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Essentials of Financial Management

By Dr. Abhijeet Biswas, Dr. Shashi Srivastava   |   Banaras Hindu University
Learners enrolled: 27
ABOUT THE COURSE:
The present course aims to familiarize the learners with the basic principles and techniques of financial management. It would aid in understanding the essence of financial management and what roles and functions a finance manager performs in an organization. The course would help in examining the objectives of shareholder wealth maximization which encompasses much of modern corporate finance and its implication for rational decision making

INTENDED AUDIENCE: Students of M.BA. / M.Com / B.Com / B.B.A. / M.A. Economics / Chartered Accountant / Company Secretary / ICWA / Working Professionals in the Area of Finance

PREREQUISITES: Any student pursuing graduation or above can opt for this course.

INDUSTRY SUPPORT: It is a core course of an M.B.A. and M.Com program, so all companies/industries would value this course.
Summary
Course Status : Upcoming
Course Type : Core
Language for course content : English
Duration : 8 weeks
Category :
  • Commerce
  • Management Studies
  • Economics & Social Sciences
Credit Points : 2
Level : Undergraduate/Postgraduate
Start Date : 18 Aug 2025
End Date : 10 Oct 2025
Enrollment Ends : 18 Aug 2025
Exam Registration Ends : 29 Aug 2025
Exam Date : 24 Oct 2025 IST
NCrF Level   : 6.5

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.


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Course layout

Week 1:  Concept of Finance:
Module 1: Meaning of Business Finance, Finance Function, Traditional View and Modern View of Finance
Module 2: Scope of Finance Function, Objectives of Financial Management, Profit Maximization and Wealth Maximization
Module 3: Financial Decisions, Investment Decision, Financing Decision, Dividend Decision, Factors Influencing Financial Decisions and Risk-return Trade-Off
Module 4: Role of a Finance Manager, Financial Engineering, Financial Planning, Characteristics of a Sound Financial Plan and Limitations of Financial Planning
Module 5: Different Forms of Business Organizations and Financial Considerations Underlying the Choice of Form of Business Organization

Week 2: Capitalization:
Module 6:
Capital and Capitalization, Fair Capitalization, Under Capitalization, Over Capitalization, Causes and Effects of Over Capitalization and Under Capitalization
Module 7: Practical Questions on Fair Capitalization, Under Capitalization and Over Capitalization
Module 8: Capital Structure vs Financial Structure, Importance of Capital Structure, Patterns of Capital Structure and Essential Features of a Sound Capital Mix
Module 9: Determinants of Capital Structure
Module 10: Principles of Capital Structure, Optimal Capital Structure and Risk-Return Trade-Off and Changes in Capitalization or Capital Structure

Week 3: Theories of Capital Structure:
Module 11:
Net Income Approach and Practical Questions
Module 12: Net Operating Income Approach and Practical Questions
Module 13: Intermediate Approach and Practical Questions
Module 14: Modigliani & Miller (MM) Approach and Practical Questions
Module 15: Concept of Arbitrage and Pecking Order Theory

Week 4: Leverages:
Module 16:
Concept of Leverage, Financial Leverage or Trading on Equity and Impact of Financial Leverage
Module 17: Degree of Financial Leverage, Significance of Financial Leverage and Limitations of Financial Leverage
Module 18: Practical Questions on Financial Leverage
Module 19: Operating Leverage, Combined Leverage and Practical Questions
Module 20: Break-Even Level of EBIT and Practical Questions

Week 5: Sources of Finance:
Module 21:
Short-Term, Medium-Term and Long-Term Sources of Finance, Ownership Securities, Equity Shares, Features, Advantages and Limitations of Equity Shares
Module 22: Preference Shares, Types of Preference Shares, Features, Advantages and Limitations of Preference Shares
Module 23: Creditorship Securities, Debentures and Bonds, Types of Debentures, Features, Advantages and Limitations of Debentures, Shares vs Debentures
Module 24: Short-Term Loans and Credits, Indigenous Bankers, Trade Credit, Instalment Credit, Advances and Deferred Incomes
Module 25: Factoring, Commercial Paper, Public Deposits, Commercial Banks, Certificate of Deposits, Treasury Bills, Term Loans, Venture Capital, Seed Capital, Bridge Finance and Lease Financing

Week 6: Capital Budgeting:
Module 26: Time Value of Money, Concept and Significance of Cost of Capital, Weighted Average Cost of Capital (WACC), Need and Importance of Capital Budgeting
Module 27: Capital Budgeting Process, Classification of Projects under Capital Budgeting and Kinds of Capital Budgeting Decisions
Module 28: Appraisal Techniques for Risk-Free Projects, Net Present Value (NPV) Method, Advantages and Limitations of NPV and Practical Questions
Module 29: Internal Rate of Return (IRR) Method, Advantages and Limitations of IRR and Practical Questions on IRR, Profitability Index (PI) Method, Advantages and Limitations of PI and Practical Questions on PI
Module 30: Payback Period (PB) Method, Discounted Payback Period (DPB) Method, Accounting Rate of Return (ARR) Method

