This document provides an introduction and overview of financial planning. It defines financial planning as estimating financial requirements, determining capital structure, and estimating financial policies to effectively utilize funds. The objectives of financial planning are determining capital requirements, setting the capital structure through sources of financing, and determining financial policies regarding cash, lending, and borrowing. Financial planning is important for ensuring adequate funds, maintaining stability between cash inflows and outflows, attracting investors, enabling growth, and reducing uncertainties. The advantages include forecasting cash flows, raising financing, cost control, and optimal fund utilization, while the disadvantages include lack of coordination, inflexibility, inaccuracy, uncertainty, and high costs.

1. Introduction to
financial planning
• JITENDER DHALIA

2. Overview of
financial
planning
Meaning
Objectives
Importance
Merits and demerits

3. financial planning is an important function of
financial management[FM]. function is
performed has to be performed by business big
as well as small.
Similarly ,any company/business must perform
this function is carefully because its is concerned
with the procurement and effective utilization of
funds.
Financial planning is important for firm in order
to achieve their predetermined goals in an
efficient and effective manner.
MEANING OF FINANCIAL PLANNING

4. Broader concept of financial planning
Estimating the financial requirement
of business.
Determination of capital structure.
Estimating the financial policies.
Effective utilisation of funds.

5. Objective of financial planning
 Determination of capital requirement:- short
term=working capital[day to day] requirement and long
term=fixed capital requirement[tangible assets etc.].
 Determination of capital structure:- determination the
proportion in which finance will be raised from various
sources of finance[shares, debenture etc.] and to decide
take balance of debt equity ratio.
 Determination framing the financial polices:- it regards
for cash control,lending,borrowing etc.].
 Effectives utilization of funds:- cost minimization and
return maximization, efficient and effective manner.

6. Importance of financial planning
1. Adequate funds have to be ensured.
2. Financial Planning helps in ensuring a reasonable balance between outflow and
inflow of funds so that stability is maintained.
3. Financial Planning ensures that the suppliers of funds are easily investing in
companies which exercise financial planning.
4. Financial Planning helps in making growth and expansion programmes which helps
in long-run survival of the company
5. Financial Planning reduces uncertainties with regards to changing market trends
which can be faced easily through enough funds.
6. Financial Planning helps in reducing the uncertainties which can be a hindrance to
growth of the company. This helps in ensuring stability and profitability in concern.

7. Advantage and Disadvantage of financial planning
Forecast of cash flows
Raising finance
Facilitate of cost control
Measuring required returns
Managing assets
Managing costs
Managing funds
Miscellanies importance
Simplicity
Flexibility
Liquidity
Optimum utilization of funds
Risk and return
Lack of coordination
Inflexibility
Not accuracy
Uncertainty
Costly/expensive
Time consuming

8. Thankyou