INTRODUCE TO FINANCIAL MANAGEMENT
“FINANCIAL MANAGEMENT IS TO INVEST ASSET & OPERATION”
How timely and cheaply Financial Management or form arranged form outside Or for,
within the business
‘In another word, Financial management is concerned with the flow of FUND
and short decision relate to gain of investment
“ efficient procurement of financial efficient Utilisation of finance and efficient
distribution and deposal surplus for a company.
ROLE OF FINANCIAL MANAGEMENT
The act of company depends on FINANCIAL MANAGEMENT ‘
The common activities and areas influence FINANCIAL MANAGEMENT”
DEPOSITIES
FINANCIAL MANAGEMENT
● FIXED ASSET
● CURRENT ASSET
● DEBT
● EQUITY
● SHORT MONEY MARKET
● ALL PROFIT / LOSS
TEHRE ARE FAUNTION WORK ON COMPANIES
FOR GROWTH AND OF ORGANIZATION
‘ FINANCIAL MANAGEMENT IM BUSINESS WE CAN SAY THE SUCCESS AND FAILURE
OF ORGANIZATION DEPENDS ON FINANCIALMANAGEMENT
FINANCIAL DECISION
● INVESTMENT DECISION
● FINANCING DECISION
● DIVIDEND DECISION
A Firm has many option to invest their fund but firm has to select the most maximum benifit
for the firm.
● Long term growth
● Risk involved
A company can rise Financial form various source such as by issue Of share debt or bank
loan
● Owner fund
● Borrowed fund
CAPITAL STRUCTURE
‘CASH FLOW” OF A COMPANY EMPLOYEE MORE DEBT SECURITIES IN CAPITAL
STRUCTURE IF COMPANY IS SURE OF GENERATING ENOUGH CASH INFLOW
“ CASH FLOW NOT COVER OF FIXED CASH PAYMENT..
FIXED CAPITAL”
● CAPITAL = DEBT / equity
DIGITAL WORK FINANCIAL MANAGEMENT
INVESTMENT IN FIXED ASSET FOR LONGER IS CALLED FIXED CAPITAL
● EQUITY
● PREFERNCE
EQUITY SHARE. PREFERENCE SHARE. DEBENTURE , LONG TERM LOAN. THERE
REQUIREMENT FOR FIXED CAPITAL..
WORKING CAPITAL
A CURRENT ASSET FOR SMOOTH OPERATION OF BUSINESS,
CURRENT ASSET CONVERETED IN FISCAL YEAR IN CASH .
● CASH IN BANK
● DEBTOR
● MARKETABLE SECURITIES
● FINISHED GOOD
● BILLARECEIVEDBLE
● RAW MATERIALS
● PREPAID EXPENSE
CURRENT LIABILITIES ARE SOURCE OF FUND FOR ACQUIRING CURRENT ASSET..
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