FIN – 304 FINANCIAL MANAGEMENT 3 + 0 Cr

Finance is the lifeblood of the organization and good financial management is the key to the
survival and growth of the organization. Organizational managers need to have a qualitative and
comprehensive understanding of the financial dynamics of their organizations. For making
correct and balanced financial decisions, managers also need to understand the interrelationships
of the key financial variables of the organization.

LEARNING OBJECTIVES

 To develop a comprehensive understanding of financial management in the students.

 To elaborate the role of financial planning an controlling – financial forecasting and cash
budgeting tools – in planning for the organization’s financial requirements.

1. INTRODUCTION TO FINANCIAL MANAGEMENT

1.1 Nature, scope and functions
1.2 Financial decisions areas
1.3 Objectives of financial management.
1.4 Framework for financial management.

2. SHORT TERM FINACIAL MANAGEMENT

2.1 Cash Management

2.2 Marketable Securities Management
2.3 Inventory Management
2.4 Accounts Receivable Management

3. RISK AND RETURN

3.1 Risk and Return Fundamentals

3.2 Risk and Return of a Single Asset
3.3 Risk and Return of a Portfolio
3.4 The Capital Asset Pricing Model

4. FINANCIAL PLANNING AND FORECASTING

4.1 Cash Flow Statement vs. Fund Flow Statement

4.2 Sales Forecasting
4.2 Short-term Financial Projections: Cash budget and Pro-forma Financial
Statements
5. CAPITAL BUDGETING
5.1 Capital Budgeting: A Managerial Perspective
5.2 Estimation and Identification of the relevant cash-flows
5.3 Capital Budgeting Evaluation Techniques
5.4 Approaches and Techniques in Handling Risk: Sensitivity and Scenario Analysis
5.4 Capital Rationing
5.5 Risk and Managerial Options in Capital Budgeting

7. FINANCIAL STATEMENTS ANALYSIS

7.1 The Basic Financial Statements

7.2 Financial Ratios: Interpretation, Application and Limitations

TEXT BOOKS

1. Weston & Brigham, Essentials of Managerial Finance, The Dryden

Press.
2. James C.Van Horne, Financial Management & Policy, Prentice Hall.

REFERENCE BOOKS

1. Richard Breeley & Stewart Myers, Principles of Corporate Finance.

McGraw Hill.
2. Schall & Halley, Introduction to Financial Management. McGraw Hill.