SUMMER INTERNSHIP PROGRAMME

REPORT

Submitted by:
LOPAMUDRA MOHANTY
Roll No. -1946025
Batch - B.Com. (2019-22)

Under the Supervision of:

Dr. MOHAMMED KHURSID
School of Commerce & Economics
KIIT Deemed to be University, Bhubaneswar
INTERNSHIP CERTIFICATE
This is to certify that the project entitled”Summer Internship Programme Report”
is being submitted by Lopamudra Mohanty, School of Commerce & Economics,
KIIT Deemed to be University, in partial fulfilment for the award of degree in
Bachelor of Commerce. It is a record of bonafide work carried out by her under my
supervision and guidance.
 ....................................................................................

......................................................................................
.......................................................................................
...................................................................................................
The job of a fiancial research analyst is to perform financial forecasting, reporting,
and operational metrics tracking, analyze financial data, create financial models is
primarily concerned with performing financial forecasting, evaluating operational
metrics, analyzing financial data, and creating financial models and presentations to
assist executive team.As a financial analyst intern, you will collect data, prepare
reports, research trends, analyze performance impact, create financial models, and
forecast results. You will contribute to the documentation of processes and the
implementation of strategic plans.
As a financial research analyst I also had to perform these duties in Beta Insights
Business Advisory.

a. Background of the Company -

Business analytics,
Financial planning, Treasury management, Internal cost control & audit, Cash flow
management, Debt funding, Startup and IPO (SME) advisory, Business modeling,
Due diligence, Merger & Acquisition, Competitors analysis, Market analysis,
Macro environment analysis, and Blue Ocean Strategy.
As the world around us is changing at an incredible pace, it is our ability to
transform that keeps us relevant.They help businesses to grow and achieve their
dreams by enabling them to effectively meet short term goals while at the same
time helping them build competencies and capabilities to fulfill their long-term
vision.They are dynamic and believe in creating a better relationship with clients
and providing them with the necessary advisory to create a competitive advantage,
drive sustainable growth, and overcome the challenges of expansion and
competition.They are committed to providing tailored solutions that help businesses
to become more resilient.
Insights School of Business is an initiative of Beta Insights Business Advisory with
the motive of transferring their knowledge to young graduates (MBA, BBA,
Commerce) and professionals.At Insights School of Business,they believe in
leveling the field when it comes to exposure and knowledge.They provide real-time
industry-based projects to graduates with the motive of making them industry-
ready.We cannot ignore the fact that there is a huge gap between classroom
education and what the industry is looking for.The projects and internship under
this program are inspired by industry trends.They train and mentor students so that
they can become significant stakeholders and be able to contribute to their personal
development and collectively to the nation’s development.
COMPANY LOGO

b. Background of the project

In this report,I will discuss about the three projects that I have made during my
internship programme.The first project that I worked on was an industry outlook
report.Industry Outlook is a comprehensive service that provides detailed information
on Indian industries. It includes the mining, manufacturing, utilities and and services
industries.The two industries that I worked on were infrastructure and leather
industry.
The report involved points about the industry,impact of covid-19 on its existing
players,future outlook for those industries,emergig oppurtunities and access to raise
funding for a new start-up.
The second project that I worked on was a fund-raising project.In this project,we had
pitches of 4 new start-up companies.I had to study them and make a report to present
the investors that whether these companies are suitable for the fund-raising or not and
an estimate about their performance in the near future.
The third project was to prepare a financial modeling and valuation report of a firm
whose required financial statements were shared with us.I had to prepare a forecasted
income statement and balance sheet for the company.
Financial Statement Analysis is a method used by interested parties such as investors,
creditors, and management to evaluate the past, current, and projected conditions and
performance of the firm. Ratio analysis is the most common form of financial analysis.
It provides relative measures of the firm's conditions and performance. Horizontal
Analysis and Vertical Analysis are also popular forms. Horizontal analysis is used to
evaluate the trend in the accounts over the years, while vertical analysis, also called a
Common Size Financial Statement discloses the internal structure of the firm. It
indicates the existing relationship between sales and each income statement account.
It shows the mix of assets that produce income and the mix of the sources of capital,
whether by current or long term debt or by equity funding. When using the financial
ratios, a financial analyst makes two types of comparisons.

Financial ratio analysis is an important topic and is covered in all mainstream

corporate finance textbooks. It is also a popular agenda item in investment club
meetings. It is widely used to summarize the information in a company's financial
statements in assessing its financial health. In today's information technology world,
real time financial data are readily available via the Internet. Performing financial
ratio analysis using publications, such as Robert Morris Associates’ Annual Statement
Studies, Dun & Bradstreet’s Key Business Ratios, Moody’s Manuals, Standard &
Poor’s Corporation Records, Value Line Investment Survey, etc., is no longer
efficient. Since students and investors now have easy access to on-line databases, the
assignments on financial ratio analysis can be modified accordingly to enhance
learning. In the current scenario where financial instability is rife and financial
intuitions are becoming popular, when it comes to investing, the sound analysis of
financial statements is one of the most important elements in the fundamental analysis
process. At the same time, the massive amount of numbers in a company's financial
5statements can be bewildering and intimidating to many investors. However, through
financial ratio analysis, we shall be able to work with these numbers in an organized
fashion and present them in a concise form easily understandable to both the
management.and interested investors.

