MODULE | 1 INTRODUCTION TO FINANCIAL MANAGEMENT Finance is the lifeblood of an enterprise. In our present day economy we cannot imagine a world without finance. In other words Finance is the soul of our economic activities. Finance is a pre-requisite for obtaining physical resources which are needed to perform productive activities and carrying business operations. It is the soul which provides access to all the sources for being employed in ies. It has rightly been said that business needs money to make more money. Efficient utilisation of financial resources is the prime factor behind the success stories of manufacturing and operating acti all the business houses across the globe. Efficient management of a business enterprise is closely linked with efficient management of its finance. Finance may be defined as the “art and science of managing money” In General sense, “finance is the management of money and other ic sily converted into cash”. valuables which can be ea: ily converte’ Finance is “a simple task of providing the necessary funds required by the business entities like companies and firms, individuals and others ‘Seamed with Cascannerne —————t—— on the terms that are most favourable to achieve their economic objectives”. The term finance should be understood in two Perspectives: finance as a resource and finance as a discipline, Finance as a resource refers to monetary means of financing assets of an entity. Finance as a discipline describes how individuals, Government and corporate organisation manage the flow of money through an organisation. DEFINITION OF FINANCE According to Khan & Jain, “Finance is the art and science of managing money”. According to Oxford Dictionary, Finance connotes ‘Management of money’. TYPES OF FINANCE | Finance can be classified into two major parts: Finance >——_, Private finance Public finance + Central Government a) Business Finance b) Personal Finance State Government ¢) Finance of nonprofit Semi Government organisations. j . Private finance deals with the requiréments, receipts and i disbursement of funds in case of business organisations, owned by | individuals and non- profit organisations. Public finance deals with requirements, receipts and disbursements of funds in government institutions and limited companies. ‘Scanned with Camscanner9 ‘eduction to Financial Management USINESS FINANCE According to wheeler {Business Finance is that business activity n meeting financial needs and overall objectives of a business ise”. ly with raising, administering and disbursing funds by privately business units operating in non- financial fields of industry’ is and fund procurement of the business concern and the ‘ess concern’s need to adopt modern technology and application suitable to the global environment. FINANCIAL MANAGEMENT Financial management refers to that part of the management _ activity which is concerned with the planning and controlling of firm’s cial resources. It deals with finding out various sources for raising nds for the firm. ‘uch ‘Scand with Camseanner hich concerns with the acquisition and conservation of capital funds >s a eneenenenisansnenrnnEEL© FINANCIAL MANAGEMENT ‘J. F, Bradley defines Financial Management as “the area of business management devoted to a judicious use of capital and us careful selection of sources of capital in order to enable a spending ‘unit to move in the direction of reacting its goals”. ‘According to James. C. Van Horne, “Financial management is concemed with the acquisition, financing and management of assets with some overall goal in mind”. Thus, it is concerned with three activities, namely, anticipating financial needs, aquiring financial resources, and allocating funds in the business. NATURE AND CHARACTERISTICS OF FINANCIAL MANAGEMENT Financial Management has some basic features. It is an applied form of General Management. It is concerned with the procurement and conversion of capital funds to meet the financial needs of the business enterprise and to achieve the overall objective of the firm. 1. Procurement of Funds Financial Management is concerned with the collection of funds from different sources.,The collection of fund includes identification of sources of funds, raising of funds, consideration of cost of capital etc. 2. Effective use of funds 7 Financial Management is concerned with the effective use of funds collected from various sources. Effective utilisation of funds liquidity and profitab: ensures safety, liquidity and profitabilis different sources. 3. Flexibility of funds collected from Financial Management is flexible enough to adjust to the changes in the economic activities within the enterprise outside the enterp 4. Managerial Decision Making Financial Management takes different types of decisions ir respect of financial activities of the firm. It takes the decisions suct as investment decisions, financing decisions and dividend decisions a eee geen Onan —— ‘Scanned with Camseannerlll Introduction to Financial Management ——————_ 11 5. Financial Planning Financial Management frames financial planning which includes determination of capital requirements, methods of raising funds etc. —__-__ 6. Financial Analysis Financial Management makes financial analysis of the — performance of an: enterprise to assess the effectiveness of financial y ¢ effectivenes activities. 