OG OQ,CQ) QQ, G.chandra Sekhar . - 023001966 EM ASSIGNMENT san - 1st year (SecA) UNIT-4 hat are the pimary functions 4: within an organization and how do you conrty’ bale ot fimance to cleersion making procese? Ans:- The primary funcHons of tmance. within clo Organization encompass managing finanaal resources effectively 40 achieve, omanizational qoals These functions — inclucle + ah Financial Planning and Finale sis: Finance professionals develop strategic finance ja! plans, forecasHing revenue and expenses to ensure the organiza-Hon's financial SAecbi Uy and growth De Capital Budgeting: “They evaluate investment Oppartuni tier, deter mining which projects Or Axsets to pusisue based on they potential yetuans and visks 3. Risk Management finance manages financial risks by implem. enting Strategies Such ag hedging 1 inswiante and Aivetci ffeation tb Safeguasiad ag cutnc+ potentias losses:EE ——————<—_ 4 Fimancial — Conitol : “they estobush internal controle ove Procedure, ¢ ‘ Procedures 10. monttor ffnancial acturh-er, enti Ying ¢ . ‘ J Compliance, with vieqalatrons and minimiz- Ynq fraud cund errors 5- Fraaancra! Ke porch'ng and Compliance: Finance prepasiec aceite financial Statements tnd Yeportt for gtake holderc , fnetucling Wt } i equla-tors ; Investors and management 1 ensue Og tra ncpa rency and tomplang, with account ng Standevids 6- cost Management! they analyze cogts and €exp-thées -lo fclentify asieas for optimizaH on and ¢ Fhrefency inap rovement ; toni berting to ove all profi tabiliy, In deef rien. making processee, Pinane. plays 0 crercby tole by providing derta - driven insfghte and analy sic, Through financial modeling; Scenaaio analy si'¢1 and fish assessment , Finance professionel s help management evaluate VaHous opHone and they Potential impacts pn the organi aot! ons Financial health ind pesifomane ._ OpetacH ang : (2 Con you elaborate pn the nature ond Stope of Financial management inetucting ite Vatious Approach, and how they Ynpacst olganisatienal operations) Ans Planning Organ cing rcierecting and temrolting of an organizaton'c Ffnancal tesouseces to achreve jt¢ objectives effectively and effectentty. The Primary goal of financial management (§ to maximize Shastehoide wealth while ensening “arity prt, ta bility And Solvency . Vayious Approaches to financial Management extoe | ach with liste! Implications for Organi zotionay 4- Tura ‘onal = Approach - “this Approach focuses profits by Optimizing slesowwt ce All0 Ca-4'an, coop Control; And vievenue Siete Tt omphazter frnancral cnaly rot SIs 5 budgeting and fore and make tnformed Financial Management encompasses the Strodenia on ma mang | |2) Modern Approach = “the. modern Approach integratey Financia! Management with broades, org anizationa f 7 Stake hotdex °° porate Socia Pppraach »— ~ abjectiver seach as Maxi Mmzin Value, Sustainable Jrowth ard s Yespone'b1j1, 7) 3) Behavio ra! the influence + of. on nancial Uke human be ha ior any PSY chology eo aR Ena Ne Considere tarctore th VeHor Sentt ment 2 Morke4. aly NaMICl Clog 4) System — Approctch:- “thre — oe SYS approach sree Finan oat Tranagenent OS 29 trea rated System within the organrzation ; interconnected with other funtiiey and human BOSON, Oreac tike mosikett ng Operating ,OnIT-2+- 4) Investigate te Factors influencing organisartona} | Copal Shucttte deeistons, considering Interna) and | external yastlables) ! Ang = Organizational capital sHachute decisions are oe influenced by a mattipude of factors Inteialy Factors Snternal and externa cuch age finantlal