Financial Management (Theory)

Paper Code: 
ATG/BSG/FSG/BSR/FSM/HRG/IBG 314
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to familiarize the students with fundamental principles and practices of Financial Management in business.

COURSE OUTCOMES (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

 

 

 

 

ATG/BSG/FSG

/BSR/FSM/

HRG/IBG 314

 

 

 

 

 

Financial Management

CO 1:Understand the concept of financial management and the parties involved in the business.

CO 2:Interpret the Financial statements according to Ratio analysis in business concerns.

CO 3:Evaluate the Capital Budgeting decisions and Dividend policy decisions.

CO 4:Understand different types of Financial decisions.

CO 5:Explore the various Capital structure concepts in Financial Management.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, Case studies, Demonstration

Learning activities for the students:

Self learning assignments, Effective questions, Seminar presentation, Giving tasks 

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

 

 

 

10.00
Unit I: 
Financial Management:
  • Meaning, Scope, Importance and Limitations.
  •  Analysis of Financial Statements.
  • Financial Planning: Objectives, Significance & Factors affecting Financial Planning.

 

8.00
Unit II: 
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.

 

9.00
Unit III: 
Break Even Analysis:
  • Meaning and Methods of Break Even Analysis.
  • Inventory Management: Meaning, Importance,
  •  Techniques of Inventory control

 

8.00
Unit IV: 
Capital Budgeting:
  • Meaning, Process and Techniques of Capital Budgeting.
  • Dividend and Dividend policy: Meaning, Forms of dividend,
  • Factors effecting dividend policies.

 

10.00
Unit V: 
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,
  • factors effecting capital structure

 

References: 

 

  • 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).
  • 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.
Academic Year: 
2020-2021
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