Chapter 1 Introduction to Financial ManagementSafeer Raza
Chapter 1 of Financial Management by Van horn
Introduction to Financial management
Topics
Introduction
What is Financial Management
Investment Decision
Financing decision
Asset management Decision
Goal of the firm
Value creation or profit maximization
wealth maximization
Agency problems
Corporate Social Responsibility
Corporate governance
Organization of the financial management function
Expanding credit lines article 1
For recovering companies, additional financing for working capital increases would be necessary, but increasingly difficult to come by at reasonable interest rates. During the recession, bank loan commitments were reduced, while mounting losses were financed by utilizing availability under the working capital line of credit. As the economy recovered, liquidity was much tighter while availability was lower. Companies did benefit from the fact that the recovery was slow and, therefore, rapid working capital requirements often associated with growth did not materialize. Ultimately, the recovery has led to companies needing expansion capital but finding it hard to come by. Many companies facing this exact situation have turned to MorrisAnderson to discuss ways to improve liquidity and availability for credit. The squeeze on expansion financing was particularly difficult for companies that had recently experienced poor results and earnings, but had turned the corner and were trying to expand. The issue for lenders, of course, is that, in order to accurately approve a company for expansion financing, they needed to gain a holistic look at the company's past performance and projections for future growth to understand both the benefits and risks involved in expanding credit lines. Starting in 2008 or 2009, financial institutions began consolidating and being much more stringent and selective in the expansion financing process - doing so because the demand for capital was plentiful, regulation was heightened, while the credit risk was increased. As a result, many lenders needed to determine - particularly with accuracy -whether a potential borrower was economically stable enough to have its lines of credit increased. Lenders have frequently turned to turnaround restructuring firms to help with distressed clients (from The Secured Lender's October 2009 issue, "Restructuring and workout consul
THE SECURED LENDER OCTOBER 2013 29
tants are still finding their hands full as lenders pull them in to help with troubled clients") but also for independent assessments on the ins and outs of a company's expansion plans and provide guidance on financing options.
Considerations for Expansion Financing: A Checklist It's essential to regularly assess a company's issues, opportunities and overall viability. When assessing expansion financing and lending options, consider the following checklist: > What are the company's specific expansion plans and projected timeline? I What are the financial projections? > What is the projected cash flow? I What are the capital expenditures and projected timing on return on investment? > When does the company expect to realize profitability? > Does the company have a solid base from which to expand? I Will the company be able to maintain a high level of quality products/services? t What resources are being dedicated to product and process improvement? > Will management be able to maintain control duri.
Chapter 1 Introduction to Financial ManagementSafeer Raza
Chapter 1 of Financial Management by Van horn
Introduction to Financial management
Topics
Introduction
What is Financial Management
Investment Decision
Financing decision
Asset management Decision
Goal of the firm
Value creation or profit maximization
wealth maximization
Agency problems
Corporate Social Responsibility
Corporate governance
Organization of the financial management function
Expanding credit lines article 1
For recovering companies, additional financing for working capital increases would be necessary, but increasingly difficult to come by at reasonable interest rates. During the recession, bank loan commitments were reduced, while mounting losses were financed by utilizing availability under the working capital line of credit. As the economy recovered, liquidity was much tighter while availability was lower. Companies did benefit from the fact that the recovery was slow and, therefore, rapid working capital requirements often associated with growth did not materialize. Ultimately, the recovery has led to companies needing expansion capital but finding it hard to come by. Many companies facing this exact situation have turned to MorrisAnderson to discuss ways to improve liquidity and availability for credit. The squeeze on expansion financing was particularly difficult for companies that had recently experienced poor results and earnings, but had turned the corner and were trying to expand. The issue for lenders, of course, is that, in order to accurately approve a company for expansion financing, they needed to gain a holistic look at the company's past performance and projections for future growth to understand both the benefits and risks involved in expanding credit lines. Starting in 2008 or 2009, financial institutions began consolidating and being much more stringent and selective in the expansion financing process - doing so because the demand for capital was plentiful, regulation was heightened, while the credit risk was increased. As a result, many lenders needed to determine - particularly with accuracy -whether a potential borrower was economically stable enough to have its lines of credit increased. Lenders have frequently turned to turnaround restructuring firms to help with distressed clients (from The Secured Lender's October 2009 issue, "Restructuring and workout consul
THE SECURED LENDER OCTOBER 2013 29
tants are still finding their hands full as lenders pull them in to help with troubled clients") but also for independent assessments on the ins and outs of a company's expansion plans and provide guidance on financing options.
