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Financial Management [1]

Paper Code: 
24CFSG303
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

The students will be enabled to analyze financial management techniques, conduct ratio analysis, manage working capital, evaluate capital budgeting decisions, and understand cost of capital.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24CFSG 303

 

Financial Management

(Theory)

CO 73: Analyze financial management, financial planning, and the time value of money in business.

CO 74:Analyze a company's financial health using ratios and leverages.

CO 75:Estimate working capital requirements, break-even analysis, and inventory management for firms.

CO 76:Compare projects using capital budgeting techniques, and dividend policies, and make profitable decisions.

CO 77:Compute cost of capital and determine capital structure for financing decisions.

CO 78: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, and PowerPoint presentations.    

 Learning activities for the students: Self-learning assignments, Seminar presentation,  Practical problems analysis

CA test, Semester end examinations, Quiz, Assignments, Presentations.

 

12.00
Unit I: 
Financial Management, 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
  • Practical: Assess financial statements  for performance evaluation.

 

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.
  • Practical: Use ratios to assess company performance and understand leverage effects on operations.

 

12.00
Unit III: 
Working Capital Management, Cost Volume 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,Selective Inventory controls technique
  • Practical: Prepare a presentation  on  working capital management, inventory optimization, or cost-volume-profit analysis concepts.

 

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
  • Practical: Apply capital budgeting techniques to assess investment options or analyze dividend policies using various models to make informed financial decisions.

 

12.00
Unit V: 
Cost of Capital, Capital Structure and Capitalisation
  • 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 effecting capital structure
  • Practical:  Calculate the cost of capital for a company and discuss its 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 Readings:

 

  • 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- Content:

 

Reference Journals:

Note:   The candidate shall be permitted to use battery operated pocket calculator that should not       have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless.

 

 

 

 

 

Academic Year: 
2024-2025 [5]

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