Financlal Management
i) <4. | Reg Alo: 23137/2036020
prreeine Es | class: T-MBA
ee ane tho various objectives
of financial management .
cb Propet Maximisation :
+ Profit Maxinusaton & often censidenod
as the prumony objective 5f financial management.
* Sho fenanee manager is mosponsible
to achieve optimal proper ththe short -run
ond - PUN 6p Hho business .
hus Involves strategies focused on
tncrwaging rlvenues and poductha Costs .
db Propes Mobilisation :
# Le thyelves sourcing funds fem. Various |
channels and deploying trom ofpectively
* Proper mobi fe,ation ensures that those |
is Auppicrent capital available for buszin2ss
operations ano fe spportunities
Tho finance or aoaponsible
fer managing tho differant £eUnces of
Buch 0s Apanws, debenturcs , bends, Loans, et,
Name : Saya katana, |Uh High Efpiclency: |
# Financial offer ency moans getting |
tho maximum eutput prem the P08 EVRCCE |
toyed -
# dus can be achieved thasugh cast |
fee, ppt zing Speratiens and improving |
produck vity ‘
(iv) Reduce Risk :
#Risk management involves identify ing
+f0se sighs , ABSES.8ING thee potential impact |
and inp Lornant ing Bivacteq ¢8 +0 mitigate thom -
+DNersi fication and marntathing adequate
Digau dity aoe commen strategies 10 puduce
Business Suavival:
# Ensuring the Long-term Buavival of
seo pusingas is cructal. Bt includes matirtaining
a atvong maskot pesition and adapting to |
08 tn the business enviaenment .
%Tt also tnvelves contingency planning |
and matntainche reserves for
unexpected ever -
=vp Balance Structure :
¥ Fenancial Management bang a
proper balance betuseon the varwous
BOUNCE of capital such as loans, equity ,
srotatned ensurings C&G
+ YA balance w prog ined fer
xibidlty » Stability amd diguicity in ho
| organtz arin
2 Nature of Finance
Copital Budgeting
| * Db involves Making decisions about the
-toum investments projects or assets.
#Tt troludes thc proces of Idantify in »
evabuaring and selecting invest mont projects |
that ant Aikely to yield the fughost swtwins
th Capital Sbruckure :
| Th De sage ce the mix of debt and
enyuiity that a company uses -bo finance tt
| operations and qoustn
An optimal capital atructure balances
tne benefits of debt tax shuiclds with
tho nike Of firanoval is treati Dividend Pebiog « ]
4 Diviolend Polioy duccsions cnvelre |
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dexorunin tha the pextion ef eaAUN 48 to be
dust buted to aharehollors versus he
amount to be sxetoined within the company
po tnvest morc
#thoge decisions depend. om the company’s
propitability 7 growth pass pects and cash
et
00 Ney pial
# yor teing Capital management involves
Managing the Company's Adept term assets
and Liobifities tp enguw that it has
Suphicc ent Liquidity to continue its operations
# Effective senting capital managomont
8 un m aintaintna a balance bereeon
| Linpuiolity and profitability.
* Highor PITUNE GAL usually arsociatal |
wsith higher susks . Pinanctal managers
mug idordi fa +n2 Level Ci Puke acceptable
4ho com pany and cheese unvestmonb -that
abign with ousk appenre -(wh Market Value of fhe Eivm:
#One of the pomasy qeuk OF feorncal
managemont isto maximize the market value
Hh ate fom
# Shs 8 achieved by making decisiens
frat increase to drinm's profitability and
moducos tho suse -
# The Market Value » poflectod inthe |
on pany 1g stock can
3° Rodati enship with ether clopastments :
(> Financial Management and Procuuction Depestner’:
#* Sho prwoducbon dopant mont B
abspensible por the actual crlahen éf goods.or |
gorwiees . Pinancial mansgemort plays a vite volo
in providing *Re neccesary fenanceal PLsOUrces |
Bor production activi ties .
+ Decisions solated to capital budgeting,
vestments tn production technology and
cost omont oli nact. ct ao |
Pyle rd dipant pci “¢ “Of |
+ Pinan cial management alse involves | |
zing the cost ~ efectivensss of production
processes ond rrakeita cloctstens En (3su03s
pike make -oy- buy anol raaseg 04 production cost)+ Funanctal management ene)
Btandand costing and break-even -a Ae,
eh fa papduetion olepasct marc.
tb puonetal Management and Material
#URe matortal department andles
ae pvecunemonct pe each
nous mnakeowals Aon utrodk for production .
Financial man Eo ee pean: |
ce teace material costs cand
Manag ing userteing Capital . |
* (event in vontow managemort » ensures
that funds aso net unnecessarily tied up
tock and thot trons no Stock - out |
Aituad on apfectng production : |
naqoniabng payment terms with suppliers,
ustich Can impact cash. flow and yoorteing
capital nop waremonts |
+ Decisis about invest igh -apality
specialized motoninls invetie financial
Anabys® 1 dacermine. ancin impact on he
paw duct aytabity anor cost.iy Pibanctal, Managemorct and. Risstnnel, Depaatuot
+ Sho personnal 6% Ruman aasouarces |
dlepastraordt & concernadl with recruitment ,
training and vselfare of employees . pinancial
management collaborates +2 Cnsune -+hat
pond 02 adequate punos to moot pay roel
and stron employer — plated expenses .
* Pinan cial Mana: r& abso plays a
‘on vOL0 th dLesig ning compensation
serotong'e? » tn cludin solantes , bonuses
and incentives , ensuning that thog abigr-
with tho organizabonal frranci al
abilities “and objectives .
+ Bmpleyeo - related investments such |
as the traning programs an cyaluated
by financial management fo. ERO
motunn on investment (R01).
i) Pwanctal emont and Manketia
ee
» Veo masckoting deparctmorst OG WES
finan etal Aupprte fer advertising ,
premobers 5 and thor mankoting activities.#Heow, the pinanccal ement is |
os ponsibbe for alle cating budgets to |
tpose activities . |
+# Penancial analyst Aelps th Assessing |
thx propitability of different marker |
Bt voctegecs Onde campalgns -
# Priving dlecisions , a citical a8pec’
of markoxting ane made i Ben ee
wrth financial managemort consiaerg
ho cost, market demand, compete er.
Bae eee |
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