Financial Management is the planning, organizing, directing and controlling of the financial activities such as procurement and utilization of funds by the enterprise. It means applying general management philosophies and principles to financial resources of the enterprise.
Financial management at NTE covers:
Investment decisions : that includes investment in fixed assets (called as capital budgeting). Investment in current assets is also a part of investment decisions called as working capital decisions.
Financial decisions : They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.
The financial management at NTE generally concerned with procurement, allocation and control of financial resources. The basic objectives of this are:
1. To ensure regular and adequate supply of fund (liquidity).
2. To ensure adequate returns to the shareholders (Return on Investment).
3. To ensure optimum fund utilization.
4. To minimize risk on investment,
5. To plan a sound capital structure (There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital)