PROJECT REPORT ON THE

ROLE OF FINANCIAL MANAGEMENT IN A CO OPERATIVE ORGANIZATION

A project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (According and finance)
Under the Facility of Commerce
BY
Shivani Vishwanath More
ROLL NO- 95

UNDER THE GUIDANCE OF

Prof. CA. Mahesh Vaishya

N.G. ACHARYA AND D.K.MARATHE COLLEGE OF ARTS,
SCIENCE& COMMERCE, NAAC ACCREDITED A GRADE AFFLIATED TO MUMBAI
UNIVERSITY, N.G. ACHARYA COLLEGE MARG, CHEMBUR (EAST), MUMBAI-71

15TH APRIL 2021

 N.G. ACHARYA & D.K. MARATHE COLLEGE
N.G. ACHARYA COLL MARG, CHEMBUR (EAST),
MUMABI-71

Certificate

This is to certify that Mrs. Shivani Vishwanath More ha worked and duly completed her project work for the degree of Bachelor in Commerce ( Accounting and Finance).
Under the faculty of commerce in the subject of Financial management and her work is entitled, “impact of international financial reporting standards on earning management” under my
supervision.
I further certify that the entire work has been done by the learner under my guidance and that no part of its has been submitted previously for any degree or diploma of any university.
It is her own work and facts reported by her personal findings and investigations.

Course coordinator
Principal

Project Guide/ internal examiner External Examiner

IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON EARNING MANAGEMENT

 DECLARATION
I undersigned Mrs. Shivani Vishwanath More her by, declare that the work embodied in this project
work titled “THE ROLE OF FINANCIAL MANAGEMENT IN A CO-OPERATIVE ORGANIZATION”, forms by
own contribution to the research work carried out under the guidance of CA. MAHESH VAISHYA is a
result of my own research work has not been previously submitted to any other university for any other
degree/diploma to this or any other university.
Wherever reference has been made to previous work of others, it has been clearly indicated as such
an included in the bibliography.
I, hereby further declare that all information of these document has been obtained and presented in
accordance with academic rule and ethical conduct.

Shivani Vishwanath More

Roll no-95
Certified by
CA. Mahesh Vaishya
 ACKNOWLEDGMENT
To list who all helped me is difficult because they are so numerous and the depth is enormous.
I would like to acknowledge the following has been idealistic channels and fresh dimensions in
the completion of this project.
I take this opportunity to thank the university of Mumbai for giving me chance to do this
project.
I would like to thank my principle Mrs. VIDYAGAURI LELE for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our coordinator CA. MAHESH VAISHYA for a moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide.
CA. MAHESH VAISHYA whose guidance and care made the project successful.
I would like to thank my college library for having provided various reference book and
magazines related to my project.
 INDEX
CHAPTER ONE:
1.1 Introduction

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVE OF STUDY

1.4 SIGNIFICANCE OF STUDY

1.5 STATEMENT OF HYPOTHESIS

1.6 SCOPE OF THE STUDY

1.7 DEFINATIONS OF TERMS

 CHAPTER TWO

2.1 REVIEW OF RELEATED LITERATURE

2.2 GENERAL REVIEW

2.3 FINANCIAL RATIOS AND PROFIT PLANNING

2.4 BUDGET AND INVESTMENT ANALYSIS

2.5 MANAGING THE FINANCIAL STRUCTURE

2.6 REFREANCE
 CHAPTER THREE
3.1 RESEARCH DESIGN AND METHEDOLOGY

3.2 SOURCE OF DATA

3.3 PRIMARY

3.4 SECONDARY DATA

3.5 SAMPLE USED

3.6 METHOD OF INVESTIGATION

 CHAPTER FOUR

4.1 NATURE AND MAIN AREAS OF FINANCIAL MANAGEMENT

4.2 BUSINESS FINANCE
4.3 STATUTORY AUDIT OF CO OPERATIVE SOCIETIES
4.4 CONCLUSION
4.5 ABTRACT
 1.1 INTRODUCTION
Financial management involves all the activity of the financial
managers concern with the rising of capital lining cash and
credit requirement including the effective control of financial
resources.
 
The activity could be suggested as follows;
1.Converting forecast into planned and budget
2.Planning the appropriate capital structure
3.Raising cash flow outside the business
4.Forecasting the future
5.Investing surplus fund
6.Controlling the cash balance and flow in accordance with
plans and with changing circumstance.
7.With the emergency of finance as a separate field emphasis
was more or less on legal matters such as mergers
 1.2 STATEMENT OF THE PROBLEM
There has been unprecedented increase in the quest for the answer of the following questions posed in order to
clarify the duties of financial manager, which is the prospective rank of a student studying finance. Financial
managers do not have authority in carrying out their responsibilities their responsibilities their actions are
constrained by certain factors beyond their control. These factors can be divided into two Internal environment
factor .The principal factor in this case. The [rinc9ipal factor in the case is the unavailability of human resource and
the organization self imposed standard. The external environment factor such as the political legal firm work.
Culture and social value. The economic climate technological trends and the customers’ attitude. It is therefore
imperative that financial managers take cognizance of the environmental factors that effect their decisions.
 
