Annexure ‘AAB-CD-01’

L T P/S SW/FW No. of TOTAL

PSDA CREDIT
UNITS
3 - - - 0 3

Course Title: Fundamentals of Financial Management Credit Units: 3 credit

Course Level: UG Course Code: FIBA201

Course Objectives:

• To provide students with an understanding of time value of money and its use in decision making
• To acquaint students with concepts and techniques of financial management and their applications to managerial decision-making to sustain and grow the
business.
• To help students in understanding various financial decisions such as investment decision, financing decision and liquidity decision etc.
• To help students in gaining the necessary interest and skills needed to make optimum decisions in complex local as well as global environment

Pre-requisites: Students should have knowledge of basics of Financial Accounting and MS-EXCEL software

Course Learning Outcomes:

The students will
• be able to understand time value of money and its use in individual and business decision making.
• Be able to identify the various sources of finance available to business and their usefulness in different business conditions and manage working capital
of business.
• be able to evaluate capital budgeting projects by understanding concepts and techniques of financial management and their applications to
managerial decision-making.
Course Contents/Syllabus:

Module I Introduction to Financial Management & Tools of Financial Decision Making Weightage (%)
Evolution of Financial Management, Key Activities of Finance Manager, Changing Role of Finance Manager, Key 20
Decision Areas in Financial Management, Objectives of Firm- Profit Maximization Vs. Wealth Maximization
Concept of Time value of Money, Process of Compounding and Discounting, Future Value of a Single Amount, Future
Value of an Annuity, Present Value of a Single Amount, Present Value of an Annuity, Concept of Sinking Fund,
(Usage of Financial Calculator : Texas BA Plus )
 Module II Analysis and Techniques of Capital Budgeting 20
Basics of Capital Budgeting, Types of Capital Budgeting Decisions, Preparation of Capital Budgeting Proposal,
Estimating Cash Flows for Project Appraisal, Non-Discounted Cash Flow Techniques: Payback Period, ARR
Discounted Cash Flow Techniques: NPV, IRR, Modified IRR, and PI, XIRR
Module III Sources of Finance, Cost of Capital and Leverage Analysis 20
Sources of Finance-Debt: Term Loans, Debentures, Equity: Ordinary Shares, Hybrid: Preference Shares. Convertible
Securities, ADRs and GDRs, An Overview of Sources of Short Term Finance: Trade credit, Working capital Advance
by Commercial Banks, Public deposits, Inter-Corporate Deposits, Short Term Loan from Financial
Institutions, Commercial Paper
Concept, Significance, and Factors Affecting Cost of Capital, Computation of Cost of capital of Various Sources:
Equity, Debt, Reserve & Surplus and Preference shares, Weighted Average Cost of Capital, Book Value Weights v/s
Market Value Weights
EBIT-EPS Analysis, Leverage Analysis: Operating Leverage, Financial Leverage and Combined Leverage
Module IV Working Capital Management 20
Factors Influencing Working Capital Requirement, Estimating Working Capital Requirement (Numerical), Operating
Cycle Analysis, Negative Working Capital, An Introduction to Inventory Management, Objectives of Inventory
Management, EOQ Model (with Numerical), Receivables Management, Management of Cash: Cash Planning, Managing
Cash Flows, Determining Optimum Cash Level (Baumol Model with Numerical),
Module V Recent Trends 20
Recent Trends in Financing of Companies, Use of MS Excel in Financial Decision Making: Area of Time value of
Money & Capital Budgeting

Pedagogy for Course Delivery:

The course will be explained by using four quadrant approach adopting a combination of lecture methods, class presentation students, quizzes, self-study
sessions via remote learning . Assignment and presentation will be given to build their own analysis ability. Case studies will be taken up to illustrate real life
situations.

Professional Skill Development Activities (PSDA): nil

Lab/ Practicals details, if applicable: NA

List of Experiments: NA

Assessment/ Examination Scheme: NA

Theory L/T (%) Lab/Practical/Studio (%) End Term Examination

 50 50

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term Examination

Components (Drop Mid Term Test Assignment Presentation Attendance/ Quiz

down)

Weightage (%) 20 15 10 5 50

Bloom’s Level > Remembering Understanding Applying Analysing Evaluating Creating

Course CLO1 CLO2 CLO3 CLO4 CLO5 CLO 6
Learning
Outcomes

Assessment
type/PSDA
Mid Term ✓ ✓ ✓ ✓ ✓
Test
Assignment ✓ ✓ ✓ ✓
Presentation ✓ ✓ ✓
Quiz ✓ ✓ ✓ ✓
End Term ✓ ✓ ✓ ✓
Examination
Assessment ✓ ✓ ✓ ✓ ✓
Component ‘n’

Text & References:

Text:
Pandey, I. M. (2016), Financial Management, Vikas Publishing House, New Delhi
Sharma S.K. (2017), Fundamentals of Financial Management, Sultan Chand, New Delhi
Rustagi R P. (2012), Principles of Financial Management, Taxmann,
Rajiv Srivastava, Anil Misra (2012), Financial Management, OUP India
References:
Brearly R.A. and Myers, S.C. (2016), Principles of Corporate Finance, Tata McGraw Hill, New Delhi
Chandra, P. (2017), Fundamentals of Financial Management, Tata McGraw Hill, New Delhi
Horne. V. (2015), Financial Management and Policy, Prentice Hall of India, New Delhi