Financial Management - HDFC

A
SYNOPSIS ON
“FINANCIAL MANAGEMENT”
AT
“HDFC BANK LIMITED”
Submitted in partial fulfillment of the requirement for the award of the
MASTER OF BUSINESS ADMINISTRATION
BY
ROHAN P SIDHANTHI
H.T NO: 1422-20-672-062
Department of management studies
CSI INSTITUTE FOR P.G. STUDIES
(Affiliated to Osmania University)
East marredpally, secunderabad, telengana
2020-2022
1. INTRODUCTION
In our present day economy, “FINANCE” is defined as the provision of money at the time
when it is required. Every enterprise, whether big, medium of small, needs finance to carry
on its operations and to achieve its targets.
Finance is so indispensable today that it is the lifeblood of an enterprise. Without adequate
finance, no enterprise can possibly accomplish its objectives.

“Finance” is the life blood and nerve system of any business organization. Just as circulation
of blood, is necessary in the human body to maintain life. Finance is necessary in the business
org. for smooth running of the business.
Financial management involves managerial activities concerned with the procurement and
utilization of funds for business purpose the finance function does with procurement of
money taking in to consideration of today’s as well as future need and its effective utilization.
Since finance is required to purchase of machinery and raw materials, to pay salaries and
wages also for day-to-day expenses.
Financial management entails planning for the future of a person or a business enterprise to
ensure a positive cash flow. It includes the administration and maintenance of financial
assets. Besides, financial management covers the process of identifying and managing risks.
The primary concern of financial management is the assessment rather than the techniques of
financial quantification. A financial manager looks at the available data to judge the
performance of enterprises. Managerial finance is an interdisciplinary approach that borrows
from both managerial accounting and corporate finance.
Some experts refer to financial management as the science of money management. The
primary usage of this term is in the world of financing business activities. However, financial
management is important at all levels of human existence because every entity needs to look
after its finances.
Financial Management: Levels
Broadly speaking, the process of financial management takes place at two levels. At the
individual level, financial management involves tailoring expenses according to the financial
resources of an individual. Individuals with surplus cash or access to funding invest their
money to make up for the impact of taxation and inflation. Else, they spend it on
discretionary items. They need to be able to take the financial decisions that are intended to
benefit them in the long run and help them achieve their financial goals.
From an organizational point of view, the process of financial management is associated with
financial planning and financial control. Financial planning seeks to quantify various
financial resources available and plan the size and timing of expenditures. Financial control
refers to monitoring cash flow. Inflow is the amount of money coming into a particular
company, while outflow is a record of the expenditure being made by the company.
Managing this movement of funds in relation to the budget is essential for a business.
At the corporate level, the main aim of the process of managing finances
Is to achieve the various goals a company sets at a given point of time. Businesses also seek
to generate substantial amounts of profits, following a particular set of financial processes.
Financial managers aim to boost the levels of resources at their disposal. Besides, they
control the functioning on money put in by external investors. Providing investors with
sufficient amount of returns on their investments is one of the goals that every company tries
to achieve. Efficient financial management ensures that this becomes possible.
2. NEED FOR STUDY
 Need of financial management study to diagnose the information contain in financial
statement. So as to judge the profitability and financial position of the firm.
 Financial analyst analyses the financial statements with various tools of analysis
before commanding upon the financial health of the firm.
 Essential to bring out the history.
 Significance and meaning of the financial statements.
3. SCOPE OF THE STUDY

1. The study has made a humble attempt at evaluation of risk and return only in India
context.
2. The study was under taken with some market assumptions but in reality they could
not be applicable.
3. The study is restricted to only NSE listed companies.
4. The other statistical tools for further in depth analysis could not be used due to
constraint of time.
5. While the majority of financial plans indeed have wealth-building component like a
good financial plan always has room to deal with unforeseen events.
4. OBJECTIVES OF THE STUDY:
The main objective of the project is to analyze that financial management of the company
using the financial statements vise, comparative and ratio analysis for this propose of
analysis. It has been utilized the secondary data of the company HDFC BANK LIMITED
( formerly HDFC BANK LIMITED) i.e., annual reports from 2017-2018 to 2020-2021 this
will help in evaluating the company’s liquidity conditions profitability long term solving and
operational efficiency.
 To determine the financial management and weakness of the firm.

 To diagnose the information contained to financial management so as to judge the
profitability and fondness of the firm.
 To establish relationship between various figure or the income statement and balance
sheet.
5. HYPOTHESIS
Hypothesis: The review of empirical literature reveals that financial management practices
influence organizational performance. On the basis of such evidence following hypotheses
can be developed.
H1:Investment appraisal techniques have significant impact on organizational performance
H2:Financial Assessment has significant impact on organizational performance
H3:Capital structure decision has significant impact on organizational performance
H4:Dividend Policy has significant impact on organizational performance
H5:Working Capital Policy has significant impact on organizational performance
6. LIMITATIONS:
1. ONLY INTERIM REPORTS:

Only interim statements don’t give a final picture of the concern. The data given in
these statements is only approximate. The actual position can only be determined when the
business is sold or liquidated.
2. DON’T GIVE EXTRA POSITION:
The financial statements are expressed in monetary values, so they appear to give
final and accurate position. The values of fixed assets in the balance sheet neither represent
the value for which fixed assets can be sold nor the amount which will be required to replace
these assets.
3. HISTORICAL COSTS:
The financial statements are prepared on the basis of historical costs or original costs.
The value of assets decreases with the passage of time current price changes are not taken
into account. The statements are not prepared keeping in view the present economic
conditions. The balance sheet loses the significance of being an index of current economic
realities.
BIBLIOGRAPHY
REFERENCES
BOOKS, JOURNALS AND MAGAZINES:
1. HARVARD BUSINESS REVIEW, JANUARY/FEBRUARY, 2099

2. JOURNAL OF ECONOMICS AND BUSINESS, MAY/JUNE, 2097
3. BUSINESS TODAY, FEBRUARY, 2000
4. FINANCIAL ANALYSTS JOURNAL, MAY/JUNE, 2097
5. BUSINESS AND ECONOMIC REVIEW, JUL-SEP, 2096
6. THE JOURNAL OF PORTFOLIO MANAGEMENT, 2096
7. HARVARD BUSINESS REVIEW, MAY/JUNE, 2090
8. THE JOURNAL OF FINANCE, 2093
9. JOURNAL OF APPLIED CORPORATE FINANCE, 2093
10. FINANCIAL MANAGEMENT BY I.M. PANDEY
14. FUNDAMENTALS OF FINANCIAL MANGEMENT BY C.VAN HPRNE AND JOHN
M.WACHOWICZ, JR.
WEBSITES:
www.googlefinance.com
www.hdfcbank.com
www.heterodrugs.com
www.fimancialanalysis.com

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A

“HDFC BANK LIMITED”

Submitted in partial fulfillment of the requirement for the award of the

MASTER OF BUSINESS ADMINISTRATION

H.T NO: 1422-20-672-062

Department of management studies

CSI INSTITUTE FOR P.G. STUDIES

(Affiliated to Osmania University)

East marredpally, secunderabad, telengana

finance, no enterprise can possibly accomplish its objectives.

3. SCOPE OF THE STUDY

 To determine the financial management and weakness of the firm.

1. ONLY INTERIM REPORTS:

1. HARVARD BUSINESS REVIEW, JANUARY/FEBRUARY, 2099

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