1. Role of Finance Manager
THE HISTORY OF FAILURES OF ORGANISATIONS IS
INTERESTING. MANY
FIRMS HAVE FAILED, NOT BECAUSE OF INEFFICIENCY OF
PRODUCTION, INABILITY IN MARKETING OR
NONAVAILABILITY OF FUNDS BUT DUE TO THE ABSENCE OF
COMPETENT FINANCE MANAGER

2. • Finance Manager has to find out from where
can raise the fund.
• Finance Manager has to think about the
investment decision.
• Finance Manager has to make financial
forecasting.
• Finance Manager has to maintain the liquidity
position of the firm.

3. • Capital Budgeting decision.
• Dividend decision
• Working Capital management
• Cash Management
• Risk Management , Risk Diversification
• Portfolio Management

4. • Finance and Production.
• Finance and HRM
• Finance and Marketing
• Finance and R&D
• Finance and CSR

5. • Merger and acquisition
• Valuation of share and the assets
• International Finance Management
• Implication of Govt taxation, interest policy
• Understanding the role of intermediaries in
finance

6. • Analyzing the financial health of the
organization
• Preparing Budget for production, marketing
and finance deptt.
• Managing payment and receivable.
• Framing the credit policy.
• Deciding regarding the source of finance
• Depreciation and replacement decision

7. • Hedging and insurance decision.
• Decision regarding the risk coverage.
• Decision regarding the investment and the
return
• Analyzing, interpreting and forecasting after
going through the accounting reccord

8. Disinvestment and Shut down
• Decision regarding the disinvestment and
closure.
• Liquidation
• Sell off
• Merger

9. • The expansion and diversification.
• Measuring investment risk versus return.
• Size of the firm

10. Objective of the Firm and Approach
• Profit maximization versus wealth
maximization
• Finance Manager has to think about the short
term and long term objective if the firm
• Finance Manager has to decide the capital
structure
• Finance manager think about the optimum
utilization of the resource for the desired
goal, or efficiency and effectiveness

11. Various Decision Making
• Investment decision or long term asset-mix
decision
• Finance decision or capital-mix decision
• Liquidity decision or short-term asset mix
decision
• Dividend decision or profit allocation decision

12. • Maximization of firm’s value.
• Shareholder’s value maximization
• Dividend, retention and re-investment
decision.
• Liquidity and profitability are conflicting
decision
• Risk and returning decision.

13. Finance manager role in Current Time
• Understanding the implication of corporate social
responsibility with respect to profitability.
• Decision on the optimum size of the firm
• Decision on stock option , perquisites and bonuses.
• Understanding and applying the modern financial
instruments such as factoring, derivative, credit
derivative, securitization and venture capital.
• Transfer pricing
• Understanding the Time Value of Money