Book Review Finance Sense - Finance for Non Finance Executives

Almost everything in business eventually boils down to the rupee sign. Hence irrespective of what ever is the primary area of work of any executive, they need a basic grounding in finance and accounting. The book by Prasanna Chandra may help executives to understand the financial and accounting reports used in the business, appreciate the financial implications of their decisions and communicate meaningfully with their colleagues in the language of accounting and finance. The book is divided into five parts which covers key areas of finance and accounting. Part one provides a firm grounding in financial statements, financial statement analysis, accounting mechanics and financial forecasting. The author has managed to explain all important aspects of accounting to finance i.e. accounting concepts and conventions, financial statement, why these need to be analysed, what are accounting models and devices of account, information processing cycle and financial forecasting and computerised financial planning system. Part two discusses the key concepts, tools and systems of cost accounting, budgeting, managerial decision making and strategic planning and management control. Special mention is required of the Chapter on Strategic Planning & Management Control. The chapter has covered areas like goals and objectives, strategy formulation, strategic planning, budget preparation, variance analysis, performance measurement, transfer pricing and management compensation. Part three presents an overview of the financial system, dwells on the ideas of compounding, discounting and introduces the basic risk-return trade-off in finance. Part four covers the key areas of financial management such as capital budgeting, financial strategy, source of finance and working capital management. The last part explores special topics like mergers, acquisition and restructuring, international finance and value based management. In addition, it provides a primer on macro-economics. The book by Prasanna Chandra is an abridged version of his famous book on Financial Management. It required simple treatment or explanations. The third edition is printed by Tata McGraw Hill.

----------* A book review by Prof. Paramjit Sharma, Head, CIT, VAMNICOM, Pune