CORE CONCEPTS OF MANAGEMENT
MARKETING MANAGEMENT
FINANCIAL MANAGEMENT
HUMAN RESOURCES MANAGEMENT
OPERATIONS & PRODUCTION MANAGEMENT

Introduction to Financial Statement Analysis
This lesson, authored by Prof. S Sundararajan of IIMB, reiterates the emerging truth about record keeping of fi nancial transactions - that fi nancial records are an important tool to generate information for effective management. This is more important than mandatory activities to meet the requirement of the law. This lesson provides an idea of how meaningful conclusions can be drawn from the accounting system and how this information can be used to ascertain the fi nancial health of the organisation. It explores the calculation and interpretation of various fi nancial ratios. Status ratios and solvency ratios are covered. Performance ratios are dealt with in detail through caselets. Titan Industries, the horology giant, from the house of Tatas, is one such case. The interdependency of these ratios is explained using the Du Pont Chart. Additional inputs include discussions on limitations of ‘Financial Ratio Analyses’ and how these can be overcome. Additional learning comes from the use of fi nancial ratio analysis to formulate questions and address specifi c issues for inter-fi rm comparison.
FM/AC4

24 Mins

25 Mins

70 Pages
Equivalent classroom time: 10hrs