Project Work Details
Project Work Details
Project Work Details
Group Project
Required: Select a non-financial company of your choice (different for each group) and
analyse the same using latest available annual report with respect to the following questions:
1. Comment upon the business model of the company. What are the primary (core) and
secondary activities that the firm is engaged into?
2. What do you think of the company’s management of inventories and receivables?
Comment upon the depreciation policy of the company.
3. What do you think of the size of the company’s cash and bank balances and
investments?
4. Compare the company’s basic and diluted EPS and explain any difference with
calculations.
5. Evaluate performance of the company’s segments (if any).
6. Explain how the information in the chairman’s statement and the directors’ report is
useful in understanding the information in the financial statements.
7. Does the company provide information that would enable investors and analysts to
understand its long term direction?
8. How is the corporate governance report useful? What additional information would be
useful?
9. What additional disclosures would you recommend to the company’s management?
What are the pros and cons of providing these disclosures?
10. Does the company follow the direct method or indirect method for reporting net cash
flow from operating activities?
11. How much cash did the company generate from or use in operating, investing and
financing activities?
12. Verify that the sum of net cash from or used in operating, investing and financing
activities equal the change in cash and cash equivalents over the reporting period
13. Are there any non-cash items in the net cash flow from operating activities? How
would you deal with them in your analysis?
14. Depreciation is not a source of cash, but it is added to net profit. Why?
15. Does the amount of interest income equal interest received? Why or why not?
16. Does the amount of dividend income equal dividend received? Why or why not?
17. Does the amount of interest expense equal interest paid? Why or why not?
18. Try to reconcile the change in working capital items with the information on these
items in the balance sheet.
19. What do you learn from the difference between profit and cash flow from operating
activities?
20. Calculate the company’s free cash flow. What does it tell you about the company?
21. As you know the statement of Profit and loss, balance sheet and cash flow statement
are interrelated. Prepare a statement explaining changes in balance sheet items using
the information in the statement of profit and loss and cash flow statement.
22. Analyse the financial statements of the company using different ratios. Analyse and
interpret the different types of ratios of the chosen company.
Submission instructions:
Each group is required to submit the presentation and report in electronic form.
The presentation and document/report should comprise of answers to all questions stated
above in the same sequence along with the electronic form of annual report as an annexure.
Groups are requested to submit the report to class representative (Mr. Rochak) before the
deadline and he is requested to submit the same to the faculty.
The students should strictly follow the group constitution communicated by the executive
office.