WELCOME

FINANACAL MANAGEMENT

TOPIC

IntroductionFinance

Finance may be defined as an art & science of managing money.

The major areas of finance are,

Financial Services

Financial Management

Financial Services

Financial services are economic servicesprovided by finance industry. Financeindustry encomposses of

• Bank

• Stock brockerages

• Credit card companies

• Govt. sponsered enterprises

Financial Management

• Financial management is the application of planning & control function to the finance function.

• It concern with duties of financial managers in the business firm.

• They manage the financial affairs of any types of business.

Scope of Financial ManagementFinancial management provides a conceptual &

analytical frame work for financial decision

making. Scope of financial management includes,

• Anticipation

• Acquasition

• Allocation

• Appropriation

• Assessment

Anticipation : Financial management estimates the financial needs of the company. That is it find out how much finance is required.

Acquisition : It collects finance for the company from different sources.

Allocation : It uses this collected finance to purchase fixed & current assets for the company.

Appropriation : It divides the

company’s profits among the

shareholders, debenture holders

etc. It keeps a part of the profit as

reserves.

Assessment : It also controls all

financial activities of the company

such as production management,

marketing management, personnel

management.

Financial Management & Economics

• Economic concept like macro &

micro are directly applied with

financial management approaches.

• Investment decisions, micro &

macro environment factors are

closely associated with financial

management functions.

Financial Management & Accounting

Accounting records includes

the financial information of

business concern.

In olden days both financial

management & accounting

have same discipline.

Now it was merged with

management accounting & it is

very helpful for decision

making.

Financial Management & Mathematics

• Financial management is applied in mathematical,

statistical tools & techniques. They are also called as

econometrics.

• Various statistical mathematical tools are,a) EOQ

b) Ratio Analysis

c) Present Value Of Money

d) Discount factor

e) Working Capital Analysis

f) Capital Structure

g) Time Value Of Money

h) Cost Of Capital

Financial Management & Production Management

It is the operational part of the

business concern which helps to

covert the money into profit.

Profit of the concern depends

upon the production

performance.

Financial Management & Marketing

Finished goods are sold in the market with

new innovations & modern approaches.

For this marketing department needs finance

to meet their requirements.

Financial Management & Human Resources

It provides human

resources or man power

to all functional areas of

management.

Presented By,

AHANA S DARSAN