Page 38 - Corporate Finance PDF Final new link
P. 38

NPP













                  38                                Corporate Finance                      BRILLIANT’S


                      2. Supply of funds to all sections of the   2. Am°J}ZmBOoeZ Ho$ g^r goŠeÝg H$mo \$ÊS> H$m
                  organization:  The  finance  manager  is  also  gßbm`… \$m`Z|g _¡ZoOa `h gw{ZpíMV H$aZo Ho$ {bE ^r
                  responsible to ensure that all sections and units  CÎmaXm`r h¡ {H$ Am°J}ZmBOoeZ Ho$ g^r goŠeÝg VWm `y{ZQ²>g
                  of the organization are supplied with adequate
                  funds. Sufficient supply of cash at all points of  H$mo n`m©ßV \$ÊS²>g H$m gßbm` hþAm hmo& àË`oH$ g_` na
                  time is essential for smooth flow of business  H¡$e H$s n`m©ßV gßbm` {~OZog Am°naoeZ Ho$ {Z~m©Y g§MmbZ
                  operations. Even if one of the hundred branches  hoVw Amdí`H$ h¡& `hm± VH$ {H$ 100 ~«m§Mm| _| go {H$gr EH$
                  does  not  have  sufficient  funds,  the  whole
                                                              ~«m§M H$mo \$ÊS²>g H$s H$_r go nyam {~OZog [añH$ _| Am OmVm
                  business may  be in  risk.  Therefore,  it is  an
                                                              h¡& AV… \$m`Z|{e`b _¡ZoOa H$m `h _hÎdnyU© H$m`© h¡ {H$
                  important  function  of  finance  manager  to
                                                              dh Am°J}ZmBOoeZ _| àË`oH$ g_` na àË`oH$ {~ÝXw na
                  ensure sufficient supply of funds at all time and
                  at all points, in an organization.          \$ÊS²>g Ho$ n`m©ßV gßbm` H$mo gw{ZpíMV H$a|&
                      3. Liaison with financial institutions: The  3. \$m`Z|{e`b B§pñQ>Q²>`yeZ go gå~ÝY… \$m`Z|{e`b
                  financial  manager  is  required  to  carry  out
                                                              _¡ZoOa H$mo \$m`Z|{e`b B§pñQ>Q²>`yeÝg, ~¢Šg VWm npãbH$
                  negotiations with financial institutions, banks
                                                              {S>nm°{OQ>g©  go ZoJmo{eEeZ H$aZm  n‹S>Vm h¡& Cgo BZ
                  and public depositors. He has to furnish a lot of
                                                              B§pñQ>Q²>`yeÝg H$mo H$B© OmZH$m[a`m§ XoZm hmoVr h¡& Cgo `h ^r
                  information to these institutions. He should also
                  ensure  that the  funds  are  raised  within  the  gw{ZpíMV H$aZm hmoVm h¡ {H$ \$ÊS>²g d¡Ym{ZH$ gr_mAm| Ho$
                  statutory  limits.                          AYrZ àmßV {H$`m J`m h¡&
                      4. Interpretation  of financial  data:  The  4. \$m`Z|{e`b S>mQ>m H$m ñnï>rH$aU… \$m`Z|g _¡ZoOa
                  finance manager should analyze the financial  H$mo ñQ>¡ÊS>S>© _| hþE do[aEÝg Ho$ H$maUm| H$m nVm bJmVo hþE
                  data to find out the reasons for variance from
                                                              \$m`Z|{e`b S>mQ>m H$mo EZmbmBO H$aZm Mm{hE VWm BgH$s
                  standards  and  report  the  same  to  the
                                                              [anmoQ>© _¡ZoO_|Q> H$mo XoZm Mm{hE Cgo BZ d¡[aEÝgog Ho$ g§^m{dV
                  management. He should also assess the likely
                  financial impact of these variances.        \$m`Z|{e`b BånoŠQ> H$m ^r _yë`m§H$Z H$aZm Mm{hE&
                      5.  Legal  obligations:  All  the  business  5. d¡Ym{ZH$ Xm{`Ëd… g^r {~OZog Am°J}ZmBOoeÝg
                  organizations  are governed  by specific  laws  {d{eï> A{Y{Z`_m| Ûmam em{gV hmoVo h¢ Omo {H$ AH$mC§Q²>g
                  which may relate to preparation of accounts,  H$s V¡`mar, Q>¡Šg no_oÝQ>, n|eÝg, H$m°nmo©aoQ> JdZ©_|Q> BË`m{X
                  payment  of  taxes,  pensions,  corporate   go gå~pÝYV hmoVo h¢& \$m`Z|g _¡ZoOa H$mo `h gw{ZpíMV
                  governance etc. The finance manager should
                  ensure that a true and correct state of affairs is  H$aZm Mm{hE {H$ \$m`Z|{e`b ñQ>oQ>_|Q> _|  ghr VWm
                  reflected in the financial statements. He should  dmñV{dH$ OmZH$mar àH$Q> hmo& Cgo `h ^r gw{ZpíMV
                  also  ensure  that  the tax  and  various  other  H$aZm Mm[hE {H$ Q>¡Šg VWm AÝ` OmZH$m[a`m§ g_` na
                  information are submitted on time.          gpã_Q> {H$`o Om gH|$&
                      Note: From the above discussion, it is clear  ZmoQ>… CnaomŠV MMm© go `h ñnï> h¡ {H$ \$m`Z|g
                  that finance functions have great significance  \§$ŠeÝg H$m ~hþV _hÎd h¡ VWm `h \$_© Ho$ {ZU©` go
                  and are directly concerned with firm's decision  àË`j ê$n go gå~pÝYV h¡& \$m`Z|g \§$ŠeÝg H$m \$_© Ho$
                  continuously. Finance functions have influence
                                                              àmoS>ŠeZ, _mH}$qQ>J VWm AÝ` \§$ŠeÝg na à^md n‹S>Vm
                  on production, marketing and other functions
                  of the  firm. In  order to  perform the  finance  h¡& \$m`Z|g \§$ŠeZ H$mo à^mdr ê$n go na\$m°_© H$aZo Ho$
   33   34   35   36   37   38   39   40   41   42   43