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BRILLIANT’S          Conceptual Framework of Finance Functions                     41


                  Financial Planning                          \$m`Z|{e`b ßbmqZJ
                      Financial planning is a continuous process  \$m`Z|{e`b ßbmqZJ ñQ´>oQ>o{OH$ bú`m| VWm CÔoí`m|
                  of directing and allocating financial resources  H$mo nyam H$aZo Ho$ {bE \$m`Z|{e`b g§gmYZm| H$mo {ZX}{eV
                  to meet strategic goals and objectives.     VWm Amd§{Q>V H$aZo H$s EH$ gVV² à{H«$`m h¡&
                      This can be also viewed as a single process  Bgo EH$ qgJb à{H«$`m H$o ê$n _| ^r XoIm Om gH$Vm
                  that  encompasses  both  operations  and    h¡ Omo Am°naoe§g VWm \$m`Z|qgJ XmoZm| H$mo g_m{hV H$aVr
                  financing. The operating people focus on sales  h¡& H$m`© H$aZo dmbo bmoJ goëg VWm àmoS>ŠeZ na Ü`mZ XoVo
                  and production while financial planners are  h¢ O~{H$ \$m`Z|[e`b ßbmZg© Bg_| ê${M boVo h¢ {H$ H$m`m]
                  interested on how to finance the operations.  _| H¡$go \$m`Z|g H$a|&

                  Steps in Financial Planning                 \$m`Z|{e`b ßbmqZJ _| MaU
                  Step I Determing the objectives for the plan.  MaU I ßbmZ Ho$ {bE CÔoí` H$m {ZYm©aU H$aZm&
                  Step II Gathering data.                     MaU II S>mQ>m EH${ÌV H$aZm&
                  Step III Process and analyze the information  MaU III EH${ÌV gyMZm na à{H«$`m VWm {díbofU H$aZm&
                         gathered.    NPP
                  Step IV Actual  recommendation  of  a       MaU IV ŠbmB§Q> Ho$ {bE EH$ {dñV¥V \$m`Z|{e`b ßbmZ
                         comprehensive financial  plan to  the        H$m dmñV{dH$ gwPmd XoZm&
                         client.
                  Step V Implement the plan.                  MaU V `moOZm H$m {H«$`mÝd`Z&
                  Step VI Monitor the plan.                   MaU VI `moOZm H$m {ZarjU&

                  Benefits of Financial Planning              \$m`Z|{e`b ßbmqZJ Ho$ bm^
                    Identifies advance actions to be taken in   {d{^ÝZ joÌm| _| CR>m`o OmZo dmbo ES>dm§g EŠe§g H$s
                      various areas.                              nhMmZ H$aVm h¡&
                    Seeks to  develop  number  of options  in   {d{^ÝZ joÌm| _| H$B© {dH$ën {dH${gV H$aZo H$m à`mg
                      various areas that can be exercised under   H$aVm h¡ {OÝh| {d{^ÝZ n[apñW{V`m| Ho$ A§VJ©V à`moJ
                      different conditions
                                                                  {H$`m Om gH$Vm h¡&
                    Facilitates  a  systematic  exploration  of   {Zdoe VWm \$m`Z|qgJ {ZU©`m| Ho$ ~rM g§nH©$ Ho$ EH$
                      interaction  between  investment  and       ì`dpñWV AÝdofU H$mo gw{dYmOZH$ ~ZmVm h¡&
                      financing decisions.
                    Clarifies  the links  between present  and   dV©_mZ VWm ^{dî` Ho$ {ZU©`m§o Ho$ ~rM g§nH©$ H$mo
                      future decisions.                           ñnï> H$aVm h¡&
                    Forecasts what is likely to happen in future   nydm©Zw_mZ H$aVm h¡ {H$ ^{dî` _| Š`m hmoZo H$s g§^mdZm
                      and hence helps in avoiding surprises.      h¡ VWm Bg àH$ma AmH$pñ_H$ KQ>Zm H$mo amoH$Zo _|
                                                                  ghm`Vm H$aVm h¡&
                    Ensures that the strategic plan of the firm   gw{ZpíMV H$aVm h¡ {H$ g§ñWm H$m ñQ´>oQ>o{OH$ ßbmZ
                      is financially viable.                      Am{W©H$ ê$n go `mo½` h¡&
                    Provides  benchmarks  against  which        ~¢M_mŠg© àXmZ H$aVm h¡ {OZgo ^{dî` Ho$ àXe©Z H$m
                      future performance may be measured.         _mnZ {H$`m Om gH$Vm h¡&
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