Financial Management TYBAF Semester V Manan Prakashan

Syllabus
1. Introduction to Financial Managementl Definition, Nature and Functions of Financial Managementl Objectives of Financial Management

l Importance of Financial Management and Limitations

l Preparation of Financial Statements adhering to Current Statutory Requirements

2. Study of Financial Statements

l Objectives of Financial Statement Analysis and Interpretation

l Steps involved in the Analysis of Financial Statements

l Comparative Statements

l Common Size Statements

l Trend Analysis

3. Ratio Analysis

l Ratio Analysis – Meaning and Objectives and Classification of Ratios – Traditional Classification, Functional Classification and Classification from the point of view of Users

l Balance Sheet Ratios – Current Ratio, Liquid Ratio, Proprietary Ratio, Stock-Working Capital Ratio, Capital Gearning Ratio, Debt Equity Ratio

l Revenue Statement Ratios – Gross Profit Ratio, Operating Ratio, Expense Ratios, Net Profit Ratio, Stock Turnover Ratio

l Combined Ratios – Return on Capital Employed, Return on Proprietor’s Funds, Return on Equity Share Capital, Debtors’ Turnover Ratio (Debtors’ Velocity), Earning Per Share, Dividend Payout Ratio, Price Earning Ratio

l Importance and Limitations of Accounting Ratios

4. Sources of Finance and Cash Flow Analysis

l Classification of Sources of Finance with reference to period, ownership and source of generation

l Internal and External Financing including choice of financial instruments

l Cash Flow Statement – Meaning and Classification

l Uses of Cash Flow Statement

l Preparation of Cash Flow Statement – Direct and Indirect