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L.N.COLLEGE OF
MANAGEMENT
&
TECHNOLOGY
GROUP :.
TANMOY CHAKRABORTY
SIDDHARTH SURANA
ANIL GORDE
KUNAL MEHTA
RAVI GUPTA
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PROJECT:-
MEANING ,SCOPE & SIGNIFICANCE
OF FINANCIAL MANAGEMENT

SUBMITED TO:-)
VANDANA MAM
INTRODUCTION

FINANCE MANA. & FINANCE ACCOUNT

GOAL’S OF FINANCIAL MANAGEMENT

ROLE,KNOWLEDGE OF FIN. MANAGER

INDIAN FINANCIAL SYSTEM

FUNDAMENTAL VALUATION SYSTEM

WHAT IS FINANCE
WHAT IS FINANCIAL
MANAGEMENT
FOUR MAJOR DECISIONS OF
FINANCIAL MANAGEMENT

•DIVIDEND
•INVESTMENT
•LIQUIDITY
•FINANCIAL
 FINANCIAL ACCOUNTING

DUEL ASPECT • ACCRUAL CONCEPT

• CONSISTENCY • COST CONCEPT

• CONSERVATISM • MONETARY
CONCEPT
 GOAL’S OF FINANCIAL
MANAGEMENT

PROFIT MAXIMISATION

• WEALTH
MAXIMISATION
ROLE OF FINANCE MANAGER
 SUPERVISE.
 FUNDS IN SUFFICIENT MANNER.
 DISBURSEMENT SHOULD BE ACCURATE.
 ANALYSIS PLAN & control
 ECONOMIZE.
 EFFICIENT ADMINISTER.
 ALLOWANCES FOR UNCERTAINTIES.
 KNOWLEDGE OF FINANCE
MANAGER
TIME & UNCERTAINTY
UNDERSTAND OTHER
FUCTIONS.
UNDERSTAND VALUES.
FINANCIAL MARKET eg; money market,
capital market etc.
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INDIAN FINANCIAL MARKET

 WHAT IS FINANCIAL MARKET

 Mobilization & transformation of savings into

promotion of investment & consumption is
known as FINANCIAL SYSTEM. This is the
function of the stock & capital markets, which is
a part of the organized Financial System in india.
Some of the inputs which are used
in the
productive process.
MATERIAL INPUTS.
HUMAN INPUTS.
FINANCIAL INPUTS.
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WHAT ARE FINANCIAL MARKETS

 A FINANCIAL MARKET facilitates the transfer of funds
from surplus sectors to deficit sector. Normally
households have excess of funds or savings, which they
deposit with banks & the banks lend to borrowers in the
corporate & public sectors who require the funds.
 They consist of investors or buyers, sellers, dealers &
brokers & does not refer to physical location. Formal
trading rules & communication networks for originating 7
trading financial securities link the participants in the
market.
CLASSIFICATION OF FINANCIAL
MARKET
1. By Nature of the claim.
2. By Maturity of the claim.
3. By Seasoning of the claim.
4. By Timing of delivery.
INSTRUMENT IN MONEY MARKET

Debt instruments, which have a maturity of

less than one year at the time of issue, are
called MONEY MARKET INSTRUMENTS.
These instruments are highly liquid have
negligible risk.
 Some of the major money
market instruments are as
follows:-

Treasury Bills
Certificate of Deposits
Commercial paper
Repos
Capital Market
LIBERALISATION OF FINANCIAL
SYSTEM
restructuring of economic system &
reforms:-
Policies related to foreign investment
Industrial deregulation
Public enterprise reforms
Trade liberalisation
Financial sector reforms
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FUNDAMENTAL VALUATION-TIME
VALUE OF MONEY
WHAT IS TIME VALUE OF MONEY
