What you’ll learn Module B & C of Certified Credit Professional Course Analysis of Financial Statements Balance Sheet Statement of Profit and Loss Financial Ratio Analysis Cash Flow Analysis Fund Flow Analysis Term Loan Appraisal Working Capital Management “Analysis of Financial Statements – Basics Financial Statements Income Statement and Balance Sheet Sources and Uses of Funds Financial Statement Making Process Difference between Income, Liability, Expense and Assets “Analysis of Financial Statements – Structure / Format General Instructions – Financial Statements – Schedule III of Companies Act 2013 General Instructions related to Assets and Liabilities General Instructions related to Share Capital General Instructions related to Reserves and Surplus GI General Instructions related to Long Term Borrowings General Instructions related to Long Term Provision General Instructions related to Short Term Borrowings General Instructions related to Other Current Liabilities Balance sheet format Tangible assets Intangible Assets Non Current Invt Other NCA Long term LA Inventories Trade Receivables Cash and CE Cont liab and commitment Short term LA PL Format GI PL “Analysis of Financial Statements – Ratios Introduction to Ratio Analysis (Talking Head) Classification of Ratio (Talking Head) Introduction to Liquidity Ratio (Talking Head) Classification of Liquidity Ratio (Talking Head) Current Ratio (Talking Head) Quick Ratio (Talking Head) Ideal Current Ratio and Quick Ratio (Talking Head) Absolute liquidity Ratio (Talking Head) Basic Defense interval Ratio (Talking Head) Capital Structure Ratios (Talking Head ) Turn over Ratio (Talking Head ) Inventory Turn over Ratio (Talking Head ) Debtors Turn over Ratio (Talking Head) Creditors Turn over Ratio (Talking Head) Inventory Holding Period (Talking Head) Debtors Collection Period (Talking Head) Creditors Payment Period (Talking Head) Case Study 1 Ratio Analysis (Talking Head) Debt Service Coverage Ratio (Talking Head) Interest Coverage Ratio (Talking Head) Preference Dividend Coverage Ratio (Talking Head) Capital Gearing Ratio (Talking Head) Profitability Ratio (Talking Head) General Profitability Ratio (Talking Head) Return on Investment Ratios (Talking Head) Various Ratio for Equity Share holders (Talking Head) Market Value Ratios (Talking Head) Summary and limitation of Ratio Analysis (Talking Head) “Fund Flow Analysis Introduction to Fund Flow Analysis (Talking Head) Importance of Fund Flow Analysis (Talking Head) Fund Flow Through some Numbers (Talking Head) Fund Flow Through Digram (Talking Head) How to identify long term Sources and Uses (Talking Head) Example of Long Term Source And Uses (Talking Head) Standard Format of Fund Flow Statement (Talking Head) Fund Flow Analysis Case Study Fund Flow Statement Analysis of Real Case “Project Appraisal / Term Loan Appraisal Introduction to Term Loan Appraisal What is TEV Study? Technical Viability of Project Financial Viability of Project Economic Viability of Project Commercial Viability of Project Managerial aspects of Project Compliance aspects of Project Cost of Project and Means of Finance under Term Loan Appraisal Land Cost and related inputs under cost of Project – Term Loan Appraisal Building Cost and related inputs under cost of Project -Term Loan Appraisal Plant and Machinery Cost and related inputs under cost of Project -Term Loan App Technical Know how and related inputs under cost of Project -Term Loan Appraisal Preliminary Expenses and related inputs under cost of Project -Term Loan Apprais Pre-operative Expenses and related inputs under cost of Project -Term Loan Appra Provision for Contingencies and related inputs under cost of Project -Term Loan Working Capital Margin and related inputs under cost of Project -Term Loan Appra General aspects related to estimation of Cost of Project – Term Loan Appraisal Introduction of Sources of Finance – Term Loan Appraisal Share Capital as source of Finance – Term Loan Appraisal Internal Accruals as source of Finance – Term Loan Appraisal Subsidies as source of Finance – Term Loan Appraisal Debenture as source of Finance – Term Loan Appraisal Term Loan as source of Finance – Term Loan Appraisal Unsecured Loans as source of Finance – Term Loan Appraisal Project Implementation Schedule Production Factors – Term Loan Appraisal Manufacturing Process – Term Loan Appraisal Other Production Factors – Term Loan Appraisal Analysis of DSCR (Gross Average & Net Average) Break Even Analysis in Term Loan Appraisal Break Even Analysis Case 1 in Term Loan Appraisal Sensitivity Analysis in Term Loan Appraisal Sensitivity Analysis Sales Drop Testing Case 1 in Term Loan Appraisal Sensitivity Analysis Variable Cost Increase Testing Case 2 in Term Loan Appraisa Sensitivity Analysis Material Cost Increase Testing Case 3 in Term Loan Appraisa Sensitivity Analysis DSCR Testing Case 4 in Term Loan Appraisal Payback period – Talking Head PayBack Period Case Study 1 – Taking Head Accounting Rate of Return (Talking Head) Accounting Rate of Return (PPT Based) Introduction to Time Value of Money Concepts Related To Time Value Of Money (Talking Head) Future Value of Single Cash Flow (Simple Interest & Compound Interest) Compound Value and Interest (Talking Head) Present Value Formula Case 1 Present Value (Talking Head) Introduction to NPV (Talking Head) Case Study 1 NPV (Talking Head) Profitability Index Method (Talking Head) Case Study 1 Profitability Index (Talking Head) Introduction to Internal Rate of Return (Talking Head) How to find IRR (Talking Head) Case Study 1 IRR (Talking Head) “Working Capital Assessment Introduction to Working Capital Management (Talking Head) Working Capital Introduction (Talking Head) Importance of Adequate Working Capital (Talking Head) Optimum Working capital (Talking Head) Working Capital Cycle (Talking Head) Holding Period Computation (Talking Head) Working Capital Loans Working Capital Cycle Tandon Committee Recommendations on Working Capital Assessment Review of Assessed Bank Finance Working Capital Cycle Explanation Working Capital Cycle Analysis Assessment of CC Book Debts Assessment of Letter of Credit Limit “Non Fund Based Credit Facilities What and Why of Non Fund Based Credit Facilities? Letter of Credit Documents involved in Letter of Credit Types of Letter of Credit General aspects related to LC Assessment of Letter of Credit What is Bank Guarantee? Types of Bank Guarantee Bid Bond Guarantee Advance Payment Guarantee Appraisal and Assessement o BG Limits What is Bid Bond Guarantee? Maintenance bond / guarantee What is Retention Money Guarantee? What is Advance payment Guarantee?