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FSA-R12
PGDM-RM 2012-14: Term-II

Financial Statement Analysis
Credits 1.5
Faculty Name P.K.Mohanty
Program RM-I
Academic Year and Term 2012-13, Term-II



1. Course Description Financial analysis is a part of business analysis. The survival and growth of a business enterprise depends on the financial performance. In order to analyze the performance, a business manager uses certain analytical tools. The objective of this course is to familiarize the students with such tools and develop an insight so that they can draw right conclusions with an understanding of the business environment in which the firm is operated.

2. Student Learning Outcomes (typically 3-5 bullet points)

· Be able to analyse the financial performance of a business entity
· Be able to use accounting information for decision-making

3. Required Text Books and Reading Material

1. Financial Accounting by Gary A. Porter and Curtis L. Norton; Cengage Learning(India Edition),6E
2. Financial Accounting for Management by H.V. Shankaranarayana and H.R. Ramanath, Cengage Learning
3. Financial Accounting – A Managerial Perspective by R. Narayanaswamy
4. Financial Accounting by Ashok Banerjee
5. Financial Accounting for Business Managers by Asish K. Bhattacharya
6. Financial Accounting for Management by Ambrish Gupta
7. Financial Accounting –Reporting and Analysis by Stice and Stice
8. Hand outs

4. Tentative Session Plan

Session 1-4: Statement of Cash Flows and its Analysis: Purpose of Cash Flow Statement, Two methods of reporting cash flow from Operating activities, cash flow from investing activities, cash flow from financing activities, Reporting and Interpreting Cash Flows

Readings: Porter and Norton- Ch. 12, page 700-743, Stice and Stice- Ch.6, page 231-246; R.Narayanaswamy Ch.12, page 584-634

Session 5: Financial Statement Analysis: Understanding the business, objectives of analysis, Tools and Techniques of Analysis, Horizontal analysis, Vertical Analysis, Trend Analysis

Readings: Porter and Norton Ch.13, page 782-818; R.Narayanaswamy Ch 11, page. 525-583

Session 6: Financial Statement Analysis: Tests of Profitability and their Interpretations

Readings: Porter and Norton Ch.13, page 782-818; R.Narayanaswamy Ch 11, page. 499-525

Session 7: Financial Statement Analysis: Tests of Liquidity, Tests of Solvency, and their Interpretations

Readings: Porter and Norton- Ch.13, page 782-818; R.Narayanaswamy Ch 11, page. 499-525

Sessions 8: Financial Statement Analysis: Turnover Ratios, Capital Market Ratios and their interpretations

Readings: Porter and Norton- Ch 13, page 782-818; R.Narayanaswamy Ch 11, page. 499-525

Session 9-10: Financial Statement Analysis: Du Pont Analysis and their interpretations

Readings: Porter and Norton- Ch 13, page 782-818; R.Narayanaswamy Ch 11, page. 499-525

5. Evaluation

1. Quiz : 10 marks

2. Assignment 10 marks

3. End-term Exam. 30 marks

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Total 50 marks

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6. Academic Integrity

As per institute’s norms

Created By: Debasis Mohanty on 09/03/2012 at 02:58 PM
Category: PGPRM-I Doctype: Document

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