FINANCIAL MANAGEMENT

INTRODUCTION
Financial management is the art and science of managing money. Regulatory and ec
onomic environments have undergone drastic changes due to liberalization and gl
obalization of Indian economy.FM is considered with the procurement of least cos
t funds and its effective utilization for maximisation of net wealth of the firm
. There exist a close relationship between the maximisation of the net wealth of
the company.

Scope of Finance
Finance is concerned with raising of funds to meet the various cash flow needs o
f the organisation. Finance functions starts from gathering the cash flow inform
ation from the accounting records and also prepare projections of cash flow.
Finance activities are concerned with preparing budgets and compare the same wit
h the actual results for finding variances. Here, the sources and application of
funds are prepared for both the budgets and actual scenarios.