Friday, April 8, 2011

Analysis of Financial 'state'ments !

It was 9am. With a deep glance at the some-what ugly window pane next to me, I was contemplating, not sure what. Adjusting my spectacles that got slightly tilted in the process over the bridge of my nose I looked back to the table that looked wonderfully embellished by the financial management textbooks and hand outs. On the other side of the table was a guy who looked impatient and annoyed with his life, the reason was that he was attempting his 2nd semester MMS exams along with CFA level-II. There were some souls around who were seamlessly dozing off and on, as if they had taken an oath to live and die on the very study table. There were peons and other library staff members who looked engrossed in their own worlds, with female ones gossiping over their relative's newly bought vehicle and the males- yawning, drinking water, walking in and out, going back to their respective seats and yawning again !
       Amidst all of them, was I. Foolishly contemplating, sometimes turning the fan on, then turning it off again, playing Need For Speed and clicking some random pictures. Suddenly there was an enthralling moment where life felt full of energy and a high intensity volatile interest popped up of understanding the concepts of finance. I picked up the pen and began with a question on Ratios. Life initially in all aspects is easy, and so was the question that I solved with little help of my friend. It felt good. While I moved my eyes onto the next question, the phone vibrated, it was an SMS. And guess what, I didn't bother to check it, whoaa, achievement ! Without getting my mind to ramble, I got along solving the question, with little apprehension and slight hesitation I was just about to finish it and suddenly something happened. Nothing material, it felt as if I am fooling myself. Finance is not my cup of tea, how the heck am I suppose to understand what comes and goes in terms of money in a firm. Who cares if the equity of a company is twice its debt or otherwise. And how on earth am I suppose to remember all those damn formulae of what-not-ratios. Bloody, ratio had such a simple meaning before and that was the arithmetic division of two values, numerator to denominator. Finance complicated it, and complicated my life too. It was 12 'o' clock, 3 hrs done and I was on the 2nd question. The pen in my hand was raring to go, but it wasn't sure where. The problem was that finance had made life difficult. Assets, liability, debt, reserves, P&L, balance sheet and in the end a messed up neurotic disordered brain. I finished solving the problem, looked at the next one, then looked at the same tarnished window pane, and finally I was back, contemplating !

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