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Master of Business Administration course aims at providing inputs to the students relevant to the business industry and trade so that they can function in different organizations and face the challenges arising therefrom. The course not only aims at providing knowledge and skills in different areas of management but also provides inputs necessary for the overall development of the personality of the students.

The structure of the Course is designed in a way that students have to study the core courses from different functional areas of management that are made compulsory. Advertising and Sales Promotion. Business Research Methods.

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Akilandeewswari, Dr. Soundarapandian, K. Krishna Sindura Dugana, Dr. Nireekshana T. Bhavani J. Sujith Kumar P. Researcher has to analyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific knowledge. Comparative statement. Trend Percentage. Ratio Analysis. Cash Flow Statement. Gaurav Narang 62 B.

Gaurav Narang 63 B. They report profitability and the financial position of the business at the end of accounting period. The team financial statement includes at least two statements Gaurav Narang 64 B. Thus the financial statement provides a summarized view of financial positions and operations of a firm. The first task of financial analysis is to select the information relevant to the decision under consideration to the total information contained in the financial statement.

The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of inference and conclusions. Financial statement is the process of selection, relation and evaluation. Features of Financial Analysis o To present a complex data contained in the financial statement in simple and understandable form.

Gaurav Narang 65 B. He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not.

If the aim is find out. Earning capacity of the enterprise then analysis of income statement will be undertaken. On the other hand, if financial position is to be studied then balance sheet analysis will be necessary. It will involve the grouping similar data under same heads. Breaking down of individual components of statement according to nature. The data is reduced to a standard form. The significance and utility of financial data is explained for help in decision making.

Such analysis indicates the trends and the increase or decrease in various items not only in absolute figures but also in percentage form. This analysis indicates the strengths and weaknesses of the firm.

This analysis is also called as dynamic analysis because it also shows the trend of the business. For this type of analysis we generally use common size statements and the ratio analysis. It involves a study of quantitative relationship among various items of balance sheet and profit and loss account. This type of analysis is static analysis because this is based on the financial results of one year.

Vertical analysis is useful when we have to compare the performance of different departments of the same company. Among these two types of analysis, horizontal analysis is more useful because it brings out more clearly the trends of working of a firm.

This gives us more concrete bases for future planning. Hence internal analysis is made by the management. Internal analysis is more reliable and helpful for financial decisions. This analysis is made by external parties such as creditors,investors,banks,financial analysis etc.

On The Basis Of Number Of Firms a Inter-Firm Analysis : When financial analysis of two or more companies or firms are analyzed and compared over a number of accounting period, it is called inter-firm analysis. Similarly when financial statements of two or more years of the same firm are analyzed and compared it is also called as intra-firm analysis. This is quite complicated analysis. These are also termed as techniques or tools of financial analysis.

Out of these, and enterprise can choose those techniques which are suitable to its requirements. The principal techniques of financial analysis are:- a. Comparative financial statements b. Common-size statements c. Trend analysis d. Ratio analysis e.

Funds flow analysis f. Cash flow analysis g. Break even point analysis a. Such statements not only show the absolute figures of various years but also provide for columns to indicate to increase ort decrease in these figures from one year to another. In addition, these statements may also show the change from one year to another on percentage form. Such cooperative statements are of great value in forming the opinion regarding the progress of the enterprise. Objectives purpose or significance of comparative financial statements 1.

To simplify data 2. To indicate the trends 4. To enable forecasting 5. To indicate the strengths and weaknesses of the firm 6. To compare the performance 7. To analyse expenses 8. To analyse profits Gaurav Narang 68 B. Comparison and analysis of financial statements may be carried out using the following tools: 1. Comparative Balance Sheet : The comparative balance sheet shows increase and decrease in absolute terms as well as percentages ,in various assets ,liabilities and capital.

A comparative analysis of balance sheets of two periods provides information regarding progress of the business firm. The main purpose of comparative balance sheet is to measure the short- term and long- term solvency position of the business.

Comparative Income Statement : Comparative income statement is prepared by taking figures of two or more than two accounting periods,to enable the analyst to have definite knowledge about the progress of the business. Compartative income statements facilitate the horizontal analysis since each accounting variable is analysed horizontally.

In common-size income statement, by assuming net sales as i. Similarly, in common —size balance sheet ,total assets are assumed to be i.

Objectives of common size statements 1. Presenting the change in various items in relation to total assets or total liabilities or net sales. Establishing a relationship. Providing a common base for comparison.

Types of common size statements 1. Common-Size Balance Sheet : A common —size balance sheet is a statement in which total of assets or liabilities is assumed to be equal to and all the figures Gaurav Narang 69 B. That is why it is known as percentage balance sheet. Common-size balance sheet facilitate the vertical analysis since each item of the Balance Sheet is analyzed vertically. One can draw conclusion, regarding the behaviour of expenses over period of time by examining these percentages.

