Trimester Course Code Credits Hours Course Name

II PG 208 3 30 Finance for Managers

Scheme of Assessment
Continuous and Concurrent End Trimester
Total Marks
Evaluation (CCE) Evaluation
Attendance 10 marks
Assignment 1 10 marks
Assignment 2 10 marks 50 marks 100 marks
Assignment 3 20 marks
Total CCE 50 marks

Course Objectives:
The course aims to equip PGDM students with essential financial management skills, including budgeting,
financial analysis, and decision-making. Understand financial statements, investment strategies, and risk
management to enhance managerial effectiveness and drive organizational success. Develop the ability to
interpret financial data for informed business decisions.

Course Outcomes:
After completing this course, students will be able to:

Identify and describe fundamental financial concepts, such as financial statements, time value
1
of money, risk and return, and capital budgeting.

Demonstrate an understanding of financial statements by interpreting balance sheets, income

2
statements, and cash flow statements to assess a company's financial health.

Apply financial principles to real-world business scenarios, such as budgeting, forecasting, and
3
financial planning, to make informed managerial decisions.

Analyse financial data and performance metrics to evaluate the financial viability and
4
profitability of projects and business ventures, identifying potential risks and opportunities.

Evaluate investment opportunities and funding options by assessing financial strategies,

5
comparing alternative solutions, and making recommendations for optimal financial decisions.

Knowledge:
• Financial Statements and Reporting: Understanding the fundamentals of balance sheets, income
statements, and cash flow statements. This includes knowing how to interpret these documents to assess
the financial health of a business.
• Budgeting and Forecasting: Knowledge of budgeting processes and techniques for creating accurate
financial forecasts. This includes understanding how to use historical data and market trends to predict
future financial performance.
Skills:
• Financial Analysis and Interpretation: The ability to Analyse financial statements and other financial data
to make informed business decisions. This includes proficiency in ratio analysis, trend analysis, and
variance analysis.
 • Risk Management: Skill in identifying financial risks and implementing strategies to mitigate them. This
includes understanding credit risk, market risk, and operational risk, as well as using financial instruments
and hedging strategies to manage these risks.
Attitude:
• Ethical Responsibility: A commitment to ethical practices in financial management, including
transparency, accountability, and integrity. This involves a strong sense of duty to uphold ethical
standards and to avoid financial misconduct.
• Continuous Improvement: A proactive attitude towards continuous learning and improvement in financial
knowledge and skills. This includes staying updated with the latest financial regulations, market trends,
and best practices in financial management.

Topics to be covered:
Unit Session
Contents Chapter Outcome
No. (in Hours)
Introduction to Financial Management
• Understanding the scope androle
• Elements of Financial decisions in a firm, of Financial Market
Purpose of financial management.
• Understanding and measurement
• Agency problem. Profit maximization and of returns with its relationship
1 wealth maximization objective, Shareholders 6
with risk.
Wealth, and Value of organization,
• Practical knowledge of Capital
• Role of Finance manager, Treasurer & Market with different types of
Controller, Case studies on financing, investment alternatives
investment, and dividend decisions.

Time Value of Money

• Introduction to time value of money, future
and present value of a single sum, future and
present value of an annuity, present value of • Understand the P.V.& F.V of
a perpetuity, lump sum money, thereafter
annuities.
• Application of Time value in financial
2 • Knowledge about the 6
decisions, Intra-year compounding and significance of Perpetuity.
discounting, deferred Annuity, growing
annuity, perpetuity, growing perpetuity. • Learn about the power of
compounding.
• Simple Problems.
• Application problems using Microsoft
Excel*.

