18-12-2014, 10:00 PM
Please send me ppt of financial management by khan and jain
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financial management by khan and jain ppt
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Please send me ppt of financial management by khan and jain
28-03-2017, 03:32 PM
Financial management refers to the effective and effective management of money (funds) in such a way as to achieve the goals of the organization. It is the specialized function directly associated with top management. The importance of this function is not seen in the "line", but also in the capacity of "personal" in general of a company. It has been defined differently by different experts in the field. The term typically applies to an organization or financial strategy of the company, while personal finance or financial life management refers to the management strategy of an individual. It includes how to increase capital and how to allocate capital, that is, capital budget. Not only for the long-term budget, but also how to allocate short-term resources as current liabilities. It also deals with shareholder dividend policies.
Financial Management Functions
1. Estimating capital requirements:
A finance manager has to make an estimate regarding the capital requirements of the company. This will depend on expected costs and benefits and future programs and policies of a concern. Estimates must be made properly, which increases the profitability of the company.
2. Determination of the composition of capital:
Once the estimation has been made, the capital structure must be decided. This implies short and long-term debt capital analysis. This will depend on the proportion of social capital a company owns and additional funds that have to be collected from external parties.
3. Choice of sources of funds:
In order to obtain additional funds, a company has many options such as:
- Issue of shares and debentures
- Loans to be taken from banks and financial institutions
- Public deposits receivable as in the form of bonds.
4. Investment of funds:
The finance manager has to decide to allocate funds to profitable companies so that there is security in the investment and the regular returns are possible.
5. Elimination of the surplus:
The decision on the net benefits must be taken by the finance manager. This can be done in two ways:
to. Dividend Declaration - Includes the identification of the dividend rate and other benefits as a bonus.
second. Retained Earnings - The volume has to be decided which will depend on expansion, innovation, company diversification plans.
6. Cash Management:
The finance manager has to make decisions regarding cash management. Cash is required for many purposes such as payment of wages and salaries, payment of electricity and water bills, payment to creditors, compliance with current liabilities, maintenance of sufficient stocks, purchase of raw materials, etc.
7. Financial Controls:
The finance manager not only has to plan, acquire and use the funds, but also has to exercise control over finances. This can be done through many techniques such as proportions analysis, financial forecasting, cost and benefit control, etc.
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