ANALYSIS OF THE ANNUAL REPORT OF A COMPANY

Learning Outcomes:
1. Know the purpose of an annual report, the kind of information present in the annual report
Financial and Non-Financial and the various users of the annual report
2. Different purposes and perspectives from which the users use the annual report.
3. Analyze whether the annual report is giving enough information to meet the purposes of the
users
4. Analyze the company in a holistic way which can result in an analyst report
Project Deliverables
a. Categorization of the contents as Financial and Non-Financial
b. Detailed Analysis of Non-Financial Information
i. Companys business
ii. Major suppliers, customers
iii. Number of Employees
iv. Annual general meeting: What are the items to be discussed?
v. Management and BOD
vi. Is the company meeting its promises? Compare with previous year annual
report
vii. Risk factors/legal proceedings
c. Financial Statements:
i. Who is responsible for preparing and presenting the financial statements?
Where is this information available?
ii. Listing of the companys assets, liabilities and equity items
iii. Auditors: Who are the auditiors of the company? Who appoints the auditors
iv. Relate the chairmans statement and the directors report to the financial
statement numbers.
v. Commenting on the dividend policy
d. Financial Analysis:
i. What are the major items of revenue and expenses?
ii. P&L has more than one type of profit. What do these kinds of profits indicate?
iii. Financial Analysis: Ratios
iv. Share Price Data
e. Analyst report of the company by compiling the above along with the industry and
competitor data

Project Evaluation
Learning Outcomes
1, 2

3, 4, 5

Methodology
Primary Research: Understand the
different ways in which annual report of
a company can be procured: company
office/stock
exchange/website/Shareholder
Secondary Research: Through scanning of
annual report to understand the broad
contents of the annual report
Study the contents of the annual report
and identify who are the users of the
annual report
Primary Research: Interaction with
different users to understand how they
use the annual report, Interaction with
different users to understand the kind of
information which is not given in the
annual report
Secondary Research: Analyze the
information from perspective of different
users. (Financial analysis- ratio, common
size statements; Non-FinancialSegmentation of revenues, geographies
etc.)
Primary Research: Interaction with expert
to give a detailed view of the industry,
industry players
Secondary Research: A detailed analysis
of both qualitative and quantitative
information of the company from annual
report, website, news. Comparing the
financial analysis of the company chosen
with that of the competitors

Evaluation Criteria
Different ways of procurement
of annual report of a company
from different sources.
Details of the secondary
research undertaken

Activities undertaken and

reflective learning in form of
primary and secondary research
findings

Findings of the primary

research. Analysis presented in
the form of detailed analyst
report

The analysis of the company needs to be presented in the form of

(a) Report analyzing the information contained in the annual report (not more than 15 pages to be
typed in Times New Roman 12, 1.5 line spacing)
(b) Analyst report containing industry information and competitor analysis (not more than 10 pages - to
be typed in Times New Roman 12, 1.5 line spacing)
(c) A PPT presentation covering both (a) and (b). Heavy weightage will be given to group work,
communication skills apart from the criteria mentioned in the table above