue and private placement y To understand the public offering in the Indian context and bring out the pros and cons of raising capital via IPO.

Hindalco s Rights Issue: India s Largest Rights Issue Fiasco Learning Objectivesy To understand the efficacy and operating dynamics of

a rights issue and weigh the merits of this source of finance vis--vis other sources of finance y To discuss and deliberate on the modalities of Hindalco s rights issue and debate on its mode of financing its acquisition y To analyse the reasons for Hindalco s rights issue being undersubscribed and debate on what could have prevented such a situation.

Tata Steel s External Commercial Borrowings: The Payoffs Learning Objectivesy To understand the need and importance of ECBs and

its merits over other available fund raising options y To assess the potential of ECBs for funding foreign acquisitions y To assess the efficacy of Tata Steel s ECBs in the light of its expansion efforts.