Chief Financial

Officer

Treasurer Controller
 Chief Financial Officer (CFO)
◦ Oversees the treasurer and controller and sets
overall financial strategy.
 Treasurer
◦ Responsible for financing, cash management, and
relationships with banks and other financial
institutions.
 Controller
◦ Responsible for budgeting, accounting, and taxes.
 Finance Manager has to find out from where
can raise the fund.
 Finance Manager has to think about the
investment decision.
 Finance Manager has to make financial
forecasting.
 Finance Manager has to maintain the
liquidity position of the firm.
 Capital Budgeting decision.
 Dividend decision
 Working Capital management
 Cash Management
 Risk Management , Risk Diversification
 Portfolio Management
 Merger and acquisition
 Valuation of share and the assets
 International Finance Management
 Implication of Govt taxation, interest policy
 Understanding the role of intermediaries in
finance
 Analyzing the financial health of the
organization
 Preparing Budget for production, marketing
and finance dept.
 Managing payment and receivable.
 Framing the credit policy.
 Deciding regarding the source of finance
 Depreciation and replacement decision
 Decision regarding the disinvestment and
closure.
 Liquidation
 Sell off
 Merger
 Profit maximization versus wealth
maximization
 Finance Manager has to think about the short
term and long term objective of the firm
 Finance Manager has to decide the capital
structure
 Finance manager think about the optimum
utilization of the resource for the desired
goal, or efficiency and effectiveness
 Understanding the implication of corporate
social responsibility with respect to
profitability.
 Decision on the optimum size of the firm
 Decision on stock option , perquisites and
bonuses.
 Understanding and applying the modern
financial instruments such as factoring,
derivative, credit derivative, securitization and
venture capital.
 Transfer pricing
 Understanding the Time Value of Money