Prix bas
CHF188.00
Habituellement expédié sous 2 à 4 semaines.
Auteur
Sandeep Goel is a Professor of Accounting and Finance and Corporate Governance at the Management Development Institute (MDI) Gurgaon, India. He holds three decades of rich industry and academic experience, and is an accomplished Forensic Accounting, Fraud Risk Management and Corporate Governance professional.
Texte du rabat
This book makes sense of the finance world from a non-finance perspective. It introduces, explains and demystifies essential ideas of business finance to those who do not have a financial background or training.
Contenu
List of figures xv
List of tables xvii
About the Author xix
Preface xxi
Acknowledgements xxvi
Abbreviations xxviii
PART I
Introduction 1
1 Business organisations 3
Meaning of a business organisation 3
Types of business organisations 3
I. Private sector enterprise 4
II. Public sector enterprise 4
III. Joint sector enterprise 4
Types of private sector enterprises 5
1. Sole proprietorship 5
2. Joint Hindu family business 5
3. Partnership 5
4. Cooperative organisation 5
5. Joint stock company 5
6. One person company 7
Types of public sector enterprises 8
Departmental undertakings 8
Statutory corporations 9
Government companies 9
PART II
Financial accounting and analysis 11
2 Fundamentals of accounting 13
Meaning of accounting 13
Branches of accounting 14
Financial accounting 14
Cost accounting 14
Management accounting 15
Objectives of accounting 15
Limitations of accounting 15
Accounting elements 16
Double-entry system of accounting 18
Basis of accounting 21
3 Accounting process 24
Accounting cycle 24
Recording in the 'Journal' 26
Classification into the 'Ledger' 28
Summarising in 'Trial Balance' 31
4 Accounting principles 33
Basic accounting principles 34
A. Accounting concepts 34
Business entity principle 34
Money measurement principle 35
Accounting period principle 35
Cost principle 36
Going concern principle 36
Matching principle 37
Revenue recognition principle 37
Dual aspect principle 37
B. Accounting conventions 38
Materiality 38
Full disclosure 38
Consistency 39
Conservatism 39
5 Financial statements 41
Financial statements 41
Statement of profit and loss 42
1. Revenue from operations (Turnover/sales) 43
2. Other income 43
Operating expenses 44
Finance costs/Non-operating expenses 45
Other expenses 45
Profit before tax/earnings before tax (PBT/EBT) 45
Income tax 45
Profit after tax (PAT) 45
Balance sheet 48
I Assets side of balance sheet 49
II Liabilities side of balance sheet 52
Depreciation accounting 55
Depreciation methods 56
Straight Line Method (SLM) 56
Written-Down-Value Method (WDV) 56
Other Depreciation Methods 57
Statement of cash flows 58
A. Steps to calculate CFO: 60
B. Steps to calculate CFI and CFF: 60
C. Final Step to prepare CFS: 60
Other disclosures in annual report 62
Components of a company's annual report 62
6 Financial analysis 65
Financial analysis: The concept and process 66
1. Common-size analysis 66
2. Trend analysis 69
3. Ratio analysis 71
Ranking and weight based on the DuPont scores 77
Financial analysis of Maruti Suzuki and Tata Motors 78
Indian automobile sector 78
I Profitability analysis of Maruti Suzuki and Tata Motors 82
Operating efficiency analysis of Maruti Suzuki and Tata
Motors 88
Liquidity analysis of Maruti Suzuki and Tata Motors 91
Solvency analysis of Maruti Suzuki and Tata Motors 94
Market analysis of Maruti Suzuki and Tata Motors 96
Corporate cases 98
I Indian telecom sector 99
II Indian banking sector 102
Global landscape 105
A. Apple Inc. (USA) 106
B. Unilever (UK) 107
PART III
Cost accounting and management 109
7 Cost concepts and classification 111
Cost accounting 111
Significance of cost accounting 112
Cost! 112
Elements of cost 113
Cost unit 114
Cost centres 115
Process of costing 115
Cost classification 116
On the basis of traceability 116
On the basis of association 116
On the basis of nature 117
On the basis of controllability 117
On the basis of decision-making 118
Components of total cost 118
Prime cost 118
Factory cost 118
Office cost 118
Total cost/cost of sales 119
Cost sheet 119
Methods of costing 120
Job costing 120
Process costing 121
Techniques of costing 121
Budgetary control 121
Standard costing 122
Marginal costing 122
Absorption costing 122
8 Budgetary control 124
Budgeting 124
Budget 124
Budgetary control 125
Process of budgetary control 125
Types of budgets 126
A. On the basis of time 126
B. On the basis of functions 127
C. On the basis of flexibility 128
Essentials of good budgeting 130
Caselets of different budgets 131
Manufacturing overhead budget 131
Sales overhead budget 131
Cash budget 132
9 Marginal costing and managerial decision-making 135
Marginal cost 135
Marginal costing 136
Cost-Volume-Profit analysis (CVP analysis) 137
Tools of CVP analysis 137
(a) Contribution 137
(b) Contribution margin/P/V ratio 138
(c) Break-even point 138
(d) Margin of safety 140
Managerial decision-making 141
Pricing decisions 141
Key factor 143
Profit planning 144
Make or buy 145
Continue or discontinue? 147
Selection of the best method of production 148
PART IV
Financial management 151
10 Nature of financial management 153
What is financial management? 153
Elements 153
Objectives of financial management 154
Functions of financial management 154
Financial management scenario in India 155
Financial management problems 156
11 Capital budgeting: Concept and application 158
Meaning of capital budgeting 158
Capital budgeting process 159
Capital budgeting projects 160
Indian realty sector 161
12 Time value of money 165
What is time value of money? 165
Methods of valuation 166
A. Compounding 'future value' (FV) 166
B. Discounting 'present value' (PV) 169
13 Estimation of cash flows for capital expenditures 173
Cash flows estimation 173
Relevant cash flows 174
Incremental cash flows 175
14 Capital budgeting appraisal methods 181
I Non-discounted cash flow techniques 182
PBP 182
ARR 183
II DCF techniques 184
Discounted PBP 184
NPV 185
PI/Benefit-cost ratio (B/C ratio) 187
IRR 188
Case: Indian Cloth Mills Ltd. 190
15 Cost of capital 196
What is cost of capital? 196
Classification of costs 197
Computation of cost of capital 197
I Computation of specific costs 197
Beta coefficient and its application 200
Categories of beta 201
II Assigning weights to specific costs 202
III Multiplication of specific costs with weights to get total cost 203
16 Capital structure planning 205
Capital structure defined 206
Types of business finance 206
1. Long-term finance 206
2. Medium-term finance 206
3. Short-term finance 207
Instruments of finance 207
Shares 208
Retained earnings 208
Debentures 208
Institutional finance 208
Public deposits 208
Bank finance 208
Factors affecting capital structure 209
Profitability 209
Liquidity 209
Cost of raising capital 209
Stability of enterprise 209
Control 209
Flexibility of financial structure 209
Capital market conditions 210
Legal requirements 210
Concept of leverage 210
Leverage ratio 210
Fac…