Financial Management

Paper Code: 
AAF 311
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To develop the knowledge and skills expected of a finance manager, in relation to financial decisions.

10.00
Unit I: 

Financial management function: Introduction, nature and purpose of financial management; Financial objectives and relationship with corporate strategy; Stakeholders and impact on corporate objectives; Financial and other objectives in not-forprofit organizations

Financial management environment: Economic environment for business; nature and role of financial markets, institutions and money market

7.00
Unit II: 

Working Capital Management: Introduction, nature, elements and importance of working capital; Management of inventories, accounts receivable, accounts payable and cash; Determining working capital needs and funding strategies

Investment Appraisal: Investment appraisal techniques; Allowing for inflation and taxation in investment appraisal Adjusting for risk and uncertainty in investment Appraisal Specific investment decisions (lease or buy; asset replacement, capital rationing)

8.00
Unit III: 

Business finance: Sources of and raising business finances, their relative costs; Estimating the cost of capital, Capital structure theories and practical Considerations; Finance for small and medium sized entities

10.00
Unit IV: 

Business valuations: Nature and purpose of the valuation of business and financial assets; Models for the valuation of shares; valuation of debt and other financial assets; Efficient market hypothesis (EMH) and practical considerations in the valuation of shares

10.00
Unit V: 

Risk management: nature and types of risk and approaches to risk management; Causes of exchange rate differences and interest rate fluctuations; Hedging techniques for foreign currency risk and interest rate risk

Essential Readings: 

Study material of ACCA

 Agarwal MR- “Financial Management” Garima Publication, Jaipur

 Agarwal & Agarwal "Financial Management" RBD Publication. Jaipur

References: 
Bhalla, V.K., “Financial Management & Policy,” (Anmol Publications, Delhi).. Chandra, P.,
“Financial Management- theory and practice”, (Tata Mc Graw Hill).
 Rustagi, “Fundamentals of Financial Management”,( Galgotia Publishing House,
 Delhi)
 Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India
 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
 
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
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