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An Overview of Financial Management,[object Object]
Session Layout,[object Object],Point 1,[object Object],Case Study,[object Object],Point 2,[object Object],Putting things In Perspective,[object Object],Point 3,[object Object],Introduction & Meaning of Financial Management,[object Object],Point 4,[object Object],Definitions,[object Object],Point 5,[object Object],Scope & Importance of Financial Management,[object Object],Point 6,[object Object],Objectives of Financial Management,[object Object],Point 7,[object Object],Functions of Financial Manager,[object Object]
Putting things In Perspective,[object Object],Some of the forces that will affect financial management in the future.,[object Object],The place of finance in a firm’s organisation.,[object Object],The relationships between financial managers and their counterparts in the marketing, production, personnel depts. etc.,[object Object],The goals of a firm.,[object Object],The way financial mangers can contribute to the attainment of these goals.,[object Object]
Introduction & Meaning of Financial Management,[object Object],[object Object]
‘Management of Funds’ is an important aspect of financial management.
It entails planning for the future of a person or a business enterprise to ensure positive cash flow.,[object Object]
Procurement of Funds:,[object Object],Effective Utilisation of funds:,[object Object],Two main aspects of the finance Function:,[object Object]
Important in all types of business.,[object Object],Range from making decisions regarding plant expansion to choosing what types of securities to issue when financing expansion.,[object Object],Responsible for deciding the credit terms under which customers may buy, how much inventory the firm should carry, how much cash to keep in hand, whether to acquire other firms (merger analysis), and how much of the firms’ earnings to plow back into the business versus pay out as dividends.,[object Object],Scope & Importance:,[object Object]
Objectives of Financial Management,[object Object]
Business concern is also functionally mainly for the purpose of earning profit.,[object Object],Tool or technique to understand business efficiency.,[object Object],Traditional & narrow approach.,[object Object],Profit reduces risk of the business concern.,[object Object],Main source of finance.,[object Object],Meets the social needs also.,[object Object],Profit Maximisation:,[object Object],It Leads to exploiting workers and consumers.,[object Object],It creates immoral practices.,[object Object]
Its vague,[object Object],It ignores the time value of money,[object Object],It ignores risk,[object Object],Profit Maximisation objective consists of certain drawbacks:,[object Object],Profit Maximisation objective consists of certain advantages:,[object Object],Must for survival,[object Object],Essential for growth & development of business,[object Object]
Modern Approach,[object Object],The term wealth means shareholders wealth or the person who are involved in the business concern.,[object Object],Also known as value or net present worth maximisation.,[object Object],Superior to profit maximisation – to improve the wealth or value of shareholder.,[object Object],Considers both time & risk of the business concern.,[object Object],Ensures the economic interest of the society.,[object Object],Wealth Maximisation,[object Object]
Forecasting Financial Requirements,[object Object],Investment decisions,[object Object],Dividend decisions,[object Object],Cash management decisions,[object Object],Financial Negotiations,[object Object],Market Impact Analysis.,[object Object],Functions of Finance Manager:,[object Object],The position of FM is critical & analytical to solve various problems related to finance.,[object Object]

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An Overview Of Financial Management