Chapter 1

INTRODUCTION

1.1 Financial Planning, Performance and Analytics

Analytics, performance, and financial planning are crucial components of managing a company's
finances. Creating a roadmap for reaching financial goals and objectives is known as financial
planning. This process may involve developing a budget, managing debt, and investing in assets
that will yield a return.
The ability of a business to make money and properly manage its finances is referred to as financial
performance. This entails keeping an eye on crucial financial indicators including sales, costs,
profit margins, and cash flow to make sure the company is on pace to reach its financial objectives.
Financial analytics is the use of data and analysis to understand the financial performance of an
organization and pinpoint areas for development. This might entail performing financial
modelling, looking at financial statements, and using data a visualization tool for spotting patterns
and trends.
All organization must have strong financial planning, performance, and analytics to succeed.
Businesses can decide how to allocate resources, manage debt, and engage in growth possibilities
by tracking and examining important financial parameters.

1.2 Characteristics of Financial planning, performance, and analysis

There are various critical characteristics of financial planning, performance, and analytics that are

necessary for efficient financial management in a business environment.

These qualities consist of:

1. Setting defined financial goals: objectives is a key component of financial planning for businesses.

These objectives can involve boosting sales, cutting costs, controlling debt, or enhancing cash flow.

2. Forecasting: Based on past data and market patterns, financial planning necessitates predicting

futurefinancial performance. This enables the company to foresee possible hazards and opportunities.

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3. Budgeting: Financial planning is developing a thorough budget that details anticipated earnings and

costsfor a given time frame. This enables the company to keep track of its identity.

4. Measuring performance: Important financial measures including sales, profit margin, and cash flow

are used to assess financial performance. This assists the company in evaluating its financial situation and

identifying potential improvement areas.

5. Data analysis: To get insights into financial performance and spot trends and patterns, financial

analytics uses data analysis techniques. This aids the company in making defensible choices on resource

allocation and risk management.

6. Risk management: Financial planning and analytics entail the detection of potential financial hazards

and the creation of management plans. This aids in maintaining the company's financial stability and

reducing financial losses.

7. Clear communication: between stakeholders is essential for efficient financial planning and analytics.

Sharing financial data, talking about financial goals and objectives, and working together on approaches to

achieving them. For efficient financial management in a business setting financial planning performance,and

analytics are crucial. Businesses can make educated decisions and achieve long-term financial success by

creating goals, projecting future performance, budgeting, monitoring performance, analyzing data,

managing risk, and communicating effectively.

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1.3 Benefits of Financial Modeling, performance and Analytics

Businesses can profit from financial modeling, performance, and analytics in a number of ways. Some of

the primary advantages are as follows:

1. Making better decisions: Financial modeling and analytics assist companies in making better choices

on resource allocation, risk management, and growth prospects. Businesses can make decisions more

likely to result in long-term financial success by examining data and projecting future financial

performance.

2. Enhanced financial performance: Companies can enhance their financial performance over time by

tracking important financial data and identifying opportunities for improvement. This could entail

lowering costs, raising sales, boosting profit margins, and enhancing cash flow management.

a. Improved risk management: Financial modeling and analytics assist companies in locating potential

financial hazards and formulating plans to mitigate them even during unpredictable economic times

b. Enhanced efficiency: Businesses can find inefficiencies in their financial procedures and operations by

using financial modeling and analytics. Businesses can increase their general efficiency and profitability

by streamlining procedures and cutting waste.

3. Improved communication: Financial modeling and analytics can assist firms in more effectively

communicating financial information to stakeholders, such as employees, investors, and lenders.

Businesses can increase trust and openness by providing financial data in a simple and plain manner.

4. Competitive advantage: Companies can acquire a competitive edge in their field by utilizing financial

modeling and analytics. Businesses can put themselves in a position for long-term success through

enhancing decision-making, financial performance, and risk management.

In conclusion, firms can gain a competitive edge through the use of financial modeling, performance, and

analytics. These benefits include better decision-making, improved financial performance, improved risk

management, increased efficiency, and improved communication.

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1.4 Tools Financial Planning, Performance, and Analytics

Businesses can utilise a variety of tools and methods for financial planning, performance, and analytics.

Here are a few of the most typical:

1. Spread sheets: a typical tool for budgeting, performance tracking, and financial modeling. They let

organizations to arrange financial information and carry out calculations to assess financial performance.

2. Financial software: Companies can utilize a variety of financial software programmers for financial

planning and analytics. They might include software for forecasting, financial reporting, data visualisation,

and budgeting.

3. Business intelligence tools: These technologies let companies examine vast amounts of data to learn

more about their financial performance. Tools for data visualization and dashboards that assist enterprises

could be among these Data visualization and dashboard technologies that assist firms in seeing patterns

and trends in financial data are examples of the data

4. Statistical analysis tools: Statistical analysis tools can help businesses perform more advanced analysis

on financial data, such as regression analysis, time-series analysis, and predictive modeling.

