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Finance is a life blood of business. Finance is the most encompassing of all business enterprises.
Ravi M. Kishore, Taxmann.

The study of money and other assets. The art and science of managing money.
Wikipedia, the free encyclopedia

Finance is the study and practice of making Rupee denominated decisions.

Dakota State University Madison, SD, USA

The commercial activity providing funds and capital.

of

The branch of economics that studies the management of money and other assets.

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To obtain or provide money. To sell or provide on credit. The management of money and credit and banking and investments
wordnet.princeton.edu/perl/webwn

Web Results There are about 26,900,000 links on - What is finance?

Management is an organizational function.

Management is the act of directing and controlling a group of people for the purpose of coordinating and harmonizing the group towards accomplishing a goal beyond the scope of individual effort. en.wikipedia.org/wiki/Management

Management is the process of getting activities completed efficiently and effectively with and through other people. Management means to get the work done
Web Results There are about 79,100,000 links on What is management?

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The study about the process of procuring and judicious use of financial resources with a view to maximizing the value of the firm thereby the value of the owner.
Ravi M. Kishore, Taxmann.

It is concern with duties of the financial managers in the business firm.

-Khan and Jain

It is all about money, Honey!

How to eat money?

How to drink money?

How to ware money?

How to think money?

How to see money?

How to talk money?

How to walk with money?

How to sleep with or without money?

How to plan money?

How to get money?

How to use money?

How to risk money?

How to control money?

How to run with or without money?

Do business with others money Money brings money Dream money to earn money

The purpose of the Financial Management is to make sure that the money flows to those who value it the highest. (that is those who can put it to the "best" use). Now Households / Investors Rs. (have money to invest) Future Households / Investors Rs. (Want money back)

Corporations (Need Money)

Corporations (have money)

The role of the financial manager is central in the flow of money from investors into the firm and then back to those same investors.

To maximize the owners wealth. How?..........

By maximization of profits.

How to maximize the owners wealth?

By maximizing the profits of the company [in short term] By increasing the shareholders worth [in long term]

How to maximize profits?

Increasing sales

Decreasing cost

Procurements of funds at lowest cost possible.

Investment of funds for highest returns.

Control on use of funds.

Risk Return Trade off.

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Mobilization of funds Financial decision Deployment of funds Investment decision Control over the use of funds Monitoring and controlling Risk Return trade off Balancing - Debts Serving.

Treasury Operations
Short term fund management and speculative gain by anticipation interest rate movement.

Foreign exchange rates

Predicting future value of a currency.

Financial structuring
Optimum mix between and equity.

Maintaining share prices

Appropriate dividend and bonus policies

Ensuring management control

Prevent dilution of management control

Role of a Finance Manager

x x x x Goal of finance manager Objectives of finance manager Functions of finance manager. Challenges to finance manager.

Get details from:

At least 5 Books and 10 web sites. Or, Meet a finance manager of a public limited company and discuss he/her role as a finance manager.

Give the details of your assignment as follows:

A4 size papers [not more than 10] Type of fonts Times Roman Word size 14 for headings [bold] and 12 for others. Line spacing 1.5 Margin 1.5 inches on left and 1.0 inch on other sides. First page must contain only title of the assignment, domain [finance]name of the student, roll no., class and name of the faculty to whom it is submitted.

Give the details of the books referred e.g. title, author, page no. etc Full web links [in case web search] Visiting card of the finance manager with office phone number [if role is discussed by meeting a Fin. Manager]
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Date of Submission :
Jan. 2012, by 4 pm.

Finance is pervasive, all-encompassing, omnipresent, persistent, insidious and invasive in nature. It is directly or indirectly present in all function and areas of business. It is a common thread passing through all and netting every thing in business.

Forms of Business Organization

Sole proprietorship
x One man army [unlimited liability]

Partnership
x 2 or more with [unlimited liability]

Company
x Ownership and management is in different hands [unlimited liability]

The Companies (Amendment) Act, 2006

Amendment of section 253- "Provided that no company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number under section 266B.

Why ? Because.
The provisions of the Companies Act, allow an individual to be a director of up to fifteen companies. There is a need for identity of person(s) intending to be directors of companies to be established, to facilitate effective legal action against the directors of such companies.

Companies in the UK must include certain regulatory information on their websites and in their email footers or they will breach the Companies Act and risk a fine.

Why? Because
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To avoid having to decide whether each email amounts to a 'business letter' or not.

Regulatory Framework
Industrial Policy Industrial Licensing Provisions and Procedures Regulations of foreign collaboration and investments FEMA Company Act SEBI

Industrial Policy x Industrial policy 1956 x Industrial Licensing policy 1973 x Industrial Policy Statement resolution Why a Finance manager should have knowledge about these policies and provisions? These provisions defines the investment avenues open to the enterprise.

Resent Developments
Abolition of licensing requirements Raising of investment ceilings for SSI Permitting the private sector to telecom equp. manufacturing. Encouraging foreign investments in the equity of our co. Encouraging foreign equity to manufacture computers. Disinvestment in selected PSU x www.dipp.nic.in [up dates up to 9/5/2008]

Industrial Licensing, Provisions and Procedures [under IDRA]

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Industries reserved for public sector. Industries subject to Compulsory licensing. Products reserved for SSI [not exceeding 5 crore] Ancillary units [sell > 50% of the products to Industries]

Industrial Licensing is abolished for all projects except for industries related to:
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Security and strategic concerns for social reasons Hazardous chemicals for environmental reasons Items of elitist consumption

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Central Advisory Council to represent the interest of owners,

employees and consumers

Development Council to increase the efficiency or productivity

in terms of economy and interest of the community.

Regulations of foreign collaboration and investments

FEMA-The object of the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

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FEMA extends to the whole of India. It applies to all branches, offices and agencies outside India owned or controlled by a person who is a resident of India and also to any contravention there under committed outside India by any person to whom this Act applies. http://www.rbi.org.in/scripts/FEMA_FAQs.aspx http://indiacode.nic.in/ http://www.advocatekhoj.com http://www.nrirealtynews.com

Regulations of foreign collaboration and investments

The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

The Preamble of the SEBI describes the basic functions: ..to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto http://www.sebi.gov.in/Index.jsp

Financial System [chapter 2]

http://finance.wharton.upenn.edu/~allenf/download/Vita/ind ias%20financial%20system.pdf

Authors
Franklin Allen -Finance Department, The Wharton School, University of Pennsylvania Rajesh Chakrabarti -Finance Area, Indian School of Business, Hyderabad 500 032, India Sankar De- Centre for Analytical Finance, Indian School of Business, Hyderabad 500 032, India
x Submitted on October 27, 2007

Tax Aspects
Direct taxes Income tax, wealth tax, gift tax etc. Indirect taxes sales tax, excise, custom, service etc. Finance Act 2008 http://incometaxindia.gov.in/