Financial Statement Analysis- Stepwise

Breakup of Project
Stage 1: To be submitted on 19th May 2015-Individual
1. Get the financial statements of a listed company selected in class from 200914
2. For 2013-14, Make a soft copy of the statements
a. Enter the Balance Sheet, Income Statement, Cash flow Statement,
Statement of Changes in Equity and Notes in Excel. (The qualitative
aspects can be ignored)
b. Use a strong connection of links. A thing once typed in the notes
should not show anywhere without links.
c. Your Balance Sheet, Income Statement, Cash flow Statement,
Statement of Changes in Equity should be made from just formulas and
links.
d. Each note should be in a separate worksheet. The worksheet name
should indicate the note number.
e. Make an Index to ease the movement
f. Be prepared to present your excel sheet in class on 19 th.

Stage 2: To be submitted on 9nd June 2015-Individual

3. Find the Common size financial
a. Common size Income statement and balance sheet for the six years
period
b. Make appropriate Bar/ Pie charts
4. Do a index number trend analysis, percentage change, percentage change
since base year
a. Make appropriate line graphs
5. Compute the ratios provided to you
6. Do a financial forecasting of 2014-2020 expected Balance Sheet, Income
Statement, Cash flow statement and statement of changes in Equity.
7. Comment on the companys profitability, solvency, liquidity, cash flow and
efficiency using the above numbers
a. Select a group of 5-6 ratios through which you are going to analyze the
particular aspect of the company
b. Use graphs/ charts/ tables etc to support your stance
c. Analyze the ratios as standalone, across time and across ratios.
8. Be prepared for a 5 minutes Viva in class on 9 nd June.

Stage 3: To be submitted on 23rd June 2015-Individual

9. Use appropriate number of companies to find industry averages
10.Differentiate between the financials of a Manufacturing Company, Bank,
Modaraba and Insurance Company with respect to their
a. Balance Sheet
b. Income Statement
c. Notes
d. Regulatory Bodies and requirements

e. Shareholding patterns
f. Ratios
11.Use the appropriate ratios to suggest if your company is a Shariah Complaint
Company or not

Stage 4: To be submitted on the day of the final examIndividual

12.Do a credit analysis on the lines of PACRA and suggest an appropriate rating
for the companys securities.
13.Comment on the quality of earnings
a. Do discuss the audit report
14.Comment on the Corporate Social Responsibility of the Company and the
Earning for the Family/ Shareholders
a. Give special focus to statement of wealth creation
15.Analyze your Business with respect to the current economy of Pakistan
16.Based on all your analysis, use appropriate tools to find the expected stock
price and suggest if the company is under or over rated.

Stage 7: To be submitted on Last Class

1. In groups of 5, make a documentary/ song/ movie to capture one aspect of
the financial statements

Stage 8: Bonus (To be submitted after 3 days of the final

exam)-10% extra marks-Individual
(Not Compulsory)
17.Get an article on analysis of an industry published in DAWN, Business
Recorder, Tribune, The News, The Nation, Financial Times or any other leading
English news paper in Pakistan

Submission Guidelines
1. Times new Roman, font 12
2. The marks for the all submission are quality based however they are
proportional to quantity, if you do no work your marks will be zero.
3. Your final excel printout would have
a. Header and Footer
i. Page numbers, roll number(class and univ), course name,
course day, company name
b. Portrait or landscape pages as required
4. The submissions must have a table of content
5. All your final work must be submitted in
a. Hard Copy in a box folder (appropriate size to your working),
properly arranged and titled as if its a quote being sent for a
tendor
i. A proper front cover mentioning your name, roll number,
course name and course day
b. Soft copy emailed to mobeen.ajmal@umt.edu.pk
c. The subject of the final submission will be
i. FM_Final_Rollnumber_Name_Courseday
ii. i.e. FM_Final_13_Mujtaba Rahim_ Sat
d. Work sent more than 3 days late will be heavily penalized (50% of
that submission result)