about financial management and its objective and importance of financial management in companies

1. FINANCIAL MANAGEMENT

2. INDEX
 Meaning of Financial Management
 Objective Of Financial Management
 Types of Financial decisions in Financial Management

4. FINANCE
Money or Funds
Like a blood of body

5. Management of finance to achieve
organizational objectives
Financial
Management ….?

6. Financial management
Financial management is that managerial activity which is concerned with
the management of all activities related to finance in a firm of firm’s Financial
resources keeping in consideration its financial objectives.

7. Management activities
Forecasting Planning Organisation
Directing
Coordinating
Controlling

8. Objectives of Financial Management
 Maximization of shareholders wealth .
 Wealth maximization.
 Maximise valueof firm.

9. Activities
related to
finances in
a firm
Acquisition of financial
resources
Procurement of
Funds
Application of
financial resources
Effective utilisation or use of these fund
to achieveBusiness objectives.

10. FINANCIAL MANAGEMENT
Management of finances to achieve
organizational objectives
Financial management is concerned with
the FORECASTING, PLANNING, DIRECTING,
COORDINATING AND CONTROLLING of all
activities related to acquisitionand
application of financial resources of a firm so
that value of firm can be MAXIMISED.

11. TYPES OF FINANCIAL DECISIONS
Finance
Management
Financial management

12. TYPES OF Financial management
INVESTMENT DECISION FINANCIAL DECISION DIVIDEND DECISION
Where to invest the money or
funds.
Number of assets or
projects .
Select the Best asset or
projects for investment.
From where to get money
or finance
Number of options such Equity
share , preferences
share,debenture, Banks.
Decide the best
means of financing
How much profit to
distribution amongst the
shareholders
100% as dividend
100% retention part
as dividend
Select the dividendpart

13. Target of finance Decisions
Decisions taken with the objectiveof maximizing
shareholder’s wealth
INVESTMENT
DECISION
FINANCIAL
DECISION
DIVIDEND
DECISION
Optimum
utilisationof
funds
Optimum
capital
structure
Distributionof
earnings to
satisfy
shareholders