Financial Management by Ravi M Kishore: A Comprehensive Textbook for MBA, M.Com and CA Students
Financial Management Ravi M Kishore Pdf.13
Financial management is the process of planning, organizing, directing and controlling the financial activities of an organization. It involves making decisions about how to raise, allocate and use funds to achieve the goals and objectives of the organization. Financial management is essential for ensuring the profitability, liquidity, solvency and growth of an organization.
Financial Management Ravi M Kishore Pdf.13
One of the most comprehensive and authentic textbooks on financial management is written by Ravi M Kishore, a renowned author, educator and consultant in the field of finance. He has over 25 years of experience in teaching, research and consultancy in various institutions and organizations. He has authored several books on financial management, accounting, taxation and corporate law. He is also a member of various professional bodies such as the Institute of Chartered Accountants of India, the Institute of Cost Accountants of India, the Institute of Company Secretaries of India and the All India Management Association.
His book on financial management, titled Financial Management, is a comprehensive and in-depth work on the subject, which meets the requirements of professional and academic courses at higher level. The book covers all the aspects of financial management from basic principles to advanced topics. The book has the following features and benefits:
Lucid and comprehensive presentation of the complex and advanced subject matter, which helps the students in easy understanding.
The book takes account of recent developments on the subject with special emphasis on financial markets, mergers and acquisitions, project management, international financial management, investment management, portfolio theory, corporate restructuring, WTO, corporate governance, etc.
Concepts are explained with number of illustrations and diagrams for clear understanding of subject matter. Statistical data is provided wherever possible.
Summary of the subject matter is given at the end of each chapter and theoretical questions covering all aspects of the subject are given at the end of each chapter.
The concepts are explained with simple illustrations, comprehensive illustrations are given for advanced study.
Number of practical exercises, as well as hints of answer are given at the end of each chapter for self study.
The syllabus of all major universities and professional institutions is covered.
The book is suggested for preparation for the following course papers: MBA, M.Com. Financial Management, Financial Markets, Corporate Restructuring, Working Capital Management, Project Management, Investment Management and Portfolio Theory, Treasury Management, International Financial Management etc. CA Final Management Accounting and Financial Analysis. ICWA Final (1) Advanced Financial Management & International Finance (2) Management Accounting - Financial Strategy & Reporting
Part One: Principles of Financial Management
The first part of the book deals with the basic principles and concepts of financial management. It covers the following topics:
Scope and objectives of financial management
This chapter introduces the meaning, nature and scope of financial management. It also discusses the objectives of financial management such as wealth maximization and profit maximization. It also explains the functions and role of a financial manager in an organization.
Financial statement analysis
This chapter explains the meaning, objectives and limitations of financial statement analysis. It also describes the various tools and techniques of financial statement analysis such as comparative statements, common size statements, trend analysis, ratio analysis, funds flow analysis and cash flow analysis.
This chapter deals with the concept, significance and classification of ratios. It also explains the various types of ratios such as liquidity ratios, solvency ratios, profitability ratios, turnover ratios and market ratios. It also discusses the advantages and limitations of ratio analysis.
Funds flow and economic value added analysis
This chapter covers the meaning, objectives and preparation of funds flow statement. It also explains the concept and calculation of economic value added (EVA) and its advantages and disadvantages.
Cash flow analysis
This chapter covers the meaning, objectives and preparation of cash flow statement. It also explains the difference between cash flow and funds flow statements. It also discusses the various applications and limitations of cash flow analysis.
Analysis of operating and financial leverages
This chapter explains the concept and measurement of operating leverage and financial leverage. It also discusses the impact of leverage on profitability and risk. It also explains the combined effect of operating and financial leverages on earnings per share.
Part Two: Financial Planning and Control
The second part of the book deals with the various aspects of financial planning and control. It covers the following topics:
Capital budgeting decisions
This chapter deals with the meaning, importance and process of capital budgeting. It also explains the various methods of evaluating capital budgeting proposals such as payback period method, accounting rate of return method, net present value method, internal rate of return method, profitability index method and modified internal rate of return method. It also discusses the factors affecting capital budgeting decisions.
Risk analysis in capital budgeting
This chapter covers the concept and measurement of risk in capital budgeting. It also explains the various techniques of incorporating risk in capital budgeting such as sensitivity analysis, scenario analysis, simulation analysis, decision tree analysis and certainty equivalent approach.
Cost of capital and capital structure theories
This chapter explains the concept and significance of cost of capital. It also describes the various components of cost of capital such as cost of debt, cost of preference capital, cost of equity capital and cost of retained earnings. It also discusses the methods of calculating weighted average cost of capital and marginal cost of capital. It also covers the various theories of capital structure such as net income approach, net operating income approach, traditional approach and modigliani-miller approach.
Dividend policy and valuation of shares
This chapter deals with the meaning and determinants of dividend policy. It also explains the various types of dividend policies such as stable dividend policy, constant payout ratio policy and residual dividend policy. It also discusses the various theories of dividend policy such as irrelevance theory, relevance theory, bird-in-the-hand theory, tax preference theory and clientele effect theory. It also covers the various methods of valuation of shares such as dividend discount model, earnings model, price-earnings ratio model and free cash flow model.
Working capital management
This chapter covers the meaning, importance and determinants of working capital. It also explains the concepts and techniques of working capital management such as operating cycle, cash conversion cycle, cash budgeting, receivables management, inventory management and payables management. It also discusses the various sources and costs of working capital finance.
Part Three: Advanced Topics in Financial Management
The third part of the book deals with some advanced topics in financial management. It covers the following topics:
Financial markets and institutions
This chapter introduces the meaning, functions and types of financial markets such as money market, capital market, primary market, secondary market, debt market, equity market, derivatives market and foreign exchange market. It also describes the various financial institutions such as commercial banks, development banks, non-banking financial companies, mutual funds, insurance companies, pension funds and regulatory bodies.
