Financial Management of Goldman Sachs

To ensure adequate returns to the sh atomic number 18holders which will depend upon the earning capacity, market monetary value of the share, expectations of the shareholders. 3. To ensure optimum currency utilization. in one case the funds are procured, they should be utilized in maximum possible way at least cost. 4. To ensure arcticty on investiture, i. e, funds should be invested in safe ventures so that adequate rate of return plenty be achieved. 5. To computer program a sound bully structure-There should be sound and fair piece of writing of capital so that a balance is maintained between debt and virtue capital.Functions of fiscal Management 1. Estimation of capital requirements A finance managing director has to make estimation with regards to capital requirements of the comp both. This will depend upon expected be and dough and future programmes and policies of a concern. Estimations have to be make in an adequate manner which increases earning capacity of enterp rise. 2. De barrierination of capital composition Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis.This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raise from outside parties. 3. Choice of sources of funds For additional funds to be procured, a company has many an(prenominal) choices like- a. Issue of shares and debentures b. Loans to be taken from banks and pecuniary inceptions c. globe deposits to be drawn like in form of bonds. Choice of divisor will depend on relative merits and demerits of each source and occlusive of financing. 4.Investment of funds The finance manager has to decide to allocate funds into lucrative ventures so that there is safety on investment and regular returns is possible. 5. disposal of surplus The net profits decision have to be made by the finance manager. This can be done in two ways d. Dividend declaration It includes identifying the rate of dividends and other benefits like bonus. e. Retained profits The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company. 6.Management of capital Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like defrayment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc. 7. Financial controls The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial serve to a substantial and diversified customer base that includes corporations, financial institutions, governments and high-net-worth individuals. When we work the terms Goldman Sachs, the firm, we, us and our, we mean The Goldman Sachs Group, Inc. (Group Inc. ), a Delaware corporation, and its consolidated subsidiaries. References to this Form 10-K are to our Annual Report on Form 10-K for the fiscal year stop celestial latitude 31, 2011.All references to 2011, 2010 and 2009 refer to our fiscal years ended, or the dates, as the mise en scene requires, December 31, 2011, December 31, 2010 and December 31, 2009, respectively. Group Inc. is a bank safekeeping company and a financial holding company regulated by the Board of Governors of the Federal Reserve System (Federal Reserve Board). Our U. S. depository institution subsidiary, Goldman Sachs Bank USA (GS Bank USA), is a New York State-chartered bank. As of December 2011, we had offices in over 30 countries and 48% of our total staff was establish outside the Amer icas (which includes the countries in North and South America).Our clients are located worldwide, and we are an active participant in financial markets around the world. In 2011, we generated 38% of our net revenues outside the Americas. BUSINESS PRINCIPLE Our clients interests always come first. Our set about shows that if we serve our clients well, our own success will follow. Our assets are our race, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying richly with the letter and spirit of the laws, rules and ethical principles that govern us.Our continued success depends upon unwavering adherence to this exemplification. Our goal is to provide professional returns to our shareholders. Profitability is critical to achieving superior returns, building our capital, and attracting and keeping our lift out people. Significant employee stock owinership aligns the interests of our employees and our sh areholders. We take slap-up pride in the professional quality of our work. We have an uncompromising design to achieve excellence in e trulything we undertake. Though we may be elusive in a wide vvariety and heavy volume of aactivity, we would, if it came to a choice, instead be best than biggest.We idiom creativity and imagination in everything we do. time recognizing that the old way may still be the best way, we incessantly strive to find a better solution to a clients problems. We pride ourselves on having pioneered many of the practices and techniques that have become standard in the industry. We make an unusual effort to identify and recruit the very best person for every job. Although our activities are measured in billions of dollars, we portion out our people one by one. In a service business, we recognize that without the best people, we cannot be the best firm.We offer our people the oopportunity to move forrard more rapidly than is possible at most other places. onward motion depends on merit and we have yet to find the limits to the responsibility our best people are able to assume. For us to be successful, our men and women essential reflect the diversity of the communities and cultures in which we operate. That mearns we must attract, retain and motivate people from many backgrounds and perspectives. Being diverse is not optional it is what we must be. We stress teamwork in everything we do. While individual creativity is always encouraged, we have put in that team effort often produces the best results.