MANAC Project Guidelines
MANAC Project Guidelines
• Each Group will choose one industry and 3 companies in that industry. The
same will be conveyed to the CR on first come, first served basis. No 2 groups
will be working on exactly the same industry. For example, 2 wheelers, 4-
wheeler passenger cars and HCV’s are 3 different categories.
• Reason for the choice of Industry (why you think it’s an important industry).
• Broad structure of the industry (size, major players, market share data, a
brief about the choice of companies you have made, CEO etc, major issues
confronting the industry, generic business model and the cost structure of
the industry etc).
• Conduct a 5 Force Porters Model analysis of the industry.
• List some major macro-economic factors which affect the industry and how.
• Two major Accounting policies in the industry: how well they compare with
International standards, and identify any deviations by any player.
• Impact of IFRS, if any
• Future trends and recent newspaper articles related to the industry/ or
players in the industry (at least 3 news items)
• Extract all the ratios from a Database like Bloomberg, Capital Line (no money
control etc) (under the heads of Liquidity, Solvency, Turnover or Efficiency,
Profitability) for the three companies in your sector for last 5 years and
discuss the trends.
• Under Financial Ratios
o Liquidity: Current ratio, Acid Test Ratio
o Solvency: Debt Equity Ratio, Debt Service Coverage Ratio
o Turnover: Asset turnover, Inventory turnover (Inventory Holding
Period), Debtors turnover ratio (Average collection period), Creditors
turnover ratio (average payment period)
o Profitability: Gross Profit Margin, Net Profit Margin, ROA, ROE, EPS