FINANCIAL MANAGEMENT

Paper Code: 
CFSG 311
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO61 Analyze the role of financial management ,financial planning in business and conceptualize the  significance of time value of money in real world.

CO62 Analyze financial health of a company using the concepts of  ratios and leverages.

CO63 Estimate working capital requirement of a firm and correlate the concept of Break even while working in industry

CO64 Compare projects by applying   different Capital Budgeting techniques and  make profitable decisions.

CO65 Compute Cost of capital and decide capital structure while taking financing decisions

 

Interactive Lectures, Discussion, Tutorials, Reading assignments, Practical Cases, Power point presentation and Solving Questions.   

 

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

12.00
Unit I: 
Financial Management and Planning

Financial Management:
Meaning, Objectives, Scope, Importance and Limitations, Techniques of financial statement analysis: Comparative financial statement, Common size financial statement, Break even analysis, Ratio analysis ,trend analysis, cash flow analysis, others .
Financial Planning:
Objectives, Significance & Factors affecting Financial Planning.
Time value of Money :
Future Value of a Single Cash Flow,Future Value of an Annuity
Present Value of Series of Cash Flows, Present Value of an Annuity, Present Value of Uneven Cash Flows

12.00
Unit II: 
Ratio Analysis and Leverages

Ratio Analysis:
Meaning and classification of ratio-Liquidity ratio, Activity ratios, Profitability ratios, Leverage ratios and Investment ratios.
Operating and Financial Leverages:
Meaning and Types of leverages- Operating, Financial and Combined leverages.

12.00
Unit III: 
Working Capital , Cost Profit Analysis and Inventory Management

Working Capital Management-
Concepts of Working Capital, sources of short-term finance,Concept of Operating Cycle method
Cost-Volume-Profit Analysis:
Meaning and Methods of CVP Analysis: Contribution, P/V ratio, BEP, Margin of Safety
Inventory Management:
Meaning, Importance, Techniques of Inventory control- EOQ, ROL, Fixing Stock level,Selective Inventory controls technique

12.00
Unit IV: 
Capital Budgeting and Dividend Policy

Capital Budgeting:
Meaning, Process and Techniques of Capital Budgeting- Pay Back Period, Post Payback Profitability, ARR,NPV, Profitability Index,IRR, Terminal value method .
Dividend and Dividend policy:
Meaning, Forms of dividend, Factors effecting dividend policies. Dividend Models-Walter Model,Gorden Model,MM Model

12.00
Unit V: 
Cost of capital: and Capital Structure and Capitalization:

Cost of capital:
Concept, factors affecting cost of capital, Computation of cost of capital.
Capital Structure and Capitalization: Meaning, concepts, Difference between capital structure and capitalization, Balanced or Optimal capital structure, essentials pf sound optimal capital structure, concept of trading on equity, Factors effecting capital structure

Essential Readings: 

SUGGESTED TEXT BOOKS
• Agarwal MR- “Financial Management” Garima Publication, Jaipur
• Agarwal & Agarwal "Financial Management" RBD Publication. Jaipur
• Bhalla, V.K., “Financial Management & Policy,” (Anmol Publications, Delhi)
• Chandra, P ,Financial Management : Theory & Practice, Tata McGraw-Hill Education
• Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India

SUGGESTED REFERENCE BOOKS
• Rustagi, “Fundamentals of Financial Management”,(Galgotia Publishing House,
Delhi)
• Maheshwari S.N –Financial Management, Sultan Chand and Sons, New Delhi
• Horne, J.C. Van., “Fundamentals of Financial Management”, 9th ed. (New Delhi Prentice Hall of India 1995).
• Khan and Jain., “Financial Management text and problems”, 2nd ed. ( Tata Mc Graw
• Hill New Delhi 1992).
• Pandey, I.M., “Financial Management”, Vikas Publications.

E RESOURCES
• Pearson ThinkTank Solutions (113 titles) and access to many more ebooks- http://ebookcentral.proquest.com/lib/iisuniv-ebooks/home.action
• Capitaline
• IM Pandey, Ramesh Bhat, Cases in Finaincial Management,McGraw Hill Education https://www.expresslibrary.mheducation.com/bookshelf
• World E-book Library

JOURNAL
• International Journal of Financial Management- http://publishingindia.com
• FIIB Business Review

Academic Year: 
2023-2024
  • Printer-friendly version
  • PDF version