Financial Management — objectives — profit maximization, wealth maximization — finance function — role of finance manager — strategic financial management — economic value added — time value of money.
This presentation is made by Toran Lal Verma. Meaning, nature, and scope of Financial Management are discussed. scope and objectives of financial management have been discussed along with merits and demerits.
Financial Management — objectives — profit maximization, wealth maximization — finance function — role of finance manager — strategic financial management — economic value added — time value of money.
This presentation is made by Toran Lal Verma. Meaning, nature, and scope of Financial Management are discussed. scope and objectives of financial management have been discussed along with merits and demerits.
Introduction to financial planning
Meaning of financial planning
Definition of financial planning
Meaning of Financial Plan
Objectives of financial planning
Essentials/Characteristics of a sound financial plan
Considerations in formulating financial plan
Steps in financial planning
Limitations of financial planning
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
This presentation provides the complete Role and responsibilities of a person acting as a Finance Manager in any XYZ organization.
One can very well use this as a reference to see the basic Job Description for the post of a Finance Manager and can gain meaningful insights from it.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
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Introduction to financial management and financial markets sonarevankar
Meaning of finance, scope, objectives of financial management , duties , roles & responsibilities of a financial manager, organisation of finance function, Indian financial system, types of financial markets
Introduction to financial planning
Meaning of financial planning
Definition of financial planning
Meaning of Financial Plan
Objectives of financial planning
Essentials/Characteristics of a sound financial plan
Considerations in formulating financial plan
Steps in financial planning
Limitations of financial planning
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
This presentation provides the complete Role and responsibilities of a person acting as a Finance Manager in any XYZ organization.
One can very well use this as a reference to see the basic Job Description for the post of a Finance Manager and can gain meaningful insights from it.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
Introduction to financial management and financial markets sonarevankar
Meaning of finance, scope, objectives of financial management , duties , roles & responsibilities of a financial manager, organisation of finance function, Indian financial system, types of financial markets
The Meaning & Role Of Finance Management
Points Discussed are:
1. What is Finance?
2. Functions of financial Manager
3. The Goals of Financial Management
4. Roles of Financial Management
5. Functions of Financial Management
6. Activities Of Financial Management
7. Conclusion
Unit-1 INTRODUCTION TO FINANCIAL MANAGEMENT.pdfVivekAnilKumar1
This is the first unit of Financial Management in the second semester of Master of Business Administration. Here, we can collect the meaning, definition, scope, objectives, functions, importance and every concepts of Financial Management.
Overview of Corporate Finance in India a presentationfootydigarse
Slide 1: Introduction
Welcome to the presentation on Corporate Finance in India.
Overview of the financial landscape and key aspects of corporate finance.
Slide 2: Importance of Corporate Finance
Explanation of why corporate finance is vital for businesses.
Role in maximizing shareholder value, strategic decision-making, and capital allocation.
Slide 3: Financial Markets in India
Overview of India's financial markets: stock exchanges, bond markets, money markets.
Regulatory bodies such as SEBI (Securities and Exchange Board of India).
Slide 4: Sources of Corporate Finance
Equity financing: IPOs, rights issues, private placements.
Debt financing: bank loans, corporate bonds, debentures.
Hybrid instruments: convertible bonds, preference shares.
Slide 5: Capital Structure Decisions
Explanation of capital structure and its importance.
Factors influencing capital structure decisions.
Trade-off between debt and equity financing.
Slide 6: Valuation Methods
Common valuation methods in India: Discounted Cash Flow (DCF), Comparable Company Analysis (CCA), Precedent Transactions Analysis.
Importance of accurate valuation for investment decisions.
Slide 7: Corporate Governance
Overview of corporate governance principles in India.
Role of the board of directors, transparency, and accountability.
Slide 8: Risk Management
Types of financial risks faced by Indian corporations: market risk, credit risk, operational risk.
Risk management strategies: hedging, diversification, insurance.
Slide 9: Mergers and Acquisitions (M&A)
Trends in M&A activity in India.
Motivations behind M&A transactions.
Regulatory framework and approval process.
Slide 10: Case Studies
Analysis of notable corporate finance transactions in India.
Learnings from successful and unsuccessful deals.
Slide 11: Future Outlook
Emerging trends and opportunities in Indian corporate finance.
Potential challenges and how to address them.
Slide 12: Conclusion
Recap of key points covered in the presentation.
Importance of effective corporate finance management for sustainable growth.
Slide 13: Questions and Discussion
Open the floor for questions and discussion.
This chapter provides the basics of Electronic Customer Relationship Management and gives a clear idea about the e-CRM. It also gives the knowledge of changing perspective of the e-CRM practices
This chapter covers the basic introduction to Customer Relationship Management. It provides a conceptual foundation to CRM practices and implementation of the CRM
know the Importance and Need of Bank Reconciliation Statement.
