SVKM’s NMIMS ASMSOC – Course Outline

Course Code 742FI0C011

Course Title Financial Statement Analysis
Course Dr. Jayesh Manjrekar
Instructor/s Prof. Vinit Mehta
Prof. Nishant Parekh
Prof. Hardik Pathak
Dr. Kushagra Goel
Course 4
Credit
Program and BBA Semester III
Semester
Pre- Students should know the basics of Financial Statements i.e., Balance Sheet, P&L
Requisite and CFS.
Learning 1. Apply fundamental conceptual tools in decision making (PLO 1b)
Objectives 2. Analysis, appraisal and interpretation of data which is used in decision making
(PLO 2a)
3. Demonstrate ability to work in groups (PLO3b)
Learning CLO 1: To help students in developing analytical and critical thinking abilities.
Outcomes CLO 2: To equip students with the ability to understand, interpret and analyse
financial data and other financial information for proper decision making.
CLO 3: To help students to study, organise and disseminate information to their
peers.
Course The course covers the basics of financial statements, annual report, techniques for
Description doing financial statement analysis such as Common size, Trend, Comparative,
Ratio analysis, CFS, FFS, EVA and MVA
Evaluation Specific % AOL Intended CLOs to be
Pattern Assessment Weightage Instruments Assessed
Methods / Task
CLO CLO CLO
1 2 3
Mid Term Test 20 Test √ √
(20 marks: To be
conducted
between 6th & 8th
October)
Presentation 15 Presentation √ √ √
(15 marks: On a
continuous
basis)
Assignment 15 Assignment √ √ √
(15 marks: On a
continuous
basis)
End Term (50 50 Test √ √
marks)
100

1
 Course Session Plan

Session Topics / Module Chapters (Mention Page Numbers) /

Articles / Cases / Material and
Activities
Mention Topic / Module with Learning
Outcome
1-9 Topics - Introduction to Financial Statement - Lecture notes, PPT
Vertical Statement – Profit & Loss A/c,
Balance Sheet and Cash Flow statement,
Accounting Equation
Learning outcome:
Students should get familiarized with
financial statements.
10-12 Topics – Understanding Annual Reports and Lecture notes, PPT
Users of Financial Statements
Learning outcome:
Students should be able to identify relevant
information in the Annual Report and how to
use it.
13-14 Topics – Accounting concepts, conventions Lecture notes, PPT
and principles: Entity, Money Measurement,
Historical cost, Matching, Accrual,
Materiality, Going concern, Consistency and
Basics of DTA & DTL
Learning outcome:
Students should be able to understand basic
accounting concepts and conventions.
15-34 Topics - Ratio Analysis (including Reverse Lecture notes, PPT, Financial
Ratios), P/E, PEG, Du Pont Analysis (3 stage Management by
& 5 stage), Calculation of Operating Cycle Khan and Jain (8th Edition, 2018) –
Time (OCT) and factors affecting OCT Chapter 6
Learning outcome:
Students should be able to calculate ratios
and understand and analyse financial
statements with respect to the quality of
financial reporting, balance sheet issues and
interpret warning signs.
35-42 Topics - Comparative, Trend & Common Lecture notes, PPT, Financial
Size Analysis Management by
Learning outcome: Khan and Jain (8th Edition, 2018) –
Students should be able to do inter and intra Chapter 6
firm analysis.
43-49 Topics - EVA & MVA (including Cost of Lecture notes, PPT, Financial
Equity (CAPM), Cost of Debt, Cost of Management by
Preference, WACC (preferably MV weights) – Khan and Jain (8th Edition, 2018) –
all to be covered briefly) Chapter 11
Learning outcome:
Students should be able to calculate EVA &
MVA and identify how the above can add
value and help an investor while investing in
a company

2
 50-55 Topics - Fund Flow Statement (FFS) Lecture notes, PPT
Learning outcome:
Students should understand the concept of
fund and its importance and should be able
to prepare a FFS
56-60 Topics - Cash Flow Statement (CFS) (Indirect Lecture notes, PPT, Financial
Method) Management by
Learning outcome: Khan and Jain (8th Edition, 2018) –
Students should be able to prepare and Chapter 5
analyse a CFS

Prescribed Text Books:

Reading In addition to the books mentioned chapter wise as aforementioned, following are the
List and additional text books:
References

Financial Management by I. M. Pandey (12th Edition – 2021)

Financial Management by Prasanna Chandra (10th Edition, 2019)

References:

Corporate Finance by Ross, Westerfield, Jaffe, Jordan, Kakani – 12th Edition – 2021
Corporate Finance by Berk, Demarzo, Harford – 3rd Edition, 2019
Financial Management by Titman, Keown, Martin – 13th Edition, 2019

Prepared by Faculty Approved by Program Approved by Associate Deans

Members Chairperson
Dr. Jayesh Manjrekar
Prof. Vinit Mehta
Prof. Nishant Parekh
Prof. Hardik Pathak
Dr. Kushagra Goel

Approved by I/C Dean –

ASM SOC