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FINANCIAL MANAGEMENT
Financial management refers to that branch ofFinancial management refers to that branch of
management which is concerned with the effectivemanagement which is concerned with the effective
acquisition and use of money.acquisition and use of money.
Determination
of fixed assets
Detrmination
of current
assets
Determination
of various
items of P&L
A/c
Determination of
proportion of long
term and short
term finance
Determinatio
n of
proportion of
various long
term assets
Role of
financial
magement
OBJECTIVE OF FINANCIAL MANAGEMENT
Wealth maximisation -- Wealth maximisation means to
increase the capital invested by the shareholders.
Shareholder’s Wealth = number of shares * market price per share
Financial planning
It refers to the preparation of financial blueprint of an
organisation’s future operations.
Process of financial planning
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Financial Management Essentials

  • 2. Financial management refers to that branch ofFinancial management refers to that branch of management which is concerned with the effectivemanagement which is concerned with the effective acquisition and use of money.acquisition and use of money. Determination of fixed assets Detrmination of current assets Determination of various items of P&L A/c Determination of proportion of long term and short term finance Determinatio n of proportion of various long term assets Role of financial magement
  • 3. OBJECTIVE OF FINANCIAL MANAGEMENT Wealth maximisation -- Wealth maximisation means to increase the capital invested by the shareholders. Shareholder’s Wealth = number of shares * market price per share
  • 4.
  • 5. Financial planning It refers to the preparation of financial blueprint of an organisation’s future operations. Process of financial planning