Fundamentals of Financial Management

Paper Code: 
MBA- 225
Credits: 
4
Contact Hours: 
60.00
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.

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- Cash Budget.

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.  Software: ABC Inventory software.

Essential Readings: 
  • Richard A Brealey, Stewart C Myers, Franklin Allen, Pitabas Mohanty,  Principles of Corporate Finance, Tata McGraw-Hill Publication, 10th Edition, 2012
  • I M Pandey , Financial Management, Vikas Publishing House, 10th Edition, 2010
  • Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen, Foundations of Financial Management, Tata McGraw Hill,13th Edition, 2011
  • Robert F. Bruner, Case Studies in Finance, Tata McGraw Hill,5th Edition, 2008
  • Dr. R.P.Rustagi, Fundamentals of Financial Management, Taxmann’s,9th Edition,
  • V.K. Bhalla, Contemporary Issues in Finance, MacMillian, 2008
References: 
  • M.Y. Khan and P.K.Jain, Financial Management, Tata McGraw Hill, 2014.
  • Prasanna Chandra , Financial Management, Tata McGraw Hill, 2011.
  • Paul D. Kimmel, J.Jerry , Weygandt, E.Donald, Kieso ,Financial Accounting : Tools for Business Decision Making ,Wiley Publication, 2011.
Academic Year: 
2018-2019
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