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    Scope of Financial Management

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    sanathchamp
    The scope of financial management involves arranging sufficient finances to meet short and long term needs at minimum cost to maximize profitability. The finance manager concentrates on financial estimation, capital structure planning, selecting the right sources of funds, investing funds by evaluating profitability of projects, analyzing financial performance, planning profits, and ensuring liquidity to maintain borrowing capacity.

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    Scope of Financial Management

    Uploaded by

    sanathchamp
    218 views11 pages
    The scope of financial management involves arranging sufficient finances to meet short and long term needs at minimum cost to maximize profitability. The finance manager concentrates on financial estimation, capital structure planning, selecting the right sources of funds, investing funds by evaluating profitability of projects, analyzing financial performance, planning profits, and ensuring liquidity to maintain borrowing capacity.

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    The scope of financial management involves arranging sufficient finances to meet short and long term needs at minimum cost to maximize profitability. The finance manager concentrates on financial estimation, capital structure planning, selecting the right sources of funds, investing funds by evaluating profitability of projects, analyzing financial performance, planning profits, and ensuring liquidity to maintain borrowing capacity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    218 views11 pages

    Scope of Financial Management

    Uploaded by

    sanathchamp
    The scope of financial management involves arranging sufficient finances to meet short and long term needs at minimum cost to maximize profitability. The finance manager concentrates on financial estimation, capital structure planning, selecting the right sources of funds, investing funds by evaluating profitability of projects, analyzing financial performance, planning profits, and ensuring liquidity to maintain borrowing capacity.

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    © All Rights Reserved
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    of 11

    SCOPE OF

    FINANCIAL
    MANAGEMENT
    Presented by:
    Nethravathi
    lakshmi

    The primary objective of a finance


    manager is to arrange sufficient finances
    in order to meet the short term long term
    needs
    the funds are procured at minimum
    costs so that the profitability of the
    business is maximized

    The finance manager should basically concentrate


    1. Financial estimation
    estimation of finance should be such that there should
    Neither be inadequate nor excess funds with the concern
    because both the situation would be dangerous for the concern

    2. Planning of the capital structure


    The processes involving deciding about the quantum of funds
    and also The type of securities to raise the funds .
    The organization should choose long term debts for financing
    fixed assets And over drafts and cash credits should be selected for
    financing working Capital requirements

    3.

    Selecting right source of funds

    In market finance is available in different forms like


    shares ,debentures, Financial institution ,
    commercial banks, public deposits etc
    It funds are needed for short period then
    financial executor should choose Banks financial
    institutions etc

    Investment of funds
    It is the responsibility of the finance
    manager
    To allocate or invest the funds towards capital
    expenditure and revenue expenditure
    before making the final decision the
    profitability of each project has to be
    evaluated by the finance manager

    Analyzing the financial


    performance

    After the investment of funds in different


    investment proposal the performance of
    each proposal has to be measured

    Planning of profit
    Profit earning capacity of an organization
    speaks about the efficiency levels of
    organization
    profit earning capacity enables future
    expansion and diversification programs of
    the company
    It is the prime responsibility of the finance
    manager to plan the profit

    Ensuring liquidity

    It is the another responsibility of a finance


    manager is to ensure liquidity of the
    organization as it is directly by related to
    the borrowing capacity of the company

    Question ?????????

    Thank you

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