1.

Company background:
Mention the sectors that the company operates in, main products/brand names, market
share, geographies of operations, new developments, main competitors etc.
Which business segment and/or geographical segment - generates most revenues, is the
most profitable, employs the most capital & tangible assets

2. Company Management:
Board Size & Composition –is the board diverse enough with reference to Gender, Age,
Educational Background, Experience, independence etc.
Has the company expanded board size?
Compensation to directors – as % of revenues & increase over last year.
How many Board meetings were held during the year?
Do these directors also hold directorships in other companies?

3. Shareholders:
Issued Share Capital : No of shares & par value.
Has the company issued any shares during the year? How & to whom were they issued?
Has the company bought back any shares?
What is the shareholding pattern? Has it changed as compared to the immediate
previous year?
Have the directors pledged their shareholding as security? How much and Why?
The shares are listed on which exchanges?
What is the highest & lowest price at which the shares traded during the financial year?
What is Book Value of the shares? How does book value compare with the par value &
the current market price?
Do you observe any relation between the Sensex/Nifty & the company’s stock prices?
When was the AGM held? What was the agenda for the meeting?
Have the directors proposed/declared dividends? What portion of current earnings is
distributed as dividends?

4. Auditors:
Who are the auditors? Have they changed from the last year?
Are there any negative comments in the audit report? Does the audit report contain any
recommendation to present/potential investors?
What is the total compensation to the auditors? Did the auditors provide any non-audit
services also?

5. Fixed Assets:
What is the total investment in fixed assets as % of total assets?
What is composition of tangible & intangible assets?
Has the firm made additional investments in fixed assets? How does this compare with
current revenues, profits, operating cash flows?
Has it scrapped or sold any fixed assets – what was the profit/loss in that case?
What is the policy for depreciation? Is it the same for all types of assets?
What is the depreciation as % of total revenues?
Has the company revalued any of its fixed assets during the year?
 How much revenue is generated per rupee of investment in fixed assets?
What the return on total assets, return on fixed assets?
What % of last year’s revenues, profits, operating cash flows is invested in additional
fixed assets?

6. Inventories:
What type of inventories does the company hold?
What is the total investment in inventories? How does it compare with the previous
year?

7. Long Term Borrowings:

What are the sources of long term debt? Has the composition changed?
Are the borrowings in different currencies?
Which assets are offered as security against the borrowings?
What % of total assets in funded by long term debt?
Did the company raise additional/repay existing long term debt during the year?
What were the specific reasons for additional borrowings during the year?
What is the average cost of these borrowings?
What is the interest coverage ratio?
Are operating cash flows sufficient to meet interest & principal obligations?

8. Other:
What kind of investments has the company made? How much is trading purposes?
How much income did the company get during the year from its investments?
What kind of contingent liabilities does the firm have? How much are these as % of
current revenues/operating cash flows?
What is the nature of the extraordinary gains/losses?
What is the effective tax rate?
What are the major reasons for the current profits increasing/decreasing as compared
to the previous year?
Is the company generating sufficient cash from its operating activities? What are the
major reasons for the differences between operating profits and cash flows?

9. Ratio Analysis:
Analyze the performance of the firm for the current and compare performance with
previous years’. Also compare with peers in the industry. Use appropriate ratios.