ASSIGNMENT

BASIC FINANCIAL MANAGEMENT

Company : Havells India pvt. Ltd.

Course Details:
Course

Course Code
Faculty

Student Details:

Name
Reg. No.

Draw the Finance chart for the selected company and briefly explain the roles and
responsibilities of the finance managers in that organisation
Financial Management:
Financial Management deals with the procurement of funds and their effective utilisation in
the business.

Financial management is generally concerned with short term working capital management,

focusing on current assets and current liabilities, and managing fluctuations in foreign
currency and product cycles, often through hedging . The function also entails the efficient
and effective day-to-day management of funds, and thus overlaps treasury management. It is
also involved with long term strategic financial management, focused on i.a. capital
structure management, including capital raising, capital budgeting.

Financial Department:
The financial department refers to the functional departments that organize and lead the
financial management work. The corporate finance department is a professional management
unit in the corporate management organization, and its functions mainly include:
guaranteeing the various funds required by the company's production and operation;
participating in corporate business forecasting and decision-making, rationally allocating the
currency income of the enterprise, and supervising and inspecting various aspects of the
enterprise Implementation of financial activities and financial plans.

Financial Manager:
Financial managers perform data analysis and advise senior managers on profit-maximizing
ideas. Financial managers are responsible for the financial health of an organization. They
create financial reports, direct investment activities, and develop plans for the long-term
financial goals of their organization.

Financial Manager of Havells:

Sanjeev Banerji - Manager-Finance & Accounts

Organization Chart Of Havells Company:

Havells India Pvt. Ltd. :
Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) Company and a
major power distribution equipment manufacturer with a strong global presence. Havells
enjoys enviable market dominance across a wide spectrum of products, including Industrial
& Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches,
Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, Luminaires
for Domestic, Commercial and Industrial Applications.

Type Public
Industry Electrical equipment
Founded 1958
Founder Qimat Rai Gupta
Headquarters Noida,Uttar Pradesh,India
Area Served Worldwide
Key People Anil Rai Gupta(Chairman&MD)
Products Fast Moving Electrical Goods
Revenue 9553 Crore(US$1.3 billion)(2020)
Operating Income 924 crore (US$120 million)(2020)
Net Income 735 crore(US$98 million)(2020)
Total Assets 7073 Crore (US$940 million)(2020)
Total Equity 4248 crore(US$560 million)(2020)
Number Of Employees 5781 (2020)
Divisions LV Motors
Home Applications
Kitchen Appliances
Lighting
Consumer and Industrial
Switchgear
Cables and Wires
Electrical Equipment

Duties Of Finance Manager In Havells Company:

Collecting, interpreting, and reviewing financial information

Predicting future financial trends
Reporting to management and stakeholders, and providing advice how the company
and future business decisions might be impacted
Producing financial reports related to budgets, account payables, account receivables,
expenses etc.
Developing long-term business plans based on these reports
Reviewing, monitoring, and managing budgets
Developing strategies that work to minimise financial risk
Analysing market trends and competitors
Finance Chart for Havells Company(1 day):

Role Of Financial Manager In Havells Company:

Manages monthly closing of financial records and posting of month end to meet the financial
needs.Manages monthly closing of financial records and posting of month end to meet the
financial needs.

The role of a financial manager is rapidly increasing due to advanced technology which has
significantly reduced the amount of time that was occupied to produce financial reports.

They analyze market trends to find opportunities for expansion or for acquiring
companies.
They have to do some tasks that are specific to their organization or industry.
They manage company credit,Make some dividend pay-out decisions.
Keep in touch with the stock market if the company is listed,Appreciate the financial
performance concerning return investments
They maximize the wealth for company shareholders.To handle financial negotiations
with banks and financial institutions.Monitor the day-to-day financial operations
within the company, such as payroll, invoicing, and other transactions
Oversee financial department employees, including financial assistants and
accountants.Contract outside services for tax preparation, auditing, banking,
investments, and other financial needs as necessary
Track the company’s financial status and performance to identify areas for potential
improvement.Seek out methods for minimising financial risk to the company
Research and analyse financial reports and market trends.Provide insightful
information and expectations to senior executives to aid in long-term and short-term
decision making
 Review financial data and prepare monthly and annual reports.Present financial
reports to board members, stakeholders, executives, and clients in formal meetings
Stay up to date with technological advances and accounting software to be used for
financial purposes
Establish and maintain financial policies and procedures for the company.Understand
and adhere to financial regulations and legislation.

