IBS Hyderabad (Academic Year – 2017-18)

Course Handout
Program : BBA
Course Code : SHFI441

Course Title : Financial Management - II Semester: IV

Faculty Name : Dr. Naseem Ahamed Room No: F-004
Consultation Hours (Day/time): 4:30pm (Wednesday)
Mobile No: 8247619024 Email: naseemahamed@ibsindia.org

Course Description:
The important tools and techniques beneficial to enhance the corporate decision-making skills for a student
are imparted. Topics include - capital structure policies and decision; dividend policy and decision;
inventory management; receivables management; cash management; financing current assets; financial
statement analysis and financial forecasting.

Course Objectives
At the end of the course, students are expected to:
• Apply various tools and techniques in the financial decision making activities.
• Interpret the concepts related to capital structure, dividend policy, inventories, receivables and cash
management.
• Analyze the capital structure policies and decision, dividend policy and decision, inventory
management, receivables management and cash management.
• Asses the firm’s financial performance using various tools and techniques like ratio analysis,
common size analysis, comparative statements analysis and trend analysis.

Learning Outcomes
1. Demonstrate analytical skills financial decision-making process.
2. Evaluate the financial performance of a firm using various tools.
3. Identify and implement strategies for maximizing shareholders’ wealth in a firm.
4. Enhance the required skills for sourcing of finance for a project.

Recommended Text Book:

 Basic Financial Management – M Y Khan and P K Jain, 3rdEdition, 2017, McGraw Hill Education
(India) Private Limited
Suggested reference books:
 Essentials of Financial Management – I M Pandey, 4th Edition, 2015, Vikas Publishing House
 IBS Hyderabad (Academic Year – 2017-18)

Sessio Case /Reading article/

Topic Learning Outcomes Chapters
n No. Lecture / Activity
01 Course Overview and briefing
 Identify the factors affecting the
capital structure decision
Capital  Appreciate the relationship between https://www.youtube.co Chapter
02-05 Structure capital structure and firm’s value m/watch? 14.11-
Policy through EBIT-EPS analysis. v=jG0pd7bFMbM 14.20
 Analyze the EBIT-EPS relationship
under different financing plans
 Appreciate the prominence of Khan and
Dividend dividend policy and its impact on firm https://www.youtube.co Jain
05-11 Theory and value. m/watch? Chapter
Policy  Understand the logic of dividend v=X1tPNcrABtE 18.10-
irrelevance. 18.38
Khan and
 Comprehend the concepts of working
Working https://www.youtube.co Jain
capital and operating cycle.
12-17 Capital m/watch? Chapter
 Recognize the factors affecting
Management v=bHK77lbdyWA 9.10 -
working capital. 9.54
Sessions 1 to 17
18 TEST-1
Chapters covered –9,14&18
 Appreciate the requirement and nature
of inventory.
https://www.youtube.co Chapter
Inventory  Analyze inventory related issues for
19-24 m/watch? 13.10-
Management investment decision making .
v=qkZQxXJuqKo 13.12
 Assess the significance of carrying,
ordering and stock-out costs.

Mid Semester Sessions 1 to 17

25
Examination Chapters covered – 9,13,14&18

 Understand the terms of payments

widely used in practice.
https://www.youtube.co Chapter
Receivables  Realize the need and goals of
26-28 m/watch? 12.10-
Management establishing a sound credit policy.
v=v3nGR40D3Wk 12.30
 Understand various methods of
monitoring receivables.
 Identify the motives and needs for
holding cash.
https://www.youtube.co Chapter
Cash  Understand the techniques for
29-31 m/watch? 11.10-
Management preparing cash budget.
v=1SuHHul13nY 11.60
 Enumerate the factors that determine
the required cash balances.
 Assess the benefits and costs of trade
Financing credit. Chapter
32-34 Current  Understand the norms used by banks Lecture 10.10-
Assets in financing a firm's working capital 10.12
needs.
 IBS Hyderabad (Academic Year – 2017-18)
Sessions 26 to 34
35 TEST-2
Chapters covered -
 Comprehend and assess the firms’
Financial financial performance using various https://www.youtube.co
Chapter
36-46 Statement tools and techniques. m/watch?
4.10-4.60
Analysis  Preparation and analysis of common- v=55af7cmyczo
size balance sheets
Contemporary
issues on
Course
international
 Contemporary issues/ latest ware will
47-48 Financial Lecture
developments in finance be
management
provided
And Ethical
issues

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers will not
be permitted to join the class after the scheduled time. If late, the attendance for that session will be
marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the
chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual and
group learning. Evaluation is based on active participation.

Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn.
Students are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Component Expected slot / Marks Weightage

Number due date declaration by
rd
Class Participation 1 23 session 10
Test I 2 18th session 20th session 15
Mid term Exam 3 25th Session 28th session 20
th
Test II 4 35 session 37th session 15
End exam At the end of 40
the semester
Total 100

Electronic and Web resources: Swayam Videos, Syndicated Databases