Considerations for Expansion Financing: A Checklist It's essential to regularly assess a company's issues, opportunities and overall viability. When assessing expansion financing and lending options, consider the following checklist: > What are the company's specific expansion plans and projected timeline? I What are the financial projections? > What is the projected cash flow? I What are the capital expenditures and projected timing on return on investment? > When does the company expect to realize profitability? > Does the company have a solid base from which to expand? I Will the company be able to maintain a high level of quality products/services? t What resources are being dedicated to product and process improvement? > Will management be able to maintain control duri.
6 Efficient Ways to Reduce Small Business DebtCreditQ1
Reducing debt enhances business focus, promoting financial stability. Embrace Small Business Debt Solutions with CreditQ to ensure fiscal health, enabling effective management and unlocking growth opportunities for sustained success.Explore more @ https://creditq.in/post/strategic-financial-growth-small-business-debt-solutions-and-investment-insights/
6 Efficient Ways to Reduce Small Business DebtCreditQ1
Reducing debt enhances business focus, promoting financial stability. Embrace Small Business Debt Solutions with CreditQ to ensure fiscal health, enabling effective management and unlocking growth opportunities for sustained success.Explore more @ https://creditq.in/post/strategic-financial-growth-small-business-debt-solutions-and-investment-insights/
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
2. Finance
Finance is the study of money
management, investments, and
financial markets.
It deals with how individuals,
businesses, and governments
allocate their resources over time. In
today's world, finance plays a crucial
role in shaping our economy and
society.
From managing personal finances to
making strategic business decisions,
understanding finance is essential for
success in any field.
3. Why Financial Management Matters
• Financial management is crucial for individuals
and organizations alike. It allows us to make
informed decisions about our money, plan for
the future, and avoid costly mistakes. Without
proper financial management, we risk falling
into debt, missing out on opportunities, and
failing to achieve our
4. Individuals
• For individuals, financial management means
being able to
• save for retirement,
• pay off debts, and afford the things we need
and want in life.
• It also means being prepared for unexpected
expenses, such as medical bills or car repairs
5. Organisations
• For organizations, financial management
means being able to invest in growth, manage
cash flow, and stay competitive in the market.
It can mean the difference between success
and failure.
7. Byjus Troubles Have Made Edtech A
Stigmatised Word
Investors have already increased scrutiny as they focus on profitability,
unearthing questionable practices at India's privately held tech-backed
ventures like GoMechanic and Mojocare. They will be even more selective
now.
Byju's, once the poster boy of India's online coaching industry, is now in the
spotlight for weak corporate and financial governance, debt default, searches
by the Enforcement Directorate and a potential a probe by the Ministry of
Corporate Affairs.
To ensure its long-term survival, he said, Byju's must effectively address the
legal loan battle, manage its financial obligations, rebuild investor confidence,
and sustain its position in the competitive edtech market. "Byju's will need to
navigate these challenges skillfully to overcome them and secure a viable
future."
8. Money matters for Byjus – financial
management
• Byju's faces deadline for $40 million payment. Byju's has until July 10 to pay $40 million in interest
on a term loan it raised in November 2021. The company has been struggling to raise funds due to
the recent economic downturn, and it is unclear if it will be able to make the payment.
• Byju's begins another round of layoffs; to impact 500-1000 employees. Byju's has begun another
round of layoffs, which is expected to impact 500-1000 employees. The layoffs come as the
company is facing financial difficulties and is trying to cut costs.
• Byju's auditor Deloitte Haskins resigns citing delay in FY22 financial statement. Deloitte Haskins, the
auditor of Byju's, has resigned citing the delay in the company's FY22 financial statement. The
resignation comes as Byju's is facing scrutiny from investors and regulators over its financial
practices.
• Byju's lenders open to negotiations, seek draft loan amendment proposal. Byju's lenders have
opened to negotiations with the company, and are seeking a draft loan amendment proposal. The
lenders are concerned about Byju's financial situation, and are looking for ways to protect their
interests.
• Peak XV, Prosus and Chan Zuckerberg confirm exit from Byju's board. Peak XV, Prosus and Chan
Zuckerberg have confirmed their exit from the board of Byju's. The three investors have been
unhappy with the company's financial performance, and have decided to step down.
• Byju's tells investors it will file 2022 earnings by Sept
9. What went wrong for Byjus ?
• Financial planning and forecasting:
• Budgeting:
• Cash management:
• Investment:
• Risk and Debt management:
11. Introduction
• Financial management is the process of planning,
organizing, and controlling the financial resources
of a business.
• The objectives of financial management are to
maximize shareholder wealth, ensure adequate
returns to investors, and maintain a sound
financial structure.
• These objectives can be achieved through a
variety of financial decisions, such as investment
decisions, financing decisions, and dividend
decisions.
12. Profit maximisation
It is achieved by increasing revenue, reducing
costs, or both.
For example, a company might increase revenue
by introducing new products or expanding into
new markets.
