VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

CHOICE BASED CREDIT SYSTEM (CBCS)

SCHEME OF TEACHING AND EXAMINATION 2015-2016
B.E. Mechanical Engineering
VII SEMESTER

Teaching Hours /Week Examination Credits

Sl. Subject Lecture Tutorial Practical SEE Marks CIE

Title Duration Total
No Code Marks
(Hours) Marks

1 17ME71 Energy Engineering 3 2 0 03 60 40 100 4

2 17ME72 Fluid Power Systems 4 0 0 03 60 40 100 4

3 17ME73 Control Engineering 3 2 0 03 60 40 100 4

4 17ME74X Professional Elective - III 3 0 0 03 60 40 100 3

5 17ME75X Professional Elective-IV 3 0 0 03 60 40 100 3

6 17MEL76 Design Lab 1 0 2 03 60 40 100 2

7 17MEL77 CIM Lab 1 0 2 03 60 40 100 2

8 17MEP78 Project Phase – I - - - - 60 40 100 2

TOTAL 18 4 04 480 320 60 24

Professional Elective-III Professional Elective-IV

17ME741 Design of Thermal Equipment’s 17ME751 Automotive Electronics
17ME742 Tribology 17ME752 Fracture Mechanics
17ME743 Financial Management 17ME753 Human Resource Management
17ME744 Design for Manufacturing 17ME754 Mechatronics
17ME745 Smart Materials & MEMS 17ME755 Advanced Vibrations
1. Core subject: This is the course, which is to be compulsorily studied by a student as a core requirement to complete the requirement of a programme in a said discipline of
study.
2. Professional Elective: Elective relevant to chosen specialization/ branch
 FINANCIAL MANAGEMENT
B.E, VII Semester, Mechanical Engineering
[As per Choice Based Credit System (CBCS) scheme]
Course Code 17ME743 CIE Marks 40
Number of Lecture Hours/Week 03 SEE Marks 60
Total Number of Lecture Hours 40( 8 Hours per Module) Exam Hours 03
Credits –03
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
INTRODUCTION: Book keeping – systems of book keeping, journal and ledger posting. Financial Statement, Preparation of Trial balance,
profit and Loss Account, Balance Sheet with adjustments.

STATUTORY LEVIES: Forms of organization, direct and indirect taxes. Statutory Registration- excise Duty, central sales tax, VAT, service
tax, central and state general Sales tax, international fund availability.
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
RISK AND REQUIRED RETURN: Risk and return relationship, methods of measuring the risk, Business risk, financial risk, calculation of
expected rate of return to the portfolio, financial theories - portfolio theory , capital asset pricing model , arbitage pricing theorynumerical
problems.
RATIO ANALYSIS / ACCOUNTING RATIO: Liquidity ratio – Current ratio, quick ratio, turnover ratio, capital structure ratio- Debt – equity
ratio, Coverage ratio, Profitability ratio, Profit margin, Return on assets, Activity ratios – Inventory turnover ratio, Debtors Turnover ratio.
Preparation of the balance sheet from various ratios. Analysis of any one published balanced sheet.
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:
1. Measure the returns from engineering projects of differing risks and present a risk-return tradeoff relationship (PO 4, 12)
2. Determine the financial ratios and profitability margins of projects to evaluate economic viability to accept or reject the project.
(PO 11)
3. Evaluate cost break ups of engineering projects and processes to determine and control the prohibitive cost components (PO 11)
4. Apply a Engineering Asset Management techniques to evaluate the economic value of physical assets. (PO 1, 11, 12)

TEXT BOOKS:
1. Financial Management, Khan & Jain, text & problems TMH ISBN 0-07-460208-A. 20001
2. Financial Accounting, Costing and Management Accounting, S. M. Maheshwari, 2000
3. Srivatsava, Radhey Mohan, Financial Decision Making : Text Problem and Cases, New Delhi : Sterling Publishers (Private) Limited,
198*, pH.
4. Francis, Pitt, The Foundations of Financial Management, London : Arnold Heinmann, 1983, p.l

REFERENCE BOOKS:
1. Financial Management, I. M. Pandey, Vikas Publication House ISBN 0-7069-5435-1. 2002
2. Financial Management, Abrish Gupta, Pearson.
3. Financial Decision Making,Humpton. 2000
4. Financial Management, Theory and Practice, Prasanna Chandra TMH ISGN -07-462047-9, 3rd edition 2002
5. Essentials of Financial Management, Walker, Ernest W., New Delhi : Prentice Hall of India Pvt. Ltd, 1976, p.l