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Lecture Series Unit No. 1:Topic: (2) Financial Statements,

Cash Flow and Taxation(Course: Forensic Accounting & Homeland Security,

GFSU)

CA Vikram Shankar MathurBA (Eco) Hons, FCA, DISA (ICAI), FAFP (ICAI)

Contact No: +91-9998090111 or +91-8460890111.

Email: vsmathurco@gmail.com or vsmathur@ahmedabadfca.com

Website: http://vsmathur.co.in and http://ahmedabadfca.com

FB Profile(s): http://fb.me/vsmathurco or http://fb.me/vsm.ahmfca

FB Page: http://fb.me/fcavsmathur.faculty

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CA Vikram S. Mathur (GFSU - Lecture series)

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Quick Recap of the last lecture• Financial Manager must be familiar with the familiar with the following aspects of the business

environment: forms of business organization, financial system, regulatory environment and tax system.• The important forms of business organization are: sole proprietorship, partnership, private limited

company and public limited company and limited liability partnership / company. From the viewpoint of value maximization, the public limited company is most appropriate.

• Principal components of the financial system are: financial assets, financial intermediaries, financial markets and financial yields and interest rates.

• E&S Risk = Environmental and Social Risk (for Financial Institutions).• Fairly elaborate regulatory framework for industrial sector in India. Major elements are (i) Industrial

Policy Resolution (ii) Industries (Development Regulation) Act, (iii) Companies Act, (iv) Limited Liability Partnership/Company Act (v) Capital Issues (Control) Act, (vi) MRTP Act and (vii) FERA / FEMA.

• The procedure for computing the tax burden of a business entity is rather involved. It calls for taking into account a variety of reliefs and incentives available under the Income-Tax Act.

• The Income-Tax Act provides several incentives for individual assessees to save and invest in certain ways.

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Financial Statements, Cash Flow

and Taxation• Generally Accepted Accounting Principles, Going Concern Concept /

Principle and Accounting Standards• Accounting Cycle, Statements of Financial Information and

Understanding Corporate Financial Statement and Reports• Financial Statement Analysis, Financial Ratio Analysis and Assessing the

Financial Health of an Entity (specially a company)• Cash Flow, Fund Flow and Analysis, Leveraging: Operating, Financial and

Total, Cost Volume Profit Analysis and Budgeting: Some basic concepts• Taxation – Entity and Corporate Taxation, Basic concepts and the

Relevance of Taxation Planning in Financial Management

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Generally Accepted Accounting

Principles (GAAP)

• Money Measurement Concept• Separate Entity Concept• Duality Concept• Going Concern Concept• Cost Concept• Accounting Period Concept

• Conservative Principle Concept• Realization Concept• Accrual Concept• Matching Concept• Consistency Concept• Materiality Concept

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Principle

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Accounting Standards

(Domestic and International)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Indian Accounting Standards (ICAI)

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Accounting Cycle (General

Accounting)

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Accounting Cycle (Business

Accounting)

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Statements of Financial

Information

Extracted from: http://www.learn-accounting.com/business_accounting/L1_1_financial_statements.php

Key points:- the balance sheet is used to assess the firm’s financial position at a point in time- the cash flow statement and the income statement are used to assess performance over the period- the cash flow statement explains the change cash from the beginning of year versus end of year- the income statement shows the performance over the year- the statement of retained earnings shows how beginning of year retained earnings increases with net income and decreases with dividends, resulting in end of year retained earnings.

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Understanding Corporate

Financial Statements and Reports

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CA Vikram S. Mathur (GFSU - Lecture series)

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Financial Statement Analysis

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Financial Ratio Analysis

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Assessing the Financial Health

of an Entity (specially a company)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Analysis

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CA Vikram S. Mathur (GFSU - Lecture series)

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Financial and Total

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CA Vikram S. Mathur (GFSU - Lecture series)

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Cost Volume Profit Analysis

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Budgeting: Some basic concepts

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Taxation, Basic concepts

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CA Vikram S. Mathur (GFSU - Lecture series)

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rity Relevance of Taxation Planning

in Financial Management

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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CA Vikram S. Mathur (GFSU - Lecture series)

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Thank you for your patience!!

CA Vikram Shankar Mathur+91-9998090111 / +91-8460890111

(Available on WhatsApp on both numbers, anytime)vsmathurco@gmail.com vsmathur@icai.orgFB Page: http://fb.me/fcavsmathur.faculty

Website: http://fcavsmathurfaculty.wordpress.com