TERM - 2
SIMULATION ASSIGNMENT - III
FINANCIAL STATEMENT ANALYSIS

Simulation Training Objectives:
This course is designed to prepare you to interpret and analyze financial statements effectively for the purpose of determining the health of a company and also for valuation of companies

Simulation Training Outline:

1. Introduction to Course:  What is Financial Statement Analysis, Overview of Financial Reporting, Principal of Financial Statements, financial Reporting Quality.
2. Analysis of financial statement: Ratio Analysis- solvency ratios, profitability ratios, activity ratios, liquidity ratios, market capitalization ratios ; Common Size Statement ; Comparative Balance Sheet and Trend Analysis of manufacturing, service & banking organizations, Funds Flow and Cash flow Statements Analysis.
3. Analysis of Inventories, Analysis of Long-Lived Assets, Taxes, Debt, Off-Balance-Sheet Assets and Liabilities, Inter-Corporate Investments, Business Combinations, Global Operations.
4. Model of shareholder value, a comparison of accrual accounting and discounted cash flow approaches to valuation, the analysis of profitability, growth and valuation generation in a firm, testing the quality of financial reports, forecasting earnings and cash flows, pro-forma analysis for strategy and planning, analysis of risk and the determination of price/earnings and market-to-book ratios. Analyze Annual Reports of various companies. 
5. Fundamental analysis methods will be examined in detail and applied in cases and projects involving listed companies. Critical Evaluation of Sample Annual Reports,  Strategic Profitability Analysis,  Working Capital Estimation, Advanced Cash Management Techniques,  Advanced Techniques for Management of Receivables.

Suggested Readings:

1. Narayanswami - Financial Accounting: A Managerial Perspective - PHI, 2nd Edition
2. Mukherjee - Financial Accounting for Management - TMH, 1st Edition
3. Ramchandran & Kakani - Financial Accounting for Management  - TMH, 2nd Edition
4. Ghosh T P - Accounting and Finance for Managers - Taxman, 1st Edition
5. Maheshwari S.N & Maheshwari S K – An Introduction to Accountancy  - Vikas, 9th Edition
6. Ashish K. Bhattacharya- Essentials of Financial Accounting  - PHI, New Delhi
7. Gerald L White, Ashwinpaul C. Sondhi, Dov Fried -  The Analysis and Use of Financial Statements – Wiley, 3rd  edition 2002
8. Stephen Penman - Financial Statement Analysis and Security Valuation - McGraw-Hill/Irwin, 2nd edition 2003
9. Eugene E. Comiskey, Charles W. Mulford - Guide to Financial Reporting and Analysis – Wiley, 1st edition 2000
10. Howard M. Schilit - Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports - McGraw-Hill, 2nd  edition,2002