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Published by Sonali Jain

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Published by: Sonali Jain on Feb 03, 2013
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FINANCE To understand the position and importance of finance in an organization.

Finance which affects decisions is the time value of money. Finance can be broken into three different sub categories: public finance, corporate finance, personal finance.

Role of finance function • Finance function is one of the driving force of an organization . • Success of an organization depends on how well it manages the financial resources. • It forms basis for all economic activities. HR. • All other function such as marketing. accounting are interlinked and interconnected to finance function. • The duties and responsibilities includes treasurer. Cash manager or controller etc. .

. • So CFO’s and finance organization play critical role in creating value by effective capital structure and setting goals for revenue and profitability that meet the companies long term goal. • Controller is concerned with internal issues i. financing and cost accounting etc.Contd… • Treasurer focus on financial decision making.e. budgeting capital. portfolio management and formulate credit policies and its deals in external financial matters. accounting audit work.

• Focuses and reporting and compliance transaction management. creation of value by identifying values. • Financial instruments like convertible bnonds.Transformation of finance of finance function • Previously was limited to raising funds and allocating to various function but in today's scenario CFO is considered strategic partner providing specific and internal external skills and services. • Taking finance function as a profit center instead of cost center. derivatives. . are used to redusing financial losses an dmaking money out invesments.

Challenges out of modern finance function Future focused Business partnering Risk management Strategic support benchmarking Past focused Traditional finance Transaction processing Accounting & reporting Internal orientation external orientation .

.Current role of finance functtion at organization's corporate label • Value manager: it supports management team in welth creation by identifying oppertunities and strategic decision. • Process managers. focus on process anf risk minimization • Bean counter focus on reporting and transaction management. financial analysis. • Business partner provide decision support.

business stability and condition.Finance function at uniliver • Significance of finance function in uniliver is immense. • The dynamic approach helps in operating in different countries around the globe i. advisory and services department. . • It established finance committee which deals in capital expenditure. • the company always focus on sound financial function and effective cash management.e. audit. finance & taxation.

Terasury management • It meets day to day operational expenses and support investment channel. . • Uniliver uses short and long term borrowing fixed and current investment and other derivatives financial instruments with the objective of control risk and risk diversification. • Invest in equity and hedge funds.

Risk management • High amount investments leads to high risk so Uniliver minimize its risk by hedging through foreign exchange contracts or foreign currency borrowing. . • Uniliver establish global treasury center with objective of manage foreign exchange risk and overall financial risk.

. • It also delivered good results on both top and bottom line. • Uniliver managed or commercial paper maturity in reducing refinancing risk and to avoid potential liquidity crunch.Managing downturns • By Financial planning. • As the company become more dynamic. adaptive. prepared for any environmental change. financial risk management strategic planning and credit decisions during crisis. • Sound financial condition on uniliver helps in facing slowdowns.

Which leads to uniliver to grab best treasury management award and best cash management deal award from financial institution. high credit rating by rating companies like S&P (US).Continued Appropriate access to equity and that capital. . M&A.

.Conclusio • As uniliver is known for its cash management and treasury management due to its effective working of its CFO and financial dept.e. for attaining this it requires some specific skill set. i.

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