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Research Article | Open Access
Volume 14 2022 | None
Challenges of Corporate Finance Management in Indian Context: A SurveyBased Study of Experts’ Opinion
Ajay Sharma
Pages: 9928-9932
Abstract
In the Indian context, corporate finance management faces several unique challenges. One of the key challenges is the complex regulatory environment. India has stringent regulations and compliance requirements, which can be overwhelming for companies to navigate. These regulations cover areas such as foreign investment, taxation, capital markets, and corporate governance. Corporate finance managers need to stay updated with the ever-changing regulatory landscape to ensure compliance and avoid penalties. Another significant challenge is accessing capital and managing funding requirements. Even though India has a strong banking system, getting money can be difficult, particularly for small and medium-sized businesses (SMEs). It is challenging for businesses to raise money for working capital requirements or expansion due to a lack of accessible capital, high-interest rates, and collateral requirements. Additionally, managing cash flow effectively becomes crucial to sustaining operations and meeting financial obligations. Currency volatility and exchange rate fluctuations pose another challenge in corporate finance management. India's economy is subject to external factors such as global economic conditions, trade policies, and geopolitical tensions. Fluctuations in the currency value can impact import/export costs, profitability, and debt servicing for companies with foreign currency exposure. Managing currency risks through hedging strategies and maintaining adequate reserves become imperative to mitigate potential losses.
Keywords
Regulatory Environment, Compliance Requirements, Capital Markets, Corporate Governance, Funding Requirements, Cash Flow, Currency Volatility, Talent Acquisition, Talent Retention
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