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

Financial Analysis of Performance
There is a gulf between accounting profi ts and cash fl ow. After establishing the relevance of fi nancial statements, Prof. S Sundararajan of IIMB, the author, illustrates the causes of this apparent gulf. Beyond a point, ratio analysis has its own limitations. Accounting policy choices can camoufl age the true picture. The objective reality can be understood only through cash fl ow statements. Such statements also enhance corporate transparency. Accounting standards legislation in India is moving in this direction. The author analyses the P & L statements and Balance Sheets of the horology giant, Titan Industries over three accounting periods to illustrate the criticality of cash fl ow statements. Balance sheets may not reveal the whole story; as for cash fl ows, they reveal the whole truth, the complete truth and nothing but the truth.
FM/AC5

24 Mins

25 Mins

40 Pages
Equivalent classroom time: 4hrs