Techniques of Financial Analysis

Paper Code: 
ATG 143
Credits: 
4
Contact Hours: 
60.00
Objective: 

Objective:

·         To introduce researchers to the elements of financial analysis tools.

To enhance their problem-solving and decision making abilities in financial specialization

12.00
Unit I: 
Financial statement analysis

Financial Statement Analysis: Introduction; meaning and objectives, types of financial analysis, devices used in analyzing financial statements: comparative statements, comparative balance sheet, comparative income statement. Trend Analysis: Trend percentages: computation of trend percentages

12.00
Unit II: 
Financial statement analysis

Ratio analysis: Meaning and rationale, basis of comparison, types of ratios, importance and limitations . Cash Flow Analysis: Introduction, concept of cash, actual and notional, use of cash flow, construction of cash flow statement

12.00
Unit III: 
statement of changes in financial position

Capital Structure: Concept, factors affecting capital structure, Theories of Capital Structure: Net Income Theory, Net Operating Income Theory, Traditional Theory, Modigliani-Miller Theory, Modern theories of capital structure. Financial and Operating Leverage – Introduction; Meaning of Financial Leverage; Measures of Financial Leverage; Calculation of Earnings Per Share (EPS) and Return on Equity (ROE); Financial and Operating Leverages

12.00
Unit IV: 
cash flow analysis

Capital budgeting; concepts, role and relevance, methods of capital budgeting. Cost of Capital: concept add limitations, sources of capital, calculation of cost of capital of all sources, weighted average cost of capital

12.00
Unit V: 
Investment analysis

V Standard Costing and Variance Analysis: Meaning of standard cost and standard costing, advantage, limitations and applications, Variance Analysis-Material, Labour, Overhead and Sales Variance 12

Essential Readings: 

Suggested Readings:

·         Principles of Financial Management: N.P. Agarwal and R. K. Tailor, Pointer Publishers, Jaipur

·         Financial management : I M Panday (Vikas Publishing House)

·         Corporate Financial management: Basant Raj (Tata McGraw Hills)

·         Financial Management: S C Kucchal ( Chaitnaya Publishing House)

·         Chandra, P., “Financial Management- theory and practice”, (Tata Mc Graw Hill).

·         Rustagi, “Fundamentals of Financial Management”,( Galgotia Publishing House,Delhi)

·         Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India

·         Maheshwari S.N –Financial Management, Sultan Chand and Sons, New Delhi

·         Horne, J.C. Van., “Fundamentals of Financial Management”, 9th ed. (New Delhi Prentice Hall of India 1995).

References: 

References:

Text Books:

·         Financial Management – Khan and Jain(Tata McGraw Hill)

·         Management Accounting – S. K. Singh( Sun India Publications)

·         Business System -  N.P. Agarwal and R.K. Tailor( RBSA Publishers)

Management Accounting – S. N. Maheshawari(S. Chand & Sons

Academic Year: 
2018-2019
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