Financial statements provide an overview of a business' financial condition in both

short and long term. All the relevant financial information of a business enterprise
presented in a structured manner and in a form easy to understand, is called the
financial statements. Therefore these financial statements are very useful for the stake
holder, as they obtain all insight information. In assessing the significance of various
financial data, experts engage in ratio analyses, the process of determining and
evaluating financial ratios. A financial ratio is a relationship that indicates something
about a company's activities, such as the ratio between the company's current assets,
current liabilities or between its accounts receivable and its annual sales. The basic
source for these ratios is the company's financial statements that contain figures on
assets, liabilities, profits, or losses. Financial ratios are only meaningful when
compared with other information. Since they are most often compared with industry
data, ratios help an individual understand a company's performance relative to that of
competitors; they are often used to trace performance over time. Ratio analysis can
reveal much about a company and its operations. However, there are several points to
keep in mind about ratios. First, financial statement ratios are "flags" indicating areas
of strength or weakness. One or even several ratios might be misleading, but when
combined with other knowledge of a company's management and economic
circumstances, ratio analysis can tell much about a corporation. Second, there is no
single correct value for a ratio. The observation that the value of a particular ratio is
too high, too low, or just right depends on the perspective of the analyst and on the
company's competitive strategy. Third, a ratio is meaningful only when it is compared
with some standard, such as an industry trend, ratio trend, a ratio trend for the specific
company being analyzed, or a stated management objective. The significance of my
internship stems from the very nature of the financial statements i.e. they are usually
lengthy, bulky documents which have a huge array of numbers not readily
understandable. Financial statement analysis is the process of examining relationships
among financial statement elements and making comparisons with relevant
information. It is a valuable tool used by investors and creditors, financial analysts,
and others in their decision-making processes related to stocks, bonds, and other
financial instruments. The goal in analyzing financial statements is to assess past
performance and current financial position and to make predictions about the future
performance of a company. Investors who buy stock are primarily interested in a
company's profitability and their prospects for earning a return on their investment by
receiving dividends and/or increasing the market value of their stock holdings.
Creditors and investors who buy debt securities, such as bonds, are more interested in
liquidity and solvency: the company's short-and long-run 6ability to pay its debts.
Financial analysts, who frequently specialize in following certain industries, routinely
assess the profitability, liquidity, and solvency of companies in order to make
recommendations about the purchase or sale of securities, such as stocks and bonds.
Analysts can obtain useful information by comparing a company's most recent
financial statements with its results in previous years and with the results of other
companies in the same industry. My aim is to summarize all that data into a form
which is easily understood by all the relevant parties.
 PROJECT OBJECTIVES

The objective of this study is to provide insight into how the banks work, what are the
strengths and weakness of the bank. The ratios will be compared of both the banks
within the industry to see where the banks stand. To give the stock holder a clear view
about the financial feasibility of both the banks so that they can take the appropriate
decision. And most significantly it will provide a good understanding of the business
cycle and the yield curve - both of which have a major impact on the economic
performance of the bank. The primary objective of financial analysis is to forecast
and/or determine the actual financial status and performance of a project and, where
appropriate, of the EAs. This is to enable ADB to combine that information with all
other pertinent data (technical, economic, social, etc.) to assess the feasibility,
viability, and potential economic benefits, of a proposed or continuing lending
operation. Secondary objective is the provision of Technical Assistance to a borrower
and an EA to enable them to make similar assessments for the project and to apply the
techniques to other non-ADB investments. A tertiary objective is to encourage
borrowers to make any necessary changes to their institutional and financial
management systems to facilitate the generation of appropriate data to support good
financial analysis. The objectives of financial analysis as set out above are intended to
measure the achievement of financial objectives of a borrower, the project to be (or
being) financed. The financial performance of a public and private sector EA should
normally be measured by the use of at least one indicator selected from the range of
the following groups of indicators derived from the financial analysis of a project and
its EA: (i) operation; (ii) capital structure, and (iii) liquidity. This means that, if only
one indicator from one of the three categories of indicators above would be the
subject of a loan covenant, the remaining indicator or indicators from each group
above recommended by the financial analyst should be the subject of periodic
reporting. The efficient allocation of resources is an important consideration in pricing
policy, particularly for REEA services. Financial analysis is used to describe the
impact of such a policy. I worked on the financial statements of the bank i.e. Balance
sheet of the bank and make some essential calculations in order to give you an idea
about the financial stability of the bank.
We can use several tools to evaluate a company, but I will use one of the most
valuable tool that is “financial ratios“. Ratios are an analyst’s microscope; they
allow us get a better view of the firm’s financial health than just looking at the
raw financial statements. Ratios are useful both to internal and external analysts
of the firm. For internal purposes: ratios can be useful in planning for the future,
setting goals, and evaluating the performance of managers. External analysts use
ratios to decide whether to grant credit, to monitor financial performance, to forecast
financial performance, and to decide whether to invest in the company. I will use
Microsoft Word and Microsoft Excel work sheets to compute the different ratios and
analysis.
Sources of data
All the necessary information to prepare this report is collected from both primary and
secondary sources of data.
Primary data sources: It includes the fresh or completely new data sources collected
for a specified purpose, such as: Focus group meetings ,Direct observation ,Informal
discussion.
Secondary data sources: It includes sources of existing/published data.
Methods of data collection: All the necessary primary data are collected by using the
following methods or tools: Observation while working in different desks,Informal
discussion with professionals,Interview of risk management officers

