MBAB 424: Financial Statement Analysis
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/course, http://www.iibf.org.in, https://students.icai.org
Tools/Software: MS Excel, Power BI, Tableau
MBAB 517: Stock and Forex Trading Lab
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