Assignment: Financial Analysis of Performance (Individual Project)
This is an individual Assignment. Each person is required to select a non-financial company of their choice. I suggest that you decide as a group which companies each of you will select (Raymond Ltd. is not a valid choice as it was covered during the program) so that the overlap between companies selected is minimized.
Please mention your name clearly on the first page of each submission. The files are to be named as follows name _ assignment no.__ You are required to submit your assignments to Ms. Deepa Verma who will subsequently collate the same and send to me.
The individual assignment relates to the analysis of financial information in the annual reports of the company chosen by you. Please ensure that the company is an Indian Listed Non-Financial Company. The medium-term trend analysis is to be carried out for the three pre-covid financial years of 2017-18, 2018-19 and 2019-20. You are also required to do a separate analysis of the impact of COVID-19 by comparing the performance of F.Y. 2019-20 with F.Y. 2020-21. Further, you are required to do a separate analysis of the post-COVID-19 developments by comparing the performance of F.Y. 2020-21 with F.Y. 2021-22.
As an optional element of the assignment, you may also identify a suitable listed competitor for the company of your choice and analyse itss financial performance in the same manner as for your selected company. In this case, you can also compare the performance and underlying drivers for both companies.
You are required to:
1. Identify the key ratios that you will use for your analysis and provide reasoned arguments for the choice of such ratios
2. Compute the ratios for the chosen company
3. Analyse the information provided by the ratios. Interpret your findings in terms of the key drivers of the metrics using the approach covered in the course.
4. You are also required to do an analysis of the underlying drivers of Return on Equity using Du-Pont Analysis and the analysis of Financial Drivers of Growth.
5. Summarize the overall analysis in terms of the potential problems facing the companies and the areas of positive change.
6. Evaluate the annual performance of the company over the period of analysis
The following sections should be a part of your final report
- Executive Summary of Report
- Brief Introduction to Company
- Key Financial Highlights
- Ratios for Analysis & Justification of Ratio Choice
- Interpretation & Analysis of Selected Individual Ratios over the period (i.e. the three year trend)
- Interpretation & Analysis of Selected Individual Ratios on a year-on-year basis (i.e. the annual performance)
- Interpretation and Analysis of ROE generation and financial management of growth.
- Conclusions & Expectations for Future Performance
Please note that you must make all calculations using the annual reports. You must not use ratios that have been made available on other websites/other reports. The report for each submission must be in MS-Word or PDF format and must not exceed 20 pages (excluding the coverpage and the table of contents). Please clearly mention your name on the cover page of the assignment report. The computation of ratios and the supporting financial statements for the same must be provided in a separate Excel file.
The deadline for submission of the assignment is 15th March, 2024. Please send all your submissions to Ms. Deepa Verma (deepa@xlri.ac.in).
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