Introduction to Financial Management: Objectives of Financial Management, Functions of Financial
Management; Financial Instruments: Equity Shares, Preference Shares, Right Issues; Debts: Debentures, Types
of Debentures; Indian Financial System: Functions of Financial Market, Classification of Financial Markets,
Efficiency of Financial System, Skeleton of the Financial System; Time Value of Money; Valuation of Bonds
Comparative Statement: Importance of Financial Statement, Limitations, Constructing Comparative Statement;
Common Size Statement: Advantages of Common Size Statement, Limitations of Common Size Statement,
Constructing Common Size Statement; Trend Analysis: Advantages of Trend Percentages Analysis, Limitations
of Trend Percentages Analysis, Method of Preparation of Trend Percentages, Precautions; Ratio Analysis:
Importance, Limitations and Classification of Ratios.
Fund Flow Statement: Objectives of Funds Flow Statement, Limitations, Preparation of Funds Flow Statement;
Cash Flow Statement: Direct and Indirect Methods of Cash Flow.
Fixed Capital Analysis
Capital Budgeting: Features of Capital Budgeting, Importance of Capital Budgeting; Evaluations Techniques of
Projects: Traditional Techniques: Pay Back Period, ARR,Time Adjusted Techniques: NPV, IRR, PI; Risk and
Uncertainty in Capital Budgeting.
Capital Structure and Dividend Policy
Leverage Analysis: Operating Leverage, Financial Leverage, Combined Leverage; Capital Structure: Factors
Determining the Capital structure, Theories of Capital Structure; Cost of Capital: Significance of Cost of
Capital, Computation of Cost of Capital, EPS, EBIT Analysis; Dividend Policy: Dividend decision and
valuation of Firm, Determinants of Dividend Policy, Types of Dividends, Forms of Dividend, Bonus Issue.
Working Capital Analysis
Working Capital: Operating Cycle/Working Capital Cycle, Factors Effecting Working Capital, Importance of
Adequate Working Capital, Financing of Working Capital, Determining Working Capital Financing Mix,
Working Capital Analysis, Estimation of Working Capital Requirements; Receivables Management: Costs of
Maintaining Receivables, Meaning and Definition of Receivables Management , Dimensions of Receivables
Inventory Management: Meaning of Inventory, Purpose of Holding Inventory, Inventory Management,
Objectives of Inventory Management; Inventory Management Techniques.
Cash Management Analysis
Cash Management: Motives for Holding Cash, Cash Management, Managing Cash Flows; Cash Management
Foreign Exchange Orientation
International Finance: Exchange Rate, Arbitrage Process as a Means of Attaining Equilibrium On Spot Markets,
Arbitrage in Forward Market; Managing of Foreign Exchange Risk: Foreign Exchange Risk Management, Management of Economic exposure, Management of Operating Exposure; Raising Foreign Currency Finance.