FINANCIAL MANAGEMENT

Paper Code: 
AAF 311
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO78: Analyze financial management function and  economic Environment for business

CO79: Apply working capital management techniques

CO80: Analyze investment appraisal techniques

CO81: Evaluate alternative sources of business finance

CO82: Evaluate and apply principles of business and asset valuations

CO83: Apply risk management techniques in the business.

Interactive Lectures, Discussion, Tutorials, assignments, Self-learning assignments, Objective questions, Group tasks

 

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

 

12.00
Unit I: 

Financial management function and 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; 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; 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
• 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 Text of ACCA –FM, Kaplan Publishing
• Exam Kit

References: 

• Chandra, P., “Financial Management- theory and practice”, Tata McGraw Hill
• Khan M.Y- Indian Financial Management, Tata McGraw Hill, India
• Khan and Jain., “Financial Management text and problems, Tata McGraw Hill, India
• Pandey, I.M., “Financial Management”, Vikas Publications
• Bhalla, V.K., “Financial Management & Policy,” Anmol Publications, Delhi
• Agarwal MR- “Financial Management” Garima Publication, Jaipur
e- RESOURCES:
• FM technical articles and past papers
https://www.accaglobal.com/gb/en/student/exam-support-resources
• Theory & Problems in financial management, 2/e Khan & Jain, https://www.expresslibrary.mheducation.com/bookshelf
• Derivatives, Sundaram, Rangarajan, Mcgraw Hill
https://www.expresslibrary.mheducation.com/bookshelf

REFERENCE JOURNALS:
• Indian Journal of Finance
• International Journal of Financial Management

Academic Year: 
2023-2024
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