There has been unprecedented increase in the quest for the increase for answer for the following questions posed
in order to clarify the duties of a financial manager, which is the prospective rant of studying finance.
What is managerial finance? How importance is the financial functions for the company. Are the financial mangers
responsible for the performance of certain task? Dose this means that his action are design to accomplices specific
goals. How and when did the financial archive the firm objective, which is the finical managers definition of the fare
price, and how is it related to his firm return and investment capital. One may logically ask, why are we interested in
this cash flow if they do not affect the profit. Why cannot the profit effect not be taking directly not the account in
the analysis? What tools and techniques are available to him and how dose he goes about managing his own
performance. On a general scale, do they have any operational meaning? That is how can managers operation use
to further national goals. Having identified these questions, the provision of possible answers to the listed question
constitutes areas of possible consideration of the project. As stated that the financial management must find a
rational base for answering the following three questions;
(a)               How large should an enterprise be and how fast should it grow. What should be the composition of its
liability
(b)               What should be the composition of its liability
(c)               In what form should it hold it asset board decision.
(a) How large should an enterprise be and how fast should it grow.
(b) What should be the composition of its liability.
(c) In what form should it hold it asset board decision.
 
The asset question stated above relate to three board decision
areas of financial management. Investment financial managers
become important that the primary research conducted on a
named company serves a dual purpose this not only serve as
part of the tools in answering the questions, but is mainly used
to unfold the extent to which the financial managers of a
company is executing his duties according to the project.
1.3 STATEMENT OF THE HYPOTHESIS
Base on the certain theoretical assumptions, hypothesis will be formulated below.
There theoretical assumption, which include the established fact that the level of
investment firms undertake and as such, the level of dept end by firms. Investment
involve additional rest or financial assets and is usually measured in terms of fund
used in the process, this funds include both equity and debt.
Ho: the level of debt financing has a negative effect on the economy
Hi: the level of financial has a positive effect on the economy
 
Ho: the level of debt financing has a positive effect on the performance of the
employee
 
Hi: the level of debt financing has negative effect on the performance of the employee
 
Ho: the level of debt financing has not positive effect on the productivity of a firm
Hi: the level of debt financing has a positive effect on the productivity of the firm.
 
1.4 SIGNIFICANCE OF THE STUDY
The purpose of this project: the role of finical
management in cooperate organization, is to equip the
practicing, finical managers, financial controllers, and
director of finance, treasurers, student of financial
studies and readers with a basic understanding of
financial decision. The financial manager carries out
financial decision maximize through the following;
(a) Current asses management
(b) Capital budget decision
(c)  Dividend decision
(d)  Financial decision
 STUDY
Financial which is the life wire of any business and as
developed in 1900 since it concerns the actual flow of money
as well as any claim against money. The financial mangers
subsequent decision is made in such more co-ordinate manner
responsible for the control system. The financial managers are
concern with;
(a) Financial planning with the bank
(b) Raising of fund
(c)  Allocation of fund
(d)  Financial controlling of fund
(e)  Interpretation
 1.6 DEFINITION OF
TERMS
The general ideal of this work “ The role of financial manager in a corporate organization looks into the following
perspectives;
Chapters one give the general explanation of the subject from the historical perspective, organizational goals, and
statement of problem, goal and objectives.Significance of the study and limitation and limitation and research
hypothesis
Chapter tow – literature review from the general. Overview, financial ratio and profit planning management of current
asset, budgeting and investment and management of current asset, budgeting and managing the financial and
management of short and medium term.
The financial management involves all activities of the financial manager concerned with raising of capital, planning cash
an credit requirement including the effective of the control system as the financial recourses. The activities could be
selected as follows (a) converting forecast into planes and budget
(b) Planning the appropriate capital structure
 
