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Introduction to Financial management

Introduction to Financial management. Module 2 Nimit Ganatra Asst Professor Sanjaybhai Rajguru college of Engineering. Content Meaning and scope of finance Finance functions financial management and roles of Finance manager Objectives of FM. Meaning of Finance .

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Introduction to Financial management

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  1. Introduction to Financial management Module 2 NimitGanatra Asst Professor SanjaybhaiRajguru college of Engineering

  2. Content • Meaning and scope of finance • Finance functions • financial management and roles of Finance manager • Objectives of FM

  3. Meaning of Finance • Finance is an art and science of managing money • Finance is an art of managing wealth

  4. Scope of financial management • F.M is the use of economic resources namely capital funds • It is concerned with managerial decisions that results in short term and long term credits for them • F.M deals with procurement of fund and utilizing in the business

  5. Procurement of funds • In traditional approach the scope of FM was limited to procurement of the funds • This approach was during 1920s –1930s till 1950s • Fund can be raised through domestic market or abroad • FDI and FII foreign ( foreign direct investment foreign institutional investors)

  6. Utilization of funds • It is crucial to employ the funds properly and profitably • Modern approach to FM is more conceptual and has sound analytical framework compared to traditional approach • Mordern FM is more integrated in sense that it covers both aspects of FM procurement and allocation

  7. Finance function

  8. Routine function include

  9. Other functions • Finance planning • Determining capital structure • Finance control • Finance decision making • Procurement of funds • Utilization of funds • Increasing productivity of fund • Conserve the fund

  10. To plan and evaluate • Distribution of surplus • Management of cash

  11. Financial management and role of finance manager • Meaning • financial management is generally defined as those activities that create or preserve the economic value of asset of an individual small business of corporation • Financial management comes down to makin sound financial decision • FM is concerned with creation of economic value or wealth

  12. Objectives or role of Financial manager

  13. Objectives of Financial management

  14. Thank you

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