Trend Analysis: Trend percentage are very useful is making comparative study of the financial statements for a number of years. These indicate the direction of movement over a long tine and help an analyst of financial statements to form an opinion as to whether favorable or unfavorable tendencies have developed. This helps in future forecasts of various items. Each item of bease year is assumed to be equal to and on that basis the percentage of item of each year calculated.

Ratio Analysis: Meaning : Absolute figures expressed in financial statements by themselves are meaningfulness. These figures often do not convey much meaning unless expressed in relation to other figures. Thus, it can be say that the relationship between two figures, expressed in arithmetical terms is called a ratio.

It is found by dividing one number into the other. Proportion or Pure Ratio or Simple ratio. Rate or so many Times. Percentage 4. Helpful in analysis of financial statements. Simplification of accounting data. Helpful in comparative study. Helpful in locating the weak spots of the business. Helpful in forecasting 6. Estimate about the trend of the business 7. Fixation of ideal standards 8. Effective control 9. Study of financial soundness.

False accounting data gives false ratios 2. Comparisons not possible of different firms adopt different 3. Ratio analysis becomes less effective due to price level 5. Ratios may be misleading in the absence of absolute data. Limited use of a single Ratio. Window-Dressing 9. Lack of proper standards.

Ratio alone are not adequate for proper conclusions Effect of personal ability and bias of the analyst. Gaurav Narang 71 B. Leverage Ratios. Activity Ratios: Activity ratios are calculated to measure the efficiency with which the resource of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales e.

Profitablity Ratios: These ratios measure the results of business operations or overall performance and effective of the firm e. Generally, two types of profitability ratios are calculated. Gross Profit Ratio. Acid Test or -Debt. Equity Debtors Turnover Operating Ratio. Quick Ratio. Return on total Resources Earning per share. Price Earning Ratio. Gaurav Narang 72 B. In other words, it is a summary of sources and applications of each during a particular span of time.

Objectives of Cash Flow Statement : 1. Useful for Short-Term Financial Planning. Useful in Preparing the Cash Budget. Comparison with the Cash Budget. Study of the Trend of Cash Receipts and Payments. It explains the Deviations of Cash from Earnings. Helpful in Ascertaining Cash Flow from various Separately. Helpful in Making Dividend Decisions. Gaurav Narang 73 B. EPS This shows that there is fluctuation in the rate of increase in the capital.

In and the rate of increase in capital is more than that of and Gaurav Narang 77 B. This shows that bank is effectively utilizing its reserves and surplus. Gaurav Narang 78 B. Gaurav Narang 79 B. In four years it has been more than double.

The overall performance of the bank is satisfactory. Gaurav Narang 80 B. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength.

If current liabilities exceed current assets, then the company may have problems meeting its short-term obligations. In crores Rs. In crores The ratio of 2 is considered as a safe margin of solvency due to the fact that if current assets are reduced to half i. But here the current ratio is less than 2 and more than 1 which shows that the bank have current assets just equal to the current liabilities which is not satisfactory as the safety margin is very less Gaurav Narang 81 B.

Therefore the bank should keep more current assets so that it can maintain a satisfactory safety margin. Liquid assets refer to assets which are quickly convertible into cash. Current Assets other stock and prepaid expenses are considered as quick assets. A higher value of ratio is considered favourable. This means the bank has not managed its funds properly in this particular period. Therefore bank should rationally utilise its funds to maintain an ideal liquid ratio.

Gaurav Narang 82 B. A comparison of earning per share of the company with another will also help in deciding whether the equity share capital is being effectively used or not.

It affects the market price of shares. Gaurav Narang 83 B. It is very helpful for potential investors to know the dividend paying capacity of the company.

It affects the market value of the company. An increase in the ratio over the previous period indicates improvement in the operational efficiency of the business.

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Sirish Kumar, Kiran Kumar Patro. Enhancement in data privacy using a dynamic cloud platform in E-healthcare system.

Enhancement in cloud data security using searchable cipher text policy ABE encryption. Employee Engagement and Job Security. Deepan Chakravarthi, Dr. Maheswari, Dr. Impact of Marketing Strategy on Online Purchase. Chinmaya Agarwal, Rajmohan M. Montaser Abdelsattar, Heba A. Mahmoud, Adel A. Aparna Thejomai, M. Rathaiah, Dr. Comprehensive study of wear characteristics of alumina and Titanium Nitride ceramics against AISI steel under dry lubricated conditions.

Shaik Abubakar Siddiq, E. Effect of annealing temperature on structure, magnetic and optical properties of copper ferrite CuFe2O4 nanoparticles synthesized by sol-gel auto-combustion technique. Wafa R. Venkatesu Naik, Krishnaiah talari, Mohammad.



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