Flep- ibility 1 profitability may prefer higher Oebt levele theivi yeturne. Growth procpects aloo fnfluence Capital Stractune cleefeions ac tompanies with growth ©pport ~ tunities may leverage, debt to fund expanclone. Movivove;, rick +toletance Verrier eumong firme, impacting thely willing ness to take on debt. Externally factor’ tke market Cconelitt’enc, Interest vlater , vegulatory *nvironmen-+ , and fodu sty norms Gigntt1'counity Influente captta/ Shuctwie decefsiong. Masiket- Condit’ ona? affect the cost and cwaltabfiy of debt and oMuity Ainaneing influencing the optimal Capital mig interest viate fmpact the cost Of debt any avialabiliy of debt and alternative foaneial.—— ll ; Additionally 1 viegerlartorg constraint, and 4. Conciclenatfons — aftect Capital stuctwie — deer'srone, Industry norms And compeittive preecuse, clo Influence companies to altgn thetyy capita/ Shuetwrer with industry Standasas. Oval ; organiretong Carehilly Consider boty Internal factors Suth ae financiays posi onmene Yisk appettte , af well ag external factors Like masiket conditfong and vegeta tory enuironnene ty cleturmine. thelist Optimal CapHtal Ofructwe. Balane'ng these Vvostiabley encuser Fitme matntaty Nnancial health And compttitvenerre In thesr yerpech! ve maricetsa Co of capital and ?1% In determing M2 tran ea / Wabi uty of — plojecss 2) Delve, into the cyiica! fmportance Ong. invertmante toy companies. Ans + The cost of Capital 1¢ a #eindamentay concept in Finance 1 viepsiesent'ng the, Mininuy vutWMm a company mug achieve from pty investors Ft comprises both clebt anol toatl ty fi nanern Coste = Ond viet tectt a the. overt ait Hex assou'oted with a Proj'ect . Under Stonel tog and actutately caleutartog the, cos of caphtal te erfu'cal = for Companies ac f+ alistectly pact thelist financial viability fn Severq] Ways, Firgity 1 the Cost OF Copal Sesiver at a bonch mok -for eyo uot ng Investment Opportun rer - proved or fnvutmentt Yering wetuan’ below the cam of capital ane cleemed. Unpiotr'table and may erode Chayehololwr value- tony wisely 1 I'nuoptmenty gensiating returns above the Cost of aupita/ ton tribute positively to the company’s proti'ias ©. y Pa CompetitvenctsSeeonctty , the cost OF COPHAl gosecte the Capital budlgsttng deelstone | qiuteling Heme ty MM ocattng SH2IOW 1 Cog CFF coer ty Ry comparing the. Cxpected wietuant of Votous Profecks 4 oO the Hy We peeve costs of Capitar, Companies Nn prorttize Investments thay Mart mize Shaste hotdern Wealth» Tm conclusion 1 the cot of Cople ane a Mueial determinant of q Com pany ts Viabsuty Ond strategic Hee oron~ mar Mnanciay ing. Peeeretey fost of Capita enables firme to lelentify Profitable ertimach ng and managing the, Tn vertmeny Optimize theut eapitar Stru Ghute, ) ane entanee Sharehoics1 value:ONIT~3 ta 1) Explore the factors the abive Dvestrpor 4 e S cleersione wi thin org anisa-tons foclueding righ acsesmemt; Aeturn Cxpectat one and markoy dy namics. Ange Investment leet slong wr thin Or}An ation § ane mysttad of factors, with ric K ASkesSment | involvel uretu y- inftuencead by em pectarti'eon g and tronrker ly nams es Plowing Pivotal ole - Fret risk ASlestment Involves ed luat ‘ng the potentias Unewitatnter and Calves se, eWenty AWsloclateg with an ‘thvetmens . Factors cuch ae Mew! ke 4 votati tity ! slequlatory hangar ond com ie Aluntent ove taefuleey eng) the level of yisk Tnvolved . employ Varin Sk Yzed to 99 Og aniZehlang MeLnaaement -tee hniques , on lind hed 9 ey mitigate, Petential loscee, Iheluding diver el ty cary Return expeclrHone, on