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Guidelines For Financial Management Project Report

The document provides guidelines for a financial management project report that will be completed by groups of 5 students. It outlines two parts: a practical examination on working capital analysis of two companies and a ratio analysis project. For the working capital analysis, students will calculate and analyze working capital, cash conversion cycles, and observations for two companies from different sectors. For the ratio analysis project, each student will calculate and analyze key financial ratios for their assigned company and industry over three years and compare ratios between the company and industry. The group will submit a combined spiral bound report of both analysis projects.

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Tejas D Husukale
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42 views2 pages

Guidelines For Financial Management Project Report

The document provides guidelines for a financial management project report that will be completed by groups of 5 students. It outlines two parts: a practical examination on working capital analysis of two companies and a ratio analysis project. For the working capital analysis, students will calculate and analyze working capital, cash conversion cycles, and observations for two companies from different sectors. For the ratio analysis project, each student will calculate and analyze key financial ratios for their assigned company and industry over three years and compare ratios between the company and industry. The group will submit a combined spiral bound report of both analysis projects.

Uploaded by

Tejas D Husukale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Guidelines for Financial Management Project Report

Details regarding the Term End examination (Practical and Written) of Finance
Management:

Practical Examination will be taken on report prepared on Working Capital and Ratio Analysis
by group of 5 students.

Instruction for Working Capital Project: Analysis of Working Capital of two companies

1) choose two listed companies- one from manufacturing sector (take the company which is
allotted to you) and the other from any sector other than manufacturing sector (you have to
select the company) 
2) download their annual reports for 2018-2019
3)procure the list of their current assets and current liabilities, calculate their working capital
4) calculate the cash conversion cycle for the manufacturing firm
5) list your observations - 
a) type of working capital 
b) difference between the working capital needed for the different sectors- the reasons for the
same

Instructions for Ratio Analysis Project: Analysis and Interpretation of Ratios

1. Each student in the group will work on the company and Industry allotted to him/ her.
2. You have to calculate ratios from the Balance sheet and Profit and Loss A/c of the
company for last 3 years (2017, 2018 & 2019) and do a comparative analysis and write
its interpretation. The students will work on following ratios. (Table format)
a) Liquidity Ratios: Current ratio, Liquid Ratio/Quick Ratio
b) Profitability Ratios: Net profit Ratio, Operating Profit /PBIT Margin ratio, Return
on Assets (ROA). Return on Capital Employed (ROCE), Return on Shareholders’
Funds/Net worth (RONW).
c) Long Term Financial Position/ Solvency Ratios: Proprietary Ratio, Debt- Equity
Ratio, Debt to total Capital employed Ratio, Fixed Assets to Proprietor’s Funds ratio,
Interest Coverage Ratio
d) Asset Management/ Operating performance Ratios: Inventory Turnover Ratio,
Debtors Turnover Ratio, Creditors Turnover ratio, Fixed Assets Turnover ratio,
Working Capital Turnover Ratio
e) Market Test Ratios: Market Value to Book Value Ratio, Price Earning (P/E) Ratio,
Earning Yield ratio, Dividend Payout ratio
3. The student will also do comparative analysis of the following key ratios of the
company and the industry for 2019 and write the interpretation. (Table format)
i) Debt Equity Ratio
ii) Current ratio
iii) Debtors turnover ratio
iv) Inventory turnover ratio
v) Fixed Assets turnover ratio
vi) Interest Coverage Ratio
vii) PBIT/ Operating Profit Ratio
viii) Net Profit Ratio
ix) Return on capital employed
x) Return on net worth

4. Finally, the group will submit a spiral bound copy of the above two projects
combine.

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