Chapter two, literature reviews from the general overview, financial ratio and profit planning management of current
assets, budgeting and financial analysis. Budgeting and investing. Managing of small financial strut and mangling f short
and long term financing.
Chapter three deals with the research methodology conducted and consulted from the flow. Personal interview,
secondary source of data, questionnaire hypothesis test and empirical analysis of the named company.
However, the chapter four deals with the discussion of result through financial ratio analysis, hypothesis testing and
implication of the result
On the other hand chapter five look into the summary, conclusion and recommendation respectively finally followed by
bibliography, glossary and appendix
 Chapter two, literature reviews from the general overview,
financial ratio and profit planning management of current
assets, budgeting and financial analysis. Budgeting and
investing. Managing of small financial strut and mangling f
short and long term financing.
Chapter three deals with the research methodology conducted
and consulted from the flow. Personal interview, secondary
source of data, questionnaire hypothesis test and empirical
analysis of the named company.
However, the chapter four deals with the discussion of
result through financial ratio analysis, hypothesis
testing and implication of the result
On the other hand chapter five look into the summary,
conclusion and recommendation respectively finally
followed by bibliography, glossary and appendix.
 2.1 REVIEW OF THE RELATED
LITERATURE
In this section we will compare the foreign
and local studies and systems of some
companies and authors in order to get some
detailed information that will help for
building a screen design, business case, and
also to determine the possible features that
we need to add in our system and the most
important thing is we determine our
uniqueness to the existing system.
 2.2 GENERAL REVIEW
Effective financial management is essential for securing value
for money in the use of resources. For a self-governing
jurisdiction effective financial management requires:  an
appropriate framework for the allocation of resources by the
legislature and accountability of the executive to the
legislature for the use of those resources; and  effective
systems for the planning, direction, monitoring and control of
the States’ finances by the executive. 1.2 The States face low
projected growth in revenue and a substantial projected budget
gap. Good financial management will allow the necessary
retrenchment to be secured in a planned way, contributing to
the corporate objectives of the States, facilitating reform and
with the minimum impact on services.
 COMPANY DISPOSAL AND
CONSOLIDATION
With the most vital problem of the firm was identification of the means for raising capital
for possible expansion due to the increasing wave in industrialization. The mobility of
fund from the Areas of surplus to the areas of scarcity posed a lot of problem. Because of
the radical changes which ochre during the depression of 1930 which culminated into the
failure of many business finance which re-directed to bankruptcy, reorganization and
liquidity for profitability under the imperfect perfect competition continues to be the
motivation to maximize the profit and wealth of the owner. To ague to maximize profit
has led to he study of financial management of which attribute factor can be socialized as
follows;
(a) Saving
(b)Business growth
(c) Inflation
(d) Competitive
2.4 FINANCIAL RATIOS AND
PROFIT PLANNING
Financial ratios are created with the use of numerical values
taken from financial statements to gain meaningful
information about a company. The numbers found on a
company’s financial statements – balance sheet, income
statement, and cash flow statement– are used to
perform quantitative analysis and assess a company’s liquidity,
leverage, growth, margins, profitability, rates of return,
valuation, and more.
 Managerial efficiency in a profit seeking organization is
generally gauzed in terms of probability. The management,
therefore, aims at maximizing profitability of the enterprise. In
furtherance of this objective profit planning technique is very
frequently employed.
Profit Planning is a systematic and formalized approach of determining the effect of
management’s plans upon the company’s profitability. In order to undertake planning for profits
finance manager makes projections of outflows and inflows of the enterprise. The main inflows of
an enterprise are people, capital and materials and they are generally cost incurring factors.
2.5 BUDGETING AND INVESTMENT
ANALYSIS
Profit Planning is a systematic and formalized
approach of determining the effect of
management’s plans upon the company’s
profitability. In order to undertake planning for
profits finance manager makes projections of
outflows and inflows of the enterprise. The main
inflows of an enterprise are people, capital and
materials and they are generally cost incurring
factors.
 2.6 Sources of Data
The sources of data can be classified
into two types: statistical and non-
statistical. Statistical sources refer to
data that is gathered for some official
purposes, incorporate censuses, and
officially administered surveys. Non-
statistical sources refer to the collection
of data for other administrative
purposes or for the private sector.
 3.1 Different sources of data?
The following are the two sources of data:
1. Internal sources
When data is collected from reports and records of the
organisation itself, they are known as the internal sources.
For example, a company publishes its annual report’ on
profit and loss, total sales, loans, wages, etc.
2. External sources
When data is collected from sources outside the
organisation, they are known as the external sources. For
example, if a tour and travel company obtains information
on Karnataka tourism from Karnataka Transport
Corporation, it would be known as an external source of
data.
 3.2 Types of Data
A) Primary data
• Primary data means first-hand information collected by an
investigator.
• It is collected for the first time.
• It is original and more reliable.
• For example, the population census conducted by the government of
India after every ten years is primary data.
B) Secondary data
• Secondary data refers to second-hand information.
• It is not originally collected and rather obtained from already
published or unpublished sources.
• For example, the address of a person taken from the telephone
directory or the phone number of a company taken from Just Dial are
secondary data.
 3.3METHODS OF INVESTIGATION
A financial investigation is any investigation into a
person or person’s financial matters or those of a
business or private limited company. A financial
investigation can determine where money comes
from, how it is moved and how it is used.
Financial investigation techniques can be used in all
types of investigations, and investigators are able to
use powerful legislative tools that target the proceeds
of crime. This module focuses on the knowledge and
awareness required for a non-specialist investigator
use financial investigative tools.
3.4 Data Analysis and Interpretation
Analysis and interpretation of financial statements are an
attempt to determine the significance and meaning of the
financial statement data so that a forecast may be made of the
prospects for future earnings, ability to pay interest, debt
maturities, both current as well as long term, and profitability
of sound dividend policy.
The main function of financial analysis is the pinpointing of
the strength and weaknesses of a business undertaking by
regrouping and analysis of figures contained in financial
statements, by making comparisons of various components
and by examining their content. The analysis and
interpretation of financial statements represent the last of the
four major steps of accounting.
 Data Presentation And
Analysis
Financial analysts are required to present their findings in a neat, clear, and
straightforward manner. They spend most of their time working with
spreadsheets in MS Excel, building financial models and crunching numbers.
These models and calculations can be pretty extensive and complex, and may
only be understood by the analyst who created them.  Effective data
presentation skills are critical for being a world-class financial analyst.
It is the job of the analyst to effectively communicate the output to the target
audience, such as the management team or a company’s external investors.
This requires focusing on the main points, facts, insights, and
recommendations that will prompt the necessary action from the audience.
One of the challenges is to make intricate and elaborate work easy to
comprehend through great visuals and dashboards. For example, tables,
graphs, and charts are tools that an analyst can use to their advantage to give
deeper meaning to a company’s financial information. These tools organize
relevant numbers that are rather dull, and give life and story to them.
 HYPOTHESIS
Well, generally, this statistical tool is used by the financial
analysts. But that does not mean that people belonging to
other domains cannot use it. If you are an English
literature student and have a thorough knowledge of
Hypothesis Testing, ain’t nobody stopping you.
Anyway, suppose financial analysts want to predict the
mean value that a customer can pay for the product that a
firm is manufacturing. The Bugatti La Voiture Noire is in
trend so let us assume that. Now, the analyst can formulate
a hypothesis like “The average value a billionaire can pay
for this car is $5 million.” This is a hypothesis that the
firm will now test and that will be hypothesis testing.
HYPOTHESIS TESTING IS A SCIENTIFIC METHOD
Do you feel like Stephen Hawking right now?
Hypothesis Testing is a major part of the
scientific methods that is a systematic approach
of measuring the theories through visual
examination. A good theory is the one that makes
accurate predictions. For an analyst who is
making predictions about the business, hypothesis
testing is a way in which he/she can give
statistical support to the predictions. If the
analysts say the product is going to fetch $100
million in sales in the first week, hypothesis
testing is to check if that is true or not.
 How should you conduct hypothesis testing
1. Begin by stating your null hypothesis. Let us call is H0. Then you state your
alternative hypothesis which we should call Ha.
2. After the hypothesis have been declared, identify the statistical assumptions that will
be made. The statistical assumption should be evaluated to see if these assumptions are
in agreement with the sample chosen.
3. Determine the appropriate probability distribution and select the appropriate test
statistic.
4. Select the Significance Level (?). What is that? It is the probability threshold for
which the null hypothesis will be rejected.
5. Based on the significance level and on the appropriate test, state the decision rule.
6. Collect the observed sample data and use it to calculate the test statistic.
7. Based on your results you should either reject the null hypothesis or fail to reject the
null hypothesis. This is known as the statistical decision.
8. Consider any other economic issues that are applied to the problem. These are non-
statistical considerations that need to be considered for a decision. For example,
sometimes societal cultural shifts lead to changes in consumer behaviour, this must be
taken into consideration in addition to the statistical decision for a final decision.
 Explanation with an example.
1. Null hypothesis, H0 <= 5
Alternative hypothesis, Ha > 5
2. The car will be bought by billionaires around the world. There is a huge population
of billionaires around the world of various cultural backgrounds. So, the car will be
used by a population of the normal distribution.
3. Let us assume that we can survey 100 billionaires and collect observations. Our
population choice is right and sufficient population, we will go with z-test.
4. As a financial analyst, one should be confident of the result. Let us take the
significance level of ?=5%.
5. After applying formula and stuff, the rejection point becomes 1.645. So, if the z
score comes larger than 1.645, we are dumping this hypothesis.
6. The mean price that the customers can pay is $5.02 million. This came from the data
of 100 observations. Standard deviation is of $0.10. The z score will be [(5.02 – 5) /
( 0.1/ ?100)] = 2.
7. Z score is greater than 1.645, so we reject our null hypothesis at 5% significance
level. So, the alternative hypothesis holds true that the customers will pay on average a
price greater than $5 million. And the car was sold for $18 million.
 SUMMARY OF THE FINDINGS
During 1999, Oakland Unified School District underwent a comprehensive review of its
financial management. Significant deficiencies in the district’s financial management policies,
procedures, and/or practices were noted in the Oakland USD Assessment and Recovery Plan,
January 31, 2000 that was subsequently issued. In the intervening four years, Oakland’s financial
condition continued to deteriorate.
Another comprehensive review was performed in the fall of 2003 to evaluate the district’s
progress on implementing the original recommendations. The Assessment and Recovery Plan
Update, September 30, 2003 reported that the district had not made any significant progress in
addressing the deficiencies noted or implementing the proposed recommendations. In fact, in
several areas, the district’s condition had gotten worse, and the problems or deficiencies were
noted in the key areas of budget development and monitoring, projection of net ending balances
and maintenance of required reserves, closing the books, multiyear financial projections,
projecting and funding the cost of collectively bargained contracts, special education
encroachment, and management information systems.
 Recommendations
The magnitude of the myriad problems facing the district—the
large size of the deficit, the ongoing decline in enrollment,
continuing issues of special education compliance and
maintenance of effort, and management information system needs
—and the day-to-day operational needs make the establishment
of a comprehensive and coordinated response to the findings and
recommendations in the Recovery Plan difficult. The district has
made some progress and is making a good faith effort to address
its fiscal issues. However, the district has not yet identified a
multiyear plan to resolve its fiscal problems. The primary
challenge the district faces is reducing its expenditures to the
level that revenues will support. That challenge is exacerbated by
its steep and continuing decline in enrollment. In order to meet
that challenge, accurate and timely financial information will be
necessary. Therefore, it is imperative that the district:
• Project its finances over a longer, multiyear period in order to provide information
to develop a long-range plan to eliminate its structural operating deficit and repay
its state loan.
• Address pending issues related to documentation, training,
controls, and data integrity and completeness for the newly implemented human
resources/payroll system.
• Implement the position budgeting capabilities
of the new human resources/payroll system in order to ensure the accuracy of
budgeted personnel costs.
• Formally document all fiscal policies and procedures, particularly
those related to budget development and monitoring and financial accounting to
ensure the accurate projection of revenues and expenditures, and the correct
recording and reporting of financial information.
• Continue to improve budget controls and
monitoring to prevent budget overruns.
• Reduce special education encroachment, which is a
significant drain on the unrestricted general fund, while still meeting federal
maintenance-of-effort requirements.
• Implement internal control procedures that will
prevent or detect financial irregularities.
 GOALS AND OBJECTIVE OF
THE FINANCIAL MANAGERS
Financial which is the life wire of any business and as developed in 1900
since it concerns the actual flow of money as well as any claim against
money. The financial mangers subsequent decision is made in such more
co-ordinate manner responsible for the control system. The financial
managers are concern with;
(a)               Financial planning with the bank
(b)               Raising of fund
(c)               Allocation of fund
(d)               Financial controlling of fund
(e)               Interpretation
 FINANCIAL PLANNING
The involve he estimating and planning of the future flow of cash receipt and
disbursement raising of fund involve organizing the raising of fund which
involve the funding necessary for planning. The second is the acquisition of the
fund. There are a wide variety if the fund. It has certain characteristic as cost
maturity, availability. The encumbrance of asset and other terms exposed by the
capital.
On the bases of this function, the financial managers of a bank must determine
the best mix of finance for the banking industry. Therefore the financial
managers have to take the issue of formulation of policies. In the interest of
such policy is to plane, co-ordinate, motivate and control activities of the firm,
which are responsible of the efficient financial management of the resources.
An efficient financial management thus is the same as a valuable aid to the
process of decision-making and a major contributing to the pale and a major
contribution to the pale of economic. The principal responsibility of financial
managers involves a theory evaluation of investment financial and dividend
decision with the sole aim of maximizing wealth. The financial managers
studies the annalistically techniques and the environment where financial
decision are made.
      