5. Financial modeling tools: Financial modeling tools allow businesses to create detailed financial

models that can be used to forecast future financial performance and evaluate different scenarios.

6. Risk management tools: Risk management tools can help businesses identify potential financial risks

anddevelop strategies to manage them. These tools may include risk assessment tools, risk mitigation tools,

and risk monitoring tools.se tools.

In conclusion, companies can use a variety of tools and methods for financial planning, performance, and

analytics. Businesses can efficiently use these tools to make decisions about resource allocation, risk

management, and long-term financial performance.

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 1.5 Scope of Financial Planning, Performance and Analytics

Analytics, performance, and financial planning are essential to the success of any firm. These topics are

closely related, and each is essential to helping a company reach its financial goals.

Creating plans and strategies for the efficient management of an organization's financial resources is known

as financial planning. Forecasting future financial requirements, making budgets, and establishing financial

projections based on various scenarios are all parts of this process. Organizations can make wise decisions

about investments, capital expenditures, and other financial issues with the aid of financial planning.

With the use of financial ratios and other key performance indicators, financial performance analysis entails

assessing an organization's financial performance over time (KPIs). Organizations can use this study to

pinpoint areas where they are performing well and Using data analysis methods to acquire understandingof

an organization's financial performance is known as financial analytics. Analyzing data from financial

statements, transactional data, or other sources of financial data may be necessary for this. Organizations

can use financial analytics to find patterns and trends in their financial data that may not be visible using

conventional financial reporting techniques

For firms of all sizes and industries, financial planning, performance, and analytics are essential. These

areas support organizations in improving their financial performance, reaching their long-term financial

goals, and making well-informed financial decisions.

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 CHAPTER-2
TRAINING

Udemy is a platform that allows instructors to build online courses on their preferred topics. Udemy

operates a marketplace platform for teaching and learning skills in the United States and internationally.

The company offers technical and business skills, and personal development courses for individual learners

2.1 Vision of Udemy

Udemy’s vision is to provide flexible, effective skill development to empower organizations and

individuals. Udemy Business helps companies achieve critical business outcomes and stay competitive by

offering engaging on-demand, immersive, and cohort-based learning.

2.2 Brief History of Udemy

Udemy is an Edu-Tech company that facilitates a competent platform for self-spaced as well as non-degree

regulated learning it helps on focusing on both hard and soft skills to its users.

Udemy is a platform which will provide the platform how it works, its founders, its business model, itssuccess

story as well as its revenue model.

The students can get experience of what courses offer by going through their trailers or even by accessingand

finishing the first lecture of the course.

2.3 Udemy Founders

Udemy was founded in 2010 by EREN BALI, GAGAN BIYANI and OKTAY CAGLAR.

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 2.5 The Origin of Udemy

EREN BALI had to fulfill all his education in a schoolhouse through a computer with internet access. By

adopting merely these two resources he learned Math’s and even ended up winning the National Math

Olympic In turkey.

2.6 Bridge the Skill

Udemy can be a great platform for bridging skills gaps, whether it is for individuals or organizations.
Here are some of the ways Udemy can help bridge skills gaps:
Access to a wide range of courses: Udemy offers a vast range of courses covering different subjects,
which provides learners with access to a wealth of knowledge and expertise.
While working for various clients, he was also investing additional times and funds into another passion

project. In 2007, he developed software for a live virtual classroom. Seeing a great degree of potential in his

new creation, he saved up the funds to move his base of operations to Silicon Valley, setting up Udemy for

his product along with his friends, GAGAN BIYANI and OKTAY CAGLAR. EREB BALI and his partners

had attempted and failed 30 times in gaining the interest of investors. Yet, the initial success and the platform

allowed them to raise $1 million in a couple of months. Later, they were aided by Group on investors Eric

LEFKOFSKY and BRAD KEYWELL in raising additional capital for the thriving company.

2.6 Udemy Business Model

 Udemy’s business model is based on charging instructors a fee for every sale of a course that takes place

on its platform’

 The fee ranges from 3 to 75 percent depending on how the user gets acquired.

 In addition, the platform charges a yearly subscription that hands businesses as well as their Employees

access to the firm’s content.

2.7 Revenue Model of Udemy

Udemy facilitates two types of courses on its platform- free as well as paid. By adopting a range of precise

and crisp free courses on its portal, the platform generates value and enhances marketing through word of

mouth. Meanwhile, the paid courses generate revenue.

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The platform’s principal revenue stream is the fee that it charges from students as well as instructors

hosting courses.

The revenue arrangement is the following:

If the platform promotes the course which has been opted by the student, it gains 50%of the total fees while

the remaining 50% is provided to the instructor.

