Académique Documents
Professionnel Documents
Culture Documents
by
Mr. Sarbesh Mishra,
Assistant Professor, Finance Area.
National Institute of Construction Management
& Research (NICMAR)
COVERAGE UNDER THIS TOPIC
• INTRODUCTION
• BASIC CONCEPTS
• LEGAL FRAMEWORK & BRIEF REVIEW OF
PROVISIONS
• THE BALANCE SHEET & ITS KEY ELEMENTS
• THE PROFIT & LOSS A/C & ITS KEY ELEMENTS
Qs:- If I have no intention of becoming a financial
manger, why do I need to, understand financial
applications / Analyse of Financial statements?
• Technical Appraisal
• Financial Appraisal
Goal Of The Firm
Goal
Creating the
Firm
EQUITY DEBT
ASSETS
Goal Of The Firm
Building Up
The Firm
ASSETS SALES
Goal Of The Firm
Building Up
The Firm
Building Up
The Firm
INTEREST
INTEREST
A T/O NPM
*
ASSETS * SALES EARNINGS
* DIVIDEND
Payout
Rate???
Goal Of The Firm
A T/O NPM
*
ASSETS * SALES EARNINGS
* DIVIDEND
Payout
At what rate /
cost ???
Finance Measures
Cost
Revenue
Profit
ROI
EVA
UNDERSTANDING
FINANCE & ACCOUNTS
• ENTITY CONCEPT
• GOING CONCERN CONCEPT
• MONEY MEASUREMENT CONCEPT
• COST CONCEPT
• CONSERVATISM CONCEPT
• DUAL ASPECT CONCEPT
• ACCOUNTING PERIOD CONCEPT
• REALIZATION CONCEPT
• MATCHING CONCEPT
• MATERIALITY CONCEPT
LEGAL FRAMEWORK
WITHIN COMPANIES’ ACT, 1956 :
- Horizontal form
- Vertical form
HORIZONTAL FORM OF B/S
LIABILITIES ASSETS
• Share Capital • Fixed Assets
• Reserves and Surplus • Investments
• Secured Loans • Current Assets, Loans
• Unsecured Loans and Advances
• Current Liabilities and • Misc. Expenditures
Provisions and Losses
SIS LTD. ANNUAL ACCOUNTS
BALANCE SHEET
(Figs. in Rs./Lacs)
Sources of Funds as at 30th as at 30th
Sep., 2004 Sep., 2003
1. Shar ehold ers’ Funds
(i) Capital 736.95 736.95
(ii) Reserves And Surplus 14,856.94 14,464.92
15,593.89 15,201.87
2. Loan Funds
(i) Secured Loans 2,107.36 1,321.86
(ii) Unsecured Loans 2,976.21 3,063.95
5,083.57 4,385.81