Unit 1

Introduction: Financial Management an overview – Financial Decisions in a firm – Goal of FM – Function of the financial system.

Unit 2

Fundamental Valuation Concepts:Time value of money – Risk and Return. Capital Budgeting: Techniques of capital budgeting investment criteria– NPV – Benefit Cost Ratio – IRR – Payback Period – ARR – Investment appraisal in Practice – Estimation of Project cost flows.

Unit 3

Working Capital Management: Current Assets – Financing Ruling – Profit Criterion. Cash and Liquidity Management. Working Capital Financing.

Financial Analysis and Planning: financial instruments, sources of long-term, intermediate term and short term finance. Analyzing Financial Performance – Break – even analysis and Leverages – Financial Planning and Budgeting.

Textbook(s)

• Chandra, P., ‘Financial Management: Theory and Practice’, 9e, TMH, 2017.
• Denzil Watson & Antony Head, ‘Corporate Finance- Principles and Practice’, 2e, Pearson Education Asia, 2016.
• R L Varshney& K L. Maheshwari, ‘Managerial Economics’, S Chand & Sons, 22e, 2014.

Reference(s)

• Stephen Blyth, ‘An Introduction to Corporate Finance ’,McGraw Hill Book Company, 2014.
• Eugene F. Brigham & Louis C.Gapenski, ‘Financial Management – Theory and Practice’,14e, 2015.

Evaluation Pattern

Objectives

• Understand the overview of financial management
• Inculcate methods and concepts on valuation
• Familiarize with working capital management, financial analysis and planning

Course Outcomes

• CO1: Understand and apply time value concept of money and use this for investment criteria decisions.
• CO2: Evaluate the risk and return for various alternatives of investment.
• CO3: Apply the capital budgeting techniques and evaluate the investment decisions.
• CO4: Understand working capital management, cash and liquidity management and financial statements.

CO – PO Mapping