the O81 heme), chive investment cleeictone by det'ning thedesivied profita pruty And aligning th em with the orqanizaHen'e SHategic objective - There ox pe clatron ts aie often influenced by factors Cuch as meiket Conclitiens, tnelustry +rendy. Tn Summary rinuertment deatstang wlérrp Organi sack! ons ame Sheped by @ complors interplay of tactore + Mneudeng our ek actercmeyy vieturn expectertiong ond mosiker dunamrer« By peers) (evaluating eget ete arer ae Organteartione ana 2nhante. thelvt long —term nonce p2ifor mance -— | 2- provide an In-depth overview of the | Veurfoug methods employe cl fp Capital bud geting | ati scussing thel yy Sheng the , Weakness cind Custa- biuty tor different +typeo ot projets: Ans Capital Huel going tnvolued pug itaio4 fotentt at oa term — tnuettments to oletermine the}, Feartbily and poffta bility. Several me bhooly ase employed in thig procers, Lach with ft Chrengehe Weatners ; clnd suitabi ty for different *Yper of Projects - 4 Net prem value Cnpy): Strengths + NPV considers the +ime value Of money by Alrounting futwie. cash flows to Chery present Value ++ provides gq clean indleatian of Whe ther ain investment will add value to the Company Weakneccess’- NPV wieleg ON actunarle Litimertey of cash flows and Afscount viatee , whi'ch Can he cha lunging to obtain + SH also deer ACeoen-t tor the size or Scate of thé fnvetlmeny » SuMabrlity’- Npv fe CuHable for propects with paedittable cash Flows and when Comparing muteatl,exclusive. project 9- thiernal Rate Of Return Cigry: Strength’ Jen calartating the alictount viele CH which the peent Value, of cash foHows Squats the Initial invettmen+ . ry! eary to urlerand ancl provicer q parentage wietyrn on Invertmemt + Weaknesers'- IRR calculate the Mstaan pate at which the putuent Value of C8 in -Plousy ana cot Indwal thvertment - Sutobi tty: RR 18 Suitable. ~fy comparing inveltment — Opportumttiee and tor pry ecte ihe Conventional Cath flows patterny,UNIT- Ht * 4} Analyse the cUvatce factors fmpaeving busing woking capital Management 1 con cl dering (nternay Opastational factore and evteinal Mavt (co cos: Intlpen. “Ans Eftechve Soo Lad capital Management fg Cacrelay foy the -finanaal health and Sustainab? uty of business. r+ tnvoluet Managing cl company's Chord derm cigsests and Uabiuitiers to 2ncuse, Cmoots | OpeHor-Hions: the management of Working ¢apftas ts (nfluened by a veuriety of Internal operatithey| factore and eternal MUiket fntlrences, Trternatly factors Such as the efticenay © inventory management actouny we areucth le. cind actwounte payable play a signi ficant roles Effucony inventory management enswier tat the Company moinaine optims! levelt of inyerttory to meey custome clemand while minimizing Carry way, External market ind Laer cor allo impary working working Capita | management + EComfc cont/- vient; cach ap Intervet vierte I AflacH'eN Cnd over.— = dn eonctuuton, efreetye eee Capttal mana. gement vregutar a balan& between tnteanas operational tactors Such ag inventory, AeLouny Bleerevable, and account Payapy ory eh tenn Masiker intluencer Such € eronomig CondiHan, Com pet'vlen and sega lato rey Heung eo By Canefully considering fhete, factors , Busines; Can optimize thelr MSO: caprtal to Support theta clay ~ te ~clay Opsttartion ¢ ond tong term growth obj echivan2) Explain the methodology Used to es mate the work! ng capital vequlurement Por a business incuuding forecasting teerniquy and Financia anatysis tole. Absr Eg-Hmacting the ork capital reqslrement for o busines Involves aissersing the. Cashflow, | meedy necesar{ to Sustain Aouy to ~ clay pperat'eny + Henee a methodology ty pica Ury employed + | 4. Historical Anatyshe-- Begtn by eeomind ney past finan Vial Statemente to (cenH'f£Yy trend, jn workin Capi tad co mponen 4 such Qs Aton vteutewahle, Altountr Pryable awd fnven tory levels, 2. Foreca.sHtng faker. Sater.forece tte Cemve_ as the foundation for Gt moot! ny woresng Cap tas need YHZe qWwentitatve, metho woh ay time Souter Analysis rtrend CNA LysI'9, TearresHan Cmatyste +o pedrer tute cater. 