If the platform promotes the course and it is accessed by the student via the affiliate link then 25% of the

fee is given to the platform, while the remaining 50% fee is given to the affiliate and 25% to the instructor.

Yet another revenue source for the platforms is their B2B solution namely “Udemy for Business”.

It offers two plans fo reach company namely Team Plan and Enterprise Plan

2.8 Udemy Recent Growth in India

“India has consistently been one of the top markets for Udemy, and our India operations have always beena

priority. We have seen a huge rate of growth in online learning in India during the covid”

Udemy for Business is powered by Udemy, the world’s largest learning marketplace. Udemy enables the

world’s experts to develop courses and share their knowledge. Today, more than 50,000 instructors teach

over 130,000 courses in over 60 languages. The Udemy for Business team curates the highest-rated courses

on relevant business topics across all fields, including development, design, IT and software, data science,

office productivity, management, marketing, personal development, project management, sales, and more.

As a result, Udemy for Business can always offer companies freshest content on the most in-demand skills

employees need to be productive and become stronger leaders and collaborators.

Leading companies in India, including Wipro, Tech Mahindra, and Tetra soft are using Udemy for Business

so their employees can learn the latest skills and deliver the most innovative solutions for their customers.

“We use Udemy for Business because we want to provide a learning platform for our employees across the

globe where they can learn anytime, anywhere. With short bite-sized lectures and some of the best

professors globally, our employees like learning on the platform because it’s easy to pick up new skills,”

says Anurag Seth, VP & Head of Talent Transformation at Wipro, a leading global information technolog.
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 CHAPTER-3

TRAINNING UNDERTAKEN

3.1 SEQUENTIAL LEARNING

Machine learning techniques such as sequential learning allow the model to learn from data that is supplied
to it in batches rather than all at once. Sequential learning can be used to continually update and improve
financial plans based on new data as it becomes available in the context of financial planning performance
and analytics.
Analyzing financial data is a key component of financial planning performance and analytics, which helps
people, reach their investing, retirement, and other financial goals. Financial planners can continuously
improve their models and tactics as new data becomes available by employing sequential learning.

Predicting market movements is one application of sequential learning in financial planning. Financial
planners can construct models that forecast future market patterns by examining historical market data.
These models, however, can only be as accurate as the data they are trained on. Financial planners can
continuously update these models with fresh market information as it becomes available by utilizing
sequential learning, producing more precise forecasts.

Financial advisors can constantly modify retirement plans in light of shifting market circumstances and
other considerations by employing sequential learning. In order to guarantee they have adequate money to
endure throughout their retirement, retirees can use this to change their plans as necessary.
Overall, sequential learning has the potential to be a very effective tool for financial planning performance
and analytics, enabling financial planners to develop more precise models and strategies based on current
data

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3.2 Course Objective

Financial planning performance and analytics is a course that aims to give students the information and
abilities needed to properly analyses financial data, evaluate financial performance, and create plans to
enhance financial results. Analysis of financial statements, forecasting and budgeting, cost of capital, risk
management, and portfolio analysis are some of the subjects covered in the course.
After completing the course, students were able to:

Recognize the fundamentals of financial analysis, including balance sheets, income statements, cash flow
statements, and financial ratios.

SL NO. MODULES NO OF HOURS NO OF VIDEOS

1 EXTERNAL 10 19
FINANCIAL
REPORTING
DECISIONS

2 PLANNING, 9 8
BUDGETING
AND
FORECASTING

3 COST 8.5 14
MANAGEMENT

4 INTERNAL 10 2
CONTROL

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5 TECHNOLOGY 8.5 14
AND ANALYTICS

Recognize the role that cost of capital plays in financial decision-making and be able to calculate an
organization's cost of capital.

Develop risk management techniques to reduce various financial risks by identifying, evaluating, and
managing them.

Create and manage investment portfolios as well as analyses investment prospects. Make educated
decisions about capital budgeting, financial restructuring and other strategic financial activities by using
financial analysis. A evaluate an organization's or project's financial performance, use financial analysis.

The course's overall goal is to give students a strong foundation in financial analysis and give them the
abilities and information they need to make wise financial decisions in a range of situations.

3.3 Course outcome

Make educated decisions about capital budgeting, financial restructuring and other strategic financial

activities by using financial analysis. A evaluate an organization's or project's financial performance, use

financial analysis.

The course's overall goal is to give students a strong foundation in financial analysis and give them the
abilities and information they need to make wise financial decisions in a range of situations.

The expected learning outcomes of a financial planning course may differ depending on its level and focus.

Nevertheless, some general objectives may include developing students' comprehension of fundamental

financial planning concepts and principles such as budgeting, saving, investing, retirement planning, and

risk management. Additionally, the course aims to enable students to analyze financial situations and design

effective financial plans tailored to the specific goals and objectives of clients.

