PROVSESSEL LEE ELLIE ELA Leese SECRETARIAL PRACTICE ICONTENTS| StiNe: Topics a Page No. 1 | Business Finance 1 2 | Sources of Business Finance 7 3 | Role of Secretary in Capital Formation 2 4 | Issue of Debentures 32 5 | Deposits 34 6 | Depository and Dematertisation 38 7 | Declaration and Payment of Dividend 42 8 | Financial Markets 46 9 | Stock Exchange 49 10 Correspondence with Members 53 1 Correspondence with Debenture Holders. 65 12 Correspondence with Depositors 70 4 Objectives Board Question Paper (Feb -2014 /2015/2016/2017 12018 )SCE ELL LL Ld babes YL SUCCESS ACADEMY e1- Secretarial Practice 1. Business Finance > FINANCIAL MANAGEMENT : Kuchal §.C.: “Financial Management deals with procurement of funds and their effective utilisation is business.” From the above definitions it is clear that there are two basic aspects of financial management. 1. Raising of funds 2. Effective utilization of funds. Role of Financial Management:- Financial Management is essential for all types of organisations i.e. profit making organisations or non-profit making organisations. It plays a circular role in making best use of financial resources. > FUNCTIONS OF FINANCIAL MANAGEMENT: ‘The functions of financial management can be divided into two (A) Routine functions (B) Executive functions e functions:- Record keeping and reporting Preparation of various financial statements Cash planning Credit management (5). Providing information to Board of Di making decisions of purchases, marketing, pricing, ete. ectors on current ancial position for (B) Executive Functions:- (1) Forecasting Financial Management:- Financial needs have to be carefully estimated in business. Money may be required for long term purpose i.e. fixed Capital and for short term purpose ics working capital. A careful forecasting of such funds must be made. Forecasting is not only concerned with amount of money required for a programme but also includes. ‘a) Durations of funds (5 Years, 10 Years, etc.) b) Timing of supply of funds ¢) Kinds of funds (owned or borrowed, ete.) (2) Deciding sources of funds:- Once the needs of finance is revealed, various sources (ands must be considered. Different types of securities like share, debenture etc. can be issued to raise funds. Funds may also be borrowed from financial institutions and lenders. An almost care is to be taken while selecting the sources of funds. {9) Investment decisions:- Investment decisions refers to the decisions regarding (ad sation of funds raised by the firm. It relates to the selection of assets in which funds are to be invested. The funds can be invested in two types of assets, namely- ‘a) Long term assets or fixed assets b) Short term assets or current assets, YOUR SUCCESS IS OUR ACHIEVEMENTie the Ge abou ei fn thr