balance sheet


This query is : Resolved 

04 January 2011 it is said that with the help of balance sheet one make out wether the company is good for investment purpose or not.what are the things that a newcommer in this feild should take notice of in the balance sheet.how it is done

04 January 2011 For investment decision, it depends on nature of investment.

By ratio analysis , various ratio of balancesheet and profit may be extract and compared with industry norms.

04 January 2011 Mr. Manish,
Balance Sheet can no doubt be used as a Tool to identify an undervalued share, but we shall not forget that as per Indian GAAP major assets are disclosed at Historical Cost Only rendering it a Little difficult to be a Decision making Criterion.

For Better Decision Making !
Listed Companies - Refer to P/E , Charts & Industry Analsysis.

Unlisted Companies - Big Investors Should Appoint Professional Valuing Firms.

Small Investors - Can Nonetheless Rely on Balance Sheet & Ratios to form its Decision.

Regards
Ankit

Ajay Mishra (Expert)
05 January 2011 Hi

Agree with Experts....


You should also check the reserve available with company and dividend payment track record. you should also regularly check of those company on NSE and BSE.


Regards


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