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They should also become familiar with various investment options and recommend suitable investment

strategies for client’s financial situations and objectives. Another expected outcome of a financial planning

course is to equip students with the knowledge and skills to incorporate tax planning into their financial

plans and minimize tax liability for clients. Furthermore, effective communication of financial information

and recommendations to clients, adherence to ethical and professional standards in financial planning, and

an ability to apply them to their practice are also crucial learning outcomes of a financial planning course.

Overall, the ultimate goal of a financial planning course is to prepare students to become competent

financial planners who can help clients achieve their financial goals and objectives.

Depending on the course's individual goals and objectives, the financial planning performance and

analytics course outcome may differ. Nonetheless, some typical results might be

Financial planning concepts: Students will get a basic understanding of the concepts and methods involved

in financial planning, including tax planning, estate planning, retirement planning, and investment.

3.4 TRAINING METHODOLOGY

Depending on the organization or instructor teaching the course, the training technique for a course on basic
analysis utilizing financial modelling may change. Nonetheless, the following are some typical training
approaches applied in these programs
Lectures: Teachers may present theoretical ideas and clarifications of financial modelling and basic
analysis through lectures.
Exercises with Real-World Scenarios, Spreadsheets, and Software: Teachers may assign exercises with
real-world scenarios where students work on financial modelling.
Case Studies: Teachers may use case studies to illustrate how fundamental analytical and financial
modelling ideas may be used in the real world.
Group Projects: Teachers may assign group projects that call for students to use principles from
basicanalysisandfinancialmodellingtoassessacompany'sfinancialstanding,choose an investment, and then
report resultants.

Online Resources: To reinforce core analytical and financial modelling principles, instructors may offer
online resources like as videos, tutorials ,and online quizzes.
Teachers may lead interactive discussion sessions to enable students to contribute their thoughts concepts
,and experiences ,fostering peer-to-peer learning.

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 Feedback and Assessments:
To track students' development and make sure they have a firm understanding of the material, instructors
may provide frequent feedback and evaluations.

3.3 TRAININGASSIGNMENT

Any basic analysis utilising financial modelling course must include assignments to assist students
apply what they have learned to real-world situations and to help them understand what they have
learned. The following frequent assignments could be used by instructors in these classes: Financial
Statement Analysis: Using a range of techniques and methodologies ,such as ratio analysis, trend
analysis, and common-size analysis, students may be required to evaluate the financial statements
of a company.
Financial modelling: Using Microsoft Excel, teachers may instruct their pupils to create financial
models that include income statements ,balance sheets ,and cash flow statements.
This project will teach students how to evaluate a company's financial performance and make wise
investment choices. Investment Analysis: Based on a company's financial stability, potential for
future growth ,and value, students may be asked to apply financial modelling and fundamental
analysis to make educated investment decisions. Case Studies: Students may be tasked with
examining actual case studies from the real world that demonstrate how basic analytical and
financial modelling techniques can be used in real-world settings. Through this assignment, students
will learn valuable abilities that they can apply in the job.

3.4 CASE ANALYSIS DURING TRAINING PROGRAM

Students are given a company's financial statements and other pertinent information as part of a case study
exercise ,and they are then request a complete analysis utilizing basic analytic methods and
Financial modelling software.

The teacher may offer a number of case studies spanning various businesses and sectors in fundamental
analysis utilizing financial modelling course on Udemy, and students would be expected to assess each case
study using the ideas covered in the course.
Students could be given a case study of a business that works in the technology area,
forinstance.Theywouldhavetoevaluatethefinancialstatementsofthebusiness,computations, project future
financial results, and value the business using various approaches. The class would then hear their research
findings and financial advice.

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Students can learn practical skills and get first-hand experience by applying the principles
ofbasicanalysisandfinancialmodellingtoactualcasestudies.Theywill be better able to excel in their
employment and make wise financials elections as a result.

3.5 CRITERIA TO GET COURSE CERTIFICATE

Depending on the course and the instructor teaching it, different Udemy users may meet different
requirements for training certificates. To get a training certificate on Udemy, students must,
however, generally complete the following requirements:

Course Completion: Students are required to finish the whole course, which includes watching all
of the video lectures, doing any quizzes or assignments, and meeting any additional criteria outlined
by the teacher.
Minimum Score: In order to show that they have understood the course material, students may be
expected to receive a certain grade on quizzes arraignments.
Ragtime: The student must have finished the course within the allotted amount of time set by the
teacher or Udemy.
Course Fee: Some Udemy courses include a certificate of completion charge. The pupil must pay
the fees.
The certificate may be downloaded or printed from the student's Udemy account once they have
satisfied all the requirements for it. The name of the student, the title of the course, the completion
date, and the name of the teacher are normally included on the certificate. It is essential to
remember that the Udemy training certificate is not an official credential accepted by companies or
educational institutions. It may, however ,because full addition to a CV and show prospective
employers that the student has finished a course and has learned new abilities and expertise in a
certain field.

