A. Introduction

Financial Management is about preparing, directing and managing the financial activities of an organization to maximize the wealth or produce best value for  shareholders.  Basically, it applies general concepts to raise financial resources and their effective utilization towards achieving the organizational goals. Financial management applies the process of time value of money to create wealth for the business and provide an adequate return on investment considering the risks confronted by organizations. It also ensures that enough funding should be available at the right time to meet the needs of the business. Funds may be managed operating activities of an organization such as acquisition of inventories and payment to employees. Funds may be required for significant additions in the productive capacity of the business. Finally, it provides financial control over critically business activities and investments must be financed in such a way that financing alternatives can be considered at every time to meet overall objectives of the business.