Comment on the following: The treasury function is concerned with management of funds at the micro level, while the financial management function is an integral part of the management.

The treasury function is concerned with management of funds at the micro level. It means that once the funds have been arranged and investments avenues identified, handling of the funds generated from the activities of the firm should be monitored with a view to carry out the operations smoothly. Since funds or cash is the lubricant of all business activity, availability of funds on day to day basis is to be ensured by the treasury manager. The role of treasury management is to manage funds in an efficient manner, so that the operations in the area of finance are facilitated in relation to the business profile of the firm. The objective of treasury management is to execute the plan of finance function. Execution of the plan takes care of the issues arising in routine operations of the firm which have a bearing upon the funds position. The objective of financial management is to establish, coordinate and administer as an integral part of the management, an adequate plan for control of operations. In line with the twin objectives of investment and financing, the finance manager has to take responsibility for all decisions pertaining to these areas. In the finance function, a macro view of the requirements and uses of funds is to be taken. The finance manager has to arrange the funds according to the approved capital structure of the firm.