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 CHAPTER-4

RESULTS OF TRAINING AND DISCUSSIONS

4.1 Financial Reporting Decisions

Figure 4.1

Decisions taken by organizations while producing and presenting financial information to their

stakeholders to as financial reporting decisions. The perception of and its referred organizations capacity to

draw creditors, investors and other financial health.

Stakeholders are significantly impacted by these choices. The main goal of financial reporting is to give

stakeholders the precise and pertinent financial data they need to make wise decisions. This data comprises

financial statements including balance sheets and income statements. Statements , as well as cash flow

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statements, which give a summary of a company's cash flows, performance, and financial status.

The choice of accounting principles and procedures, the structure and presentation of financial information,

and the level of disclosure required are all decisions related to financial reporting.

Standards accounting, laws, and ethical considerations serve as the basis for these choices. Organizations

may increase openness, accountability, and stakeholder trust by choosing wisely when it comes to financial

reporting.

1. Accounting standards: Accounting standards, which offer criteria for compiling and presenting

financial information, have an impact on financial reporting decisions. These standards guarantee the

comparabilityand consistency of financial data across organizations and industries.

2. Regulatory requirements: In order to protect investors and maintain market integrity, organizations

must abide by a number of regulatory standards, such as those set forth by the Securities and Exchange

Commission (SEC) in the United States.

3. Needs of stakeholders: such as investors, creditors, regulators, and other consumers of financial

information, when making financial reporting decisions. To aid in making wise decisions, the information

offered should be timely, accurate, and pertinent.

4. Ethical factors: Factors including transparency, truthfulness, and integrity should be taken into account

while making financial reporting decisions. False or fraudulent reporting practices that could affect

stakeholders and destroy an organization's reputation should be avoided.

5. Risk management: When making decisions on financial reporting, risk management should be taken

into account. This involves determining and evaluating the risks connected to financial reporting, such as

errors, omissions, and misstatements. In order to reduce these risks and guarantee the accuracy and

completeness of financial information, organizations should have sufficient controls in place.

In general, choices made regarding financial reporting are vital in informing stakeholders about the

financial performance and status of an organization. Organizations can increase the credibility and

dependability of their financial reporting by making decisions that take into account accounting standards,

regulatory requirements, stakeholder needs, ethical considerations, and risk management

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4.2. Lease Accounting

Figure 4.2

The act of recording and reporting leases in a company's financial statements is known as lease accounting.

A lease is a legal arrangement that gives the lessee the right to use the lessor's asset for a predetermined

time period in exchange for recurring payments. The lessor is the owner of the asset. Lessees must identify

the majority of lease agreements on their balance sheets as both an asset and a liabilityin accordance with the

new lease accounting standards, ASC 842 and IFRS 16. Compared to earlier accounting regulations, which

permitted businesses to keep the majority of operating leases off their balance sheets, this is a big departure.

By givinga more realistic portrayal of a company's financial position, the new guidelines seek to increase

financial information's transparency and comparability.

Overall, lease accounting is an essential aspect of financial reporting, as it provides stakeholders with a

more accurate picture of an organization's financial position and performance. The new lease accounting

standards have significant implications for lessees and lessors, and it is crucial for organizations to

understand the requirements and implications of the new standards to ensure compliance and transparency

in their financial reporting.

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4.3 Planning, Budgeting and Forecasting

Organizations may efficiently plan and allocate resources, track financial performance, and make choices

by using planning, budgeting, and forecasting, which are crucial elements of financial management. An

explanation of each of these ideas is provided below:

Setting objectives and goals, as well as creating plans to reach them, is planning. Planning in financial

management entails developing a financial plan that details a company's anticipated earnings, costs, and

cash flows over a predetermined time frame, usually one to five years. The financial plan acts as a road

map for the company's financial activities and aids in matching resources with important strategic

objectives.

Budgeting is the process of creating a comprehensive financial plan for a predetermined time frame,

usually one year. The budget details the anticipated receipts,

Figure 4.3

4.4 Cost Control in Financial Planning.

Successful business operations depend on sound financial management, performance, and cost management

analytics. Businesses that practice effective cost management are better able to deploy resources

effectively, spot opportunities for cost reduction, and increase profitability. The following are some crucial

components of financial planning, performance, and cost management analytics:

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1. Financial Planning: Budgeting, predicting income and expenses, and establishing financial objectives

are all parts of financial planning. It assists companies in determining the resources needed to accomplish

their goals and allocating those resources as effectively as feasible. Several issues, including cash flow,

inventory management, tax planning, and debt management, should be taken into account while making

financial decisions.

2. Monitoring and evaluating a company's performance in relation to its goals and objectives is known as

performance management. Key performance indicators (KPIs) including revenue, profit margins, return on

investment (ROI), and customer happiness are among the metrics that are tracked in this process. Businesses

can find areas for development and makedata-driven decisions with the aid of performance management.

