function of a corporate financial manager

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Page 1: Function of a corporate financial manager

Welcome

To Our Presentation

Page 2: Function of a corporate financial manager

Member Of Our Group

Name ID

S.M. Al-Shahriar BBA120304790

Amit Hasan Prince BBA120304808

Md. Momin Mia BBA120304783

Subha Saha BBA120304832

Page 3: Function of a corporate financial manager

Presentation TropicFunction of a Corporate Financial Organization manager

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IntroductionIn Bangladesh now different public ltd. organizations are operating there business. And every organization now involved attracting the share holders and new people who are interested to invest in share market. Activities of different part of a organization increase the efficiency of the total organization. In this presentation we will try show how a financial manager perform within a Corporation. Here we took Beximco Pharmaceutics as selected firm.

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Objectives of the studyBroad ObjectiveBy following on board question/objective the presentation is completed, to know overall about the company’s “Financial manager’s performance” of Beximco pharmaceuticals Ltd. The presentation is generated for knowing about the financial activities of the manager of the Beximco pharmaceuticals Ltd. To develop self-knowledge. To develop skill. To develop work experience.

Specific objectiveSpecific objective of the study is to know about the Function of a Corporate Financial Organization manager

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About Beximco Group BEXIMCO Group is the largest private sector industrial conglomerate in Bangladesh engaged in diverse business areas. BEXIMCO comprises of five publicly listed companies and sixteen private companies. The Group turnover in 2014 was BDT 18.5 billion. BEXIMCO employs 35,000 people and has 230,000 shareholders. BEXIMCO’s shares constitute 4.84% of the market capitalization of DSE.

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Sister concerns of the company

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About Beximco Pharmaceuticals LtdBeximco Pharmaceuticals Ltd. (BPL) is a member of the Beximco Group – the largest private sector business conglomerate of Bangladesh. Beximco Pharma, the largest pharmaceutical as well as bulk drug manufacturer of Bangladesh started its journey back in 1980

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BPL is the first company to receive National Export Trophy (Gold) in 1994-1995, which was the very first year of introduction of such award by the government of Bangladesh. This is the highest national recognition for excellence in Export .Beximco Pharmaceuticals Ltd. Has also been awarded National Export Trophy (Gold) recently for two consecutive years 1998-1999 & 1999-2000.It is the only company to be the record 3 times winner of this award for its outstanding export performance.

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Shares of Top Ten Pharma Companies:PharmaceuticalCompanies Market Share inTerms of Sales

Square Pharmaceutical Ltd. 17.46%Beximco Pharmaceuticals Ltd 9.93%Incepta 8.03%Acme 7.09%Opsonin 5.23%SK+F 5.44%ACI 5.44%Aristo Pharma 5.70%Orion 3.42%Drug International 3.78%Other 28.52%

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Statement of P/L and Other Comprehensive Income

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Functions of financial manager 

Investment decisions of financial manager The most important decision. It begins with the firm determining the total amount of assets needed to be held by the firm. There are 2 types of investment decision: 

Capital Investment Decision – Involves large sums of money. The impact is critical. Examples acquire a new machine or to set up a new plant.Working Capital Investment Decision – a more routine or schedule form of decision. Examples are determination of the amount of inventories, cash and account receivables to hold within a certain period.

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Investment rulesCAPM operations and investment activities are regulated by following rules and regulation:Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2001

Guidelines on Prevention of Money Laundering & Combating Financing of Terrorism for capital market intermediaries.

The income Tax ordinance, 1984

The trust ACT, 1882 (ACT No.11 of 1882)

The stamp ACT, 1899 (ACT No.11 of 1899)

Amendment of Securities and Exchange Commission (Merchant Bank and Portfolio Manager) Rules, 2006.

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Decision criteriaFinancing Decision The important decision which finance manager has to take is deciding source of finance.

Priority of specific sourcesCost, Risk, Cash Flow Position, Control, Considerations Floatation Cost, Fixed Operating Cost, State of Capital Market

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Decision criteria (cont…)

Working Capital Management DecisionCash conversion cycle, Cash Management, Inventory Management, Marketable securities management, Accrual Management

Dividend Decision:We found that beximco provide both cash and stock dividend

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From the overall findings we can say BFL Financial Managers are to efficient to use all necessary techniques to maintain the firm financially fit. They easily use all financial techniques to keep their firm’s financing efficiency.

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Recommendation The financial targets should met; There should not difficulties in revenues’ and expenditure’s management; There should be adequate financial information for making management decisions. Should clarify the areas in which there are losses or missed benefits; Identify factors for reducing/increasing the profitability; Optimized financial management processes, including planning, budgeting, revenue and

expenditures’ management, financial and management reporting; Should Improve decision making process.

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Conclusion: In any country corporate financial managers play a great role in the country’s economy. Pharmaceutical sector is one of the fast growing and most developed scientific sector in Bangladesh. The market is highly competitive. Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company. Beximco Pharma is also the largest exporter of pharmaceuticals from Bangladesh. Recently, BPL has successfully made its footmark in the global market when it made its debut on the London Stock Exchange as the first Bangladeshi company to be listed in the world’s most prestigious bourse. This has added challenge to the Corporate Financial manager to manage his dept. efficiently with a global standard .

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