7. Financial Control Financial Management implements control over the financial activities of business enterprise. Financial control ensures effective use of funds in a planned way. 8. CreditManagement oo Financial Management arranges for credit management. Credit management ensures the flow of cash in the business enterprise. IMPORTANCE OF FINANCIAL MANAGEMENT The significance of Financial Management gets utmost importance on today. In every organisation, where funds are involved, sound Financial Management is necessary. As Collins Brooks has remarked, “Bad production management and Bad sales management have slain in hundreds but faulty financial management has slain in thousands”. Financial Management helps in monitoring the effective use of funds in fixed assets and working capital and also helps in ascertaining how the company performs in future. Sound Financial Management is indispensable. All decisions are financial decisions. Threfore proper management of finance is inevitable. Finance fuction is interlinked with other functions susch as production, marketing etc. The importance of Financial Management can be discussed under the following heads: 1. Success of Business promotions —— Sound Financial plan is inevitable for the success of business enterprise. If the financial plan adopted fails to provide sufficient capital ‘Scanned with CamscannerFINANCIAL MANAGEMENT to meet the requirements of fixed and fluctuating capital the business cannot be carried on successfully. Financial planning is made Possible through Financial Management. 2. Smooth running of the Enterprise — Sound Financial planning is necessary for the smooth of an enterprise. As finance is required at each stage of bu: Promotion, incorporation, development, expansion and admi of day to day working etc proper management of finance is Tunning siness je nistration required. 3. Financi; i i i a ncial Management co-ordinates various Functional Activities the ; 7 ome ox et oe Focal Point of Decision Making Financial Mana; agement provides’ scientific anal sis of all facts and figures through various financial tools such as different financial statements, budgets etc which help in evaluating the Profitability o the plan in the given circumstances, so that prop. taken to Tmpimise the tisk involved in the plan, 5. Determinant of Business success 4, er decision can be ‘Scanned with CamscannereeEEEEeEeE—eeeEeeeeeee Introduction to Financial Management ————————__ 8 6. Measure of performance The performance of the firm can be measured by its financial results, ie by its profitability and riskiness, Financial decisions which increase risk will decrease the value of the firm and on the other hand, financial decisions which increase the profitability will increase the value of the firm. JRANCE FUNCTIONS Finance is the life blood of an industrial system. Without finance neither any business can be started nor successfully run. Provision of sufficient funds at the required time is the key of success of a concern. Finance is the circulatory system of the economic body of a firm, Definifjon of Finance Function ., : Definition of the term “Finance Function” irmrelation to business can be divided in to three broad groups. One defines the finance function as simply the task of providing funds needed by the enterprise on suitable terms. The definition ‘of F.W. Paish can be put in this group. 4, Chccording to F.W. paish “In a modern money-using economy, finance may be defined as the provision of money at the time it is wanted”.)This view may be rightly called as procurement view, ‘Though thi$ definition of finance highlights the centfal core of finance function, ie, procurement of funds for the business, but to confine it to this aspect only in a narrow sense. This approach is called the pared to the finance function. Finance function is a broader function than that of funds supply ‘only. It includes the financing decisions, investment decisions as well as dividend decisigns. neing decisia et eee pe decisiy As per the second approach, finance function is the anagement of cash and maintaining the liquidity of funds. The definition of John. J. Hampton can be put in this category. According to him, “the term finance can be defined as the management of the flows of money through an organization, whether it will be a corporation, school, bank or government agency”. It is also a ‘Scanned with Camseanner7 14 FINANCIAL MANAGEMENT narrow concept of finance function. It is very often engaged with the task of working capital management only. Wovens capitan man 2. Deciding the capital structure + \The capital structure refers to the different types and proport of securities for raising funds.pAfter deciding