Undergraduate Diploma  in Business Management

Course Content

3. Financial Management:

The subject shows an analytical approach to financial decisions situations. It deals with various concepts, tools and techniques of financial management. Also discusses regulatory framework, tax system, financial markets, banking arrangements and financial institutions.

• Financial Management and its functions are introduced to the students for them to be able to understand the importance of this crux of a business organization. The evolution and goals of financial management are elucidated with a brief overview of the financial system and the regulatory framework.

• Students understand the value of money and the time factor attached to the same. The relation between risk and return and the measurement & manageability of risk and return.

• Capital Budgeting is an important part of the course where students are exposed to the concepts of the cost budgeting process, NPV, IRR, payback period, and the rate of return, cost of capital, risk analysis, and the surrounding environment that at times influence the decision making in relation to capital budgeting.

• Capital Structure and its planning are discussed to bring out the overall picture and create a basis for the introduction of dividend policy and share valuations where we also discuss the various international models that are prevalent in this sector.

• Long Term finance is explained with each individual instrument from equity capital, preferential capital, debentures and term loans to retained earnings. The routes for raising such capital be it private placements, public offers or rights issues which are discussed with practical examples taken from the Indian markets in particular the Mumbai stock market which is India’s largest bourse. We also discuss the role of the regulatory framework in the markets and the forms of trading that takes place in the said instruments to vet the appetite of the students. The existence and role of the financial institutions is also covered.

• Management of capital in particular working capital is the next stage that is covered with Cash, Credit and Inventory Management being the important facets of this section. The financing of working capital is also touched upon to familiarize students with other instruments of financing like the inter-corporate receipts, working capital limits and commercial paper.

• An integral part of financial management being the analysis of the various financial statements, planning and control is covered to bring out the focus on the area of analyzing of the financial statements and the role of effective planning and budgeting in the overall management of finance.

• We finally look into the area of International Financial Management, which includes the Forex markets, the importance in exports and imports and the instruments and documents in International trade. The management of the exposure in foreign exchange is also covered.

4. Indian Economy:

It critically evaluates achievements and failures of Indian Economy. Discusses in detail about Industrial de-licensing, Foreign Investment, Financial sector, Capital markets, International trade & Economic Planning.

• This part of the course starts with the introduction of the Economic Policy of India since Independence and discussed the economic development since. The Demographic trends and the important issue of Population and relation with economic development, is highlighted.

• The concept of National Income is introduced to the students to explain along with the methodologies that go with the calculation of the same. The importance of this measure is discussed in addition to covering the problem of poverty and the steps taken for poverty alleviation in the past 50 years in the country. The disparity of incomes among sections of society is detailed to understand the real problem of the prevalence of inequality in our economy.

• The magnitude of unemployment in India is looked into and the various types of employment are discussed, the measures taken to correct the problem and the future position on the issue which form an important part of the program are covered in this section.

• Indian is primarily an agrarian economy and thus a significant part of the program is dedicated to the issues related to this sector for the students to understand our economy and its environment. Agricultural production is looked into and the means to improve productivity. With a growing population the pressure has always been on the agricultural sector, which accounts for 1/3^rd of the national income of India.

• The Green Revolution, Land reforms post independence, types and methods of irrigation and farm inputs, agricultural marketing, agricultural credit and agricultural planning cover the next part of this section giving due importance to the agricultural sector.

• We then move on to the Industrial development and planning with a focused covering of the rural and small-scale industries. The industrial policy is discussed in brief also touching on the role of MRTP in India and the importance of the Public Sector and the problems that surround it.

• The role of the Central Bank, which is the Reserve Bank Of India is scrutinized and commercial and co-operative banking is covered. Money supply, Transport, Foreign Trade, Balance of Payments, Mobilization of resources and taxation are discussed to give an in depth look into the Indian economy.

• We conclude with a look into Planning and Economic Development, the Seventh and the Eighth Five Year Plan and the New Economic Policy of India.

Supplied Text to the students: Indian Economy by A N Agarwal