1. INTRODUCTION TO FINANCE IIPM CHENNAI FOR UGP/ 2010-13 BY CA. R.S.SIVARAMAN M.Sc; M.Com; ACA; DISA(ICAI);PGDCA;MIMA CHARTERED ACCOUNTANT

2. INTRODUCTION TO FINANCE Credits: 02 (24 hours) 1. INTRODUCTION TO FINANCIAL MANAGEMENT(2 HRS) Role of finance, financial planning and financial management in an organization Difference between financial planning and financial management Objective of financial management Functions of financial management – financing decisions, investment decisions and dividend decisions 2. TIME VALUE OF MONEY(2 HRS) Concept of time value of money,Time value for annuities, Present value of a given cash flow, Concept of Net Present Value 3. FINANCIAL STATEMENT ANALYSIS(10 HRS) Uses of Financial Analysis, Nature of Ratio Analysis, Liquidity Ratios, Leverage Ratios, Activity Ratios, Profitability Ratios, Evaluation of a Firm's Earning Power Comparative Statements Analysis, Trend Analysis, Inter-firm Analysis, Utility of Ratio Analysis -Cautions in using Ratio Analysis 4. CAPITAL BUDGETING(4 HRS) Nature of Investment Decisions, Investment Evaluation Criteria, Net Present Value Method, Internal rate of Return Method Profitability Index, Payback Period method 5. COST OF CAPITAL AND CAPITAL STRUCTURE(6 HRS) Sources of financing, Short term vs. long term financing options,Calculation of cost of capital Debt vs equity and determinants of capital structure,Modgliani Miller hypothesis on capital structure and valuation (basic introduction)