about the quantun funds required,.a decision about the type of securities to be iss and the proportion in which these securities should be used, is t made. 3. Selecting a source of finance After preparing a capital structure scheme, an appropr source of finance is selected. Various sources from which fine may be raised include share capital, debentures, loan from finar 3, commy ks, public deposits, ‘tor institutions, commercial Banks, p lic deposits sits, trade credit, factor forfaiting, commercial paper, discounting of bill ete. The fac commer Paper, escounting of bills. influencing the selection of suitable source of financing are the r purpose, object and cost involved. If finance is needed for short pet ‘Scanned with Camseanner' Introduction to Financial Management 21 ‘then banks, public deposits, financial institutions, discounting of bills, factoring, etc are appropriate sources. If finance is required for long - ayterm then share capital and debentures may be useful. 4. Selecting a pattern of investment After acquiring necessary funds, decision about investment ‘© pattern, ie how to use funds, is to be made. A decision about which assets are to be purchased will have to be taken. The funds will have istto be spent first on fixed assets and then an appropriate amount will eabe retained for working capital. 5. Proper Cash Management Finance Manager has to assess the various cash needs at atdifferent times and make arrangements for acquiring cash The cash* (management! should be such that neither there is a shortage of it nor anthere is a surplus. 6. Implementing Financial Controls. An efficient system of Financial Management gives utmost importance on the use of various financial control devices. It includes io Return on Investment, Break Even Analysis, Budgetary Control, Ratio Analg etc to evaluate the performance of various financial policies b 9. Proper use of surplus fund te A judicious use of surplus fund is essential for expansion and for protecting the interests of shareholders, The ploughing back of profit is the best policy for expansion and protecting the interest of a shareholders. But a balance has to be kept for paying dividend and ¢ for ploughing back of profit. ; OBJECTIVES OF FINANCIAL MANAGEMENT : Financial management is concerned with procurement and use ; of funds. Its main aim is to use business funds in such a way that (firm’s value is maximised. The main objective of a business is to =< — = el ‘Scanned wth CameannerFINANCIAL MANAGEMENT maximise the owner’s economic welfare. This objective can achieved by: J} Profit Maximisation, and v2. Wealth Maximisation PROFIT MAXIMISATION Profit earning is the most important aim of every econom activity. It can be considered as a measuring scale for assessing tk economic efficiency of any business concern. Therefore the Supportei of profit maximisation concept argue that a firm should take it financial decisions in such a way as to maximise its profit. Moreove the main objective of Financial Managemiént is to safeguard th economic interest of the persons who are directly or indirect! connected with the company such as shareholders, creditors employees and the general public. These parties have contribute funds with which the company is carrying on its operations. Henc all these interested parties must get maximum profit for thei contributions. According to this view, the aim of financial managemen is to earn maximum profit. ARGUMENTS IN FAVOUR OF PROFIT MAXIMISATION 1, Profitability is the barometer for measuring efficiency and economii prosperity of,a business enterprise. Thus profit maximisation i: ee * jdstified on the grounds of rationality. 2.” Profit is the main source of finance for the growth of a business “So a business should aim at maximisation of profit for enabliny its growth and development. : 3. Profit serves as a protection against risk which cannot be ensured Economic and business conditions do not remain same at all the times. There may be adverse business conditions like recession depression, severe competition etc. A business will be able tc survive under unfavourable situation, only if has some pas! earnings to rely upon. ‘Scanned with Cascanner“2 Introduction to Financial Management 2 © bel AMenciel welfare Can be achieved through profit maximisation. 5. Profit attracts investors to invest their savings in securities. penance eB CRITICISMS OF PROFIT MAXIMISATION 1. The term profit is vague and it cannot be precisely defined. Profit means different things to different people. Profit may be short omic term or long term or before tax Profit or after tax profit etc. sthe ‘ters 2: Ighores time value of money — > its Profit maximisation objective ignores the time value of money. over It treats all earnings as equal even though they occur in different -the periods. It does not consider the fact that cash received today is more ctly important than the same amount of cash received after some years. 28; 3, Ignores Risk factor. 