PGP-BL; Financial Accounting (FA) -Instructions

1. The submission deadline is June 6th, 2023. Download the two most recent annual
reports for the assigned company from the capitaline or prowess. Further, you may find
the required information on the company's website.
2. The overall objective of the assignment is to evaluate the financial health of the
assigned company by analyzing financial statements. You are expected to use the
balance sheet, statement of profit and loss, cash flow statement, MDA, accounting
policies, notes, etc. Your company can be compared to a company in the same industry
that you perceive to be its closest competitor or the ideal/best company.
3. In your report, you should include the following details:
I. Industry/market snapshot: Specify the industry and market in which the company
operates. Describe the industry in terms of its size, growth rate, and any other
pertinent characteristics. Describe the industry/market's dynamics in terms of
customers, competitors, potential entrants, product/service substitutes, and
suppliers.
II. Significant accounting policies and quality of earnings.
III. The Analysis of Income statement & Balance Sheet
a. Common Size statements: - Income statement and B/S, Analysis of trend
& Growth
b. Cash from Operations vs Net Income
IV. Ratio Analysis and Dupont analysis
a. Overall performance (ROE,ROIC, and ROA)
b. Dupont analysis: Calculation of relevant ratios under each driver: margin
ratios, activity ratios, leverage, and liquidity ratios
4. You are required to compute financial ratios for current year and compare with the
competitor. For computing financial ratios, use the definition of ratios explained during
the class. Avoid using your own definition or from the textbooks.
5. You can append important excel sheets (just don't dump data). Normally we expect a
six-to nine-page word document and a two- three-page Annexure including data or
computations. The maximum number of pages allowed is ten excluding annexures.
6. You are strongly discouraged from engaging in the 'cut and paste' culture, since
financial statement analysis of many of the assigned companies are found in popular
websites. Additionally, you are not permitted to copy and paste the MDA or Chairman
Reports. Any attempt on this front would lead to heavy penalty in marks.