MEX 3506 Financial Management

Course Code MEX 3506
Course Title Financial Management
Number of Credits 5
Year Number 1
Medium of Instruction Sinhala / English

The introductory course of Financial Management is designed to improve basic knowledge about the Financial management in business. Thus, in this module, various central concepts and theories of the field will be discussed. Therefore, the environment course would facilitate students to understand theoretical and practical aspects of Financial Management in business environment.

a) To improve basic knowledge of the field of Financial Management.
b) To motivate students to understand the application of basic Financial Management theories and concepts in business entity.
c) To enhance these Financial Management skills to become efficient and effective managers.

After completing this module, students will have ;
a) Comprehended clearly the main theoretical aspects of the field of Financial Management.
b) Analyzed and demonstrated clearly the application of such theories into practical aspects.
c) Improved their Financial Management skills to become efficient and effective managers.

Content No. of Hours


Main Topics Sub Topics


1)   Introduction to Financial Management 1.1  Background of  Financial Management

1.2  Objectives of Financial Management

1.3  Financial Statements, Income tax and Cash Flows.

1.4  Financial Market


10    hrs
2)     Financial Management Concepts 2.1  Risk and Return

2.2  Time value of Money

2.3  Valuations of shares and debentures


10 hrs
3)  Financial Environment In   Sri Lanka


3.1  Financial System

3.2  Financial Intermediates

3.3   Financial Instruments

3.4  Colombo Stock Market

3.5  Price Index


10 hrs
4)  Financial Analysis, Planning and Controlling 4.1  Financial Analysis (Ratios)

4.2  Financial Forecasting (Budget)

4.3  Financial Planning and Controlling


10 hrs
5)  Time Value of Money 5.1  Basic Concepts

5.2  Value Added Tax (VAT) and Auditing

5.3  Process of Discounting


10 hrs
6)  Risk and Return


6.1  Measurers of Risk and Return

6.2  Risk and Return on Investment

6.3  Correlation and Investment Diversification


10 hrs
7)  Working Capital  Management 7.1  Working Capital Policies

7.2   Valuation of Financial market investments

7.3   Debt Management

7.4   Inventory Management

7.5  Short-term Cash Files


15 hrs
Mode of Study Self – Study and Seminars
Evaluation    Final Examination (100%)