1 ted ince {It does not take into account the risk factor of the future earnings ? reir Stream. Some projects are more risky than others. Two firms may ent have same expected Earnings Per Share, but if the earning stream of one is more risky then the market value of its shares will be comparatively less. : 4. Dividend policy: nic : a The dividend policy will always affect the market price of shares. i But this is not considered in the objective of profit maximisation. 5.It attracts cut throat competition ig 6.It leads to exploiting workers and consumers, WEALTH MAXIMISATION —— According to Solomon Ezra, the ultimate goal of the Financial Management is maximisation of owner’s wealth. Maximisation of —akimisation of wealth means maximisation of market price per share in the lon; _ Prof. Solomon is of the view that Wealth maximisation also Maximises the achievement of other objectives of the firm. ‘Scanned with CaseannerFINANCIAL MANAGEMENT Maximisation of wealth objective provides a useful and meaningj, objective and serves as basic guideline by which financial decision should be evaluated. If an enterprise does not pursue the goal of maximisin, shareholder's wealth, it leads to the conclusion that funds Provide; by shareholders are not properly utilised and there is lower rate o economic growth. ; According to Prasanna Chandra, Equity shareholders provid: the venture (risk) capital required to start a business and appoint th: Management of the firm indirectly through the board of directors Hence it is the responsibility of the management to promote the welfare of equity shareholders. E ARGUMENTS IN FAVOUR OF WEALTH MAXIMISATION 1 The objective of wealth maximisation is always consistent with the objective of owner's economic welfare gtowner's economic welfar 2) Wealth maximisation protects the interest of all the stakeholders of a company and the society as a whole. 3 It ensures long term growth and survival of the company term growth and survival o 4) Ittakes into consideration the risk factor and time value of money — atu of mon — It guides the management in. framing a suitable dividend policy Decisions regarding payment of dividend are taken so_as fo increase the market value of the shares. e 6) It ensures that the resgurces ofan organisation have been use! effectively to accomplish the objectives of the organisation. CRITICISMS OF WEALTH MAXIMISATION The limitations of wealth maximisation approach are as follows 1) The wealth maximisation objective is not descriptive of what firms actually do. 5) ed ‘Scanned with CamSeanner2 . 25 Introduction to Financial Management —————_——_ 2) There is some difference of opinion as to whether the objective is to maximise the shareholder's wealth or the wealth of the firm. ca a 3) The objective of wealth maximisation is not necessarily socially, desirable. 4) The objective of wealth maximisation may also face difficulties when ownership and_man: separated. When the managers act as agénts of real owners there is a possibility for a conflict of interests between shareholders and the managerial interests. In spite of all criticisms wealth maximisation is considered superior to profit maximisation because: a) Profit maximisation measures performance of the firm in terms of profit only where as wealth maximisation objective considers all future cash flows, dividend, earning per share and impact of risk on decisions. b) A firm which adopts profit maximisation objective may not opt to declare any dividend at all, whereas the objective of wealth maximisation allows regular payment of dividend. PROFIT MAXIMISATION Vs WEALTH MAXIMISATION Wealth Maximisation Profit Maximisation 1) Short term objective Long term objective Aims at maximising the wealth of the shareholders 2) Aims at maximising the profit of the firm 3) Measures the effectiveness of | Measures the financial stability the organisation of the organisation 4) Does not consider time value | Considers time value of money of money Distributes the earnings among shareholders as dividend. 5) Provides no clarity on whether thé earnings would be _ distributed or retained in the _ firm. ‘Scanned with CascannerFINANCIAL MANAGEMENT F TIME VALUE OF MONEY ~ The finance manager of a firm has to take appropriate decisions on financing, investment and dividend. While taking these decisions the finance manage? must keep the time factor in mind and should consider the money value. 