The financial manager keeps accurate account and records of, preparing the cost,
providing the means for payment of bills, procuring additional in case of cash
needed. Investing fund in asset and procuring the bets means of financing in relation
to the overall development of the organization. The task of the financial manager is
invisibly faced with problem with those of profitability, liquidity and risk factor,
which influence both internal and external environment.
Only sound financial decision based on the analysis, planning and control of activity
therefore can help optimized the values of operational optimization of the profit and
shareholders wealth in one of those guiding.
Objective of business enterprise, which its allocation of resource and the financial
decision for the financial manager. The financial manager must be aware of sources
of finding the business and be guided by time, selection and combination of those
available. That is the financial manager dilemma and the principle of sustainability.
The financial managers dilemma is that of profitability and liquidity while
sustainability is the principle of time balancing with asset and liability that is using
short time term liability to financial short term asset and long term liability to
finance the long term asset.
 ALLOCATION OF FUND
Wise use of fund is allocating such fund in such project or such
venture that will yield optimal return ensuring efficient use of fund.
The financial managers ensure the efficient allocation of fund among
the various uses. The allocation must be in accordance with the
underlying objective of the firm to maximize the profit in the
customer’s wealth. The role of financial manager has expanded of the
management of the working capital to long-term asset and liabilities.
He is concern with ways of efficient managing this current asset in
order to maximize efficient profitability relative to the amount of fund
tied up in the asset
 
