Note on Group Project

1) Select at least 6 companies in the respective sector

2) Conduct PESTEL Analysis of the sector and study about the Industry
3) Highlight Major points of Management Discussion & Analysis
4) How has the shareholding pattern changed over last 5 years\
5) Identify Major observations from Auditor’s report
6) Comment upon the Inventory Valuation technique used by each company
7) Comment on the depreciation method adopted by each company
8) What are the source of capital for each company?
9) Conduct ratio Analysis of each company and comment upon the performance of each
company for last 10 years
a) Liquidity b) Profitability c) Solvency d) Dividend payout
10) Calculate Productivity & Efficiency ratios of each company
11) Prepare Common Size Statement for each company for last 5 years and comment upon
the performance
12) Also conduct Trend Analysis for each company on Sales, Asset & PAT for last ten years
and comment on it
13) Conduct Du Pont Analysis for each company for last 5 years and comment upon the
change
14) Prepare comparative statement for all company and comment upon the performance
15) Also comment whether in last 10 years company has initiated any corporate action such
as Buy back, Stock Split , Bonus Share
16) Evaluate the share price performance of last ten year by looking at annual returns and
standard deviation
17) Also compare the performance with the sector index and Sensex/NIFTY
18) Comment upon the Cash flow statement of each company and Source and Application of
cash

Depreciation Valuation: - Depreciation is provided on a pro-rata basis on the straight-line

method based on estimated useful life prescribed under Schedule II to the Companies Act,
2013 with the exception of the following: - plant and equipment is depreciated over 3 to 21
years based on the technical evaluation of useful life done by the management. - assets
costing Rs. 5,000 or less are fully depreciated in the year of purchase. Freehold land is not
depreciated. The residual values, useful lives and method of depreciation of property, plant
and equipment is reviewed at each financial year end and adjusted prospectively, if
appropriate.

Inventory Valuation: - Inventories are valued at the lower of cost and net realizable value.
Cost is computed on a weighted average basis. Cost of finished goods and work-in-
progress include all costs of purchases, conversion costs and other costs incurred in
bringing the inventories to their present location and condition. The net realizable value is
the estimated selling price in the ordinary course of business less the estimated costs of
completion and estimated costs necessary to make the sale.