26 The time value of money is that the value of money received today is more than the value of same amount’of money received after @ certain period. In other words money received in the future is not as valuable as money received today. Purchasing power of money decreases because of inflation. In inflationary economy a rupee today represents a greater purchasing power than a rupee to be received after one year. It is therefore, desirable to calculate the present value of future earnings by discounting them with the rate of inflation for ascertaining present value of earnings. Money has a time value because of the following reasons: i) Individuals generally prefer current consumption ii) An investor can profitably employ a rupee received today to give him a higher value on tomorrow or after a certain period. iii) In an inflationary economy the money received today has more purchasing power than money to be received in future. Thus the fundamental principle behind the concept of ‘time value of money’ is that a sum of money received today is worth more than the sum received after sometime, TECHNIQUES OF TIME VALUE OF MONEY There are two techniques for adjiisting the time value of money: i) Compounding technique, and ii) Discounting or Present Value Technique. I. COMPOUNDING TECHNIQUE The compounding technique is used to find out the future value of present money. It is same as the concept of compound interest. In ‘Seamed with CamScanneroF Introduction to Financial Management —————————_—_ 7 this concept, the interest earned on the initial principal amount becomes a part of the Principal at the end of compounding period. For eg:- An investor invests = 1,000 for 3 years in a savings account that pays 10% interest per year at a compounded rate. The investment of investor will grow as follows: "year: Principal amount 1,000 Interest for 1% year (1000 x 10%) 100 Principal at the end 1,100 Ind year: Principal amount at the beginning 1,100 Interest 3rd the year (1100 x 10%) 110 Principal at the end Illrd year : Principal amount at the beginning 1,210 Interest for 3" year (1210 x 10%) 121 Principal at the end of 3“ year 1,331 Thus in case of compounding the principal amount together with interest are reinvested each year till the end of maturity year. In case the future value for longer period is to be calculated, suppose for 20 years or 30 years, it is difficult to calculate the principal and interest by using the method followed in the above example. Therefore a generalised procedure for calculating the future value of a single amount compounded annually is formulated as: FV, = PV(1 +r) ‘ FV, = Future value of the principal amount at the end of ‘n’ years. PV = Initial cash flow r= Annual rate of interest n = Number of years. ‘Scanned with Camscanner- i! ere FINANCIAL MANAGEMENT —$§£$-_$£-—_+$£+_>——+$$__ Illustration: 1 8 If an investor invests € 50,000 in a bank which is Paying 8% interest on a ten year time deposit. How much the investor Would get at the end of 10 year? Solution: FV, = PV (1 +r)" oof 18 |” = 50,0 (8) = 50,000 x (1.08)! i = 50000 x 2.159 | = %1,07,950 Note: compound value of one rupee at specified interest rate at Specified period is given in the compound vatue table. (Here, itis 2 159), MULTIPLE COMPOUNDING PERIODS In the above case it is assumed that is made on annual or yearly basis, But half yearly, ‘n’is a year, a compounding interest can be compounded quarterly or monthly or annually. In case interest is compounded annually ‘m’ (ie number of times compounding is done in a year) is 1. In case interest is co 1. times and if compounding is do: \ done 12 times. | Then the formula will be: ' Fv, = py ([teZ}™ i FVa = Future value of principal amount at the end of ‘n’ years, | PV = Initial cash investment Tr = Annual interest rate Number of times compounding is done during the year. n= Number of years ‘Scanned with CamcannerIntroduction to Financial Management 8 Illustration: 2 Calculate the compound value when % 10,000 is invested for 3 Years and rate of interest is 10% p.a. a) If compounding is done half yearly. b) If compounding is done quarterly. Solution: a) If compounding is done half yearly, m = 2 FV, = PV (5) stad 5 m. 0.10) 2x3 = 10000 (1-229) * = 10000 (1.05)° = 1000 x 1.340 = % 13400 b) If compounding is done quarterly: m = 4: r)m xn : wt Fy, = pv(i+2) = 10,000 (1-22) c = 10,000 (1.025)12 = 10,000 x (1.347) = % 13,470 NB: Compounding factor is calculated at 2.5% for 12 years ie 1.347 DOUBLING PERIOD Compound factor tables can be used to calculate the doubling period. The doubling period is the length of period which an amount is going to become double at a given rate of interest. It is calculated by following Rules of thumb: ‘Scanned with Cascanner~ FINANCIAL MANAGEMENT 30 % Rule 72 : . . 72 Doubling period = ote of Interest Rule 69 . . 69 Doubling period = 0.35 + Rosortnterest Illustration : 3 If ‘A’ invests = 10,000 @ 10% interest, then in how many years will this amount double? Rule of 72 7 Doubling period = 75 = 7.2 yrs Rule of 69 69 Doubling period = 0.35 + [>= 7.25 yrs COMPOUND VALUE OF AN ANNUITY An annuity is a series of equal payments lasting for some specified duration. The premium payments of life insurance company are example of an annuity. When the cash flows occur at the end of each period the annuity is called ‘a regular annuity’ or a ‘deferred annuity’, If the cash flows occur at the beginning of each period, the annuity is called ‘annuity due ie Making use of Annuity compound factor table we can calculate the future value of an annuity due as FV = PV (ACFyn) (1 + 1) Where ACF = Annuity Compound Factor at rate of 4” and at the end of specified ‘n’ period Illustration : 4 Mr. P deposits & 1,000 at the beginning of each year for 5 years in a bank and earns an interest on deposit at the rate of 8% p.a. Calculate how much money he will have at the end of 5 years. ‘Scanned with CamScannerIntroduction to Financial Management 31 FV = 10,000 (5.867) (1 + 0.08) = 10,000 (5.867) 1.08 = % 63,363.60 2. DISCOUNTING OR PRESENT VALUE TECHNIQUES Present value is exact opposite of compound or future value. While future value shows how much a sum of money becomes at some future period, present value shows what the value is today of some future sum of money. Using discounting technique one can estimate the present value of future earnings. In normal case money value gets reduced due to passage of time. Estimation of present value of future sum is called discounting. Present value is the sum to be invested at a given rate of interest to get a specified sum after a given period, The equation to find out discounted value is: PV = (ay? PV = Present value FV = Future value T = rate of interest per annum n = number of years Using present value factor PV = Future value x DF pp DF = Discount factor at ‘”’ rate of interest for ‘n’ Illustration : 5 years Mr. X is to receive % 20,000 after 5 years, Assuming interest rate is 8% p.a. determine the present value of amount. Solution FV PV = agnor PV=FV x DFyy 20000 = (1¥0.08) 5 = 20000) = % 13611.92 * [4603 ~ € 1961.9: ‘Scanned with Camscanner— a 82 _—_— FINANCIAL MANAGEMENT 7 Using present value table : PV = FV x DF 2 = 20,000 x 0.681 = ¥ 13,620 7 (Difference is due to approximation in present value table) PRESENT VALUE OF A SERIES OF CASH FLOWS Ina business situation, the returns received by a firm are spreaq over a number of years. An investment made now may re returns for a period after some time. Any businessman will like to know whether it is worth to invest or forego certain sum now in anticipation of returns he will earn over a number of years. In order to take decision he will need to equate the total anticipated future returns, to the present sum he is going to sacrifice. To estimate the present value of future series of returns, the present value of each expected inflows will be calculated. ] The present value of a series of cash inflows can be represented | by following formula: ye ne 2 co Pn ; (+r) (+r)? > +n) (14r Where, PV = Present Value P,P, &P, = Principal amount of cash flows after 1% year, 2” year and 3" year T = Discount rate 1 nm = number of years Illustration 6 Find out the present value of . future cash infl . received over next four years if the eos that will be discount factor is 10% Year cash flows “ g 10,000 20,000 30,000 40,000 ‘Scanned with Cascanner— x Teaq urns mow ation ision ' the Je of lows nted 33 - eee Introduction to Financial Management Solution: inflows we In order to find out the present value of 4 years cash i have to find the present value of cash folw. (Discounting rate = 10%) Year cash flows | present value factor | Present value Q) 2) 8) (4) 1 10,000 0.909 9,090 2 20,000 0.826 16,520 3 30,000 * 0.751 22,530 4 40,000 0.683 27,320 | Total present value = 75,460 PRACTICAL APPLICATIONS OF THE CONCEPT OF TIME VALUE OF MONEY The time value techniques of compounding and present value can be applied by the financial man important financial decisions: 1) Sinking Fund Problem can apply the concept of time value of mo: be 2) Capital Recovery Problem equal A financial Manager may be inter instalment to be paid every year t. of loan raised from some finan and in a fixed period. ager while taking a number of ney. ‘ested to know the amount of 0 discharge a specified amount cial institution at a given rate of interest 3) Finding out implicit rate of interest Implicit rate of intere: the help of time value of m; St for an. investment can be calculated with any techniques. For example Deep discount aaa ‘Scanned with CamScannerFINANCIAL MANAGEMENT 2a en Bonds have been issued by money financial institutions where | invester is required to pay a specific amount per bond at the time issue and receives of much larger amount at the end of specifi Period. The rate of interest in such a case is not given. The technic of time value can be applied to find out the implicit rate of interes 4) Compound Growth Rate A Gnance tranager may be require to calculate the compou rate of growth for sales of profits to know the growth of business | can do this by wee compound factor table 5) Ascertaining tine period Investors may be interested to find out period over which specified amount will grow at a given rate of interest to a certs amount. This cam te aacertained by time value of compound a: present value factor 1 Short Answer Questions Tj What @ Finance? 2) Define Business Pinance? x Define Pinanctal Management 4) What ie Public Pinance? 3) What ie Private finance? 6} What ia Time value of money? 7) What is Compounding? a What is Discounting technique? 9%) What are Executive Finance Punctiona? 10) What are Routine finance functions? uy What is Doubling period? 32) What Finance Punetion? ‘Scanned with Camscanner