Mergers and acquisitions
This chapter deals with the meaning, types and motives of mergers and acquisitions. It also explains the process and methods of mergers and acquisitions such as amalgamation, absorption, consolidation, purchase method, pooling method and goodwill method. It also discusses the valuation of mergers and acquisitions such as net asset value method, market value method, earnings per share method, price-earnings ratio method and discounted cash flow method. It also covers the financing and accounting of mergers and acquisitions. It also covers the tax implications and legal aspects of mergers and acquisitions.
This chapter covers the meaning, objectives and phases of project management. It also explains the various techniques of project appraisal such as technical analysis, market analysis, financial analysis, economic analysis and social cost-benefit analysis. It also discusses the various methods of project financing such as equity financing, debt financing, lease financing and venture capital financing.
International financial management
This chapter deals with the meaning, scope and challenges of international financial management. It also explains the various aspects of international financial environment such as foreign exchange market, exchange rate determination, exchange rate risk management, international monetary system and international financial institutions. It also covers the various topics of international financial operations such as foreign direct investment, multinational capital budgeting, international working capital management and international portfolio management.
Investment management and portfolio theory
This chapter explains the meaning, objectives and process of investment management. It also describes the various types of investment alternatives such as equity shares, preference shares, debentures, bonds, mutual funds, derivatives and real estate. It also discusses the various theories and models of investment analysis such as security valuation, capital asset pricing model, arbitrage pricing theory and efficient market hypothesis. It also covers the various aspects of portfolio management such as portfolio selection, portfolio revision and portfolio evaluation.
Corporate restructuring and governance
This chapter covers the meaning, types and motives of corporate restructuring. It also explains the various forms of corporate restructuring such as spin-offs, split-ups, divestitures, buyouts, leveraged buyouts and joint ventures. It also discusses the various issues and challenges of corporate restructuring such as valuation issues, legal issues, regulatory issues and human resource issues. It also covers the concept and importance of corporate governance. It also describes the various mechanisms and best practices of corporate governance such as board of directors, audit committee, shareholders' rights, disclosure norms and corporate social responsibility.
In conclusion, this article has provided an overview of the book Financial Management by Ravi M Kishore. The book is a comprehensive and authentic textbook on financial management that covers all the aspects of the subject from basic principles to advanced topics. The book is suitable for students and professionals who want to learn and master the subject of financial management.
If you are interested in reading this book, you can access it online in PDF format by following this link: https://www.scribd.com/document/477928310/01-FM-New-RAVI-KISHOR-pdf. You can also purchase a hard copy of the book from various online platforms such as Amazon or Flipkart.
If you want to learn more about financial management and related topics, you can also check out some other books by Ravi M Kishore such as Strategic Financial Management, Financial Accounting, Corporate Tax Planning and Business Law. You can also refer to some other books by other authors such as Financial Management: Theory and Practice by Prasanna Chandra, Financial Management: Principles and Applications by Sheridan Titman and Arthur Keown, Corporate Finance by Stephen Ross and Randolph Westerfield, Investments by Zvi Bodie and Alex Kane.
Frequently Asked Questions (FAQs)
What is the difference between financial management and accounting?
Financial management is the process of planning, organizing, directing and controlling the financial activities of an organization. Accounting is the process of recording, summarizing, analyzing and reporting the financial transactions of an organization.
What are the main functions of a financial manager?
The main functions of a financial manager are: (a) investment decision: deciding how to allocate funds among various investment opportunities; (b) financing decision: deciding how to raise funds from various sources; (c) dividend decision: deciding how much profit to distribute to shareholders and how much to retain in the business; and (d) financial control: monitoring and evaluating the financial performance of the organization.
What are the advantages and disadvantages of mergers and acquisitions?
The advantages of mergers and acquisitions are: (a) economies of scale: reducing the average cost of production by increasing the output; (b) synergy: creating value by combining the strengths and resources of two firms; (c) diversification: reducing the risk by entering new markets or products; and (d) market power: increasing the market share and bargaining power of the combined firm. The disadvantages of mergers and acquisitions are: (a) overvaluation: paying more than the fair value of the target firm; (b) integration problems: facing difficulties in merging the cultures, systems and processes of two firms; (c) agency problems: creating conflicts of interest between the managers and shareholders of the acquiring and target firms; and (d) regulatory hurdles: facing legal and regulatory challenges from the government and competitors.
What are the factors affecting the cost of capital?
The factors affecting the cost of capital are: (a) risk-free rate: the rate of return on a riskless investment such as government securities; (b) market risk premium: the additional return required by investors for investing in a risky asset over a riskless asset; (c) business risk: the variability of operating income due to changes in sales, costs, competition, etc.; (d) financial risk: the variability of earnings per share due to changes in capital structure, interest rates, etc.; and (e) tax rate: the percentage of income that is paid as taxes.
What are the benefits and drawbacks of international financial management?
The benefits of international financial management are: (a) access to larger and more diversified markets, sources of funds, investment opportunities, etc.; (b) lower cost of capital, higher returns, better risk management, etc.; (c) exposure to different cultures, technologies, best practices, etc.; and (d) contribution to global economic growth, development, integration, etc. The drawbacks of international financial management are: (a) exposure to foreign exchange risk, political risk, country risk, etc.; (b) complexity and uncertainty of international financial environment, regulations, institutions, etc.; (c) higher transaction costs, information asymmetry, agency problems, etc.; and (d) ethical and social issues such as human rights, environmental protection, corporate governance, etc.