Form group of 3 to 4 members. Having understood the financial statements, together with notes thereto, of Nestle India Ltd., and after learning the tools and techniques of financial analysis in the next part of the book, you need to attempt a financial analysis of the company as per the ‘Model for Strategic and Integrated Managerial Financial Analysis of Annual Report’ provided in chapter 21 of that part. In case you choose a company of your choice for the purpose you are free to do that. In that case:
1. Develop a general understanding of the business of the company.
2. Identify the parental lineage/group affiliation of the company.
3. Develop some understanding of the industry it operates in, from the information available in the report or databases like Capitaline Plus or CMIE Prowess.
4. Familiarize yourself with the details about its directors, auditors, bankers, lending institutions, plant locations, corporate office, and so on.
5. Make a brief list of the above details.
6. Develop an understanding of the annual report of the company on the lines illustrated in this chapter in respect of Nestle. Find out if there are any exceptionally high items of expenses, capitalization of revenue expenditure or some extraordinary income, etc. If yes, make a brief summary thereof. This will be of use while carrying out the financial analysis.
Prepare a project folder and place the list and summaries referred to above there. A copy of the annual report will be the last document in this folder.
Seek the guidance of your professor wherever needed.
This project will be further taken up in chapter 21.