S' Limited is manufacturing steel at its plant in India. It's enjoying a buoyant demand for its product as economic growth is about 7 to 8% and the demand for steel is growing. It is planting to set up a new steel plant to cash on the increased demand it is facing. It is estimated that it will require about Rs. 5,000 crores to set up and about Rs. 500 crores working capital to start the new plant.

Explanation

The role of financial management in this company will be deciding:
(i) Size and composition of fixel assets.
(ii) Amount and composition of fixed assets. ,
The amount of long-term and short-term financing.
(iv) Fixing debt enquity ratio in capital
While playing this role the main objective of finance manager will be maximisation of wealth of enquiry shareholders.