PGPM2018_Financial Accounting Pre-contact Assignments 50 marks

Real Data Analysis

Obtain the latest annual reports of three companies of divergent Industries ( such that the differences in
Balance sheets are clearly seen---for eg. a software company, a manufacturing company, a retail
company) for 3 years ( where you have a share holding OR where you would be interested in a share
holding)The easiest way to obtain these annual reports is to download them from companies website.
Using these annual reports , answer the following questions:

What are the different components of an annual report( in brief)? What is the nature of
information derived from each of them? What are the types of stakeholder that need to look at
annual reports?
What are the major sources of revenue of these companies.? What is its % to the total income.
Comment on the growth in income over the last 3 years. Can you identify some reasons for the
growth/or lack of it? (read Directors report) What composes other income in the income
statement. What % is this to the total income . Comment on aspects which you find is a learning
for you in this regard.
Review each companys note on revenue recognition. (You will find this in accounting policies
listed after the financial statements).In what way is your understanding enhanced with this
information .
What is the major chunk of expenses. Express it in % terms (% to Total income).Has there been
any change over the years.
Comment on the asset composition w.r.t need, /importance/typicality of the industry
Read the significant accounting policies at the end of the statements .What can you infer from
them.-discuss what you have understood w.r.t 2-3 of them
Has the Profit After Tax amount changed over the last three years. Could you identify some major
reasons for this.
Has the Balance sheet totals increased over these years. Can you identify why this has increased.

SUGGESTIONS FOR SUBMISSION

Use excel for submission

First sheet of excel should mention your coordinates/details
Screen shots of the 3 financial statements should be pasted on one sheet for evaluators reference
Answer the questions by showing comparisons between different companies( one column for one
company) . This will bring in more understanding .
The expectation here is not perfect answers but introducing you to various aspects of accounting
and its eventual use in the decision making process by a manager. So do not be intimidated with
the information.
If you are referencing the answers..be sure to mention/give credit to the source