FINANCIAL MANAGEMENT

Paper Code: 
CBFS 302
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the student to apply financial management techniques such as conduct ratio analysis, learn to manage working capital, and make financial and investment decisions utilizing capital budgeting and cost of capital techniques

Course Outcomes: 

 

 

Course

 

 

Learning outcome (at course level)

Learning  and Teaching Strategies

Assessment Strategies

Course Code

 

 

Course Title

CBFS302

Financial Management (Theory)

 
  1. Analyze the role of financial management, and financial planning in business and conceptualize the significance of the time value of money in real world.
  2. Analyze the financial health of a company using the concepts of ratios and leverages.
  3. Estimate the working capital requirement of a firm and correlate the concept of Break-even while working in industry
  4. Compare projects by applying different Capital Budgeting techniques and make profitable decisions.
  5. Compute Cost of capital and decide capital structure while making financing decisions
  6. Contribute effectively in course-specific interaction

Approach in teaching: Blended Learning, Collaborative approach, Interactive Lectures, Discussion, Group Projects, PowerPoint presentation.

   

Learning activities for the students:

Self-learning assignments, Seminar presentations, Case Study Analysis, Brainstorming activities

 

Class tests, CA Test,

Semester end examinations, Quiz,

Evaluation of student Presentations,

 

Evaluation of Individual and group projects,

 

Assessment of Project Reports and viva voce.

 

12.00
Unit I: 
ratios, Leverage ratios, and Investment ratios.

: Financial Management, Planning, and Time Value of Money (12 Hours)
• 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: 
ratios, Leverage ratios, and Investment ratios.

Ratio Analysis and Operating and Financial Leverages (12 Hours)

• 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, Cost Volume Profit Analysis and Inventory Management

: Working Capital Management, Cost Volume Profit Analysis and Inventory Management (12 Hours)
• 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,Selective Inventory controls technique

12.00
Unit IV: 
Capital Budgeting and Dividend policy

Capital Budgeting and Dividend policy (12 Hours)

• 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, Capital Structure and Capitalisation

Cost of Capital, Capital Structure and Capitalisation (12 Hours)

• 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 of sound optimal capital structure, concept of trading on equity, Factors affecting capital structure

Essential Readings: 

Essential Readings:
1. Agarwal MR- “Financial Management” Garima Publication, Jaipur
2. Agarwal & Agarwal "Financial Management" RBD Publication. Jaipur
3. Bhalla, V.K., “Financial Management & Policy,” (Anmol Publications, Delhi)
4. Chandra, P ,Financial Management : Theory & Practice, Tata McGraw-Hill Education
5. Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India

References: 

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

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

Academic Year: 
2023-2024
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