Why Financial Management for

Non Finance Managers?

 Cutting down layers of corporate pyramid

 Broadening of responsibilities
 Vertical & Horizontal responsibility
 Cross functional capabilities-the rule and
not the exception
Tax Structure in India-General
awareness
1. What are you doing ?
Professional tax
2. What are you doing in
Business? Sales tax
3. From Where are you getting
the Goods? CST, custom duty &
octroi
4. What are you getting in
selling the Goods?
Income tax
Tax Structure in India
5. Where you manufacturing the  Excise duty
goods?

6. Do you have
Office/Warehouse/Factory ?  Municipal & fire

7. Do you have staff?

 Staff professional tax
8. Doing business in Million?

9. Are you going Out of station for  Turnover tax

business?
 Fringe benefit tax
Tax Structure in India
10. Have you taken or  Service tax
given any services?
11. How come you got  Gift tax
such a big amount?
12. Do you have any  Wealth tax
wealth
13. To reduce tension, for
entertainment, where
 Entertainment tax
are you going?
Tax Structure in India
14. Have you purchased • Stamp duty &
house? registration fee
15. How you travel? • Surcharge
16. Any additional tax? • Educational, additional
17. Delayed any time & surcharge
paying tax? • Pay interest & penalty
FINANCIAL MANAGEMENT

Managerial activity - planning & controlling-

firm’s financial resources.
Scope of Finance Functions

Managerial

Investors Investment Return on Investment Dividend

Scope of Finance Functions

Routine

Safe Guard cash Safe guard documents Outside financing Record keeping nad reporting
 EVOLUTION OF FM

Changing role of Financial managers

• Traditional

• Transitional

• Modern: Wealth maximization-analytical &

quantitative
Objectives
 Profit Maximization
Implies that ,the investment, financing and dividend
policy decisions of a firm should be oriented to the
maximization of profits

 Wealth Maximization
Maximize value of its shares
Value maximization or net present worth
Maximization
W= V-C
Principle of Finance

Provides
initial cash
to finance The business proposal
Investors
-Shareholders
-Lenders

Generates
cash return
Financial Decisions & Risk-
Return trade off

Market value of the firm

Capital budgeting

Capital Structure Risk

Dividend Return

Working Capital
Organization of finance
functions Chief Finance
Officer

Treasurer Controller

Credit Financial Cost Accounting

Cash Manager Accounting
Manager Manager
Manager
Capital
Fund Raising Data Processing
Budgeting
Manager Tax Manager Manager
Manager

Portfolio Internal
Manager Auditor