Friday 21 October 2011
This is truly an inspiring book. It not only provides 11 Indian Innovation case studies but also provokes the reader on why he/she can't pull out next radical innovation. The case studies include Dainik Bhaskar, Aravind Eye Hospital, CavinKare, ITC-IBD, Bosch India, Trichy Police, Chola Vehicle Finance, Titan Edge, Shantha Biotech, Surat Transformation and Su-Kam. I would strongly recommend it to every young person, regardless of his/her age. This book could also become a great gift for your dear ones.
Friday 7 October 2011
I conduct Financial Literacy course for my company colleagues. Hence I started to read this book to pick up few ideas to include in my course. Following are my notes from that perspective:
Lessons from Rule No. 2
- Two Rules of Good Financial Management
- Never invest your money without ensuring that the assets you acquire can generate a return which is at least equal to the cost of your capital.
- Invest your money in such a way that the assets will generate an inflow of funds before the liabilities demand an outflow.
- Long-term funds should be used for long-term purposes and short-term funds for short-term purposes.
- Healthy organizations may use, or should use, some long term funds for short-term purposes.
- But no organization should EVER use short-term funds for long-term purposes.
- Healthy organizations must maintain a current ratio of about 2:1 and a quick ratio of a minimum of 1:1.
Not sure whether you can become champ with romancing the balance sheet by merely reading this book, but this book can help you to have a good beginning. :) Written for a layman, Dr Anil Lamba, the author this book, has explained the complex subject of finance in the simplest manner possible. The book reads as if author is having a chat with you. Though it runs more than 200 pages, you are most likely to finish this book in one or two sittings as the book holds your attention very well. As title suggests, the book covers basics of financial statement but it also covers financial topics that need to be known to people working in non-finance departments. These topics include inventory management, working capital management, marginal costing and leverage analysis. I would strongly recommend this book to every first-time manager to understand how his/her actions would affect financial performance of his/her employer.