Financial Management

Paper Code: 
AAF 311
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

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

Course Outcome (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

AAF 311

 

Financial Management

Upon successful completion of this course, the student will be able to:

 

CO 84: Outline the role and purpose of the financial management function

CO 85: Assess and discuss the impact of the economic environment on financial management

CO 86: Categorize and apply working capital management techniques

CO 87: Formulate and carry out an effective investment appraisal

CO 88: Evaluate alternative sources of business finance

CO 89: Evaluate and apply principles of business and asset valuations

CO 90: Explain and apply risk management techniques in the business.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

 

Learning activities for the students:

Self learning assignments, Effective questions,  Giving tasks,

 

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

 

18.00
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-for-profit organizations                                                
  • Financial management environment: Economic environment for business; nature and role of financial markets, institutions and money market
18.00
Unit II: 
Working Capital Management
  • Introduction, nature, elementsand importance of working capital; Management of inventories,Accountsreceivable, accounts payable and cash;Determining working capital needs and funding strategies
  • Investment  Appraisal:  Investment  appraisal  techniques;Allowing for inflation and taxation in investment appraisalAdjusting for risk and uncertainty in investment appraisal;Specific investment decisions (lease or buy;asset replacement, capital rationing)
18.00
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 Dividend Policy
18.00
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
18.00
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: 
  • Bhalla, V.K., “Financial Management & Policy,” (Anmol Publications, Delhi)..
  • Chandra, P., “Financial Management- theory and practice”, (Tata McGraw Hill).
  • Rustagi, “Fundamentals of Financial Management”,( Galgotia Publishing House, Delhi)
  • Khan M.Y- Indian Financial Management, Tata McGraw 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 McGraw Hill New Delhi 1992).
  • Pandey, I.M., “Financial Management”, Vikas Publications
  • Study material of ACCA –F9
  • Agarwal MR- “Financial Management” Garima Publication, Jaipur
  • Agarwal&Agarwal "Financial Management" RBD Publication. Jaipur
Academic Year: 
2021-2022
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