In this present globalized, digitalized and competitive business environment, role of financial management is growing up. Financial Management is an important part for any business firm. The financial managers of firms must have the knowledge about the concept, theories, tools, models and practices of financial management for smooth running of business activities. In view of this context and realities, Tribhuvan University has designed course on Financial Management for the students pursuing Bachelors in Business Administration. The course focuses on imparting students with basic knowledge and skilled required for financial decisions.

This book has been prepared strictly based on new curriculum of Bachelors in Business Administration program of Tribhuvan University. However, this book is useful to Bachelor in Business Administration students of other Universities like Pokhara University, Kathmandu University, Purbanchal University, Mid-Western University and other Universities. This book may also be suitable for corporate practitioners to learn about financial management. Therefore, objective of this book is to provide students an understanding the fundamental concepts, principles, tools and techniques of financial management and their optimum utilization in real life situations of the business firms.

The whole book has been divided into eight chapters based on new curriculum of financial management for Bachelors in Business Administration program of Tribhuvan University. Each chapter begins with learning objectives. An utmost attempt has been made present the text in simple language, which has been further supported by suitable examples. The key terms used in each chapter are given on margin with their meaning. Adequate numbers of illustrative problems have been solved and placed in each chapter to revise what students have learnt in the text. The chapter summary has been presented in each of the chapter with an objective to help students to understand this major coverage in the text. Further, subjective questions and various numerical problems are also given at the end of each chapter. Wherever, applicable cases have been designed to impart analytical skill of the students and suggest functional recommendation to improve financial management.

I have consulted a number of books written by various authors in preparing this book. I am indebted towards the authors of those books. In addition, I have received invaluable suggestions, inspirations, supports and comments from my seniors, academicians, colleagues, practitioners and professionals. I am equally indebted towards them.

I would like to thank Mr. Bhesh Raj Adhikari, Managing Director, Ayam Publication for providing necessary logistic support and warm appreciation to Mr. Resham Shrestha for his skillful contribution in typing and designing to bring the book in this form. At last, but not least, I appreciate to all the staff members of Ayam Publication and Distributers who help me to bring out the book in this shape.

I have extended my utmost effort to keep the book error free. However, I undertake full responsibilities for errors. I welcome to all readers for constructive comments, feedback and invaluable suggestions for the further improvement of the book in next edition.