CHANGING ROLE OF FINANCE MANAGERIn the last few years especially when liberalization took place in1991, the financial environment had changed drastically and hasaltered in many ways. And so the role of Finance Manager hasalso changed.The important changes which took place are1. The industrial licensing frame work has been considerably relaxed.2. The monopolies and Restrictive Trade Practices (MRTP) Act has been virtually abolished.3. The Foreign Exchange Regulation Act (FERA) has been liberalized substantially and has been renamed as Foreign Exchange Management Act (FEMA).4. Considerably freedom has been given to companies in pricing their equity issues.5. The investor have become more demanding and analytical.6. The system of cash credit has been largely replaced by a system of working loan?7. A number of new investment opportunities in the money market.The above changes have made the role of the finance managermore important, complex and demanding.Bharat Banargee, “Duncan” Group:“Finance Manager is no longer referred as “My Accountant”now he is a part of Top Management”
Anand Rathi of “Indian Rayon”:“Earlier it was a supportive function now it is main line”Bhashar Mitter Corporate Finance Director of “ITC”:“Finance has an important role and tremendous challenge toshape their organization. A challenge to upgrade accountingpractice, improve reporting system, use international market forsourcing finance, operate in FOREX market, support and helpcompanies to compete internationally”N. Gopal Krishna of “Shriram Pipes”:The finance managers job has become more creative and liberalrather than fast suggling with figureHemant Luthra of “Ballarpur Industries”:The Finance Manager tells the management where it shouldincrease its presence and where it should get out from.Thus today the key challenges of Finance Manager cover thefollowing areas.1. Investment Planning2. Financial Structure Planning3. Treasury Operation4. Foreign Exchange5. Investor Communication6. Management ControlConcludingly we can say that the finance sector will gather paceand will go on increasing.