Meaning, Role, Function, Importance of Financial

Management & Indian Financial system

By:- AMAN BHATTACHARYA

ABHISHEK KUMAR

Ambikesh Dwivedi

Arvind Gupta

Arvind Soni

Meaning

Management of Monetary Resources is Financial Management

RoleFinancial Manager

Treasurer

Financing Decision

Investment Decision

Dividend Decision etc.

Working Capital management

Controller

Accounting

Auditing

Taxation

Budgeting

Function

Investment Decision (Capital

Budgeting)

Financing Decision (Capital

Structure)

Liquidity Decision (Working Capital)

Profit Management (Dividend Decision)

Importance of Financial Management

For Good Reputation

For Diversification

For Growth

For Survival

Indian Financial System

Savings (Households,

Corporate)

Financial Intermediaries

(Banks, Insurance, Mutual Funds etc.)

Investment (Government, Businesses, Individuals)

Returns

Financial Markets

Regulators

Funds Funds

Financial Intermediaries

• Take deposits and give loansBanks

• Help the companies to issue shares & debentures to investors (Primary Market)

Underwriters & Investment Bankers

• Help investors to trade in secondary marketsBrokers

• Pool the money of small investors to invest in variety of investments by expertsMutual Funds

• Take premium regularly to give a money at the occurrence of certain bad eventInsurance Companies

Regulatory Authority in India

Reserve Bank of India

Securities and Exchange Board of India

Company’s Act

Income Tax Act