Financial Statement Analysis

Paper Code: 
CBFS 402
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To make students learn various techniques of financial Analysis that will help them in analyzing and evaluating financial position of any firm.

12.00
Unit I: 
Introduction-

Content of annual reports, Quality of financial reporting, Reporting regulation in India, .Nature & objectives of Financial Statements, Uses & Limitations of Financial Statements, Stakeholders of financial statements, Income Statement, Income Statement.

12.00
Unit II: 
Analysis of Financial Statements-

Balance Sheet, Cash Flow Statement, Sources of financial information. Types of Financial Analysis.

12.00
Unit III: 
Tools and techniques of financial statement analysis

Ratio Analysis, Cash flow statement. Comparative Statement, Common Size Statement, Du-Pont Analysis, Concepts on sickness, distress.

12.00
Unit IV: 
Report preparation of financial statement analysis,

Types of business combinations, Consolidated financial statements.
Inter-company transactions, profit confirmations, Minority interest, consolidated net income, and consolidated retained earnings.

12.00
Unit V: 
Stock market related ratios

Simple analysis before investing in the shares; understanding annual report; Director’s report etc

Essential Readings: 

• Gupta, Ambrish, "Financial Accounting for Management - An Analytical Perspective", 4th Edition, Pearson Education.2012 Narayanaswamy, R.
• “Financial Accounting – A Managerial Perspective”, 5th Edition , Prentice Hall of India. 2015 Subramanyam, K. R. and John, J.W
• “Financial Statement Analysis”, 12th Edition, Tata McGraw Hill. 2014 Penman, S.H
• “Financial Statement Analysis and Security Valuation”, 4th Edition, Tata McGraw Hill. 2014 Erich, A. H
• “Techniques of Financial Analysis: A Guide to Value Creation”, 16th Edition ,Tata McGraw Hill. 2014

Academic Year: 
2021-2022
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