Financial Management

Paper Code: 
CBTM 403
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Paper Code

Paper Title

 

 

 

 

 

 

CBTM 403

 

 

 

 

 

 

Financial Management

CO 124 The course would help the students to demonstrate the applicability of the concept of Financial Management to understand the managerial Decisions.

CO 125 Students will be able to understand the various sources of finance and the ways of managing working capital.

CO 126 Students will be able to analyze the complexities associated with management of cost of funds in the capital Structure and various dividend decisions.

CO 127 Students will be able to evaluate various projects through capital budgeting decisions.

CO 128 The course would enable students to remember various ways of managing inventory and receivables.

CO 129 Students will be able to comprehend the various ways of managing cash and adequate liquidity in the business.

Approach in teaching:

Interactive Hours using whiteboards, Questioning & Discussion, Reading assignments, Frequent or unannounced quizzes.

Learning activities for the students:

Self learning assignments, Effective questions,  presentation, Solving problems of unsolved questions

 

Class test, Semester end examinations, Quiz,  Assignments, Class interaction
  1. Enable students to develop the understanding of financial management concepts and capitalization decisions.
  2. Develop an understanding and sound knowledge among students about the adequate capital structure of an organization and identifying various sources of finances.

 

12.00
Unit I: 

Nature of Financial Management: Finance and related disciplines; Scope of Financial Management; Profit Maximization, Wealth Maximization - Traditional and Modern Approach; Functions of finance.
Capitalization – Under Capitalization and Over Capitalization.

12.00
Unit II: 

Sources of finance: Classification - Short Term and long term sources of finance. Introduction about Financial Institutions-IDBI, IFCI, ICICI Working Capital Management: Operating cycle method and Net current asset or forecasting method.

12.00
Unit III: 

Capital Structures: Approaches to Capital Structure Theories - Net Income approach, Net Operating Income approach, Modigliani-Miller (MM) approach, Traditional approach.
Dividend Policy: Dividend models MM hypothesis, Walter's model, Gordon's model.
Leverage Analysis: Operating and Financial Leverage

12.00
Unit IV: 

Capital Budgeting - Principles and Techniques; Nature and meaning of capital budgeting; Estimation of relevant cash flows and terminal value; Evaluation techniques - Accounting Rate of Return, Net Present Value, Internal Rate of Return, Net Terminal Value, Profitably Index Method.
Management of Cash and Liquidity: Motives of holding cash, cash management, Cash Planning and Forecasting.

12.00
Unit V: 

Management of Inventory: Need to hold inventory, Objectives, importance and functions of Inventory Management, Techniques of Inventory control.
Management of Receivables: Cost associated with receivables, Objective and Factors affecting Investment in receivables, Credit Evaluation.

Essential Readings: 

1. M.Y. Khan & P.K. Jain: Financial Management Text Problem and Cases, Tata McGraw Hill Pubilshlng Co. Ltd.
2. R. P. Rustogi: Financial Management: Theory Concepts and Practices, Taxmann Publication.
3. I.M. Pandey: Financial Management: Theory and Practices, Vikas Publishing House
4. R.A. Brealey, S.C. Myers, F. Allen& P. Mohanty: Principles of Corporate Finance, McGraw Hill Higher Education
5. J.V. Horne & J.M. Wachowicz: Fundamentals of Financial Management Prentice Hall

Academic Year: 
2023-2024
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