FINANCIAL MANAGEMENT

Paper Code: 
CFSG 303
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:

CO 61: Analyze the role of financial management and financial planning in business

CO 62: Correlate the concept of Break even while working in industry and conceptualize the  significance of time value of money in real world.

CO 63: Compare and apply  different Capital Budgeting techniques and  make profitable decisions.

CO 64: Compute Cost of capital and decide capital structure while taking financing decisions

CO 65: Estimate working capital requirement of a firm and manage the inventory cost to reduce the risk.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.     

 Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

 

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

 

12.00
Unit I: 
Financial Management, Financial Planning and Time value of Money

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 Operating and Financial 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 Management, CVP 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

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: 

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

References: 

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
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