CEVAP:

Financial Planning has got many objectives to look forward to, but mainly it serves for determining capital requirements in short and long term and proper capital structure for the relevant time frame. Financial planning;

• helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.

• ensures that the supply of funds are easily and effectively invested

• helps in making growth and expansion programmes which helps in long-run survival of the company

• reduces uncertainties with regards to changing market trends which can be faced easily through enough funds, and

• helps in reducing the uncertainties which can be a hindrance to growth of the company. This helps in ensuring stability and profitability in concern.