fin session

1. Finance Roles
Workshop
Udit Singh
MBA’24 – FMS DELHI ( SUMMER INTERNSHIP – BAIN AND COMPANY)
CFA LEVEL 2 CANDIDATE
INDUS INSIGHTS (1.5 YEARS)
DEUTSCHE BANK (6 MONTHS )

2. Session Outline What is Finance?
Session Key Topics
•Basics of finance and its role in business
•Key financial concepts and terminology
•Overview of financial statements
(Balance Sheet, Profit & Loss Statement, Cash Flow Statement)
•Importance of understanding finance for jobs
Videos & Learning Content Links Use this
SESSION 1 : Introduction to Finance
Contents

3. BASICS OF FINANCE
1

4. What is Finance
Finance is the study of managing money. It
is concerned with the maintenance and
creation of economic value or wealth.

5. Acquisition &
allocating funds
Features of Finance
Channelizing
Funds
Acts as a mediator
between those who
want to store capital
and those who want
to use capital at a
given time
Future Decision
Making
Enables sound
decision-making
and enables correct
utilization of money
for profits and
returns
Business needs to
acquire funds and
needs to understand
how to effectively
allocate it

6. Acquire the
anticipated Funds
AIM OF FINANCE FUNCTION
Increasing
Profitability
Maximizing Firm
Value
Allocation &
Utilisation of Funds
Anticipation of
Funds needed
Audit and Legal
Compliance

7. Key Concepts and
Terminologies
2

8. Vodafone Idea Q4FY23 Loss
₹ 6418.9 crores
₹891,294 crore
Reliance Industries Annual Revenue 2023
₹ 2.76 Trillion
Total Market Cap of Adani Enterprises on 11 July

9. What do you mean by Revenue?
Revenue is the total amount of income
generated by the sale of goods and services
related to the primary operations of the
business

10. Key Financial Terminologies
Asset Liability Income Budget Expense
Cash flow Profit Loss Interest Principal
Stock Bond Dividend Inflation Depreciation
Capital
Return on
Investment
Liquidity Market Risk
Portfolio Equity Divestment Mutual Fund
Financial
Statement

11. OVERVIEW OF
FINANCIAL
STATEMENTS
3

12. Financial Statements
Balance
Sheet
Profit and
Loss
Cash Flow
Statement
1
2
3

13. Balance Sheet
Balance Sheet is the financial
statement of a company which
includes assets, liabilities, equity capital,
total debt, etc. at a point in time. The
balance sheet includes assets on one
side and liabilities on the other. For the
balance sheet to reflect the true
picture, both heads (liabilities & assets)
should tally
(Assets = Liabilities + Equity).

14. Balance Sheet Equation
[ Assets = Liabilites + Equity]
Equity
Liabities
A liability (generally speaking) is something
that is owed to somebody else.
Equity Capital refers to the capital collected
by company from shareholders in exchange
for a portion of ownership in the company.
Assets
An asset is a resource with economic value
and it provides a future benefit.
Company
A
Company
B
Company
C
0
2
4
6
8
10
12
14
16

15. A Sample
Balance Sheet

16. Profit-Loss Statement
The profit and loss (P&L) statement is a
financial statement that summarizes
the revenues, costs, and expenses
incurred during a specified period.
These records provide information
about a company’s ability or inability to
generate profit by increasing revenue,
reducing costs, or both. P&L
statements are often presented on a
cash or accrual basis.

17. Profit and Loss Equation
[ Profit/Loss = Revenue - Expense]
Revenue
Expense
An expense is the cost of operations that a
company incurs to generate revenue.
Revenue is the money generated from
normal business operations, as the average
sales price times the number of units sold
Profit/Loss
Profit describes the financial benefit
realized when the revenue exceeds the
expenses, and costs, involved in business
Company
A
Company
B
Company
C
-20
-15
-10
-5
0
5
10
15
20
25
30
35

18. A Sample
P&L Statement

19. Any
Questions

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