 FINANCIAL CONTROLLING
Financial monitor financial operation to ensure the cash flow are
proceeding according to the plane

INTERPRETATION
The bank is part of financial community. It financial management can be
fully interpreted only with the contest by he working of the financial
institution and the markets

ORGANIZATIONAL GOALS
Since this project is concern with the role of
financial managers in a cooperate organization, therefore, it is important to
note the goal of any financial.
Maximization of profit. This is the frequency encountered goals of any
business impact all business believed that as long as they are earning as much
as possible while holding down cost, they are archiving the goal of profit
maximization appears performance.
b. Maximization of wealth the main objective of financial management is the
maximization is accomplished by maximizing the sum of the present value of the
stream of dividends received and the present value of the increased in the market
values of the shares of stocks held by the shareholders. Thus, the apparent wealth
maximization is the best economic objective shareholders as the owns and for the
bank whose primary interest is to customers own. The environmental scope of
financial manager in executing their job, Financial managers do not have absolute
authority in carrying out their responsibilities their actions are constrained by certain
factors beyond their control

THESE FACTORS ARE DIVIDED INTO TWO

• Internal environment factor the principal factor in this case is the unavailability or
the lack of human resources and the organizational self imposed standard.
• B.  The external environment factor such as the political legal framework cultural
and social values, the economic climate, technological trends and custom
attitude .It is therefore imperative that financial manager should take cognizance
of environmental factors that affect their decision.
 
1.1 STATEMENT OF PROBLEM
There has been unprecedented increase in the quest for the answer of the
following questions posed in order to clarify the duties of financial manager, which
is the prospective rank of a student studying finance. Financial managers do not
have authority in carrying out their responsibilities their responsibilities their
actions are constrained by certain factors beyond their control. These factors can be
divided into two Internal environment factor .The principal factor in this case. The
[rinc9ipal factor in the case is the unavailability of human resource and the
organization self imposed standard. The external environment factor such as the
political legal firm work. Culture and social value. The economic climate
technological trends and the customers’ attitude. It is therefore imperative that
financial managers take cognizance of the environmental factors that effect their
decisions.

There has been unprecedented increase in the quest for the increase for answer for
the following questions posed in order to clarify the duties of a financial manager,
which is the prospective rant of studying finance.
What is managerial finance? How importance is the financial functions for the
company. Are the financial mangers responsible for the performance of certain
task? Dose this means that his action are design to accomplices specific goals.
How and when did the financial archive the firm objective, which is the finical
managers definition of the fare price, and how is it related to his firm return and
investment capital. One may logically ask, why are we interested in this cash flow
if they do not affect the profit. Why cannot the profit effect not be taking directly
not the account in the analysis? What tools and techniques are available to him and
how dose he goes about managing his own performance. On a general scale, do
they have any operational meaning? That is how can managers operation use to
further national goals. Having identified these questions, the provision of possible
answers to the listed question constitutes areas of possible consideration of the
project. As stated that the financial management must find a rational base for
answering the following three questions;
(a)  How large should an enterprise be and how fast should it grow. What should be
the composition of its liability
(b)  What should be the composition of its liability
(c)   In what form should it hold it asset board decision.
1.2 SIGNIFICANCE OF THE STUDY
The purpose of this project: the role of finical management in cooperate organization,
is to equip the practicing, finical managers, financial controllers, and director of
finance, treasurers, student of financial studies and readers with a basic understanding
of financial decision. The financial manager carries out financial decision maximize
through the following;
(a)               Current asses management
(b)               Capital budget decision
(c)                Dividend decision
(d)               Financial decision

