functions

2. Finance
• Personal
• Corporate Trading, Manufacturing, FIIS
• Public Finance
• International Financial Management
Financial Management can be defined as management of flow of
funds. It is procurement of funds in most economic manner and
employment in most optimum way to maximize return to the
shareholders.

3. Scope/Importance/Managerial Function
Estimating Financial Requirement
Investment Decision- Capital Budgeting & Working Capital Management
Financing Decision
Dividend Decision
Managing Capital Structure
Management of Cash
Negotiation
Financial Control
Analysis and Appraisal of financial statements
Advice to top Management
Tax Administration

4. Routine Function
• Supervision of Cash receipt and payment & safeguard of Cash
Balance.
• Custody & Safeguarding of securities
• Record keeping
• Taking care of mechanical details of new outside Financing.

5. Traditional and Modern Phase of Financial
Management
• Finance upto1950 and after1950
• Traditional Phase:
Part of Economics
Operational Activities
Episodic procuring and utilisation of funds
Institutional Financing or outsiders point of view
Suppliers point of view
Only long term sources –Equity ,Debt
Descriptive not analytical

6. Modern Function
• Theory of Portfolio management
• Theory of Leverage
• Theory of option valuation
• Theory of capital structure