This document provides an introduction to financial management and related topics. It defines finance and identifies the major areas of finance as financial services and financial management. Financial management is the application of planning and control to finance functions and concerns managing finances for any type of business. The scope of financial management includes anticipating needs, acquiring funds, allocating funds, appropriating profits, and assessing financial activities. Financial management is closely related to economics, accounting, mathematics, production management, marketing, and human resources.

1. WELCOME

2. FINANACAL
MANAGEMENT
TOPIC

3. Introduction
Finance
Finance may be defined as an art & science of
managing money.
The major areas of finance are,
 Financial Services
 Financial Management

4. Financial Services
Financial services are economic services
provided by finance industry. Finance
industry encomposses of
• Bank
• Stock brockerages
• Credit card companies
• Govt. sponsered enterprises

5. Financial Management
• Financial management is the
application of planning & control
function to the finance function.
• It concern with duties of financial
managers in the business firm.
• They manage the financial affairs of
any types of business.

6. Scope of Financial Management
Financial management provides a conceptual &
analytical frame work for financial decision
making. Scope of financial management includes,
• Anticipation
• Acquasition
• Allocation
• Appropriation
• Assessment

7.  Anticipation : Financial management
estimates the financial needs of the
company. That is it find out how much
finance is required.
 Acquisition : It collects finance for the
company from different sources.
 Allocation : It uses this collected finance
to purchase fixed & current assets for the
company.

8. Appropriation : It divides the
company’s profits among the
shareholders, debenture holders
etc. It keeps a part of the profit as
reserves.
Assessment : It also controls all
financial activities of the company
such as production management,
marketing management, personnel
management.

9. Financial Management &
Economics
• Economic concept like macro &
micro are directly applied with
financial management approaches.
• Investment decisions, micro &
macro environment factors are
closely associated with financial
management functions.

10. Financial Management &
Accounting
Accounting records includes
the financial information of
business concern.
In olden days both financial
management & accounting
have same discipline.
Now it was merged with
management accounting & it is
very helpful for decision
making.

11. Financial Management & Mathematics
• Financial management is applied in mathematical,
statistical tools & techniques. They are also called as
econometrics.
• Various statistical mathematical tools are,
a) EOQ
b) Ratio Analysis
c) Present Value Of Money
d) Discount factor
e) Working Capital Analysis
f) Capital Structure
g) Time Value Of Money
h) Cost Of Capital

12. Financial Management & Production
Management
It is the operational part of the
business concern which helps to
covert the money into profit.
Profit of the concern depends
upon the production
performance.

13. Financial Management &
Marketing
Finished goods are sold in the market with
new innovations & modern approaches.
For this marketing department needs finance
to meet their requirements.

14. Financial Management & Human
Resources
It provides human
resources or man power
to all functional areas of
management.

15. Presented By,
AHANA S DARSAN