Financial Management Essay

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“Financial management is just managing the limited financial resources of the organization has." This includes the use of cash and other assets such as equipment. Financial management has a different meaning than “financial management is the study of obtaining funds and their effective and judicious use, in terms of the overall objectives of the company." The important role of financial management has increased significantly in recent times. Factors such as economic unpredictable turns, fluctuations in interest rates, inflation and disinflation require processing financial management skills of first level. There is a demand for financial management in many sectors of society, including the construction industries. Study of financial management has developed over time in response to changing needs of business management. In general, the field of finance is attached to the economics and accounting. Finance was recognized as an independent field of study in 1900. Due to the Great Depression of the 1900s, the emphasis shifted from the capital fund for the perseverance of capital and maintenance of liquidity. Government intervention in the financial side of the business was strengthened in this period. The most important steps of contemporary financial management began in the mid- 1950s. The nature of financial management was interested in studying the fixed assets management of capital budgets , the efficient use of existing assets , capital structure the composition and the dividend policy . The risk-return relationship has also been emphasized by the last 30 years. Overall objective is to maximize long- term shareholder of the company’s wealth, increasing the market value (price) of shares
Objectives of Financial Management are
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...e horizontal and vertical financial statements a useful way of analyzing financial statements is to perform either a horizontal or a vertical analysis of an analysis of the states. These analyzes help to a reader of the financial statements to compare companies of different sizes. Horizontal analysis focuses on trends and changes in the items of the financial statements in time. Along with the figures presented in the financial statements, horizontal analysis can help a user of financial statements to see the relative changes in time and identify positive trends or perhaps disturbing. The states for two or more periods are used in landscape analysis. The earliest period is generally used as the base period and the elements of states for all subsequent periods compared to the objects states base period. Changes are shown in general, both in rupee and in percentage.

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