Project Assignment – Financial Management
As an integral component for learning and evaluation the students are being assigned a project on Financial Management Practices in Indian Companies. This is a group activity and it is expected that each member of the group would actively participate in the exercise.
Each group to select one company from the industry assigned and study the financial statements (Balance Sheet, P& L, Cash Flow Statement, schedule to accounts, Directors’ Report and Management Discussion and Analysis.)
The report should highlight significant trends in Financial Management. At-least the following aspects must be covered:
a) Assets Composition – Fixed Assets vs. Net Current Assets. Any trend in the fixed assets creation in relation to sales/income.
b) Working Capital Management – Trends in Inventories, Cash, Receivables and Current Liabilities. Financing of Working Capital – use of bank finance, public deposits etc. Investment of surplus cash.
c) Capital Structure – Trends in Capital Structure, Use of debt vs. equity. Any innovative instruments – FCCB, ADR etc. , Cost of capital using the available information, EVA calculations
d) Dividend Policy – dividend payout trends and any other method of rewarding the shareholders.
The report should cover financials of last 5 years. The focus should be on Financial Management practices and NOT on accounting. To understand the trends relevant financial ratios may be used. Offer your comments of the practices being followed by the company.
The list of industries assigned is set out below:
Group Industry
1 IT- Software
2 ...