Academic Task Number: 2 Course Code: ACCM630

Date of allotment: 06th May, 2024 Course Title: Financial Statement Analysis
Date of submission: 20th May, 2024 Maximum Marks: 30
Academic Task Type: Assignment

S No. Objective of Academic Activity Topic Evaluation Parameters

CA-2 To construct a statement of free cash Prospective analysis, corporate reporting Evaluation will be done
(Assignment) flows, prepare projected financial and free cash flows as per the Rubric.
statements, determine the value of a firm
and perform scenario and sensitivity
analysis.

Question Marks per

Question Statement Course Outcome Bloom’s level
Number Question
Q1 Construct the statement of free cash flows in Excel for the 5
next five years. The statement of projected cash flows
CO4 L6: Create
shall be developed by taking into account the actual cash
flows of the allotted company for the previous five years.
Based on the assumptions given, prepare projected
Q2 income statement, balance sheet, and cash flow statement L6: Create 5
CO4
in Excel for the next five years. Write down the key
interpretations.

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Q3 Determine the value of the firm using the following CO4 L4: Analyze 5
valuation models:
✓ Discounted cash flow model
✓ Comparable company analysis
✓ Historical transaction analysis
Q4 Using suitable assumptions undertake scenario analysis CO4 L4: Analyze 5
for the best, moderate and worst-case scenarios.
Q5 Using sensitivity analysis, examine the following: CO4 L4: Analyze 5
✓ Impact of revenue from operations on net profit.
✓ Impact of revenue from operations and COGS on
net profit.
Q6 Review the following of the allocated company and CO5 L5: Evaluate 5
summarize the key points:
▪ Annual report
▪ Director’s report
▪ Management Discussion and Analysis
▪ Notes to accounts

Important points to consider:

1.) The calculations are to be shown in the Excel sheet while interpretation and Q6 will be presented in the Word document.
2.) The assignment is to be uploaded to the UMS in the zip file format containing both the Word and the Excel sheet.
3.) Proper references in the form of exact web links are to be mentioned for all financial data used in the assignment preparation.
4.) Plagiarism will lead to outright cancellation of your CA.

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 Assumptions
1. Sales are expected to grow by _ Year on year
2. If capex Amount is Rs. __ at Year0 and Capex is expected to grow by 10% every year. Rate of depreciation to be charged is 12%
3. Employee benefit expenses were constant till year 3 and to be increased by ___ after that.
4. Company purchased additional Stock in trade of Rs. ___ Crore every year.
5. Tax Rate @30%__
6. The assets and liabilities have grown at the rate of 2.1%.
7. Rate of growth of cash from operations is ___.
8. Rate of growth of cash from investing and financing activities is 1.8%____.
9. Company is planning to take a debt of Rs. 12 crores at 12% interest in 2026.
10. Other income is expected to increase by 15% in first two years and 20% in the next three years.

Cash from
Stock
Sales Capex Capex Rate of Employee Tax Asset and Cash from investing
Reg. in
Name Roll Number Growth Amount Growth Depreciation Benefit Rate liabilities operations and
Number Trade
% (Cr) % % Expense % % growth % growth % financing
(Cr)
growth %
Simrandeep
12102980 RQ2E40A01 12 4532 8 10 11 376 16 1 2.81 1.53
Singh
12301949 Dhivya T RQ2E40A02 12 4315 8 12 14 308 25 3 2.57 2.64
12314169 Dayna Dhali RQ2E40A03 16 3805 7 11 10 343 24 2.5 3.65 3.45

