Workshop on Financial Planning and Bank Loan by Binaya Ratna Shakya

On 4 th September, the module Financial Management and Decision Making to Managers involved a workshop on Financial Planning and Bank Loan at Embark College to MBA students. The workshop was led by Mr. Binaya Ratna Shakya and was aimed at developing the practical knowledge of the students in the financial planning processes and bank financing in the process of decision making in organizations. The session was to connect some of the theoretical financial concepts to the practical financial practice in relation to managerial practice. Mr. Shakya started the workshop by explaining the significance of financial planning as one of the main managerial tasks, its significance in maintaining sustainability of an organization as well as making sound decisions. He talked about the benefits of financial planning in the growth of business, control of risks and long term strategic goals. Based on his work experience, he was able to bring out the practical aspects that managers need to put into consideration when trying to reconcile financial plans with organizational objectives. One of the substantial areas of the workshop was the bank loans and the mechanisms of financing. Mr. Shakya described various forms of bank loans, lending terms, documents needed, and method of assessment adopted by the financial institutions. He reiterated that managers should evaluate the financial structures they can use with keen consideration of cost of capital and ability to repay, cash flow implications, and financial risk. The practical examples were applied to demonstrate the way business comes to the banks to be financed and how financial decision may impact directly operational and strategic results. Another area that was discussed during the session was the correlation between financial statements and loan appraisal. The students were instructed on how bank evaluates balance sheets, income and cash flow statements when evaluating loan proposals. This assisted students in relating learning in the classroom regarding financial analysis to practical application in banking and corporate finance. Engaging and interactive discussions enabled students to pose questions and think over the financial decision-making issues of managers in dynamic business settings. At the workshop, the MBA students were able to come to a better understanding that financial planning is a strategic management tool and not necessarily an accounting activity. Their power to appraise financing options and value the managerial implication of bank loans and financial decisions were fortified, as a result of the session. It was also able to stimulate critical thinking among the students on the importance of responsible financial management in business as well as corporate management. This workshop was very valuable to the learning objectives of the Financial Management and Decision Making for Managers module and supported the practice-based and industry-oriented education of Embark College. Such sessions have helped the institution to keep the MBA students abreast with relevant financial knowledge that can help them make informed managerial decisions in the contemporary competitive business environment.