Financial Management

Financial Management Book is primarily intended to meet the needs of B Com Semester VI of Kumaun University (KUNTL)

Management education in our country has recently experienced a sea-change in its curriculum, wherein electives in finance and marketing have been enlarged In fact, finance has assumed greater significance for all those pursuing a Commerce course or it’s allied It is now a well-established fact that the success of any business concern depends inter-alia upon the efficiency with which funds are being managed That is why there is a separate paper/subject of Financial Management almost in every curriculum of B Com As a teacher of Accounting and Finance, I have gathered from the students interaction that there is a need for a text which must provide a comprehensive understanding of principles, problems, techniques of financial management, ie, of financing, investment and dividend decisions It is this need which prompted me to write a text in a very simple style in a native context The result is before the readers Some pedagogical features of the book are :

• A comprehensive presentation of the concepts and relevant theories;
• Illustrative problems for a better understanding of the principles and techniques;
• Use of charts and figures to bring more clarity;
• Exercises and problems to help the students in better learning and understanding

Financial Management Book Syllabus

Unit I : Financial Management: Meaning, Nature and Scope of Finance, Financial Goal–Profit vs. Wealth Maximization, Finance Function– Investment, Financing and Dividend Decision.

Unit II : Management of Working Capital: Meaning, Significance and Types of Working capital, Estimation of Working Capital Requirements. Sources of Working Capital, Dimensions of Working Capital Management.

Unit III : Leverages: Kinds of leverages–Financial, Operating and Combined.

Unit IV : Capital Budgeting: Nature of Investment, Decisions, Investment Evaluation Criteria–Net Present Value Internal Rate of Return,
Profitability Index, Pay-Back-Period, Accounting Rate of Return, NPV and IRR Comparison.

Unit V : Cash Flow Statement, Fund Flow Analysis: Concept, Schedule of changes in working Capital, Statement of Sources & Application of Funds

Financial Management Book Contents

1. Financial Management
2. Financial Planning
3. Operating and Financial Leverage
4. Analysing Alternate Financial Plans
5. Capital Structure—Theories and Determinants
6. Dividend Policy
7. Management of Working Capital
8. Management of Cash
9. Management of Receivables
10. Inventory Management
11. Financial Statements: Meaning, Types and Limitations
12. Analysis of Financial Statements: Objectives and Methods  
13. Ratio Analysis
14. Funds Flow Statement
15. Cash Flow Statements (As Per Accounting Standard-3)
16. Capital Budgeting

• Multiple Type Questions Bank