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
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.
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.