Updated Project Instructions

The project will have two components – individual, and the group. The title of the individual project
should be ‘Financial Statement Analysis of ………….(name of company)’ and of group project should be
‘Comparative Analysis of Companies in ……….(name of Industry) Sector’. Please read the following
instructions carefully and abide by them.

For Individual Part:

 The data (Standalone Financial Statement) can be taken from three to five years from annual
reports of the company. The fifth year should be latest year.
 The data for the project has to be sourced from Capitaline database.
 Horizontal and Vertical Analysis for two latest years
 Trend Analysis for three to five years
 Ratio Analysis for last three to five years.
 Sustainable Growth Report for 2021-22 (maximum 200 words)
 Ratios to be computed for each of the last five years are:
1. Liquidity: CR, Quick ratio, Cash Ratio, Finished Goods Inventory Turnover & AHP, Trade
Receivables Turnover& ACP. After calculating the ratios, interpret and comment on each
type of ratio by looking at past five years’ ratio. In the end give a final comment on the
liquidity position.
2. Solvency: D/E ratio, Liabilities to Equity, Interest Coverage Ratio, Fixed Coverage Ratio.
After calculating the ratios, interpret and comment on each type of ratio by looking at
past five years’ ratio. In the end give a final comment on the solvency position.
3. Profitability: EBIT Margin, NPM, Asset Turnover, ROA, ROE, Dupont Analysis (only for
2021-22). After calculating the ratios, interpret and comment on each type of ratio by
looking at past five years’ ratio. In the end give a final comment on the profitability
position.
 The final report in single excel sheet with five sheets (named Horizontal, Vertical, Trend, Ratios
and Sustainable Growth) and their analysis is to be submitted by 16th October 2022 on moodle
and the excel file name should have name of student and Roll no.

For Group Part

 Industry Overview: Balance-sheet characteristics of a particular industry, SWOT, Overall
attractiveness of the Industry from investment point of view, Critical factors that determine
company’s success within the industry and future prospects of industry.
 Compare the companies under your given industry with respect to liquidity position, solvency
position and profitability performance.
 Conclude by giving your opinion as an investor, lender and supplier about the company in your
sector that should be selected from given stakeholder’s point of view. Support your opinion by
giving reasons.
 The final report in word file is to be submitted by 16th October 2020 on moodle and the word
file name should have the study group number.

You are advised to read the annual report of the company being analyzed to do a meaningful analysis
and interpretation.

For any issue with the Capitaline, Please contact Mr Amit Sharma on 9650396907