A small presentation on the major roles of a CFO/ Financial Manager

1. Presented by :
Ajeeth M Ramanan
Phase I

2. The senior manager responsible for overseeing
the financial activities of an entire company. The
CFO's duties include financial planning and
monitoring cash flow. He or she analyzes the
company's financial strengths and weaknesses
and suggests plans for improvement.
The CFO is similar to a treasurer or controller in
that he or she is responsible for overseeing the
accounting and finance departments and for
ensuring that the company's financial reports are
accurate and completed on time.

3. The CFO reports to the president, but has a major say
in the company's capital structure, investments and
how the company manages its income and expenses.
The CFO works closely with other executives and
plays a major role in any company's success,
especially in the long run.
Becoming a CFO requires extensive financial
management experience as well as educational
credentials in finance and/or accounting.

4. 1. Raising of Funds
The Financial Manager / CFO is the person for raising funds for
the company. It is up to the Chief financial officer/ Financial
Manager to assess and acquire the optimum and best way of
funding for the company.
Assessing the need of the situation the financial manager
would prefer Debt or Equity.

5. 2. Understanding Capital Markets
Shares of a company are traded on stock exchange and there is a
continuous sale and purchase of securities. Hence a clear
understanding of capital market is an important function of a financial
manager.
When securities are traded on stock market there involves a huge
amount of risk involved. Therefore a financial manger understands
and calculates the risk involved in this trading of shares and
debentures. Its on the discretion of a financial manager as to how
distribute the profits.

6. 3. Profit Planning
Profit earning is one of the prime functions of any business
organization. Profit planning refers to proper usage of the profit
generated by the firm. A healthy mix of variable and fixed factors of
production can lead to an increase in the profitability of the firm.
Fixed costs are incurred by the use of fixed factors of production such
as land and machinery. In order to maintain a tandem it is important
to continuously value the depreciation cost of fixed cost of
production.

7. 4. Allocation of Funds
Once the funds are raised through different channels the next
important function is to allocate the funds. The funds should be
allocated in such a manner that they are optimally used. In order to
allocate funds in the best possible manner the following point must
be considered
• The size of the firm and its growth capability
• Status of assets whether they are long term or short tem
• Mode by which the funds are raised.
These financial decisions directly and indirectly influence other
managerial activities. Hence formation of a good asset mix and
proper allocation of funds is one of the most important activity

8. 5 . Dispersal of Profits
The financial manager has to decide how much to retain for
ploughing back and how much to distribute as dividend to
shareholders out of the profits of the company.
The factors which influence these decisions include the trend of
earnings of the company, the trend of the market price of its shares,
the requirements of funds for self- financing the future programs
and so on.

9. 6 . Financial Control
Evaluation of financial performance is also an important function of
financial manager. The overall measure of evaluation is Return on
Investment (ROI).
The other techniques of financial control and evaluation include
budgetary control, cost control, internal audit, break-even analysis
and ratio analysis. The financial manager must lay emphasis on
financial planning as well.

10. Mr. Raghuram Rajan
Governor of Reserve Bank of India and
the CFO for the country.
Mr. Ganesh P
Chief Financial Officer of Godrej Industries

11. Mr. Ravi Sud
Vice President and Chief Financial
Officer Hero Corp
Mr. Koushik Chatterjee
Chief Financial Officer Tata Steel

12. Mr. S K Joshi
Chief Financial Officer Bharat
Petroleum Corporation Limited
Mr. Y M Deosthalee
Chief Financial Officer Larsen and
Tuobro Holdings