Fundamentals of Financial Management

Paper Code: 
24EATG315
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course will empower students to grasp essential financial management concepts such as financial planning, ratio analysis, leverage, break-even analysis, inventory management, capital budgeting, dividend policy, cost of capital, and capital structure, enabling them to understand finance.

Course Outcomes: 

Course

Course Outcomes

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

 

 

 

 

 

 

 

24EATG315

 

 

 

 

 

 

Fundamentals of Financial Management

(Theory)

 

CO97: Student will analyze the concept of financial management and interpret the role of financial planning in business decision making.

CO98: Student will examine the financial statements according to Ratio analysis and leverages.

CO99: Student will evaluate the significance of break even and inventory control management in business.

CO100: Student will compare different Capital Budgeting techniques and Dividend policy decisions in business.

CO101:Student will analyze the various methods of calculation of cost of capital and interpret the concept of Capital structure.

CO102: Contribute effectively in course-specific interaction

Approach in teaching:

Interactive Lectures, Discussion, Tutorials.

 

Learning activities for the students: Reading assignments, Case studies, Demonstration

 

 

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

 

 

9.00
Unit I: 
Financial Management and Financial Planning:

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

9.00
Unit II: 
Ratio Analysis and Operating and Financial Leverages:

• 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 and Inventory Management

• Meaning and Methods of Break Even Analysis.
• Inventory Management Meaning, Importance and Techniques of Inventory control

9.00
Unit IV: 
Capital Budgeting and Dividend and Dividend policy:

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

9.00
Unit V: 
Cost of Capital and Capital Structure and Capitalization:

• Concept, factors affecting cost of capital
• Computation of cost of capital.
• Capital Structure and Capitalization: Meaning, concepts, Difference between capital structure and capitalization and Factors effecting capital structure

Essential Readings: 

• 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).
• Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India

References: 

Suggested Readings:
• Chandra, P ,Financial Management : Theory & Practice, Tata McGraw-Hill Education
• Rustagi, “Fundamentals of Financial Management”,(Galgotia Publishing House,
• Delhi)
• 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.

e-Resources:
• Pearson ThinkTank Solutions (113 titles) and access to many more ebooks- http://ebookcentral.proquest.com/lib/iisuniv-ebooks/home.action
• Capitaline
• IM Pandey, Ramesh Bhat, Cases in Finaincial Management,McGraw Hill Education https://www.expresslibrary.mheducation.com/bookshelf
• World E-book Library

Reference Journals:
• International Journal of Financial Management- http://publishingindia.com
• FIIB Business Review

Academic Year: