JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Course Objectives

The objectives of this course are

• 1. To understand the basic concepts of financial management.
• 2. To know various techniques of financial analysis and performance evaluation.
• 3. Able to take financing decisions.
• 4. Implementation of ABC analysis and EOQ analysis.
• 5. To understand various limitations of budgetary control

Course Outcomes

After completion of the course the student will be able to

• 1. Understand and explain various methods of financial management.
• 2. Analyse risk management and evaluation.
• 3. Implement planning and estimation of working capital.
• 4. Utilize various tools like ABC and EOQ
• 5. Acquire knowledge in profit planning and control.

UNIT - I

Nature and scope of Financial Management – Introduction of Finance as a function – scope -Tradition and modern methods – objectives of Financial Management – Basic concepts of time value of money, cash flow, risk, return – preparations of income statement and balance sheet.

UNIT - II

Techniques of financial analysis and performance evaluation – statement of changes in financial position – presentation of cash flow statement- financial performance analysis through ratio analysis. Long term investment decision – capital budgeting purpose and evaluation techniques – Analysis of risk and uncertainty – measurement and evaluation of risk.

UNIT - III

Financing decisions – operating and financial leverages – combined leverage- capital structure decision – Net income and net operating income approaches – Designing capital structure – Profitability and liquidity aspects and control. Working capital management – planning of working capital – determinants of working capital – estimation of current assets and current liabilities.

UNIT - IV

Sources of working capital – Trade credit and bank credit RBI frame work for regulation of bank credit – information and reporting system – objectives of cash management – determination of cash needs – cash management. Receivables Management – objectives – credit policies and terms – collection policies – inventory management and its objectives – Quantitative techniques like ABC analysis and EOQ analysis.

UNIT - V

Profit planning and control – Breakeven analysis and its application – budgets and budgetary control as a management tool – installation of budgetary system – Limitations of Budgetary control – Classification of budgets – preparation of master budget.

REFERENCE BOOKS:

• 1. Financial Analysis - MC Menamin (Oxford)
• 2. Management Accounting and Financial Control - SN Maheswari (Sultan Chand and sons).
• 3. Financial Management - I.M. Pandey (Vikas) M. TECH. II Year I Sem. (IEM)