SBM-NMIMS: COURSE TEACHING PLAN

Assurance of Learning AOL Specific

Course
Code
Financial Statement Analysis
Course Title

Course Dr Paritosh Basu, Dr Chandan Dasgupta, Dr Sangeeta Wats, Prof Sudhanshu Pani,
Instructor/s Dr Smita Mazumdar
Credit 1.5
Value
Programme MBA (Core) Trimester - II
& Trimester
Pre- Fundamental knowledge of Financial Accounting
requisite
CLOs – (PLOs as Stated alongside in bracket)
1. Understand relational analyses of financial variables and other tools in assessing
profitability, financial strength and stability and efficiency across time from the
Learning perspectives of multiple stakeholders. (PLO 3a).
Objectives
2. Acquire knowledge about conducting inter-firm comparison using relational tools for
assessing financial performance, including relative valuation of an entity. (PLO 2b)

Learning 1. Achieve application skills for financial tools in assessing financial health of an entity
Outcomes and from the perspectives of multiple stakeholders.
(Must be
connected to 2. Acquire abilities in application of assessment tools for comparatively assess financial
Learning performance, strength and stability of a company vis-à-vis its peers. including
Objectives) valuation of business using relative valuation techniques.

Course
Description

Specific 3 1.5 AOL CLO 1 CLO 2

assessment Credit Credit Instruments
methods (*)
Class 10
Evaluation Participation
Pattern Class test 15 Embedded 15
questions
Group Project 20 Rubric 10 10
submission
Project Viva 5
Total 50
Topics / Sub -topics
Learning Outcome Chapter detail Details of pedagogy adopted
Sessions
if provided session / Article Reference / Case for class engagement - Class
wise Studies Exercises etc.

Financial Analysis Chapter 13 (AHM): Financial Introductory discussion on

1 Tools: Statement analysis Pg 367 – common size financial
Common-sized 369) statements and class exercises
Statements; Trend

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 Analysis and Inter- Pg 7- 49 (Harvard online
firm comparison; module- Finance)
Financial Ratios;
Non-financial ratios
Financial statements of MRF,
Apollo Tyres and JK Tyres

Assessing short term Pg 7- 49 (Harvard online Discussion supplemented by

strength and stability module- Finance) numeric exercises based on the
of a firm:
Financial Ratio analysis –Ivey case
A) Short term
Publishing Note 85K031 (23
2 liquidity and working
pages)
capital.
B) Working capital
management Case: Trinity Electroproducts
efficiency Ltd.

Assessing long term Financial Ratio analysis –Ivey Discussion supplemented by

strength and stability Publishing Note 85K031 (23 numeric exercises based on the
of a firm: pages) case
C) Capital structure,
leverage and
coverage ratios. Case: Trinity Electroproducts
D) Value generating Ltd
3
ability – profitability
with respect to
turnover and
investment; and
Decomposition of
ROCE / ROE – Du-
Pont analysis

Assessing Operating http://www.cengage.com/resour Class exercises

Risks; Financial ce_uploads/downloads/0324594
4 risks; Combined risk; 690_163047.pdf
Implications to
industry

Assessing cash Case: Statement of cashflows: Examining cash flows of three

generation ability of Three examples (HBS 193103- companies over multiple
a firm and PDF-ENG) periods, and analyze
5 interpretation of cash profitability of operations,
flow statements with investment and financing
relational analysis policies using cash flow ratios.

Economic Value EVA note from Annual Report Classroom exercises and
Added (EVA); of Hindustan Unilever Ltd – discussion
Adjustments 2018-19
6 required; Superiority
of EVA; EVA
Drivers and EVA
Centres

Proforma Statements Case: Ezeebuy Retail Ltd. Classroom Exercise

7
and Developing
Financial Plans

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 Multiples and Note on Relative valuation Classroom exercise and
Introduction to (Damodaran) available at discussion
Valuation with http://people.stern.nyu.edu/ada
related financial
8 modar/pdfiles/papers/multiples.
ratios
Types of multiples; pdf (page 1-8; 15-16)
Suitability and Uses
Pgs. 186-193 (Harvard online
of multiples
module –Finance)

Uses of Financial Case: Kwality Ltd: The Numeric exercise and case
Ratios in Prediction - Banker’s Dilemma analysis
9
Altman Z Score and
Beneish’s M Score

Exploring Earnings Dragon Soup and Earnings Case Discussion and analysis
management and the Management (A) (Kellogg
consequences of School of Management,
business decisions on
Northwestern Univ - KEL574-
10 financial reports
Earnings PDF-ENG
Management; Uses
in Forensic
Accounting

Reading List
and Text book
References Accounting- Text and cases, Robert Anthony, David Hawkins, Kenneth Merchant, Tata
McGraw Hill, 13th edition (AHM)
(along with
details of References
year of Financial Accounting for Management, 4th Edition, N Ramachandran and R K Kakani;
Publication) McGrawHill
Introduction to Financial Accounting, C T Horngren, G L Sundem, J A Elliot, D R Philbrick;
Pearson 9th Edition

Prepared by Faculty Team Area & Program chairpersons

Faculty Chair AOL Approved by Dean SBM

Approved by Associate Deans

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