Financial Management - Class 11 PDF Download

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3.4 FINANCIAL MANAGEMENT 
 
OBJECTIVE 
The objective is to enable students to understand the basic concepts of Financial Management and the 
role of Financial Management in decision-making.  
 
Unit 1: INTRODUCTION FINANCIAL MANAGEMENT    10 Hrs 
Introduction – Meaning of Finance – Business Finance – Finance Function – Aims of Finance 
Function – Organization structure of Finance Department - Financial Management – Goals of 
Financial Management – Financial Decisions – Role of a Financial Manager – Financial Planning – 
Steps in Financial Planning – Principles of Sound Financial Planning – Factors influencing a sound 
financial plan.  
 
Unit 2: TIME VALUE OF MONEY       12 Hrs 
Introduction – Meaning& Definition – Need – Future Value (Single Flow – Uneven Flow & Annuity) 
– Present Value (Single Flow – Uneven Flow & Annuity)– Doubling Period – Concept of Valuation:  
Valuation of Bonds, Debentures and shares - Simple Problems. 
   
Unit 3: FINANCING DECISION       12 Hrs 
Introduction – Meaning of Capital Structure – Factors influencing Capital Structure – Optimum 
Capital Structure – Computation & Analysis of EBIT, EBT, EPS – Leverages.  Simple Problems. 
 
Unit 4: INVESTMENT & DIVIDEND DECISION     16 Hrs 
Investment Decision: Introduction – Meaning and Definition of Capital Budgeting – Features – 
Significance – Process – Techniques: Payback Period, Accounting Rate of Return, Net Present Value, 
Internal Rate of Return and profitability index Simple Problems. Dividend Decision: Introduction – 
Meaning and Definition – Determinants of Dividend Policy – Types of Dividends – Bonus share 
 
Unit 5: WORKING CAPITAL MANAGEMENT     06 Hrs 
Introduction – Concept of Working Capital – Significance of Adequate Working Capital – Evils of 
Excess or Inadequate Working Capital – Determinants of Working Capital – Sources of Working 
Capital. 
 
SKILL DEVELOPMENT 
? Draw the organization chart of Finance Function of a company. 
? Evaluate the NPV of an investment made in any one of the capital projects with imaginary figures 
for 5 years. 
? Capital structure analysis of companies in different industries 
? Imaginary figures prepare an estimate of working capital requirements 
 
BOOKS FOR REFERENCE  
1. S N Maheshwari, Financial Management, Sultan Chand 
2. Dr. Aswathanarayana.T – Financial Management, VBH 
3. K. Venkataramana, Financial Management, SHBP. 
4. G. Sudarshan Reddy, Financial Management, HPH 
5. Roy – Financial Management, HPH 
6. Khan and Jain, Financial Management, TMH 
7. S. Bhat- Financial Management. 
8. Sharma and Sashi Gupta, Financial Management, Kalyani Publication. 
9. I M Pandey, Financial Management. Vikas Publication.  
10. Prasanna Chandra, Financial Management, TMH 
11. P.K Simha – Financial Management. 
12. M. Gangadhar Rao & Others , Financial management 
13. Dr. Alice Mani: Financial Management, SBH.