Financial Management

Paper Code: 
24AAF311
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objective:

 

This course will enable the students to develop the knowledge and skills expected of a finance manager in relation to financial decisions.

 

Course Outcomes (COs):

Course

Course Outcomes

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

24AAF311

Financial Management

(Theory)

CO85: Analyze financial management function and economic Environment for business

CO86: Assess working capital needs of an organization

CO87: Evaluate investment proposals and sources of business finance

CO88: Evaluate and apply principles of business and asset valuations

CO89: Apply risk management techniques in the business.

CO90: Contribute effectively in course – specific interaction.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials

 

Learning activities for the students:

assignments, Self-learning assignments, Objective questions

 

Class test, Semester end examinations, Quiz, Assignments, Individual projects

 

12.00
Unit I: 
Financial Management and Financial Environment:

• 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
• Economic environment for business - role of fiscal, monetary, interest rate and exchange rate policies in achieving macroeconomic policy targets, competition policy, government assistance for business, green policies, corporate governance
• Nature and role of financial markets, nature and role of money market

12.00
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

12.00
Unit III: 
Investment Appraisal and Business Finance:

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

12.00
Unit IV: 
Business Valuations:

• Nature and purpose of the valuation of business and financial assets; Models for the valuation of shares- asset-based valuation models, Price / Earnings ratio method, discounted cash flow basis; valuation of debt and other financial assets; Efficient market hypothesis (EMH) and practical considerations in the valuation of shares

12.00
Unit V: 
Risk Management and Technology:

• 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
• Use computer technology to efficiently access and manipulate relevant information, Present data and information effectively, using the appropriate tools

Essential Readings: 

1. Study Text and Exam Kit of Financial Management, Kaplan Publishers
2. Study Text and Exam Kit of Financial Management, BPP Publishers

References: 

1. J. Van Horne, John Wachowicz , Fundamentals of Financial Management, Prentice Hall Publications
2. Chandra, P., “Financial Management- theory and practice”, Tata McGraw Hill
3. Khan and Jain., “Financial Management text and problems, Tata McGraw Hill, India
4. Pandey, I.M., “Financial Management”, Vikas Publications
5. Bhalla, V.K., “Financial Management & Policy,” Anmol Publications, Delhi
6. Agarwal MR- “Financial Management” Garima Publication, Jaipur

E-Content:
1. FM technical articles and past papers
https://www.accaglobal.com/gb/en/student/exam-support-resources
2. Theory & Problems in financial management, 2/e Khan & Jain, https://www.expresslibrary.mheducation.com/bookshelf
3. Derivatives, Sundaram, Rangarajan, Mcgraw Hill
https://www.expresslibrary.mheducation.com/bookshelf

Reference Journals:
1. Indian Journal of Finance
2. International Journal of Financial Management

Academic Year: