Role of Financial Management Financial management is concerned with the proper management of funds. 

It involves the following.

1. Managerial decisions relating to procurement of long term and short term funds 

2. Keeping the risk associated with respect to procured funds under control. 

3. Utilisation of funds in the most productive and effective manner. 

4. Fixed debt-equity ratio and capital.

Objective of Financial Management: 

The objective of financial management is the maximisation of shareholders’ wealth The investment decision, financial decision and dividend decision help an organization to achieve its objective In the given situation, S limited envisages growth prospects of steel Industry due to the growing demand. To expand the production capacity, the company needs to invest.

How ever, investment decisions will depend on the availability of funds, the financing decision and the dividend decision. However, the company will take those financial decisions which result in value addition. The benefits are more than the cost. This leads to an increase in the market value of the shares of the company.