2.

5 Financial management
Introduction to financial management
Faculty: Dr. Shalini H S
 Concept of Financial
management - Meaning and
definitions, Scope of
Financial Management,
finance functions, Financial
Goals of a firm, Agency
problem, Emerging role of
finance manager in India
 Financial Management
 Financial Management means
planning, organizing, directing
and controlling the financial
activities such as procurement
and utilization of funds of the
enterprise.
 It means applying general
management principles to
financial resources of the
enterprise.
 Financial management is one of
the important parts of overall
management, which is directly
related with various functional
activities
 Scope of financial
management

Anticipation
Acquisition
Allocation
Appropriation
Assessment
Objectives
Agency Problem
 Functions
1. Executive functions of
financial management,
and
2. Routine functions of
financial management.
Executive Functions of Financial
Management
Routine Functions of Financial
Management
Role of financial manager
Raising of Funds
Allocation of Funds
Profit Planning
Understanding Capital
Markets
 EMERGING ROLE OF FINANCE
MANAGER IN INDIA
• Investment Planning
• Financial Structure
• Treasury operations
• Investor communication
• Management control
END OF MODULE 1