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Information Systems for
Financial Analysis
&Planning
SUBMITTED TO : MRS SHEELA NARANG
SUBMITTED BY: NIKITA MALIK
Introduction to FIS
• Traditionally procurement of funds
 Modern terms it is associated with procurement till allocation of funds to maximize profits.
• In short Financial management is reducing cost of capital and maximizing the profits.
Procurement of funds
• Long Term Sources
– Debentures, Bond, Equity etc.
• Short Term Sources
– Bank Borrowings
Requirement of proper allocation of funds
 Done in both long term assets and short term assets .
 Proper utilization leads to proper allocation of funds
 In return yields maximum profits
 To perform these functions financial manager has to
perform certain activities:-
 Cash Management
 Investment Management
 Capital Budgeting
 Financial Planning
Financial planning and analysis:
Cash Management
Important task of finance manger
– Forecasts the requirements of cash
– And procure the funds required
There should be neither shortage nor Idle cash left
Shortage damages credit worthiness
Idle shows the improper utilization of funds
Cash Management System
 Collects information on all cash receipts and
payments
– Periodical basis
– On line information
Investment Management
 Proportion of different securities to be kept in the business
 Depending upon the policies short term investments may be
done
• Portfolio management softwares to retrive the information in
this regard
Financial managers develops an optimum portfolio – Minimises
the risk and maximies the profits
Capital Budgeting
 Invetsments decisions in capital expenditure
• Have long term perspective
• Finance manager access the various projects with varied
techniques
• Computerized Capital budgeting system use heavy spread
sheet model – Analysis of risk, PV analysis, determining
optimum mix of capital
Financial Planning
 Concerned not only with how best to finance new asset but
also with best overall mix of financing
 • Finance analysts use electronic spread sheet and financial
planning software's to evaluate the projected financial
performance of the business
 Uses financial forecasting concerning – Economic
situation interest rates, finance availability
THANK YOU!

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MIS.pptx

  • 1. Information Systems for Financial Analysis &Planning SUBMITTED TO : MRS SHEELA NARANG SUBMITTED BY: NIKITA MALIK
  • 2. Introduction to FIS • Traditionally procurement of funds  Modern terms it is associated with procurement till allocation of funds to maximize profits. • In short Financial management is reducing cost of capital and maximizing the profits.
  • 3. Procurement of funds • Long Term Sources – Debentures, Bond, Equity etc. • Short Term Sources – Bank Borrowings
  • 4. Requirement of proper allocation of funds  Done in both long term assets and short term assets .  Proper utilization leads to proper allocation of funds  In return yields maximum profits  To perform these functions financial manager has to perform certain activities:-  Cash Management  Investment Management  Capital Budgeting  Financial Planning
  • 6. Cash Management Important task of finance manger – Forecasts the requirements of cash – And procure the funds required There should be neither shortage nor Idle cash left Shortage damages credit worthiness Idle shows the improper utilization of funds
  • 7. Cash Management System  Collects information on all cash receipts and payments – Periodical basis – On line information
  • 8. Investment Management  Proportion of different securities to be kept in the business  Depending upon the policies short term investments may be done • Portfolio management softwares to retrive the information in this regard Financial managers develops an optimum portfolio – Minimises the risk and maximies the profits
  • 9. Capital Budgeting  Invetsments decisions in capital expenditure • Have long term perspective • Finance manager access the various projects with varied techniques • Computerized Capital budgeting system use heavy spread sheet model – Analysis of risk, PV analysis, determining optimum mix of capital
  • 10. Financial Planning  Concerned not only with how best to finance new asset but also with best overall mix of financing  • Finance analysts use electronic spread sheet and financial planning software's to evaluate the projected financial performance of the business  Uses financial forecasting concerning – Economic situation interest rates, finance availability