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Handwritten Notes hy, , Paper 1 Paper 2, (Management), Soft Copy = 100 = 300, Hard Copy = 150 = 450, , Call or Whatsapp for Notes : 7627096162, , Note : Paper | includes 7 units except Comprehensions, Numerical Reasoning, and Data Interpretation because these units are practice based and theoretical, part of these units is covered in notes., , For hard copies postal/courier charges are separate.

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Financial Management Fy, , —, Financial Management means planning, organizing, directing and controlling the financial activities, such as procurement and utilization of funds of the enterprise. It means applying general management, principles to financial resources of the enterprise, Funds can be acquired through many ways and, channels. Broadly speaking a correct ratio of an equity and debt has to be maintained, This mix of, equity capital and debt is known as a firm's capital structure., , A firm tends to benefit most when the market value of a company’s share maximizes this not only is a, sign of growth for the firm but also maximizes shareholders wealth. On the other hand the use of debt, affects the risk and return of a sharcholder. It is more risky though it may increase the return on cquity, funds., , A sound financial structure is said ta be one which aims at maximizing shareholders return with, minimum risk. In such a scenario the market value of the firm will maximize and hence an optimum, capital structure would be achieved. Other than equity and debt there are several other tools which are, used in deciding a firm capital structure

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o, , vv, , Scope/Elements of Financial Management ty., , Financial Decisions : Financial decisions relate to the raising of finance from various resources, which will depend upon decision on type of source, period of financing, cost of financing and the, returns thereby., , Investment Decisions : Investment decisions includes investment in fixed assets (called as capital, budgeting). Investment in fixed/long term assets, investment in various projects, allocating fund to, various activities are the part of investment decisions, , Working Capital Decision : The investment in current assets is a major activity that a finance, manager is engaged in a day to day basis. [low much inventory to keep, how much receivables can, be managed, and what is the optimum cash levels, are three of the key questions that are dealt with, regularly, , Dividend Decision : The finance manager has to take decision with regards to the net profit, distribution. Net profits are generally divided into two :, , Dividend for sharcholders- Dividend and the rate of it has to be decided, , Retained profits- Amount of retained profits has to be finalized which will depend upon expansion, and diversification plans of the enterprise.

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Objectives of Financial Management ty., , ‘The financial management is generally concerned with procurement, allocation and control of financial, resources of a concern. The objectives can be =, , » To ensure regular and adequate supply of funds to the concern., , >» Toensure adequate returns to the shareholders which will depend upon the earning capacity,, market price of the share, expectations of the shareholders., , Vv, , To ensure optimum funds utilization. Once the funds are procured, they should be utilized in, maximum possible way at least cost., , » To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate, of return can be achieved., , wv, , To plan a sound capital structure-There should be sound and fair composition of capital so that a, balance is maintained between debt and equity capital.