CURRENT ASSET MANAGEMENT

• The financial manager has every right to manage the long-term asset and also the duties to
manage the current assets, efficiently to safeguard the fund against liquidity or insolvency
• Investment in current affects the firm profitable liquidity and risk. If the firm doses not
invest sufficient funds in current asset, it may become illiquid. But it would less
profitability, as idle current assets would earn anything, in order to ensure that it would not
earn anything. In order to ensure that neither insufficient nor unnecessary funds are
invested in current asset, in fact it should develop sound techniques of managing the
current asset.
CAPITAL BUDGETING
It is investment decision of the firm to have its refund investment in long-term project
in anticipation of expected flow of future benefit over a period of years. This decision
could be either to mechanize a process, replace a machine with another modern type,
selecting between machines, and induction of new product or business expansion.
These features are;
1] Investing current funds for future benefit
2] The period of inc=vestment which involves long term activities
3] The potential benefit, which will accrue to the firm over a period of time.

DIVIDEND DECISION
The finical manager must determine the optimum dividend  - payment ratio. He
should consider the questions of dividend stability, stock dividend and cast
dividends. Financial manager must divide whether the firm should distribute all
profit or retain the balance.
1.3 RESEARCH HYPOTHESIS
Base on the certain theoretical assumptions, hypothesis will be formulated below.
There theoretical assumption, which include the established fact that the level of
investment firms undertake and as such, the level of dept end by firms. Investment
involve additional rest or financial assets and is usually measured in terms of fund
used in the process, this funds include both equity and debt.
• Ho: the level of debt financing has a negative effect on the economy
• Hi: the level of financial has a positive effect on the economy
• Ho: the level of debt financing has a positive effect on the performance of the
employee
• Hi: the level of debt financing has negative effect on the performance of the
employee 
• Ho: the level of debt financing has not positive effect on the productivity of a firm
• Hi: the level of debt financing has a positive effect on the productivity of the firm.
1.4 LIMITATION AND DELIMITATION OF THE STUDY
The research, may not fail to expose some of the constraint or restriction we have
encountered in collecting the material for the project. There is no gainsaying the unavailability of
textbook in this field of study especially in developing country like is a different.
Hence, in spite of the fact that the published financial statement by this banks are really seen, they
are equally not comprehensive as regards the needs of a researcher. Some important information is
not usually available for further information cannot be overemphasizing. Some claim the
compliance with their management policies not to disclose some vital information to the public. It
is a known fact that most banking industries had their headquarters in Lagos and it is where most
decision are taking. Reading on this fact, the questionnaire sent to some of the industries could not
come back due to the irregularities in our communication system.
However, therefore the firm (union bank Plc Enugu) was referred to after the researcher might have
compared the information available to him in the respective banking industry that cooperate with
him within the locality.
Union bank Nigeria Plc started operation in the year 1917. Union bank if Nigeria Plc Enugu has
five (5) branches in Enugu
1.5 DEFINITION OF TERMS
The general ideal of this work “ The role of financial manager in a
corporate organization looks into the following perspectives;
Chapters one give the general explanation of the subject from the historical
perspective, organizational goals, and statement of problem, goal and
objectives.Significance of the study and limitation and limitation and research
hypothesis
Chapter tow – literature review from the general. Overview, financial ratio and
profit planning management of current asset, budgeting and investment and
management of current asset, budgeting and managing the financial and
management of short and medium term.
The financial management involves all activities of the financial manager
concerned with raising of capital, planning cash an credit requirement including the
effective of the control system as the financial recourses. The activities could be
selected as follows (a) converting forecast into planes and budget
(b) Planning the appropriate capital structure
 Nature and Main areas of financial
management
Financial management is broadly concerned with the mobilization and
development of funds by a business organization. To run the operations of company
efficiently, it is important to raise and handle the funds effectively. Financial
management performs this job.
Financial management works on the following areas:
1.Finding financial necessities: -
A financial manager must know financial necessities of the company. He should find
out financial needs of the company. Financial manager must focus on available funds
which are needed to meet promotional expenses, fixed and working capital needs. The
necessity of non-current assets is related to types of company. Working capital needs
mainly depends on the range of business operation. If the range or scale of business
operation is large then there quirement of working capital will be high. If the financial
manager makes wrong assessment about financial necessities, it may cause huge
damage to the company.
2.Selecting the sources of funds:-
Financial management works on how to raise funds from various sources for the
company. Various sources may be available for raising funds. To issue of share
capital and debentures proper steps should be taken. Financial management should
ask various financial institutions to provide long-term funds. Equity capital
necessities may be met by getting cash credit or overdraft facilities from
commercial banks. A financial manager should be very cautious in approaching
different sources to raise funds. Financial management should analyze the sources
before raising funds

