Role Of Financial Manager In A Manufacturing Firm

INTRODUCTION
It has become a well known fact that without money a business cannot function consequently an understanding of finance, which is the appreciation of the role of money and its ability to measure. The measure of a business is essential for good management. However, money can be likened to a lubricant, too little and the business is a wash with all types of project for using the surplus cash some of which may be good risks while others may penalized the business. Again money presents its own problems particularly when inflation sets in and as a result the purchasing power will change from time to time.
Now, the role of financial managers becomes imperative consequently, the professions is one of the professions which is still struggle to assume its place in an organizational structure with the increasing complexity in human organization of there has arises more and more.
Specialization of people in various disciplines and therefore finance must take its on position. Financial manager is an expert trained in the field of finance, and the functions include planning for acquisition of funds and utilization of such funds in ways that will maximize the efficiency of an organization. The project researcher intended to project the role of financial manager as regards manufacturing firms and as J balty puts it “an adequate funds and cash flow is essential more than this, a business cannot afford to stand still.
In any competitive field it will be essential for improvement to introduce new products and to expand”. However, despite much publications and emphasis placed on the role of financial manager in any business organizations, most of our policy makers whether in private, public and governmental establishments have not realized these vital roles and the resultant effects are stagnation and collapse of many of our business activities with the claims and counter claims by various professionals and near professional. There is establishment among many business organizations which are confronted with certain problems and which need expert advice. In this case management’s must try to recognize and consult the service of financial manager this alternative in business is to be very carefully considered before a judicious choice can be made.

1.2 THEORETICAL FRAMEWORK
1.2.1 HISTORY SUPPORTING THEORIES
The study of financial management has undergone a lot of changes since its inception as a subject of its own.
According to E.F Briham and F. Weston “during 1940s, 1950s finance was continued to be taught as descriptive institutional subjects viewed from the outside rather than from in his own view stated that at some decades ago, the scope of financial management was circumscribed to the raising of funds whenever needed and no significance was use to be attached to the day to day financial decision making and problem solving. But in the recent years the concern of the financial managers besides his traditional function of raising funds is to determine the size and technology in setting space and direction of growth and in shaping the profitability and risk complexion of the firms by selecting the best asset mix and by obtaining the optimum financing mix the functions are sum margined as:-
(i) Raising of funds to finance projects
(ii) Employment of the funds raised in viable projects.
(iii) Management of cash arising from this prefect
(iv) The return of funds to the financing sources.
1.2.2 SOURCE OF INFORMATION
According data provided management with essential information on the financial status of the organization necessary for its present stability and future well being. It enables the profit to be computed and a balance sheet to be competed from these it is possible to measure the effectiveness of a business and compare its potential with other investment opportunities.
Management must recognize the advantages of accounting data and the benefit derived from its utilization. They must be aware of the need to understand the information presented in accuuntry statements and also realize that annihilated evaluation of the essential financial data can make the entire difference between success and failure. Methods used in measuring an organization’s performance of progress are usually percentages and ratios which are expressed in financial terms.
1:2:3 MANUFACTURING FIRMS
The research into the role of financial manager has become necessary on that most of them are operationally inefficient and much behind in meeting the purpose for which they were established. In fact many of the manufacturing firms in our country are financially unprofitable and their performance calls for drastic review, financially, manager has a leading part to play in decision making process which determines the aspects of profitability and growth. If an industry is to improve on its efficiency, management must recognize that the financial area has an unrepentant role to play as other aspects of the business.

1.3 STATEMENT OF THE PROBLEM
1.3.1 MAJOR PROBLEM
This study entitled, :the role of financial manager in a manufacturing firm “ attempts to determine the extent to which the role of financial manager affects the profitability of manufacturing firms with a particular reference to emanates building product company limited (Emene)
3.2 SUB – PROBLEMS
The project researchers intended to fund out whether :-
i. Emanates Building product (Emene) limited utilizes the services of financial manager ?
ii. The firm has adequate funds for its operation?
iii. The workers are being paid regularly and why.
iv. The firm meets its debts obligations?
v. The firms return on capital employed has been improving?
vi. The firm has generally made an improvement since its inception? And to make recommendation on the way of improving the system.

1.4 PURPOSE OF THE STUDY
The objectives of this study are:
i. Identity the role of financial manager in a manufacturing firm with particular reference to Emenite Building product (Emene( limited.
ii. Determine the contribution of financial manager to Emenite. Building product (Emene) limited with particular regards to ,
a. Capital acquisition
b. Investment decision
c. Profitability
d. Divided policy
e. The general growth and to make recommendation where necessary.

1.5 SIGNIFICANT OF THE STUDY
This study when completed will enable the policy makers of various manufacturing and non – mnanufacting firms and government establishments to re – consider their stand on the realization, acceptance and utilization of the services of financial managers.
Again the study will go a long way to removed the management that without financial manager that they cannot take financial decision and unplement them successfully.
Not only will these it also project the role of financial manager towards organization effectiveness like capital structure, asset structures profitability and general growth. This study will also be of paramount umpestance to all the students in the school of business in particular and will also act as reference material to the school library.

1.6. SCOPE AND LIMITATION
This study is intended to cover the system of financial control as is utilized in Emenites Building product limited Emene as it affects its operations with regards to survival expansion profitability and moreover growth, hence mathematical treatment and application of such system are not within the scope of this study. This is also limited to Emenite Building product limited Emene. The reason behind this limitation is that the researcher is a student facing both time and financial constraints. Another reason is the nature of the topic choosing, many study firms will pose some problem knowing our people’s attitude towards financial matters, being afraid of unknown consequences ranging from management incormpletence to exposure. The project researcher also in his review of elated literatures and studies made use of texts, journals, activities and other write ups. .

1.7 DEFINITION OF TERMS
i. DIVIDEND DECISION: Involve the criteria employed for the allocation of profit to dividends to shareholders and retention in the business for operation.
ii. FINANCE,: Is a body of fact, principles and theories dealing with the raising and using of money by individual, business etc.
iii. INVESTMENT DECISION: Include all the criteria managers in choosing among alternative investment opportunities that is the best one.
iv. FINANCING : Embrace the supervision of a firms cash and other liquid holding with a view to raising additional funds when needed.
v. CONTROL:- Includes the use of readily understood, reliable and standard techniques aimed at identifying deviation from planned objectives and ensuring efficient performance.
vi. FINANCIAL SYSTEM : Consists of institutions and markets which serve companies and individuals in financing the acquisition of capital goods and services in investing of capital and in transferring the ownership of securities.
vii. FUNDS : Are sun of money available in a business organization which is generated internally or externally and which is available for business purpose.
viii. MANAGEMENT :- Mans controlling, directing innovating, planning, co –ordinating etc.. of activities of an organization with a view to ensuring effective and efficient performance.
ix. FINANCIAL RESOURCES:- Includes these parts of a business resources that are in monetary terms.
x. FINANCIAL DECISION:- Involves all the criteria and techniques employed by financial manager to obtain a required fund.
xi. SYSTEM:- Include all the interrelated techniques and various, used in assessing the best sources of financing the best investment opportunities and in ensuring efficient allocation of profits.
xii. CAPITAL MARKETS:- Include the Nigeria industrial development bank the Nigeria Building society insurance companies the stock exchange market, the national provident fund, commercial banks, individual investor etc.