Syllabus
1. Introduction to Financial Management
♦ Definition, Nature and Functions of Financial Management
♦ Objectives of Financial Management
♦ Importance of Financial Management and Limitations
♦ Preparation of Financial Statements adhering to Current Statutory Requirements
2. Study of Financial Statements
♦ Objectives of Financial Statement Analysis and Interpretation
♦ Steps involved in the Analysis of Financial Statements
♦ Comparative Statements
♦ Common Size Statements
♦ Trend Analysis
3. Ratio Analysis
♦ Ratio Analysis – Meaning and Objectives and Classification of Ratios – Traditional Classification, Functional Classification and Classification from the point of view of Users
♦ Balance Sheet Ratios – Current Ratio, Liquid Ratio, Proprietary Ratio, Stock-Working Capital Ratio, Capital Gearning Ratio, Debt Equity Ratio
♦ Revenue Statement Ratios – Gross Profit Ratio, Operating Ratio, Expense Ratios, Net Profit Ratio, Stock Turnover Ratio
♦ 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
♦ Importance and Limitations of Accounting Ratios
4. Sources of Finance and Cash Flow Analysis
♦ Classification of Sources of Finance with reference to period, ownership and source of generation
♦ Internal and External Financing including choice of financial instruments
♦ Cash Flow Statement – Meaning and Classification
♦ Uses of Cash Flow Statement
♦ Preparation of Cash Flow Statement – Direct and Indirect
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