3. Expense Analytics: Cost analytics entails examining and comprehending the business's expense

drivers. This includes identifying the different cost components of the products or services offered,

understanding the cost structure of the business, and identifying areas of inefficiency. Cost analytics helps

businesses to optimize their cost structure and improve profitability.

4. Cost Management: Cost management involves developing strategies to manage costs effectively. This

includes implementing cost-saving measures, such as reducing overheads ,optimizing

4.5 Financial Planning, Performance and Analytics of Internal control

Financial planning, performance, and analytics of internal control are critical components of acompany's

overall financial management. Internal control refers to the policies, procedures, and practices that are

designed to safeguard a company's assets, ensure the accuracy of financial reporting, and comply with

regulatory requirements. Here are some key aspects of financial planning, performance, and analytics of

internal control.

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 1. Financial Planning: Financial planning involves creating a budget, forecasting revenue and

expenses, and setting financial goals for the organization. It helps businesses to identify the resources

required to achieve their objectives and allocate those resources in the most efficient way possible.

Financial planning should consider various factors, such as cash flow, inventory management, tax

planning, and debt management.

2. Performance Management: Performance management involves monitoring and measuring the

performance of the business against its goals and objectives. This includes tracking key performance
indicators (KPIs) such as revenue, profit margins, return on investment (ROI), and customer
satisfaction. Performance management helps businesses to identify areas of improvement and make data-
driven decisions.

3. Analytics: Analytics involves analyzing and understanding the data related to the internal control

systems of the business. This includes identifying the potential areas of weakness in the internal control

systems, reviewing the effectiveness of the control environment, and testing the controls in place to ensure

that they are operating effectively. Analytics helps businesses to identify areas of improvement and make

data- driven decisions to strengthen the internal control systems.

4. Internal Control Management: Internal control management involves developing

and implementing policies and procedures to manage internal control effectively. This includes

establishing and maintaining effective internal control systems, identifying and managing risk, and

ensuring compliance with laws and regulations. Effective internal control management helps businesses

to safeguard their assets, ensure the accuracy of financial reporting, and comply with regulatory

requirements.

In summary, financial planning, performance management, and analytics are critical components of internal

control management. By implementing effective internal control systems, businesses can safeguard their

assets, ensure the accuracy of financial reporting, and comply with regulatory requirements.

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 Figure 4.5

4.6 Analytics Technology And Analytics

Financial planning, performance, and analytics technology and analytics are essential components of

modern financial management. Technology and analytics can provide valuable insights into financial

data, help automate financial processes, and improve decision-making. Here are some key aspects of

financial planning, performance, and analytics technology and analytics:

Revenue and expenses, and set financial goals. These tools can automate financial planning processes,

1.Financial Planning: Financial planning software and tools can help businesses create budgets, forecast

provide real-time financial data, and enablebusinesses to make data-driven decisions.

2. Performance Management: Performance management software and tools can help

Businesses track and analyze key performance indicators (KPIs), such as revenue, profit margins, return

on investment (ROI), and customer satisfaction. These tools can provide real-time data, identify areas of

improvement, and enable businesses to make data-driven decisions to improve performance.

3. Analytics: Financial analytics software and tools can help businesses analyze financial data to
identify trends, patterns, and insights. These tools can provide real-time data, help businesses
understand the underlying drivers of financial performance, and enable businesses to make data-
driven decisions to optimize financial performance.
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1. Technology and Analytics Management: Effective management of technology and

analytics involves selecting the right tools and systems, ensuring that they are implemented and

integrated correctly, and providing training and support to users. Effective technology and

analytics management can help businesses optimize financial performance, improve decision-

making, and gain a competitive advantage.

In summary, financial planning, performance, and analytics technology and analytics are critical

components of modern financial management. By leveraging technology andanalytics, businesses

can automate financial processes, gain valuable insights into financial data, and make data-driven

decisions tooptimize financial performance.

Figure 4.6

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1. The common-size income statement: helps identify areas of cost overruns or inefficiencies,
highlights changes in the composition of expenses over time, and facilitates comparisons with
industry peers.

Common-Size Balance Sheet: A common-size balance sheet presents each asset, liability, and
equity item as a percentage of total assets. This analysis helps understand the composition and
relative importance of different components of the balance sheet. Here's how to create a
common-size balance sheet:

a. Determine the base figure: Total assets are typically chosen as the base figure and represented
as 100%.

b. Calculate the percentage for each line item: Divide each asset, liability, or equity item by total
assets and multiply by 100 to express it as a percentage.

c. Prepare the common-size balance sheet: Present each line item as a percentage of total assets.
This allows for easy comparison and identification of the most significant asset or liability
categories.

