Financial management focuses on the strategic planning, organizing, and controlling of financial undertakings to maximize organizational value. It involves critical decision-making regarding capital budgeting, investment analysis, and the efficient management of working capital and dividends.
The Financial Management course at the Application Level of ICAN equips students with the knowledge and skills to make effective financial decisions in an organization. The course focuses on financial analysis, planning, investment, financing, and risk management, integrating theory with practical application to prepare students for professional managerial roles.
Definition, nature, and scope of financial management
Objectives: Profit maximization vs wealth maximization
Role of financial managers in business organizations
Financial decision-making framework
Learning Outcome:
Students will understand the importance of financial management and the responsibilities of financial managers in decision-making.
Interpretation of financial statements (balance sheet, income statement, cash flow)
Ratio analysis: liquidity, profitability, solvency, efficiency
Funds flow and cash flow analysis
Budgeting and financial planning techniques
Learning Outcome:
Ability to assess financial health and plan resources effectively for organizational objectives.
Concepts and components of working capital
Determining working capital requirements
Management of cash, receivables, and inventories
Short-term financing options and strategies
Learning Outcome:
Students will learn to manage current assets and liabilities efficiently to maintain liquidity and operational efficiency.
Time value of money (present value, future value, annuities)
Capital budgeting techniques: Payback period, NPV, IRR, profitability index
Project evaluation under risk and uncertainty
Investment appraisal for strategic decisions
Learning Outcome:
Students will be able to evaluate investment projects and make informed financing and investment decisions.
Sources of finance: equity, debt, hybrid instruments
Cost of capital: computation of WACC (Weighted Average Cost of Capital)
Capital structure theories: trade-off theory, pecking order theory
Dividend policy decisions and factors affecting it
Learning Outcome:
Ability to make strategic decisions on funding operations and long-term growth of an organization.
Concept of risk: systematic and unsystematic
Portfolio theory and diversification
CAPM (Capital Asset Pricing Model)
Financial leverage and business risk analysis
Learning Outcome:
Students will assess risk and return to make financially sound decisions and optimize portfolio performance.
Overview of financial markets in Nepal
Equity markets, debt markets, and money markets
Financial instruments: shares, bonds, debentures, derivatives
Role of regulatory authorities (NRB, SEBON)
Learning Outcome:
Understand financial markets and instruments for investment and financing decisions.
Mergers and acquisitions
Corporate restructuring and recapitalization
Financial planning for growth and sustainability
Ethical considerations in financial decision-making
Learning Outcome:
Students will develop strategic insights for long-term financial planning and ethical management.
Financial analysis of real companies
Investment and financing decision-making exercises
Scenario-based problem-solving
Application of theory in practical, professional contexts
Learning Outcome:
Enhance practical skills in financial decision-making, analysis, and advisory roles.
By the end of this course, students will be able to:
Analyze financial statements and measure business performance
Make informed short-term and long-term financial decisions
Evaluate investment projects and capital budgeting proposals
Determine optimal financing and dividend policies
Apply risk management tools for sustainable growth
Provide financial advisory services in professional settings
Financial Analysis & Planning
Working Capital Management
Investment & Capital Budgeting Decisions
Financing & Capital Structure
Risk & Return Management
Financial Markets & Instruments
Strategic Financial Management
Practical Application & Case Studies