Understand the Causes for Disagreement between Cash Book and Pass Book Balances.
Prepare Bank Reconciliation Statement.
Understand the Meaning, Kinds and Advantages of Subsidiary Books.
Know the Purpose, Format, Posting and Balancing of Purchases, Sales, Purchases Return and Sales Return Books.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@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.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
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
5. What is Finance???
• Finance is the art & science of managing
'MONEY'.
• Finance is the life blood of Business (funds).
• “Finance v/s Money”
6. FINANCE
Financial
services
Financial Mgt
Advisory services
Designing Financial products
Investments, real estate & insurance
Personal Financial planning
Mgt of finance dept in a
firm
Financial/ non-
financial/public/private/NG
O
Budgeting
Forecasting
Cash & credit mgt
Invst analysis etc
7. Financial Management
• According to Ezra Solamn “Financial
management is concerned with the
efficient use of an important economic
resources viz capital funds”.
• Financial Management means planning,
organizing, directing and controlling the
financial activities such as procurement
and utilization of funds of the enterprise.
8. Meaning: Financial Management
• Financial Management is an operational activity,
which is accountable for the effective utilization
of funds necessary for operations. One of the
primary objectives of financial management is to
maintain enough money to meet the necessary
current and capital expenditure, apart from
maximizing profits.
9. Nature of Financial Management
Financial management is mainly concerned with
the proper management of funds.
The financial manager must see that the funds
are procured in a manner that there is risk, cost
and control considerations are properly
balanced in a given situation and there is
optimum utilization of funds.
10. Financial Management Process
• Assess Current Financial Position
• Define and Prioritizing Goals
• Financial and Investment Plan
• Implementation of the Plan
• Monitor, Evaluate and Adjust Performance
11. Scope of Financial Management
• Scope covers both acquisition & utilisation of
funds – efficient and wise allocation of funds to
various uses.
• Financial mgt involves providing solutions for
major financial operations of a firm
- Investment decisions
- Financing decisions
- Dividend policy decisions
12. Investment decision/ function
• Investment decisions relates to the selection of
assets (fixed & current assets) in which
funds will be invested by a firm.
• Invst in fixed & long term assets & projects is
called capital budgeting – volume of invst ,
risk & returns , cost of capital.
• Invst & mgt of current assets is called
working capital mgt –mgt of cash, inventory
& receivables, profitabilty & liquidity.
13. Financing Decision / Function
• Financing decisions are concerned with the
Capital structure decisions of a firm
( proportion of debt & equity).
• Creating proper mix between debt & equity –
optimum capital structure.
• Tradeoff between risk & return.
14. Dividend policy decisions /
functions
• Deciding the Dividend payout ratio considering
the benefit of shareholders & firm both.
• Dividend decision should be analysed in relation
to the financing decisions of the firm.
15. Duties / Roles / Responsibilities of
a Financial manager
• Performing Financial Analysis
• Making Investment decisions
• Making Financing decisions
16. Performing financial analysis &
planning
• Transforming financing data into form which
can be used for decision making.
• Determing need for additional (reducing)
finance.
17. Making investment decisions
• Determine the mix of current assets & fixed
assets to be held by a firm.
• Determine the type of asset in each category
18. Making Financing decisions
• Determining mix of short term & long term
financing.
• Indepth analysis of available financing
alternatives , their costs & long term
implications.
19. Risk Return Trade-Off
• Amount of Return = Amount of Risk Undertaken
• Amt X of Loss is more Epochal than Amt X of Gain
• Risk Averse Instrument have High Demand Raising
the Price and Lowering the Returns.
• Risk Premium is the Higher Return gained over
Risk Free Returns.
20. Emerging / Changing role of
Finance managers in India
• Post liberalisation the role of finance
manager has become more important,
complex & demanding.
• Industrial licensing abolished and scope of
private sector investment has increased.
• Abolition of MRTP
• Abolition of Capital issues control act –
freedom in designing and issuing securities.
21. • Market determined interest rate and
exchange rate volatality.
• Globalisation, FDI.
• Investors have become more demanding and
assertive.
22. Challenges for Financial Managers in a
Changing Economic Environment
• Regulations
• Globalization
• Technology
• Risk
• Transformation
• Stakeholders
Management
• Strategy
• Reporting
• Talent and Capability
23. Nature of Financial Management
Company (Revenue
in billion)
Recent Investment Decision Recent Financing
Decision
Boeing ( $61) Began production of its 787 Dreamliner
aircraft, at a forecasted cost of more than
$10 billion.
The cash flow from Boeing’s
operations allowed it to repay some
of its debt and repurchase $2.8
billion of stock.
Toyota (¥ 26,289) In 2008 opened new engineering and
safety testing facilities in Michigan.
Returned ¥431 billion to
shareholders in the form of
dividends.
