Study On Financial Management&Control Of Valin Group

In recent years, with the implementation of assets reorganization, horizontalcombination, M&A and business expansion, the group company in China has developedrapidly. How to achieve effective control of subsidiaries is the biggest problem of theparent company after M&A. At present, the level of the financial management and controlvaried widely due to some historical reasons, the reform of economic system and manyother factorsSome problems lie in Group companies, that is, financial management operatedindependently by subsidiaries, the outdated concept, and the week financial supervision.Thus the costs, expenses, investment and financial management are out of control. Theefficiency of the group can’t be fully reflected. All of these have great influences on thesustainable management and the sound development of the company.The paper has a research on the status of Valin Group’s financial management andcontrol model. The research bases on analyzing the theories of Group’s characteristics,financial management and control and the developing characteristics of steel industry. Itpoints out the current status of the control mode in Valin Group. In order to improve theconcept and the mode, the paper makes analysis and discussion about the status. And aneffective way is proposed to solve the problems of centralization and decentralizationbetween parent and subsidiary companies. Under the guide of the effective way "strategiccontrol, operational synergies", a new financial management&control mode is builtbetween strategic planning and strategic control. As for the Group’s financial managementand control problems, this article makes some improving suggestions in seven aspects,which provide theoretical reference to promote the sustainable development and therealization of strategic objective in the company.