financial analysis
CHAPTER I
INTRODUCTION
1.1 GENERAL INTRODUCTION
There exists an inseparable relationship between finance on one hand and production, marketing and other functions on the other. Almost all kinds of business activities directly or indirectly involve the acquisition and use of funds. The finance function of raising and using money has a significant effect on other functions. A company in a tight financial position will give more weight to financial consideration and devise its marketing and production strategies in the light of financial constrain. On the other hand management of the company, which has a regular supply of funds, will be more flexible in formulating its production and marketing policies. Hence financial management may be considered as one of the most important area in the field of management.
Financial management is an integral part of general management rather than a staff specially concerned only with administering source of funds. Financial Management is concerned with all factors, which help to raise resource and their effective utilisation to attain its goals.
Financial management is that managerial activity which is concerned with the planning and controlling of the financial resource of the business. The aim of financial management is to maintain adequate liquid assets and maximization of profit. Financial management is considered as a vital part of overall management, as it involves the acquisition of funds and its profitable use with the business.
The financial manager has to take important decisions regarding finance. He must estimate the financial need of business, obtain the necessary finance from different sources and allocate the funds to different departments according to their needs. Financial planning helps management to avoid wastage by formulating various kinds of policies and procedures. It also ensures a closer co-ordination between various functions of the business. The basis
INTRODUCTION
1.1 GENERAL INTRODUCTION
There exists an inseparable relationship between finance on one hand and production, marketing and other functions on the other. Almost all kinds of business activities directly or indirectly involve the acquisition and use of funds. The finance function of raising and using money has a significant effect on other functions. A company in a tight financial position will give more weight to financial consideration and devise its marketing and production strategies in the light of financial constrain. On the other hand management of the company, which has a regular supply of funds, will be more flexible in formulating its production and marketing policies. Hence financial management may be considered as one of the most important area in the field of management.
Financial management is an integral part of general management rather than a staff specially concerned only with administering source of funds. Financial Management is concerned with all factors, which help to raise resource and their effective utilisation to attain its goals.
Financial management is that managerial activity which is concerned with the planning and controlling of the financial resource of the business. The aim of financial management is to maintain adequate liquid assets and maximization of profit. Financial management is considered as a vital part of overall management, as it involves the acquisition of funds and its profitable use with the business.
The financial manager has to take important decisions regarding finance. He must estimate the financial need of business, obtain the necessary finance from different sources and allocate the funds to different departments according to their needs. Financial planning helps management to avoid wastage by formulating various kinds of policies and procedures. It also ensures a closer co-ordination between various functions of the business. The basis
Bibliography: 1. Shashi K. Gupta, R.K. Sharma, “Management Accounting”, 3rd edition, Kalyani Publishers, 2012 2. I.M Pandey, “Financial Management”, 10th edition, Vikas Publishers, 2010 3. M.C. Dileep Kumar, K.M. Vineeth, “Research Methodology”, 2nd edition, Kalyani Publishers, 2010 4. Kothari C.R., “Research Methodology”, 2nd edition, New age International(P) Ltd., 2004 ANNEXURES (Balance Sheets 2008-2012)