FINANCIAL MANAGEMENT

ASSIGNMENT: Cases
SECTION: BBA 4C
SUBMITTED BY: AMEER ALI
ROLL NO: BBHM-F19-253
SUBMITTED TO: SIR ALI SAJJAD SAHIB

SUPERIOR UNIVERSITY LAHOR

RAIWIND ROAD CAMPUS
 Class activity-1
Case study
Identify financial concepts
Case 1:

Sunshine Ltd. is engaged in the business of export of garments. In the past, the performance of
the company had been up-to the expectations. In line with the latest technology, the company
decided to upgrade its machinery. For this, the Finance Manager, Salman estimated the amount
of funds required and the timings. This will help the company in linking the investment and the
financing decisions on a continuous basis. Salman therefore, began with the preparation of a
sales forecast for the next four years. Ali also collected the relevant data about the profit
estimates in the coming years. By doing this, he wanted to be sure about the availability of
funds from the internal sources of the business. For the remaining funds he is trying to find out
alternative sources from outside.

Required:

Identify the financial concept discussed in the above paragraph. Also state the objectives to be
achieved by the use of financial concept, so identified.

Case 2:
Syed bhais Ltd. is dealing in import of organic food items in bulk. The company sells the items in
smaller quantities in attractive packages. Performance of the company has been up to the
expectations in the past. Keeping up with the latest packaging technology, the company
decided to upgrade its machinery. For this, the Finance Manager of the company, Mr. Ahmed,
estimated the amount of funds required and the timings. This will help the company in linking
the investment and the financing decisions on a continuous basis. Therefore, Mr.Ahmed began
with the preparation of a sales forecast for the next four years. He also collected the relevant
data about the profit estimates in the coming years. By doing this, he wanted to be sure about
the availability of funds from the internal sources.

For the remaining funds he is trying to find out alternative sources.

Required:
Identify the financial concept discussed in the above paragraph. Also, state any two points of
importance of the financial concept, so identified

Case 1: Sunshine Ltd

The financial concept discussed in the paragraph is Financial Planning. Financial planning
includes the planning for financial requirements, how to raise funds for those requirements and
the optimal utilization of those funds.

Objectives:

Ensuring availability of funds:

Financial planning is used to ensure the funds generation whenever

they are required. It helps in determining the sources to raise funds as required.

Estimating sources timely:

Time is an important factor in the financial planning. The whole financial

decision making is based on the idea of time and delivering the funds at the right time.

Avoiding excessive funds:

Financial planning should also prevent the business from rising of

unnecessary funds as they are expensive for the business .Accumulated extra funds are just an
idle asset having their own costs instead of any return.
Case 2: Syed Bhais Ltd

Financial planning is the most important concept in financial management. Financial planning is
the plan for estimating the needs of a business and determining the sources to meet those
financial needs. It helps the business to prepare for both short term and long term goals.

Importance:
Supporting long term growth:

Financial planning helps in making growth and expansion

programmer. It supports development and the long term survival of the company.

Reducing risks and uncertainties:

Financial planning helps to reduce the uncertainties and the
risks associated with the changing market trends and keeping up with the latest technologies
which can be faced easily with the enough resources arranged timely.