Wal-Mart ($406) In 2008 announced plans to invest over a
billion dollars in 90 new stores in Brazil.
In 2008 raised $2.5 billion by an
issue of 5-year and 30-year bonds.
Union Pacific ($18) Acquired 315 new locomotives in 2007. Largely financed its investment in
locomotives by long-term leases.
Wells Fargo ($52) Acquired Wachovia Bank in 2008 for$15.1
billion.
Financed the acquisition by an
exchangeof shares.
LVMH (€17) Acquired the Spanish winery Bodega
Numanthia Termes.
Issued a six-year bond in 2007,
raising 300 million Swiss francs.
Lenovo ($ 16) Expanded its chain of retail stores to cover
over 2,000 cities.
Borrowed $400 million for 5 years
from a group of banks.
24. Finance function
• Finance function involves the task of
procurement of funds needed by the enterprise
and its effective utilization.
26. Board of Directors
Managing Director /
Chairman
VP/ Director (Finance)/ Chief Finance officer (CFO)
Treasurer Controller
Cash Manager
Credit Manager
Foreign Exchange Manager
Financial planning &
fund raising manager
Capital Budgeting manager
Portfolio manager
Cost Accounting
Manager
Tax Manager
Financial accounting
mgr
Data processing mgr
Internal Auditor
27. Functions of a Treasurer
• Treasurer is mainly responsible for financing
& Investment activities.
• The main functions of a treasurer are
- Obtaining finance
- Investor relationship
- short term financing
- cash & credit mgt
- Investments & insurance
28. Functions of a Controller
• Controller is concerned with Accounting &
Control.
• The main functions of a Controller are
- Financial Accounting
- Internal audit
- Taxation
- Management accounting & control
- Budgeting & planning
30. Financial objectives or Financial Goals
Profit maximization (profit after tax)
Maximizing EPS(earnings Per Share)
Wealth Maximization.
31. Profit Maximization
Maximizing the Rupee Income of Firm
Resources are efficiently utilized
Appropriate measure of firm performance
Serves interest of society also
32. Objections to Profit Maximization
• It is Vague
• It Ignores the Timing of Returns
• It Ignores Quality of benefits
33. Shareholders’ Wealth Maximization
• Maximizes the net present value.
• Fundamental objective — maximize the
market value of the firm’s shares
34. Maximizing EPS
• Ignores timing and risk of the expected
benefit.
• Maximizing EPS will not result in highest
price for company's shares.
35. Non financial Objectives
General welfare of employees
General welfare of society
Fulfillment of responsibilities towards
customers, suppliers etc.
Leadership in R&D.
Effective utilization of funds
36. Interface of Financial Mgt with other
functional areas of Mgt
• Finance and Production
• Finance and Marketing
• Finance and Personnel ( Human resource)
• Finance and Research & Development
37. Finance and Production
• Finance is the basis of production and is
needed at every stage of production
• Planning & preparation of project report
• Acquiring raw materails, plant & machinery,
tools & spares, technological know how etc.
• Hold stocks of RM, WIP and FG .
38. Finance and Marketing
• Finance is needed in all vital areas of
marketing such as
• Sales promotion & Advertising
• Introduction of new products, diversification
of existing lines to satisfy customers changing
needs.
• Physical distribution of goods.
39. Finance and Personnel ( Human
resource)
• Finance in personnel is required for
• Recruitment
• Selection
• Training
• Promotion Schemes.
40. FINANCE AND RESEARCH &
DEVELOPMENT
• Finance in R& D is used for
• Innovation
• Technological up gradation
• To meet and cater the demands of changing
needs & preferences of customers
• To stay competitive
41. Functional Areas of Finance
• Personal Finance
• Corporate Finance
• Public Finance
42. Functional Areas of Finance
• Personal Finance
▫ Financial Position
▫ Adequate Protection
▫ Tax Planning
▫ Investment and Accumulation Goals
▫ Retirement Planning
▫ Estate Planning
43. Functional Areas of Finance
• Corporate Finance
▫ Balancing Risk and Profitability
▫ Maximizing Entity’s Wealth and Stock Value
▫ Managing the Working Capital
▫ Measure the Performance of Portfolio
44. Functional Areas of Finance
• Public Finance
▫ Related to Sovereign States & its entities
▫ Identification of required expenditure
▫ Source of that entities revenue
▫ Debt Issuance for Public Works Projects
45. Agency problem
• In corporate finance, the agency
problem usually refers to a conflict of interest
between a company's management and the
company's stockholders. The manager, acting as
the agent for the shareholders, or principals, is
supposed to make decisions that will maximize
shareholder wealth
46. Thank You
References:
Principles of Corporate Finance
(Brealy, Myers & Alen)
MIT OCW – Finance Theory 1
Financial Management – I M
Pandey
Financial Management M Y Khan