Ycitx

1. Prepared by
Suby A John
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2. • Traditionally procurement of funds
• Modern terms it is associated with procurement till
allocation of funds to maximize profits
• In short Financial management is reducing cost of capital
and maximizing the profits
Introduction to FIS
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3. • Long Term Sources
– Debentures, Bond, Equity etc.
• Short Term Sources
– Bank Borrowings
Procurement of funds
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4. • Done in both long term assets and short term assets
• Proper utilization leads to proper allocation of funds
– In return yields maximum profits
• To perform these functions financial manager has to
perform certain activities
– Cash Management
– Investment Management
– Capital Budgeting
– Financial Planning
Requirement of proper allocation of funds
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5. Financial
Management
Cash
Management
Investment
Management
Capital
Budgeting
Financial
Planning
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6. • Important task of finance manger
– Forecasts the requirements of cash
– And procure the funds required
• There should be neither shortage nor Idle cash left
– Shortage damages credit worthiness
– Idle shows the improper utilization of funds
Cash Management
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7. • Collects information on all cash receipts and payments
– Periodical basis
– On line information
Cash Management System
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8. Investment Management
• Proportion of different securities to be kept in the business.
• Depending upon the policies short term investments may be
done
• Portfolio management softwares to retrive the information
in this regard
• Financial managers develops an optimum portfolio
– Minimises the risk and maximies the profits
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9. Capital Budgeting
• Invetsments decisions in capital expenditure
• Have long term perspective
• Fin manager access the various projects with varied
techniques
• Computerized Capital budgeting system use heavy spread
sheet model
– Analysis of risk, PV analysis, determining optimum mix of
capital
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10. Financial Planning
• Concerned not only with how best to finance new asset but
also with best overall mix of financing
• Fin analysts use electronic spread sheet and financial
planning software's to evaluate the projected financial
performance of the business
• Uses financial forecasting concerning
– Economic situation interest rates, finance availability
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11. • Financial information system
• Sources of procurement of funds
• Allocation of funds
– Cash Management
– Investment Management
– Capital Budgeting
– Financial Planning
FIS @ a glance
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12. Thank you :)
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