Finance by NPTEL

Finance is the system or study of creating, circulating and managing money.

Its is divided in 3 categories:

1. Personal Finance.
1. All financial decisions and activities of an individual, like insurance, loans, mortgages, etc.
2. Public Finance.
1. Tax system.
2. Government Expenditures.
3. Budgeting procedures.
3. Corporate Finance (Business finance).
1. Managing assets, liabilities, debts and revenues for a business.

Corporate Finance (Is the subfield of finance that deals with how companies/businesses address funding sources, capital structuring and investment decisions).

 1) Financial Management 

Week 1 : Financial management-an overview, Financial decisions in the firms, the fundamental 

principles of finance, goals of financial management, building blocks of modern finance.

Week 2 : Risk-return trade off, Organization of finance functions, Emerging role of financial

 managers’ in India, Over view of financial statements – Income statement, Balance Sheet, 

Cash flow statement, Analysis of financial statements

Week 3 : Financial Planning & forecasting, Tools & techniques of Financial Planning

 & Forecasting, Sources of finance.

Week 4 : Time Value of Money, Future value of a single amount, Present value of a single 

amount, Future value of Annuity, Present value of Annuity & Perpetuity

Week 5 : Capital Budgeting –Concept and overview, Capital budgeting process, 

Project classification, Techniquesof capital budgeting, Investment criteria

Week 6 : Net present value, internal rate of return, Modified Internal rate of return,

 Benefit cost ratio,Pay-back period method

Week 7 : Accounting rate of return, Investment appraisal in practice, Estimation of

 project cash flows – overview, Estimation of project cash flows-tools & techniques, 

Estimation of project cash flows-tools & techniques

Week 8 : Accounting rate of return, Investment appraisal in practice, Estimation 

of project cash flows – overview, Estimation of project cash flows-tools & techniques, 

Estimation of project cash flows-tools & techniques

Week 9 : Break-even analysis, some other models and tools of risk analysis, 

Project selection under risk, cost of Capital-Overview, Cost of debt & preference capital.

Week 10 : Cost of equity, Determining the proportions, WACC, WA Marginal cost of capital, 

Determining the optimum capital budget

Week 11 : Capital structure of firms-An overview, Net income approach, Net operating 

income approach, Traditional proposition, MM Proposition

Week 12 : Dividend decisions-An overview, Relevance of dividend, Dividend policy 

formulation, Dimensions of divined policy, Legal & procedural 

aspects of dividend decisions.

2) Financial Analysis (Is the process of evaluating businesses)

Week 1 : Introduction, Indian Economy, Industry & Industrial scenario in India, 

Forms of business organizations, Sole Proprietorship, Partnership firms and private 

companies, Public and Govt. Companies.

Week 2 : Content of annual reports, Quality of financial reporting, Reporting

 regulation in India, Reporting regulations for Partnership firms, Reporting 

regulations of Companies.

Week 3 : Nature & objectives of Financial Statements, Uses & Limitations of 

Financial Statements, Stakeholders of financial statements, Income Statement,

 Income Statement.

Week 4 : Income Statement, Income Statement, Balance Sheet, Balance Sheet, Balance Sheet.

Week 5 : Balance Sheet, Cash Flow Statement, Sources of financial information, 

Tools and techniques of financial statement analysis, Tools and techniques of 

financial statement analysis.

Week 6 : Tools and techniques of financial statement analysis, Ratio Analysis, Ratio Analysis, 

Ratio Analysis, Ratio Analysis.

Week 7 : Ratio Analysis, Ratio Analysis, Cash flow statement, Cash flow statement, 

Cash flow statement.

Week 8 : Cash flow statement, Comparative Statement, Common Size Statement, Du-Pont

 Analysis, Concepts on sickness, distress.

Week 9 : Report preparation of financial statement analysis, Types of business combinations,

 Consolidated financial statements, Consolidated financial atements, Consolidated financial 

statements.

Week 10 : Inter-company transactions and profit confirmations, Inter-company transactions and

 profit confirmations, Minority interest, consolidated net income and consolidated retained 

earnings, Minority interest, consolidated net income and consolidated retained earnings, Minority

 interest, consolidated net income and consolidated retained earnings.

Week 11 : Balance Sheet Under Income Tax Act, Balance Sheet Under Income Tax Act, Balance 

Sheet Under Companies Act, Balance Sheet Under Companies Act, Balance Sheet Under Companies Act.

Week 12 : Window dressing, Window dressing, Recent scandals in financial reporting, Recent 

scandals in financial reporting, Recent scandals in financial reporting.

3) Investment Analysis (Is the process of evaluating an investment for profitability & risk).

Week 1: Introduction to financial markets, institutions, and assets;Investment as a process; 

and Investment philosophies

Week 2: Fixed income securities: Term structure of interest rates; Bonds, their valuation, 

pricing, yield and duration, convexity, and their inter-relationships

Week 3: Equity as an asset class: risk-return tradeoff; Valuation approaches, DCF versus

 multipliers; Equity investment strategies

Week 4: Pricing of equity assets: Index models; Capital asset pricing model (CAPM) and 

arbitrage pricing theory (APT)

Week 5: Mutual funds as investment; Advantages and disadvantages of investing in mutual

 funds; Hedge funds, index funds, ETFs, and other categories

Week 6: Security Analysis and portfolio management; Fundamental and technical analyses; 

Portfolio theory and asset allocation; Investment strategies

Week 7: New asset classes and alternative investments; Introducing new-age assets in a 

portfolio; Cryptocurrencies as an asset class

Week 8: Portfolio performance evaluation; Factors driving portfolio performance; 

Investment strategies and market timing.

4) Mergers & Acquisitions

Week 1 : Introduction to Mergers, Acquisitions (M&A), Business Valuation

Merger types

Merger as a business strategy

Merger as a process of value creation

Theories of Mergers and Acquisitions (Merger Motives) Analyzing the strategy behind 

recent merger and acquisition

Week 2 : Takeover Tactics and Anti-takeover Defenses

The M&A Process

Acquisition Search and Due Diligence Studying different takeover tactics and defenses 

undertaken by companies in recent times.

Week 3 : Valuation in M&A: Cash Flow Based Approach

Valuation of company

Week 4 : Valuation in M&A: Cash Flow Based Approach, Valuation of Synergies, Valuation

 of company

Week 5 : Valuation in M&A: Relative Valuation Approach (Comparable Company Approach) 

and other Valuation Approaches Valuation of company

Week 6 : M&A Deal Structuring Critically evaluating a recent deal structure

Week 7 : Legal aspects of M&A, Accounting aspects of M&A

Week 8 : Alternative Exit and Restructuring Strategies:

Spin-offs, Splits, Equity Carve outs and other restructuring strategies.Analyzing the 

strategy behind recent corporate restructuring.

5) Securities (a financial instrument that hold some monetary value) market.