Institute of Management, Nirma University

Master of Business Administration, Batch 2023-25

Financial Reporting and Analysis– Term I
Instructors: - Prof. Ritesh Patel

Guidelines for Group Assignment 2

You are required to read the annual reports of the same companies assigned to you for
Assignment 1, and answer questions (1) to (13). Groups will remain the same as for
group Assignment 1.

II GUIDELINES FOR UPLOADING ON MOODLE:

 The first page must include names, roll numbers and section of all the
students of group.
 The report must be uploaded in pdf or Ms-Word format on LMS, and the
file name must be: FRA Group Assignment 2 <Group no.>_<Section c
 Date of Submission: - September 1, 2023, Monday 05.00 PM (Moodle).
(Hard Copy to be submitted on the same day before 4.00 PM)

III Evaluation and Marking Scheme:

All answers to questions: only 80% 0f marks allocated for the 50 Marks
correctness and balance 20% for original and meaningful
presentation

Questions:
Q-1 Read the ‘Contents’ page. Mark the items that relate to financial
Aditi statements as ‘FS’ (Financial Statement) and the rest as ‘NFS’ (Non-
Financial Statement). What information does the company provide in
items that you have marked as ‘NFS’? Is this information useful? How?
Who is the intended audience? Will they be able to understand the
information? Give highlights of ANY THREE major ‘NFS’ items

(4 Marks)

2
3*2=46 Marks
Abhishek Q-2 When was the annual general meeting to be held? What were the
items to be discussed?

Abhishek Q-3 How is the information in the notes to the financial statements
useful? Give five examples of how the notes explain the items in the
financial statement

Vanshika Q-4 Identify ANY THREE matters covered by the accounting

policies/estimates and write their current year-ending balances.

Vanshika Q-5 Think of information that you think would be useful but not
disclosed in the financial statements. Why do you think the information
is not disclosed?

Shashank Q-6 List the main items on which the auditor’s report. Give details of
three items that significantly affect the financial statements.
Shashank Q-7 How much was the auditor’s remuneration? Give a detailed breakup
of the same.

Shashank Q-8 Highlight the concerns raised by the auditors in their report. Give
details of such items.

Shashank Q-9 What are the company’s major items of revenue? How these items
have changed in percentage in the last five financial years?

Shashank Q-10 State the revenue recognition policy of the company for sales
revenue.

Shashank Q-11 Identify the sources of the company’s gains and other non-
operating income. What is the proportion of these items in relation to
the total income and Net Profit After Tax?

Shashank Q-12 How much did the company spend on advertising, sales promotion
and general marketing? What is the proportion of these items in relation
to the total expenses, Net Profit After Tax and sales revenues?

Shashank Q-13 What is the absolute amount and proportion of finance costs to the
total revenues? How these items have changed in percentage in the last
five financial years?

Shashank Q-14 Identify the top three weighing expense heads in relation to the
sales revenues. What are the accounting policies pertaining to these
three heads of expenses?

Shashank Q-15 What is the percentage of depreciation/amortization expense in

relation to the gross block value of the fixed assets and total expenses?
What is the depreciation method and accounting estimates involved in
charging depreciation in fixed assets?

Aditi Q-16 How does the company measure its fixed assets? What is the
amount of fixed assets purchased during the year? What is its
proportion in the total assets? Is this proportion significant? Why?

Aditi Q-17 What is the amount of fixed assets sold/discarded during the year?
What is its proportion in the total assets? Is this proportion significant?
Why?

Aditi Q-18 What is the amount of capital work in progress finished and
transferred to the fixed assets during the year?

Aditi Q-19 What is the proportion of Intangible assets in the company's total
assets? How does the company measure Intangible assets? Give two
examples of the company’s intangible assets.

Aditi Q-20 What is the proportion of long-term investments in the total

assets? What is the change in this proportion as compared to the
previous year?

Aditi Q-21 How does the company measure its Inventories? Is there any
change in the inventory measurement as compared to the previous
 year? If yes, give details.

Aditi Q-22 Business Responsivity Report

Read carefully through this section and give details of the three most
significant items mentioned therein
Aditi
Q-23 Corporate Social Responsibility Report
Read carefully through this section and give details of the three most
significant items mentioned therein
Kartik
Q-24 Management Discussion and Analysis (MDA)
Read carefully through this section and give details of the three most
significant items mentioned therein
Kartik
Q-25 What are the major items of expenses? How these items have
changed in percentage terms as compared to the previous financial
Kartik year?

Q-26 Identify the company’s losses and other non-operating expenses.

What is the proportion of these items in relation to the total expenses
and Net Profit After Tax?

Vanshika
Balance Sheet (8 x 2 = 16 Marks)
1. List two assets having highest proportion in the total assets
Vanshika of the company. Write their percentage weight in the total
assets.
Vanshika 2. What is the proportion of Intangible assets in the total assets of
the company?
3. What is the percentage of depreciation/amortization expense in
Vanshika relation to the gross block value of the fixed assets and total
expenses?
Vanshika 4. What is the depreciation method and accounting estimates
involved in charging depreciation in fixed assets?
Vanshika 5. What is the proportion of Non-current investments in the
total assets?
Vanshika 6. What is the proportion of the trade receivables in relation to
Vanshika the revenue of the company?
7. What is the proportion of current liabilities to current assets?
8. What are the company’s contingent liabilities? List any 2
Kartik
Statement of Profit and Loss (7 x 2 = 14 Marks)
9. What is the turnover of the company for the current year and
Kartik the previous year? How much is the change in turnover
compared to the last year?
10. What is the profit before tax (PBT) for the current year and the
Kartik previous year? Compute the change in PBT compared to the
previous year?
11. What is the profit after tax (PAT) for the current year and the
Kartik previous year? Compute the change in PAT compared in Profit
after tax to the previous year?
12. How much dividend company has distributed during the
current year? How much dividend company had distributed in
the previous year? Compute the change compared in dividend
Kartik compared to the previous year?
13. What are the company’s major items of revenues? How these
items have changed in percentage terms as compared to the
Kartik previous financial year?
14. What was the total amount spent on employees? What is the
Kartik percentage to total revenue?
15. What is the absolute amount and proportion of finance costs
(Interest) to the total revenues?

Abhishek Statement of Cash Flow (10 Marks)

16. What is cash flow from operating activities, Investing activities
and Financing activities? What is the proportion of change in
Abhishek working capital to the total cash from operating activity? (4
Marks)
17. What is the pattern of cash flow as regards to 3 different
Abhishek activities? Explain.
(3 Marks)
18. Comment on cash flow statement with respect to cash flow from
operating, investing and financing activities from the current and
Abhishek previous year. (3 Marks)
Overall (6 Marks)
19. Comment about the company based on all financial statements
Abhishek and other key financial information available from the report. (3
Marks)
20. Briefly state the significant information available in public
domain (such as newspapers, magazines etc.) about the company
since April 1, 2020 till date, if any. The information must be
supported by reference of a newspaper or a magazine or any
other source. (3 Marks)

Refer to the Evaluation and Marking Scheme for total.