BUSINESS SCHOOL

Business Finance
Assignment-I

Submitted by:
Moater Imran L1S19BBAM0137

Submitted to:
Ms. Maryam Rao

Session of Submission:
Spring 2021
Table of Contents
1. Functions of Financial Manager ........................................................................................................ 3
. Financial Management ............................................................................................................................. 3
• Financial Decision ........................................................................................................................... 3
• Acquisition Decision........................................................................................................................ 3
• Asset Management decision ........................................................................................................... 3
How These are Related? ......................................................................................................................... 3
1. Corporate Governance and role of Directors ................................................................................... 3
Corporate Governance ........................................................................................................................... 3
Board of Directors................................................................................................................................... 4
Role ........................................................................................................................................................... 4
2. Compare and Contrast the role Treasure and Controller .............................................................. 4

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 1. Functions of Financial Manager

. Financial Management

Financial management refers to the acquisition, financing and management of assets. This
decision-making process is very sensitive and should be under the control of the Finance Manager
to analyze external and internal variables that may affect the overall development of the company's
operations. four main areas.
• Financial Decision
These decisions are related to the finance of a company. Admittance to financing is firmly related
with keeping a consistent inflow of capital since the investment funds edge won't permit activities
to proceed for any longer without the help of extra liquidity. The Financial Manager should
characterize a few parts of the financing system. For instance, study the sources willing to offer
credit to the association, and characterize the best financing choices for activities. The Financial
Manager can likewise plan a mix financing investment for effective monetary administration: this
is known as the organization's "financing mix". Once in a while the organization can profit by a
mix of short- and long-term financing to meet investment and financial strategic goals.
• Acquisition Decision
In this decision we purchase most of the other companies share to gain the control on the
company. A financial manager takes the decision of acquisition for various reasons. They may
seek economic scale, diversification, greater market share, increase synergy, cost reduction or
new offering. Its is on the left part of the balance sheet.
• Asset Management decision
These decisions include replacing and repairing of assets. It manages right and left side of
balance sheet. Once the asset has been acquired and the finance provided then these assets must
be accomplished in an efficient manner. In order to manage the assets in an effective or efficient
manner then the firm can increase its returns and minimize the liquidity risk. As such, the
Financial Manager should specify and guarantee that the current assets are overseen in the most
proficient manner conceivable. For the most part, this director should focus on current assets the
board before fixed assets the executives. Current assets are those that will get successful sooner
rather than later
How These are Related?
Assets = Liabilities + Equity
Assets are acquisition decision and liabilities + equity are financing decisions. The internal
decisions of the assets being made by the context of the external decisions as shown in the above
equation.

1. Corporate Governance and role of Directors

Corporate Governance
Corporate governance is the process by which companies are regulated and controlled. Boards of
directors are responsible for the management of their companies. The role of shareholders in

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management is to appoint directors and auditors and to ensure that an appropriate governance
framework exists. Corporate governance is therefore about what the company board does and how
it sets company values, and should be separated from the day-to-day operations of the company
by full-time managers.
Board of Directors
The board of directors is actually a panel of people elected to represent shareholders. Every public
company is legally required to submit a board of directors; non-profit organizations and many
private companies while not necessarily - also call the board of directors. The Board is responsible
for protecting the interests of shareholders, establishing management policies, managing a
company or organization, and making decisions on important issues facing a company or
organization.
Role
• Advise the CEO and other top managers and set the policy of company
• Hiring and firing of CEO
• Maintaining company resources
• Establishing Compensation for executives
• Supporting Executives and teams

2. Compare and Contrast the role Treasure and Controller

Treasure
How to deal and handle the money
Investment banks to grow funds of company
They deal with shareholders and potential
investors and bankers who provide capitals
Responsible to look after the most profitable
offer investments by making good
relationship with investment banks and make
good relationship with stakeholders
Responsible in acquisition and mergers
They involve tax analysis, pension
management and insurance management
Controller
He is involved in financial statement and
presents company
He deals with interests for loans
They look inside of the company
They make or control past activities and
financial statements of the company
Responsible for government reporting
Involves cost management, cost accounting,
data processing and prepare budget etc.