Week 7: Working Capital Management:
Module 31: Concept of Working Capital, Constituents of Current Assets, Constituents of Current Liabilities, Gross Working Capital and Net Working Capital and Classification of Working Capital
Module 32: Significance of Adequate Working Capital, Excess or Inadequate Working Capital, Factors Determining the Working Capital Requirements and Principles of Working Capital Management Policy
Module 33: Management of Cash, Motives for Holding Cash, Managing Cash Flows, Determining Optimal Cash Balance, Cash Management Models, Investment of Surplus Funds and Management of Marketable Securities
Module 34: Receivables Management, Cost of Maintaining Receivables, Factors Influencing the Size of Receivables, Forecasting the Receivables and Dimensions of Receivables Management
Module 35: Inventory Management, Benefits of Holding Inventories, Risk and Costs of Holding Inventories, Objectives of Inventory Management and Techniques of Inventory Management

Week 8: Dividend Decisions:
Module 36: Forms of Dividend, Determinants of Dividend Policy, Types of Dividend Policy, Bonus Issue, Objectives of Bonus Issue, Advantages and Limitations of Issuing Bonus Shares
Module 37: Ploughing Back of Profits, The Necessity of Ploughing Back, Factors Influencing Ploughing Back of Profits, Advantages and Limitations of Ploughing Back of Profits
Module 38: Dividend Decisions and Valuation of Firms, Theory of Relevance, Waltor's Approach and Practical Questions
Module 39: Gordon's Approach and Practical Questions
Module 40: Theory of Irrelevance, Modigliani & Miller (MM) Approach and Practical Questions

Books and references

  1. Prasanna Chandra "Financial Management: Theory and Practice", McGraw Hill Education Publishers. 
  2. Van Horne, J.C, "Fundamentals of Financial Management", Prentice Hall Publishers.
  3. Brealey and Myers," Principles of Corporate Finance", McGraw Hill Education Publishers. 
  4. Pandey I.M., "Financial Management", Vikas Publishers. 
  5. Khan, M.Y. and Jain, P.K., "Financial Management", McGrawHill Education Publishers. 
  6. Gupta, S.K. and Sharma, R.K., "Management Accounting", Kalyani Publishers.

Instructor bio

Dr. Abhijeet Biswas

Banaras Hindu University
Dr. Abhijeet Biswas is an Assistant Professor at the Institute of Management Studies, Banaras Hindu University. He is a Ph.D. & M.B.A (Gold Medalist) from the Institute of Management Studies, B.H.U and has qualified UGC-JRF in Management Ten times in a row. Dr. Biswas was conferred B.H.U Gold Medal, Dr. S.K.R. Bhandari Gold Medal and Kedar Nath Gold Medal for standing first in merit at M.B.A. Examination, 2013 by the Hon'ble Vice Chancellor of the University. Dr. Biswas is ranked among the Top 25 Researchers in India based on the P-Rank as per the ABDC Journal Quality List Ranking. He features in the Top 10 based on the criteria of Sole Author Publications. Dr. Biswas has chaired technical sessions, conferred the prestigious B.H.U meritorious scholarship, received the Most Appreciated Research Paper Award 2021, Best Research Paper Award 2022 and Best Research Paper Award 2024 by IM-B.H.U. He is the only academician from an Indian Central University to receive the C.K. Prahalad Prashasti Award by ReThink INDIA. As of now, Dr. Biswas has 22 publications (of which 12 are Sole Author/First Author Publications) in ABDC-A/B ranked and Scopus Q1 indexed journals which include the International Journal of Bank Marketing, Journal of Organizational Computing and Electronic Commerce, International Journal of Human-Computer Interaction, Social Responsibility Journal, International Journal of Quality & Reliability Management, Benchmarking: An International Journal, International Journal of Productivity and Performance Management, International Journal of Educational Management, International Journal of Quality and Service Sciences, Society and Business Review and others. His area of interest includes finance, entrepreneurship and consumer behavior.


Dr. Shashi Srivastava

Dr. Shashi Srivastava, an Associate Professor at the Institute of Management Studies, Banaras Hindu University, brings 19 years of teaching experience to her role. Holding a PhD in Finance and an M.B.A., she possesses a deep understanding of both financial theory and practical application. Dr. Srivastava's career reflects a dedication to high-quality teaching and impactful research. At IM-BHU, her expertise lies in finance and strategic management, with a focus on investment analysis, corporate finance, and financial markets. She also prioritizes student well-being, actively contributing to related initiatives. In addition to her teaching duties, Dr. Srivastava serves as the institute's student advisor, where she is deeply involved in student-centric activities. Her passion for research is evident in her contributions to numerous academic journals and conferences within the field of management studies.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 25 October 2025 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 6 assignments out of the total 8 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

Please note that assignments encompass all types (including quizzes, programming tasks, and essay submissions) available in the specific week.

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup. It will have the logos of INI and BHU.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- INI team


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