FINANCIAL MANAGEMENT - CPC5A

Unit – I

Meaning and Objectives of Financial Management – Functions of Financial

Management. Finance – Importance of Finance – Sources of Finance – Role
of Financial Manager in Financial Management

Unit – II

Capital Structure: Meaning – Factors Affecting Capital Structure – Planning

– Theories of Capital Structure – Determining Debt Equity Proportion –
Leverage Concepts

Unit – III

Cost of Capital: Definition - Cost of Equity Capital - Cost of Preference

Capital – Cost of Debt – Cost of Retained Earning – Weighted Average (or)
Composite Cost of Capital (WACC)

Unit – IV

Dividend: Dividend Policies – Factors Affecting Dividend Payment –

Provisions on Dividend Payment in Company Law – Dividend Models:
Walter’s Model – Gordon’s Model – M.M Model – Hypothesis Model

Unit – V

Working Capital: Meaning and Importance – Factors Influencing Working

Capital – Determining (or) Forecasting of Working Capital Requirements -
Working Capital Operating Cycle.

Note: Questions in Sections A, B, & C shall be in

the proportion of 80:20 between Theory and
Problems.

Suggested Readings
1. Financial Management by I.M. Pandey
2. Financial Management by Prasanna Chandra
3. Financial Management by S N Maheswari

4. Financial Management by Khan & Jain

 ENTREPRENEURIAL DEVELOPMENT
Unit – I: Concept of Entrepreneurship
Entrepreneurship - Meaning - Types - Qualities of an Entrepreneur - Classification of
Entrepreneurs - Factors Influencing Entrepreneurship - Functions of Entrepreneurs

Unit – II: Entrepreneurial Development Agencies

Commercial Banks - District Industrial Centre - National Small Industries Corporations -
Small Industries Development Organization - Small Industries Service Institute. All India
Financial Institutions. SIPCOT and its Objectives. Objectives of Ministry of MSME. Role and
Functions of MSME - Development Organization (MSME - DO) - Objectives of SIDCO -
Functions of Tamilnadu SIDCO - IRBI and its Role. NABARD and its role in the Rural
Development of India - Introduction to Micro Units Development Refinance Agency
(MUDRA)

Unit – III: Project Management

Business Idea Generation Techniques - Identification of Business Opportunities - Feasibility
Study - Marketing, Finance, Technology and Legal Formalities - Preparation of Project
Report - Tools of Appraisal

Unit – IV: Entrepreneurial Development Programmes

Entrepreneurial Development Programmes (EDP) - Role, Relevance and Achievements -
Role of Government in Organizing EDPs - Critical Evaluation

Unit – V: Economic Development and Entrepreneurial Growth

Role of Entrepreneur in Economic Growth - Strategic Approaches in the Changing
Economic Scenario for Small Scale Entrepreneurs - Networking, Niche Play - Geographical
Concentration, Franchising / Dealership - Development of Women Entrepreneurship. Self-
help Groups and Empowerment of Women in India - Financing SHG and their Role in
Micro-Financing. Financial Inclusion and its Penetration in India, Challenges and
Government Role in Financial Inclusion - Pradhan Mantri Jan-Dhan Yojana - Six Pillars of Its
Mission Objectives

SUGGESTED READINGS
1. Entrepreneurial Development By S S Khanka, S. Chand Publishing.2012
2. Entrepreneurship Development By By Dr. Sanjay R Ajmeri
3. ENTREPRENEURSHIP DEVELOPMENT By By SANGEETA SHARMA, PHI Learning Pvt.
Ltd.
4. Gupta, C.B., Srinivasan, N.P., Entrepreneurship Development in India, (Text and
cases) New Delhi, Sultan Chand & Sons, 1992.
5. Khan, R.R.. Management of Small Scale Industries, New Delhi, Sultan Chand & Co.,
1979. Saravanavel, P.