2.Comparative financial statements: are financial reports that present financial data for
multiple periods, usually side by side, to facilitate comparison and analysis of a company's
performance over time. These statements allow users to assess trends, identify changes, and
evaluate the financial health and progress of a business. The most common comparative financial
statements include:

a.Comparative Income Statement: This statement shows the revenues, expenses, and resulting
net income or loss for multiple periods, typically for the current period and one or more prior
periods. By comparing revenue and expense trends over time, it helps identify changes in sales,
costs, and profitability.

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b. Comparative Balance Sheet: A comparative balance sheet presents the assets, liabilities, and
shareholders' equity for multiple periods. It allows users to observe changes in the financial
position of a company over time, including changes in the composition of assets and liabilities,
debt levels, and shareholders' equity.

c..Comparative Cash Flow Statement: This statement outlines the cash inflows and outflows
from operating, investing, and financing activities for different periods.

By comparing cash flows, users can assess the changes in a company's cash position, evaluate its
ability to generate cash from operations, and understand the impact of investing and financing
activities.

Comparative financial statements are typically presented using columns, with each column
representing a specific period. The amounts reported for each line item in the statements are then
compared across the columns, and variances or changes are calculated and analyzed.

These statements are useful for various stakeholders, including management, investors, creditors,
and analysts, as they provide insights into a company's historical performance, financial trends,
and the impact of decisions and events on its financial position. Comparative financial
statements are often accompanied by additional analysis and commentary to provide a deeper
understanding of the financial performance and trends.

3.Financial ratio analysis Tools:

It is a powerful tool used to assess the financial health and performance of a company. It
involves the calculation and interpretation of various ratios derived from financial statements to
gain insights into different aspects of the company's operations, profitability, liquidity, solvency,
and efficiency. Here are some key financial ratios commonly used in ratio analysis:

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Liquidity Ratios: a. Current Ratio: Measures the company's short-term liquidity by comparing
current assets to current liabilities. It indicates the ability to cover short-term obligations.

b. Quick Ratio (Acid-Test Ratio): Similar to the current ratio, but excludes inventory from
current assets. It provides a more conservative measure of short-term liquidity.

Profitability Ratios:

a. Gross Profit Margin: Measures the percentage of revenue remaining after deducting the cost of
goods sold. It reflects the efficiency of production and pricing decisions.

b. Net Profit Margin: Indicates the percentage of revenue remaining as net income after
deducting all expenses, including taxes and interest. It measures overall profitability.

c. Return on Equity (ROE): Evaluates the return generated on shareholders' equity. It shows how
efficiently the company is utilizing its shareholders' investment.

Efficiency Ratios:

a. Inventory Turnover Ratio: Measures how quickly inventory is sold and replenished. It helps
assess inventory management efficiency.

b. Accounts Receivable Turnover Ratio: Indicates how efficiently the company collects its
accounts receivable. It reflects the effectiveness of credit and collection policies.

c. Asset Turnover Ratio: Measures how efficiently the company utilizes its assets to generate
revenue. It shows the effectiveness of asset management.

Solvency Ratios:

a. Debt-to-Equity Ratio: Compares the company's total debt to shareholders' equity. It shows the
proportion of debt financing relative to equity financing.

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b. Interest Coverage Ratio: Assesses the company's ability to meet interest payments on its debt.
It indicates the company's ability to handle interest expenses.

Market Ratios:

a. Price-to-Earnings Ratio (P/E Ratio): Compares the market price of a company's stock to its
earnings per share. It indicates the market's expectation of future earnings growth.

b. Dividend Yield: Compares the dividend per share to the market price per share. It indicates
the return on investment in the form of dividends.

Financial ratio analysis helps in comparing a company's performance to industry benchmarks,

historical trends, and competitors. It provides insights into strengths, weaknesses, and potential
areas of improvement. However, it is important to consider industry-specific factors, company
size, and other contextual information while interpreting financial ratios to get a comprehensive
understanding of a company's financial position and performance.

4. Financial analysis using benchmarking tools: Involves comparing an organization's

financial performance and ratios to industry benchmarks or competitors to assess its relative
strength or weakness in various financial areas. These tools help identify areas for improvement,
set targets, and make informed strategic decisions. Here are some key aspects of financial
analysis using benchmarking tools:

1. Financial Ratios Comparison: Compare the organization's financial ratios to industry

benchmarks or competitors in areas such as profitability, liquidity, solvency, and
efficiency. Identify variances and analyze the reasons behind them. This analysis helps
determine the organization's relative position and performance in comparison to peers.

2. Profitability Benchmarking: Compare the organization's profitability metrics, such as

gross profit margin, net profit margin, and return on investment (ROI), with industry
averages or competitors. Assess the organization's ability to generate profits and
identify areas for improvement.