Limitations of the study

The study has suffered from some barriers; Lack of structured and current information
as the firm’s policy does not permit to disclose various data related to my study and
this is the major problem among all the problems, I have encountered with.Time is
also a big constraint for my study. I have to submit a broader deal in a shorter form of
outcome. As I am an intern, I have to go under my day to day job responsibility that I
am supposed to do so. So I have tried my level best to get few more time to spend in
collecting data for preparing my internship report.
 PROJECT FINDINGS AND ANALYSIS

TASK 1-Future outlook report

 Had to prepare a future outlook report on any two industries out of a list of
industries.
The two industries that i worked on were leather and infrastructure indsutry.
The points i was asked to cover in the report were

 I was also expected to make a summary on opportunities of growth of these

industries in next 5 years.

TASK 2-COMMERCIAL DILIGENCE REPORT

 Acquisitive companies often have only weeks to decide whether to make an

offer,and an important decision factor is whether they believe a target
company's claims about its position in the marketplace,financial stability and
hypotheses about future growth potential.
 I was given four new start-up companies for which i had to prepare commercial
diligence report.
 I had to study the pitches given by the companies and decide which company has
a future growth potential and whether the funds raised would be fruitful or not.
 At last i had to prapare a scorecard and rate the company on some basis which
would make it easier for the investors to decide in which company they would
like to invest.
TASK 3-FINANCIAL MODELING AND VALUATION

 In the financial modeling and valuation project ,I had to prepare a forcasted

income statement ,cash flow statement and balance sheet from the information
given to me about a firm.
 After finishing with the valuation of the company,i had to prepare a financial
modeling of the firm in which i had to give my view on the potential of the
company on the basis of the valuation.
 The firm's details were hidden from us but the required creditentials were shared.

STARTUPS THAT I HAVE WORKED FOR-

 MOPP FOODS
 CHEMISTS MART
 COMEDY MUNCH
 DEYHAAT
SOME PICTURES OF MY INDUSTRY OUTLOOK REPORT
 LEARNINGS FROM THE INTERNSHIP

• Understanding of financial statements and ratios. (Pre-study material)

• How to look for information in financial statements and other freely

available reports (e.g. Investor presentation, Equity research reports,
conference call minutes, auditors report, etc.) (websites –
investing.com, moneycontrol.com, EMIS, Ace Analyzer)

• Understanding the key term sheet (finacial terms and regulations)

• One financial modelling & valuation

• Event Study (Stock Market Research)

 CONCLUSION

Financial Statement Analysis is a method used by interested parties such as investors,

creditors, and management to evaluate the past, current, and projected conditions and
performance of the firm. This report mainly deals with the insight information of a
company that I worked on for myfinancial modeling and valuation project. In the
current picture where financial volatility is endemic and financial intuition is
becoming popular, when it comes to investing, the sound analysis of financial
statements is one of the most important elements in the fundamental analysis process.
At the same time, the massive amount of numbers in a company's financial statements
can be bewildering and intimidating to many investors. However, through financial
ratio analysis, I tried to work with these numbers in an organized fashion and
presented them in a summarizing form easily understandable to both the management
and interested investors.

It is required by law that all private and public limited companies must prepare the
financial statements like, income statement, balance sheet and cash flow statement of
the particular accounting period. The management and financial analyst of the
company analyze the financial statements for making any further financial and
administrative decisions for the betterment of the company. Therefore, I select this
topic, so that I have done some financial analysis that will certainly help the
management of review their performance and also assist the interested people like
investors and creditors. That as a financial analyst how can I make any important
financial decision by analyzing the financial statements of the company. Because, it is
the primary responsibility of the financial managers or financial analyst to manage the
financial matters of the company by evaluating the financial statements. I am also
providing some important suggestions and opinions about the financial matters of the
business.
 BIBLIOGRAPHY

 Annual Reports

 https://betainsightsadvisory.com

 Internet sources

 www.investopedia.com

 Financial Statement Analysis : A Practitioner's Guide, 3rd Edition.