Techniques of Financial Analysis

Paper Code: 
ATG 143
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  • To introduce researchers to the elements of financial analysis: funds flow analysis, cash flow analysis and ratio analysis.
  • To enhance their problem-solving and decision-making abilities in financial Specialisations.

 

12.00
Unit I: 
Financial Statement Analysis:

Introduction:, Meaning and Objective, Types of Financial Analysis: Devices used in Analyzing Financial Statements: Comparative Financial Statements, Comparative Balance Sheet, Comparative Income Statement

 

12.00
Unit II: 
Financial Statement Analysis:

 

Trend Percentages: Computation of Trend Percentages: Evaluation

Ratio Analysis: Meaning and Rationale, Basis of Comparison, Types of Ratios, Importance and Limitation of Ratio Analysis

12.00
Unit III: 
Statement of changes in financial position: Funds flow analysis

 

Introduction: Concept of Funds: Concept of Flow: Funds Flow Statement, The Need: Managerial Uses: Limitations: Construction of the Funds Flow Statement:

12.00
Unit IV: 
Statement of Changes in Financial Position:

 

Cash Flow Analysis: Introduction: Concept of Cash, Actual and Notional, Construction of Cash Flow Statement: Use of Cash flow Analysis

12.00
Unit V: 
Capital Market Instruments

 

Financial derivatives – stock futures, stock options, index futures, index options

Option valuation techniques : Binomial model, Black Scholes Option Pricing Model, Greeks – Delta, Gamma, Theta, Rho and Vega

Pricing of Futures – Cost of carry model Imbedded derivatives

Commodity derivatives

OTC derivatives -Swaps, Swaptions, Forward Rate Agreements (FRAs), Caps, Floors and Collors.

Essential Readings: 

Text Books:

  • Management Accounting-Khan and Jain(Tata Mc Graw Hill)
  • Financial Management and Policy-Walker and Baugh(Harper and Row)
  • Management Accounting: S. K Singh( Sun India Publications)
  • Financial Management- Theory & Practice: Prasanna Chandra(Tata Mc Graw Hill Publishing Co New Delhi)
  • Financial Management and Policy-V.K Bhalla (Anmol Publications  Pvt Ltd)

 

References: 
  • Management Accounting-H.Chakraborty and S. Chakraborty(Oxfor University Press)
  • Management Accounting and Financial Analysis-Dr S.N Maheshwari(S.Chand& Sons)
  • Management Accounting- N. Vinayakkam & IB Sinha (Himalaya Publishing House)
  • Advance Management Accounting-R.S Kaplan& A.A Atkinson (Prenti
  • Financial Management-I.M Pandey (Vikas Pub House New Delhi)
  • Corporate Financial Management -Basant Raj(Tata Mc Graw Hill)
  • Study Material Published by ICAI
  • Financial Management-Principles & Practice: Sultan Chand & Sons, Darya Ganj New Delhi)
  • Financial Management-S.C Kuchhal(Chaitnaya Publishing House Allahabad)
  • Financial Management-I.M Pandey(Vikas Publishing House Pvt Ltd)

 

Academic Year: 
2019-2020
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