Financial Management detail syllabus for Mechanical Engineering (ME), 2017 scheme is taken from VTU official website and presented for VTU students. The course code (17ME743), and for exam duration, Teaching Hr/week, Practical Hr/week, Total Marks, internal marks, theory marks, duration and credits do visit complete sem subjects post given below.
For all other me 7th sem syllabus for be 2017 scheme vtu you can visit ME 7th Sem syllabus for BE 2017 Scheme VTU Subjects. For all other Professional Elective-III subjects do refer to Professional Elective-III. The detail syllabus for financial management is as follows.
Subject Overview:
Finance is the lifeblood of any enterprise. Financial Management is imperative for efficient utilization and generation of monetary resources and funds. The subject deals with fundamental books and records of accounts with financial analysis. The subject imparts expose to statutory levies to strengthen the understanding of government taxed and duties including the general sales tax structure. The subject includes concepts of market risks and returns to efficiently manage the cash and circumvent liquidity problems both at the individual and organizational levels. In the new CBCS scheme, topics on investment decisions and asset management decisions besides the financing decisions. The curriculum also includes costing and budgeting to enable budding engineers to make a comparative study of finance and economics and evaluate costs and revenues of engineering operations.
Module 1
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Module 2
WORKING CAPITAL MANAGEMENT: Definition, need and factors influencing the working capital requirement. Determination of operating cycle, cash cycle and operating cycle analysis. Calculation of gross working capital and net working capital requirement. LONG TERM FINANCING: Raising of finance from primary and secondary markets. Valuation of securities, features of convertible securities and warrants. Features of debt, types of debt instruments, return on investment(ROI) and credit rating of units. Shares, debentures.
Module 3
INVESTMENT DECISIONS:Inventory investment, Strategic investment, Ownership investments, lending investment, cash equivalent investment, factors affecting investment decisions, Capital Budgeting, disinvestment methods – public offer, sale of equity, cross holding ASSET MANAGEMENT DECISIONS : Current Asset Management, Fixed Asset Management, Wealth management, engineering asset management (EAM) – asset maintenance technologies, asset reliability management, project management
Module 4
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Module 5
COSTING: Classification of costs, preparation of cost sheet, absorption and variable costing, standard costing, job costing, process costing. Classification of the variances analysis – material, labor and overhead variances.
BUDGETING: Types of budgets – Flexible budgets, preparation of cash budgets, purchase and production budgets and master budget, Budgetary control, advantages & limitations of budgeting.
Course Outcomes:
- Measure the returns from engineering projects of differing risks and present a risk-return tradeoff relationship (PO 4, 12)
- Determine the financial ratios and profitability margins of projects to evaluate economic viability to accept or reject the project. (PO 11)
- Evaluate cost break ups of engineering projects and processes to determine and control the prohibitive cost components (PO 11)
- Apply a Engineering Asset Management techniques to evaluate the economic value of physical assets. (PO 1, 11, 12)
Text Books:
- Financial Management, Khan & Jain, text & problems TMH ISBN 0-07-460208-A. 20001
- Financial Accounting, Costing and Management Accounting, S. M. Maheshwari, 2000
- Srivatsava, Radhey Mohan, Financial Decision Making : Text Problem and Cases, New Delhi : Sterling Publishers (Private) Limited, 198*, pH.
- Francis, Pitt, The Foundations of Financial Management, London : Arnold Heinmann, 1983, p.l
Reference Books:
- Financial Management, I. M. Pandey, Vikas Publication House ISBN 0-7069-5435-1. 2002
- Financial Management, Abrish Gupta, Pearson.
- Financial Decision Making,Humpton. 2000
- Financial Management, Theory and Practice, Prasanna Chandra TMH ISGN -07-462047-9, 3rd edition 2002
- Essentials of Financial Management, Walker, Ernest W., New Delhi : Prentice Hall of India Pvt. Ltd, 1976, p.l
For detail syllabus of all other subjects of BE Me, 2017 regulation do visit Me 7th Sem syllabus for 2017 Regulation.
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