2. Agenda
• Who is Financial Manager
• Primary Function
1. Investment Decision
2. Financial Decision
3. Dividend Decision
• Other Functions
3. Who is Financial Manager?
• Financial managers are responsible for
the financial health of an organization.
They produce financial reports, direct
investment activities, and develop
strategies and plans for the long-
term financial goals of their organization.
5. Financial Analysis & Planning
• It refers to an assessment of :
• Profitability
• Solvency
• Liquidity
• Stability
6. Method of Financial Analysis
• Past Performance
• Future Performance
• Comparative Performance
7. Investment Decision
It is the process of Planning &
Management of Long & Short term
Investment of an organization.
It involves Risk
8. Financial Decision
The important decision which finance
manager has to take is deciding source of
finance. A company can raise finance from
various sources such as by issue of shares,
debentures or by taking loan and advances.
Deciding how much to raise from which
source is concern of financing decisions
10. Dividend Decision
• This decision is concerned with
distribution of surplus funds. The profit
of the firm is distributed among various
parties such as debenture holders,
shareholders etc.
• The surplus profit is either distributed to
equity shareholders in the form of
dividend or kept aside in the form of
retained earnings.
12. • THE HISTORY OF FAILURES OF
ORGANISATIONS IS INTERESTING. MANY
FIRMS HAVE FAILED, NOT BECAUSE OF
INEFFICIENCY OF PRODUCTION, INABILITY IN
MARKETING OR NONAVAILABILITY OF FUNDS
BUT DUE TO THE ABSENCE OF COMPETENT
FINANCE MANAGER
