Finance Management: C. K. Pithawala College of Engineering & Technology

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C. K.

Pithawala College Of Engineering &


Technology

FINANCE MANAGEMENT
Group No. :- 13
Group Members :-
1. Kinariwala Preet I. - 150094106001
2. Anajwala Parth A. - 160093106001
3. Bhagat Harsh G. - 160093106002
4. Dihora Dhruvil J. - 160093106003
CONTENT
INTRODUCTION
SCOPE
FUNCTIONS
SOURCES
1. BASED ON TIME PERIOD OF REPAYMENT
2. BASED ON OWNERSHIP
3. BASED ON SOURCES OF GENERATION
INTRODUCTION
Finance management is the process of
planning , organizing , directing , and
controlling the financial activities such as
procurement and utilization of the funds
of the enterprise.
It applies general management principles
to financial resources of the enterprise.
Many financial experts have defined
financial management as follows:-

SOLOMON :- “It is concerned with the


efficient use of an important economic
resource namely , CAPITAL FUNDS”.
KUCHAL :- “Financial management deals
with procurement of funds and their
effective utilization in the business”.
SCOPE
• Financial management is very important
aspect for overall management of the
organization. It has direct impact on every
business aspect and hence it has found
wide scope in the business. It effects
functional departments such as human
resources, procurement , design ,
research , production and many more.
Financial management covers wide area
with multidimensional approaches.
THE FOLLOWING ARE IMPORTANT
SCOPES
1. Financial management and accounting.
2. Financial management and economics.
3. Financial management and mathematics.
4. Financial management and human
resources.
5. Financial management and marketing.
6. Financial management and production
management.
FUNCTIONS
1. Estimation of capital requirements.
2. Determining of capital composition.
3. Selection of sources of funds.
4. Investment of funds.
5. Management of cash.
6. Disposal of surplus.
7. Financial controls.
SOURCES
Sources of finance mean the ways for
availing of finance in various terms for the
business. Every new business needs funds
for business requirements such as
purchasing of fixed assets , construction of
office building , purchase of raw materials ,
while existing business needs funds for the
development or expansion. Funds may be
required for short term or long term
depending on the need of the business.
SOURCES OF FINANCE

BASED ON
BASED ON
TIME PERIOD BASED ON
SOURCES OF
OF OWNERSHIP
GENERATION
REPAYMENT
BASED ON TIME PERIOD OF REPAYMENT

 Long term sources :-


When the available finance is repaid
after more than 5 years, it may be
considered as long term finance sources.
 Short term sources :-
When the available finance is repaid
within 1 or 2 years, it may be considered
as long term finance sources.
BASED ON OWNERSHIP
 An ownership sources of finance
includes :-
• Earnings
• Different types of share capitals

 Borrowed capital includes :-


• Public deposits
• Bank loans
BASED ON SOURCES OF GENERATION

 Internalsources of finance includes :-


• Retained earning
• Depreciation funds

 External sources of finance includes :-


• Public deposits
• Different types of share capitals
• Bank loans
Yo u
a n k
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