PROGRESS REPORT 2

Financial Analysis and Credit

Evaluation of RE/MAX India
(Working Capital)

ADARSH ARORA
CHANDIGARH UNIVERSITY, GHARUAN, MOHALI
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INDEX

Sr. No. Topic Page No.

1. Introduction 2

2. Introduction to Company 3

3. Brief Introduction to Project / Induction 4

4. Objectives of the Study/ Research Methodology 5

5. Responsibilities 6

6. Day Wise Progress / Challenges 7

7 Learning Outcome / Achievements. 8

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INTRODUCTION
Date of Joining : 1st June 2019

Name of the Company: RE/MAX INDIA

Reporting Authority : Mr. Sachin Shukla (CFO of the company)

Location : 604, Pinnacle Tower, Surajkund Road, Faridabad Haryana, 121009

Project Assigned : Financial Analysis and Credit Evaluation of RE/MAX India

According to the title assigned to me “Financial Analysis and Credit Evaluation of RE/MAX

India” my work is to evaluate the working capital requirement of the company. The department

in which I am engaged is Finance Department.

The actual work I have to do are , how working capital mechanism works , how currently

company manage its working capital ,understanding companies requirement for working capital,

its financial position in the market, etc.

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INTRODUCTION TO COMPANY
RE/MAX is a global real estate network of more than 7400 franchisee-owned and operated

offices with over 123,000 Sales Associates.

India is the 73rd nation in the global network of RE/MAX International. In the year 2009, Samir

Chopra initiated RE/MAX as a revolution in the real estate industry of India. Since then,

RE/MAX India is rapidly expanding its growth opportunities and capturing the future to become

an undisputed market leader in real estate transactions.

RE/MAX was founded in January 1973 by Dave Liniger and Gail Main. The company was

established with a maximum commission concept, meaning agents would keep nearly all of their

commissions and pay their broker a share of the office expenses, rather than a share of the

commission. In 1975, Dennis Curtin purchased the first RE/MAX franchise outside of Colorado,

in Kansas City, Missouri. The company had 100 franchises in two years. RE/MAX held its

first convention in Las Vegas in 1976. It became an annual event.

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BRIEF INTRODUCTION TO PROJECT

FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of the firm
and establishing relationship between the items of the balance sheet and profit & loss account.

Financial ratio analysis is the calculation and comparison of ratios, which are derived from the
information in a company’s financial statements. The level and historical trends of these ratios
can be used to make inferences about a company’s financial condition, its operations and
attractiveness as an investment.

The information in the statements is used by Trade creditors, to identify the firm’s ability to
meet their claims i.e.

Liquidity position of the company.

Investors, to know about the present and future profitability of the company and its

financial structure.

Management, in every aspect of the financial analysis.

It is the responsibility of the management to maintain sound financial condition in the

company.

RATIO ANALYSIS
The term “Ratio” refers to the numerical and quantitative relationship between two items or

variables. This relationship can be exposed as:-

 Percentages
 Fractions
 Proportion of numbers
Ratio analysis is defined as the systematic use of the ratio to interpret the financial statements. So

that the strengths and weaknesses of a firm, as well as its historical performance and current

financial condition can be determined. Ratio reflects a quantitative relationship helps to form a

quantitative judgment.
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OBJECTIVES OF THE STUDY

Some other objectives of the study are as follows:

To evaluate the performance of the company by using ratios as a yardstick to measure the

efficiency of the company.

To understand the liquidity, profitability and efficiency positions of the company during

the study period.

To evaluate and analyze various facts of the financial performance of the company.

To make comparisons between the ratios during different periods.

To ascertain the amount of working capital (both gross and net)

To evaluate the working capital performance of the company through the use of various

financial ratios.

To assess the impact of working capital in profitability.

To assess the working capital management practices of the company.

RESEARCH METHODOLOGY
The information is collected through secondary sources during the project. That information was
utilized for calculating performance evaluation and based on that, interpretations were made.

Locale of the Study: This study was conducted in Faridabadd.

Sources of secondary data:

1. Most of the calculations are made on the financial statements provided by the company.

2. Referring standard texts and referred books collected some of the information regarding
theoretical aspects.

3. Method- to assess the performance of the company method of observation of the work in
finance department in followed.
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RESPONSIBILITIES
Every day I have been assigned with some work which helps me to get some practical

knowledge and also helps me to enhance my skills and get familiar with the way of doing work

according to the company.

Responsibilities that I have been assigned are as follows as:

To read and understand the financial processes and procedures of the company and work

accordingly.

To work under the supervision of senior finance personnel

To work on the software installed for maintaining a record of the financial transactions.

To review the accounting ledgers prepared by the accountants and ensure that these are

correct.

Filing, Data Entry, and Recording and Maintaining of financial records.

Preparing financial reports, such as balance sheets, Income Statement, Cash Flow

Statement, and other documents in MS Excel.

Working with tally software.

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DAY WISE PROGRESS

Days Particulars

Billing of the invoice and data entry in tally.

Day 21 to 25
Checking whether the entered data is correct or not.

Day 26 To Day 30 Analyzing the financial position through balance sheets.

And Comparing Balance Sheets.

Passing Journal Entries, Data Entry, Billing.

Day 31 to Day 45 Maintaining Financial books (Hypothetical Figures)

Working on fair progress report and making a to do list for the

next upcoming intern days

Calculating Ratios to find the financial position and strength of

the company

How to write an formal e-mail and what are do and don’ts

Types of cheque writing with their meaning.

CHALLENGES
How to manage Working Capitals.

Competition with other Intern.

New to Corporate Environment.

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Difficult to get time of mentor because of their busy schedule.

Work load

Supervisor forgot that I was new in the field

My work done was sometimes of no use for the company

A professional lifestyle

LEARNING
Enhance Knowledge of MS Excel and MS Word.

Working on Tally.

Invoice Raising.

How to manage work load.

Various accounting terms

Skills to interact with senior staff

Gain insight into corporate budgeting process used by the company.

Data Entry in Excel and Tally.

ACHIEVEMENTS/ APPRECIATION
Appreciated by CFO for below assigned work:

Completed all the entries assigned to me in time with accuracy.

Completed all the tasks assigned.

Completed day objectives as assigned like passing journal entries, reconciliation,

updating invoice in time.

Earned Outstanding Certificate from the CFO of the company.