Financial Management-I

Paper Code: 
MBA- 225
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • To understand the role and importance of key financial aspects and to place them in a real world context facilitating practical insights.
6.00
Unit I: 
Introduction

Meaning of Financial Management, Functions and Objectives of Financial Management – Profit Maximization and Wealth Maximization, Changing Role of Finance Managers.

9.00
Unit II: 
Time Value of Money

Rationale and Techniques, Future Value of Single Cash Flow & Annuity, Present Value of Single Cash Flow, Risk and Return- Risk & Return of Single Asset, Risk & Return of a Portfolio, beta measurement by correlation method.

9.00
Unit III: 
Working Capital Management

Nature of Working Capital, Trade- Off Between Profitability and Risk, Need for Working Capital, Determinants of Working Capital, Computation of Working Capital – operating cycle method and net assets method.

11.00
Unit IV: 
Management of Cash

Motives for Holding Cash, Objectives of Cash Management, Factors Determining Cash Needs, Cash Management: Basic Strategies, Cash Management Techniques/ Processes, Marketable Securities.

Receivables Management

Introduction, Objectives, Credit Policies, Collection Policies- Liberal and Strict.

5.00
Unit V: 
Inventory Management

Objectives, Costs of Holding Inventory, Benefits of Holding Inventory, Techniques; ABC System, EOQ Model, Order Point Problem

Essential Readings: 
  • Prasanna Chandra , Financial Management, Tata McGraw Hill, 2007
  • M.Y. Khan and P.K.Jain, Financial Management, Tata McGraw Hill, 2007
  • Paul D. Kimmel, J.Jerry , Weygandt, E.Donald, Kieso ,Financial Accounting : Tools for Business Decision Making ,Wiley Publication, 2008
References: 
  1. Brealey & Myers, Principles of Corporate Finance, Tata McGraw-Hill Publication, 7th Edition, 2008
  2. I M Pandey , Financial Management, Vikas Publishing House, 2008
  3. Fundamentals of Financial Management,
  4. Block, Foundations of Financial Management, Tata McGraw Hill,13th Edition
  5. Case Studies in Finance, Tata McGraw Hill,5th Edition
  6. Dr. P. Periasamy, Financial Management: Principles and Practices, Tata McGraw Hill, 2008
  7. V.K. Bhalla, Contemporary Issues in Finance, MacMillian, 2008