UNIT I
Financial Accounting - Definition - Accounting Principles - Concepts and conventions - Trial Balance – Final Accounts (Problems) - Depreciation Methods-Straight line method, Written down value method.
UNIT II
Financial Statement Analysis - Objectives - Techniques of Financial Statement Analysis: Accounting Ratios: construction of balance sheet using ratios (problems)-Dupont analysis. Fund Flow Statement - Statement of Changes in Working Capital - Preparation of Fund Flow Statement - Cash Flow Statement Analysis- Distinction between Fund Flow and Cash Flow Statement. Problems
UNIT III
Cost Accounting - Meaning - Distinction between Financial Accounting and Cost Accounting – Cost Terminology: Cost, Cost Centre, Cost Unit - Elements of Cost - Cost Sheet - Problems. Budget, Budgeting, and Budgeting Control - Types of Budgets - Preparation of Flexible and fixed Budgets, master budget and Cash Budget - Problems -Zero Base Budgeting. Marginal Costing - Definition - distinction between marginal costing and absorption costing – Break even point Analysis - Contribution, p/v Ratio, margin of safety - Decision making under marginal costing system-key factor analysis, make or buy decisions, export decision, sales mix decisionProblems
UNIT IV
Objectives and functions of Financial Management - Role of Financial Management in the organisation
- Risk-Return relationship- Time value of money concepts - Indian Financial system - Legal, Regulatory and tax framework. Sources of Long term finance - Features of Capital market development in India - Role of SEBI in Capital Issues.
Capital Budgeting - methods of appraisal - Conflict in criteria for evaluation - Capital Rationing - Problems - Risk analysis in Capital Budgeting.
UNIT V
Cost of Capital - Computation for each source of finance and weighted average cost of capital –EBIT -EPS Analysis - Operating Leverage - Financial Leverage - problems.
Capital Structure Theories - Dividend Policies - Types of Divided Policy.
Working Capital Management - Definition and Objectives - Working Capital Policies - Factors affecting Working Capital requirements - Forecasting Working Capital requirements (problems) – Cash Management - Receivables Management and - Inventory Management - Working Capital Financing - Sources of Working Capital and Implications of various Committee Reports.