Syllabus Engineering Economics and Financial Management - (301004) Credit Examination Scheme 03 In semester exam : 30 Marks End semester exam : 70 Marks Unit I : Construction Economics Economics : definition, principles, importance in construction industry, assets, liabilities, balance sheet, numerical on preparation balance sheet, profit & loss account, difference between microeconomics and macroeconomics, basic economic problems along with case studies. Construction economics : structure of construction industry, economics of road and buildings, irrigation and power, ports and aviation. (Chapter - 1) Unit II : Introduction to Financial Management Long - and short-term sources of finance, equity, debt government grants & alternative sources, numerical on calculation of leverage ratio, EBIT & dividend pay-out, financial market & instruments : money, market, secondary market, credit, bill & income security market; goal of financial management, key activities in financial management, role of financing institutes in construction sector : banking institutions, NBFc, housing finance institutions & others. (Chapter - 2) Unit III : Contract Costing Construction financial management, role of financial manager in construction financial management, meaning and features of contract costing, types of contract and contract costing procedure, Contract account : definition, format/specimen of contract account, treatment of various items in the contract account, methods of recording and reporting site accounts between project office and head office. (Chapter - 3) Unit IV : Capital Budgeting Budget, types of budgets, master budgets, cost estimating and budgeting in civil engineering project, definition of capital budgeting, time value of money, simple and compound interest, numerical on computation of interest, rule of 72, process of capital budgeting, techniques of capital budgeting, economic decision making in construction project, depreciation, different methods to calculate depreciation and numerical on it, impact of depreciation in economic decision making. (Chapter - 4) Unit V : Working Capital Meaning, types of working capital, components of working capital, operating cycle, factors affecting working capital requirement, working capital management, estimation of working capital, components of working capital in Construction Company, inventory management techniques and financing resources of working capital. (Chapter - 5) Unit VI : Taxation and Financial Regulatory Bodies Introduction to direct and indirect tax, GST, impact of GST on construction industry, tax exemption for contractors, property tax : types, methods of calculation & numerical on computation of property tax, tax deductions against income from property, corporate tax planning, financial regulatory bodies : role & functions, ICRA (Information and Credit Rating Agency of India), SEBI (Security and Exchange Board of India), IRDA (Insurance Regulatory & Development Authority) and RBI (Reserve Bank of India). (Chapter - 6)
