Financial Management

Class of : 2023 Academic Year First Year

Course Code : SL FI 501 Semester : I
Credit : 3 Sessions : 33

AIM
To gain an understanding of basic functions of finance and its interface with other functional areas. To
familiarize students with finance markets and instruments, develop working knowledge of fundamental
tools and apply them in investment and financing decisions.

TEXT BOOK AUTHOR / PUBLICATION

Financial Management: Theory and Practice, Chandra Prasanna, Tata McGraw-Hill - 2004
Latest Edition
REFERENCE BOOKS AUTHOR / PUBLICATION
Financial Management Pandey I M, Vikas Publishing House Pvt Ltd
th
Financial Management and Policy, 12 e Van Horne, James C. Prentice Hall - 2001
th
Financial Management , 7 e Ravi M. Kishore. Taxmann's - 2009
Financial Management: Text & Problems Khan, M Y / Jain, P K. Tata McGraw-Hill
Financial Management Ross Westerfield
Financial Management Sheeba Kapil

Detailed Syllabus Capital Market - Derivatives Market -

International Capital Markets – Participants.
Introduction to Financial Management:
Objectives - Functions and Scope - Evolution - Primary Markets and Secondary Markets:
Interface of Financial Management with Other Procedural Aspects of Primary Issues - Pre-
Functional Areas - Environment of Corporate Issues Decision Making - SEBI Guidelines for
Finance. Public Issues – IPO -Pricing and Timing of
Public Issues - Pre-Issue Management –
Overview of Financial Markets: Financial
Regulatory aspects -Advertising and Marketing,
Markets - Functions and Classifications of
Post-Issue Management - Rights Issues, Scope,
Financial Markets – Introduction to Money
management of debt and equity, corporate
Market - Forex Market - Government Securities
advisory services, project advisory services, loan
Market- Primary & Secondary market for G.sec,
syndication, venture financing, private equity,
Call money market: Money Market, Treasury
M&A, financial engineering, structural analysis
Bill Market, Commercial Paper and Certificate of
of investment banking industry
Deposits, Discount and Finance House of India,
Corporate Debt market Recent Developments. -

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Sources and Raising of Long-Term Finance: Suzlon Energy: Financing Problem
Introduction to Equity Capital and Preference
Reliance Power” Full IPO
Capital - Debenture Capital - Initial Public
Offering, Public issue by listed companies, Cost of Equity: A CAPM Approach
Rights Issue, Preferential allotment, Private ABC Wealth advisors
placement, Term Loans, Venture Capital. Term
Loans and Deferred Credit - Government Ambuja Cement: WACC
Subsidies - Leasing and Hire - Purchase - Source CDC
Emerging sources of finance – (Private Equity,
FDI, FCCB). Suggested Schedule of Sessions

Raising finance from international markets – No. of

Topic
Intermediaries, euro-dollar market, Instrument- Sessions
ADR/GDR, FCCB, ECB-Regulatory aspects Introduction to Financial
1
Management
Introduction to Risk and Return: Risk and
Return Concepts - Risk in a Portfolio Context - Financial Markets 3
Relationship Between Risk and Return -CAPM
Sources of Long Term Finance 2
and Dividend Capitalization Model.
Raising Long Tem Finance 2
Time Value of Money: Introduction - Types of
Cash flows - Future Value of a Single Cash Flow, Cases on Long Term Finance 2
Multiple Flows and Annuity - Present Value of A Raising Finance from International 2
Single Cash Flow, Multiple Flows and Annuity, Markets
Growing Annuity, Perpetuity and Growing
Time Value of Money 6
Perpetuity.
Case on Time Value of Money 1
Valuation of Securities: Concept of Valuation -
Bond Valuation - Equity Valuation: Dividend Introduction to Risk and Return 3
Capitalization Approach and Ratio Approach.
Cases on Risk and Return 2
Cost of Capital: Concept and Importance - Cost
Valuation of Securities 2
of debenture - Term loans - Equity capital and
retained earnings - Calculation of Weighted Cases on Valuation of Securities 3
Average Cost of Capital - Weighted Marginal Cost of Capital 1
Cost of Capital Schedule.
Cases on Cost of Capital 2
Cases and Exercises Recent Developments 1
Unilever limited: Transforming the finance Total 33
function
Indian Financial System: A young
entrepreneur’s dilemma

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