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3. Efficiency Benchmarking: Evaluate the efficiency of the organization's operations
by comparing metrics like inventory turnover, accounts receivable turnover, and
asset turnover with industry standards or competitors. Identify opportunities to
streamline processes and enhance operational efficiency.

4. Strategic Decision-Making: Benchmarking tools provide valuable insights for

strategic decision-making. Companies can use benchmarking data to set realistic
financial goals, establish performance targets, allocate resources effectively, and
develop strategies to outperform competitors.

5. Investor Perspective: Benchmarking financial performance against industry

standards or competitors can help attract potential investors or lenders.
Demonstrating strong performance relative to peers can increase investor
confidence and support capital raising efforts

6. Continuous Improvement: Benchmarking tools enable companies to monitor

their financial performance over time and track progress towards predefined
goals. Regular benchmarking analysis helps identify trends, areas of
improvement, and potential risks, fostering a culture of continuous improvement.

7. Industry Insights: Benchmarking tools provide access to industry data and

trends. By comparing financial metrics across different companies in the
industry, companies gain insights into industry dynamics, emerging trends, and
competitive positioning.

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 4.7 Processes of Financial Planning, Performance and Analytics

Financial planning, performance, and analytics are essential processes for businesses to

optimize their financial performance. These processes involve a number of steps and best

practices. Here are some key steps involved in financial planning, performance, and

analytics.

1. Financial Planning:

 Establish financial objectives and goals.

 Create a budget and allocate resources to achieve the objectives.

 Create a budget and allocate resources to achieve the objectives.

 Forecast revenue and expenses, and monitor actual results against projections.

 Develop financial strategies to address potential risks and opportunities.

 Monitor cash flow and manage working capital.

 Review and adjust the plan periodically to ensure it remains aligned with business.

2. Performance Management:

 Establish key performance indicators (KPIs) to measure performance.

 Monitor and track KPIs regularly to assess performance against objectives.

 Analyze the results and identify areas of improvement.

 Develop action plans to address performance gaps.

 Implement performance improvement initiatives and monitor results.

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3. Analytics:

 Identify the data sources required for analysis.

 Collect and consolidate data from various sources.

 Clean and prepare the data for analysis.

 Analyze the data using statistical techniques and data visualization tools.

 Interpret the results and draw insights.

 Develop action plans to address areas of improvement identified through analysis.

In summary, financial planning, performance, and analytics involve a number of interrelated

processes that are critical for businesses to optimize their financial performance. These processes

require a data-driven approach, a focus on continuous improvement, and a commitment to aligning

financial objectives with business goals.

Enterprise Resource Planning (ERP) is a software system that integrates all aspects of a company's

operations, including finance, human resources, procurement, and supply chain management. In

terms of financial management, ERP systems provide a centralized platform for managing financial

transactions and data across different departments and business functions.

Enterprise Resource Planning (ERP)

Some of the key features of ERP systems in financial management include:

Accounting and Financial Management: ERP systems provide a comprehensive suite of financial

management tools, including general ledger, accounts payable, accounts receivable, cash management,

andfinancial reporting.

Budgeting and Planning: ERP systems can help companies develop and manage budgets, forecast
revenue and expenses, and analyze financial performance.
Purchasing and Procurement: ERP systems allow companies to streamline their purchasing and
procurement processes, from requisition to invoice payment, improving control and visibility over

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spending.

Inventory Management: ERP systems help companies track and manage inventory levels,optimizing
the supply chain and reducing waste. environment requirements

Business Intelligence: ERP systems provide real-time access to financial data and analytics, enabling
companies to make better-informed decisions and respond quickly to changes in the environment.

Figure 4.7

CHAPTER- 5

CONCLUSION

The outcome of financial and performance analytics is dependent upon the precise study doneand

the organization's goals. However, the following are some broad conclusions from

Financial and performance analytics:

An organization's financial health, profitability, liquidity, and financial efficiency can all being

learned from financial analytics. Organizations can spot trends, patterns, and opportunities for

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improvement by analyzingfinancial statements, financial ratios, and other financial data.

Organizations may measure and enhance their operational effectiveness, productivity, and efficiency

with the aid of performance analytics. Organizations can determine their strength sand weaknesses by

examining key performance indicators (KPIs), such as sales, customer happiness, staff engagement,

and production measures.

Accurate and timely data, powerful analysis tools, and knowledgeable analysts are all necessary for

effective financial and performance analytics. Investment in these resources increases the likelihood

that anorganization will make wise choices, perform better, and accomplish its objectives.

Accurate and timely data, powerful analysis tools, and knowledgeable analysts are all necessary for

effective financial and performance analytics. Investment in these resources increases the likelihood

that an organization will make wise choices, perform better, and accomplish its objectives. In

conclusion, financial and performance analytics are essential tools for organizations to evaluate their

operational and financial performance, pinpoint opportunities for development and reach well-

informed judgments.

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