Summary |
The basic intention of the book on “financial wisdom” is to help the readers appreciate and develop the basic financial skills needed to take wise decisions for the organizations to create value. Every decision need to be financially evaluated and managers across functions need to know the basic finance in order to justify their decisions in the right perspective. The book would essentially enhance the knowledge and skill in the following areas.
1. Analyse the financial reports published in different formats and draw useful conclusions
2. Use the financial information to take considered decisions
3. Speak the logic of finance and accounting to justify actions
4. Distill critical information to take strategic financial decisions for the benefit of the company
Chapter 1-5 basically addresses to the question. “How to read a balance sheet?”. It also provides a broad understanding of the basic financial statements and their high utility value in analysing business scenarios. The Chapters 6-7deals with basic cost accounting and the cost implications of any decision. It ends with a very contemporary theme of activity-based costing, which has enabled companies around the world to identify cost drivers and cut costs. Chapters 8-10 are based on practical experiences of budgeting and forecasting. These are extremely important for monitoring and control. Chapters 11-12 enunciates the evaluation of bonds on time value of money. The chapters 13-15 are more tuned towards devising financial strategies based on debt-equity, dividend and working-capital decisions of a company. Chapters 16-18 talks of the raising of finance abroad in the emerging global economic scenario. The Chapters 19-21 deals with very contemporary themes of HR accounting, M&A and EVA
Overall, the book provides a wholesome reading in finance to satisfy the basic appetite of a manager. It also enhances the hunger to know more about corporate practices, which is amply exemplified through cases in almost every chapter.
|
