Ppt

1. Information Systems for
Financial Analysis
&Planning
SUBMITTED TO : MRS SHEELA NARANG
SUBMITTED BY: NIKITA MALIK

2. Introduction to FIS
• 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.

3. Procurement of funds
• Long Term Sources
– Debentures, Bond, Equity etc.
• Short Term Sources
– Bank Borrowings

4. Requirement of proper allocation of funds
 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

5. Financial planning and analysis:

6. Cash Management
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

7. Cash Management System
 Collects information on all cash receipts and
payments
– Periodical basis
– On line information

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

9. Capital Budgeting
 Invetsments decisions in capital expenditure
• Have long term perspective
• Finance 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

10. Financial Planning
 Concerned not only with how best to finance new asset but
also with best overall mix of financing
 • Finance 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

11. THANK YOU!