Anil Lamba’s book, Romancing the Balance Sheet, shines like a laser beam for anyone who owns, runs or manages a business. It is a self help book for the new business tycoons.
Romancing the Balance Sheet is a book with latest edition of 2013 written by Anil Lamba who is a Chartered Accountant, International Corporate Trainer and Financial Literacy Activist. This book is a well refined version of various online training sessions covering diverse aspects of Finance Management for all those who have faced challenging situations while experiencing finance for the first time. Anil Lamba is also known as author of the bestselling books like Balance Sheet va Finance Samjun Ghetana.
This book is divided into fifteen chapters and is further subdivided into six sections. Each section has been well explained by the author covering all viewpoints of problem solving that may arise at present or in future.
Section 1 talks about getting your basics right which states that even if you are a non finance person even then you can easily deal with financial statements and also it gives us a glimpse about what really profit is and how inventory impacts profit.Section 2 deals with the concept of managing our finances better.It mentions about two golden financial management rules ,the first rule being “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” and the second rule being “Invest your money in such a way that the assets will generate an inflow of funds before the liabilities demand an outflow”. Thereby Anil Lamba suggests that if a person goes by these golden rules he will be able to manage his finances better. In further sections Mr. Lamba describes how an individual can maximize his profit as we can see that in today’s era it has become important to get profits and also to maintain assets and liabilities in a business. Similar to this, Break even analysis is also an important concept which is a point where there is no profit no loss and hence its analysis is very important to carefully understand about the business.
During my course at IILM, I have covered this book in elective “Corporate Restructuring” in 2nd year which is a very good book of around 200 pages. I would recommend it to anyone who is interested in managing or running a business. This book helps us not only to know about the balance sheet but also how to prepare the fund flow statement and maximize profits in our business.
