These file contain history of "finance" name ; Finance ; Types with respect to time ; Cash Flow & Details of two management GURU .

1. 1
Introduction to Financial
Management
Presented By : Dhruv Acharya

2. From Where The Word
“FINANCE” Derived ?
 The origin of the word "finance" has a fascinating
history.
 Aristotle provided a canonical definition of the
word over two thousand years ago:
 "And statesmen as well ought to know these
things; for a state is often as much in want of
money and of such devices for obtaining it as a
household, or even more so; hence some public
men devote themselves entirely to finance."
From : Aristotle, Politics, Book I . 2

3. Contd…
 If we travel back to c. 1200-1300, however, we
see that that the word “fine” also had positive
definitions as it still does today.
 In Latin, French and English, it meant things
like “perfected, of highest quality” ; “acme,
peak, height” ; “the highest good” and
“delicate, intricately skillful.”
3

4. Contd…
 It wasn’t until 1527 that
the word fine began taking
on the modern and more
negative definition of
“sum of money imposed
as penalty for some
offense,” and 1559 when
assigned the verb meaning
“to punish by a fine.”
4

5. Contd….
 After c. 1700 the “FINANCE” get its positive
definition which is started from ENGLAND .
 Than the whole world accept “FINANCE” as
a positive definition in “ENGLISH”
dictionary.
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6. Why Study Finance?
Marketing
Budgets, marketing research, marketing financial products
Accounting
Dual accounting and finance function, preparation of financial
statements.
Management
Strategic thinking, job performance and profitability
Personal finance
Budgeting, retirement planning, college planning, day-to-day cash
flow issues.
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8. FINANCE CASH
 Finance is process of flowing or transfer
the cash from one to another bank
,company , customer , consumer etc.
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9. Similarity of Electronics & Finance
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10. Contd…
 Everybody engage in financial management
one way or the other on a daily basis without
knowing it- at best, they will call it
economizing.
 An average housewife will seek alternative
ways of getting more value for the money she
spends.
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11. F.M. œ T
Where ,
F.M. = = Financial Management
T = = Time
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Finance Management as
Function of Time

12. TYPES OF FINANCE
 1. LONG TERM
 2. MEDIUM TERM
 3. SHORT TERM
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13. LONG TERM FINANCE
 For a longer period as More than 5 year
 Known as fixed capital
 Examples—
 The manufacture of steel
 Cement
 Chemicals & Heavy Engineering industry etc.
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14. MEDIUM TERM FINANCE
 Funds for a period exceeding1 year & less
than 5 year
 Arises on account of changes in
technology/increasing competition.
 Modernization of Plant & Machinery or
introduction of new product.
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15. SHORT TERM FINANCE
 For a short period upto 1 year.
 Main purpose:- To meet or Finance the day to
day requirements of a business.. E.g. Tradding
business.
 Reffered to as Working Capital Resources.
 Short Term Market = Short Money Market
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17. What is the Financial
management?
 The efficient use of Economic resources viz
Capital funds,….
 Management of the Finance of a Business in
order to achieve financial objectives &
goals…
 Cash Flow
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18. The Importance of Cash Flow
 Financial management as a discipline sprung
out from economics to become a stand alone
profession. That is why we have people that
call themselves financial manager and
investment managers today.
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19. In Finance ,
we can say that ,
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20. The Importance of Cash Flow
 Accounting creates
statements that are
designed to portray
what is physically
occurring in
numbers.
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Finance is
concerned with
current and future
cash flow.

21. Financial ‘GURU’
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Mr. CYRUS MISTRY Mr. AMIT BAPNA

22. About Mr. Cyrus Mistry
 Civil Engineer from Imperial College ,
UK .
 MSc in Management from London
Business School .
 Start carrier with Shapooji Pallonji
Group since 1994.
 Director & Execute of TATA Industries.
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23. Contd…
 He has worked on 93 board , 21 industries
and 15 different organization .
 At present ,
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24. About Mr. Amit Bapana
 Mr. Amit has started his carrier in
Realince at 1999 .
 He has been with Realinance capital
since 2004 .
 Chief Finance Officer of Realiance
Company.
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