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26 Corporate Finance BRILLIANT’S

support operational decisions and to h¡ VWm {S>grOZ H$mo boZo go nhbo CgHo$ \$m`Z|{e`b
understand the financial implications of BpåßbHo$eÝg H$mo g_PmVm h¡& `h _¡ZoOg© H$mo g§^m{dV
decisions before they are taken. It also enables
managers to monitor their decisions for any \$m`Z|{e`b BpåßbHo$eZ Ho$ {bE AnZo {S>grOÝg H$mo _m°{ZQ>a
potential financial implication. H$aZo _| ^r g_W© ~ZmVm h¡&
2. To ensure the availability of timely, 2. g§JV VWm {dídgZr` \$m`Z|{e`b VWm Zm°Z-
relevant and reliable financial and non- \$m`Z|{e`b BÝ\$m°_}eZ g_` na CnbãY H$amZm…
financial information: Financial management \$m`Z|{e`b _¡ZoO_|Q> _¡ZoOg© H$mo do gyMZmE§ XoVm h¡ Omo `m
gives the information to managers that either
forms the basis for calculating financial Vmo \$m`Z|{e`b BÝ\$m°_}eZ H¡$ëHy$boQ> H$aZo Ho$ {bE AmYma
information, or is used for management control H$m `m {\$a _¡ZoO_|Q> H§$Q´>mob `m AH$mC§Q>o{~{bQ>r nn©O Ho$
and accountability purposes. {bE {H$`m OmVm h¡&
3. To manage risks: Financial Management 3. [añH$ _¡ZoO H$aZm… \$m`Z|{e`b _¡ZoO_|Q> CZ
enables an organization to identify, assess and BdoÝQ²>g Ho$ \$m`Z|{e`b n[aUm_m| H$mo H§$grS>a, AmBS>|{Q>\$m`
consider the financial consequences of events VWm _yë`m§{H$V H$aZo _| Am°J}ZmBOoeZ H$mo g_W© ~ZmVr h¡
that could compromise its ability to achieve
Omo bú`m| H$mo àmßV H$aZo H$s j_Vm H$mo H$_ H$a gH$Vr h¡
its goals and objectives or result in significant
`m BgHo$ n[aUm_ñdê$n Am°J}ZmBOoeZ H$s [agmog}g H$s ~‹S>r
loss of resources. Financial management is an
hm{Z hmo gH$Vr h¡& \$m`Z|{e`b _¡ZoO_|Q> [añH$ _¡ZoO_|Q>
important component of risk management and
H$m EH$ _hÎdnyU© H$ånmoZoÝQ> h¡ VWm Bgo {~OZog [añH$ H$s
needs to be considered with the full range of
\w$b a|O O¡go Am°naoeZb VWm ñQ´>oQ>o{OH$ [añH$ VWm gmW
business risk, such as operational and strategic
hr gmW gmoeb, brJb, nm°{b{Q>H$b VWm EÝdm`Z©_oÝQ>b
risk as well as social, legal, political
and environmental risks. [añH$ Ho$ gmW H§$grS>a {H$`m OmZm Mm{hE&
Other objectives of
4. To use resources, effi- Financial 4. [agmog}g H$m à^mdr ê$n go,
ciently, effectively and economi- Management Hw$ebVmnyd©H$ ê$n go VWm {_Vì``Vm go
cally: Financial management is Cn`moJ H$aZm… \$m`Z|{e`b _¡ZoO_|Q> `h
1. To provide support
necessary to ensure that an for decision making gw{ZpíMV H$aZo Ho$ {bE Amdí`H$ h¡ {H$
organization has enough resou- 2. To ensure the avail- {H$gr Am°J}ZmBOoeZ Ho$ nmg CgHo$ H$m`m]
rces to carry out its operations ability of timely, rel- Ho$ g§MmbZ hoVw n`m©ßV [agmog}g h¡ `m Zht
and that it uses these resources evant and reliable fi- VWm dh BZ [agmog}g H$m Cn`moJ C{MV
with due regard to economy, nancial and non-fi- gmdYmZr go, à^mdr ê$n go, {_Vì``Vm go
efficiency and effectiveness. nancial informations VWm Hw$ebVmnyd©H$ H$a ahm h¡ `m Zht&
3. To manage risks
5. To strengthen accounta- 5. O~mdXmar H$mo _O~yV H$aZo Ho$
4. To use resources, effi-
bility: Financial management is {bE… \$m`Z|{e`b _¡ZoO_|Q> {H$gr
ciently, effectively and
essential for an organization to Am°J}ZmBOoeZ H$mo `h g_PZo Ho$ {bE
economically
understand and demonstrate how
5. To strengthen ac- Amdí`H$ h¡ {H$ dh Cgo gm¢no J`o
it has used the financial resources
countability \$m`Z|{e`b [agmog}g H$m Cn`moJ H¡$go H$aoJm
entrusted to it and what it has
6. To provide a support- VWm dh BZ [agmog}g go Š`m hm{gb H$aoJm?
accomplished with them.
ive control environ-
6. To provide a supportive 6. gnmo{Q>©d H§$Q´>mob EÝdm`Z©_|Q> àXmZ
ment
control environment: Financial H$aZm… \$m`Z|{e`b _¡ZoO_|Q> EH$ Eogo