This course will enable the students to assess the financial performance, evaluate the financial position and make informed decisions based on the analysis of financial statements.
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Learning and teaching strategies |
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Course Code |
Course title |
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Techniques of Financial Analysis and Appraisal (Theory) |
CO 193: Interpret and analyze financial statements. CO 194: Analyze the company’s statements using Ratio Analysis CO 195: Analyze the company’s statements using Cash Flows. CO 196: Measure cost of capital of different sources and apply leverage analysis CO 197: Evaluate projects using capital budgeting techniques CO198:Contribute effectively in course- specific interaction |
Approach in teaching: Interactive Lectures, Discussion, Tutorials, Problem solving sessions, Presentations Learning activities for the students: Self-learning assignments, Case Study analysis, Presentations, Group discussions |
Continuous Assessment Test, Semester End Examinations, Quiz, Solving numerical problems, Assignments, Class Presentations, Individual and group projects. |
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25DATG703 |
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• Introduction meaning and objectives
• Types of financial analysis
• Devices used in analyzing financial statements
• Comparative statements
• Common Size statements
• Trend Analysis: Trend percentages, computation of trend percentages
• Meaning, importance and limitations
• Financial ratios: Liquidity, Leverage, Activity
• Profitability Ratios, Market test ratios
• Profitability analysis, Income measurement analysis, Revenue analysis , Cost of sales analysis , Expense analysis , Variation analysis
• Introduction, concept of cash
• Uses and limitations of cash flow statement
• Construction of cash flow statement
Financial and Operating Leverages
• Introduction- Meaning and importance of financial and operating leverage
• Computation of Financial Leverage and Operating Leverages
• EBIT-EPS Analysis
• Combined leverage- Meaning and Computation
Cost of Capital
• Concept of cost of capital
• Sources of capital
• Calculation of cost of capital of all sources
• Weighted average cost of capital
• Meaning and importance
• Methods of capital budgeting- Traditional and discounted techniques
• Advantages and disadvantages of different methods of capital budgeting
• Dave, B. B. Financial Reporting. Vrinda Publication.
• Lal, J. Financial Reporting & Analysis. Himalaya Publication.
• Maheshwari, S. N. An Introduction of financial Reporting. Vikash Publishers.
• Tulsian, P. C. Financial Reporting Concept & Framework. Sultan Chand & Sons.
Suggested Readings:
• Ahuja, N. Financial Accounting & Analysis. Taxman.
• Bhattacharya, A. K. Coporate Financial Reporting & Analysis. PHI India.
• Sharma, D. G. Financial Reporting. Taxman.
E-content:
• https://resource.cdn.icai.org/66493bos53751-cp3-u2.pdf [2]
• https://resource.cdn.icai.org/66638bos53803-cp1.pdf [3]
Reference Journals:
• Business Perspectives and Research
• FIIB Business Review
• Harvard Business Review
• IUP Journal of Accounting Research
Links:
[1] https://accountingtaxation.iisuniv.ac.in/courses/subjects/techniques-financial-analysis-and-appraisal-3
[2] https://resource.cdn.icai.org/66493bos53751-cp3-u2.pdf
[3] https://resource.cdn.icai.org/66638bos53803-cp1.pdf
[4] https://accountingtaxation.iisuniv.ac.in/academic-year/2025-2026