3.Managing working capital:-

Working capital indicates to that part of company’s capital which is needed for
financing short-term or current assets such as cash, receivables and inventories.
Maintaining these assets to a proper level is very essential for the organization.
Finance manager is required to determine the amount of such assets.
4.Financial analysis and interpretation:-
One of the most important tasks of financial management is analyzing &
interpretation off in ancial statements. Financial management expected to focus
on the short term and long-term financial position of the company. Profitability,
liquidity position of the company should also be monitored by financial
management. Financial manager can do this by calculating a number of ratios.
Making interpretation of various ratios is also essential to draw certain out come.
Financial analysis and interpretation has become an important area of financial
management in modern days.
5.Cost-volume profit analysis:-
Cost volume profit is also popularly known as CVP relationship. Cost volume
profit analysis is a very important area of financial management. Fixed costs,
variable and semi variable cost analysis is crucial for CVP or Cost-volume profit
calculation. Fixed costs are more or less constant for varying sales volumes.
Variable costs depend on the sales volume. Semi-variable costs can be fixed or
variable in the short-term. The financial manager has to make sure that the
income of the firm will cover its variable costs, for there is no meaning in being
in business, if the expected amount of income is not accomplished. A company
must have to earn a sufficient income to cover its fixed costs as well. Finding the
break-even point is one of the major responsibilities of financial management.
6.Dividend policy:-
Dividend is provided by company to the shareholders for making investment in the
shares of the company. The investors mainly interested in earning the maximum
return on their investments .On the other hand management wants to retain the
profits for making reinvestment in future projects and opportunities. These
contradictory purposes will have to be adjusted in the interests of investors and the
company. The interest of shareholders and the necessities of the company are
related with the dividend policy, so that’s why dividend policy is an important area
of financial management.
7.Capital budgeting:-
To make investment decision in capital expenditure the concept of Capital budgeting
is essential. Capital expenditure is an expense the benefits of which are expected to
be achieved over a period of time exceeding one year. Capital expenditure is for
acquiring or improving the fixed assets. The benefits from capital expenditure are
expected to be received over a number of years in future. Capital budgeting
decisions are very important for any organization. Any bad or unplanned investment
decision may become harmful for the company. Capital budgeting is a very
important area of financial management.
 Business finance
Meaning of Business Finance:
According to B.O. Wheeler Meaning of Business Finance includes those business
activities that are concerned with the acquisition and conservation of capital funds in
meeting the financial needs and overall objectives of a business enterprise.”
Business is identified with the generation and circulation of products and services for
fulfilling of needs of society. For successfully doing any operation, business requires
money which is known as business finance. Therefore, funds are known as the lifeblood
of any business. A business would not function unless there is adequate money
accessible for use.
The capital contributed by the businessman to establish the business isn’t
adequate to meet the financial needs of the business. Consequently, the businessman
needs to search for an option to generate fundas. A research of the financial needs and
options to fulfill those needs must be done with a specific end goal to arrive at
effective financial management to maintain the business.
The fundamental necessities of business would be to buy a plant or apparatus, or it
could be to buy raw materials, development of a business that prompts more
enrollments, paying wages and so on. The money related necessities of a business
can be classified as follows:
1. Fixed Capital Requirement: In order to begin a business, money is required to
buy fixed assets like land, building, plant and machinery. This is called the Fixed
Capital Requirement.

2. Working Capital Requirement: A business needs funds for its day to day
activities. This is known as Working Capital Requirements. Working capital is
required for the purchase of raw materials, paid salaries, wages, rent, and taxes.
3. Diversification: A company needs more funds to diversify its activities
to become a multi-product company e.g. ITC.
4. Technology upgrading: Finances are needed to adopt the latest technology for
example use of particular software and the latest computers in business.
 Importance of Business Finances:

We now know the meaning of Business Finance, let us learn its importance.
Business finance is an essential requirement for the establishment of any
business. Money is actually the most important tool to bridge the gap
between production and sales. Let us take a look at some of the important
functions of business finances.
> We require business finances to meet certain contingencies and any
unexpected problems that may arise
> Necessary for the promotion of sales
>A requirement to avail any business opportunities that may present themselves
MANAGEMENT FUNCTIONS Overall, management embodies four functions:
- 1. Planning
- 2. Organizing
- 3. Directing/Motivating
- 4. Controlling

