1. 1 Course- CO/EJ/IF/CE/ME/AE Subject- Management Chapter- 05 FINANCIAL MANAGEMENT

2. Financial management

3. Finance Effective procurement of funds Effective utilization of fund Provision of money at the it is wanted Collection and maintenance of capital

4. Financial Management  Raising of funds  Effective utilization  Mgt of assets

5. Objective of Financial Mgt  Profit maximization  Wealth maximization  Maintenance of liquid assets  To raise funds

6. Functions  Allocation of funds  Investments of fund  Mgt of cash  Mgt of credit  Financial control

7. Types of capital  A) Fixed Capital Block capital Required in starting phase of industry Permanent asset

8. …  B) Working Capital Current capital or revolving capital Circulating capital Reqd to need day-to-day needs

9. Types of Working Capital  a) Gross W.C. Current Assets  b) Net W.C. Total current Assets-total current liability

10. …  c) Permanent W.C. obvious expenditure e.g. Payment, salary, wages, electric bills and telephone bills  d) Temporary W.C. seasonal W.C. e.g. bonus, sudden charges, accidental charges

11. Sources of finance A) Internal Sources B) External Sources a) Long term b) Medium term c) Short term d) Financial institutions

12. Budget  Budget is the financial plan of the next year  Financial requirements of various dept.

13. Types of budget A) Based on flexibility Fixed budget Variable budget B) Based on mechanism Appropriation budgeting Performance budgeting Zero base budgeting

14. … C) Based on functions Production budget Sales budget Cash budget Labor budget Material budget Financial budget

15. Types of account A) Profit n loss a/c  Step form  Account form B) Balance sheet  Account form  Report form

16. Introduction to taxes  1. Direct Tax Flat tax Income tax Excise tax Transfer tax Payroll tax Inheritance tax Estate tax

17. …  2. Indirect Tax Consumption tax Sales tax Wealth tax fuel tax Value added tax Dividend tax

18. THANK YOU…