OUTLINE OF SPECIFIC PROJECT- ONE [RATIO ANALYSIS]

[Entire project to be handwritten]

[All the contents to be written only in blue gel pen]

1] Divider page
– Specific Project – One [Ratio Analysis] (with company logo, any pictures etc.)

[Note: select the company based on the simplicity of the financial statements,
also see for detailed CFS to be used for the next project.]

Objective – To study and interpret the financial performance of ____ [name of

the company], using accounting ratios as a tool of financial analysis.

2] Introduction

- History of the company in detail –founder, background etc.

- Milestones
- Board of Directors – names and pictures etc.

3] Data for analysis

- Company’s Balance sheet – current year and previous year

- Company’s Statement of Profit and Loss – current year and previous year

4] Calculation of various ratios

- Individual ratios categorised under the types of ratios-15/16 ratios should be

calculated. For each ratio – formula, calculation of ratio for current year and
previous year, related significance comparing the standard ratio [wherever
applicable] or comparing with previous year [where standard ratio is not
available].

1
5] Ratio Analysis

- Analyse and comment on each financial aspect of the company

- Liquidity Position
- Solvency Position
- Efficiency Position
- Profitability Position
- Each aspect should be discussed in detail
- Overall position should be discussed taking points from the individual ratios that
were calculated previously. This is not the same as significance.

6] Graphical Representation

- Bar Graph for current year and previous year for each ratio- one graph for each
type can be done.

7] Conclusion/ Suggestions

- Discuss about liquidity, solvency, efficiency and profitability of the company in

brief
- Suggestions as to how to improvise the ratios in the future so as to develop the
company
- Comment on the overall financial performance of the company.

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