Responsibilities Of a Financial Manager:

Financial managers have a complex and challenging job. They analyze financial data
prepared by accountants, monitor the firm’s financial status, and prepare and implement
financial plans. One day they may be developing a better way to automate cash collections,
and the next they may be analyzing a proposed acquisition. The key activities of the financial
manager are:

Financial planning: Preparing the financial plan, which projects revenues,

expenditures, and financing needs over a given period.
Investment (spending money): Investing the firm’s funds in projects and securities
that provide high returns in relation to their risks.
Financing (raising money): Obtaining funding for the firm’s operations and
investments and seeking the best balance between debt (borrowed funds) and equity
(funds raised through the sale of ownership in the business).
Monitor the day-to-day financial operations within the company (payroll, invoicing,
and other transactions)
Prepare monthly and quarterly management reporting.Participate in strategic data
analysis, research, and modeling for senior company leadership
Support project analysis, validation of plans, and ad-hoc requests
Manage the company's financial accounting, monitoring, and reporting
systems.Ensure compliance with accounting policies and regulatory requirements
Researching and Reporting on factors influencing business performance, analysing
competitors and market trends, Developing financial management mechanisms that
minimise financial risk conducting reviews and evaluations for cost-reduction
opportunities, managing financial accounting, monitoring and reporting systems
liaising with auditors to ensure annual monitoring is carried out.
Raising of funds: to meet the needs of the business, it is essential to have cash and
liquidity so that a firm can raise funds by way of equity or debt. A financial manager
is responsible for maintaining the right balance between equity and debt.
Allocation of funds: After the funds are raised, the next important thing is to allocate
the funds. The best possible manner of allocating the funds:

● Size of the organizations and their growth capability

● Status of assets about long term or short term

 ● The mode by which the funds are raised

Profit Planning: It is one of the primary functions of any business organization.

Profit earning is essential for the survival and livelihood of any organization. Profits
emerge due to various factors such as pricing, industry competition, state of the
economy, mechanism of demand and supply, cost and output.
Understanding capital markets: Shares of a company are traded on the stock
exchange for a continuous sale and purchase. It is understood that the capital market
is an essential factor for a financial manager. Hence, it is the responsibility of a
concerned person to understand and calculate the risk involved in this trading of
shared debts.
Financial Accounting: This function involves the preparation of the financial
statements for the firm, such as the balance sheet, income statement, and the statement
of cash flows.
Cost Accounting :This department often has responsibility for preparing the firm’s
operating budgets and monitoring the performance of the departments and divisions
within the firm.
Taxes: This unit prepares the reports that the company must file with the various
government (local, state, and federal) agencies.
Data Processing: its responsibilities involving corporate accounting and payroll
activities, the controller may also have management responsibility for the company’s
data -processing operations.
The treasurer is normally concerned with the acquisition, custody, and expenditure of
funds. These duties often include
Cash and Marketable Securities Management: This group monitors the firm’s
short -term finances forecasting its cash needs, obtaining funds from bankers and
other sources when needed, and investing any excess funds in short-term interest -
earning securities.
Capital Budgeting Analysis: This department is responsible for analyzing capital
expenditures, that is, the purchase of long -term assets, such as new facilities and
equipment.
Financial Planning: This department is responsible for analyzing the alternative
sources of long-term funds, such as the issuance of bonds or common stock, that the
firm will need to maintain and expand its operations.
Credit Analysis: Most companies have a department that is responsible for
determining the amount of credit that the firm will extend to each of its customers.
Although this group is responsible for performing financial analysis, it may
sometimes be located in the marketing area of the firm because of its close
relationship to sales.
Investor Relations: Many large companies have a unit responsible for working with
institutional investors (for example, mutual funds), bond rating agencies,
stockholders, and the general financial community.
Pension Fund Management: The treasurer may also have responsibility for the
investment of employee pension fund contributions. The investment analysis and
portfolio management functions may be performed either within the firm or through
outside investment advisors.