Managment

MBAB 424: Financial Statement Analysis

Course categoryManagement Studies

SEMESTER II

MBAB 424: FINANCIAL STATEMENT ANALYSIS

Hard Core: 3 Credit

 

Prerequisite: Basic knowledge in Financial Accounting

Learning Objective:

1.     To analyze and interpret Financial statements for Managerial Decision Making

2.     To understand the role of Information Technology for analyzing Financial Statements

Learning outcome:

1.      To gain knowledge and skills in analyzing and interpreting financial statements.

2.      To acquire knowledge to apply efficient and effective approach to rescheduling, interpreting and analyzing financial statements

Methodology:

Lecture, Discussions, Exercise, Case studies, Assignments and mini projects

 

Unit I: Financial Analysis Tools and Techniques- Objectives of Financial Statement Analysis – Horizontal vs. Vertical Analysis - Tools and Techniques of Financial Statement Analysis – Sources of Information – Standards for Comparison – Comparative, Common-Size and Trend Analysis.

 

Unit II: Ratio Analysis Classification – Profitability Ratios - Short Term Liquidity Ratios - Operating Performance and Efficiency Ratios– Capital Structure and Long Term Solvency Ratios – Market measures Ratio – Analyzing Bank Financial Statements – Ratios for Trading, Manufacturing and Service organizations. Forecasting Financial Statements - One Year Projection – Sensitivity Analysis – Contribution Margin Analysis – Projecting Financial Flexibility – Multiyear Projection

 

Unit III: Fund and Cash Flow Analysis- Concept of Funds – Funds Flow Statement – Statement of Changes in working capital - Calculation of Funds from operation – Sources of Funds – Applications of Funds – Preparation of Funds Flow Statement. Uses and Structure of Cash Flow Statement – Preparation of Cash flow statement – Determining Net Cash flow from Operating Activities - Direct and Indirect Method - Determining Cash flow from Investing Activities - Determining Net Cash flow from Financing Activities – Reporting Cash Flows – Interpreting the Cash Flow Statement.

 

Unit IV: Cost-Volume-Profit Analysis- Marginal Costing – Assumptions of Marginal Costing – Marginal Costing vs. Absorption Costing – Profit /Volume Ratio – Cost-Volume-Profit Analysis – Break-Even Analysis – Margin of Safety – Managerial Applications of Marginal Costing.

 

Unit V: Budgetary Control and Variance Analysis- Budget, Budgeting and Budgetary Control – Essentials of Budgetary Control – Budgeting vs. Forecasting –Classification and Types of Budgets – Zero-Base Budgeting – Activity based Budgeting – Analysis of variance –Material, Labour, Overhead and Sales variances.

 

Text Books and Reference Books:

1.      MartinS. Fridson, Fernando Alvarez, Financial Statement Analysis: A Practitioner's Guide, Wiley India Private Ltd Finance, Fifth Edition,2019-20.

2.      ShashiK.Gupta&R.K.Sharma,ManagementAccountingPrinciplesandPractice,KalyaniPublishers,14th Edition,2019-20.

3.      K.Scott Proctor, Building Financial Models with Microsoft Excel–A Guide for Business Professionals, Wiley India Private Ltd Finance,2019-20.

4.      JohnJ.Wild, K.R.Subramanyam, Financial Statement Analysis, Mc Graw Hill Education, Latest edition

 

Open Resources: https://swayam.gov.in/coursehttp://www.iibf.org.in, https://students.icai.org

 

Tools/Software: MS Excel, Power BI, Tableau

 

MBAB 517: Stock and Forex Trading Lab

Course categoryManagement Studies

MBA: BANKING TECHNOLOGY DEGREE PROGRAMME

 III SEMESTER

MBAB 517: Stock and Forex Trading Lab

Hard Core 2 Credits

Prerequisites: Basic knowledge on Financial Market Operation

 Learning Objectives: Prepare Students - 

·        To introduces the operations of Securities market

·        To understand the Trading process, settlement and legal frameworks

 Learning outcome: Students who complete this course can do stock and Forex trading

 

UNIT-1 - SECURITIES MARKET AND ITS OPERATION - Primary Market – Secondary Market – Key Indicators of secondary market - Market Capitalization, Market Capitalization Ratio, Turnover, Turnover Ratio – Products and Participation – Market segments and their products.

UNIT-2 – FOREX MARKET AND ITS OPERATION – Forex market and its organisation – Exchange Rates and its calculations – Forex Transactions – Types of Forex market – Forex market operations.

UNIT -3 - ONLINE TRADING - Procedure/process involved in performing share trading - OCITE - Neat system – BOLT System - market types - trading system users hierarchy - local database - market phases - logging on - log off/exit from the application. Online Forex Trading – Operations – procedures.

Opening of Trading and DEMAT Accounts – Procedure for opening Trading and DEMAT accounts – Trading Vs. Investment – Steps to be followed for trading and Investment.

UNIT–4 - CLEARING, SETTLEMENT AND RISK MANAGEMENT - key terminologies used in clearing and settlement process - transaction cycle - settlement agencies -clearing and settlement process – Risk management in Trade and settlement – Depositories and their Roles. Legal Frameworks – SEBI - Role of SEBI regarding the protection of investor - FEDAI Regulations – Role of RBI.

Unit -5 - FUNDAMENTAL VALUATION CONCEPTS - Time value of money – Fundamental Analysis - understanding financial statements - Ratio analysis – Economic Analysis - Technical analysis – Different Techniques Market Capitalization and calculation of Market Capitalization - Index – Types – Calculation of Index – Market return and Beta Calculation

Text Books:

1.      EVERYTHING YOU WANTED TO KNOW ABOUT STOCK MARKET INVESTING - Network 18 Publication Pvt. Ltd –

2.     2 Edition, 2017 2. Sid Bhattacharjee, Generate Daily Income from Financial Market, Partridge India, 2014 November

References:

1. Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House Pvt. Ltd, 2nd edition, 2012. (Text Book)

2. V. A. Avadhani, Investment and Securities Market in India , Himalaya Publishing House.

3. Prasanna Chandra, Security Analysis and Portfolio Management , Tata McGraw-Hill.

4. SanjeevAgarwal, A Guide to Indian Capital Market , Bharat Publishers

5. Ravi Puliani and Mahesh Puliani, Manual of SEBI , Bharat Publication