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Project Guide (AFS 2013)

This document outlines the objectives and requirements for a project analyzing the financial statements of a selected public company. Students will individually analyze the financial performance and position of a company from one of several listed sectors to demonstrate their understanding of course concepts. They must select a company, follow the six steps of financial statement analysis, and prepare a maximum 20-page report summarizing their analysis and conclusions. Students will then present their findings to the class within a 15-20 minute timeframe. The project aims to prepare students for careers analyzing company financials through a real-world case study analysis.

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syed Hassan
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93 views2 pages

Project Guide (AFS 2013)

This document outlines the objectives and requirements for a project analyzing the financial statements of a selected public company. Students will individually analyze the financial performance and position of a company from one of several listed sectors to demonstrate their understanding of course concepts. They must select a company, follow the six steps of financial statement analysis, and prepare a maximum 20-page report summarizing their analysis and conclusions. Students will then present their findings to the class within a 15-20 minute timeframe. The project aims to prepare students for careers analyzing company financials through a real-world case study analysis.

Uploaded by

syed Hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Project Work (Firm & Industry Analysis)

Course: Analysis of Financial Statement (AFS)

Objective:

The project is designed to prepare future financial analyst, who can effectively analyze, interpret, and
evaluate an entity’s financial statements and related information. The objective of the project is to give
an opportunity to study one company in depth with particular sector analysis.

Your project should demonstrate evidence of detailed analysis of financial statement data and evidence
of integrating the tools and concepts covered in the course. Emphasis should be placed on the
interpretation of financial data by means of industry wise comparison, comparative statements analysis,
sector analysis, trend percentages and use of various financial ratios/ techniques which will be explicitly
be covered under this course.

Working Methodology:

 Each student will work individually on a project and is required to select one company from the
following sectors:
1. Oil & Gas (OGDCL, PPL, PAKO etc)
2. Chemicals (ICI, Engro Crop, Dawood Hercules etc)
3. Constructions & Materials: Cement (Bestway, Lucky Cement, Fauji Cement etc)
4. Automobile & Parts (Dewan Motors, Pak Suzuki, Indus etc)
5. Food Producers (Nestle Pak, Engro Foods, Unilever etc)
6. Personal Goods: Textile (Gul Ahmed, Gadoon Textile, Ibrahim Fiber etc)
7. Pharma & Bio Tech (Abbott, GSK, Sanofi-Aventis etc)
(List of companies you can see at www.kse.com.pk)

 Each students will be required to select ONE listed company from above given sectors for in
depth financial analysis.

 Articulate the purpose and context of analysis and strictly follow the six steps/ phases of
Financial Statement Analysis Framework (easily available on internet and will be covered in this
course)

 You are than required to prepare a report (maximum 20 pages including explanation through
bullet form) that summarizes the results of your financial analysis, using one-inch margins, a
reasonable font size. In addition, make appropriate references to the source material and
submit copies of any unique source material you use.

 Last day for submitting project report is the 12th session/ class.

 Last Two to three sessions will be devoted in the presentation of Project work. Minimum
allocated time for each presentation is 15-20 minutes & I can call any of the group if group is not
ready to submit report or presentation then they will get 0 marks.

 All the concepts covered in presentations will be the part of your final exam.

Page 1 of 2 Analysis of Financial Statement


 Student/s who will not be available during the presentation will be awarded ZERO for the
complete project.

Suggested Approach for the Project:

Select a listed firm from the assigned sector. Analyze subject firm’s performance relative to its past
performance and relative to the performance of other firms (bench mark firm/ industry leader) in the
same industry. You will need at least 5 years worth of data to make a meaningful analysis.

Data may be available from the company’s corporate website, from the Karachi Stock Exchange Library,
from the internet or from the research department of a brokerage firm even financial statement
available at SBP site

After you have done some preliminary analysis, settle on a “theme” for your project. The analysis will
then be used to support your position/ theme/ objective and context. The types of questions you might
wish to address include the following: (suggested flow, extra marks for out of the box thinker)

1. Overall performance of economy.

2. Company’s recent performance compare to that of its major competitors, taking into account
any accounting standard differences across the industry.

3. Its performance expectations. (some highlight from MD & A)

4. Company major lawsuits (if any)

5. What are the company’s secrets/ strengths?

6. Is a growing/declining industry, why is the company declining/growing?

7. Your analysis must support objective and context set at the beginning of analysis.

8. Would you recommend a buy/sell/hold on the stock given current stock prices? Why? (as per
the context set at the start of project)

9. Final decision based on your in-depth analysis (including different ratios, horizontal/ vertical
analysis, fundamental and technical analysis, presentation through multiple charts etc)

Page 2 of 2 Analysis of Financial Statement

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