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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Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course title |
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25DATG713 |
Techniques of Financial Analysis and Appraisal (Theory)
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CO253: Interpret and analyze financial statements. CO254: Analyze the company’s statements using Ratio Analysis CO255: Analyze the company’s statements using Cash Flows. CO256: Measure cost of capital of different sources and apply leverage analysis CO257: Evaluate projects using capital budgeting techniques CO258: Contribute effectively in course-specific interaction |
Approach in teaching: Interactive Lectures, Discussion, Tutorials, Reading assignments; Solving Questions.
Learning activities for the students: Self-learning assignments, Effective questions, Seminar presentation.
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects. |
● Introduction meaning and objectives
● Types of financial analysis
● Devices used in analysing 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
● Concept of cost of capital
● Sources of capital
● Calculation of cost of capital of all sources
● Weighted average cost of capital
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.
• 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-4
[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