SEQUENCE FOR ACCOUNTANCY PROJECT:
1. FRONT PAGE
2. PROJECT FILE DETAILS
3. PREFACE
4. ACKNOWLEDGEMENT
5. CERTIFICATE
6. DECLARATION
7. CONTENT/INDEX
8. INTRODUCTION-
A. Meaning of analysis of financial statement(Copy from Book)
B. Significance of Analysis of Financial Statement(Copy from book)
C. Why I choose this Company for my study ( Use Chat GPT)
9. About the Company – (You will get from Annual Report 23-24 of any company)
Must attach pictures to look attractive of the concerned company.
10. Profile of the Company – Key points to Note
a. Name of the Company
b. Type of Company
c. Registered O_ice
d. Nature of Business
e. Products/Services dealing with
f. Objectives of Company (Google it)
g. Motto of Company (Google)
h. Rank in Industry (Google)
i. Financial Highlights (Google)
11. Consolidate Balance sheet of the Company (You will get in the Annual Report
2023-24- Search in Google of your Company Name along with Annual Report
e.g. Bharat Petroleum Annual Report 2023-24 pdf)- MUST BE HANDWRITTEN.
12. Consolidate Profit and Loss (Same as above)- MUST BE HANDWRITTEN.
13. Write Theory about Cash Flow , Types of Activities and Cash Flow Statement
Format (COPY FROM BOOK)
14. ADD PAGE - (Writing the below)
Required for Specific Projects (Main Heading)
Analysis of Financial Statements through
1. Cash Flow Statement: To Asses the inflow and outflow of cash and Cash
equivalents
2. Ratio Analysis: To assess the Liquidity position of the Business.
SPECIFIC PROJECT 1
15. Solution to problem 1-
A. Cashflow Statement :
Consolidated Cash Flow Statement ( to be copied from Annual Report 2023-
24 of the company you have choosen)
16. Comments on Company’s Performance –
a. Operating Activities – write the inflow and outflow and reason
b. Investing Activities- same as above
c. Financing Activities – same as above
17. PRINTOUTS OF NOTES TO ACCOUNT (Given in Annual Report 2023-24 after the
Consolidated Cash Flow Statement)
18. Interpretation :
Comment on Financial performance of the company by taking cash flow of 2023-
24 only ( google it )
19. Conclusion
Specific Project II
20. Calculation of Ratios
Write the ratios of both the year showing comparison of the following ;
1. LIQUIDITY RATIO – CURRENT RATIO AND QUICK ASSET RATIO
2. SOLVENCY RATIO – PROPRIETORS RATIO
3. ACTIVITY RATIO - INVENTORY TURNOVER RATIO
4. PROFITABILITY RATIO - GROSS PROFIT RATIO, NET PROFIT RATIO &
OPERATING PROFIT RATIO.
NOTE: AFTER CALCULATION OF EACH RATIO OF 2022-23 AND 2023-24
COMPARE THEIR VALUES IT MAY BE INCREASED AND DECREASED,
SHOW THE FORMULA CLEARLY
Here’s a sample comparative statement for the current ratio of a
company:
The current ratio of the company measures its ability to meet short-
term obligations with its current assets. In the analysis:
• For Year 1, the current ratio stood at 1.8, indicating a strong
liquidity position, as the company had $1.80 of current assets for
every $1 of current liabilities.
• For Year 2, the ratio declined slightly to 1.5, reflecting a slight
reduction in liquidity but still maintaining a healthy position above
the ideal benchmark of 1.
Comparison: While both years demonstrate sufficient liquidity to
cover short-term obligations, the decline in the current ratio suggests
either an increase in current liabilities or a decrease in current assets.
This requires further investigation to determine if it is due to
increased operational efficiency or potential cash flow challenges.
Industry Benchmark: Compared to the industry average of 1.4, the
company remains above the benchmark, indicating better liquidity
management relative to its peers.
This comparative approach emphasizes both year-to-year changes
and industry context.
YOU CAN USE CHATGPT BY WRITING – WRITE A COMPARING
STATEMENT OF RATIO ANALYSIS – CURRENT RATIO FOR 2023 : 1:1 AND
2024 : 2:3 OF ……….. COMPANY.
21. BIBLIOGRAPHY