3 Estimating Accounts Keceryabler- Gated on falee towecast, ettmate he actountt wsteceefvabl bhilanw by tonsiderring the Ayuiacqe Collection pexlod Ard payment behaviour -4. Pore casting Inventory * Apalyze fnuestory farmove: viatiot and consides prooieH on schedule, leacl mes and demand Vevttabi ly to fore cary inventor levels acuustately « 5 projecting Accounts Padeble> Fyatuate historia Payment portieane. ind Megotate fayorable paymong ferme ustth “SU pp Lies to -OMend the account, Peyas Pesfod: forecap, acrounlU payable. bated ap pxto] ected enpencer ONd Payment terme. 6 Gath Flow Aina ysl | Tntegrate the a a eee of actouny viewivable , Inventory anol acOu yt, Poyable jmp the cash How -foreaasp to cleterins the net working capital Vequirement - 4 Sen aH vity Anadis Concluct Sencltvity analysis to asserc the Impact of Changes tp Key vost able teg Caley yolume 1 PY mont “Hermp) on the working Capital Yequhemen .ONIT- 5 1) Pxamine the qartonate behind \eruting mre Shaver ; constdlenng fattore Such a wietained | eawningr, capital vtertructuning t Mowe et Sepetrom and Shateholda yale ohhancemant - Evaluate the Ampact Of bonus share ‘8Suer on Shaye- holdey weatth and brgan {eoHons p241-Formane . Pru Bonus Sharer , alto Known UY Sep elivi clin) or Capftatizahion fecuey pase addu'sy fecued to Orvisting Shoxe issued Chouteho ters withoct onal Share to NTE Hing ONY COM 40 them, the BioH'enale behind fscutng bonus share, eneompay Several factors: 4 Retained Earning UtUZecH on: Come antes OMen issue bonus shoes a meane ty attize aco. Um ulated wletained earning, « 2. Capite Rertnieiing t- Bonut shove. fesuey can be pant of a broacler capr'tal weshy etl ng Guosegy- BY coptiatizing slrestves , the Company oH 4 » Hol Structure - Capra | can Improve ‘+6 “opMastke+- Signatine’s Issufng bonus Shares. con Sahel Manadomentts ConfieleNe Irn tho Comang 1 brtuy brospect - T4-demonshetu thar he compony hay SUPircient vielenre to C42Wend Shateholokes ¢ wit, out com promictng are Finanetoy Shey bit y , Sheure, holler, Vette. Eb hancemeny Ir Bont shaste fer, Coup enhern ce. heute ho lobe Voults Sn Yoo ou, Way, the name of ont Harding Shastet | leacting A deduction 'n he First hey intsteate, Stoc & Pn'ee pret Chay.2) discucc the Vartous typer Of divictencls Ine Cudling Cash, Stock and property dividenclt 1 Analysing thepy wiespechve advartages jchaw backs Cina Implications ta Captol — altoca tion Onel Chase holder value Crectlin Ans'- pividenclh Serve as a Catlcal Component of Shasie holden vale tation And Cupra! alloay Shrotegies tor compan! Ls. Three primar iy type of dividends Mis! cach clividlends, Gock dividendy And property Dlelonolt, each camy/ng US net adlvant age draw backr and — impliicocong Cath diuidinds, the mot} common fovm , involye the dighu buten of prob to Sharehololers in agh “This Hype sor tees Immediate Uqusoltyy provicting chore holdas with a tang? ble aeluren on Invertment » Howeuer rellante Of rh cMviclondly. may Umit a Compony's abibty to defnvep | profit into growth - =e