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                  BRILLIANT’S          Conceptual Framework of Finance Functions                     39


                  functions effectively, the financial manager is  {bE \$m`Z|g _¡ZoOa H$mo ê$Q>rZ \§$ŠeÝg na\$m_© H$aZo
                  required to perform the routine functions.  hmoVo h¢&
                  Financial Management in  the  New           Z`o `wJ _| \$m`Z|{e`b _¡ZoO_|Q>
                  Millennium
                      The financial manager is concerned with     \$m`Zo{Ýe`c _¡ZoOa BÝdoñQ>_|Q>, \$m`ZoÝg, {S>{dS>oÝS>
                  managerial  finance  functions  of  investment,  Ed§ {cpŠd{S>Q>r {S>grOZ coZo Ho$ {c`o CÎmaXm`r hmoVm h¡Ÿ&
                  finance, dividend and liquidity decisions. The
                                                              ê$Q>rZ H$m`© {ZMbo ñVa Ho$ H$_©Mm[a`m| Ûmam {H$`o OmVoo h¢Ÿ&
                  routine functions are to be carried out by the
                  employees at lower level. He should check the  \$m`ZopÝe`c _¡ZoOa H$m H$m`© `h XoIZm h¡ {H$ àË`oH$
                  performance to see whether rules are properly  {d^mJ CgHo$ Ûmam ~Zm`r JB© nm°{cgrO H$m nmcZ H$a|Ÿ& Bg
                  followed or not. Before a few decades, the scope  àH$ma EH$ \$m`ZopÝe`c _¡ZoOa Ho$ H$m`© úmoÌ Ho$ Xm`ao _|
                  of finance functions and the role of financial
                                                              ì`mnH$ n[adV©Z hþE h¢ Am¡a amï´>r` d AÝVam©ï´>r` ñVa na
                  manager  were  limited  to  routine  activities.
                  Now the scope has widened to a great extent  ~‹T> ahr H$m°ånr{Q>eZ d O{Q>cVmAm| Zo \$m`ZoÝg _¡ZoOa Ho$
                  and has touched new heights.                H$m`m] H$m _hÎd Am¡a ~‹T>m {X`m h¡Ÿ&
                      Financial  management  emerged  as  a       \$m`Z|{e`b _¡ZoO_|Q> 20 dt gXr H$s ewéAmV _|
                  separate field of study at the beginning of 20th  AÜ``Z Ho$ EH$ Z`o joÌ Ho$ ê$n _| C^am h¡& ewéAmV _|
                  Century. Initially the role of financial manager
                                                              \$m`Z|{e`b _¡ZoOa H$m amob Z`r H$ån{Z`m| Ho$ JR>Z, H¡${nQ>b
                  was related to formation of new companies,
                  issue shares and debentures to raise capital and  àmßV H$aZo Ho$ {bE eo`g© `m {S>~oÝMg© Omar H$aZo VWm
                  understanding legal aspects of mergers. During  _O©g© Ho$ d¡Ym{ZH$ nhby OmZZo go gå~pÝYV Wo& 1950 H$s
                  the late 1950s, the focus shifted to managerial  g_mpßV Ho$ Xm¡amZ, \$moH$g \$_© H$s d¡ë`y _¡pŠO_mBO H$aZo
                  decisions to maximize the value of the firm.
                                                              go _¡ZoOar`b {S>grOÝg H$s Amoa {eâQ> hmo J`m&
                      In  India,  the  financial  managers  were  ^maV _|, 1990 VH$ \$m`Z|{e`b _¡ZoOg© H$mo gr{_V
                  required  to  function in  a  highly  regulated
                  environment and  enjoyed  limited  freedom  ñdV§ÌVm Ho$ gmW VWm AË`{YH$ ao½`yboQ>oS> EÝdm`Z©_|Q> _|
                  until 1990. However, the financial environment  H$m`© H$aZm n‹S>Vm Wm& hmbm§{H$ 21 dt gXr H$s ewéAmV _|
                  has changed in many ways from the beginning  \$m`Z|{e`b EÝdm`Z©_|Q> H$B© Vah go n[ad{V©V hþAm& Hw$N>
                  of 21st Century. Following are the important  _hÎdnyU© n[adV©Z {ZåZ{b{IV h¢…
                  changes:
                   (a) The  licensing process  for industries  has  (a) BÊS>ñQ´>r H$s bmBg|g à{H«$`m H$mo {e{Wb {H$`m J`m&
                      been  relaxed.  It  proved  helpful  for    `h àmBdoQ> goŠQ>a Ho$ {dñVma Ho$ {bE _XXJma gm{~V
                      expansion of the private sector.
                                                                  hþB©&
                  (b) The MRTP Act has been abolished and the  (b) MRTP EŠQ> H$mo g_mßV {H$`m J`m VWm FEMA H$mo
                      FEMA has been liberalized.                  CXma ({b~«bmBO) {H$`m J`m&
                   (c) The  scope of  Foreign Direct  Investment  (c) \$m°aoZ S>m`aoŠQ> BÝdoñQ>_|Q> (FDI) H$m ñH$mon ~‹T>m`m
                      (FDI) has been expanded.                    J`m&
                  (d) Freedom  is  given  to  the  companies  in  (d) H§$nZr H$mo CZHo$ Ûmam Bí`y H$s JB© {gŠ`y[aQ>rO H$s
                      designing and pricing the securities issued  àmBqgJ VWm {S>OmBqZJ _| ñdV§ÌVm Xr JB©&
                      by them.
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