select a listed company

General Instructions:

Each student is required to select a company (non-financial) of their choice. It is advisable to select a listed company to avoid facing problems of availability of financial statements. You can provide the same in the google form provided below:

https://docs.google.com/forms/d/1gVL7AhBdqBEcXkh7r-SuIAQmncF-KaB_XugjaYyIUKs/edit

In case two or more students have selected the same set of companies, they will be asked to change their choice of companies.

There are four assignments that will require you to use data of the selected company. You are required to submit all the assignments in one archive file (.rar or .zip extension) to Mr. Susanta Mandal of the VIL office through email and mark a copy to me. Please note that non-submission will lead to zero marks being awarded for each un-submitted assignment. There will be no re-examination as there is no end-term for the course. The deadline for submission of all assignments of the course is midnight of 14th July, 2022

Please mention your name and roll number clearly on the first page of each submission. The files are to be named as follows “roll no. _assignment no.”

Instructions for Assignment 1 (50 Marks)

Assignment 1 relates to the analysis of financial information in the annual reports of the company chosen by you. The analysis is to be carried out for the financial years of 2017-18, 2018-19, and 2019-20. While there is no requirement to analyze the financial statements of 2020-21 as part of the assignment, you may choose to analyze the same for your own understanding.

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. Identify at least 5 key listed competitors in the industry for your selected company and justify the choice of competitors.

3. Analyze the information provided by the ratios. Interpret your findings in terms of the key drivers of the metrics.

4. Summarize the overall analysis in terms of the potential problems facing the company and the areas of positive change.

The following sections should be a part of your final report

Executive Summary

Introduction to Company

Key Financial Highlights

Ratios for Analysis & Justification of Ratio Choice

Interpretation & Analysis of Selected Individual Ratios

Summary of Analysis

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. Please note that I will give zero marks for ratios that have not been computed. The final report for each submission must be in MS-Word or PDF format and must not exceed 20 pages (excluding the cover‐page and the table of contents). Please mention your name and roll number clearly on the cover page of the assignment. The computation of ratios and the supporting financial statements for the same must be provided in a separate excel file.

This assignment is for 50 marks. The following is the detailed marking scheme for the assignment:

Executive Summary

Introduction & Key Financial Highlights

Computation of Ratios for companies

Choice of Industry Competitors

Interpretation & Analysis of Ratios

Summary of Analysis & Expectations

(Max 5 Marks)

(Max 5 Marks)

(Max 10 Marks)

(Max 5 Marks)

(Max 20 Marks)

(Max 5 Marks)

Instructions for Assignment 2 (Max 15 Marks)

This assignment requires you to do a Du-Pont analysis of ROE and ROI of your chosen company for the financial years of 2017-18, 2018-19, and 2019-20.

Your analysis must be based on at least three approaches to Du-Pont Analysis of ROE and one approach to Du-Pont Analysis of ROI that we have covered during the course. The objective of this assignment is to familiarize you with and test your understanding regarding the application of Du-Pont Analysis for identification of underlying business problems/improvements faced by/done by the organization concerned. You have to proceed with the Du-Pont analysis in the same investigative manner that we have applied during the course and come out with a clear identification of the problem areas and the improvement areas. You may do this at two levels, first, for each individual ratio/dimension of Du-Pont, and second, the overall analysis using all dimensions. Based on your analysis, you may come up with your assessment of the future trends in the performance of the assigned companies.

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. Please note that I will give zero marks for ratios that have not been computed. The report for each submission must be in MS-Word or PDF format and must not exceed 8 pages (excluding the cover‐page and the table of contents). Please mention clearly your name and roll number on the cover page of the assignment. The computation of ratios and the supporting financial statements for the same must be provided in a separate excel file.

The following is the detailed marking scheme for the assignment:

Computation of Ratios for Du-Pont Analysis

Identification of Individual Problem & Improvement Areas

Overall Analysis of Problem & Improvement Areas

(Max 3 Marks)

(Max 6 Marks)

(Max 6 Marks)

Instructions for Assignment 3 (Max 20 Marks)

This assignment requires you to do a Growth Analysis of your chosen company for the financial years of 2017-18, 2018-19, and 2019-20.

You must apply the two SGR models covered in the course as well as the Self-Supporting Growth Rate Model. The objective of this assignment is to familiarize you with and test your understanding regarding the assessment of Sustainable Growth and the financial & business drivers of growth. You have to do the following:

Calculate the SGR using each of the three approaches covered during the course

Identify the Key Drivers of the change in growth rates during the period

Analyze the sustainability or otherwise of the drivers and their impact on the business model of the company

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. Please note that I will give zero marks for ratios that have not been computed. The report for each submission must be in MS-Word or PDF format and must not exceed 10 pages (excluding the cover‐page and the table of contents). Please mention clearly your name and roll number on the cover page of the assignment. The computation of ratios and the supporting financial statements for the same must be provided in a separate excel file.

The following is the detailed marking scheme for the assignment:

Computation of SGR & SSGR

Identification & Analysis of Financial Drivers of Growth for each year

Analysis of changes in SGR and Financial Drivers of Growth during the period

(Max 5 Marks)

(Max 8 Marks)

(Max 7 Marks)

 

Instructions for Assignment 4 (Max 15 Marks)

Assignment 4 relates to the Analysis of Bargaining Power of the company chosen by you. This assignment requires you to evaluate the nature of the changes in Bargaining Power with customers for the financial years of 2017-18, 2018-19, and 2019-20.

The objective of this assignment is to familiarize you with and test your understanding regarding the assessment of Bargaining Power. You will have to identify the competitors and justify your choice of competitors chosen for the analysis. The industry average has to be calculated considering both the competitors and the selected company. You have to evaluate the changes in bargaining power over time as well as with respect to the competitors.

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. I will give zero marks for ratios that have not been computed. The report for each submission must be in MS-Word or PDF format and must not exceed 6 pages (excluding the cover‐page and the table of contents). Please mention clearly your names and roll number the cover page of the assignment. The computation of ratios and the supporting financial statements for the same must be provided in a separate excel file.

The following is the detailed marking scheme for the assignment:

 

Identification of Industry Competitors

Computation of Industry Average Ratios

Analysis of Relative Bargaining Power Position in Industry

(Max 3 Marks)

(Max 6 Marks)

(Max 6 Marks)