Financial Management
Financial Management
Financial Management
MODULE - 1, CHAPTER - 1
Debt of $50 million
Debt of
₹12778
crore
Bankruptcy
with almost
$1 billion in
debt
Why Managing Finances
is Important
0.16:1
0.36:1
Start A Business
Lets List Down the ● Raw Material – money / capital
● Capital
resources that you will ● Man power - money / capital
require to start your ● Land- money / capital
● Machines - money / capital
own manufacturing ● Profit- expansion
business ● Idea- qualification / objective
● Plan – Management skills
● Social Reach- technology
● Advertising – Money
● Building – Money
● Natural Resources- money
● Transportation – money
● Warehousing – money
● Create Demand of the product –
money + advertisement
● Money–is one of the important vitamins
required for running any organization, it is
just like blood, without which there is no
human being.
● Money is any country’s currency, which is
in the hands of a person or an
organization.
● Putting it simply, a currency as long as
you have it with you is money only and
when you lend it to others to buy or
What is Money? invest in investment avenues it becomes
finance.
● Finance is defined as to provide money
or credit for something.
● An example of finance is a bank
loaning someone money to purchase a
house.
● Without finance there is no
organization.
● Finance is defined as the
management of money and
includes activities such as
investing, borrowing, lending,
What is Finance? budgeting, saving, and
forecasting
● Money is any country’s currency,
which is in the hands of a person or
an organization, whereas finance is
also a country’s currency, which is
owned by a person or organization,
that is given to others as loan to buy
an asset or to invest in investment
opportunities.
● Put it simply, a currency as long as
you have it with you is money only
and when you lend it to others to
What is Finance? buy or invest in investment avenues
● Financial management refers to
the strategic planning, organizing,
directing, and controlling
of financial undertakings in an
organization or an institute.
● It also includes
applying management principles to
the financial assets of an
organization, while also playing an
important part in
Financial Management fiscal management.
Financing Decisions Application of Funds Profit Distribution
Anticipation Procurement
Utilization Increase Maximizing
of funds / Raising of Profitability firms value-
needed Funds of Funds
Source of Funds
RECOMENDED TEXT BOOKS
1. G. Sudarsana Reddy “Financial
Management” Himalaya (Latest Edition)
2. Prasanna Chandra “Financial
Management, theory and Practice
”McGraw-Hill (Latest Edition)
3. M. Y. Khan and P. K. Jain “Financial
Management” Taxman (Latest Edition)
4. IM Pandey “Financial Management”
Vikas (Latest Edition)
Text Books