Article submitted by : Abhishek Kumar
Financial Management refers to that managerial activity which is concerned with the forecasting , planning , organising , co-ordinating and controlling of the firm’s financial resources.
Financial Management is progressing. As a good financial manager , you must determine the proper amount of funds to employ in the firm , take financial and capital structure decisions . You must be interested to know about the new sources of funds , projects , amendments etc prepared by the Government in the Tax Laws.
Basically Financial Management comes in its modern phase after two phases i.e. Traditional Phase and Transitional Phase . The main changing scenario of Financial Management in India are :
1. Changing Scenario in Interest rate Interest rates are regulated by RBI and other commercial bank’s rates are affected by the RBI’s circulars. The present bank rate 9.00% ( 28.01.2014 ), CRR 4.00% ( 09.02.2013 ), SLR 22.00% (09.08.2014). These rates are generally updated by the RBI. 2. Changing Scenario in Value of Shares Value of shares can be set up at premium or discount easily. It is one of the basic aspects to achieve business objectives . However, a finance manager must determine his shares value at optimum level since under and over subscription both will decrease the Earning Per Shares (EPS). 3. Changing Scenario in Merge As a good finance manager , You must Keep your eyes open on the status of Companies that who is takeover which company. Sometimes, Merging of companies plays an important role for gainful dealings . Apart from this , keep a track on the other kinds of management based investments.