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 Cash from
Stock
Sales Capex Capex Rate of Employee Tax Asset and Cash from investing
Reg. in
Name Roll Number Growth Amount Growth Depreciation Benefit Rate liabilities operations and
Number Trade
% (Cr) % % Expense % % growth % growth % financing
(Cr)
growth %
12305012 Mehul Madan RQ2E40A04 16 3771 8 10 11 327 17 1.5 1.25 2.69
12316621 Nikita Shah RQ2E40A05 14 7810 4 11 14 254 14 1.52 1.24 1.54
12309687 Sejal Marwaha RQ2E40A06 12 6520 2 15 16 364 18 4.53 1.95 1.61
Yawar Imran
12304892 RQ2E40A07 19 2460 6 13 19 486 24 2.65 2.25 1.26
Sherwani
12003577 Vivek Patel RQ2E40A08 14 7500 3 14 17 598 21 4.50 4.25 1.25
12013209 Priamb Rohatgi RQ2E40A09 18 3724 7 10 14 258 23 3.7 1.98 1.98
Prakash Kumar
12100733 RQ2E40A10 13 4085 8 10 14 315 23 2.6 2.64 1.65
Chaudhary
12312413 Sahil Bindal RQ2E40A11 14 3641 5 12 12 299 20 1.98 4.53 2.65
12325214 Parnav Kumar RQ2E40A12 12 4495 5 12 12 356 18 2.45 2.65 2.78
12313946 Nitika Dotiyal RQ2E40A13 16 4656 4 12 14 318 24 2.78 1.25 3.25
12312270 Sakshi Gautam RQ2E40A14 17 2980 4 11 12 630 21 1.50 2.26 1.54
12325518 Vivek Kumar RQ2E40A15 14 5410 5 10 11 250 24 1.36 3.98 2.65
Kanamarlapudi
12305747 Jaya Venkata RQ2E40A16 9 1622 3 12 10 125 22 1.25 2.36 4.50
Naga Durgaprasa

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 Rubric for the CA-2
QUESTIONS EXCELLENT GOOD AVERAGE BELOW AVERAGE POOR
5 4 3 1-2 0
Thorough and effective Detailed analysis and Construction of Improper building of Not attempted/not
projection of free cash flows projection of free cash flows projection of free cash model related to up to mark.
QUESTION-1 with the inclusion of all by taking into account flows by taking into projection of free cash
pertinent constituents with coherent arguments to account basic flows with no
the comprehensive justify the model components of the debt. justifications.
justification of all points. constructed.
5 4 3 1-2 0
All the assumptions are
correct, interpretation is All the assumptions are Few assumptions are
QUESTION-2 Not attempted/not
detailed with the correct but no correct with Incomplete statements
up to mark.
comprehensive justification interpretation is given. interpretations.
of all points.
5 4 3 1-2 0
- Demonstrates a profound - Shows a solid - Demonstrates a basic - Demonstrates a limited
understanding of valuation understanding of valuation understanding of understanding of
principles and assumptions. principles and assumptions. valuation principles and valuation principles and
Conducts extensive research Identifies relevant assumptions. Identifies assumptions. Attempts
QUESTION-3 to identify relevant comparable companies and some comparable to identify comparable Not attempted/not
comparable companies and past transactions with minor companies and past companies and past up to mark.
past transactions. gaps in research. Applies transactions but lacks transactions but lacks
Accurately applies valuation valuation models thoroughness in depth and insight.
models, making insightful accurately, making research. Applies Applies valuation
reasonable adjustments and valuation models with models with significant

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 adjustments and drawing drawing reasonable some errors and may errors and misses
comprehensive conclusions. conclusions. overlook relevant relevant factors.
factors.
5 4 3 1-2 0
Identifies clear scenarios Identifies suitable scenarios Identifies some scenarios Attempts to identify
and selects appropriate with reasonable with limited justification. scenarios but lacks clear
assumptions, providing assumptions and Presents findings but justification. Presents
QUESTION-4 Not attempted/not
thorough justification. justification. Presents lacks clarity. findings with
up to mark.
Presents findings clearly findings with adequate insufficient clarity.
with insightful interpretations.
interpretations.
5 4 3 1-2 0
Methodical and effective Methodical and effective
use of sensitivity analysis to use of sensitivity analysis to Constructed a general
QUESTION-5 Improper building of Not attempted/not
solve the problem, with the solve the problem, without model.
model. up to mark.
comprehensive justification the comprehensive
of all points. justification of all points.
5 4 3 1-2 0
Reviewed all the reports and Reviewed all the reports and Excerpts from the reports
QUESTION-6 Not attempted/not
presented a summary in own presented a summary in own are copied and no Incomplete
up to mark.
words with proofs. words without proofs. summary is given.

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