ï»¿STUDENT BOARD ROOM
Todayâ€™s Date: 23.09.2014_ Course Name: FADM2
Faculty: Prof. Paul Thambar
1. Identify team leader by circling his/her name.
Anurag Rathindra Bhavya Sharma Tushar Kulkarni
Rahul Desai Suhasini Hiremath
Assignment Being Discussed (Video, Case, Task, Reading, Exerciseâ€¦):
The team jointly read the case and discussed the key points that are mentioned in the form of answers to the questions below.
1) What is the companyâ€™s financing strategy?
The team evaluated and discussed various elements of loss in all the financial statements.
Looking at the companyâ€™s cash flow statement for the year ending 2014, it is quite evident that company is generating substantial cash from its operating activities because of the negative working capital on account of substantial revenue received in advance coupled with ...view middle of the document...
The reserves of the company are decreased as seen from the horizontal analysis from the balance sheet reflecting the loss on the retained earnings for the current year.
Also, as calculated the Return on Equity (ROE) is negative (-2922 / 2866 = -1.0195) for current year as compared to ROE for previous year (404/5840 = 0.0692).
For the above SBR discussion
Each of the five team members actively participated in the analysis of financial statements.
I, Anurag, did the analysis of cash flow statement and provided inputs on cash flow activities relevant to questions asked.
Suhasini analysed the balance sheet and chalked out some points for the losses incurred by the company and studied current v/s non-current liabilities and assets and performed horizontal analysis to Study Companyâ€™s financial position.
Bhavya studied the notes provided with the financial statements and could suggest that company did not pay any dividend except for $1 million to non-controlling interest shareholders.
Tushar calculated and horizontally as well as vertically compared Return on Equity ratio, reserves, retained earnings and share capital to decide whether it is good to invest in the company. He also contributed in analysing the responses for all other questions and writing the answers.
Rahul holistically analysed the overall responses and suggested critical corrections in the answers and could help the team clarify points of confusion. He also moderated all the responses for the SBR.