Post-Graduate Diploma in Management (BFS)-I

(PGDM-BFS)-I (2020-22 Batch)

Term-II

Area: Finance

Course Title – Financial Statement Analysis

Course Faculty: Prof. Sachin Choudhry

Contact:0120-4083333

Email:, schoudhry@imt.edu,

Office: Room # 6, Faculty Wing 1, Gr Floor, Old Academic Block

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Course Description:
The course focuses on tools and techniques of Financial Statement Analysis. It has been
designed to enable the students to comprehend and analyze non-banking corporate financial
statements. The course is designed to provide an understanding of the role and relevance of
accounting function in an organization and that of an outside financial analyst. Course coverage
includes understanding of financial statements and correlating them to the environment in which
the company operates.

Learning Objectives:
This course endeavors to develop students with the following specific learning objectives –

1. To develop an understanding of the nature of accounting and its role in business

decision-making.
2. To comprehend and analyze financial statements demonstrating both technical and
analytical capabilities.

3. To be able to apply accounting tools and techniques for better decision

making.
4. Learn how to use accounting information to analyze firms’ current and future
performance.

Pedagogy:
The course shall be delivered essentially through a fusion of lectures, exercises, and by
discussing real life financial statements to develop students’ ability to read and analyze them.
Total 14 sessions of 1 hr 30 minutes each would be conducted, except the last two sessions
which will be 60 minutes each. Students are encouraged to interact with the faculty during the
entire duration of course delivery and particularly during analyzing situations.

Course Requirements:

i. Since much of the course material requires class discussion, it is important that you are
prepared for the class and present and defend your ideas. Preparation for class includes
having read the assigned material.

ii. The class will be divided into a number of groups. For all group assignment(s), each
group will submit its recommendations/solutions meeting the deadlines specified by the
faculty. Late submissions will not be accepted.

iii. Class participation will be based on the value you add to the class through your
questions, statements, and comments. It is the quality of these that is more important
than the quantity.

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iv. This course involves lots of numbers. Students are advised to bring to the class a
calculator.

v. Mobile phones shall strictly be switched off before the start of each session. Silent mode
is not permissible to ensure focused learning.

Evaluation
Quiz : 30%
Class Participation : 10%
Project : 20%
End Term : 40%

Specific Assessment Intended objectives to be assessed

Method 1 2 3 4
Quiz √ √

Class Participation √ √ √ √

Project / Cases / √ √ √ √
Assignments

End Term √ √ √ √
Examination

Group Project

The group project will be an important learning tool of the course. It is essentially an application
of the classroom learnings. The project, while not being highly complicated, will require some
deep thinking by the students before forming conclusions.

Assignments

i. Short Case Report: A short case report may need to be submitted.

ii. Additional assignments may be given during the course.

Recommended Text Book

Financial Statement Analysis, K R Subramanyam & John J Wild, McGraw Hill (India) Pvt Ltd

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Reference Books
1 Corporate Financial Reporting & Analysis, First Edition, PHI Learning Private Ltd by Asish K
Bhattacharya.

2.Essentials of Financial Accounting, Asish K. Bhattacharya, PHI

3. Financial Accounting – A Managerial Perspective, 6e, R Narayanaswamy, PHI

4. Accounting – Text and Cases, Robert N. Anthony, David F. Hawkins and Kenneth A. Merchant, Tata
McGraw Hill.

5. Financial Accounting, Weygandt, Kieso, Kimmel, Wiley

6. Financial Reporting and Management Accounting, William J Bruns Jr., Thomson South-Western.

Journals
 The Chartered Accountant
 Management Accountant
 Finance India
 Journal of Accounting and Finance

Relevant Websites
 www . icai.org : ICAI
 www . my icwai.com :ICWAI
 www. Icsi .edu : ICSI
 www.mca.gov.in
 www.clb.nic.in
 www.fasb.org
 www.iasb.org

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 Course Outline: Session/Module/Reading Material

Session Topic Reading

Material/Case
1 Capital & Revenue Expenditures Textbook Chapter 4, pp
238-39
2 Corporate Balance Sheet Handouts as given by the
Faculty
3-5 Reading and comprehending a Handouts as given by the
complete set of Financial Faculty
Statements
6-8 Analyzing Financial Statements – Handouts as given by the
Tools of FSA Faculty

9-10 Business Combinations & Textbook Chapter 5

Consolidated Financial Statements

11-12 Analyzing Investing Activities Textbook Chapter 4

13-14 Analyzing Earnings Quality Textbook Chapter 2