1. Planning:
Planning determines where the organization is going and how it will get there. It sets
organizational objectives and goals, forecasts the environment in which objectives
must be accomplished, and determines the approach by which objectives and goals
are to be accomplished. Planning is used to determine a policy and the procedures for
putting it into effect. Planning usually consider several alternatives. Each should be
judged on the basis of its economic or competitive effect and accompanying
problems. Also, it must be consistent with cooperative principles and the
association’s objectives. Planning helps a manager shape the future of the
organization rather than being caught in an endless trap of reacting only to current
crises or problems.
2. Organizing:
Organizing is concerned with determining the specific activities needed to
accomplish the planned objectives and goals; grouping the activities into a logical
pattern, framework, or structure; assigning the activities to specific positions and
people; and providing means for coordinating the efforts of individuals and groups.
Organizing is a bridge connecting the planned objectives to specific projects for
accomplishing these objectives.
3. Directing:
Directing through motivation concerns the people side of the organization.
Cooperatives are people-driven organizations, from the standpoint of both employees
and members. Managers must have leadership skills and be effective communicators.
The manager’s ability to influence members through leadership will help determine
the extent to which both individuals and the entire organization accomplish their
goals.
4. Controlling:
A manager spends up to 95 percent of the time communicating. Good
communication is essential to coordinating the organization’s human and physical
elements into an efficient and effective working unit. In controlling, management
monitors the progress of planned activities. If progress is lagging, necessary
adjustments are made. Controlling is the checkup part of a manager’s job.
ROLE OF MANAGEMENT :
Management combines ideas, processes, materials, facilities, and people to
effectively provide needed services to member-owners. Management is the decision-
making element of the cooperative. Broadly speaking, its role entails formulating and
executing operating policies, providing good service, maintaining financial soundness,
and implementing operating efficiencies to successfully meet its objects.
A successful cooperative is viable in an economic or business sense and
maintains or improves its cooperative character or features. A cooperative may
succeed as a business, but gradually lose its cooperative character regarding member
control, serving the needs of members,
and distributing net margins. Likewise, it may succeed for a while as a cooperative,
but fail as a sound business institution. Managing a cooperative is challenging and
difficult. It involves not only managing resources and business operations, as other
businesses, but also dealing with problems stemming from the cooperative’s
distinctive characteristics. Because the cooperative’s members are both owners and
patrons, special relationships and problems arise concerning member and board of
director roles and responsibilities. Seemingly conflicting answers to questions arise.
What’s different in managing a cooperative from any other type of business? The
answers can range from “all the difference in the world” to “none at all.
 In reality, managing a cooperative is different from other types of business as
‘Decision- making techniques are identical, but the cooperative’s objectives are
different; therefore, the manager’s conclusions will be different’.
Cooperative principles and objectives present a distinctly different managerial
premise. That premise is revealed in more detail through the following
perspectives an executive must acquire to be good cooperative manager:
 STATUTORY AUDIT OF CO-OPERATIVE
SOCIETIES
A Cooperative society is formed under the provision of Cooperative Act 1912. This act
is further amended by various State Governments. In Kerala the accounts of cooperative
institutions are maintained as per the regulations of ‘The Kerala State Cooperative Act of
1969’. Audit of accounts of these cooperative institutions is compulsory. Cooperative
Department of the state is the authority for conducting audit. From the point of view of audit,
cooperative societies are classified as A, B, C, D and E, according to the standard of efficiency
of management. It is the auditor who after examining all the aspects awards the classification.
The auditor has to submit the audit report to the Registrar. Under Sec. 63, 64, of the
Kerala Co-operative Societies Act 1969, the account of every society shall be audited at least
once in a year by the Registrar or by a person authorized by the Registrar by general or special
order. The Registrar shall audit or cause to be audited by a person authorized by him by
general or special order in writing the accounts of every society at least once in a year. Audit
shall include an examination of overdue debts if any, verification of cash balance and
securities and valuation of assets and liabilities of the society. The audit period in all cases be
extended back to the last date of the previous audit and shall be carried out up to the last date
of the cooperative year immediately preceding the audit. The result of audit shall be
communicated to the society within six months of the date of audit. Every society shall pay to
the Govt. such fee for the audit of the accounts for each ear as may be fixed by the Registrar.
 The auditor shall prepare and submit the audit memorandum in the prescribed
form with reference to the accounts examined by him and the balance sheet and
the final accounts for the period under audit. The audit memorandum shall contain
schedule with full particulars of the following matter.
1. Transaction contrary to the provision of act, rules and byelaws.
2. Amount which ought to have been lent have not been brought to the account.
3. Material irregularity of any in the expenditure or in the recovery of money due
to the society.
4. Bad or doubtful debts.
5. Audit classification statement in accordance with the instructions issued by the
Registrar from time to time.
6. Any other matter specified by the Registrar. Under Sec.64, the result of the
audit along with the defects in the working of the society should be brought to the
notice of the society with a direction to rectify the defects within the specified
time.
  CO-OPERATIVE AUDIT SERVES THE FOLLOWING PURPOSES:-

(1) The members of the Society are to be satisfied that the affairs of the society are
managed properly and on sound business principles. This is possible by the Co-
operative Auditor undertaking a detailed check of the voluminous transactions taking
place during the entire year and making a report of his findings as a result of this
check, to the members.
(2) A large number of societies borrow funds from outside. The creditors would be keen
to satisfy themselves of the financial soundness and credit worthiness of the society.
For this purpose they would depend upon the Co-operative Auditor’s report.
(3) A large number of persons are employed by Co-operatives for managing their
affairs. In order to ensure that there is proper check on efficiency and integrity of
employees, the managements would require a systematic and thorough check of their
accounts. This purpose is served by Co-operative Audit.
(4) Non-members who deposit their funds with the Co-operative Banks would like to
satisfy themselves that their funds are safe with the Bank, This is possible by the Co-
operative Auditor’s report.
  CONCLUSION
This project is poised at x-raying the degree of the role of financial
management in a co-operate organization making reference to union bank
(Plc) Enugu. Financial management activity is concern with the raising of
capital planning cash and credit control including the effective control of
financial resources. Some thought were giving to financial activity to provide
planning, control and execution of financial activity.
The practice management are interest in this subject because among the
most crucial decision of he firm are those which relates to the finance and
therefore need to understand the financial management which provide them
with conceptual and analytical insight to make these decision. The financial
must take step to ensure that fund will be actually available and committed to
the firm. The financial manager is usually responsible of he gathering and
analyzing of the relevant information, making forecast of the profit level to
estimate profit from the future sale, the firm must be aware of the current cost
and the most likely changes in the ability of the firm to sale its product as
planned
 The financial manager must measure the requirement return of its capital
investment by answering this questions; dose the level of return offer adequate
justify and that Of risk therein? H e is required to know the rate of return that is
expected from the proposal before it is accepted.
The financial personnel meet with other officer of the form and anticipate in
making decision affecting the current and future utilization of the fund resource.
The manager will discuses the total amount of asset needed by the firm to carry out
its operation and determine the decomposition on need. They identify ways to use
the existing asset mostly effectively and thereby reducing waste and needed
expense. The decision making role cause liquidity and profitability
The role of financial management in managing the funds available o the firm. The
fund include cash held by the firm, money borrowed and money gained from the
Purchase of common stock and preferred stock.
The financial management is responsible for having sufficient for the firm to
conduct its business and pay its bill and a lot of money to finance the receivable
and invention making arrangement for the purchase of asset and identify sources of
long term financing, in fact this study is aimed at the information on the role of
financial manager in any organization to foster his performance in the following.
Working credit capital. Stock cash receivable market and structure medium short and
long term success of fund and evaluation of stock and cost of capital financing.
Divided policy and techniques of r capital investment analysis.
THANK YOU