Fundamentals of Financial Management

Paper Code: 
25EBSG 316
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course will empower students to grasp essential financial management concepts such as financial planning, ratio analysis, leverage, break-even analysis, inventory management, capitalbudgeting, dividend policy, cost of capital, and capital structure, enabling them to understand finance.

 

 

Course Outcomes: 

Course

Course Outcomes (at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

 

 

CO103: Student will analyze the concept of financial

Approach                     in teaching: Interactive Lectures, Discussion, Tutorials.

Learning activities for the students: Reading assignments, Case studies, Demonstration

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

 

 

management and interpret the role of financial planning

 

 

in business decision making.

 

 

CO104: Student will examine the financial statements

 

 

according to Ratio analysis and leverages.

 

 

CO105: Student will evaluate the significance of break

 

 

even and inventory control management in business.

 

25EBSG3

16

Fundamental s of Financial Management (Theory)

CO106: Students will compare different Capital Budgeting techniques and Dividend policy decisions in business.

CO107: Student will analyze the various methods of calculation of cost of capital and interpret the concept of Capital structure.

CO108: Contribute effectively in course-specific interaction

 

9.00
Unit I: 
Financial Management and Financial Planning:

                                               

 

  • Meaning, Scope, Importance and Limitations.
  • Analysis of Financial Statements. Financial Planning:
  • Objectives, Significance & Factors affecting Financial Planning.

 

 

 

  •  

 

 

 

9.00
Unit II: 
Ratio Analysis and Operating and Financial Leverages:

                                

  • 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.

 

 

  •  

 

9.00
Unit III: 
Break Even Analysis and Inventory Management:
 

 

    

Meaning and Methods of Break Even Analysis.

  • Inventory Management Meaning, Importance and Techniques of Inventory control

 

9.00
Unit IV: 
Capital Budgeting and Dividend and Dividend policy:

 

                               

  • Meaning, Process and Techniques of Capital Budgeting.
  • Dividend and Dividend policy: Meaning, Forms of dividend, Factors effecting dividend policies.

 

 

 

 

9.00
Unit V: 
Cost of Capital and Capital Structure and Capitalization

                                           

                                 

 

  • Concept, factors affecting cost of capital
  • Computation of cost of capital.
  • Capital Structure and Capitalization: Meaning, concepts, Difference between capital structure and capitalization and 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 and practice”, (Tata Mc Graw Hill).
  • Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India

Reference Books

  • Chandra, P ,Financial Management : Theory & Practice, Tata McGraw-Hill Education
  • 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.

 

 

References: 

 

 

E Resources

 

Reference Journals

 

Academic Year: 
2025-2026
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