The document discusses the meaning, objectives, principles and factors affecting financial planning. It defines financial planning as deciding the future course of action for financial management. The objectives of financial planning are to determine financial resource needs, forecast internal and external funding sources, establish financial controls and analyze operational results. Principles include adequate funds, balancing costs/risks, flexibility, simplicity, long-term view and profitability. Factors affecting plans are costs, risks, repayment dates, asset claims, needs and regulations. It also discusses estimating long-term and short-term financial needs like fixed assets, working capital, and limitations of financial planning.

2. Meaning Financial planning is deciding in advance the course or line of action for the future in respect of the financial management of the firm. Financial plan is statement estimating the amount of capital and determining its composition. The quantum of funds needed will depend upon the asset requirements of the business. It highlights on the pattern of financing. It spells out the policies and the time of floatation of various corporate securities.