Higher Education


Financial Statements and Analysis, 2e

Author(s): M.S. Narasimhan

ISBN: 9789355738783

Edition: 2nd

© Year : 2023


Binding: Paperback

Pages: 284

Trim Size : 241 x 181 mm

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This book is written in a non-technical language and provides explanation and insight to each and every figure that appears in financial statements. A unique feature of this book is, that all the three principal financial statements, namely, Balance Sheet, Statement of Profit,  and Cash Flow Statement, are thoroughly explained using the financial statements of Asian Paints  Ltd. The last part of the book presents a framework through which the readers can view the  financial health of any business. The text shows the interconnection between the four drivers of  profitability―asset management, cost management, leverage management, and tax  management―and how they jointly improve the profitability of the company.  The book is intended to provide a feeling of completeness to the readers in their understanding of  financial statements. Even for those from non-accounting background, this simple and lucid text helps to read and understand financial statements and to be able to evaluate the financial health of a company. The book is relevant for students of finance and accounting courses from different backgrounds, as well as non-financial managers, entrepreneurs, and  so on. This book is also relevant for those pursuing courses on valuation, mergers and acquisition, and specialized course on Financial  Statement Analysis. 

  • Comprehensive text on financial statements with focus on understanding and interpreting rather than preparing financial statements
  • Practical, insightful, and easy-to-read text
  • Chapter-end problems carefully constructed to address various issues
  • Chapter-end real-life cases to provide an opportunity for students to learn and analyze
  • Allows students and managers to create Excel templates to standardize the analysis part to have more time on analysis than on computation
  • This second edition of the book uses recent financial statements of Asian Paints Ltd and two new chapters on Financial Statement Analysis of Banks and Equity Valuation.

Cengage Digital App contains: MCQs with answer sheet, additional cases with analyses, and videos on difficult topics.

1. Introduction

2. The Balance Sheet

3. Income Statement

4. Statement of Cash Flows

5. Analysis of Financial Statements

6. Assessing Financial Health of Banks and NBFCs

7. Equity Valuation

M.S. Narasimhan is Professor of Finance and Accounting at IIM Bangalore and teaches financial reporting and analysis, management accounting, corporate finance and investments. Currently, he also Chairs the Post-Graduate Programme in Management at IIM Bangalore. Earlier, he was Chairperson of Executive Education and Chairperson of Finance and Control Area. Prof. Narasimhan received his Ph.D. from University of Madras. He has designed and conducted several senior management development programmes and is active in research and consulting. He is also a member of Institute of Cost and Works Accountants of India.