Thursday, April 9, 2009

Role Of Financial Manager

The Funcitons of a financial manager of a company generally include the follwing

  • Estimates capital requirement of various projects
  • Provides funds for various projects
  • Maintains liquidity and solvancy to meet the short term and long term commitments, when they become due.
  • Liason with stock exchanges,share holders,bankers,financial institutions.
  • Estimates risk in financial decisions and provide for various measures to minimise risk
  • Decides the credit policy of the company by taking into consideration the established practices.
  • Reports to various external agencies like financial institutions ,tax authorities ,share holders,govt.
  • Meets various onligations under different legistations ,like tax laws, SEBI Act, etc ....
  • Takes - up internal audit to establish proper checks and controls
  • Decides the dividend policy of the company .
All the above mentioned functions are supposed to be discharged by a financial manager , with in the frame work of laws in force, for the ultimate achivement of wealth maximisation of share holders.

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