This book adopts an enhanced business-oriented methodology for teaching and learning financial management. Aimed at fostering an in-depth and comprehensive understanding of the subject, it takes a holistic approach that melds theory with practical applications to real-world scenarios. The structure of this book is meticulously designed to elaborate on the diverse principles and techniques of financial management. Upon completion, readers will be equipped to scrutinize the annual reports of various companies and analyze the information more effectively.

This book is designed for individuals seeking to understand financial management’s core principles and theories. Primarily, it is tailored for postgraduate students enrolled in business schools. Additionally, undergraduate students pursuing B.Com. (Hons.), B.Com. (Prog.), and B.A. (Prog.) from various universities and professional institutes will also find this book beneficial.

The Present Publication is the 9^th Edition, authored by Ravi M. Kishore and Prof. (Dr) Padma Sai Arora, with the following noteworthy features:

• [Principles and Techniques of Financial Management] are explained in a detailed manner
• [Easy-to-understand Style] has been followed throughout the book to explain the concepts in detail
• [Extensive Descriptive Explanations] are presented in this book, followed by figures and diagrams
• [Cases to Prepare the Base for Financial Principles and Concepts] is included in each of the six parts
• [Case Studies] at the end of each chapter is easy to relate to and has been prepared to make way for discussions
• [Solved Miscellaneous Illustrations] are given for better understanding
• [Practice Questions] Readers can test their knowledge after going through each chapter by solving practice questions
• [Multiple Choice Questions (MCQs)] have also been incorporated to help prepare for quiz/assignment
• [Learning in line with Industry Trends] has been incorporated in this book by giving annual reports of different companies

The chapter-wise schematics of the book are as follows:

• Learning Outcomes
• Case Study
• Concepts
• Keywords
• Summary
• Miscellaneous Illustrations
• Review Questions
• True or False
• Choose the Correct Word
• Choose the Correct Answer
• Discussion Questions
• Practical Exercises
• Case Study

The detailed contents of the book are as follows:

Essentials of Financial Management

• Financial Management – An Overview
• Basic Valuation Concepts – Time Value of Money, Interest Rates, Valuation of Bonds and Risk-Return Analysis
• Strategic Financial Planning

Analysis of Financial Position

• Analysis of Financial Statements
• State of Changes in Financial Position – Fund Flow Analysis
• Financial Statement Analysis using Cash Flow Analysis
• Financial Statement Analysis using Ratio Analysis
• Financial Statement Analysis using Economic Value Added
• Financial Statement Analysis using Financial and Operating Ratios

Investment Decision

• Capital Budgeting
• Risk Evaluation in Capital Budgeting

Financing Decisions

• Cost of Capital and Impact on Firm’s Earnings Per Share (EPS)
• Capital Structure Theories and Value of Firm

Dividend Decisions

• Dividend Theories and Value of Firm

Working Capital Management

• Basics of Working Capital
• Estimating Working Capital
• Inventory Management
• Receivables Management
• Cash Management