←• •• •• • • • • • •• • •ammo

BB•••ñ→
Conversion Of Capital Funds
Too mmeet the financial needs

• • mop
• Reduce lost
Mke Prisk Under Control
•

ep
•• Ensure of funds
Availability
•
Effective Use of funds

⑨ Bj • • Biomes
• Profit Maximization
Maintenance of
•

Liquidity
•
Proper Utilisation of Resources
 F-make me D0Ee•$••m

µMqHe financial being

Decisions the well of
regarding -

company .

Hm • • • HIM ↳ %

Deciding which
among
the
following will
bring
maximum benefit

Ascq aiming
• B•i••dd• • • • Kss
• • * grew Assaf so
• MP• •FAME OF • • poor • • • • • •• ↳• me
-

-
• It affects long term
growth of the business
as funds invested in
long term -
assets will

bring future returns .

investment involves large

→
Buyingv11
fixed assets or

of funds
amounts
selecting the
wrong proposal
lead of funds
can to
wastage .

→ Tnnaeeesobtment in
long term -

can lead the firm

to bear Hee risk for a
longer period of time .

→ Decisions are irreversible

Fwm qµµg Brass no
Decisions the of finance from
regarding sources

which it should be raised .

Such as shares ,
debentures .

$ •• • • •$ •
f- finance is ddiouiddeedd into two •
categories : -

• Owners Fund
• Borrowed Fund

Finance
Manager Compares the
Advantages and

disadvantages of different sources of finance .

• Borrowed funds have to be paid back

and involve
degree
some of risk .

• In owners fund there is no fixed commitment

involved
of repayment and no risk is .
Dana • •• • Been , • An
Finance Manager decides what to do with the

leftover profit of the

Company .

The surplus either distributed to

is
equity
shareholders kept aside retained
or as
earnings .

Emma • • • Rampage
advance how much to spend
→
Deciding in ,

on what to spend
according
to the funds .

→ Determination of policies for proper utilisation

of funds .

→ Determination of sources of funds to be issued .

⑧
Bgj••btñ••$
To ensure
availability of funds whenever needed .

To see Heat firm does not raise resources

unnecessarily .

pmp•R-M8F
1. Prepares the Firm to Face Hee Future
2. Helps in Business shocks and sup rises
avoiding .

3. Proper utilisation of Finance .

4. Link Present with Future .

 B. Ap•-••• BARBARA
It is the proportion of

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Factors BBC.rqr.pgmmmgkppa-iabsamorwr.io
1. Gash Flow Position
22 .
Return •• Hee$bµm•µ&
If return on investment is more than Hee interest
Hien
Company must prefer debt in its

capital structure .
 B. T•☒ Rake .

H . F8•&a&ci•µ8•$G
It is the cost involved in Issue of shares or

Debentures .

8. Bloke* ibis Binky

F-• a$EB RAPH Ab
Allocation of firms
It
capital to
long -
term assets .

is also called capital Budgeting .

Factors AFFECTING Fa ☒ ED GAPIFAB

• Nature of Business
• Scale of Operation
•

Technique of Production
•

Technology Upgradation
 HORAK MG 8APÑAb
Excess of Current Assets Over Current Liabilities

Gross Working Capital Networking Capital

It refers to investment in all It is the part of
Total Capital
the C. A like cash in hand , required for
prepaid expenses etc .

holding C. A .
BAG FORS ARRESTING Into BHANGRAPathe

• Nature of Business
• Scale of Operations
• Business
cycle
of Raw Materials
•

Availability