Long Term Investment Decisions:

• Capital Budgeting – Significance and process
– Techniques of evaluating projects-
Traditional and modern methods, Payback • Understanding of Investment
period and discounted payback period, appraisals with traditional &
3 6
• Accounting rate of return. Net present value, contemporary techniques. Usage
Internal rate of return, of excel program.
• Profitability Index. Qualitative
considerations*.
• Application problems using Microsoft Excel.
 Financing Decisions
• Components of Capital Structure – Equity,
preferences, Debentures.
• Capital Structure-Theories of Capital
• The learner can understand
structure*,
implications of financing
• Cost of capital, Specific cost of capital-Cost decisions on capital structure.
4 6
of equity, Debt and preference shares, Calculation of Cost of Capital &
Weighted average cost of capital. WACC
• Leverages-Operating, Financial and
Combined leverage.
• Problems on Specific costs of capital, WACC
and Leverages

Working Capital Management and dividend

decisions
• Overview of working capital management,
factors influencing working capital • Learner can understand about the
determinants of Working Capital
management, Working capital estimation,
Management across different
operating cycle, and cash cycle. sectors.
5 • Emerging trends in working capital 6
• Basic calculation of working
management across industries. *
capital. Dividend theory.
• Dividend decisions, Factors influencing
dividend decisions, types of dividends. • Significance of Dividend in
Dividend Model for valuation of shares (Only Corporate Finance
theory)
• (*These topics are categorized as ‘Self-
learning’ topics and are subjected to testing)

Total 30

Textbooks:
• Chandra, P. (2020). Fundamentals of financial management | (7th ed.). McGraw-Hill Education.
• Damodaran. (2007). Corporate finance theory and practice, 2nd ed. John Wiley & Sons.
• I.M., P. (2015). Financial management (11th ed.). Vikas Publishing House.
• Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of corporate finance.
• Chandra, P. (2019). Financial management: Theory and practice, 10e. McGraw-Hill Education
• Khan, M. Y., & Jain, P. K. (2018). Financial management: Text, problems and cases, 8e. McGraw-Hill
Education.
• Kishore, R. M. (2009). Financial management - Problems & solutions 2Nd/ ed.
• Pandey, I. M., & Bhatt, R. (2020). A casebook in financial management | (4th ed.). McGraw-Hill
Education.

Web Resources:
• Capital structure: Meaning, concept, importance and factors | Accounting. (2015, October 26). Your
Article Library.
https://www.yourarticlelibrary.com/financial-management/capital-structure/capital-structure-meaning-
concept-importance-and-factors-accounting/65150
 • Capital structure: Meaning, concept, importance and factors | Accounting. (2015, October
26). YourArticle Library.
https://www.yourarticlelibrary.com/financial-management/capital-structure/capital-
structure-meaning-concept-importance-and-factors-accounting/65150
• Capital structure: Meaning, factors, types, importance. (2020, March 30).
BYJUS.https://byjus.com/commerce/capital-structure/
• Corporate Finance Institute. (2020, March 25). Cost of
capital.https://corporatefinanceinstitute.com/resources/knowledge/finance/cost-of-capital/
• Corporate finance. (n.d.). Investopedia.
https://www.investopedia.com/corporate-
finance-4689819
• Dividend policy. (2016, June 13).
Business Jargons.
https://businessjargons.com/dividend-
policy.html
• Dividend policy. (2020, March 7). The
Investors Book.
https://theinvestorsbook.com/dividend-
policy.html
• Financial intelligence test. (2020, June 11). Finance training balance sheet income & cash
flowstatements.
https://www.business-literacy.com/bli-products-services/financial-intelligence-assessments/
• Financial management quiz: Objectives and functions! (2020, December 16). Pro Profs.
https://www.proprofs.com/quiz-school/story.php?title=introduction-to-financial-management
• Time value of money – An overview for MBA students in corporate finance 1o1. (n.d.).
Live OnlinePrivate Tutoring for MBAs, CPAs & CFAs: Graduate Tutor.
https://www.graduatetutor.com/corporate-finance-tutoring/time-value- of-money
• Working capital management | Meaning, goals, strategies, policies, etc. (2018, November
17).eFinanceManagement.com.
https://efinancemanagement.com/working-capital-financing/working-capital- management
• Kumar Rajesh and Suhaas, KM (2008) Valuation of Indian companies- An analytical
perspective. AsiaPacific Business Review
• Higgins Robert (2007) Analysis for Financial Management, McGraw-Hill

Online Courses:
• https://www.udemy.com/course/asset-mgt/?couponCode=THANKSLEARNER24 /
• https://www.coursera.org/learn/operational-finance