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    Objective of The Report

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    Anshika Saini

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    © All Rights Reserved
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    Objective of The Report

    Uploaded by

    Anshika Saini
    4 views3 pages

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    Objective of the Report

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    4 views3 pages

    Objective of The Report

    Uploaded by

    Anshika Saini

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    OBJECTIVE OF THE REPORT

    This project executed to know what is precisely the Financial


    Planning. How is it carried out ? Who carries it out? Why is it carried out?
    When it will be carried out?? What is the interest of carrying it out?

    To understand the awareness of Financial Planning and Education


    among the individual investors

    To analyze the investment behavior of Investors and also to


    statistically test the interdependence of various attributes of
    investments.

    To take an overview of the investor's short and long-term goals and


    objectives.

    To have the current financial strengths and weaknesses and effect of


    the financial plan for the investor.

    To study the financial objectives anchored to current resources for the


    investor.

    To give a particular summation of all recommendations.

    To suggest an appropriate financial plan for mutually selected


    recommendation

    To also give a comprehensive economic overview of the financial


    plan for the investor ,supported by financial statements and the other
    parties.

    To follow step by step enforcement and monitoring plan.

    Estimating the capital requirement


    Determining the investment or capital required for a business is the
    commencing step of a financial plan. The capital requirement is
    divided into two categories:
    1 .Short-term capital
    2 .Long-term capital
    Capital requirements are affected by multiple businesses needs such
    as the ratio of the requirement for current and fixed assets, operation
    expenses, etc .

    Estimation of sources, availability, and timing of funds

    This particular activity is time-consuming and requires precision in


    terms of execution. The required funds should be made available at
    the appropriate times in alignment with the business needs. It also
    includes estimating fund requirements for different purposes in the
    business .Financial planning aids primarily by determining the
    cheapest sources of funds and ensuring availability at the right time.

    Determining the Capital structure for the business

    The capital structure of a business refers to the composition of total


    internal and external debt towards the shareholder’s capital. Financial
    planning includes determining an effective debt
    -equity ratio of the business both short-term and long-term.

    Avoiding unnecessary generation of funds

    One may imagine that having an excess of funds can never be a bad
    thing. But that’s a misconception. An unnecessary excess and
    shortage of funds, both, are expensive affairs. An important function
    of financial planning is to ensure that the business does not raise
    unnecessaryresources. Excess funds are idle assets. They don’t earn
    revenues for the business, moreover,
    incur their own cost.
    Tackling financial risks:
    Financial planning helps identify beforehand the operational and
    financial risks of a business. Asa result, effective strategies can be
    prepared to counter such identified risks and issues. This way ,the
    business can operate smoothly while also saving money and time.

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