Finance is a scare resource, and it has to be managed effectively and efficiently. Many enterprises come to grief mainly because of inefficient Financial Management. Financial Management is responsible for maintaining the credit importance and credit standing of an enterprise as well as for generating the right amount of funds at the right time. But by and large, business undertakings in India have not given due importance to Financial Management. The present study of Lanco industries limited in Chittoor district with particular reference to financial management. This study is useful for the future expansion of the industry. The net profit of the Lanco Industries was also negative during three years and during the remaining years it fluctuated raising from high to low. The reason for it was high manufacturing, selling and administrative expenses, and there was no proper control to reduce the interest charges. It indicates the inefficiency of administration.