It might reduce costs by negotiating better deals
with suppliers or by streamlining its operations.
13. Maximize shareholder wealth
• The primary objective of financial management is
to maximize shareholder wealth.
• This means that the financial decisions made by a
business should be in the best interests of its
shareholders.
• There are a number of ways to maximize
shareholder wealth, such as:
– Investing in profitable projects
– Maintaining a low cost of capital
– Paying dividends to shareholders
14. Wealth maximisation as an operational
criteria
• Here are some examples of how wealth maximization can be
applied to operational decisions in financial management:
• A company decides to invest in a new factory that will increase its
production capacity. This investment will increase the company's
profits in the long term, which will lead to an increase in the value
of the company's shares.
• A company decides to acquire another company in order to expand
its market share and increase shareholder value. This acquisition
will increase the company's profits in the long term, which will lead
to an increase in the value of the company's shares.
• A company decides to pay a dividend to its shareholders in order to
increase their wealth. This dividend will increase the shareholders'
cash flow, which will increase the value of their shares.
15. Ensure adequate returns to investors
• In addition to maximizing shareholder wealth,
financial management should also ensure
adequate returns to investors.
• This means that the financial decisions made by a
business should provide a fair return on
investment for its investors.
• There are a number of ways to ensure adequate
returns to investors, such as:
– Investing in safe and secure projects
– Managing risk effectively
16. Maintain a sound financial structure
• This means that the business should have a
balance between debt and equity financing.
• A sound financial structure will help the
business to weather economic downturns and
to grow over time.
17. Other objectives
• Lliquidity: This refers to the ability of a company to
meet its short-term financial obligations. A liquid
company has enough cash on hand or easily accessible
assets to pay its bills when they are due. For example, a
company might maintain a cash reserve or sell some of
its inventory to raise cash.
• Solvency: This refers to the ability of a company to pay
its debts in the long term. A solvent company has
enough assets to cover its liabilities. For example, a
company might issue bonds or take out loans to raise
capital.
18. Other Objectives
• Growth: This refers to the expansion of a company's
operations. A growing company is one that is
increasing its revenue, profits, and market share. For
example, a company might expand into new markets,
develop new products, or acquire other companies.
• Risk management: This refers to the identification,
assessment, and mitigation of risks to a company's
financial health. For example, a company might insure
its assets against damage or loss, or it might hedge its
exposure to foreign exchange risk.
19. Byjus
• Overcharging customers: Byju's has been accused of charging
customers exorbitant fees for its products and services. In some
cases, customers have reported being charged thousands of
dollars for courses that they never completed.
• Misrepresenting the effectiveness of its products: Byju's has
been accused of misrepresenting the effectiveness of its
products. The company has been known to use misleading
advertising to make it seem like its products are more effective
than they actually are.
• Using aggressive sales tactics: Byju's has been accused of using
aggressive sales tactics to pressure customers into buying its
products. In some cases, customers have reported being
harassed by sales representatives who refused to take no for an
answer.
20. • Consumer Financial Protection Bureau for misleading customers about its products. The company is
also facing a class-action lawsuit from customers who allege that they were overcharged for its
products.
• Byju's has denied any wrongdoing. The company has said that it is committed to providing its
customers with the best possible products and services. However, the agency problems that have
been alleged against the company raise serious concerns about its business practices.
• , Byju's has also been accused of:
• Failing to deliver on its promises: Byju's has been accused of failing to deliver on its promises to
customers. In some cases, customers have reported that they did not receive the promised level of
customer support or that their courses were not as effective as they were led to believe.
• Engaging in unfair and deceptive practices: Byju's has been accused of engaging in unfair and
deceptive practices. In some cases, customers have reported that they were misled about the
terms of their contracts or that they were pressured into signing contracts that they did not
understand.
• These allegations have led to a number of investigations into Byju's business practices. In 2022, the
Competition Commission of India (CCI) launched an investigation into the company's alleged anti-
competitive practices. The CCI is also investigating whether Byju's has engaged in unfair and
deceptive practices.
21. Agency Problem
• An agency problem in financial management
is a conflict of interest that arises when the
interests of the principal (the owner of the
assets) and the agent (the person who
manages the assets) are not aligned. This can
lead to the agent taking actions that benefit
themselves at the expense of the principal.
22. Resolving Agency Problems
• Market Forces
• There are two main ways that agency
problems can be prevented or minimized
through market forces:
• Behavior of security market
participants: Apple inc proxy strike
• Hostile takeovers: L&T finance takeover of
Mindtree
25. Emerging trends in financial
management
1.Digital transformation
2. Big data and analytics are becoming increasingly
important in financial management.
3. Cryptocurrency
4. Alternative financing
5. Digital finance
6. Environmental, social, and governance (ESG)
investing
7. Robo-advisors